Court rejects Justice Department’s argument that landowners are only entitled to “incremental” compensation

WASHINGTON, DC and SARASOTA, FLA. – NOVEMBER 1, 2011 – Judge Mary Coster Williams of the US Court of Federal Claims in Washington, DC, yesterday issued a landmark decision in a case involving several hundred Sarasota County property owners. On October 31, 2011, Judge Williams ruled in favor of these Sarasota landowners and denied the US Justice Department’s argument that the federal government needed to only pay these Sarasota landowners nominal compensation for the land the federal government took to build the Legacy Trail.

Two years ago Judge Williams ruled that the federal government had violated the United States Constitution when it took property owned by several hundred Sarasota citizens’ property. The federal government issued an order establishing the Legacy Trail. Judge Williams ordered the government to pay these landowners “just compensation” for that property which the government had taken. Under Florida law these owners had the right to unencumbered use and possession of their property. But the federal Trails Act created a 100 foot-wide public recreational trail that now runs across these landowner’s property. For most of the property owners, this took a significant portion of their yard. Judge Williams’ 2009 decision can be read here. Rogers v. United States, 90 Fed. Ct. 418 (2009).

But, instead of working to fairly and promptly resolve these Sarasota landowners’ claims, the Justice Department tried to make a new argument. The Justice Department wanted to avoid paying the full fair market value of the property the government had taken from these property owners. Rather, the Justice Department claimed, the government only needed to pay the Sarasota County landowners nominal “incremental” compensation for the property it had taken.

Judge Williams was not impressed. Judge Williams flatly rejected the Justice Department’s argument and, in a firmly-worded decision, called the government’s argument “a red herring”, “wholly inappropriate” and “misguided”. Judge Williams said the Justice Department’s pleadings were “irrelevant”. Judge Williams’ Oct. 31, 2011, decision is available here.

Arent Fox partner Thor Hearne, a nationally known authority in constitutional and eminent domain litigation represents the Sarasota County landowners. Mr. Hearne who had argued their case in federal court, said “the Court flatly rejected all of the Justice Department’s arguments.” Mr. Hearne said. “I hope the Justice Department will take Judge Williams admonition to heart and now work with us to make sure these Florida citizens receive the just compensation they are due for the property the federal government has taken from them.”

Additionally, Mr. Hearne said, the impact of Judge Williams’ decision will be felt beyond Florida. “Judge Williams is a respected judge and other courts will be looking to her well-reasoned opinion when they consider this same issue. This decision will not only directly benefit the landowners here in Florida who had their property taken by the federal government, but it will benefit property owners all over the United States who are fighting similar battles and seeking the compensation to which they are entitled under the Fifth Amendment of the United States Constitution.” Mr. Hearne said.

The National Law Journal featured Mr. Hearne this week in a front-page story noting that “rails-to-trails” cases make up the fastest growing area of Fifth Amendment “takings” litigation in the United States. The paper reports the US Department of Justice is “currently grappling with more than 10,000 claims. … Thousands of miles of abandoned railway lines have been turned over to public use since the 1980s in at least 33 states, including Florida, Kansas, Pennsylvania, Arizona, and Texas.”

A link to the National Law Journal story “DOJ suffers defeats in Rails to Trails cases.” is available here.

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