SCOTUS Missed Its Mark in 'Murr v. Wisconsin'
Last term in "Murr v. Wisconsin," the U.S. Supreme Court attempted, without real success, to answer the question of what is the relevant parcel or total property interest to be considered in weighing whether a regulation affecting part of it has gone “too far” so as to effect a compensable taking under the Fifth Amendment.
February 01, 2018 at 03:55 PM
5 minute read
Last term in Murr v. Wisconsin, the U.S. Supreme Court attempted, without real success, to answer the question of what is the relevant parcel or total property interest to be considered in weighing whether a regulation affecting part of it has gone “too far” so as to effect a compensable taking under the Fifth Amendment.
The decision is not all that helpful to any of the stakeholders, who are principally the pro-property rights people on one side and defenders of government regulation on the other. It is unfortunate that the Supreme Court was unable to elucidate better decision-making criteria.
The case was a good one for illustrating the problem. The Murrs, husband and wife, purchased a lot in 1960 on the St. Croix River in Wisconsin and built a cottage on it that the family has enjoyed since. In 1961, they transferred ownership of that lot to Mr. Murr's plumbing business. In 1963, they bought an abutting lot in their own name. They purchased the lot for investment purposes, but never sold or developed it.
In 1975, the local zoning was amended to require lots to have a “net project area” of one acre. Each of the Murr lots has only about half an acre of buildable land. In one fell swoop these changes in the regulations rendered both previously legal lots nonconforming.
In 1994, the Murrs conveyed both lots to their children. Nonconforming lots like the one with the cottage on it can continue on indefinitely, but when the children wanted to sell the undeveloped lot to fund improvements to the cottage in 2004, they discovered they could not because it was legally undevelopable, undersized as a consequence of the zoning amendment.
So, quite logically, they sought variances from these provisions, arguing that when the new restrictive regulations were enacted the lots were still in separate ownership. The St. Croix County Board of Adjustment denied the variances. The Murr children sued in state court and lost at trial and lost on appeal. The U.S. Supreme Court granted review to consider whether the takings claim should consider the loss of value to just the undeveloped lot, or whether it should consider both lots as the “parcel as a whole.”
What is the relevant parcel matters, critically. If the second lot is considered alone, the Murrs win. They could not sell it, and could not develop it separately from the first lot. That kind of economic wipeout is almost always a taking. St. Croix County would have to write a check.
But if that denominator is the two lots combined, they lose. Together, the two lots provide room for the larger house and extra river frontage that most buyers want. So their value sold together is only 10 percent less than their value sold separately as two buildable lots. A 10 percent loss of value, especially given the good of preserving a wild and scenic river, does not reach the level of a taking. No check from St. Croix County.
Justice Anthony Kennedy wrote for the court, joined by Justices Ruth Bader Ginsburg, Stephen Breyer, Sonia Sotomayor and Elena Kagan. The chief justice, joined by Justices Clarence Thomas and Samuel Alito dissented, and Thomas filed a separate dissent. The court affirmed the determination that the relevant parcel for purposes of the takings analysis was the two merged lots combined, and not each considered separately.
The decision misses the mark. It's true that almost every state court in the country would have held, with the Wisconsin and Supreme Court, that the two lots should be considered together. But the court listed only three factors in deciding whether landowners would have “reasonable expectations” that their “holdings would be treated as one parcel, or, instead, as separate tracts.” The factors, the court wrote, “include the treatment of the land under state and local law; the physical characteristics of the land; and the prospective value of the regulated land.”
The court ignored two important additional factors that have been applied by almost every lower court to consider the denominator question: What was the owners' intent with respect to the land, and how had the owners used the land? Here, the Murr parents originally bought the land for investment purposes. The 1975 regulation wiped out its investment value. But they held the lot for 13 years before that regulation, and indeed for 41 years total, before anyone even tried to sell it. In the meantime, they played volleyball on the lot, parked and barbecued there, and camped and swam on its beaches. After treating the undeveloped lot as essentially a backyard to their developed one for 41 years, do they still have a reasonable expectation to have it treated separately? But without considering their actual use of the land, can we fully evaluate what their reasonable expectations might be?
Takings law defies bright-line rules. It is the nature of the beast given the many factors that go into buying, developing, using, and selling real estate, a type of property that is unique enough that the remedy of specific performance is available in contests over ownership and possession.
Some of the blame for leaving the court without much to work with can be pinned on the attorneys for the state and the interest-group advocates representing the plaintiffs. They took extreme positions and the court had to muddle through an essentially uncharted middle ground. Failing to recognize the central importance of intent and overlooking a dozen critical factors already developed by state courts might be claimed by those on the government side as a victory, but really the decision leaves no one better off.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllThe Stormy Daniels 'Hush Money' Trial: Donald Trump Should Be Very Worried
7 minute readShining a Light on Opposing Hate: The Palestinian Protesters Who Defended New Haven's Menorah
6 minute readTrending Stories
- 1We the People?
- 2New York-Based Skadden Team Joins White & Case Group in Mexico City for Citigroup Demerger
- 3No Two Wildfires Alike: Lawyers Take Different Legal Strategies in California
- 4Poop-Themed Dog Toy OK as Parody, but Still Tarnished Jack Daniel’s Brand, Court Says
- 5Meet the New President of NY's Association of Trial Court Jurists
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250