Strode v. City of Ashland, No. S-15-956 (Neb. Oct. 28, 2016)
Strode v. City of Ashland, No. S-15-956 (Neb. Oct. 28, 2016)
Strode v. City of Ashland, No. S-15-956 (Neb. Oct. 28, 2016)
www.nebraska.gov/apps-courts-epub/
11/29/2016 02:39 PM CST
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No. S-15-956.
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without any efficient intervening cause, produces the injury, and without
which the injury would not have occurred.
I. INTRODUCTION
Randy Strode and Helen Strode seek review of the district
courts decision dismissing Randys zoning regulation inverse
condemnation claim, granting a motion for summary judgment
on Helens zoning regulation inverse condemnation claim, and
granting a motion for summary judgment on the Strodes takings claim based on the load limit posted on a bridge located
near their property. We affirm.
First, we hold that Randy is barred from bringing his inverse
condemnation claim, because the statute of limitations on his
claim for compensation began to accrue at the time the City of
Ashland (the City) notified Randy that the use of the property
was in violation of the ordinance. Next, we turn to Helens
claim. We similarly dispose of that claim based on the statute
of limitations, because, as a joint owner, she has the same
rights in the property as Randy. Finally, we hold that summary judgment was appropriate on the Strodes bridge takings
claim, because the load limit on the bridge does not amount to
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Ordinance would result in unnecessary and undue hardship. As used in this Ordinance, a variance is authorized
only for height, area, and size of structure or size of yards
and open spaces; establishment or expansion of a use
otherwise prohibited shall not be allowed by variance,
nor shall a variance be granted because of the presence
of non-conformities in the zoning district or uses in an
adjoining district.
....
ARTICLE 4: GENERAL PROVISIONS
....
Section 4.20 Nonconforming Uses.
1. Nonconforming Uses of Land: Where at the effective
date of adoption or amendment of this ordinance, lawful use of land exists that is made no longer permissible
under the terms of this ordinance as enacted or amended,
such use may be continued so long as it remains otherwise lawful, subject to the following provisions:
a. No such conforming use shall be enlarged or
increased, nor extended to occupy a greater area of land
than was occupied at the effective date of adoption or
amendment [of] this ordinance;
b. No such nonconforming use shall be moved in
whole or in part to any other portion of the lot or parcel
occupied by such use at the effective date of adoption or
amendment of this ordinance.
c. If any such nonconforming use of land ceases for
any reason for a period of more than twelve (12) months,
any subsequent use of such land shall conform to the
regulations specified by this ordinance for the district in
which such land is located.
....
ARTICLE 5: ZONING DISTRICTS
....
Section 5.15 PUB Public and Semi-Public Districts
1. Intent. The Public and Semi-Public District designates those areas reserved for public use and recreation.
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2. Permitted Uses
a. Recreational uses including the following: parks,
ball fields, swimming pools, soccer fields, trails, and
associated uses.
b. Other public uses including: cemeteries and
fairgrounds.
3. Permitted Special uses (reserved)
4. Accessory Uses
Since the time of purchase, the Strodes have operated a
business for the manufacture of agricultural fencing and the
storage of salvage on the property. Between November 2002
and June 10, 2003, the City zoning administrator repeatedly
notified Randy that his use of the property was in violation of
the Citys code and regulations and requested Randy to remedy his violations. Initially, Helen contended that she did not
become aware of the zoning violation until Randy mentioned it
to her in June 2002, but later testified that she was unaware of
the violation notices until May or June of 2003.
2. Citys 2003 R equest for Injunction
The City filed for an injunction against Randys nonconforming use of the property on September 5, 2003. Randy
alleged in his amended answer that the zoning regulations
were ineffective and void because they amounted to a taking
of the property without just compensation. In his prayer for
relief, Randy asked only that the Citys complaint be dismissed
at the Citys costs. He did not set forth a counterclaim for
inverse condemnation.
The district court held that Randys use of the property to
store salvage was in violation of the zoning ordinance and
granted the Citys request for an injunction. The district court
also found that the manufacture of agricultural fencing on
Block 16, Lots 7 through 12, was permitted as a continuing,
nonconforming use.
Randy appealed from the award of the injunction. On
appeal, Randy argued that the regulations amounted to a
taking without just compensation. The Nebraska Court of
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6
7
State ex rel. Wagner v. Gilbane Bldg. Co., 276 Neb. 686, 757 N.W.2d 194
(2008).
Id.
Lindner v. Kindig, 285 Neb. 386, 826 N.W.2d 868 (2013).
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an affirmative defense in its answer and argued at oral argument that the statute of limitations barred both of the Strodes
claims. Therefore, the statute of limitations has been raised as
to both Randys and Helens takings claims.
[6,7] The statute of limitations in an inverse condemnation proceeding is 10 years.8 When applying a statute of
limitations, we have held that [a]n action accrues and the
statutory time within which the action must be filed begins to
run when the injured party has the right to institute and maintain a lawsuit, although the party may not know the nature
and extent of the damages.9 An aggrieved party has the right
to institute and maintain a lawsuit upon the violation of a
legal right.10
We discussed the statute of limitations for an inverse
condemnation action in the context of physical takings in
Western Fertilizer v. City of Alliance.11 In that case, BRG,
Inc., purchased property from Western Fertilizer and Cordage
Company, Inc. (Western) in 1976, planning to develop the
land for residential use. BRG authorized the City of Alliance
to improve the property, so in April 1977, the city passed two
ordinances approving the plat of an addition that contained a
dedication of the streets, alleys, and public grounds therein
to the use and benefit of the public. In August, Western
signed a dedication for part of the property. In October, BRG
gave Western a promissory note secured by a mortgage on
the property. Between November 1978 and October 1981,
BRG signed more dedications and the city passed several
8
10
11
Western Fertilizer v. City of Alliance, 244 Neb. 95, 108, 504 N.W.2d 808,
817 (1993) (citing Neb. Rev. Stat. 25-202 (Reissue 1989)).
Steuben v. City of Lincoln, 249 Neb. 270, 272-73, 543 N.W.2d 161, 163
(1996).
Reinke Mfg. Co. v. Hayes, 256 Neb. 442, 452, 590 N.W.2d 380, 389
(1999).
Western Fertilizer v. City of Alliance, supra note 8.
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behind the property.15 Within the embankment were culverts through which surface water draining could pass. In
1990, rainfall caused the embankment to overflow into the
Steubens house due to a clogged culvert. The Steubens contended that the flooding of their house constituted a physical
taking, and they filed an inverse condemnation claim against
the city. While this court did not specify when the Steubens
inverse condemnation claim accrued, it set forth guidance for
when an inverse condemnation claim for a physical taking
generally accrues. This court stated that [a]n action accrues
and the statutory time within which the action must be filed
begins to run when the injured party has the right to institute
and maintain a lawsuit, although the party may not know
the nature and extent of the damages.16 Accordingly, [t]he
Steubens filed their claim well within 10 years of any event
which would have given them the right to institute and maintain a lawsuit.17
This court has not specifically addressed when the statutory period starts running in an inverse condemnation action
in the context of regulatory takings, but we find guidance
in Western Fertilizer. There, we discussed a decision from
the Iowa Supreme Court involving an inverse condemnation
action brought following the enactment of restrictive zoning regulations.18 We observed that the Iowa Supreme Court,
in considering whether the statute of limitations barred the
action, stated that the passage of the permanent ordinance
had immediate adverse economic consequences for plaintiffs.
The regulations impact on the development potential and
market value of the property was immediate, and constituted
15
16
17
18
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20
21
22
23
24
Id. at 110, 504 N.W.2d at 818 (quoting Scott v. City of Sioux City, 432
N.W.2d 144 (Iowa 1988)).
Id. at 110, 504 N.W.2d at 818.
Lindner v. Kindig, supra note 7.
Id. at 393, 826 N.W.2d at 873 (emphasis in original).
See, e.g., Scott v. City of Sioux City, supra note 19 (statute of limitations
began to run no later than when plaintiffs filed action seeking recovery
for inverse condemnation because it indicates they believed they had
sustained injury at that time).
See, e.g., Klumpp v. Borough of Avalon, 202 N.J. 390, 409-10, 997
A.2d 967, 978 (2010) ([u]nder either principle for accomplishing the
takingphysical or regulatoryfollowing the governmental seizure of the
property, the cause of action for inverse condemnation begins to accrue
on the date the landowner becomes aware or, through the exercise of
reasonable diligence, should have become aware, that he or she had been
deprived of all reasonably beneficial use).
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have held that the statute of limitations begins to run when the
land use regulation is passed, because that provides sufficient
notice to landowners.25
[9] We now hold that in the context of a regulatory taking, a cause of action for inverse condemnation begins to
accrue when the injured party has the right to institute and
maintain a lawsuit due to a citys infringement, or an attempt
at infringement, of a landowners legal rights in the property.
This is consistent with our holding in Western Fertilizer in
regard to inverse condemnation actions in the context of
physical takings requiring more than a citys claiming an
interest in the property; the city must exercise dominion over
or obtain an interest in the property for the statutory period to
start running.
In determining when a cause of action for inverse condemnation accrued in this case, the relevant inquiry is when
the Strodes had the right to institute and maintain a lawsuit
against the City for the infringement or attempt at infringement of the legal right to use the property as they wished,
because the City exercised dominion over or obtained an
interest in the property. The City passed the ordinance in
1998. As in Western Fertilizer, the passage of the ordinance
indicated that the City claimed an interest in the property, but
it was not sufficient to toll the statute of limitations. The City
acted to implement the ordinance on the property (1) when the
City zoning administrator repeatedly notified the Strodes of
25
See, e.g., Levald, Inc. v. City of Palm Desert, 998 F.2d 680, 688 (9th Cir.
1993) (cause of action under section 1983 accrued upon the passage
of the ordinance); Fredrick v. Northern Palm Beach Cty. Imp., 971 So.
2d 974 (Fla. App. 2008) (statute of limitations began to accrue either
from date assessments were created or from date city approved them, as
this provided property owners with adequate notice); Lowenberg v. City
of Dallas, 168 S.W.3d 800, 802 (Tex. 2005) ([g]enerally, a cause of
action accrues when a wrong produces an injury[, and in] a regulatory
taking, it is passage of the ordinance that injures a propertys value or
usefulness).
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27
28
Steuben v. City of Lincoln, supra note 9, 249 Neb. at 272, 543 N.W.2d at
163 (citing 25-202).
Id. at 272-73, 543 N.W.2d at 163.
Reinke Mfg. Co. v. Hayes, supra note 10, 256 Neb. at 452, 590 N.W.2d at
389.
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See Steuben v. City of Lincoln, supra note 9, 249 Neb. at 272, 543 N.W.2d
at 163.
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[11,12] Neb. Const. art. I, 21, provides that the property of no person shall be taken or damaged for public use
without just compensation therefor. As we explained in
Scofield v. State,30 the U.S. Supreme Court has clarified the
law surrounding regulatory takings claims and provided a
framework under which such claims are to be addressed. This
court has held that federal constitutional case law and our
state constitutional case law regarding regulatory takings are
coterminous.31
[13] The U.S. Supreme Court has identified two types of
regulatory actions that constitute categorical or per se takings: (1) where the government requires an owner to suffer a
permanent physical invasion of his property, however minor,
and (2) where regulations completely deprive an owner of
all economically beneficial use of his property.32 Neither
applies here.
[14] Outside these two relatively narrow categories, regulatory takings challenges are analyzed using essentially ad hoc,
factual inquiries governed by the factors set forth in Penn
Central Transp. Co. v. New York City.33 These include the
economic impact of the regulation on the claimant, the extent
to which the regulation has interfered with distinct investmentbacked expectations, and the character of the governmental action.34
We have held that [t]he right to full and free use and
enjoyment of ones property in a manner and for such purposes
30
31
32
33
34
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as the owner may choose, so long as it is not for the maintenance of a nuisance or injurious to others, is a privilege protected by law.35 This court recognizes that
a property owner suffers a compensable damage on account
of the construction or vacation of a public road when
egress and ingress to his property are cut off or interfered
with and he has no other reasonable means of access.
The right of access under such circumstances is property
which cannot be taken from him without compensation.36
And in their complaint, the Strodes allege the Citys and
the Countys actions through limiting access to their property
have substantially diminished the values of [their] land and
business enterprises without compensation. Consequently, the
Strodes prayed for an order requiring the City and the County
to properly repair and maintain the bridge structure and
[m]onetary damages for the loss of value and harm, temporary and/or permanent, to [their] real property and business operations.
[15] However, the U.S. Supreme Court clarified the extent of
the economic impact of a regulation required to receive compensation. The Court recognized that in instances in which
a state tribunal reasonably concluded that the health, safety,
morals, or general welfare would be promoted by prohibiting
particular contemplated uses of land, this Court has upheld
land-use regulations that destroyed or adversely affected recognized real property interests.37 Thus, land use regulations
do not effect a taking merely because the regulation caused a
diminution in property value alone.38 For example, this court
35
36
37
38
Scofield v. State, supra note 30, 276 Neb. at 234, 753 N.W.2d at 360
(quoting State v. Champoux, 252 Neb. 769, 566 N.W.2d 763 (1997)).
Fougeron v. County of Seward, 174 Neb. 753, 759, 119 N.W.2d 298, 303
(1963).
Penn Central Transp. Co. v. New York City, supra note 33, 438 U.S. at
125.
Strom v. City of Oakland, supra note 34, 255 Neb. at 220, 583 N.W.2d at
318.
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41
42
43
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45
46
47
48
Ruckelshaus v. Monsanto Co., 467 U.S. 986, 104 S. Ct. 2862, 81 L. Ed. 2d
815 (1984).
Rodehorst Bros. v. City of Norfolk Bd. of Adjustment, supra note 33, 287
Neb. at 798, 844 N.W.2d at 770.
Penn Central Transp. Co. v. New York City, supra note 33, 438 U.S. at
124.
Id.
See Kraft & Sons, Inc. v. City of Lincoln, supra note 41, 182 Neb. at 190,
153 N.W.2d at 727.
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Darrah v. Bryan Memorial Hosp., 253 Neb. 710, 571 N.W.2d 783 (1998).
Brock v. Dunning, 288 Neb. 909, 854 N.W.2d 275 (2014).
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that a compensable taking or damage has occurred should consideration be given to what damages were proximately caused
by the taking or damaging for public use.55 The Strodes have
not established that the Citys or the Countys actions constituted a compensable taking, and thus damages do not need to
be addressed. The Strodes final assignment of error is without merit.
VI. CONCLUSION
The district court did not err in finding in favor of the City
and the County. The decision of the district court is affirmed.
A ffirmed.
55
Id.