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Constitutional Law Keyed to Choper
Palazzolo v. Rhode Island
Citation:
533 U.S. 606 (2001)Facts
Anthony Palazzolo owned approximately 20 acres of waterfront property in Westerly, Rhode Island, most of which consisted of salt marsh wetlands. The property was originally purchased in 1959 by Shore Gardens, Inc. (SGI), a corporation in which Palazzolo was the sole shareholder. In 1971, Rhode Island created the Coastal Resources Management Council (CRMC) to protect coastal properties and enacted regulations designating salt marshes as protected wetlands with significant development restrictions. In 1978, SGI’s corporate charter was revoked for failure to pay taxes, and title to the property passed to Palazzolo by operation of law. Palazzolo submitted multiple applications to develop the property, including proposals to fill the wetlands for a beach club and residential development. The CRMC denied these applications, citing environmental concerns and regulations prohibiting such development without a “compelling public purpose.” Palazzolo then filed an inverse condemnation action, claiming the regulations constituted a taking requiring compensation of $3,150,000, the estimated value of a 74-lot residential subdivision.
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