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US Supreme Court Issues RARE Real Estate Decision

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Real Estate Technology with http://www.medicalandspaconsulting.com

There was a little known Supreme Court decision that did not receive the same fanfare as some of the other cases before the Court. The recent property-rights ruling went in favor of landowners and land developers. The ruling could have far-reaching effects on how government handles property owners’ decisions that “cause wider harm or social burdens” on the community. The case, Koontz v. St. Johns River Management District, revolved around the property owner (Koontz)’s desire to develop about four acres of a 14.9-acre wetland property. When Koontz sought a permit for the development from the local water management district (St. Johns), he was told that he could choose either to develop only one acre or pay for contractors to make improvements to government-owned wetlands in the same watershed in exchange for a full permit. Koontz opted to take neither option and sued, saying that his property was essentially “taken for public use without just compensation” because he was not able to develop his land without agreeing to “extortionate demands.”

Paddy Deighan

 

Backed by the National Association of Home Builders, civil liberties groups, and property-rights advocacy groups, Koontz’ case spent 11 years working its way through the legal system. The Supreme Court ended up siding with Koontz, saying that the local watershed “impermissibly burden the right not to have property taken without just compensation” by creating a set of parameters around the receipt of the desired permit that prevented Koontz from using his own land for his own benefit. The vote was 5-4 in favor of Koontz, with Justice Alito writing in support of the decision that “land-use permit applicants are especially vulnerable to…coercion…because the government often has broad discretion to deny a permit that is worth far more than the property it would like to take” and that “government…may not leverage its legitimate interest in mitigation to pursue governmental ends that lack an essential nexus and rough proportionality to [social costs of the proposal]”.

 

Not surprisingly, many property owners are breathing a collective sigh of relief that their rights are being further defined and protected, but critics of the decision warn that the ruling sets a dangerous precedent since technically no physical thing was taken away from Koontz. Justice Kagan, who wrote the dissenting opinion on the case, said that the ruling “threatens to subject a vast array of land-use regulations….to heightened constitutional scrutiny” and “I would not embark on so unwise an adventure”.  Why an I am not surprised that Justice Kagan dissented on this.....

 

Paddy Deighan, J.D. Ph.D

http://www.homesavers.pro

Show All Comments Sort:
Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Paddy, add me to that collective sigh of relief. How fortunate property owners are that this property owner chose to battle for his rights.

Jun 29, 2013 12:38 AM
Linda Balades
Comfort Real Estate Services - Ventura, CA
Broker Associate

The gov reaches too far too often...this may be a good decision, however, if it goes like usual there will be something down the road that will change the decision...only time will tell...

Jun 29, 2013 01:00 AM
Kelly Barbus
Keller Williams Buffalo Northtowns - Buffalo, NY
Keller Williams Buffalo Northtowns
Thanks for for posting this! Its a shame this isn't headline news.
Jun 29, 2013 01:24 AM
Dinah Stallworth-Lewis
Priority Real Estate LLC - 318.332.8281 - Natchitoches, LA
NATCHITOCHES, LA HOMES FOR SALE

Thanks for the update.  Koontz is a hero for all of his efforts and determination.  This is great news for property owners in this same situation.   

Jun 29, 2013 01:42 AM
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Paddy. there are always two sides to every issue.  Thank you for presenting the winning side.

Jun 29, 2013 01:57 AM
Susan Haughton
Long and Foster REALTORS (703) 470-4545 - Alexandria, VA
Susan & Mindy Team...Honesty. Integrity. Results.

This is, indeed, great news, but no surprise at all you won't hear much about it in the mainstream media.  I'm sure many people have not heard this!

Jun 29, 2013 02:29 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Thanks for sharing with us this ruling.  Did not see it before on the news.

Jun 29, 2013 03:36 AM
Maureen Megowan
Remax Estate Properties - - Palos Verdes Estates, CA
Palos Verdes Real Estate Blog

Thanks for the info. It is good to see that private property rights are being strengthened.

Jun 29, 2013 05:27 AM
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Paddy, 

LOVE IT, government seems to be a little too far reaching.  I am so happy owners have a bit more protection for the properties and can't be coerced into selling. 

All the best, Michelle

Jun 29, 2013 05:36 AM
Gerard Gilbers
Higher Authority Markeing - Asheboro, NC
Your Marketing Master

Thanks for the post, this decision is a move in the right direction. I would like to see the public domain statute restricted. 

Jun 29, 2013 05:37 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

I have personal experience with restrictive land use regulations...some of it is good intentioned and well meaning...but a lot of it is equivalent to extortion

Jun 29, 2013 05:58 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Thanks so much for this.  I hadn't yet gotten to it.

I too am not surprised at the Kagan position.

What's the old saying, "One small step"??

Sadly, those 5-4 decisions show the tight rope on which we walk.

If Obama gets one more nomination, well. . . . . .

Jun 29, 2013 07:46 AM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

Lenn, the only consolation for me is that the two most likely to reture are two of the most liberal on the bench...the make-up of the Supreme Court was never mucvh of an issue for me because I will not be getting pregnant anytime soon and i am not a criminal...things haev changed and Supreme Court is critical now

Jun 29, 2013 07:58 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Associate Real Estate Broker

This is a small step in te opportunity for citizens to get control of their own lives back from an out of control government

Jun 29, 2013 09:34 AM
MichelleCherie Carr Crowe .Just Call. 408-252-8900
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

It will be interesting to see what happens next with this issue. Are other similar cases pending, do you know?

Jun 29, 2013 02:26 PM
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

You have to love it when the landowner literally holds his ground.....and wins !

Jun 29, 2013 07:27 PM
John F Muscarella
RIVER FARM PROPERTIES, LLC - Venice, FL
Broker/Owner, Venice, FL, Florida's Suncoast

Thanks for posting this Paddy.  Kudos for Koontz for hanging in there and keeping the govt. at bay.  Though 11 yrs. is quite a fight where many would give up.

Jun 29, 2013 08:10 PM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

I have to say I am surprised the landowner won the case.  And also I am surprised that the decision is 5-4.  That number is truly frightful.

Jun 29, 2013 10:14 PM
Paddy Deighan MBA JD PhD
http://www.medicalandspaconsulting.com - Vail, CO
Paddy Deighan J.D. Ph.D

Michelle, I am not aware of any other US Supreme Court decisions in real estate...it is rare that a real estate case would ever make it to the Supreme Court becuase there are rarely federal issues or basis of appeal to the USSC

Jun 30, 2013 06:38 AM
Debbie Cook
Long & Foster Real Estate, Inc - Silver Spring, MD
Silver Spring and Takoma Park Maryland Real Estate

Thanks for posting - I would have NEVER known about this except for your posting.  Sorry it wasn't headline news - it should have been!

Jun 30, 2013 10:16 PM