1998

City of Virginia Beach v. Bell

Supreme Court of Virginia

255 Va. 395, 498 S.E.2d 414

The City passed an ordinance in 1980 which regulated the use and development of coastal primary sand dunes. Developers who wanted to use or alter any primary sand dune had to get a permit from the Virginia Beach Wetlands Board. Bell acquired two lots in 1982 and desired to develop the lots but was denied a permit by the Wetlands Board. Bell brought suit against City alleging that the permit denial deprived landowner of all economically beneficial use of the lots and was a regulatory taking in violation of Article1, § 11 of the Constitution of Virginia. Jury awarded damages of $110,000 plus interest. Supreme Court held that City was a correct defendant because the restriction on the property was a result of the City’s policy. Court further held, for the purposes of the Fifth Amendment to the United States Constitution, a compensable taking occurs when a state regulatory action denies all economically beneficial or productive use of land. However, this rule only applies if the property owner purchased the land prior to the enactment of the regulation. The fact that Bell was a shareholder in the corporation which owned the property before 1980 did not affect whether Bell’s ownership predated the regulation, as that was a different legal entity. The denial did not violate the Fifth Amendment or Article 1,§ 11, and the case was reversed and dismissed.

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