Lynn Lumbard v. City of Ann Arbor
Lynn Lumbard v. City of Ann Arbor
Opinion of the Court
In 2000, the City of Ann Arbor passed an ordinance requiring certain homeowners to undergo structural renovations to their homes to alleviate storm water drainage problems affecting the city and surrounding areas. The City paid or reimbursed the homeowners for the renovations. In 2014, the Appellants, homeowners affected by the ordinance, pursued litigation in Michigan state courts alleging that the City's actions amounted to a taking without just compensation under the Michigan Constitution. At the outset of litigation, the Appellants filed an
England
Reservation in an attempt to preserve a federal takings claim for subsequent adjudication in federal court. The Appellants lost in state court and then filed suit in federal court alleging causes of action under
the Fifth Amendment of the United States Constitution and under
I.
The Appellants in this case are property owners in and around the City of Ann Arbor, Michigan ("City"). The houses on their properties were built between 1946 and 1973. At the time of their construction, in accordance with City regulations, the houses were outfitted with drainage piping that emptied both storm water and sanitary sewage into a single "combined sewer system." In 1973, the City modernized its sewer system by adding a separate sewer system exclusively for storm water. After the completion of the new sewer system in 1973, the City passed an ordinance requiring that any new structures be built to discharge storm water to the storm sewer system and sanitary sewage to the old combined sewer system. Existing structures were exempted from the ordinance.
The City's population continued to grow and the strain on the sewer systems came to a head in the years between 1997 and 2002. In each of those years the City experienced several tremendous rainfall events which resulted in overflows of the old combined sewer system including sewage overflow into public streets and the Huron River, and backups of sewage into City residents' basements. In early 2001, the City established a City Task Force and retained engineering consultants to study the problem and devise a solution. The City Task Force ultimately recommended a public works program that would disconnect the exempted homes in the older neighborhoods of the City from the old combined sewer system. The "Disconnect Program" would reroute the storm water drainage from selected homes to the storm sewer system, while maintaining the sanitary sewage outflow to the sanitary sewer system.
In August 2001, the City enacted Ordinance 32-01 ("Ordinance"). This Ordinance effectively repealed the 1973 exemption by declaring that all homeowners with pre-existing combined outflow drainage piping were in violation of City regulations. The Ordinance empowered the Director of the Utility Department ("Director") to select properties within the "Target Areas"
The Disconnect Program required the excavation of a three-foot-by-four-foot sump pit in the foundation of the structure, connection of an electric pump, and the installation of piping that would send the ground water and storm water from the house to the storm water sewer nearby. This project could involve jackhammering into the foundation, penetrating walls, ripping up lawns, and hanging visible piping in and around the house through which the electric pump would pump water to the outside. After installation of the system, the homeowner would be responsible for its maintenance and operation costs. The Appellants lived in the "Target Areas," were selected for the Disconnect Program, and complied with the Program's requirements between the years of 2001-2003.
In February 2014, a group of homeowners, including Anita Yu ("Yu"), filed a complaint in Michigan state court against the City, alleging violation of the Michigan Constitution for a taking without just compensation (inverse condemnation) by a physical, permanent occupation of her property for a public purpose. The City removed the case to federal district court and Yu moved to remand to state court on the basis that her federal claims were unripe pursuant to the
Williamson
exhaustion doctrine.
See
Williamson Cnty. Reg'l Planning Comm'n v. Hamilton Bank of Johnson City
,
In October 2015, a group of similarly situated homeowners, the Lumbard plaintiffs ("Lumbard"), filed a complaint against the City in Michigan state court alleging identical state-law claims. Lumbard also attempted to preserve federal claims by filing a Notice of England Reservation with the court. The Michigan state court found that the legal issues were the same as those in the Yu case and granted the City's motion to dismiss.
In September 2016, the court consolidated the Yu and Lumbard cases for appeal in the Michigan Court of Appeals. The court found that Yu and Lumbard did not contest that they owned the installations, so the only question was whether, as a matter of law, a takings challenge for physical invasion
In October 2017, Yu and Lumbard filed a complaint against the City in the United States District Court for the Eastern District of Michigan alleging several "causes of action" arising under the Fifth Amendment of the United States Constitution and
II.
We review de novo an order dismissing for failure to state a claim under
Federal Rule of Civil Procedure 12(b)(6).
Theile v. Michigan
,
First, the Appellants argue that
Williamson
,
supra
, is a jurisdictional bar to adjudication in federal court and thus they were forced to seek remand of their action to state court. But in
Stop the Beach Renourishment, Inc. v. Florida Department of Environmental Protection
,
Second, the Appellants spend considerable time urging that
England
Reservations are available absent a
Pullman
abstention order, such as when litigants are forced into state court under
Williamson
. The Appellants cite our decision in
DLX, Inc. v. Commonwealth of Kentucky
,
Third, the Appellants argue that our opinion in DLX means that, in the Sixth Circuit, claims properly reserved under England are not subject to claim preclusion when litigants are involuntarily forced into state court under Williamson .
On this point, the Appellants correctly characterize our ruling in
DLX
. However, the Supreme Court in
San Remo Hotel, L.P. v. City and County of San Francisco
,
It is important to point out that while the district court, relying on Michigan law, found the subject matter of the Takings Clause of the Michigan Constitution and Takings Clause of the Fifth Amendment of the United States Constitution to be the same, such a finding is irrelevant to the ultimate disposition of the case. If the takings jurisprudence of the two constitutions is "coextensive" (to use the language of the San Remo court), then issue preclusion bars subsequent litigation of the federal takings claim after litigation of the state takings claim on the merits. If the takings jurisprudence of the two constitutions is not "coextensive," then claim preclusion bars subsequent litigation of the federal takings claim because it should have been brought with the state claim in the first instance in the Michigan court. Because in either event the Appellants' federal takings claim is precluded, we decline to opine on the "coextensiveness" of Michigan's Taking Clause jurisprudence.
III.
Appellants are precluded by the Full Faith and Credit Statute,
The "target areas" were the older neighborhoods of the City that were built prior to construction of the storm water sewer system.
The Michigan Court of Appeals noted that Plaintiffs did not allege a regulatory taking, but a "physical invasion" taking theory.
This holding post-dates the Appellants' initiating their litigation in federal district court.
The separate opinion of Judge Baldock concurring only in the judgment seems to most accurately reflect where these tangled legal doctrines have ended up.
DLX
,
Concurring Opinion
CONCURRENCE
To find a good illustration of the law of unintended consequences, one need look no further than the Supreme Court's decision in
Williamson County Regional Planning Comm'n v. Hamilton Bank of Johnson City
,
That assurance has proved illusory, as the plaintiffs in this case are only the latest to learn. For
Williamson County
seemed to overlook that, unlike a state or local body in an administrative proceeding, state courts issue
judgments
. And state-court judgments are things to which the federal courts owe "full faith and credit[.]"
Yet
Williamson County
has its defenders, notably state and local governments, who say that, if a state's procedure for providing "just compensation" happens to be a lawsuit in state court, an aggrieved property owner should be obligated to seek compensation there. The problem with that argument (apart from the catch-22 described above) is its premise: that, taking or not, the property owner cannot show a denial of "just compensation" until the state courts deny relief. But the Takings Clause does not say that private property shall not "be taken for public use, without just compensation, and without remedy in state court." Instead the Clause says that private property shall not "be taken for public use, without just compensation"
period
. U.S. Const. Amend. V. And that plainly means that, if the taking has happened and the compensation has not, the property owner
already
has a constitutional entitlement to relief.
See
Arrigoni Enterprises, LLC v. Town of Durham, Conn
., --- U.S. ----,
Williamson County
thus turns away from federal court constitutional claimants who have every right to seek relief there. And in doing so
Williamson County
leaves those claimants without any federal forum at all.
Williamson County
itself did not foresee that result, and thus offered no justification for it. Nor has any later case explained why takings claims should be singled out for such disfavored treatment. And meanwhile, as this case and others illustrate,
Williamson County
has left the lower federal courts with plenty to do in cases where plaintiffs seek to assert federal takings claims against state or local defendants. Rather than actually adjudicate
those claims, however, we adjudicate federal-court esoterica: things like
Pullman
abstention, the scope of state jurisdictional and venue provisions, the efficacy of so-called "
England
reservations," and whether state law disfavors the adjudication of federal takings claims in violation of
Haywood v. Drown
,
As to
Haywood
, in particular, "[o]ne further irony remains."
Id
. at 825 (dissenting opinion). There, the Supreme Court held that state jurisdictional statutes that discriminate against "disfavored federal claim[s]" are invalid under the Supremacy Clause.
Federal courts have a "virtually unflagging" obligation to exercise the jurisdiction that Congress has given them.
Sprint Commc'ns, Inc. v. Jacobs
,
Reference
- Full Case Name
- Lynn LUMBARD; Anita Yu; John Boyer ; Mary Raab, Plaintiffs-Appellants, v. CITY OF ANN ARBOR, Defendant-Appellee.
- Cited By
- 10 cases
- Status
- Published