Opinion by
In this action against defendant, City of Brighton, plaintiffs G & A Land, LLC, Jacob
I. Background
In early 2004, Brighton decided to build a new wastewater treatment plant in unineor-porated Weld County. For several years thereafter, Brighton engaged in actions and communications with Landowners evidencing its intent to construct the treatment plant on Landowners' properties (the properties), including a resolution passed by the Brighton Council in March 2005 authorizing negotiation and condemnation to acquire the properties. In August 2007, negotiations were still unsuccessful, and Landowners filed this lawsuit alleging, among other things, that Brighton's actions and inactions during the lengthy precondemnation period have deprived them of their right to alienate their properties.
The trial court concluded as a matter of law that Brighton's communications did not constitute an enforceable promise under the doctrine of promissory estoppel, that Landowners' inverse condemnation and § 1983 claims were not ripe because Brighton had not made a final decision regarding Landowners' properties, and that there was no "taking" of Landowners' properties.
II Promissory Estoppel Claim
Landowners contend the trial court erred in granting summary judgment to Brighton on their promissory estoppel claim. They maintain that Brighton's announced plans to acquire their properties and its offers to do so constituted a promise on which they reasonably relied. We disagree.
A. Standard of Review
Summary judgment is appropriate when the pleadings and supporting documentation demonstrate that no genuine issue of material fact exists and that the moving party is entitled to judgment as a matter of law. C.R.C.P. 56(c). A material fact is one that will affect the outcome of the case. GE Life & Annuity Assurance Co. v. Fort Collins Assemblage, Ltd.,
The nonmoving party is entitled to any favorable inferences that may reasonably be drawn from the facts, and all doubts must be resolved against the moving party. Clementi v. Nationwide Mut. Fire Ins. Co.,
B. Applicable Law
Colorado has adopted the promissory es-toppel doctrine as articulated in the Restatement (Second) of Contracts § 90. Nelson v. Elway,
A prima facie case for relief under the doctrine requires "(1) a promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promis-ee; (2) action or forbearance induced by that promise; and (8) the existence of cireum-stances such that injustice can be avoided only by enforcement of the promise." Nelson,
C. Requirement of a Promise
In this context, a promise is "a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made." Restatement
In Hansen v. GAB Business Services, a division of this court concluded an employer's compensation plan that included a performance-based bonus did not contain a valid promise because the plan did not clearly and unambiguously obligate the employer to pay the bonuses.
Here, Landowners rely on the following communications and actions taken by Brighton, which they maintain constituted valid promises that Brighton would acquire their properties through negotiation or condemnation. However, we conclude none of these communications or actions was sufficient to create the type of obligation required to support a promissory estoppel claim.
1. March 2005 Resolution
In Resolution 05-35, the Brighton Council found Brighton needed to take "immediate possession [of Landowners' properties] ... for the public health, safety, and welfare, due to bidding and construction deadlines." However, the resolution merely "authorize[d] the Brighton Manager to conduct ... good faith negotiations" and to "exercise the power of eminent domain." The resolution did not undertake any obligation.
2. September 2004 Negotiation Letters
In letters to Landowners, Brighton's attorney stated Brighton's "desire to obtain [Landowners] propert[ies] through a negotiated settlement," and added that "If this cannot be accomplished in a timely manner, Brighton will have no alternative but to commence appropriate legal proceedings to acquire the [pjropert[ies]." However, the letters contemplate future bargaining. They do not contain language promising to be bound by the plan. See George,
8. Treatment Authority's Letter of June 2006
This letter from the Regional Waste Water Treatment Authority was sent to another landowner who is not a party in this case. It expressed the Authority's intent to work with Landowners to begin negotiations on acquisition, stating:
As an owner of the property that will be used for the siting of the ... Treatment Plant, the Authority looks forward to working with you in the forthcoming property acquisition activities.... Now that [preliminary steps] have been completed, property acquisition procedures will begin [and] [wle will be in contact with each property owner in the near future to discuss the acquisition schedule and to begin property negotiations.
This letter expressed an intent to begin the negotiation process, but it did not contain a clear and unambiguous promise to acquire Landowners' properties.
4. Notice of Intent and Offer Letters of August 2007
Brighton also sent "notice of intent" letters offering to pay for an appraisal at its expense and to purchase Landowners' properties. The letters stated that, after twenty-one days, Brighton would deem the offer rejected and "may initiate eminent domain proceedings to condemn and take the propert[ies] in accordance with law." The letters affirmed Brighton's desire to acquire Landowners properties and to initiate the statutory condemnation process, which requires the con-demnor to offer to pay for an appraisal.
5. Agent's Statutory Offers in May and June 2004
Brighton's right-of-way agents sent letters to Landowners that offered to pay for an appraisal. Again, however, we conclude the language in these letters was insufficient to show Brighton has an obligation to purchase the properties.
6. Brighton's Other Actions
Brighton's other actions included condemning an adjacent parcel for the project, hiring a traffic consultant to determine what improvements would be needed during the development of Landowners' properties, hiring appraisers to value Landowners' properties, performing an environmental site assessment of Landowners' properties, engaging an engineering firm for on-site drilling and soil reports, posting a sign adjacent to Landowners' properties stating that "the property upon which this sign is posted shall be considered for the construction of the Regional Waste-water Treatment Plant," and representing to third parties that Brighton "owned the property."
These actions showed Brighton's interest in acquiring the properties, but did not obligate it to do so. They are nevertheless relevant in assessing Landowners' inverse condemnation claim, and we therefore discuss them below.
7. Cumulative Effect of Brighton's Actions
We conclude Brighton's actions and communications, viewed individually and cumulatively, merely expressed its intent to acquire Landowners' properties in the future. Therefore, the trial court did not err in ruling as a matter of law that Landowners failed to establish a valid promise and could not prevail on their claim for promissory estoppel.
III. Inverse Condemnation and § 1983 Claims
Landowners next contend the trial court erred in dismissing their inverse condemnation and $ 1988 claims pursuant to C.R.C.P. 12(b)(5). We agree with Landowners as to the inverse condemnation claim but disagree as to the § 1988 claim.
A. Standard of Review
We review a trial court's ruling on a motion to dismiss de novo. We accept as true all averments of material fact contained in the complaint and view its allegations in the light most favorable to the plaintiff. Brossia v. Rick Constr., L.T.D. Liab. Co.,
A G.R.C.P. 12(b)(5) motion to dismiss is looked upon with disfavor, and a complaint should not be dismissed unless it appears beyond a doubt that the plaintiff can prove no set of facts supporting the claim which would entitle the plaintiff to relief. A complaint should not be dismissed for failure to state a claim so long as the plaintiff is entitled to some relief upon any legal theory. Pub. Serv. Co. v. Van Wyk,
B. Inverse Condemnation
An inverse condemnation claim derives from the takings clauses of the federal and state constitutions and traditionally allows property owners a remedy when a government entity effects a taking of property for a public purpose without initiating and following formal condemnation proceedings. Ammas Valley Sand & Gravel, Inc. v. Bd. of County Comm'rs,
An action for inverse condemnation is based upon article II, section 15 of the Colorado Constitution, which provides, in relevant part, that "[plrivate property shall not be taken or damaged, for public or private use, without just compensation." See City of Northglenn v. Grynberg,
Whether a "taking" has occurred is an issue of law to be decided by the court, id., and we review the question de novo. People v. Romero,
"To establish a claim for inverse condemnation under the Colorado Constitution, a property owner must show that (1) there has been a taking or damaging of a property interest; (2) for a public purpose; (8) without just compensation; (4) by a governmental or public entity that has the power of eminent domain, but which has refused to exercise that power." Betterview Invs., LLC v. Pub. Serv. Co.,
However, there need not be a physical taking of the property. The supreme court has explained that, "[allthough the concept of a taking may originally have contemplated only physical appropriation, if is clear today that monacquisitive governmental action may constitute a taking when the governmental activity substantially impairs an owner's use of the property." Bd. of County Comm'rs v. Flickinger,
A regulatory taking occurs as follows: Where a regulation places limitations on land that fall short of eliminating all economically beneficial use, a taking nonetheless may have occurred, depending on a complex of factors including the regulation's economic effect on the landowner, the extent to which the regulation interferes with reasonable investment-backed expectations, and the character of the government action.
Palazzolo v. Rhode Island,
C. Application to This Case
Landowners have not alleged that Brighton has physically encroached on their properties, that they have been denied all economically viable use of their land, or that these circumstances constitute a regulatory taking. Nor have they challenged Brighton's assertion that its actions in locating the new wastewater treatment plant will advance legitimate state interests. Landowners' contention is that Brighton has taken actions that have interfered with their dominion over the properties.
Landowners concede the holding in Lipson v. Colorado State Department of Highways,
In Lipson, the plaintiffs filed a complaint in inverse condemnation alleging that (1) the Colorado Department of Public Highways had determined it would be necessary, desirable, and in the People's best interest if a
The trial court dismissed the complaint, and a division of this court upheld the ruling, reasoning that "the Department of Highways hald] made no physical ouster of the owners from the property, and hald] not interfered in any way with the owners' power of disposition or use of the property."
The division relied on City of Buffalo v. J.W. Clement Co.,
[Sitrong public policy considerations prohibit a finding of a De facto taking in the instant case. To hold the date of the Announcement of the impending condemnation, whether directly to the condemnee or by the news media, constitutes a De facto taking at that time, would be to impose an "oppressive" and "unwarranted" burden upon the condemning authority. At the very least, it would serve to penalize the condemnor for providing appropriate advance notice to a property owner. And to so impede the actions of the municipality in preparing and publicizing plans for the good of the community, would be to encourage a converse policy of secrecy which "would but raise (greater) havoc with an owner's rights."
Id. at 904 (quoting City of Buffalo v. J.W. Clement Co.,
The New York court concluded:
[TJhe mere announcement of impending condemnations, coupled as it may well be with substantial delay and damage, does not, in the absence of other acts which may be translated into an exercise of dominion and control by the condemning authority, constitute a Taking so as to warrant awarding compensation.
Id.
Landowners are correct that cases decided after Lipson have concluded a physical "ouster" or appropriation of the property is not required and a taking may occur "when the governmental activity substantially impairs an owner's use of the property." Flickinger,
There, the owner leased its property in Colorado Springs to a third party (tenant). In late 2004, the city adopted a road-widening project and the owner was notified that it would "potentially" be impacted by the project. After learning of the potential condemnation of the property, the tenant sued the property owner for rescission of the lease, alleging that the owner had fraudulently concealed the road-widening project. The parties settled that dispute in June 2007, and the owner sought a new tenant but was unable to rent the property from June 2007 to March 2008.
In August 2008, the city filed a condemnation petition, and the property owner counterclaimed for inverse condemnation, alleging that the city's delay in acquiring the property constituted a de facto taking and resulted in lost rental income and other expenses. The trial court, relying on Lipson, granted the
On appeal, the property owner argued that a de facto taking occurred after the city had obtained funding and governmental approvals for the project and had sent the notice of intent to acquire the property, because a "cloud of condemnation hung over" the property, depriving the owner of its ability to lease the property.
The division recognized that a physical appropriation of the property was not required. But it also observed that "the law announced in Lipson comports with the weight of authority ... that mere plotting and planning by a governmental body in anticipation of the taking of land for public use, and preliminary steps taken to accomplish this, does not, in itself, constitute a taking." Andersen Mahon Enterprises, - P.3d at -.
As Lipson indicates, a de facto taking requires the condemning authority to do more than plan and prepare for a project; it must also commit some affirmative act that legally interferes with the property and results in the condemming authority's exercise of dominion and control over the property. The mere existence of funding and environmental approvals for the project and the issuance of a notice of intent to acquire the property do not automatically result in a de facto taking. At that point, the project still could have been abandoned by the condemnor and the property never actually disturbed.
1d. at -- (emphasis added).
Landowners nevertheless maintain that Lipson failed to consider the rights of property owners caught in so-called "precondem-nation blight" or "precondemnation cloud" situations, when the condemning authority has engaged in "aggravated delay or untoward activity in instituting or continuing the condemnation proceedings." Clay County Realty Co. v. City of Gladstone,
Indeed, a number of jurisdictions have ree-ognized "the whole character of an area may be changed to the detriment of the property owner during the course of the proceedings" and at times the "area has been made a wasteland by the condemning authority." City of Detroit v. Cassese,
For example, in Clay County Realty,
The landowners filed an action for inverse condemnation, alleging that the city had not yet adopted an ordinance approving the project or specifying the redevelopment that was to occur at the property. The Missouri Supreme Court held that property owners should be allowed to seek compensation for "departure of rental tenants, unmarketability, and declines in rentability, capital values, and profits" when there has been "aggravated delay or untoward activity."
This case involves a problem which has plagued the judiciary of this state for some time without satisfactory resolution. It arises with increasing frequency because of redevelopment of metropolitan areas.... Because of the blight designation and the general public knowledge that the property will be acquired for redevelop ment, an exodus of tenants ensues, sometimes allegedly encouraged by the redevelopment authority, and no equivalent influx of similar tenants occurs. Often times the property depreciates and deteriorates, the neighborhood declines, vandalism and destruction of the property occurs, and the landowner, anticipating the eventual taking of the property, does not expend money to improve his unproductive asset.
Id. at 866-67 (quoting State v. Gaertner,
The Missouri court also recognized that some delays relating to condemnation proceedings were natural and unavoidable. Thus, it limited and clarified its holding:
[Blefore property owners have a viable cause of action for precondemnation damages, they must establish that there has been aggravated delay or untoward activity in instituting or continuing the condemnation proceedings at issue. Without this . showing of "aggravated delay or untoward activity," every condemnation case would give rise to a separate cause of action based on precondemnation activity, because the condemnation process involves governmental and judicial decisions that are endemic with delays.
Id. at 869.
The New York court also acknowledged this problem in J.W. Clement Co., stating:
[There was no appropriation which would permit an award of damages prior to the De jure taking. This, however, is not to say that the aggrieved property owner is without remedy. Indeed, the aggrieved property owner has a remedy where it would suffer severely diminished compensation because of acts by the condemning authority decreasing the value of the property. In such cases where true condemnation blight is present, the claimant may introduce evidence of value prior to the onslaught of the "affirmative value-depressing acts" of the authority and compensation shall be based on the value of the property as it would have been at the time of the De jure taking, but for the debilitating threat of condemnation. This, in turn, requires only that there be present some proof of affirmative acts causing a decrease in value and difficulty in arriving at a value using traditional methods.
The Lipson division relied on J.W. Clement Co., and we assume it did not address the remedy available to property owners arising from "precondemnation cloud" or "blight" because the plaintiffs in Lipson did not allege it. Nor did the plaintiffs allege that the Colorado Department of Highway's actions were "aggravated" or that it had engaged in "untoward activity in instituting or continuing the condemnation proceedings," as was alleged in Clay County Realty,
The plaintiffs in Lipson merely alleged:
(1) that the Colorado Department of Public Highways had determined that it would be necessary, desirable and to the best interest of the people if a portion of plaintiffs' property be taken for public use in the expansion of South Santa Fe Drive and the construction of an overpass on Belleview over South Santa Fe Drive; (2) that the defendant had publicized that an overpass would be constructed, which has made the sale or development of the property impossible; and (8) that the defendant has prepared maps showing such construction and commenced procedural processes required to obtain the necessary permits, approvals, and funding from the United States Government, and that as a result, even though they still hold the fee ownership, the property of the plaintiffs has been taken for public use without just compensation.
However, the issue did arise in Amdersen Mahon Emterprises, - P.3d at -, because the property owner there alleged that, after the city had obtained funding and governmental approvals for the project and had sent the notice of intent to acquire the property, a "cloud of condemnation hung over" the property, thus depriving the owner of its ability to lease the property. Id. The division addressed the "blight" cases but concluded they were factually distinguishable because:
_ Unlike the instant case, Clay County Realty Co. v. City of Gladstone,254 S.W.3d 859 (Mo.2008), involved a condemnation blight action where the plaintiffs' retail shopping center had been declared blighted and made the subject of a redevelopment plan. The plan was later abandoned when the city's agreement with a developer fell through, and subsequently the property was again declared blighted.
Id. at ---.
Here, as in Andersen Mahon Enterprises, we need not decide whether to adopt the more expansive holdings in the cases relied upon by Landowners because we similarly conclude the facts they have alleged do not raise the type of "condemnation blight" issues that were addressed in Clay County Realty,
To summarize, we agree with the divisions in Lipson and Andersen Mahon Enterprises that it furthers public policy if a governmental entity is free to announce its intention to acquire private property before filing a petition and serving a summons pursuant to sections 38-1-102 and 38-1-103, C.R.S.2009. It is also inevitable that delays will occur during which property owners may be unable to develop, lease, or sell their properties because of the uncertainty created by the impending condemnation.
Therefore, we conclude that damages arising from protracted delay alone are not compensable and that mere plotting and planning do not, without more, amount to an
However, the rights of a condemning authority are not unlimited, and we further conclude that Landowners have alleged facts in this case which are distinguishable from both Lipson and Andersen Mahon Enterprises. They have alleged that (1) Brighton officials have interfered with Landowners power of disposition or use of their properties by representing to third parties in public meetings involving the proposed water treatment facility that Brighton "already owns" Landowners' properties; and (2) Brighton has posted a sign adjacent to Landowners' properties stating that the new water treatment facility would be built there.
We must accept as true all averments of material fact contained in the complaint and view its allegations in the light most favorable to the plaintiff. Brossia,
Applying that standard of review, we conclude Landowners have alleged affirmative actions by Brighton apart from the protracted delay, which, when construed in the light most favorable to Landowners, could allow a fact finder to determine that Brighton "legally interfered with [Landowners'] properties] and result[ed] in the condemning authority's exercise of dominion and control over the propert[ies]." Andersen Mahon Enterprises, - P.3d at -.
In reaching our conclusion, we reject Brighton's contention that Amimas Valley requires another result. That case involved a land use plan and is factually distinguishable, as are the other cases relied upon by Brighton. See Grynberg,
Brighton's reliance on City of Black Hawk v. Ficke,
We therefore conclude the trial court erred in dismissing Landowners' claim for inverse condemnation.
D. Ripeness of Inverse Condemnation Claim
The trial court also ruled that, even if Landowners had a viable takings claim, their claim was not ripe until Brighton instituted formal condemnation proceedings or abandoned them. Landowners contend the trial court erred in so ruling, and we agree.
Ripeness requires the presence of an actual controversy between the parties warranting adjudication. Beauprez v. Avalos,
Although Brighton contends that an inverse condemnation claim cannot be ripe until the condemning authority has reached a final decision about the subject property, the cases that support this proposition have involved zoning and land use. See Quaker Court Ltd. Liability Co. v. Bd. of County Comm'rs,
Here, however, Landowners have alleged that they have already been harmed and continue to be harmed, regardless of how Brighton proceeds in the future, and we must accept as true their allegations and view them in the light most favorable to them. We therefore conclude Landowners' claim is ripe. See Clay County Realty,
E. Ripeness of Section 1983 Claim
Landowners also contend the trial court erred in dismissing their due process claim under 42 U.S.C. § 1988. We disagree.
In Miller v. Campbell County,
The Fifth Amendment does not prohibit the government from taking its citizens' property; it merely prohibits the government from taking property without paying just compensation. U.S. Const. amend. V. Before a federal court can properly determine whether the state has violated the Fifth Amendment, the aggrieved property owner must show first that the state deprived him of his property, and second, that the state refused to compensate him for his loss. See Williamson County Regional Planning Comm'n v. Hamilton Bank of Johnson City,473 U.S. 172 , 194-97,105 S.Ct. 3108 , 3120-22,87 L.Ed.2d 126 (1985). In those states that allow aggrieved property owners to bring an inverse condemnation action in order to recover compensation for property taken by the state, a Fifth Amendment takings claim is not ripe until the aggrieved property owner "has used the procedure and been denied just compensation." Id. at 195,105 S.Ct. at 3121 .
See First Bet Joint Venture v. City of Central City,
Here, the trial court dismissed the claim, concluding the relief Landowners seek under § 1983 is coextensive with the relief they seek under their inverse condemnation claim. This was not an appropriate ground for dismissal. Nevertheless, because the inverse condemnation has not been resolved unsue-cessfully to Landowners, their § 1988 claim is not ripe, and we may uphold the trial court's ruling on that ground. See Negron v. Golder,
IV. Conclusion
The judgment is affirmed as to the dismissal of Landowners' promissory estoppel and § 1983 claims. The judgment is reversed as to the dismissal of their inverse condemnation claim, and the case is remanded for further proceedings on that claim consistent with the views expressed in this opinion.
Notes
Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and
