The firm was proud to represent the City of Canton and a number of its employees in a suit brought by Venture Capital, Inc. (“VCI”). VCI was in the business of processing fats, oils, and grease into usable post-consumer commodities such as bio fuels. VCI applied for and received a permit from the City of Canton to expel waste product from its processes into the City’s wastewater system. In March 2023, VCI observed that its waste products were backing up from a clog in the line. It was not clear where in the line the clog occurred. VCI claimed the clog was in the City’s owned line rather than a line from VCI’s plant location to the City’s line. As a result of the clog and overflow, the City was called to the scene and observed a number of problems with VCI’s operations; therefore, the City initially suspended and then revoked VCI’s permit.
VCI sued claiming (in their amended complaint) that the City had taken a valuable property right and caused VCI considerable damage and losses. BLG filed a motion to dismiss on behalf of the City and its City Manager and Water Engineer arguing that the property interest claimed was not one that was subject to a takings analysis under the Fifth Amendment. The United States Constitution provides that governments of all levels cannot obtain private property rights or interests without compensating the private property owner for those interests. However, not every property interest is one that is recognized under the Takings Clause of the Fifth Amendment. Some property interests may not be altered or removed by government action without due process (notice of pending action and a right to be heard in opposition to the action), such as a right to an employment position that cannot be terminated except for cause or a right to attend a public school. The most common type of property interest subject to Takings analysis are found in interests in land that you can dig in or build on.
The District Court agreed with the motion and in a carefully articulated Order explained that the “property interests” claimed by Plaintiff were ones subject to due process protection not subject to a Takings analysis. The Court entered judgment for Defendants. Plaintiff has appealed to the United States Court of Appeals for the Eleventh Circuit. A decision could take up to 18 months to receive.
