It isn't often my day job doing land use and condemnation litigation overlaps with my maritime interests, but the Ninth Circuit just published a decision that comes awfully close.
The case is Samson v. City of Bainbridge Island and the opinion can be found here.
The facts: the City of Bainbridge Island issued a moratorium on building piers that a property owner sought to build. The property owner battled the City in state courts finally obtaining a judgment that the moratorium violated the Washington constitution. During the pendency of that litigation, the City passed a permanent prohibition on the construction of piers and docks. The property owners filed a civil rights lawsuit in state court and the City removed the suit to federal court. There, the City prevailed on a summary judgment motion.
The Ninth Circuit affirmed the decision, but peppered the decision with language that it was sympathetic to the property owners' plight.
Substantive Due Process: the property owner asserted that the moratorium constituted a substantive due process violation. The first inquiry: what is the property right being impacted by the offending governmental conduct? The City contended that the right was merely the "abstract need or desire"to build a single use dock. The owners contended that the right to build a dock was a "vested right" which, under Washington law, gives owners the vested right to have their building permit applications governed by the then-existing law governing such applications. The court did not resolve this issue because it found that even if there were a cognizable property interest at stake, the moratorium did not infringe upon it.
As the Samsons conceded, the moratorium did not impinge on their fundamental right. See Jackson Water Works, Inc. v. Pub. Utils. Comm’n, 793 F.2d 1090, 1093 (9th Cir. 1986) (noting that government action that “affects only economic” interests does not implicate fundamental rights). “The Supreme Court has ‘long eschewed . . . heightened [means-ends] scrutiny when addressing substantive due process challenges to government regulation’ that does not impinge on fundamental rights.” Shanks v. Dressel, 540 F.3d 1082, 1088 (9th Cir. 2008) (alterations in original) (quoting Lingle v. Chevron U.S.A. Inc., 544 U.S. 528, 545 (2005)). Hence, to establish a substantive due process violation, the Samsons must show that Bainbridge’s ordinances establishing and extending the moratorium were “clearly arbitrary and unreasonable, having no substantial relation to the public health, safety, morals or general welfare.” Kawaoka v. City of Arroyo Grande, 17 F.3d 1227, 1234 (9th Cir. 1994) (internal quotation marks omitted). The ordinances are “presumed valid, and this presumption is overcome only by a clear showing of arbitrariness and irrationality.” Id. (internal quotation marks omitted). The Samsons have not met this “exceedingly high burden.” Shanks, 540 F.3d at 1088 (internal quotation marks omitted).
The Court found that the moratorium was in the government interest to avoid the flood of applicants that foreshadow a change in governmental regulation. The City's aim to avoid owners "vesting" was legitimate and that the City's action was not "arbitrary".
Procedural Due Process: the property owners also brought a procedural due process challenge to the moratorium, alleging it was passed without any hearing. The Ninth Circuit found that the moratorium was a "legislative act" and there was no evidence that it was targeted to any property owner.
Procedural due process entitles citizens to a legislative body that “performs its responsibilities in the normal manner prescribed by law.” Id. at 1260 (internal quotation mark omitted). The Bainbridge City Council hewed to its ordinary protocols when it passed the moratorium ordinances. The Samsons’ rights were thus “protected in the only way that they can be in a complex society, by their power, immediate or remote, over those who make the rule.” Bi-Metallic Inv. Co. v. State Bd. of Equalization, 239 U.S. 441, 445 (1915).
The court concluded:
It is surely vexing to the Samsons that they and their co-plaintiffs successfully challenged the moratorium in state court, but received no damages for their efforts. And it must be more vexing still that they won the battle, but lost the war: the state courts struck down the temporary moratorium, but upheld the permanent ban on shoreline development. But the federal courts do not exist to satisfy litigants who are unhappy with what they received in state court. Nor do they exist to second-guess the manner in which city officials promote the public welfare.
Cold solace indeed.