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Last week, the Michigan Supreme Court declined to adopt a narrow view of the unique or special injury element in inverse condemnation, allowing Flint water plaintiffs’ case to proceed.
The tragic events in Flint, Michigan relating to tainted water are well-known throughout the country. Not surprisingly, they resulted in litigation. Last week, the Michigan Supreme Court issued 132 pages of competing opinions. A clear majority of the Court declined to dismiss inverse condemnation claims made by Flint residents.
First, the Court explained what inverse condemnation involves. “A claim of inverse condemnation is ‘a cause of action against a governmental defendant to recover the value of property which has been taken . . . even though no formal exercise of the power of eminent domain has been attempted by the taking agency.’ … ‘Inverse condemnation can occur without a physical taking of the property; a diminution in the value of the property or a partial destruction can constitute a ‘taking.’” The majority then identified the elements for inverse condemnation. The Court did not break any new ground, relying upon past precedents. “‘[A] plaintiff alleging inverse condemnation must prove a causal connection between the government’s action and the alleged damages.’ … Government actions directed at a plaintiff’s property must have ‘the effect of limiting the use of the property.’ … ‘[A]ll of the [defendants’] actions in the aggregate, as opposed to just one incident, must be analyzed to determine the extent of the taking.’ … A plaintiff ‘must establish (1) that the government’s actions were a substantial cause of the decline of the property’s value and (2) that the government abused its powers in affirmative actions directly aimed at the property.’”