Contracts and Takings Clause Flashcards
Does the Contracts clause apply against state, local, and federal governments?
No. the contracts clause only applies to state and local government. If it is a claim against the federal government, it goes under the Due Process Clause.
What is the standard that should be followed when using the Takings Clause?
When a state takes the property of a private entity, it is only valid as long as it is reasonably related to the achievement of a legitimate end.
What is the three part test for if the government has violated the contracts clause?
1) Is there a substantial impairment of the contracts provision?
2) Does the impairment serve a significant and legitimate state interest?
3) Is the law reasonably related to the legitimate state purpose.
What is the scrutiny applied when the government wants to interfere with their own contracts?
Strict Scrutiny.
What are the two types of takings?
1) Possessory Takings - Government comes in and actually takes physical property.
2) Regulatory Taking - Government enacts a regulation that leaves no economically viable use of property.
What are the 4 questions to ask when examining a possible takings clause situation?
1) Is there a taking?
2) Is it a property?
3) Is it for public use?
4) Is just compensation given for the property?
What does the court examine when determining if the taking of property is for public use?
The taking must be for public use or it is invalid.
The court has broadly described public use and applied the rational basis test, so almost anything will fulfill that requirement.
What will the Court examine when determining if a regulatory taking exists?
1) The economic impact of the regulation on the claimant;
2) The extent to which the regulation has interfered with investment expectations;
3) The character of the government action.
