Pinewood Estates of Michigan and Philou Associates, Ltd. v. Barnegat Township Leveling Board, Township of Barnegat, Barnegat Township Committee

898 F.2d 347, 1990 U.S. App. LEXIS 3171, 1990 WL 19921
CourtCourt of Appeals for the Third Circuit
DecidedMarch 7, 1990
Docket89-5580
StatusPublished
Cited by28 cases

This text of 898 F.2d 347 (Pinewood Estates of Michigan and Philou Associates, Ltd. v. Barnegat Township Leveling Board, Township of Barnegat, Barnegat Township Committee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pinewood Estates of Michigan and Philou Associates, Ltd. v. Barnegat Township Leveling Board, Township of Barnegat, Barnegat Township Committee, 898 F.2d 347, 1990 U.S. App. LEXIS 3171, 1990 WL 19921 (3d Cir. 1990).

Opinions

OPINION OF THE COURT

GREENBERG, Circuit Judge.

FACTS

Appellants, Pinewood Estates of Michigan and Philou Associates, Ltd., appeal from an order of June 20, 1989, granting, pursuant to Fed.R.Civ.P. 12(b)(6), a motion to dismiss by appellees, Barnegat Township Leveling Board, Township of Barnegat and Barnegat Township Committee. Appellants, which own and operate mobile home parks in the Township of Barnegat, New Jersey, rent space in their parks called pads to tenants who own their own mobile homes which they place on the pads. Appellants challenged the Barnegat rent leveling ordinance which they assert, in concert with applicable state law, effects an unconstitutional taking of their property without compensation. We will reverse the order of June 20, 1989, and will remand the matter to the district court.

The State of New Jersey regulates mobile home parks through the Truth-in-Renting Act, N.J. Stat. Ann. § 46:8-43 et seq. (West 1989), dealing with landlord-tenant relationships in general, and the Mobile Home Rights Act, N.J. Stat. Ann. § 46:802 et seq. (West 1989), which is particularly concerned with mobile homes and mobile home parks.1 The Truth-in-Renting Act is designed to facilitate the dissemination of information to tenants regarding their rights and to ensure that dwelling leases do not contain provisions inconsistent with the clearly established legal rights of tenants or responsibilities of landlords. Thus, it is procedural in nature. The Mobile Home Rights Act substantively regulates the relationship between mobile home residents and park operators and, as germane to this case, prohibits park operators from requiring park tenants to move or remove a mobile home solely because of the sale of the home. N.J. Stat. Ann. § 46:8G-3a (West 1989). The park operators may, however, reserve the right to [349]*349approve buyers of homes in their parks as tenants, but cannot withhold approval unreasonably or exact a commission or a fee for the sale of homes unless earned as an agent pursuant to a written contract. Id. The Mobile Home Rights Act authorizes municipalities to adopt further regulations and licensing requirements for mobile home parks. N.J. Stat. Ann. § 46:8C-8 (West 1989). In a third law, New Jersey limits evictions of mobile home tenants to statutorily defined good cause. N.J.Stat. Ann. § 2A:18-61.1 (West 1987).

The Township of Barnegat has adopted a rent leveling ordinance, Ordinance No. 1977-19, which controls mobile home space rentals. Section 64.2 of the Barnegat Ordinance establishes the following formula for determination of rent:

§ 64.2 Determination of rents.
A. The establishment of rents between a landlord and a tenant to whom this ordinance is applicable shall hereafter be determined by the following provisions:
(1) At the expiration of the tenancy for a mobile home space, no landlord may request or receive any increase in the rental income or additional charges for that mobile home space from any tenant, new or continuing, which is greater than a combination of the following:
(a) Any increased cost to the landlord for utilities.
(b) Any increased cost to the landlord in mobile home space fees or license fee charged by the Township of Barne-gat pursuant to any duly adopted ordinance.
(c)Any amount equal to three and one-half percent (3V2%) of the previous twelve-month rental income for the mobile home space or the percentage increase in the consumer price index over the twelve-month period ending one hundred twenty (120) days prior to the date of application for said increase, whichever shall be less.2

Notably, the Barnegat Ordinance does not have a provision for vacancy decontrol permitting a mobile park owner to negotiate a new rent when a tenant removes a mobile home from a pad ending his tenancy and a new tenant moves in.

Appellants filed this action against the appellees in the United States District Court for the District of New Jersey on June 13, 1988, alleging that the Barnegat Ordinance takes their property without compensation by transferring possessory interests in it to their tenants in violation of the Fifth Amendment, made applicable to the appellees by the Fourteenth Amendment. The appellants alleged that such transfers constituted physical occupations of their properties in perpetuity and that these transferred possessory interests were marketable and valuable and were alienable by tenants who could realize income over the actual value of a mobile home by selling the mobile homes at a premium, reflecting the value of the pos-sessory interest in the pad.3

On April 27,1989 the appellees filed their motion to dismiss, asserting that the Barnegat Ordinance passes firmly established constitutional standards for regulatory ordinances.4 After oral argument, the [350]*350district court granted the motion in a memorandum opinion of June 20, 1989, holding that the Barnegat Ordinance, rather than effecting a taking by physical occupation, was a constitutional regulatory ordinance. This appeal, over which we have jurisdiction under 28 U.S.C. § 1291, was filed on July 13, 1989.

ANALYSIS

On this appeal we must determine whether the appellants have alleged facts sufficient to support a claim that the Barnegat Ordinance has affected their property rights to an extent requiring compensation. Inasmuch as this matter is before us on an appeal from an order granting a motion to dismiss, we assume that all the factual allegations in the complaint could be proven. On that basis we find that appellants have alleged sufficient facts to support a finding that the Ordinance, in conjunction with state law, provides for a permanent physical occupation constituting a taking without provision for compensation in violation of the Fifth and Fourteenth Amendments.

Inasmuch as the Fifth Amendment, applicable here through the Fourteenth Amendment, see Hawaii Housing Authority v. Midkiff, 467 U.S. 229, 231-32, 104 S.Ct. 2321, 2324, 81 L.Ed.2d 186 (1988), provides that “private property [shall not] be taken for public use, without just compensation,” we are concerned with the meaning of “property” and “taken” within the Amendment. The Supreme Court has eschewed a literal interpretation of “property”, instead adopting a more expansive approach described in Pruneyard Shopping Center v. Robins, 447 U.S. 74, 83 n. 6, 100 S.Ct. 2035, 2041 n. 6, 64 L.Ed.2d 741 (1980) as follows:

The term ‘property’ as used in the Takings Clause includes the entire ‘group of rights inhering in the citizen’s [ownership].’ It is not used in the ‘vulgar and untechnical sense of the physical thing with respect to which the citizen exercises rights recognized by law. [Instead it] denotefs] the group of rights inhering in the citizen’s relation to the physical thing, as the right to possess, use and dispose of it_’ [Citations omitted.]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Gentlemen's Retreat, Inc. v. City of Philadelphia
109 F. Supp. 2d 374 (E.D. Pennsylvania, 2000)
John E. Long, Inc. v. Borough of Ringwood
61 F. Supp. 2d 273 (D. New Jersey, 1998)
Avellino v. Herron
991 F. Supp. 730 (E.D. Pennsylvania, 1998)
Adamson Companies v. City of Malibu
854 F. Supp. 1476 (C.D. California, 1994)
Mobile Home Village, Inc. v. Mayor of Jackson
634 A.2d 533 (New Jersey Superior Court App Division, 1993)
Sandpiper Mobile Village v. City of Carpinteria
10 Cal. App. 4th 542 (California Court of Appeal, 1992)
Richardson v. City and County of Honolulu
802 F. Supp. 326 (D. Hawaii, 1992)
Yee v. City of Escondido
503 U.S. 519 (Supreme Court, 1992)
Azul Pacifico, Inc. v. City of Los Angeles
948 F.2d 575 (Ninth Circuit, 1991)
Midnight Sessions, Ltd. v. City of Philadelphia
945 F.2d 667 (Third Circuit, 1991)
Berkery v. United States
767 F. Supp. 660 (E.D. Pennsylvania, 1990)
Yee v. City of Escondido
224 Cal. App. 3d 1349 (California Court of Appeal, 1990)
White v. JUDICIAL INQUIRY AND REVIEW BD. OF PA.
744 F. Supp. 658 (E.D. Pennsylvania, 1990)
General Offshore Corp. v. Farrelly
743 F. Supp. 1177 (Virgin Islands, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
898 F.2d 347, 1990 U.S. App. LEXIS 3171, 1990 WL 19921, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pinewood-estates-of-michigan-and-philou-associates-ltd-v-barnegat-ca3-1990.