Law for Business 10th Edition by James Barnes,Terry Dworkin,Eric Richards

Exercise 4

Ridge Line owned a large shopping center. The U.S. government purchased property to build a postal facility next to a shopping owned by Ridge Line. When the postal facility was completed, storm water runoff sharply increased by at least 70 percent. Accordingly, Ridge Line built a storm water detention pond to handle the increased runoff. It asked the Postal Service to share in the cost of constructing the detention facilities. However, the government refused to pay anything. Ridge Line then sued, claiming the additional water flow caused by the development of the Postal Service facility constituted a taking entitling it to compensation under the Takings Clause of the United States Constitution. The Postal Service argued there was no compensable taking because Ridge Line did not suffer a permanent and exclusive occupation by the government that destroyed its possession, use, or disposal of its property. Is the Postal Service correct? Explain.