Love Terminal Partners, L.P. v. United States, No. 16-2276 (Fed. Cir. 2018)Annotate this Case
Plaintiffs leased part of Love Field airport from the City of Dallas and constructed a six-gate airline terminal. Plaintiffs claim that the Wright Amendment Reform Act of 2006 (WARA), 120 Stat. 2011, effected a regulatory taking of their leases and a physical taking of the terminal because the statute codified a private agreement in which Dallas agreed to bar the use of plaintiffs’ gates for commercial air transit and to acquire and demolish plaintiffs’ terminal. The Claims Court found that WARA's enactment constituted a per se regulatory taking of plaintiffs’ leaseholds under Supreme Court precedent, Lucas, and a regulatory taking of the leaseholds under Penn Central, and a physical taking of the terminal. The Federal Circuit reversed. Noting the history of regulation of Love Field and limitations in place before WARA, the court stated there can be no regulatory taking because plaintiffs cannot demonstrate that their ability to use their property for commercial air passenger service pre-WARA had any value. Plaintiffs’ reasonable, investment-backed expectations are limited by the regulatory regime in place when they acquired the leases. Rejecting a claim of physical taking the court reasoned that a requirement that federal funds not be used for removal of plaintiffs’ gates explicitly distances the federal government from Dallas’ intended action.