SID No. 67 v. State
309 Neb. 600
| Neb. | 2021Background:
- Sanitary & Improvement District No. 67 (SID 67) is a statutorily created Nebraska political subdivision that maintains streets in the Normandy Hills subdivision.
- In 2003–04, NDOT and Sarpy County reconstructed Highway 75, blocking two direct access points from Normandy Hills and rerouting traffic via an indirect frontage-road route.
- SID 67 sued by petitioning for inverse condemnation, alleging the State’s actions took or damaged its property (asserting ownership of the subdivision roads by dedication) and claiming consequent costs to restore access and fire apparatus routes.
- County-appointed appraisers reported $0 damages; SID 67 sought review in district court, where NDOT and Sarpy County moved to dismiss for lack of standing and failure to state a claim.
- The district court dismissed on the pleadings for lack of standing; the Nebraska Supreme Court affirmed, holding SID 67 is a political subdivision not a “person” owning private property and therefore cannot bring an inverse condemnation claim against the State.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the court erred by excluding SID 67’s outside evidence (plat) when ruling on the dismissal | SID 67: ownership of the roads is a factual issue requiring consideration of the dedication plat; court should treat motion as factual/summary judgment | NDOT & Sarpy: motions were facial jurisdictional challenges at pleadings stage; no outside evidence required | The challenge was facial; dismissal at pleadings stage was proper and SID 67 had no right to submit extrinsic evidence |
| Whether SID 67 is the real party in interest and has standing to bring an inverse condemnation claim against the State | SID 67: it owns the subdivision roads (by dedication) and suffered a taking/damage, so it can seek compensation | NDOT & Sarpy: SID 67 is a political subdivision (not a “person”) and cannot hold private property for takings purposes; thus it lacks standing | SID 67 is a political subdivision, not a “person” with private property; it lacks standing to pursue inverse condemnation against the State; dismissal affirmed |
Key Cases Cited
- S.I.D. No. 95 v. City of Omaha, 221 Neb. 272 (Neb. 1985) (political subdivisions hold property by grace of Legislature; cannot claim constitutional taking against the State)
- Rock Cty. v. Spire, 235 Neb. 434 (Neb. 1990) (county is not a “person” for Neb. Const. art. I, § 21; State may reallocate county-held public property without compensation)
- United States v. 50 Acres of Land, 469 U.S. 24 (U.S. 1984) (federal taking of state-held property can require compensation because of separate sovereigns)
- Knick v. Township of Scott, Pennsylvania, 139 S. Ct. 2162 (U.S. 2019) (describes inverse condemnation as landowner’s action to recover for uncompensated takings)