Corey v. Department of Land Conservation & Development

In 2004, the state of Oregon adopted Measure 37, which required that public entities that enforce land-use regulations must pay landowners whose property is affected by the regulation just compensation. Just compensation was defined as the reduction in the fair market value of the affected property interest as a result of the enforcement of the ordinance from the date the property was acquired. Landowners were required to make a written demand for compensation to the regulating entity. Virginia Corey and Bergis Road, LLC (Bergis) (plaintiffs) owned interests in a 23-acre parcel in Clackamas County. Bergis was owned by Corey’s sister, Bernita Johnston. In 2005, Corey and Bergis filed a written demand under Measure 37 seeking compensation from the Department of Land Conservation and Development (DLCD) for a reduction in the fair market value of their land caused by DLCD regulations. DLCD issued a final order and chose to waive enforcement of certain regulations that Corey and Bergis objected to instead of providing compensation. Corey and Bergis sought review of DLCD’s final order in the court of appeals. Subsequently, in the November 2007 general election, voters adopted Measure 49. Measure 49 amended Measure 37 by providing that those claimants whose claims related to land outside any urban-growth boundary were limited to three home site approvals. Measure 49 specified that it applied to all written claims for compensation filed under Measure 37, and Measure 49 contained a statement of legislative policy stating that it intended to modify Measure 37. In response to Measure 49, DLCD filed a notice of potential mootness and then a motion to vacate and remand, arguing that Measure 49 extinguished and replaced the benefits provided by Measure 37 and rendered the controversy moot.