Showing posts with label Temporary Taking Compensation. Show all posts
Showing posts with label Temporary Taking Compensation. Show all posts

Sunday, June 28, 2009

Oral argument in Condemnation Blight case

Oral argument was had Monday, June 22nd, in Key West, before Florida's Third District Court of Appeal, in the Condemnation Blight case of Florida DEP v. West, et al., that resulted in a $6.9 million judgment for two parcels that the state "quick-took" for $630,000 in 2004. (Details on MattsonLaw.com) The panel included Chief Judge Gersten and District Judges Suarez and Rothenberg. Judges Gersten and Suarez were on the panels in Collins v. Monroe County and Shands v City of Marathon one year ago (June 30, 2008). The Landowners prevailed in both Collins and Shands, and Judge Suarez signed both opinions.

It was obvious that Judge Rothenberg had read the briefs. She came out of the box at the State's attorney (for whom this was the first appeal he had ever briefed or argued) when he presented his theory that "this is not 'condemnation blight,' but was a regulatory taking in 1982." Judge Rothenberg punctured the State's balloon when she referred to the holding in Tahoe-Sierra -- that moratoria are "temporary takings," and that temporary takings do not accrue until they end. So much for the State's statute of limitations theory.

The West case is a superb example of condemnation blight. We thank Gideon Kanner for his life's work in this area. Most Florida Keys condemnation cases have been "lightly defended" by mainland Florida eminent domain lawyers (with one major exception, Doug Halsey), who had no clue what happened from 1982 forward. However, as Senior District Judge Alan Schwartz said in one of our oral arguments several years ago, "the courts don't exist to protect people from the use of their pens." We realize most owners of condemned Florida Keys properties could have used the condemnation blight strategy we used in this case, but their attorneys were unfamiliar with the facts on the ground.

Chief Judge Gersten asked both sides if they considered the State's theory of the case "fair." My response is obvious. The State's response was "I will not say this is fair, but we are governed by laws."

One of those laws is the Fifth Amendment to the United States Constitution, and that "law" requires the government to act in a fair and equitable manner when it condemns property (or does anything else). Keep checking back to learn how this comes out. The Third District Court of Appeal releases its decisions on Wednesdays, at about 10:30 AM.

Tuesday, October 9, 2007

Rent-to-Buy

It's one thing for a law professor to suggest the "rent-to-buy" compensation formula for regulatory takings; it gets a lot better when a Judge of the U.S. Court of Federal Claims ("CFC") adopts the formula in an Opinion.

CFC Judge Victor Wolski entered an Opinion and Order on August 10, 2007, in Gary Bailey v. United States, published at 2007 U.S. Claims LEXIS 261, in which he validated the "rent-to-buy" compensation formula proposed by Assoc. Prof. (now Distinguished Professor) Gregory Stein (Univ. Tenn. College of Law) in his 1995 law review article, "Pinpointing the Beginning and Ending of a Temporary Regulatory Taking," 70 Wash. L. Rev. 953 (Oct. 1995).

Judge Wolski's Opinion puts to rest the government's contentions, in Collins and Galleon Bay, that compensation for a regulatory taking (in Florida) is the Fair Market Value on the date the regulation "took" the property, plus interest until payment is made.

We have consistently argued that, under Florida law, "regulatory taken" property is valued "as of the date of trial, or when title transfers, whichever comes first," unless the government has "ousted" the landowner by fencing the property or building a prison, canal, or railroad track on it.

What the "rent-to-buy" compensation formula means is easily understood. After a regulation has been determined, by a court, to have "taken" the property, the government is liable to the owner for "rent," based on market rates in the geographic area, from the date of the taking until the date the government acquires the full, fee-simple, interest in the property. That can occur either at the time of a condemnation trial, or when a court "order of taking" issues after the government deposits a check for the property's "estimated value" in the Court registry.

To complete the transaction, the government then must pay the owner the Fair Market Value of the property as of the date of the condemnation trial, or as of the date of an "order of taking," if the government has already made a "good-faith deposit" of the Fair Market Value.

That is how Florida Eminent Domain law works; the State and County are having a cow over what they decry to be "two takings" when there should only be one. That is why this Blog is entitled Grand Theft: Property.

Judge Wolski's 53-page Opinion and Order can be downloaded from the CFC's website, at http://www.uscfc.uscourts.gov/Opinions/Wolski/07/WOLSKI.BAILEY081007.pdf