Measure 37 specifies that a property owner is entitled to receive just compensation when a land use regulation is enacted after the owner or a family member became the owner of the property if the regulation restricts the use of the property and reduces its fair market value. If the owner proves that a land use regulation restricts the use of the property and reduces its value, then the government responsible for the regulation will have a choice: pay the owner just compensation in an amount equal to the reduction in value or waive the restrictive land use regulations.

Governments are attempting to curtail the effects of the measure by interpreting it as providing for a "compensation date" and a "waiver date." The compensation date is the date when a family member first acquired the subject property. Governments use the compensation date when determining the amount of money owed a claimant. The waiver date is when the present owner (claimant) acquired the subject property. Governments use the waiver date when deciding to waiver restrictive land use regulations in lieu of paying just compensation.

As no governments have set aside funds to pay claims, they routinely waive the restrictive land use regulations enacted since the waiver date. Unfortunately, the waiver date often falls after the restrictive land use regulations were first enacted, leaving claimants unable to use their property as they could have when their family first acquired it.

On October 13, 2005, oral arguments were presented in Cobos v. Marion County et al by the State of Oregon, Marion County, and our firm regarding the compensation date/waiver date interpretation. This case has been placed on hold pending the outcome of the Oregon Supreme Court case MacPherson v. DAS.

State's Motion for Summary Judgment

Exhibits

Plaintiffs' Response

Exhibits

State's Reply