Pacific Shores v. Dept. of Fish and Wildlife
Annotate this CaseIn an inverse condemnation action, the issue facing the Court of Appeal was a unique situation, where a state agency assumed control of a local flood control process, and it determined to provide less flood protection than historically provided by a local agency in order to protect environmental resources. Plaintiffs, whose properties suffered flooding damage when the lagoon level rose above eight feet msl, filed this action in 2007 for inverse condemnation. They alleged they suffered a physical taking from the Department’s actions, and a regulatory taking by the Commission retaining land use jurisdiction over the subdivision throughout this time instead of transferring it to the County. Plaintiffs also sought precondemnation damages and statutory attorney fees. The trial court found the Department and the Commission (collectively, the State) liable for a physical taking and awarded damages, but it concluded plaintiffs’ claim for a regulatory taking was barred. It rejected the State’s arguments that the statute of limitations barred plaintiffs’ complaint. It awarded plaintiffs attorney fees in the amount they incurred under a contingency agreement, but it denied plaintiffs any precondemnation damages. Both the State and plaintiffs appealed. The Court of Appeal affirmed the trial court’s judgment finding the state agency liable in inverse condemnation for a physical taking of plaintiffs’ properties, and not liable for a regulatory taking. The Court reversed the judgment to the extent the court found another state permitting agency liable in inverse condemnation.
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