Stevens v. City of Cannon Beach

854 P.2d 449, 317 Or. 131, 24 Envtl. L. Rep. (Envtl. Law Inst.) 20913, 1993 Ore. LEXIS 94
CourtOregon Supreme Court
DecidedJuly 1, 1993
DocketCC 90-2061; CA A68916; SC S39585
StatusPublished
Cited by28 cases

This text of 854 P.2d 449 (Stevens v. City of Cannon Beach) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. City of Cannon Beach, 854 P.2d 449, 317 Or. 131, 24 Envtl. L. Rep. (Envtl. Law Inst.) 20913, 1993 Ore. LEXIS 94 (Or. 1993).

Opinion

*133 VAN HOOMISSEN, J.

Plaintiffs appeal a trial court’s judgment dismissing their complaint for inverse condemnation for failure to state a claim. ORCP 21A(8). Plaintiffs own two vacant lots in the dry-sand area of the City of Cannon Beach (city). 1 They applied to defendants city and Oregon Department of Parks and Recreation (department) for permits to build a seawall as part of the eventual development of the lots for motel or hotel use. City and department denied the application on a number of grounds.

Plaintiffs then brought this inverse condemnation action, alleging that defendants’ denials, and the ordinances and rules on which they were based, resulted in a taking of plaintiffs’ property, in violation of Article I, section 18, of the Oregon Constitution, and the Fifth Amendment of the United States Constitution. Defendants moved to dismiss plaintiffs’ complaint, pursuant to ORCP 21A(8). Relying on State ex rel Thornton v. Hay, 254 Or 584, 462 P2d 671 (1969) (Thornton), the trial court allowed defendants’ motions .The Court of Appeals affirmed. Stevens v. City of Cannon Beach, 114 Or App 457, 835 P2d 940 (1992). For the reasons that follow, we affirm the decision of the Court of Appeals.

Plaintiffs are the owners of two vacant ocean front lots in Cannon Beach, which have been improved by construction of streets and provision of utilities. Although the lots are zoned for residential or motel use, parts of them are subject to city’s Active Dune and Beach Overlay zone. That zoning implements a portion of the Land Conservation and Development Commission’s (LCDC) Statewide Goal 18, which limits “residential developments and commercial and industrial buildings on beaches, and on active foredunes, and other foredunes which are conditionally stable and that are subject to ocean undercutting or wave overtopping.” Zoning Ordinance of Cannon Beach 79-4A, § 3.180. Parts of plaintiffs’ lots also are within the dry sand area of the beach, as defined by *134 the Oregon Beach Bill (Beach Bill). ORS 390.605 et seq. 2 Any person who wants to make an improvement on any property subject to ORS 390.640 must obtain a permit from the department. ORS 390.650.

Plaintiffs applied to city for a conditional use permit to build the seawall. City denied plaintiffs’ application, in part because city found that the eventual proposed commercial use of the property conflicted with LCDC Goal 18. 3 Plaintiffs also applied to department for a permit to build the seawall within the dry sand area of the beach. ORS 390.650. That permit also was denied. 4

*135 Plaintiffs then brought this inverse condemnation action against defendants, alleging that city’s denial of a permit is a taking of private property for a public purpose, in violation of Article I, section 18, 5 and the Fifth Amendment (an “as applied” taking), and that city’s Zoning Ordinance 79-4A, implementing LCDC Goal 18, on its face, is an unconstitutional taking of private property for a public purpose (“facial” taking). 6

Plaintiffs further alleged that department’s denial of a permit is an unconstitutional “as applied” taking of their property and that department’s rules implementing LCDC Goal 18 are an unconstitutional “facial” taking. Plaintiffs also claimed that compliance with other technical requirements for the proposed seawall could not result in the award of the permits and that, therefore, they had pursued all available means of relief with defendants.

Defendants filed ORCP 21A(8) motions to dismiss against plaintiffs’ complaint, arguing that plaintiffs’ takings allegations failed to state ultimate facts sufficient to constitute claims. The trial court granted defendants’ motions with prejudice, citing Thornton, supra. The court explained that defendants’ denials took nothing from plaintiffs, because plaintiffs’ property interests in the lots never have included development rights that could interfere with the public’s use of the dry sand area. 7 Accordingly, the court entered judgment for defendants.

In the Court of Appeals, plaintiffs argued that the trial court erred in holding that Thornton precluded any development of the dry sand area of their property. The Court *136 of Appeals disagreed and affirmed, quoting Thornton:

“ ‘The disputed area [dry sand area] is sui generis. While the foreshore is “owned” by the state, and the upland is “owned” by the patentee or record title holder, neither can be said to “own” the full bundle of rights normally connoted by the term “estate in fee simple.” * * *
“ ‘The rule in this case, based upon custom, is salutary in confirming a public right, and at the same time it takes from no man anything which he has had a legitimate reason to regard as exclusively his.’ 254 Or at 591,599.” Stevens v. City of Cannon Beach, supra, 114 Or App at 459-60.

The court also noted that the recent decision of the Supreme Court of the United States in Lucas v. South Carolina Coastal Council, 505 US_, 112 S Ct 2886, 120 L Ed 2d 798 (1992) (Lucas), did not require a different result. Ibid. Accordingly, the court concluded that the trial court did not err in dismissing plaintiffs’ taking claims.

On review, 8 plaintiffs argue that the Court of Appeals’ decision in this case conflicts with the recent decision of the Supreme Court of the United States in Lucas v. South Carolina Coastal Council, supra. Plaintiffs further argue that, because they acquired their property before this court’s 1969 decision in Thornton, the rule from Thornton may not be applied retroactively to them. 9 Finally, plaintiffs argue that the trial court and the Court of Appeals incorrectly interpreted Thornton as having superseded and canceled all development rights of private owners on the dry sand area of city, thus impliedly repealing the provisions of the Beach Bill that allow some development. 10 Plaintiffs do not ask this

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Bluebook (online)
854 P.2d 449, 317 Or. 131, 24 Envtl. L. Rep. (Envtl. Law Inst.) 20913, 1993 Ore. LEXIS 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-city-of-cannon-beach-or-1993.