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Supreme Court Weighs Rights of Landowners
Tuesday, February 27, 2001
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WASHINGTON -- In a case that could have broad implications for environmental
and regulatory policies, lawyers argued before the Supreme Court Monday about
whether governments are unconstitutionally "taking" someone's property when
they pass regulations that effectively lower its value.

Lawyers for Rhode Island plaintiff Anthony Palazzolo argued that the state,
which has for 20 years prevented him from developing a pond-side plot of land
because it is protected wetlands, should pay the retired auto wrecker because
its value is diminished by the regulation.

"Declaring something an environmental issue is a way for the government to
effectively deprive the owner the use of the property without paying the
price for it," said R.S. Radford, an attorney for the Pacific Legal
Foundation, a property rights law firm representing Palazzolo in the case.

"The outcome of this case could have broad implications for the protection of
our coastal ecology and our nation's environment in general," said Rhode
Island Attorney General Sheldon Whitehouse, who argued the state's case
before the high court.

Whitehouse argued that Palazzolo was not, in fact, totally deprived of his
property. "There is value in this property," he said, because a home could be
built on the higher-ground area of the land.

If Palazzolo prevails, governments could be forced to rethink the way they
issue regulations that impact the value of private property, including
monumental laws such as the Endangered Species Act and clean air and water
rules.

Palazzolo bought the land in 1959 as an investment, intending to develop it
piecemeal over the years. The 18-acre parcel was zoned for residences or a
beach club and Palazzolo planned to fill in the marshy lots and sell them to
make some money on the side.

"I'm not a developer," the 80-year-old Palazzolo said. "All I wanted to do
was improve my land and sell the lots occasionally as I went along."

A series of environmental restrictions enacted in 1971 and 1977 made his
plans impossible, though. He later sued the state for $3.15 million in lost
value.

His attorneys argued that the government in essence "took" the land from him
by blocking his proposals, violating the Fifth Amendment clause that states
if a government takes a person's property, it must pay just compensation.

"If we look at the history of environmental regulations in this country,
especially in the last 10 or 12 years, it has been proceeding on the
assumption that the government can deprive owners of the rights of their
property at the stroke of a pen," Radford said.

The case is being closely watched by organizations on both sides of the
property-rights debate. Among those supporting Palazzo are Defenders of
Property Rights, the National Association of Home Builders and the American
Farm Bureau Federation.

Supporters of Rhode Island include the National Wildlife Federation, the
National Conference of State Legislatures and 18 states.

— The Associated Press contributed to this report.




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