Hearts Bluff Game Ranch, Inc. v. StateAnnotate this Case
As tasked by the Legislature, the Texas Water Development Board (TWDB) identified potential reservoir sites. Hearts Bluff Game Ranch, Inc. purchased some of the wetlands on one of the sites identified by the TWDB as a potential reservoir location. When the U.S. Army Corps of Engineers denied its application for a mitigation banking permit because the State had identified the site as a potential reservoir, Hearts Bluff sued the State and the Corps for a taking for interfering with its asserted right to commercially develop the land as a mitigation bank. At issue was whether a takings claim against the State may be predicated on the denial of a permit by the federal government when the State had no authority to grant or deny the permit. The trial court denied the State's plea to the jurisdiction, which alleged that Hearts Bluff failed to plead a valid takings claim. The court of appeals reversed. The Supreme Court affirmed, holding that absent demonstrating bad faith, Hearts Bluff did not establish the existence of jurisdiction in this case because it did not establish a viable takings claim.