Why is a state or local government more likely to prevail against a landowner in a regulatory takings dispute? Eric Claeys, Professor of Law at Antonin Scalia Law School at George Mason University, gives an overview of the dispute in Penn Central Transportation v. City of New York 438 U.S. 104 (1978), the leading case in regulatory takings law. In this case, a New York court held that Penn Central had not suffered a regulatory taking when the City of New York prevented it from building office space above the station because they still had some use of the property. This case also established a three-part balancing test for measuring compensation in regulatory takings cases.
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