The property owners bought land in Lake Tahoe before a 32-month freeze on development in 1981, which bought time for agencies to consider a long-term plan for the basin, was enforced. According to the owners, the freeze temporarily denied them all economic value of their land. These landowners sued in 1984 for $27 million. The suit was dismissed this week by the Supreme Court, which upheld an earlier ruling of the U.S. Court of Appeals.
The Supreme Court ruled that a building moratorium, used by agencies to consider growth limits, does not entitle property owners to government compensation. According to the court, moratoriums are used to help land-planners make decisions for the benefit of the community and government and often place necessary delays in development when making these decisions. They do not have to pay for the delays.
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