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When is Eminent Domain a Police Action or a Taking

When is Eminent Domain a Police Action or a Taking - I When...

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I. When is Eminent Domain a Police Action or a Taking? a. Police Action – Regulations not requiring compensation b. Taking – Eminent Domain requires Just Compensation i. Constitutional Law instead of Common Law c. Example: i. Mugler v. Kansas (1887) 1. Mugler owned a brewery 2. Kansas enacted a law prohibited alcohol 3. Law’s result made Mugler’s business worthless 4. Supreme Court: Kansas enacted this legislation to improve Social Welfare a. Manufacture of beer was determined to fall under Noxious Use Exception, Law was Police Power and not a taking ii. Pennsylvania Coal v. Mahon (1922) 1. PA enacted Kohler Act a. When mining coal from the mine, you must leave wider pillars to prevent above-ground property damage b. Reduces the value of the mine, extractable investment c. Diminution of Value Rule: i. If you put a regulation In place, it may, in fact, satisfy the noxious use exception ii. But, if it reduces the value of the asset past a certain threshold, then it is a Taking and requires Compensation iii. Pennsylvania Central Railroad v. City of New York (1978)
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