322 Ga. App. 562
Ga. Ct. App.2013Background
- Property owners Walleye, LLC and JGP&P, LLC appeal a trial court summary judgment for the City in an inverse condemnation suit.
- Clubs operated on the Properties as nude-dancing establishments with on-site alcohol; the Clubs themselves are not parties.
- In 2009 the City repealed the sexually-oriented businesses code and enacted a revised code banning alcohol and private booths at nude-dancing venues.
- The Clubs did not have renewed licenses after 2010 and were not renewed due to private-booth and alcohol-code violations, taxes, and nonpayment; they have not operated since January 15, 2012.
- Property Owners alleged there are no viable uses of the Properties beyond what the Clubs previously operated and claimed the City deprived them of all economically viable use.
- The trial court granted summary judgment, holding that the Property Owners lacked vested rights to renewed licenses and failed to show a compensable regulatory taking; the appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether vested rights are required for inverse condemnation | Walleye and JGP&P contend vested rights are not needed to claim a taking. | City contends vested rights in renewed licenses are necessary to prove a regulatory taking. | Vested rights required; judgment affirmed |
Key Cases Cited
- Travelers Excess and Surplus Lines Co. v. City of Atlanta, 297 Ga. App. 326 (2009) (utilities/summary judgment standards in appellate review)
- Duke Galish, LLC v. Manton, 291 Ga. App. 827 (2008) (license-based expectations and regulatory taking considerations)
- Goldrush II v. City of Marietta, 267 Ga. 683 (1997) (licenses expire at city’s discretion; lack of perpetual license; economic use risk)
- Dover v. City of Jackson, 246 Ga. App. 524 (2000) (landowner must show deprivation of all economically beneficial use)
- Achor Center v. Holmes, 219 Ga. App. 399 (1995) (evidence must be competent to raise material factual issues)
- Prime Home Properties, LLC v. Rockdale County Bd. of Health, 290 Ga. App. 698 (2008) (consolidating cases where inverse condemnation claim failed)