A NEW battle front is opening up in the Supreme Court Jan. 22:
The right of property owners to use and profit from their land
versus the power of government to protect wetlands and coastlines
or to control rents.
Last fall, within a single month, the justices agreed to hear
three cases that offer opportunities to strengthen property rights,
especially those of land developers.
Although the justices may make only minor shifts in legal
doctrine or simply reaffirm the status quo, the fact that they
accepted these cases for review signals possible change. All three
cases have been decided in favor of government regulation in lower
The court was to hear the first of these cases Jan. 21. In Yee
v. Escondido, a mobile-home-park owner in San Diego County argues
that the rent control on his lots amounts to a government taking of
his property - in effect, a permanent occupation of his property by
tenants at reduced rents.
Mobile homes fetch higher prices when sited on rent-controlled
lots, so the benefit of the controlled rents goes to the seller.
Without rent control, that benefit would go to the owner of the
lot in the form of higher rents.
The park owner, John Yee, argues that the city of Escondido must
either compensate him for the revenues lost under rent control or
rescind its rent-control law on mobile-home parks.
The city counters that it has a legitimate interest in keeping
housing affordable, and Mr. Yee has no legal property-right claim
to rents above the rent-control level or the premium it adds to
The Yee case is of particular concern to the elderly. Nearly
one-quarter of mobile-home residents are over 65 years old. Of the
elderly in mobile homes, according to the American Association of
Retired Persons, 80 percent have annual incomes under $20,000. A
decision in favor of Mr. Yee could threaten protections like the
Escondido rent-control ordinance in 32 states, according to the
Two more property-rights cases are in the wings to be heard this
* In Lucas v. South Carolina Coastal Council, a builder bought
two beachfront lots for a total of $975,000. He planned to build a
house for his own family on one and build a house to sell on the
other. But after he bought the lots, South Carolina passed a
coastal-management law that forbade new building so close to the
beach. His lots became virtually worthless.
David Lucas, the builder, says the state owes him the lost value
of the land, since through regulation it took away any economically
viable use of it. …