Koontz held that Nollan and Dolan apply when a permit is denied because the applicant refuses an allegedly unconstitutional condition, and when the condition requires money. The decision expanded takings scrutiny in land-use permitting.
This case should connect property-rights doctrine to real permitting negotiations. The central power question is when government can condition development approval on payments or mitigation demands.
Do Nollan and Dolan apply when a permit is denied for refusal to accept a condition, and when the demanded condition is money rather than real property?
The Nollan and Dolan unconstitutional-conditions standards apply when a land-use permit is denied because the applicant refuses to accept a condition, and they apply when the demanded condition is a payment or other monetary exaction rather than a transfer of real property.
How the justices lined up in this decision.
The ruling gives developers and property owners more leverage when governments demand mitigation, fees, or other concessions during permitting. It can protect owners from coercive demands unrelated to a project’s impacts. It can also make environmental and growth-management negotiations more legally risky for local governments, especially when they use permits to address wetlands loss, infrastructure strain, traffic, or other development impacts.
Justice Alito wrote the Court’s opinion, joined by Chief Justice Roberts and Justices Scalia, Kennedy, and Thomas. Justice Kagan dissented, joined by Justices Ginsburg, Breyer, and Sotomayor.