Also known as: actual takings · physical taking
Written by attorneys — see sources below.
A physical appropriation of private property by the government that requires just compensation under the Takings Clause. The appropriation occurs when the government seizes title, possession, or a recurring right of access to the property, even if the invasion is temporary or intermittent.
Artemis Logistics operates a freight depot. A port authority rule grants environmental organizers recurring access to the secure yards for two hours every other day. The organizers enter the property on schedule for several months. The rule effects an actual taking because it appropriates a continuing right of physical invasion.
Ariana Azizi owns an apartment building. The city requires her to permit a cable company to install and maintain wires on the roof. The installation occupies a small portion of the structure permanently. The mandate constitutes an actual taking of the space occupied by the wires.
In 1970, Teleprompter Manhattan CATV Corp. obtained a permit from New York City to operate a cable television system in Manhattan. It entered into an agreement with the prior owner of a five-story apartment building at 303 West 105th Street to install cables on the roof in exchange for a flat fee of $50 per year. The installation included a cable slightly less than one-half inch in diameter and approximately 30 feet in length running along the roof about 18 inches above the surface. It also included directional taps measuring approximately 4 inches by 4 inches by 4 inches on the front and rear of the roof. Two large silver boxes were placed along the roof cables. Additional cable was extended another 4 to 6 feet. All components were attached by screws or nails penetrating the masonry at approximately two-foot intervals. In 1971, Jean Loretto purchased the building. At the time of purchase the cable installation was already in place as part of a larger network serving adjacent buildings, though Loretto did not discover its existence until after she took possession. Two years later Teleprompter connected a noncrossover line by dropping a cable down the front of the building to serve Loretto's own tenants. In 1973 the New York Legislature enacted section 828 of the Executive Law, effective January 1, 1973, which prohibited landlords from interfering with cable television installations on their property, barred landlords from demanding payment from tenants for permitting service, and limited any payment from a cable company to an amount the State Commission on Cable Television determined to be reasonable; the Commission later set the presumptive fee at a one-time $1 payment. In 1976 Loretto filed a class action against Teleprompter in New York Supreme Court on behalf of all owners of real property in the state on which Teleprompter had placed cable components, alleging trespass and a taking without just compensation and seeking damages and injunctive relief; the City of New York, which had granted Teleprompter an exclusive franchise for parts of Manhattan, intervened as a defendant. The Supreme Court, Special Term, granted summary judgment to Teleprompter and the city. The Appellate Division affirmed without opinion. The New York Court of Appeals upheld the statute. The Supreme Court of the United States noted probable jurisdiction.
View caseAustin Abbott manufactures refrigerators. A federal program compels him to deliver twenty-five percent of each month's output to a government reserve without immediate payment. The agency takes title and possession of the units. The required delivery amounts to an actual taking of the personal property.
Adam Anderson owns beachfront lots. A state statute prohibits all construction on the parcels. The ban leaves the land without any economically viable use. The restriction does not constitute an actual taking because it limits use rather than appropriating a physical interest in the property.
In 1986, petitioner David H. Lucas purchased two residential lots on the Isle of Palms in Charleston County, South Carolina, for $975,000. He intended to construct single-family homes on the parcels, which at the time were zoned for such use and required no building permit for development. No portion of the lots qualified as a critical area under then-existing coastal zone legislation. Subsequently, in 1988, the South Carolina Legislature enacted the Beachfront Management Act. The legislation established a baseline and prohibited construction of occupable improvements seaward of a line drawn 20 feet landward of that baseline, directly affecting Lucas's parcels by barring any permanent habitable structures. Lucas filed an action in the Court of Common Pleas alleging that the Act's restrictions effected a taking of his property without just compensation. Following a bench trial, the court determined that the prohibition rendered the lots valueless and ordered the state to pay just compensation in the amount of $1,232,387.50. The Supreme Court of South Carolina reversed the trial court's judgment. It accepted the legislature's findings that new construction threatened public resources and concluded that a regulation designed to prevent serious public harm could not constitute a taking. The United States Supreme Court granted certiorari to review the South Carolina Supreme Court's decision.
View caseAlliance Holdings owns an apartment complex. A city ordinance caps rents far below market levels. The owner retains title and possession but loses substantial economic return. The cap does not amount to an actual taking because it regulates use rather than appropriating the property itself.
In 1997, the State of Hawaii had a highly concentrated wholesale oil market due to its small size and isolation over 1,600 miles from the mainland, with only two refineries and six gasoline wholesalers operating in the state. Chevron U.S.A. Inc. was the largest refiner and marketer, controlling 60 percent of the in-state gasoline market and 30 percent of the wholesale market on Oahu. Gasoline was sold at retail through approximately 300 service stations, about half leased by oil companies to independent lessee-dealers. Chevron operated 64 such lessee-dealer stations under arrangements where it leased land, constructed stations, and leased them to dealers while setting wholesale prices and requiring supply contracts. In June 1997, the Hawaii Legislature enacted Act 257, which capped the rent oil companies could charge lessee-dealers at 15 percent of gross profits from gasoline sales plus 15 percent of other product sales, and imposed other restrictions on station ownership. Thirty days after enactment, Chevron filed suit in the United States District Court for the District of Hawaii against the Governor and Attorney General, challenging the rent cap. The parties stipulated that the cap would reduce aggregate rent on 11 of Chevron's stations by about $207,000 per year but allow increases on the remaining 53, potentially raising overall rental income by nearly $1.1 million annually, and that Chevron had not recovered station maintenance costs through rent alone over the past 20 years. The District Court granted summary judgment to Chevron. On appeal, the Ninth Circuit vacated the judgment and remanded the case. After a one-day bench trial featuring competing expert economists, the District Court entered judgment for Chevron. The Ninth Circuit affirmed, and the Supreme Court granted certiorari in 2004.
View caseAmber Alonzo owns a mobile home park. A city rule limits rent increases and restricts eviction of tenants. The owner keeps title and control of the land. The restrictions do not constitute an actual taking because they adjust economic relations without physical appropriation.
John K. Yee and Irene Yee own the Friendly Hills and Sunset Terrace Mobile Home Parks in Escondido, California. In 1988 the voters of Escondido approved Proposition K, a rent control ordinance that reset rents to 1986 levels and barred increases without city council approval after consideration of eleven enumerated factors such as the Consumer Price Index, comparable pad rents, capital improvements, property taxes, and operating expenses. A few months after the ordinance took effect the Yees filed suit in San Diego County Superior Court, alleging that the ordinance deprived them of all use and occupancy of their property and granted tenants and their successors the right to occupy it permanently; they sought six million dollars in damages, a declaratory judgment, and an injunction. The complaint was filed against the background of California's Mobilehome Residency Law, enacted in 1978, which restricts the grounds on which a park owner may terminate a tenancy, prohibits requiring removal of a mobile home upon sale, bars transfer fees, and prevents disapproval of a purchaser who can pay the rent. Eleven other park owners filed identical suits against the city; by stipulation the twelve cases were consolidated for appeal and submitted on the briefs and argument in the Yee case alone. The Superior Court sustained the city's demurrer and dismissed all complaints. The California Court of Appeal affirmed the dismissals. The California Supreme Court denied review. Eight of the park owners, including the Yees, petitioned for certiorari, which the United States Supreme Court granted in 1991 to address a conflict between the decision below and holdings of the Third and Ninth Circuits in similar mobile-home rent-control cases. The Yees' complaint and opposition to the demurrer relied on the Ninth Circuit's decision in Hall v. Santa Barbara. They asserted that the combined state and local measures transferred to tenants the right to occupy pads indefinitely at below-market rents while preventing park owners from selecting incoming tenants or changing the use of their land without extended notice.
View caseAn actual taking occurs when the government physically appropriates property or a right of access. A regulatory taking occurs when a restriction on use leaves the owner with no economically viable use or imposes burdens that require compensation under a balancing test. The distinction turns on whether the government seizes possession or merely limits how the owner may use the property.
Supporting sources
Yes. When a regulation grants third parties a recurring right to enter private property, even for limited hours on a fixed schedule, the government appropriates an easement-like interest. The recurring character of the invasion triggers per se treatment regardless of the brevity of each visit.
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No. When the government compels delivery of a specific portion of goods to a government-controlled reserve, the physical appropriation itself constitutes an actual taking. The owner need not show that the entire business has been rendered valueless.
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No. The government effects an actual taking when it takes title and possession of specific property. Retention of only a contingent interest in future sale proceeds does not convert the appropriation into a mere regulation.
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…that a permanent physical occupation, no matter how slight, effects a taking is wholly consistent with this principle. A physical taking entails a certain amount of "singling out." Consistent with this principle, physical occupations by third parties are more likely to effect takings than other physical occupations. Thus, a…