This case raises several questions concerning the treatment of takings claims. A real estate developer requested permission from a California municipality to develop some ocean front property. When the municipality denied the request, the developer brought an "inverse condemnation" action alleging that the denial constituted a regulatory taking and seeking the compensation that would have been due for the property had the municipality actually condemned it. Siding with the developer, the jury awarded nearly $1.5 million in damages, and the Ninth Circuit affirmed. On May 24, 1999, the Supreme Court did likewise.
It ruled that, in a regulatory taking action challenging a local land use decision, 42 U.S.C. ยง 1983 liability issues may be determined by a jury. This is an important right for property owners whose property is "taken" by government regulations.