Constitutional Law - Inverse Condemnation: Supreme Court Gives Property Owners New Rights

Anthony Palazzolo and associates originally formed Shore Gardens, Inc. (SGI) in 1959, to acquire waterfront property in Westerly, Rhode Island.'The town of Westerly was incorporated in 1669.2In recent years, Westerly had become a popular vacation and seaside destination, with thousands of visitors coming regularly to enjoy its beaches and coast.3 SGI's property was located between Winnapaug Pond and a well-traveled road.4 The road provided chief access to the popular Misquamicut State Beach.5Most of the property had always been salt marsh subject to tidal flooding.6 Thus, substantial fill was needed before significant structures could be built.7 Over the years, SGI's periodic applications to develop the property were rejected by various government agencies due to environmental concerns, but after 1966 no applications were made for over a decade.8 Two intervening events were critical to the case.9 The first occurred in 1971, when the State formed respondent Rhode Island Coastal Resources Management Council (Council) to protect the State's coastal properties, and the Council created regulations known as the Rhode Island Coastal Resources Management Program (CRMP).0The CRMP designated salt marshes like those on SGI's property as protected "coastal wetlands" on which development was very limited.llThe second occurred in 1978 when * Winner of a North Dakota State Bar Foundation Outstanding Note/Comment Award.I. Palazzolo v. Rhode Island, 533 U.S. 606, 613 (2001).2. Id. at 612. 3. Id. 4. Id. at 613. 5. Id. 6. Id. 7. See Brief for Petitioner at 3, Palazzolo v. Rhode Island, 533 U.S. 606 (2001) (No. 99-2047) (explaining that Petitioner would have to fill his land in the same manner that neighboring landowners did).8.