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Judge's land use decision has Measure 37 claimants lining up

by Eric Mortenson, The Oregonian
Thursday November 13, 2008, 5:39 PM

Medford attorney Bob Robertson and other property rights lawyers are savoring a rare win: a federal court ruling that potentially could reset a land-use battlefield that was just settling down after four years of combative ballot measures and bitter lawsuits.

U.S. District Court Judge Owen Panner ruled Wednesday that development rights granted by Jackson County under 2004's Measure 37 are a binding, constitutionally-protected contract. Measure 49, approved in 2007 and intended to limit development under the earlier measure, can't be used to invalidate the contract, Panner decided.

Although limited to Jackson County, the decision could have consequence statewide.

The Jackson County plaintiffs had sought to build homes, and in one case a gas station and motel, on what is now zoned as farm or forest land. They would be allowed to proceed if the judge's ruling is not overturned or revised, and property owners in other counties might press the same point.

Portland attorney William Cox said he's already making the same contract law argument in 12 Measure 37 cases pending in state courts in Washington, Columbia and Coos counties.

"It just gives us a leg up," he said of Panner's ruling. "As far as whether a local judge will follow it, I don't know. My fear is that for some reason the state of Oregon judges won't give credence to that decision. They don't have to follow it, but it would be hard for them not to."

Portland attorney Jill Gelineau agreed Panner's decision doesn't set a formal precedent, but a thoughtful opinion from a respected federal judge is "pretty persuasive," she said.

"Those of us who defend private property are used to getting bad news out of the courts, (but) this was a nice one," Gelineau said.

She cautioned that the decision may apply only to the subset of Measure 37 claimants who received final county development waivers, however. Many cases did not advance to that stage because counties stopped processing claims as legislators debated a remedy to extensive development claims and the vote on Measure 49 approached.

Measure 37 gave property owners the right to develop their land in a way that was allowed when they bought it. In many cases, rural property was zoned for residential use or had no zoning at all before statewide land-use laws preserving farm and forest land went into effect in the 1970s and 1980s. About 6,500 property owners filed Measure 37 claims and received waivers from land-use rules imposed after they had bought their land.

But many claimants sought permission -- at least on paper -- to build extensive subdivisions in rural areas. That caused a backlash in the form of 2007's Measure 49. Its approval gave claimants the option to build one to three homes under an "express" process, four to 10 houses under a complicated appraisal process, or to finish even bigger developments begun under Measure 37 if they could prove they had a "vested right" to continue.

But property rights attorneys have consistently argued that Measure 49 "pulled the rug out from under" the original Measure 37 claimants. Robertson, the Medford lawyer who took the case to federal court, said Property owners who accepted one of the development options under Measure 49 have "given up their rights for an empty sack."

His novel argument -- that county-approved Measure 37 waivers amounted to a binding contract -- struck a chord with Judge Panner, who was appointed to the federal bench by President Jimmy Carter in 1980.

Panner said the Jackson County property owners prevailed on two legal fronts. First, he said Measure 49 violated the contractual rights represented by the Measure 37 waivers. He did not rule that Measure 49 was unconstitutional, only that Jackson County could not uses it as "an excuse to avoid its obligations under plaintiffs' Measure 37 waivers."

Secondly, Panner said Jackson County's decision to grant Measure 37 waivers was a "quasi-judicial" action that cannot be overruled by a legislative act such as Measure 49. "Our system of separation of powers does not allow legislation to set aside a judicial decision," Panner wrote.

Robertson, 69, was joined in the case by retired southern Oregon attorneys Jack Swift, who reactivated his license for the trial; and David Smith, who did much of the research.

"The three of us volunteered our time," Robertson said. "We're all in our late 60s, and we got together and said people are getting screwed on this."

They formed a non-profit, Citizens for Constitutional Fairness, that took the case on behalf of 25 property owners. All had been granted Measure 37 development waivers by Jackson County, only to see them replaced by the three options allowed under Measure 49.

The veteran lawyers were assisted by Bill Bernard, a visually-impaired federal litigator from Utah who has a long interest in Oregon land-use law.

"Here we are, three old farts and one blind lawyer, and we've got the biggest constitutional law case in the state of Oregon," Robertson said with a laugh.

"I'd have to say it's the most fulfilling thing I've done in 42 years of law practice," he said.

"Time will tell, but I think anybody who has a waiver from a county, much the same as in Jackson County, I think all those people would be protected by this ruling," Robertson said.

Other attorneys disagree with Panner's ruling. Edward Sullivan of Portland, considered one of Oregon's leading land-use experts, said the ruling doesn't apply to action taken by the state on Measure 37 claims.

Meanwhile, Jackson County Commissioner Dennis C.W. Smith said the ruling didn't specify how the county should remedy the situation, but direction should be coming from the judge soon. The county hasn't decided whether it will appeal the decision to the next step up the legal ladder: the 9th U.S. Circuit Court of Appeals.

"The state court says do it one way, the federal court says do it another -- I feel like a Yo-yo," Smith said. "Nothing in relation to land use catches me by surprise."

Eric Mortenson; 503-294-7636; ericmortenson@news.oregonian.com For environment news, go to: oregonlive.com/environment

Judge backs Measure 37 claims

 

He rules in favor of 25 Jackson County property owners, saying their land-use waivers still are 'valid and enforceable'

 

November 13, 2008

Damian Mann

By

Mail Tribune

A federal judge in Medford breathed new life into a controversial property rights law Wednesday by ruling that Measure 37 claims still are valid and constitutionally protected in Jackson County.

U.S. District Judge Owen Panner ruled in favor of Citizens for Constitutional Fairness, which filed suit against Jackson County on behalf of 25 property owners.

The county decided it would not honor waivers to property rights laws under Measure 37 after Oregon voters passed Measure 49 in 2007.

"Plaintiffs' Measure 37 waivers are valid and enforceable," said Panner in the conclusion to his ruling.

Medford attorney Bob Robertson said this is a victory for the Measure 37 claimants he represents who lost $237 million of property value when the county failed to honor the claims.

He said he represents 5 percent, or about 25, of the 571 claimants in Jackson County.

"We're just delighted the Constitution has been upheld," said Robertson.

He said it has been difficult for property owners, first to receive a land-use waiver, then to have it retracted by the county.

"So many of these people are beaten up and getting old and running out of money," he said. "This is hope for a lot of people who really need the help."

He said the implications of this ruling could uphold claims throughout the state.

Panner's ruling stated that the county acted in a quasi-judicial capacity in granting waivers to property rights laws under Measure 37.

Because the county acted essentially as a court, a legislative act such as Measure 49 cannot overturn the waivers granted by the county, ruled Panner.

"Our system of separation of powers does not allow legislation to set aside a judicial decision," he said.

Jackson County Commissioner C.W. Smith said he had just received notice of the judge's ruling late Wednesday.

"We can't comment until we've had a chance to visit with the legal staff," he said.

For claimants who have approved waivers from the county, the latest district court win comes after much legal wrangling.

In May, Jackson County Circuit Court Judge Daniel Harris ruled that Measure 37 is essentially dead thanks to the passage of Measure 49.

Measure 37, approved by voters in 2004, attempted to provide property owners who have owned their land for many years with relief from development restrictions imposed by Oregon's land-use laws. But, after property owners filed about 7,000 state claims under Measure 37, some of them potentially far-reaching, voters approved Measure 49, which overturned the property rights law.

Landowners argued that the waivers they'd received under Measure 37 gave them a "vested right" to pursue the development of their properties.

Harris' ruling stated that there is no "continuing viability" for those who have Measure 37 waivers.

However, Panner's ruling cited a passage from the Constitution that applied to the Measure 37 waivers. "No state shall ... pass any ... law impairing the obligation of contracts."

Panner ruled, "Jackson County's refusal to honor Measure 37 waivers obviously impaired its agreements with Plaintiffs. This impairment was substantial by any definition of the word."

The judge stated that Measure 49 not only altered the Measure 37 waivers, but it eliminated them.

However, he stated, "I am not ruling that Measure 49 is unconstitutional, but rather that Jackson County may not rely on Measure 49 as an excuse to avoid its obligations under plaintiff's Measure 37 waivers."

Reach reporter Damian Mann at 776-4476 or dmann@mailtribune.com.

 

Federal judge rules Measure 37 waivers still apply in Jackson County

by Eric Mortenson, The Oregonian
Wednesday November 12, 2008, 11:37 PM

In a decision that could knock Oregon's land-use system for yet another loop, a federal judge ruled Wednesday that development rights granted to Jackson County property owners under 2004's controversial Measure 37 are valid and can't be undone by the revisions of 2007's Measure 49.

U.S. District Judge Owen Panner, surprising lawyers on both sides of the debate, said the original development waivers amount to a contract between Jackson County and the property owners. Measure 49, which rolled back rights granted under Measure 37, can't be used to invalidate the contract.

The ruling could potentially unhinge a property-rights debate that has swung back and forth with ballot measures, county hearings, legislative wrangling and lawsuits for the past four years.

Richard Whitman, director of the state Department of Land Conservation and Development, cautioned that the ruling applies only to Jackson County. He also noted that it doesn't involve development decisions issued by his department.

Whitman acknowledged that property owners in each of Oregon's 36 counties might make a similar argument.

"The state's position has been that in order for the property owners to be able to do anything, in most cases, they're going to need to deal both with the county and the state," Whitman said. "My immediate reaction would be that it's only one piece of the puzzle."

But David Hunnicutt, president of Oregonians in Action, a property-rights group, said the ruling could apply to Measure 37 decisions issued by the state and any county or city.

"It's an extremely significant ruling that could very much throw Measure 49 into flux," Hunnicutt said. "I think the lawsuits will begin again."

It would be up to Jackson County, as defendant in the case, to appeal the ruling. There was no immediate word on that possibility.

Measure 37 gave property owners the right to develop their land in the way that was allowed when they bought it. About 6,500 landowners filed claims under the measure and received waivers from land-use rules. The three Jackson County plaintiffs were among them.

Measure 49 was intended to roll back development allowed under the earlier measure. Property owners who had filed claims under Measure 37 were given the option to build one to three homes under an "express" process, to build four to 10 homes using a complicated appraisal method, or to finish a project begun under Measure 37 if they could prove they had a "vested right" to continue.

The Jackson County property owners, represented in chief by attorney Bob Robertson, filed a federal suit in February 2007. They argued that the waivers they originally received should be upheld.

"Plaintiffs argue that the Measure 37 waivers are binding, constitutionally protected contracts between plaintiffs and Jackson County," Judge Panner wrote. "I agree."

In another section, Panner wrote, "I am not ruling Measure 49 is unconstitutional, but rather that Jackson County may not rely on Measure 49 as an excuse to avoid its obligations under plaintiffs' Measure 37 waivers."

The ruling does not give the plaintiffs free rein to develop their property, the judge continued. They still must follow conditions imposed by the waivers, including zoning restrictions.

Whitman, the state land-use director, would take it a step farther. In order for property owners to do anything with their land, they must deal with the state in addition to the county, he said.

Hunnicutt, of Oregonians in Action, said the 2009 Legislature should take up the issue and offer a compromise to the original Measure 37 claimants -- perhaps by letting them build as many as 10 homes.

"We'll see, but this is the next step in a long saga that never seems to go away," Hunnicutt said.


Eric Mortenson; ericmortenson@news.oregonian.com

Three sue over land-use decision
Suit says county's setting aside of Measure 37 waivers violates property rights
  Damian Mann
Local woman fights for her property rights!
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Go, Velda Dickey !! click photo for story

We will keep up the good fight, making our land our own!

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Town Hall Meeting January 24th at Jackson County Courthouse, Medford, Oregon. The Citizens for Constitutional Fairness will help you explore your options for your Measure 37 Waivers.

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