On June 20, 2019, the Supreme Court is expected to decide whether to issue a writ of certiorari in Love Terminal Partners v. United States, No. 18-1062.
In 2006, Congress passed the Wright Amendment Reform Act, which codified a five-party agreement among the cities of Dallas and Fort Worth, Southwest and American Airlines, and the Dallas-Fort Worth Airport Authority. The Reform Act called for the physical demolition of a privately owned luxury terminal at the Love Field Airport in Dallas, and mandated that the leased property never again be used for air passenger service, the only profitable use of the property under the lease.
The U.S. Court of Federal Claims held the Government liable for a per se regulatory taking and a physical taking. On appeal, the federal circuit held that the investment property must have generated a current positive cash flow or else it could be susceptible to confiscation by the government without just compensation. The Court’s ruling not only goes against precedent, the case has broad implications for property owners, especially owners of investment property no yet showing a positive cash flow.
Love Terminal Partners invested almost $70 million in their lease, maintenance, and terminal construction on a 26-parcel of land located at the Love Field Airport. Following the Wright Amendment Reform Act in 2006, Congress obligated the City of Dallas to acquire the Love Field lease hold and to physically demolish it. The Supreme Court’s granting of certiorari is crucial, as this decision on appeal has not only severely affected the parties providing amicus briefs in support of the Petition, but it also contravenes takings jurisprudence.
Please find the amicus briefs here: