January 2025

An informative e-newsletter for the Real Property Law Section of the State Bar of Michigan.

Eminent Domain Update: Supreme Court Expands Protections to Property Owners - Fifth Amendment’s Taki

By Ron Reynolds, Hilger Hammond and Peter H. Webster, Dickinson Wright

Yet another significant eminent domain case was issued by the U.S. Supreme Court in April 2024 in Sheetz v El Dorado County. George Sheetz wanted to build a modest manufactured home on his property. As a condition to build the home, a local ordinance required Mr. Sheetz to pay a $23,420 traffic impact fee determined by a preset ordinance schedule before he could get a building permit. Sheetz paid the fee and also challenged the fee’s constitutionality under the Fifth Amendment Taking Clause. Sheetz argued that the courts should apply the test outlined in two Supreme Court Takings cases: Nollan v California Coastal Comm’n, 483 U. S. 825 (1987) and Dolan v City of Tigard, 512 U. S. 374 (1994).

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The views and opinions expressed in these articles are those of the authors, and they do not reflect in any way the positions of the State Bar of Michigan or the Real Property Law Section. These columns are meant for informational purposes only and should not be construed as legal advice. IRS Circular 230 Disclosure: To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing, or recommending to another person any transaction or matter addressed in this communication.