11th Circuit Court of Appeals Holds Alleged Delay by City in Approving Project Did Not Violate Developers’ Substantive Due Process Rights Nor Did it Violate Unconstitutional Conditions under the Fifth Amendment

Plaintiffs sought to develop land in the City of Delray Beach. Following delays in the City’s process for approving land development projects, the Developers filed a complaint against the City, alleging an unconstitutional conditions claim under the Fifth Amendment and a substantive due process claim under the Fourteenth Amendment. The district court dismissed the claims, and the developers appealed.

On appeal, the court found that the district court did not err in dismissing the Developers’ unconstitutional conditions claim. The unconstitutional conditions doctrine “prevents the government from coercing people into giving” up their property rights. Here, however, the complaint failed to raise an inference that the City demanded reconveyance of the alleyways at issue as a condition of approval. Additionally, the complaint failed to support the inference that the City demanded creation of a two-way road as a condition of approval. Even taking the complaint’s allegations in the light most favorable to the Developers, the complaint only established that the City considered requiring the creation of a two-way road, rather than actually doing so.

Finally, the court found that the district court did not err in dismissing the Developers’ substantive due process claim. The court noted that “there is generally no substantive due process protection for state-created property rights” unless “a person’s state-created rights are infringed by a legislative act.” Here, the Developers’ complaint failed to identify a legislative act by the City that has infringed their rights. As such, the substantive due process claim was properly dismissed.

Edwards, CDS, LLC v. City of Delray Beach, 699 Fed.Appx. 885 (11^th Cir. CA 6/29/2017)