Board of Zoning Appeals v. Leisz

702 N.E.2d 1026, 1998 Ind. LEXIS 597
CourtIndiana Supreme Court
DecidedDecember 2, 1998
Docket53S01-9806-CV-345
StatusPublished
Cited by28 cases

This text of 702 N.E.2d 1026 (Board of Zoning Appeals v. Leisz) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Zoning Appeals v. Leisz, 702 N.E.2d 1026, 1998 Ind. LEXIS 597 (Ind. 1998).

Opinion

ON PETITION TO TRANSFER

BOEHM, Justice.

We granted transfer to consider whether a zoning ordinance that provides for the forfeiture of a prior nonconforming use if it is not registered constitutes an unconstitutional taking in violation of the Fifth and Fourteenth Amendments to the United States Constitution. Although important individual property rights are at stake, we conclude that the zoning ordinance at issue served an important public purpose and did not effect an unconstitutional taking. The Court of Appeals concluded that a different result was required by our opinion in Ailes v. Decatur County Area Planning Comm’n, 448 N.E.2d 1057 (Ind.1983), in which we held that provisions for amortizing a nonconforming use are unconstitutional regardless of the period of amortization. We reconsider that opinion and overrule its holding that amortization provisions are per se unconstitutional.

Factual and Procedural Background

Effective June 8, 1985, Bloomington passed a zoning ordinance that limited the occupancy of dwellings in certain neighborhoods to a maximum of three unrelated adults per unit. Bloomington Municipal Code [BMC] § 20.04.01.00. Among the af-. fected properties were two that had been continuously rented to more than three unrelated adults prior to 1985. At the time Bloomington adopted the zoning ordinance it also enacted a grandfathering provision that permitted owners of properties that became nonconforming uses under the zoning ordinance to preserve their lawful nonconforming use status if they registered it by October 1, 1985. BMC § 20.06.02.04(b). Notice of the zoning ordinance and grandfathering provision was published in the local newspaper during the summer of 1985. Notice of both was also mailed to all owners of rental property registered under a separate housing ordinance (BMC § 16.12.060) that required the registration of rental properties in order to facilitate their inspection for compliance with health and safety regulations. Because the two properties involved in this case were not registered under the housing ordinance, the then owners were not given mailed notice of the zoning change. Whether for that reason or otherwise, they did not register the nonconforming use.

Jack and Barbara Leisz purchased the properties in 1989. In 1993, the City of Bloomington notified the Leiszs that then-properties were in violation of the 1985 zoning ordinance. The Leiszs requested an administrative ruling that their properties were exempt from the ordinance as pre-existing lawful nonconforming uses. This request was denied by the planning director, and the Leiszs appealed to the Board of Zoning Appeals (BZA), which affirmed. The Leiszs sought review in the trial court, which initially affirmed BZA’s decision, but then reversed *1028 that decision in ruling on the Leiszs’ motion to correct error. The Court of Appeals affirmed the trial court. Board of Zoning Appeals v. Leisz, 686 N.E.2d 935 (Ind.Ct.App.1997). We granted BZA’s petition to transfer.

I. The Takings Issue

The Court of Appeals held that “a vested property interest in a nonconforming use may not be forfeited by the mere failure to register it under a grandfathering provision.” Leisz, 686 N.E.2d at 939. Although not explicitly citing the constitutional basis of its holding, the Court of Appeals’ discussion focused on issues of due process and cited “[t]he constitutional prohibition against taking of property-without due process of law[.]” Id. In their brief to the Court of Appeals, the Leiszs argued that “any ordinance which bans an existing lawful use within a zoned area is unconstitutional as a taking of property without due process of law and as an unreasonable exercise of police power.” Brief of Appellee at 4 (citing Jacobs v. Mishawaka Bd. of Zoning Appeals, 182 Ind.App. 500, 395 N.E.2d 834 (1979)). Due process is a term found in both the Fifth and Fourteenth Amendments to the federal constitution. It does not appear in the Indiana Constitution. 1 In addition to the provisions found in both the Fifth and Fourteenth Amendments prohibiting depriving a person of property “without due process of law,” the Fifth Amendment includes a prohibition against taking private property for public use without just compensation. See U.S. Const, amends. 14 & 5. This in turn has been held applicable to the states by reason of the Fourteenth Amendment. Chicago, B. & Q. R. Co. v. Chicago, 166 U.S. 226, 239, 17 S.Ct. 581, 41 L.Ed. 979 (1897); see also Dolan v. City of Tigard, 512 U.S. 374, 383-84, 114 S.Ct. 2309, 129 L.Ed.2d 304 (1994). We conclude that the claims presented turn on whether the forfeiture of the Leiszs’ nonconforming use due to the failure to register it violated these provisions of the federal constitution.

A. The federal Takings Clause

“[WJhile property may be regulated to a certain extent, if regulation goes too far it will be recognized as a taking.” Pennsylvania Coal Co. v. Mahon, 260 U.S. 393, 415, 43 S.Ct. 158, 67 L.Ed. 322 (1922). Mahon “is generally regarded as the seed from which all modern regulatory taking cases have grown.” Department of Natural Resources v. Indiana Coal Council, 542 N.E.2d 1000, 1003 (Ind.1989). Seventy years after Ma-hon, however, the Supreme Court acknowledged that the decision “offered little insight into when, and under what circumstances, a given regulation would be seen as going ‘too far’ for purposes of the Fifth Amendment.”

Lucas v. South Carolina Coastal Council, 505 U.S. 1003, 1015, 112 S.Ct. 2886, 120 L.Ed.2d 798 (1992). Indeed, the Court has “generally eschewed any set formula for determining how far is too far, preferring to engag[e] in ... essentially ad hoc, factual inquiries.” Id. (internal quotation marks and citations omitted). “Although no precise rule determines when property has been taken, the question necessarily requires a weighing of private and public interests.” Agins v. City of Tiburon, 447 U.S. 255, 260-61, 100 S.Ct. 2138, 65 L.Ed.2d 106 (1980) (citation omitted). As an overarching concern, the Court has stated that the Takings Clause is “designed to bar Government from forcing some people alone to bear public burdens which, in all fairness and justice, should be borne by the public as a whole[.]” Penn Cent. Transp. Co. v. City of New York, 438 U.S. 104, 123, 98 S.Ct. 2646, 57 L.Ed.2d 631 (1978) (quoting Armstrong v. United States, 364 U.S. 40, 49, 80 S.Ct.

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Bluebook (online)
702 N.E.2d 1026, 1998 Ind. LEXIS 597, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-zoning-appeals-v-leisz-ind-1998.