OPINION AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS OF FOR SUMMARY JUDGMENT
The plaintiff, Frank VanWulfen, owns property on the shore of an inland lake located in Montmorency County, Michigan. The water level of the lake can be adjusted by changing the flow of water through a dam at the lake’s East end. The water level is regulated by the" county drain commissioner in accordance with procedures set forth in Michigan’s Inland Lake Levels Act, Mich. Comp. Laws § 324.30701 et seq. The plaintiff has filed a complaint in this Court alleging that the County has allowed *734 the lake level to rise too high, resulting in damage to the land and building on his lakefront property and effectuating a regulatory taking for which compensation is due under the Fifth Amendment to the United States Constitution. The defendants have moved for summary judgment contending that the plaintiffs claim is not ripe because the plaintiff has not fully pursued an inverse condemnation claim in Michigan State court, the action is barred by the Rooker-Feldman doctrine, and State court decisions involving the establishment of the lake level result in claim and issue preclusion. The plaintiff has filed a response in opposition to the defendants’ motion, and the Court heard the parties’ arguments in open court on November 4, 2004. The Court finds that doctrines of claim and issue preclusion are inapplicable because no final judgment on the merits has issued in a State court adjudicative рroceeding; the Rooker-Feld-man is inapplicable because even if the state court conclusively had determined the plaintiffs inverse condemnation claim, a federal court still could adjudicate the plaintiffs takings claim; however, the plaintiff has failed to fully pursue an inverse condemnation claim in State court and the matter thus is not ripe for review here. The Court, therefore, will grant the motion for summary judgment and dismiss the matter without prejudice.
I.
This case arises from a dispute over water levels in Avery Lake; the facts are not in serious dispute for the purpose of the present motion. In its natural form, Avery Lake began as three separаte lakes. In the 1930s and 1940s, logging operations and lake front property owners dammed the separate lakes and ultimately raised a makeshift dam to form a single lake. In the latter part of that period, a cement damn was built to replace the makeshift dam, and several cottages were constructed along the lake’s North shore. A structure known to the local residents as the “pavilion” was built in 1948, and its proximity to the lake’s artificial beach made it an ideal place for cottage dwellers and vacationers to gather. The pavilion originally was constructed of brick and mortar pilings atop footings sunk approximatеly forty-eight inches below ground level.
In 1965, the pavilion was converted into a year-round house; the bathroom was remodeled and a bedroom was added. That same year, the VanWulfen family bought the converted house. At the time, a large beach extended from their home to the lake shore. The water level of Avery Lake was controlled seasonally by adding or removing boards to a privately constructed dam at the East end of the lake. In 1969, this damn burst and a significant portion of beachfront was lost including the area in front of the VanWulfens’ home. Montmorency County officials erected a new damn and the county’s drain commission maintained it.
Thе lake level itself later was established in accordance with a statutory procedure. The Inland Lake Levels Act, Mich. Comp. Laws § 324.30701 et seq., was enacted in 1961 to establish and maintain Michigan’s inland lake levels in order to prevent flooding and flood damage. See Mich. Op. Atty. Gen.1966, No. 4465. Under the Act, a county board of commissioners, of its own accord or when requested by two-thirds of the lake-front property owners, or the State department of natural resources of its own accord, is authorized to initiate a proceeding in a county court to establish the “normal level” of an inland lake. See Mich. Comp. Laws § 324.30702, 324.30706. The “normal level” is defined as “the level or levels of the water of an inland lake that provide the most benefit to the public; that best protect the public *735 health, safety, and welfare; that best preserve the natural resources of the state; and that best preserve and protect the value of property around the lake.” Mich. Comp. Laws § 324.30701(h). The county board may order a preliminary engineering study and gather information before filing a petition in court. Mich. Comp. Laws § 324.30703. Once the petition is filed, notice of the proceedings is given to interested parties including abutting property owners and the department of natural resources. Mich. Comp. Laws § 324.30707(1). The court then cоnducts a hearing and considers a variety of factors and evidence, including the testimony of interested persons, and then “determine[s] the normal level to be established and maintained.” Mich. Comp. Laws § 324.30707(4), (5).
In 1970, after the Avery Lake dam collapsed, the Montmorency County circuit court entered an order on the county prosecutor’s petition establishing seasonal water levels of Avery Lake at 891.3 feet above mean sea level (MSL) during the summer months and 890.3 feet above MSL during the winter months. Thereafter, the county drain commissioner controlled the water level of Avery Lake in accordance with the statute. Avery Lake apparently rеmained at the 1970 levels until 1982.
The VanWulfens remodeled their home in 1971 and 1972 by adding two bedrooms, a fireplace, and a seawall. The seawall protected the home from increased water levels. Brick and mortar piers were erected to support these additions. In 1982, the Montmorency County prosecutor filed a motion to reduce the level of the lake, which was supported by a position paper submitted by the State department of natural resources (DNR). The DNR stated that a lower lake level would improve habitat for fish and other wildlife. The court set a new “normal level” for the winter months for Avery Lake at 888.8 feet above MSL. Resident fisherman experienced an increase in the amount fish in Avery Lake. The lake level remained unchanged until 1996.
In 1996, the county prosecutor filed another petition pursuant to the Act, apparently at the urging of several but not all of the abutting landowners, alleging that the DNR believed ceasing the seasonal draw-down would benefit the environment and area wildlife. The petition sought a year-round lake level of 891.3 feet above MSL, which meant that the winter draw-down would cease and the lake level would remain constant throughout the year. The VanWulfens objected to the petition and argued that stopping the winter draw-down would cause significant damage to their home. On March 5, 1997, the circuit court granted the petition in part and established a year-round normal level of 890.3 feet above MSL. As part of the order, the court directed the county drain commissioner to monitor the water level and determine whether abutting properties were damaged as a result of the new water level. In 1998, the lake level was ordered raised to 891.88 feet without hearing.
In 2001, Anna VanWulfen, the plaintiffs predecessor in title, filed a petition to redetermine the normal level of Avery Lake. It is not clear how the State court acted on that petition since the statutory scheme does not allоw for a single property to file such a petition or grant a private right of action. Nonetheless, on June 5, 2001, the Montmorency County circuit court conducted a new evidentiary hearing to determine the normal level for Avery Lake pursuant the Act. During that hearing, Ms. VanWulfen presented expert testimony that the water level caused damage to her property. The essence of the testimony was that since the water level was fixed in *736 1996, the level of the ground water on the property rose. The increase in ground water, in turn, submersed the brick-and-mortar footings, which caused the footings to sink into the ground at an uneven rate. Seasonal freezes and thaws created further damage, and ice pressure apparently caused the retaining wall to deteriorate. As a result, the home became unable to sustain the seasonal snow load.
On October 17, 2001, the county court filed an opinion setting the water level at the 1970-through-1982 level, that is, 890.3 feet above MSL during the winter months and 891.3 feet during the summer months. The court concluded that the lake level that existed during that period “caused no structural damage, earth mounding or any other problems disclosed on the record for this case,” and there was no scientific evidence “which convinces this Court that the seasonal lowering of the watеr level to. a reasonable level would be harmful to the fisheries and wildlife habitats.” Opinion, Def s Mot. S.J. Ex. 2 at 20. The court also rejected the plaintiffs expert testimony because it was “lacking in solid foundation” since the experts apparently did not know that the VanWulfen home previously had been a pavilion before it was remodeled; the experts did not realize that there is no foundation under at least three walls of the home; the experts did not know that lake level was not lowered to 888.8 feet until 1982 and assumed that the winter level of 890.3 began in 1997 when in fact that was the level established in 1970 and continued to 1982 without problem; neither expert visited the home and knew nothing of the soil underneath the home and whether it was conducive to supporting a home; the experts developed no facts through testing that would support the freeze-and-thaw theory of damage; and the experts'did not explain how since only 1997 the water level had caused settling of the home’s foundation. Id. at 18-20. On February 24, 2002, the court filed a supplemental opinion and order specifying that national geodetic vertical datum should be used as the reference when setting the water level. Although that reference is required by the statute, see Mich. Comp. Laws § 324.30701(h), apparently no one, including the drain commissioner, had used that reference in their measurements.
On April 12, 2002, the plaintiff filed a three-count complaint against Montmoren-cy County and its drain commissioner, James Zavislak, in the Michigan court of claims for damages to his property abutting Avery Lake alleging inverse condemnation as a result of the increase in ground water (count I); trespass and nuisance as a result of the increased water level of Avery Lake (count II); and gross negligence for failure to control and measure the water level of the lake (count III). The plaintiff contended that the action by the county in raising the level of Avery Lake caused damage to his house and that a mound of eаrth had developed between his house and the lake that constituted property damage as well. The parties stipulated to transfer venue to the Mont-morency County circuit court where the defendants moved for summary judgment in that court.
On August 15, 2003, the county court issued an opinion granting in part and denying in part the defendants’ motion. The court dismissed the plaintiffs gross negligence claim for lack of evidence. The court allowed a portion of the inverse condemnation claim to proceed but severely limited the question to whether the mounding on the property was caused by the county’s adjustment of the lake level. The court did not permit the plaintiff to seek damages for the house structure itself, reasoning that the issue of causation of the damage to the residence had been determined in the prior lake-level proceed *737 ing and therefore that part of the claim was barred by the doctrine of collateral estoppel, or claim preclusion. The plaintiff did not appeal that ruling, but rather elected to discontinue the lawsuit. On March 15, 2004, the State court entered an order dismissing the case without prejudice based on the stipulation of the parties.
The plaintiff has now filed a three-count amended complaint in this Court alleging that the actions of Montmorency County and its drain commissioner in regulating the water level of Avery Lake caused damage to the land and structures on his abutting property. He seeks damages under 42 U.S.C. § 1983 because the defendants violated the Takings Clause of the Fifth Amendment (count I), and he repeats the inverse condemnation (count II) and gross negligence (count III) claims that he brought in State court. On August 12, 2004, the defendants filed a motion for summary judgment. They contend that the plaintiff may not proceed with his claims in federal court because his taking claim is not ripe since the plaintiff has not fully pursued an inverse condemnation claim in Michigan state court. The defendants further assеrt that this Court may not adjudicate the plaintiffs claim under the Rooker-Feldman doctrine because the plaintiff is seeking in essence a federal court review of the State court’s decision on that part of the claim that alleges damages to the house. Finally, the defendants argue that the plaintiffs claims are barred by the doctrines of claim and issue preclusion based on the prior State court actions.
II.
The defendants have moved to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(1) and (6), and in the alternative they seek summary judgment. Although the defendants have raised a challenge to the jurisdictional facts on the question of the ripeness of the plaintiffs takings claim, it is quite clear from the parties’ submissions that the Court cannot adjudicate the motion without referring to matters outside the pleadings. Consequently, the defendants’ request for relief under Rule 12 must be rejected and the Court must proceed under Rule 56.
See
Fed.R.Civ.P. 12(b);
Eastman Outdoors, Inc. v. Blackhawk Arrow Co.,
A motion for summary judgment under Rule 56 presumes the absence of a genuine issue of material fact for trial. The Court must view the evidence and draw all reasonable inferences in favor of the non-moving party, and determine “whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.”
Anderson v. Liberty Lobby, Inc.,
The Takings Clause of the Fifth Amendment, made applicable to the States through the Fourteenth Amendment,
see Chicago, B & Q.R. Co. v. Chicago,
The State may appropriate private property for public use through its power of eminent domain.
See United States v. Clarke,
A.
The defendants argue here, as they did in the State inverse condemnation action, that the higher year-round water level of Avery Lake did not cause the damаge to the plaintiffs property, at least with respect to the settling of the house’s foundation, and therefore they are not obliged to provide just compensation to the private land owner for the consequence of the public regulation. They claim that the plaintiff is foreclosed from alleging a causal connection between the higher lake level and the damage to the house because that issue was determined adversely in a prior judicial proceeding, and therefore the doctrine of issue preclusion bars litigating that question in this Court. They also contend that the plaintiffs gross negligence claim is barred because the State court granted summary judgment to the defendants on the same claim.
“When deciding whether to afford preclusive effect to a state court judgment, the Full Faith and Credit Act, 28 U.S.C. § 1738, requires the federal court to give the prior adjudication the same preclusive effect it would have under the law of the state whose court issued the judgment.”
Stemler v. Florence,
As previously mentioned, there were two proceedings in the Montmorency County court involving the plaintiffs property. The first concerned adjusting the lake level under the Michigan Inland Lake Levels Act, and the second was the рlaintiffs action for damages based on inverse condemnation and gross negligence. In the inverse condemnation proceeding, the State court applied the doctrine of issue preclusion to bar litigation of the question of whether the adjustment of the water level of Avery Lake caused damage to the foundation of the plaintiffs home. That court reasoned that the same issue was decided in the prior proceeding to determine the normal lake level. The defendants urge this Court to apply the same reasoning to bar litigating the causation issue here. However, the Court believes that the doctrine of issue prеclusion was misapplied and that the question of whether the county has caused damage to the plaintiffs house may be litigated in an inverse condemnation action.
In order for the doctrine of issue preclusion to apply, the “first action” must be adjudicatory in nature.
See Pennwalt Corp. v. Public Serv. Com’n.,
Although the proceeding to establish the normal level of Avery Lake was conducted by a judge, it cannot properly, be characterized as judicial. The procedure outlined by the Michigan statute for determining the normal level of an inland lake requires a court to consider a variety of factors, such as “(a) [p]ast lake level records ... [;] (b) [t]he location of septic tanks, drain fields, sea walls, docks, and other pertinent physical features[;] (c) [g]overnment surveys and reports[;] (d) [t]he hydrology of the watershed; (e) [d]ownstream flow requirements and impacts on downstream riparians[;] (f) [fisheries and wildlife habitat protection and enhancement[;] (g) [u]pstream drainage[;] (h) [rjights of riparians[;] (i)[t]estimony and evidence offered by all interested persons[;] (j) [o]ther pertinent facts and circumstances.” Mich. Com. Laws § 324.30707(4). The process may require a hearing to evaluate the competing interests of various constituencies, but it does not call for the determination of past disputes or claims. It is distinctly legislative in nature, much the same as regulating public utility rates. The Supreme Court has stated in the latter context that “[t]he establishment of a rate is the making of a rule for the future, and therefore is an act legislative, not judicial, in kind .... And it does not matter what inquiries may have been made as a preliminary to the legislative act. Most legislation is preceded by hearings and investigations. But the effect of the inquiry, and of the decision upon it, is determined by the nature of the act to which the inquiry and decision lead up.”
Prentis v. Atlantic Coast Line Co.,
The hearing conducted by the Montmo-rency County court to establish the normal level of Avery Lake was therefore not an adjudicative proceeding. Under Michigan law, such an “administrative determination ... is not ‘adjudicatory in nature’ ... [t]hus, res judicata and collateral estoppel cannot apply in the pure sense.”
Pennwalt Corp.,
The application of the rule to the gross negligence claim, however, is another matter. The State court held that the plaintiff had failed to come forward with sufficient evidence to create a material question of fact as to that claim and that the defendants were entitled to judgment as a matter of law. Michigan law treats summary judgments as a final decision on the merits; litigating the gross negligence claim in federal court, therefore, is precluded.
See Franklin v. City of Pontiac,
B.
The defendants also argue that thе plaintiffs Section 1983 claim and inverse condemnation action amounts to an appeal from the State court decision to a lower federal court that is barred by the
Rooker-Feldman
doctrine. That rule is
*741
based on the pronouncements in
Rooker v. Fidelity Trust Co.,
The plaintiff contends that the Rooker-Feldman doctrine does not apply here because there is no final State court adjudication with respect to his takings claim. Because the lake-level proceeding was not adjudicatory, the Court agrees. The State inverse condemnation action plainly was a judicial proceeding, but there is a more fundamental reason that Rooker-Feldman does not present an obstacle to proceeding in this Court even in light of that action.
In
DLX, Inc. v. Kentucky,
The Rooker-Feldman doctrine does not bar the plaintiffs action in this Court under Section 1983 for a violation of the Fifth Amendment Takings Clause based on inverse condemnation.
C.
The defendants also point to Williamson to support their argument that the plaintiffs Fifth Amendment claim is not ripe and therefore there is no subject matter jurisdiction. The Court agrees.
“Article III of the Constitution limits the jurisdiction of federal courts to consideration of actual cases and controversies, and federal courts are not permitted to render advisory opinions.”
Arnett v. Myers,
*742
In
Williamson,
the Supreme Court held that a land owner’s Fifth Amendment takings claim against a local government is not ripe until the claimant has availed himself of all the administrative remedies through which the government might reach a final decision regarding the regulations that effect the taking, and the State’s judicial remedies for determining or awarding just compensation.
See
In this case, there is no “prong-one” ripeness issue since the plaintiff exhaustively sought an alteration of the level of Avery Lake in order to alleviate what he perceived to be the insidiously damaging effect of the year-round high water on his land and structures. However, Michigan courts have recognized that, under certain circumstances, a property owner may аssert a claim of inverse condemnation against state and local government for the purpose of seeking just compensation.
See Peterman v. Dep’t of Natural Resources,
The plaintiff argues that he already has been denied just compensation because of the adverse ruling by the State court on his claim for damages to his house. He acknowledges that “a plaintiff alleging inverse condemnation must prove a causal connection between the government’s action and the alleged damages.”
Hinojosa v. Dep’t of Natural Res.,
However, the plaintiff also claims damage to the sea wall resulting from the mounding of earth in the area between the house and the lake shore- — the portion of the claim that he voluntarily dismissed in State court. He has given no
*743
indication that he wishes to abandon that part of his claim, yet he has not sought just compensation for that “taking” in State court, and therefore he cannot establish the ripeness of a Fifth Amendment takings claim here. To allow the plaintiff to proceed on one part of his claim for damages would violate the “nonsegmentation principle,” which “holds that when evaluating the effect of a regulation on a parcel of property, the effect of the regulation must be viewed with respect to the parcel as a whole.”
K & K Constr., Inc. v. Dep’t of Natural Res.,
Before pursuing a takings claim in this Court, the plaintiff, therefore, must pursue an inverse condemnation claim in State court as to the entire parcel of land affected by the government regulation. He may not obtain completе relief in such an action. But only then will his Fifth Amendment takings claim ripen into an action cognizable in this Court.
III.
The Court finds that the plaintiffs claim for damages based on gross negligence is barred by a prior State court ruling. His Section 1983 claim based on the Fifth Amendment Takings Clause grounded in the theory of inverse condemnation is not barred by either the doctrine of issue preclusion or the Rooker-Feldman doctrine. Those claims, however, are not ripe for adjudication, and therefore this Court lacks subject matter jurisdiction to hear them.
Accordingly, it is ORDERED that the defendants’ motion to dismiss or for summary judgment [dkt. # 13] is GRANTED IN PART and DENIED IN PART.
It is further ORDERED that Count III of the amended complaint alleging gross damages is DISMISSED WITH PREJUDICE.
It is further ORDERED that Counts I and II of the amended complaint alleging claims under 42 U.S.C. § 1983 and inverse condemnation are DISMISSED WITHOUT PREJUDICE.
