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Music: Alberta Hunter Amtrak Blues (1980)
Now On Course PageNow On Course PageOffice Hours Thru 12/2
Bank of Old XQ3sSlides from Exam Workshop Write-Up of Bad Ghen Brief
Miller v. SchoeneContinued
FINAL EXAM QUESTION 3Mapping Chart
Case Gov’t Act Affected Landowner
Intended Beneficiaries
Hadacheck LA Bans Brickyards
Brickyard Os Neighbors
Mahon PA Bans Undermining
Coal Companies
Surface Os
“Airspace Solution”
Rights to Empty Gas Pools
Surface Os Gas Companies
Miller VA Cedar Rust Act
Cedar Tree Os
Apple Orchard Os
Miller v. Schoene : Introduction Procedural
Posture• Order from state official to cut trees • Appeal to State Circuit Court, which affirmed order;
required payment of cost of removal• Virginia SCt aff’d: No violation of U.S. Constitution• Writ of Error to US SCt (same as in Hadacheck &
Mahon)
Miller under Prior AuthoritiesDQ3.23 (Uranium)
• Miller Easy Under Sax: No Taking– Paradigm Arbiter Case: Arbitration betw:
• Apple Growers (One Type of Land Use)• Cedar Growers (Conflicting Type of Land Use)
– Controlling Spillover Effects of Growing Cedars
Miller under Prior AuthoritiesDQ3.23 (Uranium)
• Miller Under Epstein:– Preventing Public Nuisance?:
• Likely. Can View Cedars as “Noxious Use” Harming Others• BUT: Maybe Harm Not Widespread or to General Public
– Implicit Compensation? No. • Group Burdened Different from Group Getting Benefits• Owners with Both Trees Probably Not Getting Benefits b/c
Will Cut Down Cedars Themselves if Apples Valuable
Miller under Prior AuthoritiesDQ3.23 (Uranium)
• Miller Under Mahon & Hadacheck: Epstein Analysis Resolves Some Qs – Preventing Public Nuisance so OK?: Likely, Not Certain– Reciprocity/Implicit Compensation? No.
Miller under Prior AuthoritiesDQ3.23 (Uranium)
Other Qs Under Mahon & Hadacheck:•Check Loss in Value: Taking if “Too Far”
– Loss in Value of Whole Lot? • Big loss unlikely unless “10,000 Cedars”• Could Compensate Rare Parcel w Big Loss
– cf. Euclid v. Nectow
– Loss in Value of Cedar Trees? • Os keep wood, so not reduced to nothing, • But cedar wood not very valuable, so some loss
– Raises Denominator Q Again; We’ll Revisit w P.C.
Miller v. SchoeneDQ3.24: Addressing Eubank
(Uranium) • Local Regulation: Land use decision required if
requested by 2/3 of neighbors• US SCt in Eubank says Unconstitutional
– Problem appears to be having some property owners dictate rules for others (w no mediation by state)
– Pretty clear possibility of unfair/arbitrary result
• Why did pet’r say Eubank is relevant to Miller?
Miller v. SchoeneDQ3.24: Addressing Eubank
(Uranium) • Land use decision required if requested by 2/3 of
neighbors; US SCt in Eubank says Unconstitutional• Pet’r argues Eubank relevant b/c gov’t action
(cutting trees) triggered by request of neighbors
• What was Court’s Response?
Miller v. SchoeneDQ3.24: Addressing Eubank
(Uranium) • Land use decision required if requested by 2/3 of
neighbors; US SCt in Eubank says Unconstitutional
• Pet’r argues Eubank relevant b/c gov’t action (cutting trees) triggered by request of neighbors
• SCt: In Miller, challenged decision not made by neighbors nor required b/c of their request– Gov’t Official Decides Independently– Decision Subject to Judicial Review– Looks Like Adequate Process; Not Arbitrary
Miller v. SchoeneDQ3.24: Addressing Eubank
(Uranium) • Land use decision required if requested by 2/3 of
neighbors; US SCt in Eubank says Unconstitutional• Pet’r argues Eubank relevant b/c gov’t action (cutting
trees) triggered by request of neighbors• SCt: Decision in Miller differs; made by Gov’t official
subject to judicial review• As in Hadacheck, arbitrariness claim made &
rejected. (Reminder: Not our issue!!)
Questions on Questions on EubankEubank Issues? Issues?
Miller v. Schoene: Key Language (Compare with
Sax)
Miller contains important language that seems to describe the
government’s role as “Arbiter” (in Sax’s terms) and its Constitutional
implications.
Miller v. Schoene: Key Language (Compare with
Sax)Top p.124: “… the state was under the necessity of making a choice between the preservation of one class of property and that of the other wherever both existed in dangerous proximity. …
Miller v. Schoene: Key Language (Compare with
Sax)Top p.124: … It would have been none the less a choice if, instead of enacting the present statute, the state, by doing nothing, had permitted serious injury to the apple orchards within its borders to go on unchecked….
Miller v. Schoene: Key Language (Compare with
Sax)Top p.124: … When forced to such a choice the state does not exceed its constitutional powers by deciding upon the destruction of one class of property in order to save another which, in the judgment of the legislature, is of greater value to the public.”
Miller v. Schoene: Key Language (Compare with
Sax)Passage on top of p.124 means:• Choice between two conflicting land uses (= Sax
arbiter case) is OK even if state has a very strong interest in choosing one over the other.
• Can’t be true that the better the state’s reasons, the more likely it has to pay compensation.
Miller v. Schoene: Key Language (Compare with
Sax)Top p.124: … When forced to such a choice the state does not exceed its constitutional powers by deciding upon the destruction of one class of property in order to save another which, in the judgment of the legislature, is of greater value to the public.”
Miller v. Schoene: Key Language (Compare with
Sax)Passage on top of p.124 means:• Court allows state legislature to make this
choice. • Court does not say it is the job of federal
courts to make it.
Miller v. Schoene: Key Language (Compare with
Sax)Top p.124: “… the state was under the necessity of making a choice between the preservation of one class of property and that of the other wherever both existed in dangerous proximity. …
–NOT between any two private interests, but two “classes” of private property (again Sax arbiter)
–NOT between public and private interests
Miller v. Schoene: Holding & Rules
DQ3.25 (Uranium) What rules can you derive from Miller?
•Can choose between one kind of private property and another in public interest .•In making this choice, can prefer the private interest supported by greater public interest even to the extent of destruction of the other (can take value to zero).
Miller v. Schoene: Holding & Rules
DQ3.25 (Uranium) What rules can you derive from Miller?
•Can choose between one kind of private property and another in public interest .•In making this choice, can prefer the private interest supported by greater public interest even to the extent of destruction of the other (can take value to zero).•Very Important: Case does not address a choice between a purely public interest on one side and a purely private interest on the other
Miller v. Schoene: Holding & Rules
DQ3.25 (Uranium) Effect on meaning of Hadacheck?
•Explicitly reaffirms Hadacheck •Shouldn’t be technical in defining “nuisance” (suggests SCt thinks this is “Publ. Nuis.” case)•Seems to characterize Hadacheck as a destruction-of-property case•Re Kelso: AllowedAllowed to take value to zero where choosing one kind of property over another
Miller v. Schoene: Holding & Rules
DQ3.25 (Uranium) Effect on meaning of Mahon?
•Clarifies Mahon didn’t overrule Hadacheck•Reciprocity not necessary; none here•Public Safety issue not necessary; none here
•Allowed to take value to zero where choosing one kind of property over another
•Maybe suggests don’t look at smallest possible unit of property (trees)
Hadacheck + Mahon + Miller
“[W]here the public interest is involved, preferment of that interest over the property interest of the individual, to the extent even of its destruction, is one of the distinguishing characteristics of every exercise of the police power which affects property.” (Miller citing Hadacheck)
Unclear how this fits with Mahon, which Miller ignores entirely.
Miller v. Schoene: Holding & Rules
DQ3.25 (Uranium) Effect on meaning of Mahon?
•Possible Very Broad Reading of Miller: Mahon only prohibits destruction of property rights that are explicitly contracted for.
BUT Helpful to Keep in Mind: Both Holmes & Brandeis Join
Miller
Questions on
Miller v. Schoene?
Relevant Considerations in Takings Cases
Survey About What Facts Matter•Ban on Intended Use (90%)
•% Reduction in Value (88%): Mahon (Generally); Mahon•$$$ Amount Reduction (59%) & Epstein (Impl. Comp.)
•Purpose of Regulation (63%) = Hadacheck (Police Powers); Sax & Miller (Enterpriser v. Arbiter; Stopping Spillovers); Mahon & Epstein & Miller (Stopping Public Nuisance)
•$$$ Amount Left (56%) = Kelso (maybe Hadacheck); Mahon (Zero Value)•Return on Investment (39%)
Miller v. Schoene: Florida Footnote
• Citrus Canker is Disease That Spreads Among Different Kinds of Citrus Trees– In Florida, Canker Threatens Giant
Citrus Industry– If State Finds, Take All Citrus Trees w/in
Certain Distance– Right in My Own Backyard
Miller v. Schoene: Florida Footnote
• Citrus Canker is Disease That Spreads Among Different Kinds of Citrus Trees– In Florida, Canker Threatens Giant Citrus
Industry– If State Finds, Take All Citrus Trees w/in
Certain Distance
• State Pays Limited Compensation – Coupon for Non-Citrus Trees – Political Decision – Miller: Compensation Not Required by
US Const
Elements Insight: Elements Insight: A New View of an Ancient A New View of an Ancient
BattleBattleAPPLES ORANGES
Other 1920’s Cases
Village of Euclid v. Ambler Realty Co. (1926)
& Nectow v. City of CambridgeNectow v. City of Cambridge
(1928)(1928)
DQ3.26DQ3.26
DQ3.26: 1920s CasesVillage of Euclid v. Ambler
Realty Co.Thrust of Euclid?
•Upholds facial validity (under police power) of modern comprehensive zoning scheme.•Reserves Q of whether zoning as applied to a particular parcel might be unconstitutional.
DQ3.26: 1920s Cases Village of Euclid v. Ambler
Realty Co.• Upholds facial validity (under police
power) of modern comprehensive zoning scheme.
Significance to line of cases we’ve read?
• Significant deference to legislative choices & line-drawing (in the abstract). Consistent w Miller. Key Language makes clear: That a line is hard to draw doesn’t make it impermissible.
DQ3.26: 1920s Cases Village of Euclid v. Ambler
Realty Co.Key Language re Deference to
Legislatures:
•Long Block Quote (bottom p.126): “[I]t may … happen that not only offensive or dangerous industries will be excluded, but those which are neither offensive nor dangerous will share the same fate. …
DQ3.26: 1920s Cases Village of Euclid v. Ambler
Realty Co.Key Language re Deference to
Legislatures:
•Long Block Quote (bottom p.126): “… But this … happens in respect of many practice‑forbidding laws which this court has upheld, although drawn in general terms so as to include individual cases that may turn out to be innocuous in themselves. The inclusion of a reasonable margin, to insure effective enforcement, will not put upon a law … the stamp of invalidity. …
DQ3.26: 1920s Cases Village of Euclid v. Ambler
Realty Co.Key Language re Deference to
Legislatures:
•Long Block Quote (bottom p.126): “… Such laws may also find their justification in the fact that, in some fields, the bad fades into the good by such insensible degrees that the two are not capable of being readily distinguished and separated in terms of legislation.”
DQ3.26: 1920s CasesNectow v. City of Cambridge
Thrust of Nectow?•Finds unconstitutional the application of a zoning scheme to a particular parcel. •Answers Q reserved in Euclid.
DQ3.26: 1920s Cases Nectow v. City of Cambridge
• Finds unconstitutional the application of a zoning scheme to a particular parcel.
Why was application unconstitutional?
• Factual findings in Nectow that application …a) Eliminated profitable use of lot *AND* b) Not in furtherance of police power
interests
DQ3.26: 1920s Cases Nectow v. City of Cambridge
• Finds unconstitutional the application of a zoning scheme to a particular parcel where a) Eliminated profitable use of lot *AND* b) Not in furtherance of police power
interests
Significance to line of cases we’ve read?
• Pretty Trivial Significance: Very Few Cases Where Both (a) and (b) True.
Other 1920’s Cases
Village of Euclid v. Village of Euclid v. Ambler Realty Co. Ambler Realty Co. (1926) (1926) &
Nectow v. City of Cambridge (1928)
Questions?
LOGISTICS
Final Classes (34-38)•Penn Central •Theorists: Michelman; Ackerman•Self-Quizzes Up Over Weekend to Help with Application of Michelman & DQ for Next Week
LOGISTICS
Final Classes (34-38)•Penn Central; Michelman; Ackerman•Review Problems:
– Each Day First 15 MinutesFirst 15 Minutes– Hard Unresolved Qs (One or More of Which Will Be
Part of Your Final Exam Q)– Best Arguments You Can See for Each Side for Each Side from
Authorities & Takings Policy
LOGISTICS
Final Classes (34-38)•Penn Central; Michelman; Ackerman•Review Problems (Each Day First 15 Minutes)First 15 Minutes)•Be Prepared Monday & Tuesday Be Prepared Monday & Tuesday
• All Four Panels Have Some ResponsibilityAll Four Panels Have Some Responsibility• Take Time Over Weekend to Prep & Create Accessible
Answers So You’ll Be Ready
Transition: 1920s Penn Central =
Alberta Hunter
(1895-1984)
•1910-54: Sang Professionally in US & 1910-54: Sang Professionally in US & EuropeEurope
• Lead in Original London Production of Showboat (music last class)
• Entertained Troops with USO (WWII & Korea)
Transition: 1920s Penn Central =
Alberta Hunter
(1895-1984)
•1954-77: Career as Nurse1954-77: Career as Nurse
• Invented High Sch. Diploma to get Nursing Degree
• Lied About Age to get Jobs in NY Hospitals
• Hospital Forced Her to Retire at “65” (in fact 81)
Transition: 1920s Penn Central =
Alberta Hunter
(1895-1984) •1978-84: Revived Singing Career1978-84: Revived Singing Career
• Singing in NY Jazz Clubs Media Sensation
• Recorded Three Albums; Many TV Appearances
• Toured Europe & South America; Sang at White House
• Working Until Just Before She Died
•FAJER RIFF: Baseball, Jazz, U.S. FAJER RIFF: Baseball, Jazz, U.S. Constitution: Improvisations on Constitution: Improvisations on Agreed-Upon RulesAgreed-Upon Rules
Penn Central Transportation Penn Central Transportation Co. v. City of New York (1978)Co. v. City of New York (1978)
DQ3.31 (OXYGEN)DQ3.31 (OXYGEN)
Penn Central: IntroductionDQ3.31 (Oxygen)
• Gov’t action at issue? NYC Historic Preservation Ordinance: Owners of designated historical properties must:– keep in good repair– preserve exterior use– get permission for structural change
Penn Central: IntroductionDQ3.31 (Oxygen)
• Gov’t action? NYC Historic Preservation Ordinance
• Purpose?– Legitimate? (Connected to HSWM?)– Action Rationally Related to Purpose?
Penn Central: IntroductionDQ3.31 (Oxygen)
• Gov’t action? NYC Historic Preservation Ordinance• Rational to Believe that Saving Historic Sites Furthers
Welfare by Increasing Civic Pride, Attracting Tourist $$$• Use of Affected Lots
– Need gov’t approval before structural changes; must maintain property properly.
– Can do anything you were doing before designation; can do structural changes if approved
Penn Central: IntroductionDQ3.31 (Oxygen)
• NYC Designates Grand Central Station as Historic site. Penn Central (RR) owns.– RR wants 55-story tower built above station. – Landmark Board rejects 2 versions of tower on
aesthetic grounds.
• Claimed Harm to RR? • Offsetting Financial Considerations?
Penn Central: IntroductionDQ3.31 (Oxygen)
• Rejection of Tower Above Grand Central Stn.• Loss: About $2 million/yr in rent (in 1968 $$)• Offsetting Financial Considerations:
– Tax Breaks– Transferable Development Rights (TDRs)– Conceded that RR makes “Reasonable Rate of Return”
on Grand Central Station parcel.
QUESTIONS ON FACTS?
FINAL EXAM QUESTION 3
Case Gov’t Act Affected Landowner
Intended Beneficiaries
Hadacheck LA Bans Brickyards
Brickyard Os Neighbors
Mahon PA Bans Undermining
Coal Cos. Surface Os
Miller VA Cedar Rust Act
Cedar Tree Os Apple Orchard Os
Penn Central
NYC Historic Preservation
Os of Historic Buildings
Tourist Biz; History Buffs
Takings Theorist #3: Frank Michelman
Today: DQ3.27-3.28 (me) DQ3.29 (radium)
Takings Theorist #3: Frank Michelman
Mon-Tues: Application of Theory
DQ3.30 (radium: apply to earlier cases & “airspace solution”)DQ 3.33 (oxygen: apply to P.C.)
Takings Theorists: Frank Michelman
DQ3.27-3.28
Michelman = Cost/Benefit Analysis
But not analysis of whether underlying gov’t regulation is a
good idea.
Takings Theorists: Frank Michelman DQ3.27-3.28
Michelman = Cost/Benefit Analysisof Decision Whether to Compensate
•Once state has decided to regulate, there’ll be winners & losers.
•Should you compensate the losers?
Takings Theorists: Frank Michelman DQ3.27-3.28
Michelman (MMN) = Cost/Benefit Analysis
of Decision Whether to Compensate
•Once state has decided to regulate, there’ll be winners & losers. Compensate losers if …
– Costs of Compensating less than– Costs of Not Compensating
• A Major Insight of MMN’s Work is: These Costs Exist
Takings Theorists: Frank Michelman DQ3.27-3.28
MMN = Cost/Benefit Analysisof Decision Whether to Compensate
•Once state has decided to regulate, there’ll be winners & losers. Compensate losers if …
– Costs of Compensating (= Settlement Costs) less than
– Costs of Not Compensating (= Demoralization Costs)
Takings Theorists: Frank Michelman DQ3.27-3.28
Cost of Compensating = Settlement Costs: Includes
•Cost of paying claimant & everyone like claimant& everyone like claimant– Remember decision to pay affects more than just the Remember decision to pay affects more than just the
case in front of court (you)case in front of court (you)
Takings Theorists: Frank Michelman DQ3.27-3.28
Cost of Compensating = Settlement Costs: Includes
•Cost of paying claimant & everyone like claimant& everyone like claimant•Costs of administering payment scheme
– Focus on costs of identifying; valuing; processing• E.g., Paying Off All Airspace Owners• E.g., Damages (Price-Fixing) = 8% per pair of blue jeans
purchased in Calif. For 10 Years
– Can dwarf actual payments.
Takings Theorists: Frank Michelman DQ3.27-3.28
Cost of Compensating = Settlement Costs: Likely Highest
When•Lots of claimants•Claims not same for each claimant and intangible or otherwise hard to value•E.g., Again, Paying Airspace Owners
Takings Theorists: Frank Michelman DQ3.27-3.28Cost of Not Compensating =
Demoralization Costs: Includes•Upset to losing party & everyone similar•Upset to sympathizers•We Care b/c “Upset” Can Manifest As …
– Disincentives to future investment– Lack of faith in gov’t & resulting behavior
(refusal to pay taxes or to obey other laws)
Takings Theorists: Frank Michelman DQ3.27-3.28
Demoralization Costs: Focus on Likely Public Reaction
Takings Theorists: Frank Michelman DQ3.27-3.28Cost of Not Compensating =
Demoralization Costs: Likely Highest When
•Many people view gov’t act as unfair/arbitrary•Relatively few people bear very high burdens not seen as relating to their own behavior
– Typical of Very Repressive Regimes Elsewhere to Deliberately Demoralize People This Way
Takings Theorists: Frank Michelman DQ3.27-3.28
MMN = Cost/Benefit Analysisof Decision Whether to Compensate
•Do Rough Comparison of Settlement Costs (SC) & Demoralization Costs (DC)
– If SC>DC, no compensation (often widely dispersed small losses)
– If DC>SC, pay compensation (often small group of losers viewed as unfairly burdened)
Takings Theorists: Frank Michelman DQ3.27-3.28MMN = Cost/Benefit Analysis
of Decision Whether to Compensate
•Once state has decided to regulate, there’ll be winners & losers. Compensate losers if …
– Costs of Compensating Costs of Compensating (= Settlement Costs (= Settlement Costs = SC)= SC)
LESS THAN– Costs of Not Compensating Costs of Not Compensating (= (=
Demoralization Costs = DC)Demoralization Costs = DC)
QUESTIONS?
Takings Theorists: Frank Michelman DQ3.27-3.28
Role of Efficiency Gains•Efficiency Gains are the net benefits of implementing the regulation in question.
•Result of cost/benefit analysis legislature should have done in order to decide to adopt the regulation
Takings Theorists: Frank Michelman DQ3.27-3.28
• Efficiency Gains = net benefits of implementing regulation in question. E.g., in Hadacheck:
– Gains (Harm Prevented) b/c no brickyards (health; property values) LESS
– Costs of Regulation (Harm to brick industry from having to shut down and relocate; harm from increase in cost of bricks; costs of implementation and enforcement)
Takings Theorists: Frank Michelman DQ3.27-3.28
• Efficiency Gains = net benefits of implementing regulation in question. E.g., in Miller:
– Gains (Harm Prevented) to apple orchards & state economy b/c cedar rust limited LESS
– Costs of Regulation (Harm to cedar owners & neighbors; costs of implementation and enforcement)
Takings Theorists: Frank Michelman DQ3.27-3.28
Role of Efficiency Gains•Efficiency Gains are the net benefits of implementing the regulation in question.
•If Efficiency “Gains” are negative, If Efficiency “Gains” are negative, legislature shouldn’t pass regulation legislature shouldn’t pass regulation at all. at all.
Takings Theorists: Frank Michelman DQ3.27-3.28Role of Efficiency Gains
•Efficiency Gains are net benefits of implement-ing the regulation in question. If negative, legislature shouldn’t pass regulation at all. •ImportantImportant: Ordinarily, not part of : Ordinarily, not part of Takings analysis.Takings analysis.
•Under Under Euclid & MillerEuclid & Miller, assessing , assessing efficiency gains is job for state efficiency gains is job for state legislature, not fed’l court.legislature, not fed’l court.