THOMAS MAYO
When the Supreme Court handed down its opinions in the Pennsylvania abortion case,
something was lost: the fact that the big story on that last day of the 1991 term was the
court's opinion in a (yawn) land use case.
Granted, the abortion case made great copy. But what really had changed when the hue
and cry over Casey was over? After Webster, the court had a slim 5-4 majority in favor of
retaining the basic principles of Roe vs. Wade. After Casey: ditto. After Webster, the
court's "strict scrutiny' of state restrictions on abortion choice seemed to be
replaced by a test that looks for "undue burdens' on the right to choose. After
Casey: ditto. And after Webster, it looked as though the abortion debate had mostly
shifted to the state legislatures, which would have broad but not unlimited discretion to
add hurdles and hassles to the abortion rights of women. After Casey: ditto.
In the other case handed down the same day as Casey, however, the court drastically
altered the balance of power between business forces and land developers, on the one hand,
and governmental land use and environmental regulators on the other. The case -- Lucas vs.
South Carolina Coastal Council -- involved Mr. Lucas' purchase of South Carolina
beachfront property for nearly $1 million in 1986.
In 1988, before Mr. Lucas could build and sell single-family homes on his property, the
South Carolina Legislature passed a beachfront preservation act that declared the beaches
and dunes of South Carolina to be "critical areas' that might be endangered by
development. The result of overdevelopment could be the loss of property and even life in
the event of another storm as devastating as 1989's Hurricane Hugo. Pursuant to the
statute, the Coastal Council evaluated the suitability of Mr. Lucas' property for
development and denied him permission to build.
The U.S. Supreme Court held (contrary to the South Carolina Supreme Court) that the
state's prohibition was total deprivation of all economic value of the land for which the
state would have to pay, unless the buildings Mr. Lucas proposed would be unlawful --
nuisances, for example -- in common law. In reaching this conclusion, the court either
mangled or ignored the better part of a century of its own prior holdings that rejected
such a categorical approach to determining when a governmental "taking' had occurred
for which "just compensation' had to be paid under the Fifth and Fourteenth
amendments to the Constitution.
The court's new rule is wacky for lots of technical reasons that are well described by
the dissenting opinions of Justices Harry Blackmun and John Paul Stevens. Two points,
however, deserve special mention. The first is that the effect of the court's holding
undoubtedly will be to encourage landowners and developers to challenge environmental and
land-use regulations that reduce the value of land by 99 percent, and 95 percent, and so
on down. It will be difficult for some courts to resist the suggestion that a rule that
gives a plaintiff like Mr. Lucas 100 percent of the value he has lost is arbitrary and
capricious when it gives nothing to a neighbor whose property has lost 99 percent of its
value. The chilling effect on regulators will be enormous.
Second, by creating an exception to the rule requiring payment for land uses that would
be prohibited by the common law, the court fell prey to two fallacies. The common law is
the law judges make (or "find,' depending upon your judicial philosophy) out of
earlier cases, unaided by legislation or regulations. Many rules of tort, contract and
property law are examples of "the common law.' The court' s exception seems to favor
this judge-made common law over the law created by legislatures, a distinction that the
court itself has repeatedly rejected over the past century.
Stranger still, the same four justices who dissented in the Casey case combined to form
the core of the majority in the Lucas case. These justices -- who profess such faith in
the ability of state legislatures to deal equitably and effectively with the agonizing
question of abortion -- joined in an opinion in Lucas that is profoundly distrustful of
those same legislators when it comes to balancing the environmental needs of the states
against the property interests of landowners.
Maybe it's a good thing the court's summer recess came when it did. The justices need a
rest.
Tom Mayo is an associate professor of law at Southern Methodist University and is of
counsel to the Dallas law firm of Haynes and Boone.
© 1992 The Dallas Morning News All Rights Reserved
Thomas Mayo, Key ruling is overshadowed., 07-09-1992, pp 25A.