August 2, 2013

In a win for developers and other regulated entities, the US Supreme Court held that the government's "extortionate demands for property in the land-use permitting context" violated the constitution's protection against the government taking property without just compensation.

In the case of Koontz v. St. Johns River Water Management District, No. 11-1447  (June 25, 2013), the Court held that the government cannot condition approval of a land-use permit on an owner giving up his property unless there is an "essential nexus and rough proportionality" between the government's demand and the effects of the proposed land use. The Court stated that any permit condition must possess such a "nexus and rough proportionality", regardless of whether the land-use permit is approved or denied and regardless of whether the "property" sought by the government is money.

To read the full Alert, click here.