Amicus Curiae Brief — Ariyan Incorporated, dba Discount Corner, et al., Petitioners v. Sewerage & Water Board of New Orleans, et al.

Supreme Court briefAug 18, 2022

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No. 22-52

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In The

Supreme Court of the United States

---------------------------------♦--------------------------------ARIYAN, INC., DBA DISCOUNT CORNER, et al.,

Petitioners,

v.

SEWERAGE & WATER BOARD

OF NEW ORLEANS, et al.,

Respondents.

---------------------------------♦--------------------------------On Petition For A Writ Of Certiorari

To The United States Court Of Appeals

For The Fifth Circuit

---------------------------------♦--------------------------------BRIEF OF AMICUS CURIAE

OWNERS’ COUNSEL OF AMERICA

IN SUPPORT OF PETITIONERS

---------------------------------♦--------------------------------MARK M. MURAKAMI

Counsel of Record

JOANNA C. ZEIGLER

CHEYNE I.Y. YONEMORI

DAMON KEY LEONG KUPCHAK HASTERT

1003 Bishop Street, 16th Floor

Honolulu, Hawaii 96813

(808) 531-8031

mmm@hawaiilawyer.com

Counsel for Amicus Curiae

================================================================================================================

COCKLE LEGAL BRIEFS (800) 225-6964

WWW.COCKLELEGALBRIEFS.COM

i

QUESTION PRESENTED

A fundamental element of just compensation is

“certain payment of the compensation without unreasonable delay.” Bragg v. Weaver, 251 U.S. 57, 62 (1919).

In 2013, the Sewerage & Water Board of New Orleans

inversely condemned the properties of 70 home and

business owners for a flood control project. The property owners obtained state court judgments starting

in 2018. Louisiana law prohibits enforcement of judgments against state and local governments – even just

compensation judgments – which go unpaid unless

government voluntarily appropriates the funds. The

Sewerage Board has refused to do so, in some cases for

years. The question presented is:

May the government, consistent with the Fifth

and Fourteenth Amendments’ self-executing command

of Just Compensation for takings of private property,

indefinitely delay paying just compensation?

ii

TABLE OF CONTENTS

Page

QUESTION PRESENTED...................................

i

TABLE OF CONTENTS ......................................

ii

TABLE OF AUTHORITIES .................................

iv

INTEREST OF AMICUS CURIAE ......................

1

SUMMARY OF ARGUMENT ..............................

2

ARGUMENT ........................................................

3

I.

II.

This Case Provides a Vehicle to Address

the Circuit Split on the Inviolability of

Just Compensation ....................................

3

Prompt Payment of Just Compensation is

a Federal Civil Right, Enforceable in Federal Court ..................................................

7

A. Federal Courts are Empowered to Enforce Federal Constitutional Rights......

7

B. Self-Executing Character of the Fifth

Amendment Requires Prompt Payment ..................................................... 10

C. Fifth Circuit Was Wrong to Rely on

Folsom .................................................. 12

III.

The Just Compensation Clause Requires

Timely Payment ......................................... 15

A. Possession Requires Payment or Deposit ..................................................... 15

B. Failure to Pay Compensation Triggers

Repossession ........................................ 17

iii

TABLE OF CONTENTS – Continued

Page

C. Prompt Payment in Inverse Condemnation Cases Protects Landowners

from Condemnor Default ..................... 17

D. Prompt Payment Requirement is a

Modest Tool to Obtain Compliance ...... 20

CONCLUSION..................................................... 22

iv

TABLE OF AUTHORITIES

Page

CASES

Ariyan, Inc. v. Sewerage & Water

Board of New Orleans,

29 F.4th 226 (5th Cir. 2022) ....................................14

Armstrong v. United States,

364 U.S. 40 (1960) .....................................................7

Big Lost River Irrigation Co. v. Davidson,

121 P. 88 (Idaho 1912) .............................................20

Bragg v. Weaver,

251 U.S. 57 (1919) .....................................................7

Brown v. Board of Education,

347 U.S. 483 (1954) ...................................................8

Brown v. Kennebec Water Dist.,

79 A. 907 (Me. 1911) ................................................20

Cedar Point Nursery v. Hassid,

141 S. Ct. 2063 (2021) .............................................11

Chicago v. Barbian,

80 Ill. 482 (Ill. 1875) ................................................20

Cnty. Board of School Trustees v. Boram,

186 N.E.2d 275 (Ill. 1962) .......................................21

Cobb v. City of Stockton,

909 F.3d 1256 (9th Cir. 2018) ............................ 3, 5, 6

Community Redevelopment Agency v.

Force Electronics,

55 Cal. App. 4th 622 (Ct. App. 1997) ................ 18, 19

Des Moines v. Des Moines War Co.,

218 F. 939 (S.D. Iowa 1914) .....................................20

v

TABLE OF AUTHORITIES – Continued

Page

Dolan v. City of Tigard,

512 U.S. 374 (1994) ...................................................8

Fin. Oversight & Mgmt. Bd. v. Cooperativa de

Ahorro (In re Fin. Oversight & Mgmt. Bd.),

No. 22-1119, 2022 U.S. App. LEXIS 19736

(1st Cir. July 18, 2022) ...................................... 3, 4, 5

First English Evangelical Lutheran Church v.

Cty. of L.A.,

482 U.S. 304 (1987) .................................................10

Florida C. & P.R. Co. v. Bear,

31 So. 287 (Fla. 1901) ..............................................20

Folsom v. Mayor & Adm’rs,

109 U.S. 285 (1883) ......................................... passim

Gates v. Collier,

616 F.2d 1268 (5th Cir. 1980) ....................................8

Hamacher v. People,

29 Cal. Rptr. 513 (1963) ..........................................20

Hays v. Port of Seattle,

215 U.S. 233 (1920) ...................................................7

Heath v. City of Alexandria,

52 So. 3d 86 (La. Ct. App. 2010) ..............................21

Higginbotham Ex’x v. Commonwealth,

66 Va. 627 (Va. 1974) ...............................................21

Jazz Casino Co., LLC v. Bridges,

223 So. 3d 488 (La. 2017) ........................................21

Jones v. Hammer,

255 P. 955 (Wa. 1927) ..............................................20

vi

TABLE OF AUTHORITIES – Continued

Page

Joslin Mfg. Co. v. City of Providence,

262 U.S. 668 (1923) ...................................................7

Kirby Forest Industries v. United States,

467 U.S. 1 (1984) ............................................... 11, 16

Knick v. Township of Scott,

139 S. Ct. 2162 (2019) ..................................... 4, 9, 10

Mandel v. Myers,

29 Cal. 3d 531 (Cal. 1981) .......................................21

Phelps v. United States,

274 U.S. 341 (1927) .................................................18

Redevelopment Agency v. Gilmore,

700 P.2d 794 (Cal. 1985)..........................................18

San Diego Gas & Elec. Co. v. San Diego,

450 U.S. 621 (1981) .................................................11

State ex rel. Attorney Gen. v. Young,

29 Minn. 474 (Minn. 1881)......................................21

State ex rel. Folsom Bros. v. Mayor & Adm’rs of

New Orleans,

32 La. Ann. 709 (1880) ...................................... 12, 13

Sweet v. Rechel,

159 U.S. 380 (1895) ...................................................7

United States v. Clarke,

445 U.S. 253 (1980) .................................................11

Williamson County v. Hamilton Bank,

473 U.S. 172 (1985) ...................................................9

Witkowski v. Bradley,

35 La. Ann. 904 (1883) ............................................15

vii

TABLE OF AUTHORITIES – Continued

Page

CONSTITUTIONAL PROVISIONS, STATUTES, AND RULES

U.S. Const. amend. V .......................................... passim

U.S. Const. amend. XIV ................................ 1, 2, 11, 14

40 U.S.C. § 3115 ..........................................................16

Alaska Stat. § 09.55.400 .............................................16

Cal. Code Civ. Proc. § 1255.010 ..................................16

Fla. Stat. § 73.11 ................................................... 17, 20

Haw. Rev. Stat. § 101-25 .............................................17

La. Const. of 1868 .......................................................13

La. Const. of 1879 ........................................... 13, 14, 15

N.J. Stat. § 20:3-18 ......................................................16

S. Ct. R. 37 ....................................................................1

OTHER AUTHORITIES

1A Nichols on Eminent Domain § 4.8 (2022) ........ 1, 17

Christina Bohannan, Beyond Abrogation of Sovereign Immunity: State Waivers, Private Contracts, and Federal Incentives, 77 N.Y.U.L.

Rev. 273 (2002) ........................................................21

James W. Ely, The Guardian of Every Other

Right: A Constitutional History of Property

Rights (3d ed. 2008) ..................................................1

viii

TABLE OF AUTHORITIES – Continued

Page

Gideon Kanner, Making Laws and Sausages:

A Quarter-Century Retrospective on Penn

Central Transportation Co. v. City of New York,

13 Wm. and Mary Bill of Rts. J. 679 (2005) ............12

D. Bruce La Pierre, Enforcement of Judgments

Against States and Local Governments: Judicial Control over the Power to Tax, 61 Geo.

Wash. L. Rev. 301 (1991) ...........................................8

Frank T. Read, The Bloodless Revolution: The

Role of the Fifth Circuit in the Integration of

the Deep South, 32 Mercer L. Rev. 1149

(1981) .........................................................................9

Remembering Judge Elbert P. Tuttle, https://www.

ca11.uscourts.gov/remembering-judge-elbertp-tuttle .......................................................................9

1

INTEREST OF AMICUS CURIAE1

Owners’ Counsel of America (OCA) is an invitationonly network of the nation’s most experienced eminent

domain and property rights attorneys. Its members

join together to advance, preserve, and defend the

rights of private property owners and to further the

cause of liberty, because the right to own and use property is “the guardian of every other right.” See James

W. Ely, The Guardian of Every Other Right: A Constitutional History of Property Rights (3d ed. 2008). OCA

is a non-profit organization sustained solely by its

members. Only one member is admitted from each

state. OCA members have been counsel for parties or

amici in most of this Court’s landmark property and

takings cases over the past fifty years, and OCA members have authored or edited treatises, books, and articles on property law, takings, and just compensation,

including editing the leading eminent domain treatise

Nichols on Eminent Domain.

Prompt payment of just compensation is a fundamental right protected by the Fifth and Fourteenth

Amendments, which state law may not impede or restrict. OCA has a unique viewpoint and we believe this

brief will be helpful to the Court.

---------------------------------♦---------------------------------

Rule 37 disclosure: All parties were timely notified and consented to the filing of this brief. No part of this brief was authored

by any party’s counsel and no person, or entity, other than amicus

funded its preparation and submission.

1

2

SUMMARY OF ARGUMENT

This case presents an opportunity for the Court to

enforce the fundamental principle that just compensation must be paid within a reasonable time of a taking.

The Just Compensation Clause requires more than an

unenforceable suggestion to pay. This Court time and

time again has affirmed the self-executing nature of

just compensation. And yet, as this case demonstrates,

property owners remain subject to the whims of condemnors when it comes time to pay that compensation.

Louisiana law cannot usurp the Fifth and Fourteenth

Amendments’ right to timely compensation and federal courts are empowered to enforce that civil right. A

mere promise to pay without some federal judicial enforcement tool in back of it leaves landowners vulnerable to municipal bankruptcy, redevelopment agency

and utility company insolvency, or as here, the bare

politics in the legislature.

This brief makes three points:

1. The lower courts are split on whether the Just

Compensation Clause is self-executing, and whether

anything can impede the requirement of full and

prompt payment of compensation.

2. Property rights, including the right to timely

compensation, are federal civil rights and federal

courts have the power to enforce them to remedy any

constitutional violation.

3. Timely payment of compensation is a wellestablished principle required by the Just Compensation Clause.

3

Absent enforceability of the requirement of timely

payment, the Just Compensation Clause is rendered

hollow.

---------------------------------♦---------------------------------

ARGUMENT

I.

THIS CASE PROVIDES A VEHICLE TO

ADDRESS THE CIRCUIT SPLIT ON THE

INVIOLABILITY OF JUST COMPENSATION

As the Petition highlights, this Court has not addressed a key issue of whether anything can prevent

the payment of full compensation, or otherwise inhibit

the mandate of the Just Compensation Clause. On this

issue, the Fifth Circuit here joined the Ninth Circuit,

which in Cobb v. City of Stockton, 909 F.3d 1256 (9th

Cir. 2018), held that just compensation claims, can receive less, or none, of their just compensation by operation of bankruptcy laws. Very recently, the First

Circuit, relying on the self-executing nature of just

compensation, held the opposite and refused to allow

bankruptcy law to impede full payment of just compensation. Fin. Oversight & Mgmt. Bd v. Cooperativa de

Ahorro, No. 22-1119, 2022 U.S. App. LEXIS 19736, at

*5 (1st Cir. July 18, 2022). A ruling from this Court resolving the split and requiring reasonably prompt payment of just compensation would dramatically lower

the risk of condemnors violating the Fifth Amendment

by nonpayment of just compensation. Granting the Petition also will allow the Court to emphasize the payment required by the Just Compensation Clause and

4

resolve the real risk of delayed payment – or even nonpayment – which faces owners whose property has

already been taken.

Fin. Oversight & Mgmt. Bd concerned the bankruptcy of the Commonwealth of Puerto Rico. The

debtor proposed to treat Puerto Rico’s liability for just

compensation claims (for condemnation and inverse

condemnation) as unsecured debt, thus subject to reduced payment. Id. at *5. The debtor cited this Court’s

decision in Knick v. Township of Scott, 139 S. Ct. 2162,

2171 (2019) arguing that the decision meant that the

right to compensation was “untethered” from the taking which made it like any other unsecured creditor

claim. Id. at *18. The First Circuit affirmed that bankruptcy law could not impede the full payment of just

compensation for property already taken:

Recognizing that the “right to full compensation arises at the time of the taking,” does not

imply that the subsequent denial of that compensation does not also raise Fifth Amendment concerns. We decline to read Knick as

changing the Fifth Amendment right to receive just compensation into a mere monetary

obligation that may be dispensed with by statute.

Id. at **18-19 (internal citation omitted). The court

continued:

Just compensation then does not serve only as

a remedy for a constitutional wrong; it serves

also as a structural limitation on the government’s very authority to take private property

5

for public use. As the Court has stated, “where

the government’s activities have already

worked a taking . . . , no subsequent action by

the government can relieve it of the duty to

provide compensation.” Simply put, the Fifth

Amendment contemplates a “constitutional

obligation to pay just compensation.”

Id. at **22-23 (emphasis added, internal citation omitted).

In contrast, the Ninth Circuit in Cobb, held that a

government’s obligation to pay just compensation for

takings is like any other unsecured debt. In that case,

the City of Stockton filed an eminent domain action

and used its powers of “quick take” to obtain possession

of land to build a road. 909 F.3d at 1260. As was his

right, the landowner withdrew the deposited compensation pending future adjudication of his actual just

compensation award. Id. at 1261. Ultimately, the eminent domain action was dismissed for failure to proceed to trial and title to the property did not pass to

the City of Stockton. Id. The landowner brought an inverse condemnation suit seeking just compensation for

the taking since the road involved in the condemnation

action was in fact built. Id. Before Cobb’s claim went

to judgment in state court, Stockton petitioned for protections under the Bankruptcy Code. Id. at 1262. The

confirmed plan treated the landowner’s claim as general unsecured debt and allowed the just compensation

claim to be adjusted in the plan. Id. On appeal, the

Ninth Circuit held that a landowner’s inverse condemnation claim following a failed condemnation lawsuit,

6

was an “unsecured monetary debt claim” capable of adjustment in a municipal bankruptcy reorganization,

id. at 1267, and treated the landowner as if he was any

other creditor subject to equitable mootness. Id. at

1263.

Cobb argued that the Takings Clause exempted

his unsecured claim from reorganization. Id. at 1266.

The Ninth Circuit disagreed, holding:

The Takings Clause is only implicated in

bankruptcy if the creditor has actual property

rights. In other words, the creditor must have

an in rem right under nonbankruptcy law to

look to specific items of property in order for

the debt to be paid ahead of unsecured creditors. If the purported property interest is, in

reality, just a contractual or statutory right

for monetary relief, then the debt can be adjusted in bankruptcy.

****

As the bankruptcy court pointed out, if the inverse condemnation claim had been reduced

to a judgment, it would be subject to adjustment in bankruptcy, therefore it is not logical

to say that an unliquidated claim for greater

compensation cannot be adjusted in bankruptcy.

Id. at 1266-67.

7

II.

PROMPT PAYMENT OF JUST COMPENSATION IS A FEDERAL CIVIL RIGHT, ENFORCEABLE IN FEDERAL COURT

The Fifth Amendment’s Just Compensation

Clause’s bedrock protection is to “bar Government

from forcing some people alone to bear public burdens

which, in all fairness and justice, should be borne by

the public as a whole.” Armstrong v. United States, 364

U.S. 40, 49 (1960).

Actual payment of just compensation is included

in the Fifth Amendment’s protection. See, e.g., Sweet v.

Rechel, 159 U.S. 380, 401 (1895) (means for securing

payment must be such that owner will not be put to

risk of unreasonable delay); Bragg v. Weaver, 251 U.S.

57, 62 (1919) (compensation due without unreasonable

delay); Hays v. Port of Seattle, 251 U.S. 233, 238 (1920)

(Constitution requires payment without unreasonable

delay); Joslin Mfg. Co. v. City of Providence, 262 U.S.

668, 677 (1923) (just compensation mandate fulfilled

when public is pledged to reasonably prompt payment

and there is provision for enforcing that pledge).

A. Federal Courts are Empowered to Enforce Federal Constitutional Rights

As the vindicator of federal civil rights, federal

courts should not be closed to claims that a local government unreasonably delayed just compensation after a taking. As this Court has said, property rights

should enjoy the same privileged constitutional status

in federal courts as the other rights enshrined in the

8

Bill of Rights. Dolan v. City of Tigard, 512 U.S. 374, 392

(1994) (“We see no reason why the Takings Clause of

the Fifth Amendment, as much a part of the Bill of

Rights as the First Amendment or Fourth Amendment,

should be relegated to the status of a poor relation in

these comparable circumstances.”).

Here there is no question of whether a taking has

occurred, nor any dispute as to the amount of compensation. Accordingly, the only issue that was brought to

federal court was whether the Sewerage Board had unreasonably delayed payment of just compensation.

And the Fifth Circuit held that federal courts have no

power to hear, much less remedy, that claim. Yet, in

other civil rights cases, the Fifth Circuit has not been

cowed by government’s delays, but approved use of any

“weapon” at a court’s disposal to enforce civil rights

judgments: “[t]he defendants have made it abundantly

clear that they intend to resist the judgment until the

bitter end. Given such obstinance, we think it beyond

peradventure that the remedy fits the wrong.” Gates v.

Collier, 616 F.2d 1268, 1271-72 (5th Cir. 1980). “If statutory authority is needed for the court’s actions, it may

be found in Fed.R.Civ.P. 70.” Id.2

As the Fifth Circuit decisions following Brown v.

Bd. of Educ., 347 U.S. 483 (1954) showed, federal courts

See generally D. Bruce La Pierre, Enforcement of Judgments Against States and Local Governments: Judicial Control

over the Power to Tax, 61 Geo. Wash. L. Rev. 301 (1993).

2

9

are able to redress constitutional violations committed

by state and local institutions.3

In a similar vein, this Court recently remedied

three decades of unfair and doctrinally unsupportable

rulings that kept landowners from asserting their federal constitutional property rights in federal court. In

Knick v. Township of Scott, 139 S. Ct. 2162 (2019), this

Court overruled the requirement – first adopted in Williamson County v. Hamilton Bank, 473 U.S. 172 (1985)

– that property owners seek and be denied compensation in state courts before having a ripe federal claim.

Knick let these claims come back to federal court and

emphasized what was lost by the Fifth Circuit here,

that the right to compensation arises at the taking,

and “no subsequent action by the government can relieve it of the duty to provide compensation.” Knick,

139 S. Ct. at 2171. State law simply cannot relieve or

unreasonably postpone the duty to pay compensation,

and federal courts should have the power to hear

claims of unpaid or delayed payments and remedy

those violations of the Fifth Amendment.

See Frank T. Read, The Bloodless Revolution: The Role of

the Fifth Circuit in the Integration of the Deep South, 32 Mercer

L. Rev. 1149 (1981), available at https://digitalcommons.law.mercer.

edu/cgi/viewcontent.cgi?article=2239&context=jour_mlr; see also

Remembering Judge Elbert P. Tuttle, available at https://www.ca11.

uscourts.gov/remembering-judge-elbert-p-tuttle.

3

10

B. Self-Executing Character of the Fifth

Amendment Requires Prompt Payment

The Petition should be granted to affirmatively

state that the Just Compensation Clause has primacy

over any conflicting state law. Or, to put it more simply,

that just compensation judgments must be paid. Here,

with a blessing from the Fifth Circuit, a Louisiana

agency flouted lawful, binding, and valid judgments

directing just compensation payments to landowners

found to have suffered a taking. Ignoring the payment mandate of the Fifth Amendment, the agency

subjected the prevailing landowners to a murky and

uncertain prospect of payment from the legislative process. Governmental appropriations, owned by the most

political of the three branches of government, is a discretionary governmental process. But just compensation is mandatory, not discretionary. Amend. V (“nor

shall private property be taken for public use, without

just compensation”). As such, the Fifth Amendment

provides no guarantee of just compensation if a legislature cannot be compelled to satisfy the judgements

awarding such just compensation.

This Court has termed the compensation protections of the Fifth Amendment as “self-executing” repeatedly. Knick v. Twp. of Scott, 139 S. Ct. 2162, 2171

(2019) (“Because of ‘the self-executing character’ of

the Takings Clause ‘with respect to compensation,’ a

property owner has a constitutional claim for just compensation at the time of the taking”); First English

Evangelical Lutheran Church v. Cty. of L.A., 482 U.S.

304, 315 (1987) (“We have recognized that a landowner

11

is entitled to bring an action in inverse condemnation

as a result of the self-executing character of the constitutional provision with respect to compensation. . . .”)

(internal quotation marks omitted); United States v.

Clarke, 445 U.S. 253, 257 (1980) (same); Kirby Forest

Indus. v. United States, 467 U.S. 1, 5 n.6 (1984)

(same); San Diego Gas & Elec. Co. v. San Diego, 450

U.S. 621, 654 (1981) (Brennan, J., dissenting) (“This

Court has consistently recognized that the just compensation requirement in the Fifth Amendment is not

precatory: once there is a ‘taking,’ compensation must

be awarded.”). Simply put, it is the uncompensated aspect of a taking, whether by a regulation going “too far”

or interfering with investment-backed expectations or

by a dilatory legislature not paying judgments, which

violates the Fifth and Fourteenth Amendments.4

Claims by a condemnor, post-taking, that it needs

additional taxes or assessments to pay just compensation judgments should fall on deaf ears. As property

rights professor Gideon Kanner wrote:

[A]s a matter of both principle and law, it is

difficult to accept the notion that the condition

of the public purse delimits a specific constitutional provision explicitly set out in the Bill

of Rights. Are we to take it that an impecunious municipality can get a free pass to violate

its constitutional obligations and acquire private property for less than the law requires?

Cedar Point Nursery v. Hassid, 141 S. Ct. 2063, 2074 (2021)

(the growers’ complaint states a claim for an uncompensated taking in violation of the Fifth and Fourteenth Amendments).

4

12

Wouldn’t that, by parity of reasoning, also

imply that a wealthy community enjoying a

fiscal surplus should have to pay for all of condemnees’ demonstrable losses including those

that are ordinarily non-compensable under

current law, plus perhaps a solatium payment, as has been done at times in other

countries? It seems to me that the definitive

answer to arguments of municipal poverty

was delivered by the U.S. Supreme Court as a

matter of constitutional principle, when it observed, in Watson v. City of Memphis, that

“vindication of conceded constitutional rights

cannot be made dependent on any theory that

it is less expensive to deny than to afford

them.”5

C. Fifth Circuit Was Wrong to Rely on Folsom

The Fifth Circuit relied almost exclusively on a

misreading of this Court’s opinion in Folsom v. Mayor

& Adm’rs, 109 U.S. 285 (1883). This Court should grant

the Petition to distinguish Folsom or reject its continued viability. In that case, the Louisiana supreme court

overturned a writ of mandamus directing the City of

New Orleans to impose taxes to pay for tort judgments

arising from property damage suffered in the New Orleans riots of 1873. State ex rel. Folsom Bros. v. Mayor

& Adm’rs of New Orleans, 32 La. Ann. 709, 718 (1880).

The court concluded that complying with the writ

Gideon Kanner, Making Laws and Sausages: A QuarterCentury Retrospective on Penn Central Transportation Co. v. City

of New York, 13 Wm. and Mary Bill of Rts. J. 679, 761 (2005).

5

13

would violate the 1879 Louisiana constitution, which

established a limit on the taxes that could be assessed.

Id. at 715.6

This Court affirmed, holding that municipalities

were immune from execution under the Louisiana constitution’s maximum tax provisions. Folsom v. Mayor

& Adm’rs, 109 U.S. 285, 290 (1883). The majority concluded the right to reimbursement for riot-caused

damages to be provided, and taken away, at the pleasure of the legislature. Id. at 287. This Court ultimately

cabined its holding to the nature of the claim before it,

noting that an “ordinary judgment of damages for a

tort” was not before it. Id. at 290. Folsom did not involve judgments arising from just compensation, contract, or even tort. Justice Bradley concurred. He

concluded that a tort judgment, unlike the judgments

in Folsom, were property and to abrogate the remedy

for enforcing the judgment, would “deprive the owner

In 1868, with a convention inclusive of African American

delegates, Louisiana adopted a constitution which included a

provision guaranteeing all schoolchildren admittance to the public schools “without distinction of race, color, or previous condition.” La. Const. of 1868, art. 135. It also provided, “There shall

be no separate schools or institutions of learning established exclusively for any race by the State of Louisiana.” Finally, it provided, “nor vested rights divested unless for purposes of public

utility and for adequate compensation made.” La. Const. of 1868,

art. 110.

After Reconstruction ended. Louisiana convened a constitutional convention and in 1879, adopted a new constitution. La.

Const. of 1879. It removed the protections of African American

schoolchildren and included a cap on the property taxes that could

be assessed by municipalities or parishes. La. Const. of 1879, art.

209.

6

14

of his property within the meaning of the Fourteenth

Amendment.” Id. at 291 (Bradley, J., concurring). But

he also agreed that the cause of action was not contract

or tort, but rather on the grounds that remedies for

mob violence was “purely matters of legislative policy”

which could be repealed at any time. Id. at 291 (Bradley, J., concurring).

Justice Harlan dissented, concluding that the

judgments were property whether founded in contract

or otherwise. Id. at 293-94 (Harlan, J., dissenting).

Withholding of payment constituted destruction of the

“value” of the property in violation of the Constitution.

Id. at 294 (Harlan, J., dissenting) (A judgment’s “value

as property depends in every legal sense upon the remedies which the law gives to enforce its collection. To

withhold from a citizen who has a judgment for money

the judicial means of enforcing its collection . . . is to

destroy the value of the judgment as property.”).

Folsom cannot be read so broadly as to permit

just compensation judgment holders to be deprived of

timely compensation. That case involved a judgment

for property damages arising from a riot. The decision

did not pass on the application of the 1879 constitution’s Art. 209 on just compensation judgments. Indeed, the same 1879 constitution required that just

compensation precede takings. La. Const. of 1879, art.

156 (“Private property shall not be taken nor damages

for public purposes without just and adequate compensation being first paid.”) (emphasis added). There is no

way to harmonize a provision saying that payment be

made first with the Fifth Circuit’s decision in Ariyan,

Inc. v. Sewerage & Water Board of New Orleans, 29

15

F.4th 226 (5th Cir. 2022). See Folsom, 109 U.S. at 293

(Harlan, J., dissenting) (“[T]he State Constitution of

1879 cannot be applied to these judgments without

bringing it into conflict with that provision of the Constitution, which declares that no State shall deprive

any person of property without due process of law. That

these judgments are property within the meaning of

the Constitution cannot, it seems to me, be doubted.”).

Further, unlike here, the Louisiana supreme court

never placed Art. 209 as superior to the requirements

of the U.S. Constitution.7 If Art. 209 is causing violations of the Just Compensation Clause, then Louisiana

constitutional law required that Art. 209 yield to the

Fifth Amendment.

III. THE JUST COMPENSATION CLAUSE REQUIRES TIMELY PAYMENT

A. Possession Requires Payment or Deposit

One of the critical protections landowners have

in eminent domain actions are statutes that protect

landowners when they lose possession of their lands,

On the interplay between the 1879 constitution’s Art. 209

and the U.S. Constitution, the Louisiana supreme court stated:

This [taxing power limitation is binding on all levels of

State government], and must be sacredly observed and

enforced, save and except in such cases only where it is

found to contravene the paramount law of the land and

the restrictions imposed by that law upon the power of

the States.

Witkowski v. Bradley, 35 La. Ann. 904, 905 (La. 1883) (emphasis

added).

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whether pre-judgment, i.e., quick take, or after payment of just compensation.

In Kirby Forest Industries v. United States, 467

U.S. 1 (1984), this Court outlined the principle that

title and possession of property flow with the tender of

payment to the landowner. Id. at 4. Condemnors who

choose to not pay the award can move for dismissal. Id.

The landowner either has payment or it has its land.

For example, if the Federal Government seeks to

“quick take” property, the head of the government

agency has to make an “irrevocable commitment” to

pay the ultimate award. 40 U.S.C. § 3115. Many states,

recognizing the constitutional right to prompt payment of just compensation for takings, have enacted

similar legislation. See Alaska Stat. § 09.55.400 (deposit); Cal. Code Civ. Proc. § 1255.010 (deposit before

judgment); N.J. Stat. § 20:3-18 (deposit). Provisions

like these make the government put up collateral for

the proposed real estate transaction to secure landowners from the risk of governmental or agency intransigence or insolvency, while simultaneously protecting

their right to timely just compensation.

Statutes such as these shift burden of payment for

eminent domain takings from the individual landowner to the public as a whole, so that no one individual landowner has to bear a disproportionate share of

the cost of citizenship. Just as state governments nationwide have enacted statutory schemes to ensure

payment of just compensation in eminent domain takings, similar protections are necessary to ensure the

constitutionally protected right to just compensation is

17

afforded to landowners who have had their land taken

by inverse condemnation.

B. Failure to Pay Compensation Triggers

Repossession

Another landowner protection found in eminent

domain codes is the automatic abandonment or termination of eminent domain proceedings for failure to

pay just compensation. The timeframe for such action

varies ranging from 20 days to several years. 2011 Fla.

Statutes § 73.11; Haw. Rev. Stat. § 101-25. These laws

are an implicit recognition of the need for finality and

certainty for landowners.

C. Prompt Payment in Inverse Condemnation Cases Protects Landowners from

Condemnor Default

Prompt payment of just compensation is required

to avoid the risk that a landowner does not receive that

which was due to him. Several constitutional provisions compel payment including the Just Compensation Clause and the Due Process Clause.8

See, e.g., 1A Nichols on Eminent Domain § 4.8 (2022) (“It

may be parenthetically stated at this point that determination of

the question of compensation is not required by ‘due process’ in

advance of the acquisition, provided that adequate provision is

made for certain payment without unreasonable delay. ‘Due process’ is satisfied, under such circumstances, whenever adequate

provision is made for the ascertainment of compensation pursuant to regular processes of law and for its payment, when ascertained, in due course of procedure.”).

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Many government agencies, quasi-government

agencies, redevelopment agencies, and pipeline and

public utility companies are granted the ability take or

damage land, but may not have the financial resources

to pay for the condemnation or regulatory activities.

As such, federal courts must have the ability to enforce

just compensation judgments to avoid making condemnees the “unwilling financiers of public acquisitions.” Redevelopment Agency v. Gilmore, 700 P.2d 794,

806 (Cal. 1985). After all, this Court recognizes that

landowners are entitled to have the full equivalent of

the value of such use at the time of the taking paid

contemporaneously with the taking. Phelps v. United

States, 274 U.S. 341, 344 (1927). Requiring prompt payment of just compensation removes the risk of nonpayment and provides assurances that a landowner will

not be deprived of both her property AND compensation for years on end.

Consider the case of Community Redevelopment

Agency v. Force Electronics, 55 Cal. App. 4th 622 (Ct.

App. 1997). In that case, a California redevelopment

agency condemned, took possession of, and demolished

the improvements of a landowner. Then, the agency

was unable to pay the full just compensation award.

California law provided that if an award was unpaid

after thirty days, a landowner could repossess the

property or could opt to be paid by installment plan.

Id. at 626. The redevelopment agency pleaded financial

hardship and moved to pay the judgment over ten

years with installments. Id. at 627. The trial court

granted the agency’s motion to pay in installments. Id.

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The court of appeals concluded that the purpose of the

statute requiring payment of a final condemnation

judgment within 30 days is “to make the government

meet its constitutional obligation to pay just compensation when it has condemned private property. If the

government does not have the money for acquiring the

property, its option is to abandon the condemnation.”

Id. at 632. Further, “[i]f the government refuses to

abandon, the property owner may effectively force an

implied abandonment by using the procedure spelled

out in [the California statute].” Id. Thus, the court held

given that the statute provides for the condemnee’s

election to regain possession of the property, a statute allowing the government to satisfy a just compensation judgment in installment payments would be

unconstitutional. Id. (“It is only the fact that the condemnee has the choice to proceed [with installment

payments] or to repossess the property that save the

constitutionality of Government Code section 970.6

procedure as applied to an eminent domain judgment.”)

Neither choice is satisfying. Repossessing property after public construction projects is costly, accepting installment payments (even with interest) rarely aligns

with landowner’s carrying costs.

Prompt payment should be constitutionally mandatory given that most land has carrying costs like

mortgage interest, property taxes, and insurance and

no landowner will receive the “full and perfect equivalent” of the land lost to governmental acquisition if

she receives no payment to address those carrying

costs.

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D. Prompt Payment Requirement is a Modest Tool to Obtain Compliance

This Court’s adoption of a mandatory payment

deadline with a tool for enforcement would obviate the

need to recognize more drastic remedies or judgment

execution. Some states have adopted the rule that condemnation judgments be paid in a reasonable time.

See Des Moines v. Des Moines War Co., 218 F. 939, 942

(S.D. Iowa 1914); Chicago v. Barbian, 80 Ill. 482, 486

(Ill. 1875) (recognizing that equity would stay any attempt to possess the property without payment);

Brown v. Kennebec Water Dist., 79 A. 907, 909 (Me.

1911) (payment within reasonable time or landowner

may recover damages). Some states have adopted statutory payment requirements. See Hamacher v. People,

29 Cal. Rptr. 513, 515 (1963) (thirty days to pay by statute); Florida C. & P.R. Co. v. Bear, 31 So. 287, 288 (Fla.

1901) (ten days by statute);9 Big Lost River Irrigation

Co. v. Davidson, 121 P. 88, 94 (Idaho 1912) (“Under the

statute, if the value of the property is not paid within

thirty days, the defendant is given the right to enforce

its payment by execution as in civil cases, and if it

cannot be collected in that manner, then the court is

authorized and empowered to annul the proceedings

and restore the defendant to possession.”). To be sure,

some states have not adopted a payment deadline. See

Jones v. Hammer, 255 P. 955, 959 (Wa. 1927) (18 month

delay between judgment and payment does not void

the judgment absent some statutory or constitutional

This was changed to twenty days. 2011 Fla. Statutes

§ 73.11.

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21

specified time); Cnty. Board of School Trustees v. Boram,

186 N.E.2d 275, 279 (Ill. 1962) (failure to pay, even

without a court deadline, constitutes abandonment).

In addition, some states preclude any enforcement

of judgments outright. Higginbotham Ex’x v. Commonwealth, 66 Va. 627, 641 (Va. 1974) (courts decide

whether judgment should be rendered, not paid);

Heath v. City of Alexandria, 52 So. 3d 86, 87-88 (La. Ct.

App. 2010) (constitution does not provide judiciary

with the ability to execute judgments); State ex rel.

Attorney Gen. v. Young, 9 N.W. 737, 742-43 (Minn.

1881); Christina Bohannan, Beyond Abrogation of

Sovereign Immunity: State Waivers, Private Contracts, and Federal Incentives, 77 N.Y.U.L. Rev. 273,

299-300 (2002). Some draw a distinction between discretionary appropriations and ministerial ones, permitting enforcement of ministerial obligations. Jazz

Casino Co., LLC v. Bridges, 223 So. 3d 488, 495 (La.

2017) (refunds of overpaid taxes are ministerial and

agency can be ordered to pay). California permits court

orders requiring state officials to repurpose appropriated funds. Mandel v. Myers, 29 Cal. 3d 531, 540 (Cal.

1981). If the legislature tried to condition an appropriation to circumvent that, the courts have the power to

strike down the offending condition. Id. at 546.

---------------------------------♦---------------------------------

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CONCLUSION

This Court should grant the Petition and review

the judgment of the United States Court of Appeals for

the Fifth Circuit.

Respectfully submitted,

MARK M. MURAKAMI

Counsel of Record

JOANNA C. ZEIGLER

CHEYNE I.Y. YONEMORI

DAMON KEY LEONG KUPCHAK HASTERT

1003 Bishop Street, 16th Floor

Honolulu, Hawaii 96813

(808) 531-8031

mmm@hawaiilawyer.com

Counsel for Amicus Curiae

AUGUST 18, 2022

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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