In the case of Pazzalo v. Rhode Island the United States Supreme Court reversed a determination by the Rhode Island Supreme Court which held that land owners had no right to sue for a regulatory taking if the land owners purchased title to land on which a preexisting restriction existed. Before this case, the rule in New York also precluded landowners from challenging land use regulations that existed at the time they purchased land. After holding that a regulatory takings challenge existed, the Supreme Court remanded the case back to Rhode Island to decide whether the preexisting regulations affected the plaintiff’s investment-backed expectations. This article discusses the details and background of the Pazzalo case.
John R. Nolon, Supreme Court Takes a Look at Takings, N.Y. L.J., July 2, 2001, at 1, http://digitalcommons.pace.edu/lawfaculty/707/.