Treme v. St. John the Baptist, No. 23-30084 (5th Cir. 2024)
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In October 2018, Warren G. Treme, a member of AJSJS Development, LLC, leased minerals on a tract of land in St. John the Baptist Parish, Louisiana, from Dr. Christy Montegut and his siblings. AJSJS intended to join a joint venture formed in 2010 between Treme, AIMS Group, Inc., and Fred Kinsley. The joint venture aimed to extract and process clay material from the tract for a U.S. Army Corps of Engineers project. However, to conduct mining and excavation activities, the plaintiffs needed to change the zoning classification of the tract. Despite multiple applications for rezoning, the Parish Council denied the applications after hearing complaints from affected residents. The plaintiffs then sued the Parish and the Council, alleging that the denial of the rezoning application constituted a regulatory taking without compensation in violation of the United States and Louisiana Constitutions. The plaintiffs also alleged violations of procedural and substantive due process and equal protection rights under the Fourteenth Amendment.
The United States Court of Appeals for the Fifth Circuit held that the plaintiffs lacked standing to bring a takings claim because their mineral lease was not yet in effect, meaning they had no vested property interest in the tract. The court interpreted the lease to have a suspensive condition that required the plaintiffs to obtain governmental approvals for the lease to become effective. As the plaintiffs had not obtained these approvals, the lease had not yet come into effect. Consequently, the court affirmed the district court’s decision but modified the judgment to be a dismissal without prejudice.
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