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Environmental Law

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Wetlands Permit Denial Entitles Landowner to Compensation

October 30, 2016

The United States Court of Federal Claims recently found that the denial of a wetlands permit pursuant to the Clean Water Act resulted in a severe, but not total, loss of the economically viable use of property, thus entitling the landowner to compensation. The landowner sought a permit to mine limestone on its property, which was comprised of wetlands. The court found that the landowner's investment-backed expectations were frustrated as a result of its inability to obtain the permit and mine the land. The owner purchased the property prior to the enactment of the Clean Water Act; therefore it had no reason to know that its rights to mine or develop the property were open to question. Accordingly, the court found that a compensible partial regulatory taking had occurred, entitling the landowner to compensation. Florida Rock Industries, Inc. v. United States, Docket No. 266-82-7 (Fed. Cl. August 31, 1999).

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