FILED:
February 21, 2006
IN THE SUPREME COURT OF THE STATE OF
OREGON
HECTOR MACPHERSON;
BANNOCKBURN FARMS, INC.; CLACKAMAS COUNTY FARM
BUREAU;
LINN COUNTY FARM BUREAU; WASHINGTON COUNTY FARM BUREAU;
MARION
COUNTY FARM BUREAU; YAMHILL COUNTY FARM BUREAU;
DAVID T. ADAMS; MARK
TIPPERMAN; JAMES D. GILBERT;
NORTHWOODS NURSERY, INC.; DAVID A.
VANASCHE;
KEITH FISHBACK; FISHBACK NURSERY, INC.; JACK CHAPIN
and 1000
FRIENDS OF OREGON,
Plaintiffs-Respondents,
v.
DEPARTMENT OF ADMINISTRATIVE SERVICES,
Risk Management
Division,
by and through Laurie Warner, its Acting Director;
LAND
CONSERVATION AND DEVELOPMENT COMMISSION,
Department of Land Conservation and
Development,
by and through Lane Shetterly, its Director;
and THE STATE
OF OREGON DEPARTMENT OF JUSTICE,
by and through its Attorney General, Hardy
Myers,
Defendants-Appellants,
and
CLACKAMAS COUNTY;
MARION COUNTY;
and WASHINGTON COUNTY,
Defendants,
and
BARBARA PRETE;
EUGENE PRETE;
DOROTHY ENGLISH;
HOWARD
MEREDITH;
and JACKSON COUNTY;
Intervenors-Defendants-Appellants.
(CC No. 05C10444; SC S52875)
En Banc
On direct review of the General Judgment and Order dated October 24,
2005, filed in Marion County Circuit Court, Mary Mertens James, Judge.
Argued and submitted January 10, 2006.
Russell L. Baldwin, Lincoln City, argued the cause and filed the
briefs for appellant Howard Meredith.
Michael D. Jewett, Jackson County Counsel, Medford, argued the cause
and filed the brief for intervenor-appellant Jackson County.
Janet A. Metcalf, Assistant Attorney General, argued the cause for
appellants Department of Administrative Services, Land Conservation and
Development Commission, and The State of Oregon Department of Justice. With her
on the briefs were Hardy Myers, Attorney General, Mary H. Williams, Solicitor
General, Stephanie Striffler, Special Counsel to the Attorney General, Erika
Hadlock and Kaye E. McDonald, Assistant Attorneys General.
James L. Huffman, pro hac vice, Tigard, argued the cause for
intervenor-appellants Barbara Prete, Eugene Prete, and Dorothy English. With
him on the brief were Ross A. Day and David J. Hunnicutt.
Todd S. Baran, Portland, argued the cause and filed the brief for
respondents.
John M. Groen, of Groen Stephens & Klinge, LLP, Bellevue,
Washington, and Russell C. Brooks, Andrew C. Cook, Pacific Legal Foundation,
Bellevue, Washington, filed a brief on behalf of amicus curiae Pacific
Legal Foundation.
David B. Smith, Tigard, filed a brief on behalf of amici curiae
Dennis Rasmussen, Harvey Kempema, and Charles Hoff.
David J. Hunnicutt, Tigard, filed a brief on behalf of amici
curiae Oregon Cattlemen's Association, Oregon State Grange, and Oregonians
in Action.
Edward H. Trompke, of Jordan Schrader PC, Portland, filed a brief on
behalf of amici curiae National Association of Home Builders and Oregon
Home Builders Association. With him on the brief was Lisa Grump.
Glenn Klein, of Harrang Long Gary Rudnick, PC, Eugene, filed a brief
on behalf of amicus curiae League of Oregon Cities.
Jason T. Elder, of Sidley Austin Brown & Wood LLP, Hong Kong, and
Carter G. Phillips, Jay T. Jorgensen, and Brian R. Matsui, of Sidley Austin
Brown & Wood LLP, Washington, DC, and Scott A. LaGanga, Property rights
Alliance, Washington, DC, filed a brief on behalf of amici curiae
Property Rights Alliance, American Association of Small Property Owners,
Americans for Tax Reform, American Land Rights Association, Bluegrass Institute
for Public Policy Solutions, Citizens Against Government Waste, Citizens'
Alliance for Property Rights, Defenders of Property Rights, Illinois Policy
Institute, National Center for Public Policy Research, National Taxpayers
Union, Oregon Livestock Producers Association, Small Business and
Entrepreneurship Council, and The American Family Business Institute.
Dorothy S. Cofield, Cofield Law Office, Lake Oswego, filed a brief on
behalf of amicus curiae Washington Legal Foundation.
Richard M. Stephens, of Groen Stephens & Klinge LLP, Bellevue,
Washington, and William H. Mellor, Jeffrey T. Rowes, Institute for Justice,
Arlington, Virginia, and William R. Maurer, Institute for Justice, Washington
Chapter, Seattle, Washington, filed a brief on behalf of amicus curiae
Institute for Justice.
Edward J. Sullivan and Carrie A. Richter, of Garvey Schubert Barer,
Portland, filed a brief on behalf of amici curiae Oregon Chapter of the
American Planning Association and the American Planning Association.
Charles F. Hinkle, ACLU Foundation of Oregon, Inc., Portland, filed a
brief on behalf of amicus curiae ACLU Foundation of Oregon, Inc.
DE MUNIZ, C. J.
The judgment of the circuit court is reversed, and the case is
remanded for entry of judgment in favor of defendants and intervenors.
DE MUNIZ, C. J.
In this case, we
are required to determine the constitutionality of Ballot Measure 37 (2004), a
statutory enactment that the people approved at the 2004 General
Election.
(1) The measure requires government to either compensate landowners
for reductions of real property fair market value due to certain "land use
regulation[s]" or modify, remove, or not apply such regulations.
(2) Plaintiffs filed the present declaratory judgment action in
circuit court pursuant to ORS 28.020 and ORS 250.044,
(3) seeking to invalidate Measure 37 on various state and federal
constitutional grounds. The trial court agreed with plaintiffs, concluding that
Measure 37 (1) impermissibly intruded on the legislature's plenary power; (2)
violated the equal privileges and immunities guarantee of the Oregon
Constitution; (3) impermissibly suspended the laws in violation of the Oregon
Constitution; (4) violated the separation of powers principles of the Oregon
Constitution; and (5) violated the Due Process Clause of the Fourteenth
Amendment to the United States Constitution. As a result, the trial court
declared Measure 37 invalid and entered judgment for plaintiffs. Defendants and
intervenors appealed to this court pursuant to ORS 250.044(5). After
considering all the parties' arguments on appeal, we reverse the judgment of
the trial court.
I. FACTS AND PROCEDURAL BACKGROUND
In general, Measure 37 requires state and local governments to
compensate private property owners for the reduction in the fair market value
of their real property that results from any land use regulations of those
governmental entities that restrict the use of the subject properties. As an
alternative to the requirement of compensation, however, Measure 37 allows
state and local governments to "modify, remove or not * * * apply the land use
regulation or land use regulations to allow the owner to use the property for a
use permitted at the time the owner acquired the property." ORS 197.352(8).
Measure 37 limits compensation and relief from land use regulations to property
owners who acquired their property prior to the enactment of the land use
regulations that provide the basis for their claims. The people enacted Measure
37 through the initiative process at the 2004 General Election, and the measure
became effective on December 2, 2004.
On January 14, 2005, plaintiffs
filed the present action, pursuant to ORS 28.020 and ORS 250.044, challenging
the validity of Measure 37. Plaintiffs sought a declaration that the measure
was unconstitutional based on several provisions of both the Oregon
Constitution and the United States Constitution. Plaintiffs named as defendants
the Department of Administrative Services, the Land Conservation and
Development Commission, and the Department of Justice (collectively,
"defendants").
(4) Five parties also intervened as defendants in the action,
including the chief petitioners for the initiative petition that ultimately was
certified to the ballot as Measure 37 (collectively, "intervenors").
(5)
Before the trial court, the parties moved for summary judgment
respecting plaintiffs' constitutional challenges. Intervenors also raised
arguments regarding plaintiffs' standing to challenge Measure 37 and other
aspects of justiciability. Following a hearing on September 13, 2005, the trial
court issued a written opinion granting plaintiffs' motion for summary judgment
and denying the summary judgment motions filed by defendants and intervenors;
the trial court also rejected intervenors' arguments regarding standing and
justiciability. In so ruling, the trial court accepted certain of plaintiffs'
constitutional arguments and entered a judgment on October 24, 2005, declaring
that Measure 37 was unconstitutional and invalid. Pursuant to ORS 250.044(5),
see ___ Or at ___ n 3 (slip op at 1 n 3), defendants and the intervenors
appealed that judgment directly to this court.
II. JUSTICIABILITY
We first address the various justiciability issues that certain
intervenors have raised. Intervenor English contends that the trial court erred
in holding that plaintiffs have standing to assert their claims because none of
the plaintiffs can show an actual, concrete impact stemming from Measure 37. We
reject Intervenor English's standing argument for the reasons described
below.
As noted earlier, plaintiffs brought this action under ORS 28.020,
Oregon's declaratory judgment statute. To establish standing under ORS 28.020
in a case in which there are multiple plaintiffs, only one plaintiff must show
"some injury or other impact upon a legally recognized interest beyond an
abstract interest in the correct application or validity of a law."
League of
Oregon Cities v. State of Oregon, 334 Or 645, 658, 56 P3d 892 (2002).
Plaintiff Adams meets that criterion. Plaintiffs allege in their
complaint that Adams owns residential property in Clackamas County. Adams's
neighbor filed a Measure 37 claim, seeking to subdivide his property for
residential construction. Under applicable land use regulations, the neighbor
could not subdivide his property for that purpose. Prior to the trial court's
decision in this case, the Department of Land Conservation and Development
decided not to apply the applicable land use regulations and granted permission
to the neighbor to subdivide his property. Plaintiffs allege that Adams will
suffer the following concrete harms stemming from his neighbor's successful
Measure 37 claim: (1) diminished water quantity and quality available to
Adams's property; (2) increased traffic; (3) an increased tax burden due to
increased enrollment in the local school system; and (4) increased pollution.
We conclude that plaintiffs' allegations concerning Adams are sufficiently
plausible and concrete to support standing. See League of Oregon
Cities, 334 Or at 661 (concluding that plaintiffs who submitted evidence
regarding "plausible, concrete ramifications" of implementation of ballot
measure at issue had satisfied standing requirement of ORS 28.020).
Intervenor Meredith argues that this case is not justiciable for
another reason. He contends that plaintiffs' claims are not ripe because their
facial challenge to Measure 37 does not present an actual controversy.
According to Meredith, an actual controversy does not arise until after a
claimant can bring an action for compensation under Measure 37, which,
according to the measure, is after 180 days have elapsed following a written
demand for compensation. ORS 197.352(6). We disagree.
This court has explained that a ripe claim for
declaratory judgment under ORS 28.020 "must involve present facts as opposed to
a dispute which is based on future events of a hypothetical issue." Brown v.
Oregon State Bar, 293 Or 446, 449, 648 P2d 1289 (1982). Plaintiffs' claims
involve present facts. Measure 37 became effective on December 2, 2004. As
previously explained, plaintiff Adams's neighbor is a Measure 37 claimant. The
Department of Land Conservation and Development has decided not to apply the
applicable land use regulations in response to the neighbor's claim, thereby
allowing the neighbor to subdivide his property. Those facts are "present
facts" giving rise to a justiciable controversy, not hypothetical future
events.
(6)
Intervenor Meredith also contends that plaintiffs' claims are not
justiciable because plaintiffs failed to exhaust their administrative remedies.
According to Meredith, plaintiffs were required to comply with procedures
outlined in the Oregon Administrative Procedures Act, ORS 183.310 to 183.750,
before filing an action to challenge the validity of Measure 37. That argument
has no merit for the simple reason that Meredith has not identified any
administrative scheme -- and we know of none -- that, either inherently or by
statutory directive, requires plaintiffs to proceed through any
administrative steps before challenging the constitutionality of Measure 37
under ORS 250.044.
In sum, we conclude that none of intervenors' arguments respecting
justiciability of plaintiffs' claims is well taken. We turn to the merits.
III. CONSTITUTIONALITY OF MEASURE 37
As noted, the trial court declared Measure 37 to be unconstitutional
on five grounds. In this court, in addition to supporting the five grounds that
the trial court identified, plaintiffs also renew two constitutional challenges
to Measure 37 that the trial court rejected: (1) Measure 37 impermissibly
waives sovereign immunity; and (2) Measure 37 violates separation of powers
principles by encroaching on executive power and by improperly delegating
legislative power without adequate safeguards. We discuss plaintiffs'
constitutional challenges below, beginning with plaintiffs' arguments under the
Oregon Constitution. See, e.g., Sealey v. Hicks, 309 Or
387, 397, 788 P2d 435 (1990), overruled in part on other grounds by
Smothers v.
Gresham Transfer, Inc., 332 Or 83, 23 P3d 333 (2001) ("As is our normal
practice, we consider * * * state constitutional challenges before moving on to
federal issues.").
A. Oregon Constitution
1. Intrusion on the Plenary Power to Legislate
We begin with the trial court's conclusion that Measure 37 is invalid
because it unconstitutionally "imposes limitations on government's exercise of
plenary power to regulate land use in Oregon[.]" For the reasons set forth
below, we disagree with that conclusion.
At its outset, Measure 37 provides:
"If a public entity enacts or enforces a new land use regulation or
enforces a land use regulation enacted prior to December 2, 2004, that
restricts the use of private real property or any interest therein and has the
effect of reducing the fair market value of the property, or any interest
therein, then the owner of the property shall be paid just
compensation."
ORS 197.352(1). In lieu of providing just compensation, the measure
alternatively allows "the governing body responsible for enacting the land use
regulation [to] modify, remove, or not * * * apply the land use regulation or
land use regulations." ORS 197.352(8).
In the trial court's view, the foregoing provisions of Measure 37
required the government either to "pay to govern," if it wished to enforce a
particular land use regulation, or to refrain from enforcing the regulation in
some manner. Based on that reading of the measure, the court held that the
measure so eviscerated the legislature's plenary power to regulate land use
that the fact "that a later legislature could decide to repeal [the measure's]
condition on enforcement [did] not make it permissible."
In our view, the trial court misunderstood the nature of the plenary
legislative power. In Oregon, the Legislative Assembly and the people, acting
through the initiative or referendum processes, share in exercising legislative
power. See Or Const, Art IV, §§ 1(1), (2)(a), (3)(a) (vesting
in both bodies the power to propose, enact, and reject laws). Respecting the
nature of that power, this court previously has explained that
"[p]lenary power in the legislature, for all purposes of civil
government, is the rule, and a prohibition to exercise a particular power is an
exception. It, therefore, is competent for the legislature to enact any law not
forbidden by the constitution or delegated to the federal government or
prohibited by the constitution of the United States."
Jory v. Martin, 153 Or 278, 285, 56 P2d 1093 (1936). Thus,
limitations on legislative power must be grounded in specific provisions of
either the state or federal constitutions. See, e.g.,
State v.
Hirsch/Friend, 338 Or 622, 639, 114 P3d 1104 (2005) ("any
constitutional limitations on the state's actions must be found within the
language or history of the constitution itself" (internal quotation marks and
citation omitted)).
Plaintiffs argue that constitutional limits on legislative power need
not be express, but can be implied. We agree with that general proposition. As
this court previously has stated:
"Our constitution, like all other state constitutions, is not to be
regarded as a grant of power, but rather a limitation upon the powers of the
legislature. The people[,] in adopting it, committed to the legislature the
whole law making power of the state, which they did not expressly or
impliedly withhold."
Wright v. Blue Mt. Hospital Dist., 214 Or 141, 144-45, 328 P2d
314 (1958) (emphasis added). However, even implied limitations must find their
source in some constitutional provision. That is so because, "without such a
conflict with a written constitutional provision, there is no basis for any
general judicial power to invalidate a law if it is 'bad' enough." Hans Linde,
Without "Due Process: Unconstitutional Law in Oregon," 49 Or L Rev 125,
130 (1970). A treatise that plaintiffs themselves cite recognizes that same
principle:
"The inhibition of a Constitution may be either express or implied;
that is[,] the Constitution may expressly prohibit any specified act of the
legislature, or the Constitution by its inherent terms may of necessity
prohibit certain acts of the legislature by reason of inherent conflict that
would arise between the terms of the Constitution and the power claimed in
favor of the legislature."
Thomas M. Cooley, 1 A Treatise on the Constitutional
Limitations 176 n 4 (8th ed 1927) (emphasis added). Here, however,
plaintiffs cite no constitutional provision -- and we know of none -- that
either expressly or impliedly limits the power of the Legislative Assembly or
the people, exercising their initiative power, to authorize state or local
entities to decide, in accordance with Measure 37, whether to pay just
compensation or to modify, remove, or not apply certain land use
regulations.
(7)
Not only have plaintiffs failed to ground their
argument in the Oregon Constitution, but the premise of their argument is also
mistaken. Contrary to the assumption underlying their argument, Oregon's
legislative bodies have not divested themselves of the right to enact new land
use regulations in the future. Nothing in Measure 37 forbids the Legislative
Assembly or the people from enacting new land use statutes, from repealing all
land use statutes, or from amending or repealing Measure 37 itself. Simply
stated, Measure 37 is an exercise of the plenary power, not a
limitation on it.
(8) The measure does not impair the plenary power of the Legislative
Assembly or the people's exercise of their initiative power. The trial court's
contrary conclusion was error.
2. Violation of Equal Privileges and Immunities
As noted earlier, Measure 37 limits application of its compensation
and relief provisions to those landowners who acquired their property prior to
enactment of the land use regulations that they wish to avoid. Based on that
provision, the trial court held that Measure 37 violated Article I, section 20,
of the Oregon Constitution because the measure favored what the trial court
characterized as a "true class" comprised of property owners who obtained their
properties before the relevant land use regulations became effective (the
"preowners"). The measure, according to plaintiffs and the trial court,
therefore disfavored property owners who obtained their properties after the
relevant land use regulations became effective (the "postowners"). After
concluding that Measure 37 implicated "true classes," the trial court applied a
so-called "rational basis" review and concluded that Measure 37 was not
rationally related to any legitimate government interest that would justify
treating those "classes" differently. For the reasons set forth below, we
disagree with that analysis.
Article I, section 20, provides:
"No law shall be passed granting to any citizen or class of citizens
privileges, or immunities, which, upon the same terms, shall not equally belong
to all citizens."
Article I, section 20, guarantees equality of privileges to each
individual citizen as well as to "classes" of citizens. See State v.
Clark, 291 Or 231, 239, 63 P2d 810 (1981) (Article I, section 20, is a
guarantee against unjustified denial of equal privileges as much as against
unjustified differentiation among classes of citizens). Some litigants seeking
the protection of Article I, section 20, claim -- as do plaintiffs here -- that
a particular "class," of which they are not a member, unlawfully has been
accorded a special privilege or status. Other litigants claim that they are
members of a "class" suffering disparate treatment without legitimate reason.
In either situation, this court consistently has held that the protection that
Article I, section 20, affords is available to only those individuals or groups
whom the law classifies according to characteristics that exist apart from the
enactment that they challenge. See, e.g., Sealey, 309 Or at 397
(classes that the challenged law itself creates are not considered "classes"
for purposes of Article I, section 20). That is so because, "every law itself
can be said to 'classify' what it covers [as distinct] from what is excludes."
Clark, 291 Or at 240.
Indeed, this court consistently has rejected challenges to statutes
under Article I, section 20, when the statutes themselves have created the
alleged classes. For example, in Hale v. Port of Portland, 308 Or 508,
525, 783 P2d 506 (1989), overruled in part on other grounds by
Smothers, 332 Or 83, this court rejected an Article I, section 20,
challenge to the Oregon Tort Claims Act (OTCA) because the alleged disfavored
class (victims of governmental torts) existed as a class only by virtue of the
statutory scheme. Similarly, in Greist v. Phillips, 322 Or 281, 292, 906
P2d 789 (1995), this court held that a statute capping noneconomic damages in
wrongful death actions at $500,000 did not violate Article I, section 20. The
court explained that the challenged law itself created the distinction between
persons who could receive more than $500,000 and persons who could not, and
that Article I, section 20, did not bar the legislature from creating such
distinctions. Id.
It is true that, before the adoption of Measure 37, certain property
owners had acquired their property prior to the enactment of certain relevant
land use regulations, while others had acquired their property after the
enactment of certain relevant land use regulations. That distinction between
preowners and postowners, however, is significant only by virtue of Measure 37
itself. In other words, the date that an owner acquired property has no
significance apart from Measure 37.
Nevertheless, plaintiffs contend that the classes that Measure 37
creates are "fixed" or "closed" and, for that reason, Measure 37 violates
Article I, section 20. In so arguing, however, plaintiffs misconstrue this
court's precedents in that regard. Plaintiffs correctly note that this court
has stated that "[l]aws which are left open for individuals voluntarily to
bring themselves within a favored class do not violate Article I, section 20."
Wilson v. Dept. of Rev., 302 Or 128, 132, 727 P2d 614 (1986). However,
plaintiffs go on to argue that the converse of that proposition also is true;
i.e., they assert that a law that provides a privilege or immunity to a
"fixed" or "closed" class must be invalid.
This court's decisions in Sealey, Hale, and
Greist all demonstrate that that assertion is incorrect. The statutes at
issue in those cases all involved classes that were "closed"; that is, the
persons allegedly disfavored by the statutes at issue could not "bring
themselves within" the classes of persons who were favored. In Hale, for
example, victims of governmental torts whose damages were limited under the
OTCA could not alter the identity of the alleged tortfeasor to evade that
limitation. 308 Or at 524-25. Similarly, in Sealey, persons injured in
products liability actions could not alter the sources or timing of their
injuries to avoid the applicable statute of repose, ORS 30.905. Sealey,
309 Or at 397-98. Yet, neither statutory scheme violated Article I, section 20.
A moment's reflection illustrates that the foregoing refutation of
plaintiff's theory must be correct. Were it not, plaintiffs' theory would mean
that the legislature would be precluded from enacting a law benefitting, for
example, Vietnam veterans or Gulf War veterans, both closed classes. Here, the
postowners' inability to "bring themselves within" the class of preowners does
not render Measure 37 invalid. We conclude that Measure 37 does not offend
Article I, section 20, as plaintiffs contend.
3. Impermissible Suspension of the Laws
Article I, section 22, of the Oregon Constitution provides that "[t]he
operation of the laws shall never be suspended, except by the Authority of
the Legislative Assembly." (Emphasis added.) The trial court accepted
plaintiffs' view that Measure 37 had the effect of suspending land use
regulations, but only for certain property owners -- that is, those who
acquired their property before the land use regulations in question had become
effective. As already explained, the trial court then held that "suspending"
the laws in that manner violated Article I, section 20. In the trial court's
view, Measure 37 therefore also violated Article I, section 22, because the
suspension clause set out in that constitutional provision "must not [be used]
to provide a privilege or immunity that is not available to all."
According to defendants, the trial court's conclusion is wrong in two
respects. First, they argue that Measure 37 does not constitute a "suspension
of laws"; second, they argue that, even if Measure 37 did effect a "suspension
of laws," Article I, section 22, does not operate as a limit on the
legislature. In response, plaintiffs echo the trial court's conclusion that, by
allowing only certain property owners to avoid land use regulations, Measure 37
effects only a limited suspension of the land use regulations. And, because
Article I, section 22, authorizes only general suspensions of the laws,
plaintiffs argue, it follows that Measure 37 is unconstitutional. As described
below, we disagree with plaintiffs and conclude that Article I, section 22,
does not operate to invalidate Measure 37.
We first address the wording of the suspension clause of Article I,
section 22, which has remained unchanged since the adoption of the Oregon
Constitution in 1859. See Charles Henry Carey, The Oregon
Constitution and Proceeding and Debates of the Constitutional Convention of
1857 403 (1926) (citing original constitution). A nineteenth-century
dictionary defines "suspend," for our purposes here, as "to interrupt; to
intermit; to cause to cease for time"; "to stay, to delay; to hinder from
proceeding for a time"; or "to cause to cease for a time from operation or
effect." Noah Webster, 1 An American Dictionary of the English Language,
s.v. "suspend" (Johnson 1828); see also
Rico-Villalobos
v. Guisto, 339 Or 197, 206, 118 P3d 246 (2005) (when analyzing terms in
original Oregon Constitution, court examines meanings of terms as framers would
have understood them). Applying those definitions, it is clear that Measure 37
does not "cause to cease for a time," "delay," or "interrupt" any land use
regulation. Instead, it authorizes a governing body to "modify, remove, or not
* * * apply" certain such regulations in specific situations. The measure is,
in effect, an amendment of the land use regulations in those particulars. No
law is "suspended"; all laws not amended remain in effect.
Nothing in the history of the
adoption of Article I, section 22,
(9) or this court's case law contradicts the foregoing reading of the
text of that provision.
(10) See Priest v. Pearce, 314 Or 411, 414-15, 840 P2d
65 (1992) (describing methodology for analyzing constitutional provision). The
trial court's conclusion that Measure 37 unconstitutionally suspended land use
regulations was error.
4. Violation of Separation of Powers Principles
Article III, section 1, of the Oregon Constitution provides:
"The powers of the Government shall be divided into three seperate
[sic] departments, the Legislative, the Executive, including the
administrative, and the Judicial; and no person charged with official duties
under one of these departments, shall exercise any of the functions of another,
except as in this Constitution expressly provided."
The trial court held that Measure 37 violated Article III, section 1,
to the extent that the measure
"purports to permit the legislature to delegate to public entities a
limit on the legislature's plenary power, the authority to treat a class of
property owners * * * differently from other property owners * * *, and the
suspension of land use regulations for a specified group of property owners."
As stated, the trial court's separation of powers holding explicitly
relied on its earlier conclusions that Measure 37 impermissibly intruded on the
legislature's plenary power, violated Article I, section 20, and violated
Article I, section 22. We already have concluded that Measure 37 does none of
those things. It follows that the trial court's stated reasons for holding that
Measure 37 violated Article III, section 1, were also incorrect.
Plaintiffs, however, raise two additional separation of powers
arguments in support of the trial court's ruling. Specifically, plaintiffs
contend that Measure 37 violates Article III, section 1, because it (1)
intrudes on the executive power; and (2) fails to provide adequate safeguards
to prevent improper use of the power conferred.
Because the roles of governmental actors frequently overlap, this
court has held that the separation of powers doctrine does not require an
"absolute separation between the departments of government." Rooney v.
Kulongoski, 322 Or 15, 28, 902 P2d 1143 (1995). Instead, a separation of
powers analysis under the Oregon Constitution involves two inquiries: (1)
whether one department of government has "unduly burdened" the actions of
another department where the constitution has committed the responsibility for
the governmental activity in question to that latter department; and (2)
whether one department has performed functions that the constitution commits to
another department. Id. (citations omitted).
Plaintiffs focus on the second inquiry. Measure 37 provides that "the
governing body responsible for enacting the land use regulation may modify,
remove or not * * * apply" that land use regulation. ORS 197.352(8). Plaintiffs
contend that, in so providing, Measure 37 improperly allows legislative bodies,
rather than the executive, to determine whether and when to enforce a general
law. Specifically, plaintiffs appear to argue that, because "enacting" a land
use regulation is a legislative function, the "governing body" deciding whether
to modify, remove, or not apply a particular regulation cannot be the same body
that enacted the legislation. Plaintiffs' argument, however, rests upon two
assumptions: (1) the "governing body" referred to in the measure can be only a
legislative body; and (2) the decision to pay compensation or to modify,
remove, or not apply a land use regulation can be only an executive function.
As explained below, plaintiffs' assumptions do not support the type of
separation of powers violation required for plaintiffs' argument to
succeed.
As noted, Measure 37 directs "the governing body responsible
for enacting the land use regulation" in question to decide whether to pay
compensation to property owners who acquired their property prior to the
enactment of that regulation or to "modify, remove or not * * * apply" that
regulation. ORS 197.352(8) (emphasis added). That provision does not
concentrate executive power in the legislative branch. Indeed, if the
"governing body" in question is a state agency that is itself part of the
executive branch, then Measure 37 removes no executive function from the
executive branch and devolves none on its legislative counterpart.
The flaw in plaintiffs' argument becomes even more clear when the
"governing bodies" in question are comprised of local city or county officials.
Such bodies are not solely legislative, executive, or judicial. As this court
has explained,
"members [of local general-purpose governing bodies] are politically
elected to positions that do not separate legislative from executive and
judicial power on the state or federal model; characteristically they combine
lawmaking with administration that is sometimes executive and sometimes
adjudicative."
1000 Friends of Oregon v. Wasco Co. Court, 304 Or 76, 82, 742
P2d 39 (1987); see also Fasano v. Washington Co. Comm., 264 Or
574, 580, 507 P2d 23 (1973) ("Local and small decision groups are simply not
the equivalent in all respects of state and national legislatures.").
Plaintiffs' argument fails to undermine the constitutional permissibility of
the "combined functions" performed by local government bodies. In our view,
plaintiffs have not demonstrated -- as they must to prevail on their separation
of power argument -- that Measure 37 improperly delegates executive power to
legislative bodies.
Plaintiffs also assert that Measure 37 delegates legislative authority
without providing adequate safeguards against "arbitrary and deleterious
exercise of the power" so delegated. We continue to take the following view,
first expressed by this court nearly a half century ago: "There is no
constitutional requirement that all delegation of legislative power must be
accompanied by a statement of standards circumscribing its exercise." Warren
v. Marion County, 222 Or 307, 313, 353 P2d 257 (1960). Rather, the
procedure established for the exercise of that power must furnish adequate
safeguards against the arbitrary exercise of the delegated power. Id. at
314. Measure 37 does just that. The measure provides a cause of action for
claimants seeking compensation. ORS 197.352(6). Further, avenues exist for both
claimants and interested third parties, such as plaintiffs, to obtain judicial
review of the decisions that local governing bodies make in accordance with the
measure. Those avenues provide adequate safeguards against the arbitrary
exercise of power, as Warren requires. We therefore hold that Measure 37
does not violate the separation of powers principles encompassed in Article
III, section 1.
5. Impermissible Waiver of Sovereign Immunity
Article IV, section 24, of the Oregon Constitution authorizes the
state to waive its sovereign immunity, as follows:
"Provision may be made by general law, for bringing suit against the
State, as to all liabilities originating after, or existing at the time of the
adoption of this Constitution; but no special act authorizeing [sic]
such suit to be brought, or making compensation to any person claiming damages
against the State, shall ever be passed."
Plaintiffs contend that ORS 197.352(6) impermissibly
waives sovereign immunity. That section authorizes a Measure 37 claimant to
bring an action for compensation, including reasonable attorney fees, expenses,
and costs, if a challenged land use regulation continues to apply to the
subject property more than 180 days after the claimant filed a written Measure
37 claim. ORS 197.352(6).
(11) Plaintiffs assert that Article IV, section 24, does not extend
to liabilities for economic consequences of regulation. As explained below, we
disagree.
Article IV, section 24, allows the state to waive immunity "as to
all liabilities originating after, or existing at the time of the
adoption of this Constitution." Or Const, Art IV, § 24 (emphasis added).
That section neither creates nor limits sovereign immunity. As this court
discussed in Hale, Article XVIII, section 7, of the Oregon Constitution
incorporated sovereign immunity from the Oregon Territory's pre-existing law.
Hale, 308 Or at 514-15; see also Or Const, Art XVIII, § 7
(declaring that territorial laws continued through adoption of Oregon
Constitution). "Sovereign immunity originated in the rule that the English King
could not be sued in his own courts." Hale, 308 Or at 513. Article IV,
section 24, in turn, allocates the power to waive sovereign immunity, within
specified limits, to the legislature. Id. at 516.
Plaintiffs contend that neither the Legislative
Assembly nor the people exercising their initiative power are permitted to
waive sovereign immunity simply to "subject the state to suit for purely
consequential economic harm caused by past or prospective regulation." However,
plaintiffs point to nothing in Article IV, section 24, itself, or in case law
interpreting that section, that so limits the legislative authority.
(12)
Nothing in Article IV, section 24, or, so far as we
are aware, in any other state constitutional provision, forbids the state from
deciding that it will compensate property owners for the economic consequences
of the state's land use regulations, including waiving the state's sovereign
immunity to permit those owners to assert their claims in court. We conclude
that Article IV, section 24, does not bar Oregon's legislative bodies from
waiving immunity as the people have chosen to do in enacting Measure 37.
(13)
B. United State Constitution: Due Process Clause
Having rejected all plaintiffs' state constitutional
arguments, we turn to plaintiffs' arguments based on the United States
Constitution. Plaintiffs' federal constitutional arguments are limited to the
Fourteenth Amendment's Due Process Clause.
(14) Plaintiffs' due process claim raises both the procedural and
substantive components of due process.
As to the procedural component, the trial court held
that Measure 37 violated the procedural due process rights of affected
nonclaimant property owners because the measure failed to provide
predeprivation procedures for those property owners to challenge governmental
actions that adversely would affect their property interests. The trial court
held that, because nearby property owners may suffer "irreparable harm" as a
result of a governmental decision to modify, remove, or not apply a land use
regulation, property owners so affected "must be given notice and an
opportunity to be heard before a public entity decides the Measure 37
claim." (Emphasis in original.)
(15)
In so ruling, the trial court asked more of Measure 37 than the
measure was required to deliver. While it is true that Measure 37 does not
expressly provide the predeprivation procedures that the trial court outlined,
it does not follow that that omission renders Measure 37 unconstitutional under
the Fourteenth Amendment. The foregoing is true because, at least for purposes
of this case, plaintiffs are asserting only a facial challenge to Measure 37.
Plaintiffs therefore must demonstrate that Measure 37 affirmatively permits the
government to deprive plaintiffs of their property without affording procedural
due process. See United States v. Salerno, 481 US 739, 745, 107 S
Ct 2095, 95 L Ed 2d 697 (1987) (plaintiffs asserting facial challenge bear
"heavy burden" to demonstrate that statute cannot be constitutionally applied
under any circumstance).
Nothing in Measure 37 denies predeprivation procedures to individuals
such as plaintiffs who may wish to challenge particular governmental actions
that may harm individual property interests. Neither does Measure 37 preclude
responsible governmental entities from implementing such predeprivation
procedures. To the contrary, Measure 37 contemplates that a "metropolitan
service district, city, or county, or state agency may adopt or apply
procedures for the processing of claims under this act[.]" ORS 197.352(7). And,
as the trial court noted, for claims that a state entity must decide, the state
has adopted rules that provide for notice and an opportunity to be heard to
affected third parties. See OAR 125-145-0080 (outlining procedures).
Plaintiffs do not contend that those procedures are insufficient or that
similar procedures adopted by local officials would be insufficient. Therefore,
even assuming that predeprivation procedures are constitutionally required for
Measure 37 claims in the manner that plaintiffs contend -- an issue that we do
not decide here -- many circumstances exist in which applying the statute would
not violate the constitution. See Salerno, 481 US at 745 (to
succeed in a facial challenge under Due Process Clause, "the challenger must
establish that no set of circumstances exists under which [the statute] would
be valid"). We therefore conclude that Measure 37, on its face, does not
violate plaintiffs' procedural due process rights.
The trial court also concluded that Measure 37 violated the
substantive component of the Fourteenth Amendment's Due Process Clause. The
trial court explained that, although the measure did not implicate a
fundamental right, "the government, through the initiative process,
could not have had a legitimate reason for enacting Measure 37,
because, as described earlier, the compensation provision of Measure 37 impedes
the exercise of the plenary power." (Emphasis in original.) On appeal,
plaintiffs argue that the trial court correctly held that Measure 37 was unable
to withstand rational basis review, i.e., that the measure was not
reasonably related to a legitimate state interest.
The trial court's express reasons for declaring that Measure 37
offends principles of substantive due process were erroneous, because, as we
already have explained, the premises on which that court relied were themselves
incorrect. Plaintiffs, however, offer an additional rationale for the trial
court's ruling that that court did not address. Plaintiffs assert that
compensating persons who suffer economic loss due to governmental regulation
furthers "private interests," which is not a legitimate state interest. We
address that argument below.
As was true respecting their waiver-of-sovereign-immunity arguments,
plaintiffs assert in this argument that, before the enactment of Measure 37, no
law required governments to offer such compensation. Plaintiffs reason from
that fact that it would be "manifestly destructive" to society to burden the
public with compensating individuals when the government has enacted land use
regulations for the public good. Additionally, according to plaintiffs, Measure
37 allows claimants to demand payment for the economic impact of a regulatory
scheme that did not rise to the level of a taking under the Fifth Amendment to
the United States Constitution; such an allowance would be "reverse extortion,"
according to plaintiffs.
We find none of those arguments persuasive. When a
statute does not implicate a fundamental right,
(16) a party challenging that statute on substantive due process
grounds must show that the statute bears no reasonable relation to a legitimate
state interest. See Washington v. Glucksberg, 521 US 702, 722,
117 S Ct 2258, 138 L Ed 2d 772 (1997) (stating principle). Plaintiffs cannot
meet that burden. Although it is true that neither the state nor the federal
constitution requires compensation to individuals who suffer any loss in
property value as a consequence of land use regulation, Pennsylvania Coal
Co. v. Mahon, 260 US 393, 413, 43 S Ct 158, 67 L Ed 322 (1922); Kroner
v. City of Portland, 116 Or 141, 152, 240 P 536 (1925), it is equally true
that neither constitution forbids requiring such compensation in the
manner provided for in Measure 37. The people, in exercising their initiative
power, were free to enact Measure 37 in furtherance of policy objectives such
as compensating landowners for a diminution in property value resulting from
certain land use regulations or otherwise relieving landowners from some of the
financial burden of certain land use regulations. Neither policy is irrational;
no one seriously can assert that Measure 37 is not reasonably related to those
policy objectives.
And, that determination is the only one that this court is empowered
to make. Whether Measure 37 as a policy choice is wise or foolish, farsighted
or blind, is beyond this court's purview. Our only function in any case
involving a constitutional challenge to an initiative measure is to ensure that
the measure does not contravene any pertinent, applicable constitutional
provisions. Here, we conclude that no such provisions have been
contravened.
IV. CONCLUSION
In sum, we conclude that (1) plaintiffs' claims are justiciable; (2)
Measure 37 does not impede the legislative plenary power; (3) Measure 37 does
not violate the equal privileges and immunities guarantee of Article I, section
20, of the Oregon Constitution; (4) Measure 37 does not violate the suspension
of laws provision contained in Article I, section 22, of the Oregon
Constitution; (5) Measure 37 does not violate separation of powers constraints;
(6) Measure 37 does not waive impermissibly sovereign immunity; and (7) Measure
37 does not violate the Fourteenth Amendment to the United States Constitution.
The trial court's contrary conclusions under the state and federal
constitutions were erroneous and must be reversed.
The judgment of the circuit court is reversed, and the case is
remanded for entry of judgment in favor of defendants and intervenors.
APPENDIX
Measure 37, codified at ORS 197.352, provides:
"The following provisions are added to and made a part of ORS
chapter 197:
"(1) If a public entity enacts or enforces a new land use regulation
or enforces a land use regulation enacted prior to the effective date of this
amendment that restricts the use of private real property or any interest
therein and has the effect of reducing the fair market value of the property,
or any interest therein, then the owner of the property shall be paid just
compensation.
"(2) Just compensation shall be equal to the reduction in the fair
market value of the affected property interest resulting from enactment or
enforcement of the land use regulation as of the date the owner makes written
demand for compensation under this act.
"(3) Subsection (1) of this act shall not apply to land use
regulations:
"(A) Restricting or prohibiting activities commonly and historically
recognized as public nuisances under common law. This subsection shall be
construed narrowly in favor of a finding of compensation under this act;
"(B) Restricting or prohibiting activities for the protection of
public health and safety, such as fire and building codes, health and
sanitation regulations, solid or hazardous waste regulations, and pollution
control regulations;
"(C) To the extent the land use regulation is required to comply
with federal law;
"(D) Restricting or prohibiting the use of a property for the
purpose of selling pornography or performing nude dancing. Nothing in this
subsection, however, is intended to affect or alter rights provided by the
Oregon or United States Constitutions; or
"(E) Enacted prior to the date of acquisition of the property by the
owner or a family member of the owner who owned the subject property prior to
acquisition or inheritance by the owner, whichever occurred first.
"(4) Just compensation under subsection (1) of this act shall be due
the owner of the property if the land use regulation continues to be enforced
against the property 180 days after the owner of the property makes written
demand for compensation under this section to the public entity enacting or
enforcing the land use regulation.
"(5) For claims arising from land use regulations enacted prior to
the effective date of this act, written demand for compensation under
subsection (4) shall be made within two years of the effective date of this
act, or the date the public entity applies the land use regulation as an
approval criteria to an application submitted by the owner of the property,
whichever is later. For claims arising from land use regulations enacted after
the effective date of this act, written demand for compensation under
subsection (4) shall be made within two years of the enactment of the land use
regulation, or the date the owner of the property submits a land use
application in which the land use regulation is an approval criteria, whichever
is later.
"(6) If a land use regulation continues to apply to the subject
property more than 180 days after the present owner of the property has made
written demand for compensation under this act, the present owner of the
property, or any interest therein, shall have a cause of action for
compensation under this act in the circuit court in which the real property is
located, and the present owner of the real property shall be entitled to
reasonable attorney fees, expenses, costs, and other disbursements reasonably
incurred to collect the compensation.
"(7) A metropolitan service district, city, or county, or state
agency may adopt or apply procedures for the processing of claims under this
act, but in no event shall these procedures act as a prerequisite to the filing
of a compensation claim under subsection (6) of this act, nor shall the failure
of an owner of property to file an application for a land use permit with the
local government serve as grounds for dismissal, abatement, or delay of a
compensation claim under subsection (6) of this act.
"(8) Notwithstanding any other state statute or the availability of
funds under subsection (10) of this act, in lieu of payment of just
compensation under this act, the governing body responsible for enacting the
land use regulation may modify, remove, or not to [sic] apply the land
use regulation or land use regulations to allow the owner to use the property
for a use permitted at the time the owner acquired the property.
"(9) A decision by a governing body under this act shall not be
considered a land use decision as defined in ORS 197.015(10).
"(10) Claims made under this section shall be paid from funds, if
any, specifically allocated by the legislature, city, county, or metropolitan
service district for payment of claims under this act. Notwithstanding the
availability of funds under this subsection, a metropolitan service district,
city, county, or state agency shall have discretion to use available funds to
pay claims or to modify, remove, or not apply a land use regulation or land use
regulations pursuant to subsection (6) of this act. If a claim has not been
paid within two years from the date on which it accrues, the owner shall be
allowed to use the property as permitted at the time the owner acquired the
property.
"(11) Definitions - for purposes of this section:
"(A) 'Family member' shall include the wife, husband, son, daughter,
mother, father, brother, brother-in-law, sister, sister-in-law, son-in-law,
daughter-in-law, mother-in-law, father-in-law, aunt, uncle, niece, nephew,
stepparent, stepchild, grandparent, or grandchild of the owner of the property,
an estate of any of the foregoing family members, or a legal entity owned by
any one or combination of these family members or the owner of the
property.
"(B) 'Land use regulation' shall include:
"(i) Any statute regulating the use of land or any interest
therein;
"(ii) Administrative rules and goals of the Land Conservation and
Development Commission;
"(iii) Local government comprehensive plans, zoning ordinances,
land division ordinances, and transportation ordinances;
"(iv) Metropolitan service district regional framework plans,
functional plans, planning goals and objectives; and
"(v) Statutes and administrative rules regulating farming and
forest practices.
"(C) 'Owner' is the present owner of the property, or any interest
therein.
"(D) 'Public entity' shall include the state, a metropolitan service
district, a city, or a county.
"(12) The remedy created by this act is in addition to any other
remedy under the Oregon or United States Constitutions, and is not intended to
modify or replace any other remedy.
"(13) If any portion or portions of this act are declared invalid by
a court of competent jurisdiction, the remaining portions of this act shall
remain in full force and effect."
1. Measure 37 is codified at ORS 197.352.
Throughout this opinion, when necessary to refer to specific sections of the
measure, we cite to the codification. The full text of Measure 37 is set out in
the Appendix.
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2. Measure 37 defines the term "land use
regulation" as follows:
"(i) Any statute regulating the use of land or any interest
therein;
"(ii) Administrative rules and goals of the Land Conservation and
Development Commission;
"(iii) Local government comprehensive plans, zoning ordinances, land
division ordinances, and transportation ordinances;
"(iv) Metropolitan service district regional framework plans,
functional plans, planning goals and objections; and
"(v) Statutes and administrative rules regulating farming and forest
practices."
ORS 197.352(11)(B). In this opinion, we use the term "land use
regulation" as Measure 37 defines that term.
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3. ORS 28.020 provides, in part:
"Any person * * * whose rights, status or other legal relations are
affected by a * * * statute * * * may have determined any question of
construction or validity arising under any such * * * statute * * * and obtain
a declaration of rights, status or other legal relations
thereunder."
ORS 250.044 provides, in part:
"(1)An action that challenges the constitutionality of a measure
initiated by the people * * * must be commenced in the Circuit Court for Marion
County if:
"(a) The action is filed by a plaintiff asserting a claim for relief
that challenges the constitutionality of a state statute * * * initiated by the
people or referred to the people under section 1(1) to (4), Article IV of the
Oregon Constitution; [and]
"(b) The action is commenced on or after the date that the Secretary
of State certifies that the challenged measure has been adopted by the electors
and within 180 days after the effective date of the measure[.]
"* * * * *
"(5) If a judgment in an action subject to the requirements of this
section holds that a challenged measure is invalid in whole or in part, a party
to the action may appeal the judgment only by filing a notice of appeal
directly with the Supreme Court within the time and in the manner specified in
ORS chapter 19 for civil appeals to the Court of Appeals."
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4. Also named as defendants were Marion
County, Clackamas County, and Washington County. They are not parties to this
appeal.
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5. The intervenors are (1) the chief
petitioners Dorothy English, Barbara Prete and Eugene Prete (collectively,
"English"); (2) Howard Meredith; and (3) Jackson County.
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6. Meredith also challenges the trial
court's decision, under ORCP 23, to allow plaintiffs to amend their pleadings
to conform to certain aspects of their evidence. This court will reverse that
decision only on a showing of abuse of discretion. See Engelcke v.
Stoehsler, 273 Or 937, 944-45, 544 P2d 582 (1975) (stating principle under
former ORS 16.390, repealed by Or Laws 1979, ch 284, § 199).
We find no abuse of discretion here.
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7. Plaintiffs do mention Article
IV, section 1, of the Oregon Constitution, but that section merely vests
legislative power in the Legislative Assembly and the electorate. The section
neither expressly nor impliedly limits the scope of the legislative power; it
simply states where that constitutional power resides.
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8. Plaintiffs cite to and rely upon a
number of cases, but those cases are inapposite. Generally, the cases involved
public contracts that purported to contract away state or local governments'
ability to enact legislation. See, e.g., Northern Pacific
Railway v. Duluth, 208 US 583, 596, 28 S Ct 341, 52 L Ed 630 (1908) ("the
right to exercise the police power is a continuing one [that] cannot be
contracted away"); Stone v. Mississippi, 101 US 814, 817, 25 L Ed 1079
(1879) ("the legislature cannot bargain away the police power of a State");
Morris v. City of Salem, 179 Or 666, 675, 174 P2d 192 (1946) (authority
to exercise police power is implied in a public contract); see also
County Mobilehome Positive Action Com., Inc. v. County of San Diego, 62
Cal App 4th 727, 73 Cal Rptr 2d 409 (1998) (state cannot abdicate police power
by contract; contracts are subject to further exercise of police power);
City of New Albany v. New Albany St. R. Co., 172 Ind 487, 87 NE 1084
(1909) ("a city council cannot bargain away or divest itself of the right to
make reasonable laws"). Here, Measure 37 does not contract away the plenary
power to enact legislation.
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9. As the parties acknowledge, Article I,
section 22, was not the subject of any reported debate during Oregon's
constitutional convention. Claudia Burton and Andrew Grade, A Legislative
History of the Oregon Constitution - Part I (Article I & II), 37
Willamette L Rev 469, 539-40 (2001).
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10. In Holden v. James, 11 Mass
396, 403-05 (1814) -- a case that plaintiffs cite here -- the Massachusetts
Supreme Court explained that state constitutional "suspension of laws" clauses
sought to correct abuses of regal authority and were rooted in the Magna Charta
and the English Bill of Rights of 1689. Id. The English Bill of Rights
enumerated "the oppressive acts of James 2," the first of which was "the
assuming and exercising [of] a power of dispensing with and suspending the
laws, * * * without consent of parliament." Id. at 404. The first
article of the Bill of Rights provided that "the exercise of such power, by
regal authority, without consent of Parliament, is illegal." Id.
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11. ORS 197.352(6) provides:
"If a land use regulation continues to apply to the subject property
more than 180 days after the present owner of the property had made written
demand for compensation under this section, the present owner of the property,
or any interest therein, shall have a cause of action for compensation under
this section in the circuit court in which the real property is located, and
the present owner of the real property shall be entitled to reasonable attorney
fees, expenses, costs, and other disbursements reasonably incurred to collect
the compensation."
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12. Instead, plaintiffs cite cases that
note, generally, that states are not obligated to compensate for losses
sustained by virtue of the exercise of governmental power. See,
e.g., Branson v. City of Philadelphia, 47 Pa 329 (1864) ("no
obligation at law requires [the Commonwealth] to repair the mere consequences
collaterally falling upon those who suffer from the exercise of a great
reserved power of acting for the general good"); The Western College of
Homeopathic Medicine v. City of Cleveland, 12 Ohio St 375, 377-78 (1861)
("It is not the policy of governments to indemnify individuals for losses
sustained, either from the want of proper laws, or from the inadequate
enforcement of laws made to secure the property of individuals."). But, even
assuming that the state is not obligated to compensate for economic
losses stemming from regulation, it does not follow that the state is
forbidden from doing so.
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13. To the extent that plaintiffs also
argue that Measure 37 unconstitutionally waives sovereign immunity because the
measure impermissibly limits the plenary legislative power, we reject that
argument as well, for the reasons stated in our discussion of plenary
legislative power.
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14. The Due Process Clause of the
Fourteenth Amendment provides:
"[N]or shall any State deprive any person of life, liberty, or
property, without due process of law[.]"
Plaintiffs' brief on appeal mentions two other federal constitutional
provisions -- the Due Process Clause of the Fifth Amendment and the Equal
Protection Clause of the Fourteenth Amendment. Plaintiffs raised neither claim
in their complaint or their motion for summary judgment below, however, and
neither theory is well developed in their brief to this court. We therefore
limit our discussion to plaintiffs' Fourteenth Amendment Due Process Clause
arguments.
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15. The trial court's holding appears to
have been, in part, specific to the procedures utilized in deciding the claim
of plaintiff Adams's neighbor. Those facts might have been relevant if
plaintiffs had asserted an "as applied" challenge to Measure 37, but they are
irrelevant to plaintiffs' facial challenge to Measure 37.
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16. The trial court concluded that
Measure 37 did not implicate plaintiffs' fundamental rights, and the parties do
not contest that conclusion.
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