MacDonald, Sommer & Frates v. Yolo County, 477 U.S. 340 (1986)
MacDonald, Sommer & Frates v. Yolo County, 477 U.S. 340 (1986)
MacDonald, Sommer & Frates v. Yolo County, 477 U.S. 340 (1986)
340
106 S.Ct. 2561
91 L.Ed.2d 285
development. See id., at 74. Even ignoring this obstacle, "[t]he map presented
ma[de] no provision for any other means of access to the subdivision," and the
Board calculated that relying on an extension of Cowell Boulevard alone would
"constitut[e] a real and substantial danger to the public health in the event of
fire, earthquake, flood, or other natural disaster." Id., at 77.
4
Second, the Board found that appellant's "Tentative Map as presented [did] not
provide for sewer service by any governmental entity":
"The only means for provision of sewer services by the El Macero interceptor
sewer require that the proposed subdivision anne[x] to the existing Community
Services Area. Said annexation is subject to Local Agency Formation
Commission jurisdiction. The Board finds that no proceedings currently are
pending before LAFCO for the annexation of the proposed subdivision." Id., at
75.
Third, the Board rejected the development plan because "[t]he level of [police]
protection capable of being afforded to the proposed site by the [Yolo County]
Sheriff's Department is not intense enough to meet the needs of the proposed
subdivision." Id., at 76. Fourth, the Board found inadequate the provision for
water service for the reason that there was "no provision made in the proposed
subdivision for the provision of water or maintenance of a water system for the
subdivision by any governmental entity." Ibid.
After this rebuff, appellant filed the present action and, on the same day, a
petition for a writ of mandate. The mandate action, which is still pending, seeks
to set aside the Board's decision and to direct the Board to reconsider
appellant's subdivision proposal. See id., at 32-33 (amended petition for writ of
mandate). This action, in contrast, seeks declaratory and monetary relief. In it,
appellant accuses appellees County of Yolo and city of Davis of "restricting the
Property to an open-space agricultural use by denying all permit applications,
subdivision maps, and other requests to implement any other use," id., at 46,
and thereby of appropriating the "entire economic use" of appellant's property
"for the sole purpose of [providing] . . . a public, open-space buffer," id., at 51.
In particular, the fourth amended complaint challenges the Board's decision
with respect to the adequacy of public access, sanitation services, water
supplies, and fire and police protection.2 Because appellees denied these
services, according to the complaint, "none of the beneficial uses" allowed even
for agricultural land would be suitable for appellant's property. Id., at 52. The
complaint alleged, in capital letters and "without limitation by the foregoing
enumeration," that "any application for a zone change, variance or other relief
would be futile." Id., at 58. The complaint also alleged that appellant had
"exhausted all of its administrative remedies" and that its seven causes of action
were "ripe" for adjudication. Id., at 58, 59.
8
The California Court of Appeal affirmed. It "accept[ed] as true all the properly
pled factual allegations of the complaint," id., at 126, and did "not consider
whether the complaint was barred by the failure to exhaust administrative
remedies or by res judicata," id., at 125-126. But it "f[ou]nd the decision in
Agins to be controlling herein," id., at 130:
10
"In that case the [California] Supreme Court specifically and clearly
established, for policy reasons, a rule of law which precludes a landowner from
recovering in inverse condemnation based upon land use regulation. We
emphasize that the Court did not hold that regulation cannot amount to a taking
without compensation, it simply held that in such event the remedy is not
inverse condemnation. The remedy instead is an action to have the regulation
set aside as unconstitutional. Plaintiff has filed a mandate action in the trial
court which is currently pending. That is its proper remedy. The claim for
inverse condemnation cannot be maintained." Id., at 130-131 (citation and
footnote omitted).
11
12
"In any event, even if an inverse condemnation action were available in a land
use regulation situation, we would be constrained to hold that plaintiff has
failed to state a cause of action. Pared to their essence, the allegations are that
plaintiff purchased property for residential development, the property is zoned
for residential development, plaintiff submitted an application for approval of
development of the property into 159 residential units, and, in part at the urging
of the City, the County denied approval of the application. In these allegations
plaintiff is not unlike the plaintiffs in Agins . . . [a case in which] both the
California Supreme Court and the United States Supreme Court held that the
plaintiffs had failed to allege facts which would establish an unconstitutional
taking of private property.
13
"The plaintiff's claim here must fail for the same reasons the claims in Agins
failed. Here plaintiff applied for approval of a particular and relatively intensive
residential development and the application was denied. The denial of that
particular plan cannot be equated with a refusal to permit any development, and
plaintiff concedes that the property is zoned for residential purposes in the
County general plan and zoning ordinance. Land use planning is not an all-ornothing proposition. A governmental entity is not required to permit a
landowner to develop property to [the] full extent he might desire or be charged
with an unconstitutional taking of the property. Here, as in Agins, the refusal of
the defendants to permit the intensive development desired by the landowner
does not preclude less intensive, but still valuable development. Accordingly,
the complaint fails to state a cause of action." Id., at 132-133 (citation
omitted).5
14
The California Supreme Court denied appellant's petition for hearing, and
appellant perfected an appeal to this Court. Because of the importance of the
question whether a monetary remedy in inverse condemnation is
constitutionally required in appropriate cases involving regulatory takings, we
noted probable jurisdiction. 474 U.S. 917, 106 S.Ct. 244, 88 L.Ed.2d 253
(1985). On further consideration of our jurisdiction to hear this appeal, aided by
briefing and oral argument, we find ourselves unable to address the merits of
this question.
II
15
The regulatory takings claim advanced by appellant has two components. First,
appellant must establish that the regulation has in substance "taken" his
property6 that is, that the regulation "goes too far." Pennsylvania Coal Co. v.
Mahon, 260 U.S. 393, 415, 43 S.Ct. 158, 160, 67 L.Ed. 322 (1922). See Kaiser
Aetna v. United States, 444 U.S. 164, 178, 100 S.Ct. 383, 392, 62 L.Ed.2d 332
(1979). Second, appellant must demonstrate that any proffered compensation is
not "just."
16
17
"[T]he difficult problem [is] how to define "too far," that is, how to distinguish
the point at which regulation becomes so onerous that it has the same effect as
an appropriation of the property through eminent domain or physical
possession. . . . [R]esolution of that question depends, in significant part, upon
an analysis of the effect the Commission's application of the zoning ordinance
and subdivision regulations had on the value of respondent's property and
investment-backed profit expectation. That effect cannot be measured until a
final decision is made as to how the regulations will be applied to respondent's
property." Id., at 199-200, 105 S.Ct., at 3123 (footnote omitted).
18
19
For similar reasons, a court cannot determine whether a municipality has failed
Our cases uniformly reflect an insistence on knowing the nature and extent of
permitted development before adjudicating the constitutionality of the
regulations that purport to limit it. Thus, in Agins v. Tiburon, 447 U.S. 255, 100
S.Ct. 2138, 65 L.Ed.2d 106 (1980), we held that zoning ordinances which
authorized the development of between one and five single-family residences
on appellants' 5-acre tract did not effect a taking of their property on their face,
and, because appellants had not made application for any improvements to their
property, the constitutionality of any particular application of the ordinances
was not properly before us. See id., at 260, 100 S.Ct., at 2141. Similarly, in San
Diego Gas & Electric Co. v. San Diego, 450 U.S. 621, 101 S.Ct. 1287, 67
L.Ed.2d 551 (1981), we dismissed the appeal because it did not appear that the
city's rezoning and adoption of an open space plan had deprived the utility of
all beneficial use of its property. See id., at 631-632, and n. 12, 101 S.Ct., at
1293-1294, and n. 12. Because the California Court of Appeal had "not decided
whether any taking in fact ha[d] occurred, . . . further proceedings [were]
necessary to resolve the federal question whether there has been a taking at all."
Id., at 633, 101 S.Ct., at 1294. As a consequence, the judgment was not final
for purposes of our jurisdiction under 28 U.S.C. 1257. Ibid. Most recently, in
Williamson Planning Comm'n v. Hamilton Bank, we held that the developer's
failure either to seek variances that would have allowed it to develop the
property in accordance with its proposed plat, or to avail itself of an available
and facially adequate state procedure by which it might obtain "just
compensation," meant that its regulatory taking claim was premature.
21
22
Affirmed.
23
Justice WHITE, with whom THE CHIEF JUSTICE joins and with whom
Justice POWELL and Justice REHNQUIST join as to Parts I, II, and III,
dissenting.
24
The Court acknowledges that we noted probable jurisdiction in this case "
[b]ecause of the importance of the question whether a monetary remedy in
inverse condemnation is constitutionally required in appropriate cases involving
regulatory takings," ante, at 348, but avoids this issue by holding that the
antecedent questionwhether appellant adequately stated a takings claim
should be answered in the negative. I disagree. The factual allegations that we
must consider, when the opinion below is correctly read, do state a takings
claim and therefore present the remedial question that we have thrice before
sought to resolve. See Williamson County Regional Planning Comm'n v.
Hamilton Bank, 473 U.S. 172, 105 S.Ct. 3108, 87 L.Ed.2d 126 (1985); San
Diego Gas & Electric Co. v. San Diego, 450 U.S. 621, 101 S.Ct. 1287, 67
L.Ed.2d 551 (1981); Agins v. Tiburon, 447 U.S. 255, 100 S.Ct. 2138, 65
L.Ed.2d 106 (1980).
25
* The Court recognizes that "the complaint alleged that appellant was deprived
25
* The Court recognizes that "the complaint alleged that appellant was deprived
of all beneficial use of its property," ante, at 352, n. 8, but concludes:
26
"The California Court of Appeal, whose opinion on matters of local law and
local pleading we must respect, cf. Agins v. Tiburon, 447 U.S. 255, 259-260, n.
5, 100 S.Ct. 2138, 2140-2141, n. 5, 65 L.Ed.2d 106 (1980), apparently rejected
what the Superior Court labeled a 'conclusionary' allegation of futility, and
explained that appellant could seek an administrative application of the Yolo
County General Plan and Zoning Ordinances to its property which, for aught
that appears, would allow development to proceed." Ibid.
27
The Court thus ignores the allegations in the complaint that the effect of the
county's denial of appellant's subdivision application in conjunction with the
reasons behind that denial and other actions taken by the appellees has been to
deprive the appellant of any use of its property "which is not (a) economically
infeasible, (b) prohibited by law, or (c) prevented by actions taken by [the
appellees]." Fourth Amended Complaint, App. 46. The Court also disregards
appellant's allegation that the actions of the appellees demonstrate "That any
application for a zone change, variance or other relief would be futile." Id., at
58. Instead, the Court focuses on the denial of the particular subdivision
application alone.
28
In my view, the Court does not fairly read the record and the opinion below.
Appellant's initial complaint filed in Superior Court alleged that although the
property was zoned for residential use by the county it was designated an
"Agricultural Preserve or Reserve" by the city. The complaint further alleged
that even though the property lay in the county outside of the city's boundaries,
the county implemented city policy relegating the land to agricultural uses. See
Complaint of Oct. 13, 1977, pp. 9-12. Finally, the complaint asserted that the
property was agriculturally impaired and could not economically be used for
agricultural purposes. See id., at 5, 16.
29
30
In the Fourth Amended Complaint, the complaint that formed the basis for the
judgment below, appellant responded to this earlier ruling by specifically
alleging that the property was not suitable for the other uses permitted in an
agricultural zone and by asserting facts in support of this allegation. See App.
52-58. The Superior Court, however, indicated that it found these allegations
"conclusionary," although it did not rely on this determination in sustaining the
demurrer to the complaint, relying instead on the California Supreme Court's
general ruling in Agins v. City of Tiburon, 24 Cal.3d 266, 272-277, 157
Cal.Rptr. 372, 375-378, 598 P.2d 25, 28-31 (1979), aff'd on other grounds, 447
U.S. 255, 100 S.Ct. 2138, 65 L.Ed.2d 106 (1980), that no inverse condemnation
action may be brought as a result of a land use regulation.1 The crucial fact here
is that the Superior Court denominated "conclusionary" only those allegations
in the complaint that rejected the possibility of feasible nonagricultural uses of
the property that would be consistent with agricultural zoning. It did not
categorize as "conclusionary" appellant's allegations that all economically
beneficial residential uses were foreclosed by the appellees' actions.
31
32
Having recited all of these allegations without indicating that it was rejecting
any of them, the Court of Appeal first held that no cause of action was stated in
inverse condemnation. This holding, it noted, was compelled by the California
Supreme Court's ruling in Agins that there is no such remedy for takings alleged
to result from land use regulation. Id., at 130-132. See Agins, 24 Cal.3d, at 272277, 157 Cal.Rptr., at 376-378, 598 P.2d, at 28-31.
33
In the alternative, however, the Court of Appeal found that even if such a cause
of action were available, appellant had not stated a takings claim. The court
concluded that "[p]ared to their essence, the allegations are that [appellant]
purchased property for residential development, the property is zoned for
residential development, [appellant] submitted an application for approval of
development of the property into 159 residential units, and, in part at the urging
of the City, the County denied approval of the application." App. 132. The
court then observed that this situation was "not unlike" that in Agins, in which a
zoning ordinance that restricted a landowner of five acres to building a
maximum of five residences on his property was found not to constitute a
taking since on its face the ordinance still allowed that level of development,
which was a reasonable use of the property. See Agins, 447 U.S., at 262-263,
100 S.Ct., at 2142-2143; Agins, 24 Cal.3d, at 277, 157 Cal.Rptr., at 378, 598
P.2d, at 31. Citing Agins, the Court of Appeal then determined that appellant
had not stated a takings cause of action because appellees' refusal to allow the
intensive development requested by appellant "does not preclude less intensive,
but still valuable development." App. 133.
34
II
35
the actual regulatory decision that had been made by the governmental
decisionmaker; we declined to speculate as to further restrictions that might be
imposed. In Hodel v. Virginia Surface Mining & Reclamation Assn., Inc., 452
U.S. 264, 293-297, 101 S.Ct. 2352, 2369-2371, 69 L.Ed.2d 1 (1981), we
refused to consider a takings claim based on general regulatory provisions that
had not yet been applied to specific properties and that were susceptible of
administrative exemption. Most recently, in Williamson County, Regional
Planning Comm'n, the Court determined that the denial of a particular use for a
property did not constitute a final decision where variance procedures were
available that "[left] open the possibility that [the landowner] may develop the
subdivision according to its plat after obtaining the variances." 473 U.S., at
193-194, 105 S.Ct., at 3120.
36
37
Moreover, I see no reason for importing such a requirement into the "final
decision" analysis. A decisionmaker's definitive position may sometimes be
determined by factors other than its actual decision on the issue in question. For
example, if a landowner applies to develop its land in a relatively intensive
manner that is consistent with the applicable zoning requirements and if the
governmental body denies that application, explaining that all development will
be barred under its interpretation of the zoning ordinance, I would find that a
final decision barring all development has been madeeven though the
landowner did not apply for a less intensive development. Although a
landowner must pursue reasonably available avenues that might allow relief, it
need not, I believe, take patently fruitless measures.
38
The Court of Appeal's reliance on Agins in this case was therefore misplaced.
Appellant alleged not simply that its application had been denied but that the
overall effect of (1) that denial, (2) the reasons given for the denial, and (3)
other actions taken by appellees to prevent appellant from ever being able to
meet county development requirements was that appellant's property had been
taken. When the Court of Appeal purported to reduce appellant's claim to its
Assuming that appellant adequately alleged a final decision, the next question
is whether a takings cause of action was stated by the allegations in the
complaint. Discerning the answer to this question involves two separate
inquiries: Whether a land use regulation restricting the use of property may
ever amount to a taking and, if the answer to this first inquiry is affirmative,
whether the allegations here are sufficient to state a takings claim.
40
As to the first question, our cases have long indicated that police-power
regulations may rise to the level of a taking if the restrictions they impose are
sufficiently severe. See, e.g., Agins, 447 U.S., at 260, 100 S.Ct., at 2141;
PruneYard Shopping Center v. Robins, 447 U.S. 74, 83, 100 S.Ct. 2035, 2041,
64 L.Ed.2d 741 (1980); Kaiser Aetna v. United States, 444 U.S. 164, 174-175,
100 S.Ct. 383, 389-390, 62 L.Ed.2d 332 (1979); Andrus v. Allard, 444 U.S. 51,
65-66, 100 S.Ct. 318, 326-327, 62 L.Ed.2d 210 (1979); Penn Central, supra,
438 U.S., at 130-131, 138, n. 36, 98 S.Ct., at 2662, 2663-2666, n. 36; United
States v. Central Eureka Mining Co., 357 U.S. 155, 168, 78 S.Ct. 1097, 1104, 2
L.Ed.2d 1228 (1958); Pennsylvania Coal Co. v. Mahon, 260 U.S. 393, 415-416,
43 S.Ct. 158, 160, 67 L.Ed. 322 (1922). Nevertheless, the California Supreme
Court in Agins concluded:
41
42
43
43
44
I agree that land use restrictions may constitute a taking under the Constitution.
45
This resolution of the general question brings me to the more specific question
whether the allegations in the complaint here were sufficient to state a takings
claim. Here, appellant alleged the existence of a final decision denying it all
economically beneficial use of its property. It also alleged that it had paid
"good and valuable consideration," App. 43, for the property. Factual
allegations of interference with reasonable investment-backed expectations and
denial of all economically feasible use of the property are certainly sufficient
allegations of a regulatory taking to state a cause of action. See, e.g., Penn
Central, 438 U.S., at 136-138, 98 S.Ct., at 2665-2666. Consequently, I would
hold that appellant adequately alleged a taking.
IV
46
The final question presented is whether a State can limit to declaratory and
injunctive relief the remedies available to a person whose property has been
taken by regulation or whether the State must pay compensation for the interim
period between the time that the government first "took" the property and the
time that the "taking" is rescinded by amendment of the regulation.4 On this
question, I am again in substantial agreement with Justice BRENNAN's
discussion in San Diego Gas. See 450 U.S., at 653-660, 101 S.Ct., at 13041308. Even where a property owner is deprived of its property only
temporarily, if that deprivation amounts to a taking the Constitution requires
that just compensation be paid. If the governmental body that has taken the
property decides to rescind the taking by amending the regulation, that does not
reverse the fact that the property owner has been deprived of its property in the
interim. "[I]t is only fair that the public bear the cost of benefits received during
the interim period between application of the regulation and the government
entity's rescission of it." Id., at 656-657, 101 S.Ct., at 1306-1307. Thus, just
compensation must be available for the period between the time of the final
decision taking the property and the time that that decision is rescinded.
47
V
48
In sum, I believe that the Court of Appeal's decision is most properly read as
taking as true all of the allegations in the complaint, including the allegations of
futility, and as rejecting those allegations as insufficient as a matter of
substantive takings law. At the very least, the Court's reading of the opinion
below, however plausible, is not the only sensible reading of that opinion.
Given this arguable ambiguity, I would not, as the Court does, withdraw from
appellant all chance of relief at this stage. That is, if the Court of Appeal in fact
did reach its judgment by the reasoning I have summarized rather than as the
Court hypothesizes, appellant should not be precluded from seeking relief on
the facts currently alleged in the complaint. I would at least vacate the
judgment below and remand for explanation by the Court of Appeal as to the
precise basis for its judgment.
49
50
I agree with Justice WHITE that the Court of Appeal's opinion is best read as
rejecting appellant's allegations as a matter of substantive takings law; that
appellant sufficiently alleged a final decision denying it all beneficial use of its
property; that a land use regulation restricting the use of property may amount
to a taking; and that the allegations here are sufficient to state a takings claim.
Accordingly, I join Parts I, II, and III of his dissenting opinion. As Justice
WHITE recognizes in Part IV of his opinion, the questions surrounding what
compensation, if any, is due a property owner in the context of "interim"
takings are multifaceted and difficult. I would not reach these questions without
first permitting the courts below to address them in light of the fact that
appellant has sufficiently alleged a taking.
The Fifth Amendment provides "nor shall private property be taken for public
use, without just compensation." The Fifth Amendment prohibition applies
against the States through the Fourteenth Amendment. See Chicago, B. & Q.R.
Co. v. Chicago, 166 U.S. 226, 236, 239, 241, 17 S.Ct. 581, 584, 585, 586, 41
L.Ed. 979 (1897). See also Williamson Planning Comm'n v. Hamilton Bank,
473 U.S. 172, 175 n. 1, 105 S.Ct. 3108, 3111, n. 1, 87 L.Ed.2d 126 (1985); San
Diego Gas & Electric Co. v. San Diego, 450 U.S. 621, 623, n. 1, 101 S.Ct.
1287, 1289, n. 1, 67 L.Ed.2d 551 (1981).
"25. In determining that Plaintiff's land could only be used for agricultural
purposes, notwithstanding its general planning and zoning designation for
residential use and its suitability therefor, County determined that (i) the
Property lacked access by means of suitable public streets, a condition resulting
from City's deliberate refusal to permit or approve available access; (ii) the
[P]roperty lacked sanitary sewer service, a condition resulting directly from the
wrongful acts of City, County and District above alleged[;] (iii) the Property
lacked adequate water supply, a finding directly contrary to the fact (in
evidence before County) that there are proven sources of supply on the
Property and in the vicinity thereof which serve the immediately adjacent
residential areas[;] and (iv) that the Property lacked adequate fire and police
services, conditions attributable in part to refusal on part of County and City to
provide such services." App. 51-52.
695 (1985); Read v. City of Lynwood, 173 Cal.App.3d 437, 442, 219 Cal.Rptr.
26, 28 (1985). Thus, one intermediate California appellate court has sustained a
demurrer to a complaint alleging a regulatory taking on jurisdictional grounds,
notwithstanding an "allegation in [appellants'] complaint that they 'have
exhausted their administrative remedies' "; for "while a demurrer admits all
material facts which are properly pleaded, it does not admit conclusions of fact
or law alleged therein. Appellants' conclusionary statement that they exhausted
their administrative remedies therefore cannot avail them." Pan Pacific
Properties, Inc. v. County of Santa Cruz, 81 Cal.App.3d 244, 251, 146 Cal.Rptr.
428, 432 (1978) (citation omitted). Cf. Hecton v. People ex rel. Dept. of
Transportation, 58 Cal.App.3d 653, 657, 130 Cal.Rptr. 230, 232 (1976) (same;
allegations of taking and damage).
4
We understand the Superior Court to have sustained the demurrer both because
the complaint failed properly to plead facts amounting to a taking and because
California law does not provide a monetary remedy for a regulatory taking. The
Superior Court, after explaining these two reasons, concluded simply that "[t]he
complaint fails to state a proper cause of action for inverse condemnation."
App. 116. Although Justice WHITE's dissent treats the first reason as dicta and
the second as the actual basis of decision, see post, at 355-356, since the
Superior Court did not rest its holding on only one of its two stated reasons, it is
appropriate to treat them as alternative bases of decision.
We accept for the purposes of deciding this case that any taking was for a
public purpose, as alleged in the complaint. See id., at 50. See also id., at 51,
60.
Appellant is thus in the same position Mr. and Mrs. Agins would have
occupied if they had requested and been denied the opportunity to build five
Victorian mansions for their single-family residences, or if San Diego Gas &
Electric Co. had asked and been denied the option of building a nuclear
powerplant. Rejection of exceedingly grandiose development plans does not
logically imply that less ambitious plans will receive similarly unfavorable
reviews. In this case, of course, we have statements from both courts below
dispelling any doubt on this point.
The Superior Court also sustained the demurrer on the ground that appellant
had failed to exhaust administrative and judicial remedies; that the county's
denial of appellant's subdivision application was res judicata not subject to
collateral attack in the Superior Court; and that no taking in the form of actual
"invasion or appropriation of a cognizably valuable property right" had been
alleged. App. 111, 116.
Although the California Supreme Court's ruling in Agins rests on the rationale
that excessive land use regulation simply cannot constitute a lawful taking, the
Court of Appeal in this case seemed to proceed on the assumption that such
regulation could constitute a taking but that no inverse condemnation remedy
for such a taking would be available. See App. 131. My discussion here follows
the reasoning given by the California Supreme Court in Agins rather than the
somewhat inexact summary of that reasoning given by the Court of Appeal
below.
4
I assume here that the normal action by the governmental entity following a
determination that a particular regulation constitutes a taking will be to rescind
the regulation. I believe that this is a permissible course of action, limiting
liability for the taking to the interim period. See San Diego Gas & Electric Co.
v. San Diego, 450 U.S. 621, 658, 101 S.Ct. 1287, 1307, 67 L.Ed.2d 551 (1981)
(BRENNAN, J., dissenting). Of course, the governmental entity could actually
condemn the property and pay permanent compensation for it.