Unity Real Estate Co v. Hudson

CourtCourt of Appeals for the Third Circuit
DecidedMarch 29, 1999
Docket97-3234,97-3236
StatusUnknown

This text of Unity Real Estate Co v. Hudson (Unity Real Estate Co v. Hudson) 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
Unity Real Estate Co v. Hudson, (3d Cir. 1999).

Opinion

Opinions of the United 1999 Decisions States Court of Appeals for the Third Circuit

3-29-1999

Unity Real Estate Co v. Hudson Precedential or Non-Precedential:

Docket 97-3234,97-3236

Follow this and additional works at: http://digitalcommons.law.villanova.edu/thirdcircuit_1999

Recommended Citation "Unity Real Estate Co v. Hudson" (1999). 1999 Decisions. Paper 81. http://digitalcommons.law.villanova.edu/thirdcircuit_1999/81

This decision is brought to you for free and open access by the Opinions of the United States Court of Appeals for the Third Circuit at Villanova University School of Law Digital Repository. It has been accepted for inclusion in 1999 Decisions by an authorized administrator of Villanova University School of Law Digital Repository. For more information, please contact Benjamin.Carlson@law.villanova.edu. Volume 2 of 2

Filed March 29, 1999

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

NOS. 97-3234 and 97-3236

UNITY REAL ESTATE COMPANY, Appellant No. 97-3234

v.

MARTY D. HUDSON; MICHAEL H. HOLLAND; THOMAS O. S. RAND; ELLIOTT A. SEGAL; CARLTON R. SICKLES; GAIL R. WILENSKY; WILLIAM P. HOPGOOD; TRUSTEES OF THE UNITED MINE WORKERS OF AMERICA COMBINED BENEFIT FUND; THOMAS F. CONNORS; ROBERTS WALLACE; TRUSTEES OF THE 1992 UNITED MINE WORKERS OF AMERICA BENEFIT PLAN; UNITED STATES OF AMERICA (Intervenor in District Court)

LTV Corporation (LTV), NACCO Industries, Inc. (NACCO); Amicus Curiae

BARNES AND TUCKER COMPANY, Appellant No. 97-3236

MARTY D. HUDSON, Trustee of the United Mine Workers of America Combined Benefit Fund and Trustee of the 1992 United Mine Workers of America Benefit Plan; MICHAEL H. HOLLAND, Trustee of the United Mine Workers of America Combined Benefit Fund and Trustee of the 1992 United Mine Workers of America Benefit Plan; THOMAS O. S. RAND, Trustee of the United Mine Workers of America Combined Benefit Fund; ELLIOTT A. SEGAL, Trustee of the United Mine Workers of America Combined Benefit Fund; CARLTON R. SICKLES, Trustee of the United Mine Workers of America Combined Benefit Fund; GAIL R. WILENSKY, Trustee of the United Mine Workers of America Combined Benefit Fund; WILLIAM P. HOPGOOD, Trustee of the United Mine Workers of America Combined Benefit Fund; THOMAS F. CONNORS, Trustee of the 1992 United Mine Workers of America Benefit Plan; ROBERT G. WALLACE, Trustee of the 1992 United Mine Workers of America Benefit Plan; UNITED STATES OF AMERICA (Intervenor in the District Court)

LTV Corporation (LTV), NACCO Industries, Inc. (NACCO); Amicus Curiae

On Appeal From the United States District Court For the Western District of Pennsylvania (D.C. Civ. No. 93-cv-01802) District Judge: Honorable D. Brooks Smith

Argued: November 20, 1998

Before: BECKER, Chief Judge, ALDISERT and WEIS, Circuit Judges.

(Filed March 29, 1999)

4. Conclusion

We have evaluated the Coal Act against our traditional standards of proportionality and distaste for retroactivity, taking into account our deference to Congress on the evils to be addressed by the law. Ultimately, although the issue is close, we conclude that the Coal Act is targeted to address the problem of insufficient resources in the benefit funds and that it puts the burden on those who, in Congress's reasonable judgment, should bear it. The law's retroactivity is troubling, yet given the nature of the commitments at issue and the relationship of Coal Act liabilities to past acts in the industry, we cannot say that the Act violates due process.

IV. Categorical Takings

Unity and B&T also maintain that the Coal Act is an unconstitutional taking as applied to them. They ask us to

46 apply a categorical takings approach because, they claim, their businesses will be entirely destroyed if they have to pay benefits under the Act. In Eastern, the argument that the Coal Act would drive the plaintiff out of business entirely was not presented to the Court, and so the plaintiffs argue that they retain a viable takings claim.

Five Justices, however, rejected the idea that a law that imposed only a financial burden without identifying a particular property right could ever consitute a taking. The fact that in a particular case a financial burden might consume all of a particular entity's assets would not seem to change Justice Kennedy's analysis: "The Coal Act neither targets a specific property interest nor depends upon any particular property for the operation of its statutory mechanisms." Eastern, 118 S. Ct. at 2156 (Kennedy, J., concurring). Similarly, the dissent would require the governmental identification of "a specific interest in physical or intellectual property" in order tofind a compensable taking. Id. at 2161 (Breyer, J., dissenting). The reasoning of these five Justices was that any governmental regulation that costs a business money could become a taking if the plurality's standards prevailed, and that this would be an unacceptable result. See id. at 2155 (Kennedy, J., concurring); id. at 2162 (Breyer, J., dissenting). This reasoning is unaffected by the characterization of the burden as a "total" taking because it consumes all of a particular company's resources. Moreover, even the plurality gave no indication that it would extend the categorical takings approach outside the context of regulations of real property.

Because the Eastern Court was not confronted with this situation, however, we must set forth our reasons for rejecting it in greater detail. To date, the categorical approach has only been used in real property cases such as Lucas v. South Carolina, 505 U.S. 1003 (1992). In those cases, the concept of "total destruction" of value refers not to the owner's total assets but to some identifiable property interest. Indeed, even a multi-billionaire would be eligible for an award under a categorical takings approach if some small, distinct parcel of his holdings were condemned or rendered worthless through regulation. Therefore, the "total

47 destruction" language of cases concerning real property should not be mechanically applied to the situation at bar. See Branch v. United States, 69 F.3d 1571, 1576-77 (Fed. Cir. 1995) ("Because of `the State's traditionally high degree of control of commercial dealings,' the principles of takings law that apply to real property do not apply in the same manner to statutes imposing monetary liability." (quoting Lucas, 505 U.S. at 1027)).

The Supreme Court has repeatedly rejected the argument that a tax--even a tax on a small set of businesses--may violate due process or constitute a taking simply because it may force some of the regulated entities out of business:

The claim that a particular tax is so unreasonably high and unduly burdensome as to deny due process is both familiar and recurring, but the Court has consistently refused either to undertake the task of passing on the "reasonableness" of a tax that otherwise is within the power of Congress or of state legislative authorities, or to hold that a tax is unconstitutional because it renders a business unprofitable.

. . . . The premise that a tax is invalid if so excessive as to bring about the destruction of a particular business, the Court said, had been "uniformly rejected as furnishing no juridical ground for striking down a taxing act." [Magano Co. v. Hamilton, 292 U.S. 40,] 47 [(1934)]. Veazie Bank v. Fenno, 8 Wall. 533, 548, 19 L.Ed. 482 (1869); McCray v.

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

Related

Veazie Bank v. Fenno
75 U.S. 533 (Supreme Court, 1869)
McCray v. United States
195 U.S. 27 (Supreme Court, 1904)
Flint v. Stone Tracy Co.
220 U.S. 107 (Supreme Court, 1911)
Brushaber v. Union Pacific Railroad
240 U.S. 1 (Supreme Court, 1916)
Alaska Fish Salting & By-Products Co. v. Smith
255 U.S. 44 (Supreme Court, 1921)
Child Labor Tax Case
259 U.S. 20 (Supreme Court, 1922)
A. Magnano Co. v. Hamilton
292 U.S. 40 (Supreme Court, 1934)
City of Pittsburgh v. Alco Parking Corp.
417 U.S. 369 (Supreme Court, 1974)
Penn Central Transportation Co. v. New York City
438 U.S. 104 (Supreme Court, 1978)
Pierce v. Underwood
487 U.S. 552 (Supreme Court, 1988)
Lucas v. South Carolina Coastal Council
505 U.S. 1003 (Supreme Court, 1992)
Eastern Enterprises v. Apfel
524 U.S. 498 (Supreme Court, 1998)
Lindsey Coal Mining Company v. Chater
90 F.3d 688 (Third Circuit, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
Unity Real Estate Co v. Hudson, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unity-real-estate-co-v-hudson-ca3-1999.