Summary
The Supreme Court of Montana affirmed the denial of takings claims brought by owners and operators of alternative livestock game farms following Montana Initiative 143, which prohibited fee-shooting and restricted transfer of alternative livestock licenses. The court addressed venue, severance, jury-trial treatment of takings liability, the relationship between Montana and federal takings protections, categorical takings of personal property, and regulatory takings under the Penn Central framework.
Topics
Practice areas
Questions Presented
- Whether the district court properly transferred venue to Lewis and Clark County and denied severance.
- Whether liability for the alleged takings was properly decided by the court rather than a jury.
- Whether Article II, Section 29 of the Montana Constitution provides broader regulatory-takings protection than the Fifth Amendment.
- Whether Initiative No. 143 effected a categorical taking of the plaintiffs' personal property.
- Whether Initiative No. 143 effected a compensable regulatory taking under the Penn Central framework.
Holdings
- The district court properly transferred the entire action to Lewis and Clark County and acted within its discretion in denying severance.
- On the facts of this case, the district court properly decided takings liability without a jury while preserving a jury trial on damages if liability were established.
- For regulatory and categorical takings claims, the protection against a taking under Article II, Section 29 is coextensive with the Fifth Amendment, and the federal Penn Central or Lucas analyses apply. The 'or damaged' language does not extend that provision to regulatory damages unrelated to a physical condemnation or similar public-use taking.
- The plaintiffs' categorical takings claims failed because their alternative livestock and related equipment retained economically beneficial uses after Initiative No. 143. The court expressly declined to decide whether personal property may ever be the subject of a Lucas categorical-taking claim.
- Initiative No. 143 did not effect a compensable regulatory taking of the plaintiffs' property.
Key quotations
“Given the primarily legal nature of takings inquiries, a jury determination should be required only in those cases in which the resolution of a factual dispute is necessary in order to determine whether a taking has occurred.” (¶ 59)
“In other words, a takings analysis based on federal law under Penn Central or Lucas is to be applied to takings claims whether brought under the U.S. or Montana Constitutions.” (¶ 64)
“Taking away a property's most beneficial use does not by itself constitute a compensable taking.” (¶ 80)
Factual background
Montana voters enacted Initiative No. 143 in 2000, prohibiting fee shooting on alternative-livestock game farms and preventing transfer of existing alternative-livestock licenses. The plaintiffs operated game farms involving captive elk; the Wallace operation relied substantially on fee shooting, while the Buhmann operation bred elk and sold related products. The initiative substantially reduced the value of their elk, equipment, and businesses, but left permitted uses including breeding, sale for meat or antlers, and some out-of-state sales. The district court found significant economic losses but no complete destruction of all economically beneficial uses and denied compensation.
Procedural history
The plaintiffs filed a joint action seeking compensation under the Fifth Amendment, Article II, Section 29 of the Montana Constitution, and 42 U.S.C. § 1983. Venue was transferred from Blaine County to Lewis and Clark County, defendant-intervenors were permitted to intervene, and the district court bifurcated liability from damages. After a bench trial, the district court denied the takings claims. The Montana Supreme Court affirmed.