MBE Rules · Constitutional Law
Takings — regulatory (Penn Central)
Penn Central
The rule
A regulation may effect a taking if (1) it denies all economically beneficial use (Lucas), OR (2) under Penn Central, considering (a) the economic impact on the owner, (b) the extent of interference with reasonable investment-backed expectations, and (c) the character of the government action.
In plain English
A government rule might be like taking your property if it seriously hurts its value, messes with your expected profits, or the rule itself is particularly harsh.
Worked example
A city law bans building on a property, dropping its value by 80%. The owner planned a hotel, expecting profits. This could be a taking because it severely impacts value and expectations.
Memory hook
Penn Central = Partial Taking Puzzle. Consider impact, expectations, and action character for regulatory takings.
The trap
Students think: Any economic impact equals a taking. Wrong, because impact is just one factor. The actual test is the multi-factor Penn Central analysis.
How examiners test it
The MBE loves: new zoning laws reducing property value. Trap: assume any value loss is a taking. Test requires weighing economic impact, expectations, and character of action.
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