City of Lorena v. BMTP Holdings, LP

The City of Lorena approved a subdivision plat. The City, however, subsequently enforced a moratorium against the property, citing the municipality’s additional sewage system capacity requirements. The landowner sued for a declaratory judgment that the moratorium did not apply against its approved development and for damages, alleging a regulatory taking under an inverse condemnation claim. The trial court granted summary judgment in favor of the City. The court of appeals reversed, holding that the moratorium could not apply to the property because the property had been approved for development before the moratorium took effect. The Supreme Court affirmed, holding (1) the moratorium did not apply to the property because the City approved the property for subdivision before it enacted the moratorium; and (2) in regards to the inverse condemnation claim, the trial court needed to resolve factual disputes before the merits of the takings claim could be judicially addressed. Remanded.

City of Lorena v. BMTP Holdings, LP