# Amicus Curiae Brief — Murr v. Wisconsin, 136 S. Ct. 890 (2016) (No. 15-214)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0607%3A26

## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2016

## Text

Suprema Court, US.

a No. 15-214 pepe
en awe Oo.
oe JUN 14 2016
i OFFICE OF THE CLERK
gn The

Supreme Court of the Anited States

°

JOSEPH P. MURR, et al.,

Petitioners,

Vv.

STATE OF WISCONSIN and ST. CROIX COUNTY,

Respondents.

On Writ Of Certiorari To The
Wisconsin Court Of Appeals

°

BRIEF OF PROPERTY LAW PROFESSORS AS
AMICI CURIAE IN SUPPORT OF RESPONDENTS

Davip A. DANA

NORTHWESTERN PRITZKER SCHOOL OF LAW
375 East Chicago Ave.

Chicago, IL 60611

(312) 503-0240
d-dana@law.northwestern.edu

TABLE OF CONTENTS

Page
TABLE OF AUTHORITIES ...............0..000...0...0 il
INTEREST OF AMICI CURIAE ...... sidtenedbeeedaiaels 1
SUMMARY OF ARGUMENT ...................0.......... 3
EE elites cinitdiidiiiindiinihtnaw cir eincbincpcustecesiebnes 5

A. Precedent Does Not Support Giving State
Boundary Lines Determinative or Pre-
sumptively Determinative Weight ............ 5

B. Giving State Boundary Lines Determina-
tive or Presumptively Determinative
Weight Would Not Promote the Fifth
Amendment’s Goal of Assuring Fairness
IN scan cenieeh cei ler anbaiienialschanabebiaeies 11

C. Giving State Boundary Lines Determinative
or Presumptively Determinative Weight
Would Encourage Socially Unproductive
Gaming On the Part of Investors................. 16

i ctcintitenesnnechentencniintennendcieinaeinstnienie 19

i

TABLE OF AUTHORITIES
Page
CASES
Eastern Enterprises v. Apfel, 524 U.S. 498 (1998)....... 12
Giovanella v. Conservation Commission of Ash-
land, 857 N.E.2d 451 (Mass. 2006)......................... 14
Keystone Bituminous v. DeBenedectis, 480 U.S.
a A a EE I I NO em passim
Lucas v. South Carolina Coastal Council, 505
SRE RE aE MEN oS passim
Palazzolo v. Rhode Island, 533 U.S. 606
IIIT is schadahaieel ited dcpieiscileiabndbabtabnibaanindaile 3, 8,9, 10, 11
Penn Central Transp. Co. v. New York City, 438
casi ileal nacilgnndecddd passim
Pennsylvania Coal Co. v. Mahon, 260 U.S. 393
SE ARNE canon oo Re UO CWE SST AV ie SECO UE 11

Tahoe-Sierra Pres. Council, Inc. v. Tahoe Reg'l
Planning Agency, 535 U.S. 302 (2002)....8, 10, 18, 19

CONSTITUTIONAL PROVISIONS
CN i seacsssniianenecasinns passim

STATUTES
Wis. Stat. Sections 236.10, .11, .40......................cc000e 17

iil

TABLE OF AUTHORITIES — Continued

Page
OTHER AUTHORITIES
David A. Dana, Why Do We Have A Parcel-As-A-
Whole Rule?, 39 VT. L. REV. 617 (2015) ................. 10

Thomas Merrill, The Landscape of Constitu-
tional Property, 86 U. VA. L. REV. 950 (2000).......... 6

1

BRIEF OF PROPERTY LAW
PROFESSORS AS AMICI CURIAE
IN SUPPORT OF RESPONDENTS

The undersigned property law professors respect-
fully submit this brief as amici curiae in support of Re-
spondents.'

INTEREST OF AMICI CURIAE

Amici have no personal stake in the outcome of
this case; their interest is in assisting the parties and
the Court in understanding property law and the law
of Takings, insofar as that law and those rights are rel-
evant to the questions presented in this case. Joining
in this brief as amici are the following twelve law pro-
fessors, whose research and teaching have focused on
property law:

Gregory Alexander, A. Robert Knoll Professor
of Law, Cornell Law School

Michael Barsa, Professor of Practice, North-
western Pritzker School of Law

* Pursuant to Rule 37.6, amici state that no counsel for a
party authored this brief in whole or in part, and no counsel or
party made a monetary contribution intended to fund the prepa-
ration or submission of this brief. No person other than amici
curtae or their counsel made a monetary contribution to the prep-
aration or submission of the brief. Pursuant to Rule 37.3(a), all
appropriate parties have filed letters granting blanket consent to
the filing of amici curiae briefs.

2

Michael Blumm, Jeffrey Bain Faculty Scholar
and Professor of Law, Lewis & Clark Law
School

Peter Byrne, John Hampton Baumgartner, Jr.,
Professor of Real Property Law, Georgetown
University Law Center

Holly Doremus, James H. House and Hiram
H. Hurd Professor of Environmental Regula-
tion, University of California-Berkeley School
of Law

Yxta Murray, Professor of Law, Loyola Law
School — Los Angeles

Christopher Serkin, Professor of Law, Vander-
bilt Law School

Nadav Shoked, Associate Professor, North-
western Pritzker School of Law

Amy Sinden, Professor of Law, Temple Uni-
versity Beasley School of Law

Daniel Tarlock, Distinguished Professor of
Law, Chicago-Kent College of Law

Laura Underkuffler, DuPratt White Professor
of Law, Cornell Law School

Danaya Wright, Clarence J. TeSelle Professor
of Law, University of Florida Levin College of
Law

3

SUMMARY OF ARGUMENT

The question of the role of state law in defining the
boundaries of property interests for purposes of federal
Takings analysis has been raised by the petitioners
and various amici in this case. Because federal Takings
liability is premised on the federal Constitution, and
serves a distinct federal constitutional objective of
achieving fairness and justice, state property law defi-
nitions and corresponding boundaries cannot deter-
mine or even presumptively determine the relevant

property interest for purposes of determining the de-
nominator used in both the Penn Central and Lucas

Takings analyses.

Past Supreme Court precedent is consistent with
this view: state boundary lines have never been
treated as determinative or presumptively determina-
tive by this Court. On the contrary, this Court has
treated state boundary lines as neither determinative
nor presumptively so in cases such as Penn Central,
Keystone, and Palazzolo. Contrary to the suggestion of
some amici, moreover, there is no principled reason for
giving more weight to horizontal state property bound-
aries between lots than there is to give weight to state
law vertical boundaries of the sort at issue in Keystone
and Penn Central.

The goals behind state lot lines and the purposes
that animate the Fifth Amendment Takings Clause
are not, in any way, inherently, connected. How much
an owner's reasonable investment expectations were
frustrated — the focus of Takings analysis — is relevant

4

to the level of burden on the owner and the justice of

compensating or not compensating. State property def-
initions and corresponding boundary lines — and in
particular, surface/horizontal lot lines — reflect histori-
cal practices serving technical, and administrative
purposes that are unrelated to the purposes of protect-
ing investment expectations or assuring justice and
fairness. Indeed, blindly using state boundary lines to
define the property for Takings purposes can lead to
palpably unfair and unjust results, wherein some own-
ers whose reasonable expectations were only mini-
mally frustrated by government regulation would be
much more likely to prevail in Takings litigation than
owners whose reasonable expectations were very sub-
stantially frustrated.

Moreover, treating state lot lines as determinative
or presumptively determinative would encourage ma-
nipulation on the part of owners that is not socially
productive and that could lead to much more litigation
and the payment of compensation in cases in which
fairness and justice does not support such payment.
Owners can easily change property lines by subdivid-
ing property and sometimes also by rebundling it.
Given that factual reality, a holding that state lot lines
are determinative or presumptively determinative
would encourage gaming of the system, whereby inves-
tors choose to divide investments into smaller and
more discrete parcels than they otherwise would. Own-
ers would be incentivized in particular to establish any
areas of possible future regulatory concern (such as
wetlands) as a distinct legal parcel, even when such a

5

parcel is clearly part of a larger development project.
Under a rule that gives determinative or even pre-
sumptively determinative weight to state boundary
lines, an investor could manufacture a very strong
Lucas 100% “total wipeout” claim for compensation
even when the regulatory restriction at issue only
modestly or minimally reduces the value of the invest-
ment project.

State property definitions and corresponding
boundary lines — including lot lines — should not be de-
terminative or presumptively determinative of the de-
nominator used to calculate the diminution in value
for purposes of the Penn Central and Lucas tests. To
give them determinative or presumptively determina-
tive weight would be contrary to precedent, incon-
sistent with the purposes of the Takings Clause, and
likely to encourage socially unproductive gaming be-
havior in land markets.

¢

ARGUMENT

A. Precedent Does Not Support Giving State
Boundary Lines Determinative or Presump-
tively Determinative Weight

State law establishes all sorts of boundaries be-
tween different interests that can be held by different
owners or by the same owner. Those boundaries can be
vertical, as, for example, the boundary between a sur-
face interest in land and sub-surface interest or
the boundary between a surface interest and the

6

above-surface airspace. These boundaries can also be
horizontal, as, for example, the boundary between two
contiguous surface interests.

This Court’s precedent treats these state bound-
ary lines as neither determinative of the “property”
that is at issue for Fifth Amendment Takings Clause
purposes, nor as presumptively determinative. On the
contrary, this Court has readily looked beyond state
boundary lines in analyzing what property was at is-
sue for Fifth Amendment purposes and how much that
property’s value has been diminished by regulation. As
Professor Merrill has explained, the problem with
“pure positivism” — an approach that would define as
federal constitutional property for Takings Clause pur-
poses whatever is defined as a property interest under
state law — “is that it leads to the positivist trap, in the
form of too much or too little property relative to social
expectations or other normative commitments of the
Justices about the kind of things that should be pro-
tected as property.” Thomas Merrill, The Landscape of
Constitutional Property, 86 U. VA. L. REV. 885, 950
(2000).

Two leading Takings cases — Penn Central and
Keystone — implicate state law that establishes vertical
boundaries and, in both cases, the boundaries play no
role in the Court’s understanding of the relevant prop-
erty for Fifth Amendment purposes. In Penn Central,
the Court refused to treat air rights as a separate prop-
erty for Fifth Amendment purposes from the surface
structure below even though New York law treated air
rights as a distinct, alienable interest. In Keystone, this

7

Court refused to treat a sub-surface estate recognized
under Pennsylvania law as a separate property for
Fifth Amendment purposes.

As the Court explained in Penn Central:

[T]he submission that appellants may estab-
lish a “taking” simply by showing that they
have been denied the ability to exploit a prop-
erty interest that they heretofore had believed
was available for development is quite simply
untenable. Were this the rule, this Court
would have erred not only in upholding laws
restricting the development of air rights, see
Welch v. Swasey, supra, but also in approving
those prohibiting both the subjacent, see
Goldblatt v. Hempstead, 369 U.S. 590, 82 S.Ct.
987, 8 L.Ed.2d 130 (1962), and the lateral, see
Gorieb v. Fox, 274 U.S. 603, 47 S.Ct. 675, 71
L.Ed. 1228 (1927), development of particular
parcels. ‘Taking’ jurisprudence does not divide
a single parcel into discrete segments and at-
tempt to determine whether rights in a par-
ticular segment have been entirely abrogated.
In deciding whether a particular governmen-
tal action has effected a taking, this Court fo-
cuses rather both on the character of the
action and on the nature and extent of the in-
terference with rights in the parcel as a whole
— here, the city tax block designated as the
‘landmark site.’”

Penn Central Transp. Co. v. New York City, 438 U.S.
104, 130-131 (1978).

8

Building on Penn Central, the Court in Keystone
explained that “[iJt is clear, however, that our takings
jurisprudence forecloses reliance” on “legalistic dis-
tinctions within a bundle of property rights.” Keystone
v. Bituminous Coal Ass’n v. DeBenedictis, 480 U.S. 470,
499 (1987). As the Court elaborated: “For example, in
Penn Central, the Court rejected the argument that the
‘air rights’ above the terminal constituted a separate
segment of property for Takings Clause purposes. .. .
in Andrus v. Allard, we viewed the right to sell prop-
erty as just one element of the owner’s property inter-
est... . In neither case did the result turn on whether
state law allowed the separate sale of the segment of
property.” Jd. This Court in Tahoe-Sierra similarly sug-
gested that the temporal boundaries created by state
law did not define the relevant property at issue for
Fifth Amendment purposes. Tahoe-Sierra Pres. Coun-
cil, Inc. v. Tahoe Reg’l Planning Agency, 535 U.S. 302,
331 (2002).

Palazzolo is also highly instructive. Petitioner An-
thony Palazzolo owned what this Court described as a
waterfront “parcel” or “property” of land in the town of
Westerly, Rhode Island. The Court repeatedly referred
to the entire contiguous area of land owned by the pe-
titioner as “the property,” as a singular property. That
“property” was first purchased as three separate lots
under state law, then subdivided into eighty lots, of
which seventy-four remained at the time the petitioner
sought to develop the wetland portions of the area con-
sisting of seventy-four lots. Palazzolo v. Rhode Island,
533 U.S. 606 (2001). This Court held that because the

9

petitioner without question derived economic value
from the upland portion of the property, which, again,
consisted of seventy-four lots under state boundary
rules, the court below had not erred in finding that pe-
titioner’s property has not been 100% diminished in
value and thus did not implicate the test annunciated
in Lucas v. South Carolina Coastal Council, 505 U.S.
1003 (1992). If this Court had treated each lot as a
“property” for Fifth Amendment purposes, it presuma-
bly would have found that there had been a 100% dim-
inution in value.”

The facts of Palazzolo itself underscore why, in
general, state boundary lines between lots should not
determine the contours of the property at issue for
Fifth Amendment purposes. The number of lots in a
given area is not, contrary to the suggestion of some
amici, an immutable fact. There were seventy-four lots
in the physically contiguous area owned by the peti-
tioner in Palazzolo because the landowner decided to
subdivide the property into eighty lots and then to sell
six of them. The owner presumably could have chesen
a different number of lots to carve out of the land area

? It is true that the Court in Palazzolo declined to address
petitioner’s argument that the wetlands portion of his property
should be treated as distinct from the uplands portion. The argu-
ment was made for the first time before this Court and therefore
was deemed waived. Palazzolo, 533 U.S. at 631. The petitioner in
Pallazolo did not attempt to argue that the denominator for the
purpose of Takings analysis should be defined based on lot lines
in the briefing in the Rhode Island courts. The history of briefing
in Palazzolo confirms lot lines in contiguous land holdings are
generally understood as technicalities rather than as demarcat-
ing meaningfully separate, distinct investments in land.

10

— say ten or twenty or forty lots instead of eighty. But
the “property” owned by the petitioner in any sense
that should be meaningful for the Fifth Amendment
would have been the same however many lots the
owner had decided to create as part of the subdivision
process. State boundary lines between lots are not the
product of natural law or even necessarily a considered
state or local legislative decision; instead as in
Palazzolo, and as discussed more below, they may be in
substance the product of the decision making of the
owner of the physical area of land in question.

There is simply no principled basis for treating
horizontal boundary lines created by state law as hav-
ing any greater weight in defining Fifth Amendment
property than vertical boundary lines created by state
law. If horizontal state lot lines were treated as deter-
minative or presumptively so, it logically would be im-
possible not to apply the same reasoning elsewhere
and thus to unravel the principle articulated in Penn
Central and Keystone. The result would be the unrav-
elling of the parcel-as-a-whole rule, a rule that pre-
vents plaintiffs from “defining the property interest
taken in terms of the very regulation being chal-
lenged,” Tahoe-Sierra, 535 U.S. at 331. See also David
A. Dana, Why Do We Have A Parcel-As-A-Whole Rule?,
39 VT. L. REV. 617 (2015) (arguing that the principal
alternative to the parcel-as a-whole rule in Takings
cases — an approach that treats the property as solely
the area affected by regulatory restriction — could open
a broad range of ordinary economic regulation to, in ef-
fect, heightened scrutiny). The principle enunciated in

11

Penn Central and Keystone — that the definition of
property for Fifth Amendment purposes cannot be
driven by “legalistic” state categories that were not cre-
ated and implemented with Fifth Amendment values
and purposes in mind — is as applicable to horizontal
boundary lines as much as it is to vertical ones.

B. Giving State Boundary Lines Determinative
or Presumptively Determinative Weight Would
Not Promote the Fifth Amendment’s Goal of
Assuring Fairness and Justice

“Government hardly could go on if to some extent
values incident to property could not be diminished
without paying for every such change in the general
law.” Pennsylvania Coal Co. v. Mahon, 260 U.S. 393, 413
(1922). The Fifth Amendment Takings Clause is in-
tended to assure fairness and justice — and, in particu-
lar, to ensure that excessive burdens are not imposed
on property owners without compensation while at the
same time allowing many uncompensated burdens so
that government can “go on.” The purpose of the Fifth
Amendment’s guarantee that private property shall
not be taken for a public use without just compensa-
tion “is to prevent the government from ‘forcing some
people alone to bear burdens which, in all fairness and
justice, should be borne by the public as a whole.’”
Palazzolo v. Rhode Island, 533 U.S. 606, 618 (2001)
(quoting Armstrong v. United States, 364 U.S. 40, 49
(1960)).

12

Because the Takings Clause is concerned with the
fairness (or lack thereof) of the imposition of particu-
lar burdens without compensation, one highly relevant
factor is the magnitude of the burdens imposed on an
owner in any given case. This Court generally has not
looked to the dollar amount of the burden imposed by
regulatory change as relevant to the burden for Tak-
ings Clause purposes, presumably because that would
move Takings analysis away from the textual focus of
the Takings Clause on “property” (as opposed to simply
money) and toward an open-ended substantive due
process analysis that could encompass a wide range of
ordinary economic regulation. See Eastern Enterprises
v. Apfel, 524 U.S. 498, 541 (1998) (explaining that lim-
iting the Takings Clause to cases involving govern-
ment action “to destroy, or take, a specific property
interest” serves to prevent the expansion of “an al-
ready difficult and uncertain rule to a vast category of
cases not deemed, in our law, to implicate the Takings
Clause.”) (Kennedy, J., concurring). Instead, in Takings
cases, the focus has been on the diminution in value of
the property at issue due to regulatory change.
Diminution in value figures prominently in the Penn
Central test, and is decisive as to whether the Penn
Central or Lucas tests apply. Diminution in value is
surely part of these tests because it captures in some
fashion the burden imposed on the owner. See Penn
Central, 438 U.S. at 124 (“The economic impact of the
regulation on the claimant and, particularly, the extent
to which the regulation has interfered with distinct in-
vestment-backed expectations are, of course, relevant
considerations”).

13

But if the burden imposed on the owner is what
drives the use of diminution of value as part of Fifth
Amendment Takings tests, then the components used
as part of the diminution in value calculation should
also be ones that make sense in terms of the overriding
purpose of approximating the burden on the owner.
In particular, the denominator — the property — should
be assessed in a way that comports with the burden-
approximation purpose of diminution in value. An
investor bears a greater burden — all else being equal
— when a large percentage of what it reasonably con-
ceived of and treated as a distinct investment is re-
duced in value as compared to when there is a small
percentage reduction.

The formal boundary lines between lots under
state law, however, tell us nothing about the burden on
the pruperty owner and hence are unsuitable as deter-
minants or presumptive determinants of what consti-
tutes “the property” for Fifth Amendment purposes in
a given case. When calculating the denominator for
purposes of the diminution in value, it may be quite
reasonable for a court to consider a fifty-acre area that
a developer purchased to build townhomes for sale and
hence regarded as a distinct investment as “the prop-
erty” for purposes of calculating the diminution in
value. But the fifty-acre townhome development area
eould be purchased by the developer or later reconfig-
ured onto one or ten or fifty or a hundred lots. Lot lines
can be configured and reconfigured in many ways at
the behest of subdivision developers. The investment
in any meaningful sense would be the same regardless

14

of the number of lots, and so too, presumably, would the
burden imposed by any particular regulatory re-
striction. In and of themselves, state law boundaries
are uninstructive about the scope of a distinct invest-
ment as reasonably conceived by an investor and the
corresponding extent to which a burden has been im-
posed upon the investor. Accordingly, lower courts have
held that a contiguous land area under common own-
ership — an area an investor generally would regard as
a single investment because of physical unity — pre-
sumptively constitutes a single investment and hence
a single property for Fifth Amendment purposes. See,
e.g., Giovanella v. Conservation Commission of Ash-
land, 857 N.E.2d 451, 457-458 (Mass. 2006) (reviewing
the cases holding that contiguous properties constitute

a single property).

Indeed, treating state lot lines as determinative
or presumptively determinative of the “property” for
Fifth Amendment purposes could result in compensa-
tion for less burdened owners and no compensation for
more burdened owners. Consider two cases — (1) an in-
vestor who buys a ten-acre lot near a river and (2) an
investor who buys two contiguous five-acre lots near a
river. Imagine that new regulatory restrictions regard-
ing wetlands are enacted that prevent the owner of the
ten-acre lot from building on nine of the ten acres,
whereas new regulatory restrictions regarding wet-
lands prevent the owner of the contiguous five-acre
lots from building on one of the five-acre lots but allows
building on the entirety of the other five-acre lot.
In a regime where lot lines are determinative or

15

presumptively determinative of what constitutes a
Fifth Amendment property, the owner of the two five-
acre lots has a much stronger claim for a Lucas-style
Taking of the property qua a single five-acre lot than
does the owner of the ten-acre lot even though the
owner of the ten-acre lot was actually burdened with a
more extensive development restriction.

State boundary lines are surely drawn for a vari-
ety of reasons, but nowhere, we believe, are they drawn
by state or local legislative bodies, planning commis-
sions or subdivision developers themselves with the
ideas of fairness and justice in mind that are at the
heart of the Fifth Amendment Takings Clause. State
lot lines are not intended to capture the line between
assets and resources that are or can be privately
owned and those that are publicly owned and/or sub-
ject to special public claims. State boundary lines are
not drawn to approximate or limit the scope of distinct
investments by a particular investor in land. Nor do
such lines necessarily correlate in any fashion with the
burden of regu! »tory restrictions on land development.
They are “legalistic distinctions,” Keystone, 480 U.S. at
499, that should not determine when a Taking has or
has not occurred.

16

C. Giving State Boundary Lines Determinative
or Presumptively Determinative Weight Would
Encourage Socially Unproductive Gaming
On the Part of Investors
Takings law — as does all law — helps shape private

conduct. In particular, we might anticipate that, as
rational economic actors, land developers will try to
maximize their ability to demand and recover com-
pensation from the government should regulatory
restrictions be adopted that would limit their develop-
ment plans in particular investments. Even if not all
investors in land are driven by profit maximization
goals, surely many, and many of the largest, are.

If this Court were to suggest or hold that state
boundary lines are determinative or presumptively de-
terminative of property definitions for Fifth Amend-
ment Takings purposes, then land developers and even
ordinary owners would have a strong incentive to con-
figure and reconfigure their land holdings into smaller
lots so that they could demand compensation when-
ever a regulatory restriction blocked development on a
single lot. A subdivision developer of an area near wet-
lands, for example, might choose to carve out several
separate lots that contained only wetlands so that, if a
Clean Water Act Section 404 permit to fill the wetlands
were denied, the developer could argue that he had lost
100% of the value of several properties and was enti-
tled to compensation under the Lucas test. Because
possible regulation is often in the air — under scientific
and political debate — regarding environmentally sen-
sitive areas for years before it is actually promulgated

17

and implemented, investors could anticipate portions
of their land holdings that might be subject to future
regulation and configure them into very small lots un-
der state law so that regulators would be deterred from
ever acting to protect the environmentally sensitive ar-
eas and, if regulators did act, the investors would be
well-positioned to argue that they were entitled to
compensation under the Lucas test.

Wisconsin law itself suggests how easily a subdi-
vision developer may be able to determine the number
and configuration of lots. Wisconsin law clearly antici-
pates that the developer — the subdivider, in the par-
lance of the statute — will submit its version of the
platting for review and approval. Wis. Stat. Section
236.11. The approval need not be given by a local leg-
islative body but rather can be delegated to “a planning
committee or commission of the approving governing
body.” Wis. Stat. Section 236.10. Wis. Stat. Section
236.40 also allows an individual subdivision owner or
lot owner to seek replatting or alteration of plat lines.
Although public notice and court approval is required
for replatting, there are no statutory restrictions on
what a court in its discretion may approve except for
areas currently dedicated to the public.

In Lucas, Justice Stevens expressed concern about
gaming actions involving lot lines on the part of land-
owners, suggesting that “investors will manipulate the
relevant property interests, giving the Court’s [Lucas]
ruling [regarding 100% diminutions in value] sweep-
ing effect.” But that has not happened to any widely
noted extent, in large part one might suppose because

18

courts have not treated state boundary lines as deter-
minative or presumptively determinative of what con-
stitutes a property for Fifth Amendment purposes and
hence have not rewarded and encouraged manipula-
tion on the part of investors. A holding by this Court
that gave state boundary lines determinative or pre-
sumptively determinative effect would facilitate the
manipulation of the sort described by Justice Stevens.

In sum, treating state boundary lines as determi-
native or presumptively would encourage investors in
and owners of land to convert many situations that
would be analyzed under the Penn Central ad hoc bal-
ancing, less than 100% diminution in value framework
into situations analyzed under the Lucas, presumptive
Taking, 100% diminution in value framework. It would
expand the scope of the Lucas test beyond the quite
limited swath of cases which this Court has explained
was its intended scope. Lucas, 505 U.S. at 1018 (“And
the functional basis for permitting the government, by
regulation, to affect property values without compen-
sation — that ‘Government hardly could go on if to some
extent values incident to property could not be di-
minished without paying for every such change in the
general law,’ ... does not apply to the relatively rare
situations where the government has deprived a land-
owner of all economically beneficial uses”); Tuhoe-
Sierra, 535 U.S. at 1438 (explaining that “our holding
lin Lucas] was limited to ‘the extraordinary circum-
stance when no productive or economically beneficial
use of land is permitted.’”).

19

Elevating the role of state law boundaries in de-
fining Fifth Amendment property could vastly expand
the compensation guarantee under the Fifth Amend-
ment to the point that, with respect to some kinds of
socially valuable land regulation, government could
hardly go on. Effective land use regulation that fairly
balances public and private needs and objectives would
be undermined by according state boundary lines de-
terminative or presumptively determinative weight
with regard to what constitutes “property” for purposes
of the Fifth Amendment. See Tahoe-Sierra, 535 U.S. at
339-341 (explaining that a rule that held temporary
moratoria to be Takings would discourage regulators’
attempts to address environmental problems in a way
that treated landowners evenhandedly).

¢

CONCLUSION

In sum, state boundary lines between lots do not
and should not define or presumptively define the con-
tours of the “property” for purposes of the Fifth Amend-
ment Takings Clause. The decision of the Wisconsin
Court of Appeals should be affirmed.

Respectfully submitted,

Davip A. DANA

Counsel of Record

NORTHWESTERN PRITZKER SCHOOL OF LAW
357 East Chicago Ave.

Chicago, IL 60611

(312) 503-0240
d-dana@law.northwestern.edu

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385016_0607%3A26. Public record. Not legal advice.
