Supreme Court Allows Property Rights Plaintiffs to Go Directly to Federal Court
In a huge victory for NAHB and its members, the U.S. Supreme Court today reversed a long-standing land use decision that made it nearly impossible for property owners to bring a Fifth Amendment takings claim in federal court.
In 1985, the Supreme Court issued a decision, referred to as the Williamson County decision, that forced land use plaintiffs to first go through years of expensive state administrative and/or court proceedings prior to bringing a "takings" claim in federal court. Local governments would often use the decision to their advantage to tire out property owners. In addition, once a property owner finally filed a case in federal court, government defendants would use the prior state court decision as leverage to throw out the federal case.
Today, in Knick v. Township of Scott, the Supreme Court ruled that "the state-litigation requirement [in Williamson] imposes an unjustifiable burden on takings plaintiffs, conflicts with the rest of [the Court’s] jurisprudence, and must be overruled. A property owner has an actionable Fifth Amendment takings claim when the government takes his property without paying for it."
This means that rather than going through expensive and drawn-out state court proceedings, a land use plaintiff can bring a takings claim in federal court as soon as the taking occurs.
Over the past 34 years, NAHB has pursued multiple avenues to overturn Williamson County, in the form of litigation, amicus briefs and efforts to find a congressional fix. NAHB wrote legislation that passed the House on two occasions and has filed briefs in countless lawsuits on this issue. In fact, NAHB submitted one of just three amicus briefs encouraging the Supreme Court to take the Knick case.
At the merits stage, longtime NAHB member Frank Kottschade participated in an amicus brief, and Legal Action Committee member Tim Hollister wrote an amicus brief on behalf of the House Judiciary Subcommittee on the Constitution, Civil Rights and Civil Liberties.
The road to this victory has been the result of unyielding effort by the NAHB membership and staff. For more information, contact Tom Ward at 800-368-5242 x8230.
Latest from NAHBNow
Jun 04, 2026
Highest Paid Occupations in Construction in 2025The median wage of payroll workers in construction was $61,370 in 2025, with the top 25% earning at least $83,480. In comparison, the U.S. median annual wage was $50,980, while the highest paid 25% earned at least $80,520.
Jun 03, 2026
Top OSHA Violations of 2025; No Increase in Penalties for 2026In 2025, improper fall protection was once again the most-cited violation of OSHA jobsite rules. A failure to protect against falls also featured prominently in three other violations in the top 10.
Latest Economic News
Jun 03, 2026
House Price Appreciation by State and Metro Area in the First Quarter of 2026U.S. house prices continued to rise in the first quarter of 2026, but appreciation slowed markedly from the rapid pace seen during the pandemic-era housing boom.
Jun 03, 2026
State-Level Employment Situation: April 2026State labor market conditions remained generally positive in April, with most states recording employment gains despite signs of moderating national job growth.
Jun 02, 2026
Slight Increase for Construction Job OpeningsThe number of open positions in the construction sector edged higher in April, per the Bureau of Labor Statistics Job Openings and Labor Turnover Survey (JOLTS).