Tahoe-Sierra Preservation Council Inc. v. Tahoe Regional Planning Council

535 U.S. 302 (2002)

  • Lake Tahoe Basin falls within both California and Nevada. Those two states created the Tahoe Regional Planning Agency (TRPA) to plan the development of the basin. Between 1981-1984 the TRPA issued two moratoriums on virtually all residential development within the basin.
    • The first moratorium lasted roughly 24 months and the second lasted about 8 months until the TRPA had adopted its comprehensive land-use plan.
  • Tahoe-Sierra are a group of persons who own real estate within the jurisdiction of the TRPA and were therefore subject to the moratoria. Tahoe-Sierra sued on the grounds that the moratoria were in fact takings, and were barred under the 5th Amendment without just compensation.
  • The Trial Court found for Tahoe-Sierra.  TRPA appealed.
    • The Trial Court found that even though the land retained some value during the period of the moratoria the landowners were, for a time, completely deprived of any economic use of their land, therefore a taking had occurred.
  • The Appellate court reversed.  Tahoe-Sierra appealed.
    • The Appellate Court found that since the moratoria had only temporary impact on the landowners property no taking occurred and no compensation was required.
  • The US Supreme Court affirmed the Appellate Court and said that the moratoria was not a taking.
    • The US Supreme Court agreed with the Appellate Court's finding that a fee simple estate cannot be rendered valueless by a temporary prohibition on the economic use, because the property will recover value as soon as the prohibition is lifted.
    • Similar to Penn Central Transportation Company v. City of New York, this goes to the issue of conceptual severance.  You can't argue that you've lost 100% of a part of the value of the property.
    • In order to be considered a taking, you generally have to argue that you've lost 100% of the value of the property.
      • See Lucas v. South Carolina Coastal Council.