Hall v. State

Summary

The Oregon Supreme Court reviews an inverse condemnation action brought by property owners against the Oregon Department of Transportation based on public representations concerning a possible interchange closure and condemnation of the property. The court holds that the challenged conduct involved planning for eventual public use and that a reduction in property value, without a physical occupation, invasion of a property right, or deprivation of all economically viable use, was insufficient to establish a compensable taking. The court affirms the Court of Appeals, reverses the trial court judgment, and remands for further proceedings.

Holdings

1. When governmental regulation or planning for the eventual taking of property for public use reduces the property's value, no de facto taking generally occurs unless the action deprives the owner of all economically viable use of the property or causes a physical governmental occupation or invasion of a property right that substantially interferes with use and enjoyment.
2. A claim characterized as condemnation blight arising from planning for an eventual taking requires proof that the governmental action deprived the owner of all economically viable private use; a reduction in market value alone is insufficient.
3. The trial court erred in denying ODOT's motion for a directed verdict because plaintiffs neither alleged or proved deprivation of all economically viable use nor established a physical occupation or invasion of a property right.

Questions Presented

1. What legal standard governs an inverse condemnation claim based on governmental planning for the eventual public acquisition of private property?
2. Can governmental planning or precondemnation representations that reduce property value constitute a taking without proof that the owner was deprived of all economically viable use or that the government physically occupied the property or invaded a property right?
3. Was ODOT entitled to a directed verdict because plaintiffs failed to prove a cognizable de facto taking?

Disposition

reversed_and_remanded