Supreme Court Allows Property Rights Plaintiffs to Go Directly to Federal Court

Legal
Published

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.

Subscribe to NAHBNow

Log in or create account to subscribe to notifications of new posts.

Log in to subscribe

Latest from NAHBNow

Environmental Issues
Sep 09, 2026
New Agency WOTUS Proposal Would Eliminate 'Wet Season' Concept

The Environmental Protection Agency and U.S. Army Corps of Engineers have announced a supplemental proposed rule offering a new approach to defining “waters of the United States” (WOTUS) under the Clean Water Act.

Awards | Membership | Associate Members Committee
Sep 08, 2026
How Winning an Associate Award Can Benefit You and Your Business

Every year, NAHB honors its top two Associate members for their achievements and essential work in the field with two awards: Associate of the Year and Associate Advocate of BUILD-PAC.

View all

Latest Economic News

Economics
Sep 08, 2026
Single-Family Home Construction Time Declines in 2025

Building a new single-family home took less time in 2025 compared to the previous three years. On average, it now takes 8.8 months from start to finish. That time includes 1.4 months for authorization to start construction and another 7.4 months to finish construction.

Economics
Sep 07, 2026
Shorter Apartment Construction Time in 2025

The average time needed to complete construction of a multifamily building after obtaining authorization edged down in 2025, according to the 2025 Survey of Construction (SOC) from the Census Bureau.

Economics
Sep 04, 2026
Beating Expectations: U.S. Economy Adds 162,000 Jobs in August

The U.S. labor market rebounded in August, with nonfarm payrolls increasing by 162,000 and upward revisions adding 55,000 jobs to June and July. The unemployment rate held steady at 4.1%, as both employment and the labor force participation rate rose over the month.