Uncompensated Taking of Property-Due Process

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7^th Circuit Court of Appeals

Case Name: Willow Way, LLC v. Village of Lyons, Illinois

Case No.: 22-1775

Officials: Easterbrook, Hamilton, and Pryor, Circuit Judges.

Focus: Uncompensated Taking of Property-Due Process

Willow acquired a house in need of substantial repairs, with project estimates surpassing $100,000. Renovation efforts commenced in 2017 but came to a halt shortly thereafter. Over the course of several years, the house remained unoccupied, prompting the Village to propose its demolition on account of being a nuisance. The Village took steps to notify the public, including publishing notices, affixing notices to the house, and sending correspondence to Willow, who openly acknowledged being aware of the impending demolition. Willow, however, only responded in the week designated for the demolition, when their attorney proposed a meeting. Subsequently, the property was sold at auction to settle the Village’s lien for the expenses incurred in the demolition.

In response, Willow filed a lawsuit under 42 U.S.C. 1983, alleging an uncompensated taking of their property. The Seventh Circuit upheld the summary judgment in favor of the Village. The demolition of a deteriorated structure deemed a public nuisance does not raise concerns under the Due Process Clause and does not necessitate compensation. The constitutional protection extended to property owners consists of notice and the opportunity for a hearing, both of which were provided by the Village to Willow. Notably, Willow did not request a hearing. Illinois law provides constitutionally adequate procedures; anyone seeking to prevent a demolition merely needs to initiate legal proceedings in state court, which automatically suspends any action until a judge determines whether the building satisfies the statutory criteria for demolition. Consequently, the district court was not obligated to address a state law inverse-condemnation claim.

Affirmed.

Decided 10/05/23

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