Penn Central Transportation Co. v. New York City

Penn Central Transportation Co. v. New York City
Supreme Court of the United States
Argued April 17, 1978 Decided June 26, 1978
Full case name	Penn Central Transportation Company, et al. v. New York City, et al.
Citations	438 U.S. 104 (more) 98 S. Ct. 2646; 57 L. Ed. 2d 631; 1978 U.S. LEXIS 39; 11 ERC (BNA) 1801; 8 ELR 20528
Prior history	Appeal from the Court of Appeals of New York
Holding
Whether a regulatory action that diminishes the value of a claimant's property constitutes a "taking" of that property depends on several factors, including the economic impact of the regulation on the claimant, particularly the extent to which the regulation has interfered with distinct investment-backed expectations, as well as the character of the governmental action.
Court membership
Case opinions
Majority	Brennan, joined by Stewart, White, Marshall, Blackmun, Powell
Dissent	Rehnquist, joined by Burger, Stevens
Laws applied
U.S. Const. amend. V

Penn Central Transportation Co. v. New York City, 438 U.S. 104 (1978) was a landmark United States Supreme Court decision on compensation for regulatory takings.

The New York City Landmarks Law was signed into effect by Mayor Robert F. Wagner, Jr., in 1965. This law was passed after New York citizens grew concerned over the loss of culturally significant structures such as Pennsylvania Station, demolished in 1963. The Landmarks Law's purpose is to protect structures that are significant to the city and still retain their ability to be properly used. This law is enforced by the New York City Landmarks Preservation Commission.

Use of railroad systems saw its peak in the 1920s and began to falter in the mid-to-late 1930s. World War II revitalized use of the railroad systems in the early 1940s and brought the industry back to prior success. While this period saw nearly half of Americans using the railroad systems, by the late 1940s, there was once again a steep decline in railroad use. That put many of the railroad companies out of business and left others to find new ways to increase revenue.

In 1954, New York Central Railroad began to look at proposed plans to replace Grand Central Terminal. Early designs by William Zeckendorf and I. M. Pei included an ambitious 80-story, 4,800,000-square-foot (450,000 m²) tower that would be over 500 feet (150 m) taller than the Empire State Building. None of the early designs ever made it past the sketch phase and, for the time being, all plans to replace Grand Central Terminal were abandoned.