1997

Bd. of Supervisors v. Omni Homes

Supreme Court of Virginia

253 Va. 59, 481 S.E.2d 460

Omni bought 72.68-acre parcel in 1989, which was zoned urban residential development, and intended to develop 106 residential lots. To obtain road and utility access, Omni had an informal agreement that it could run such access through the neighboring urban residential subdivision. Neighboring subdivision’s preliminary plan did not show access road to Omni’s property, and its approval was slowed by litigation. Omni’s plan was also slowed and was put on hold until an approved bonded access road through the neighboring parcel was secured. Then the implementation of the Chesapeake Bay Preservation Act resulted in the neighboring land being bought by Prince William County to settle an inverse condemnation claim. Omni filed suit alleging the County’s actions amounted to a taking of Omni’s property without just compensation in violation of the Fifth Amendment to the United States Constitution and Article 1, §11 of the Constitution of Virginia. Trial court held that the purchase of neighboring development was a regulatory action, constituted a compensable taking or damaging of Omni’s property, and awarded Omni $800,000. Supreme Court held that trial court erred in determining property had been taken in violation of federal and state constitutions. The actions of the County had not stripped the land of all available economic uses. Further, the requirement of road and utility access was a known risk at the time Omni purchased the property. Such risk was not transformed into an investment-backed expectation supported by the state of regulatory affairs at time of purchase. The risk of securing road and utility access was not imposed by the County purchasing the neighboring property, nor did it frustrate any enforceable right Omni had regarding such access. There was no Fifth Amendment compensable taking. The County’s purchase did not violate any state constitutional protection as the County did not eliminate all economic uses of the parcel. The County could not damage a non-existing right of Omni in the adjacent land. Reversed and final judgment.

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