A. Def.: system of laws governing the relation between people with respect to resources

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Reciprocity of Benefits (Penn Coal)

1. modifies diminution in value test

2. many gov't regulations create simultaneous benefit & harm/detriment to owner

a. ex. limiting bldg to 2 floors - limit is detriment & benefit (neighbors have to do same - benefits your land)

3. if benefit is high enough, balances the harm & there is no taking

D4b. Investment-backed Expectations (Penn Central, pg. 1203)

1. modifies "too far" definition

2. taking based on reasonable expectations at time of purchase, not time of regulation

a. interference w/ primary use

b. doesn't aloow reasonable return

c. interferes w/ distinct investment-backed decisions (expectations)

3. eliminates purchasing for speculation on future value

a. speculation is not a distinct expectation

4. transferrable development rights

a. sometimes can transfer rts. to unrestricted property

5. case dealt w/ landmarking statute which restricted development (ie. air rights)

a. argued it affected only small # of people & was a taking

b. ct. said no taking

1. no distinct expectation of building a tower at time of purchase; primary use - train station

c. ct. said that since rts. could be transferred to other property, not as severe an effect

6. landmarking still controversial (usually not a taking)


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