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

Codes and Standards
Oct 28, 2026
What a Building Code Study Gets Wrong About Housing Affordability

A working paper from researchers at the University of Alabama concludes that when a jurisdiction adopts new residential building codes, it has no effect on the sales prices of homes. But a close technical review reveals that the study’s policy conclusions go well beyond what its analysis can establish.

Legal
Oct 27, 2026
Legal Action Committee Awards Nearly $100,000 in Legal Support Grants at FLM

At its recent meeting during the NAHB Fall Leadership Meetings, the NAHB Legal Action Committee reviewed seven requests for Legal Action Fund assistance and recommended assistance in six.

View all

Latest Economic News

Economics
Oct 26, 2026
Uptick for Non-Conventional Financing in 2025

Nationwide, the share of non-conventional financing for new home sales accounted for 32.4% of the market, according to NAHB analysis of the 2025 Census Bureau Survey of Construction (SOC) data.

Economics
Oct 23, 2026
A Quarter of Remodelers Started ADUs Over Past Twelve Months

When asked if remodelers started a project involving an Accessory Dwelling Unit (ADU) over the past twelve months, 24% indicated that they were building an addition for use as an ADU and 23% indicated that they were converting an existing space to an ADU, according to NAHB’s Remodeling Market Index (RMI).

Economics
Oct 23, 2026
Slabs Overtake Basements in the East North Central Division

Nearly three-quarters of new single-family homes started in 2025 were built on slab foundations, according to NAHB analysis of the U.S. Census Bureau’s Survey of Construction (SOC).