Lost Tree Vill. Corp. v. United States

In 1968, Lost Tree entered an option to purchase approximately 2,750 acres on Florida’s coast, near Vero Beach, encompassing a barrier island, bisected by the A-1-A Highway, and stretching west to islands on the Indian River. Lost Tree purchased substantially all of the land, including the 4.99-acre “Plat 57” on John’s Island. Through the mid-1990s, Lost Tree developed approximately 1,300 acres into the gated residential community, John’s Island, which includes golf courses, a beach club, a hotel, condominiums, and single family homes. In 2002 Lost Tree first considered development of Plat 57 and applied to the Army Corps of Engineers for a permit under the Clean Water Act, 33 U.S.C. 1344, to fill 2.13 acres of wetland. The Corps denied the application in 2004, reasoning that the parcel as a whole included Plat 57, a neighboring upland plat, and scattered wetlands in the vicinity stating that less environmentally damaging alternatives were available, and that Lost Tree “has had very reasonable use of its land.” The Court of Federal Claims denied takings claim. The Federal Circuit reversed, holding that the court erred in determining the relevant parcel. Plat 57 alone was the relevant parcel: Lost Tree had distinct economic expectations for Plat 57.

Lost Tree Vill. Corp. v. United States