welcome to usaapay.com

2020-

2020-04-18 e
Viral News - Just Compensation for Forced Closures

Will States Owe Businesses Just Compensation for Forced Closures When the COVID-19 Pandemic Is Over?

A regulatory taking is when a regulation put forth by a governmental authority diminishes the value of one’s property.

The spread of the coronavirus has prompted most states to issue orders mandating non-essential businesses to close and non-essential workers to stay home. These regulations, whether or not they are justified, will decimate small and large businesses alike (and indeed already are, in many areas). Loans are being made available to businesses, some containing a forgiveness option provided that the business spends the money in a specified way.

Regulations and Lawsuits

But when the dust settles after all of this, we could very well see a flood of lawsuits from business owners, destitute after the government’s loan money has run out and their firms are dried up. And these suits will likely be on the grounds of the Fifth Amendment. Commercial enterprises, some attorneys will say, were entitled to compensation from the government, not beheld to it for repayment of an emergency loan. The statewide regulations mandating business closure violated, they’ll insist, the takings clause of the Fifth—forcing them to close up shop was a regulatory taking.

A regulatory taking is when a regulation put forth by a governmental authority diminishes the value of one’s property, such that that property owner becomes entitled to compensation for it. But as to whether these aforementioned regulations constitute a regulatory taking? Well, it’s complicated. (read more)

______________________

Permission is hereby granted to any and all to copy and paste any entry on this page and convey it electronically along with its URL,
______________________