SB Building Associates, L.P. v. Borough of Milltown

457 F. App'x 154
CourtCourt of Appeals for the Third Circuit
DecidedJanuary 13, 2012
Docket09-1600
StatusUnpublished

This text of 457 F. App'x 154 (SB Building Associates, L.P. v. Borough of Milltown) 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
SB Building Associates, L.P. v. Borough of Milltown, 457 F. App'x 154 (3d Cir. 2012).

Opinion

OPINION

SMITH, Circuit Judge.

Plaintiffs SB Building Associates, L.P., SB Milltown Industrial Realty Holdings, LLC, and Alsol Corporation challenge the alleged taking of their land by Defendants the Borough of Milltown, New Jersey, various Milltown officials, and the Milltown Ford Avenue Redevelopment Agency. On Defendants’ motion for judgment on the pleadings, the District Court rejected all of Plaintiffs’ federal claims, declined to exercise jurisdiction over Plaintiffs’ state law claims, and issued judgment in favor of Defendants. We will affirm.

I

On a motion for judgment on the pleadings, “judgment will not be granted unless the movant clearly establishes there are no material issues of fact, and he is entitled to judgment as a matter of law. We must view the facts presented in the pleadings and the inferences to be drawn therefrom in the light most favorable to the nonmoving party.” Sikirica v. Nationwide Ins. Co., 416 F.3d 214, 220 (3d *156 Cir.2005) (internal citation omitted). Our review is plenary. See id. at 219.

This case began with Defendants adopting a redevelopment plan for an area of Milltown, encompassing multiple properties, including the property owned by Plaintiffs. Since then, Defendants have taken steps toward redeveloping both the property in question and the surrounding area. In response, Plaintiffs have brought multiple state actions challenging the redevelopment under various legal theories. Thus far, Plaintiffs have been unsuccessful.

This is the first federal action filed by Plaintiffs. The claims involved — though closely related to the prior state actions— appear to be unique to this federal action. 1 Essentially, Plaintiffs contend that Mill-town’s initial resolution authorizing the redevelopment did not specifically and unambiguously designate the area as one in need of redevelopment, as required by New Jersey law. 2 As a result, all subsequent actions in pursuit of that redevelopment are unlawful, both as a taking without just compensation in violation of the Fifth Amendment, and as a violation of the Fourteenth Amendment right to substantive due process. On Defendants’ motion for judgment on the pleadings, the District Court rejected all of Plaintiffs’ federal claims, declined to exercise jurisdiction over Plaintiffs’ state law claims, and issued judgment in favor of Defendants. This appeal followed. 3

II

First, Plaintiffs challenge Defendants’ actions to redevelop the property as violating substantive due process. “A substantive due process violation is established if ‘the government’s actions were not rationally related to a legitimate government interest’ or ‘were in fact motivated by bias, bad faith or improper motive.’ ” Sameric Corp. of Del., Inc. v. City of Phila., 142 F.3d 582, 590 (3d Cir.1998) (quoting Parkway Garage, Inc. v. City of Phila., 5 F.3d 685, 692 (3d Cir.1993)) (internal quotation marks omitted). Plaintiffs do not contend that Defendants are motivated by bias, bad faith, or improper motive. Plaintiffs contend solely that Defendants’ actions are not rationally related to a legitimate government purpose because Milltown failed to first properly designate the property as an area in need of redevelopment.

Importantly, the Plaintiffs do not challenge Defendants’ contention that the property actually is in need of redevelopment. 4 Instead, Plaintiffs bootstrap their allegation that the Defendants failed to properly designate the property as one in need of redevelopment into a contention that such a failure renders Defendants’ actions arbitrary and violative of due process. This is incorrect. “Mere violation of a state statute does not infringe the federal Constitution.” Sameric, 142 F.3d at 596 (quoting Snowden v. Hughes, 321 U.S. 1, 11, 64 S.Ct. 397, 88 L.Ed. 497 (1944)).

*157 Plaintiffs would have us declare that the Defendants’ alleged failure to satisfy the procedural requirements of New Jersey law removes any logical basis for Defendants’ actions. But in determining whether Defendants’ actions violate substantive due process, we only ask whether the Defendants “could have had a legitimate reason” for taking steps toward redeveloping the property at issue. Sameric, 142 F.3d at 595 (quoting Pace Res., Inc. v. Shrewsbury Twp., 808 F.2d 1023, 1034, 1035 (3d Cir.1987)) (emphasis added). Given Defendants’ undisputed progress toward redeveloping the area in question— including adoption of a redevelopment plan, selection of a redeveloper, and completion of various administrative procedures — we can presume that the Defendants could indeed have had a legitimate reason: they could have believed that the property was in need of redevelopment. Again, the Plaintiffs never challenge whether the property is actually in need of redevelopment, only whether the Defendants properly declared it to be so. Such is not the making of a substantive due process claim.

Second, Plaintiffs challenge various actions of the Defendants as takings without just compensation. The Takings Clause of the Fifth Amendment does not prohibit valid governmental takings, but it does require that the government provide just compensation for the property it takes. Consistent with Supreme Court precedent, we have held that takings claims are not ripe until “(1) the government entity charged with implementing the regulations has reached a final decision regarding the application of the regulations to the property at issue’ (the finality rule’) and (2) the plaintiff has unsuccessfully exhausted the state’s procedures for seeking just compensation,’ so long as the procedures provided by the state were adequate.” Cnty. Concrete Corp. v. Town of Roxbury, 442 F.3d 159, 164 (3d Cir.2006) (quoting Williamson Cnty. Regional Planning Comm’n v. Hamilton Bank, 473 U.S. 172, 186, 194-95, 105 S.Ct. 3108, 87 L.Ed.2d 126 (1985)). The latter rule, requiring exhaustion of state remedies, applies regardless of whether the takings claim is facial or as-applied to a particular property. See Cnty. Concrete, 442 F.3d at 168.

For the purpose of this opinion, we will assume (without deciding) that SB has properly alleged a taking of its property. SB does not allege that it has exhausted or even attempted to exhaust state procedures for seeking just compensation. Rather, it asserts that New Jersey’s procedures for seeking just compensation are clearly inadequate and that pressing its claim in a state forum would be futile. We disagree.

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Related

Snowden v. Hughes
321 U.S. 1 (Supreme Court, 1944)
No. 94-3025
45 F.3d 780 (Third Circuit, 1995)
In Re Jersey Central Power and Light Company
400 A.2d 128 (New Jersey Superior Court App Division, 1979)

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Bluebook (online)
457 F. App'x 154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sb-building-associates-lp-v-borough-of-milltown-ca3-2012.