The Bloom Is Off Law Schools

The New York Times reports that this year’s LSAT takers were down to 129,925, down from 155,050 last year, and 171,514 the year before. This could be down to the notoriously difficult nature of the test and the fact that many people don’t make the most of the help that is out there when it comes to passing it, like lsat tutoring. David Segal, For 2nd Year, A Sharp Drop In Law School Tests, N.Y. Times, March 20, 2012, at p. B1. There are also other theories as to why this may be. One of which is over the years the earnings and image of the legal profession underwent a metamorphosis, attracting hordes of young people to law school. Alas, many of these young people, though bright enough, lack the patience and dedication that the practice of law requires, and the temperament to be lawyers, and one byproduct of this phenomenon has been a profession full of people who don’t like what they do for a living, and who, in disregard of the best legal tradition, misbehave in and out of court. So if fewer of those don’t go to law school . . . Maybe that will be a benefit in the long run, not only in a competitive sense but also in keeping that reputation admirable.

As for your faithful servant, he went to law school in antedeluvian days and never had to take the LSAT. Didn’t hurt our career and our accomplishments one bit. There may be a lesson in that.

Anyway, if fewer bright young people become lawyers and more become engineers, the country may be better off.

The Feds Take It on the Chin Again on Rails-to-Trails Litigation

You may recall our recent post on the mysterious behavior of the Feds who, having lost a bunch of inverse condemnation cases regarding rails-to-trails legislation, keep on trying and losing. Click here. In a nutshell, a lot of railroad rights of way are easements, so that when the railroads stop operating, the land underlying the easement area reverts to the owner of the underlying fee title free and clear of the easement that has thus been abandoned, and therefore the owner of that land (formerly the owner of the servient estate while the railroad was operating) becomes the fee simple absolute owner of the strip of land in question. So far, so good — that much is first-year law school Property I stuff.
But congress passed a law giving the feds the right to convert these abandoned railroad rights-of-way to hiking and biking trails, which amounts to a taking of the servient owners’ land for which compensation is payable. At this point, we knew we needed to get a lawyer on our case, so we looked around for an Easement Attorney San Diego and surrounding areas, and were fortunate enough to find one on our doorstep. However, the U.S. Supreme Court made it much clearer when in Preseault v. I.C.C. it held that the aggrieved owner’s remedy for such a taking is a suit in inverse condemnation in the U.S. Court of Federal Claims. And so, the [servient] opwners of those abandoned railroad railroad rights of way have been filing these suits and consistently winning, as against the feds’ obdurate resistance.
More recently, the feds tried a new tack. They asked the Indiana courts to rule as a matter of Indiana state law that when a railroad abandons operations, its former right of way nonetheless does not revert to the servient owner, because the feds say that what they mean to accomplish is to establish “rail banking” which is to say that perhaps some day in the future somebody may want to use those abandoned railroad rights of way again for railroad use, so in a manner of speaking the current railroad operations abandonment is not a real abandonment of their easement.
They just got their answer from the Indiana Supreme Court in Howard v. United States, Case No. 94S00-1106-CQ-333, opinion filed March 20, 2012. The answer is “No.” Concluded the court:
“We hold that, under Indiana law, railbanking and interim trail use pursuant to the federal Trails Act are not within the scope of railroad easements and that railbanking and interim trail use do not constitute a permissible shiftung public use.”
So will the feds now stop beating this dead horse? We shall see.

Lowball Watch – New York

Remember the Didden case? As in Didden v. Village of Port Chester, 173 Fed. Appx. 931 (2d Cir. 2006)? Sure you do. That was the notorious case that figured in the appointment of Judge Sotomayor to the U.S. Supreme Court, that was disposed of in an unsigned opinion by a U.S. Court of Appeals panel on which she served. In a nutshell, in the court’s words

“According to Appellants, at a November 2003 negotiation session with  Defendants-Appellees G&S and Wasser, Wasser demanded $ 800,000 from them in order to avert a condemnation proceeding of their property within the redevelopment district, and offered to allow them to proceed if Defendants-Appellees were given a partnership interest in the project. Appellants refused both demands and, two days later, they received a petition seeking to condemn their property. On appeal, Appellants advance constitutional claims based on the Fifthand Fourteenth Amendments asserting, inter alia, that they have a right “not to have their property taken by the State through the power of eminent domain for a
private use, regardless of whether just compensation is given.”

The court ignored the extortionate nature of these events and ruled against Didden on limitations grounds, holding that he should have sued earlier. The court did not explain how Didden was supposed to know about the extortionate offer before it was made. The court also upheld the taking on the authority of Kelo. So much for history.

We now learn that the case eventually went to a valuation trial with the following results. Condemnor’s offer –  $975,000; condemnor’s appraisal – $1,045,000; court award – $3,062,000. That comes to over three times the offer.

A Lesson in Governmentspeak

You may recall that a few days ago, on March 11, 2012, to be exact, we had a post on misconduct of government counsel, that had been inspired by the ongoing controversy over some federal prosecutors who failed to make a required disclosure of exculpatoty evidence to the late Senator Ted Stevens of Alaska, during his prosecution – click here.

By way of follow-up, we learn from today’s Los Angeles Times (Richard A. Serrano and Kim Murphy, Lawyers Faulted in Trial of Ted Stevens, L.A. Times, March 16, at p. AA1, quoting the special prosecutor handling this affair) that the misconduct was unintentional, but that the prosecutors in question purposefully violated criminal contempt statutes. We have problems understanding this evident doubletalk because our Webster’s New World Thesaurus, indicates that “purposeful” and “intentional” are synonymous. You can take it from there.

Guess What? Those “Green” Municipal Land-Use Regulations Have no Effect on Climate Change

Atlantic.com brings us the dispatch that those touted municipal regulation imposed to reduce “Greenhouse emissions” aren’t working. Nate Berg, The Climate Plans Aren’t Helping Reduce Greenhouse Gas Emissions, March 8, 2012, click here.

“[A]s it turns out, climate plans aren’t really doing all that much to bring greenhouse gas emissions down. A new study in the Journal of Urban Economics looked at the climate plans and greenhouse gas emission reductions of cities in California to find that there doesn’t seem to be any causal connection between greenhouse gas reductions and climate action plans.”

For the abstract of the Journal of Urban Economics article, click here.

Lowball Watch – Louisiana

We are informed that the Louisiana District Court has just entered judgment in a case of taking of 10.12 acres (Orleans Levee District v. New Orleans Michoud Industrial Park, No. 2008-13114, judgment entered March 13, 20012). The numbers are as follows: condemnor’s deposit – $175,000; award for the part taken – $414,979; severance damages – $723,137, for a total compensation of $1,138,114. Plus interest which is yet to be calculated, and attorneys fees which are yet to be awarded. So far, that comes to 6.5 times the condemnor’s deposit. Stay tuned for the balance.

The Missing Part of the California Story: Housing

It isn’t every day that the lefty Los Angeles Times editorial page sings in harmony with its conservative Wall Street Journal counterpart. On March 13th, both these journalistic biggies ran op-ed pieces on the decline of California. See Bradley Schiller, California, a Bad Bet For Business, L.A. Times, March 13, 2012, at p. A11, and Michael J. Boskin and John F Cogan, California’s Greek Tragedy, Wall Street Jour., March 13, 2012, at p. A13.

Both opinion pieces round up the usual suspects: High taxes, a fiscally irrational legislature, an oppressive regulatory climate, unaffordable government social programs, a business-hostile, time and money-consuming bureaucracy, overreaching public employee unions, cultural and linguistic tensions (California is now 37% Hispanic and 13% Asian — which adds up to one-half of the state’s population), etc., etc. There is merit to being concerned about all these factors but something big is missing from this picture. Housing cost.

As we have had occasion to observe in our occasional posts, California housing costs are way higher than those in other states, whereas the median California income ($42,578), is a mere $2633 higher than the national average ($39,945), which doesn’t begin to take care of the additional cost of local housing. And by using the phrase “cost of housing” we don’t mean to evoke flossy images of Beverly Hills or Rancho Palos Verdes. Go to Google, and type in “homes for sale in Burbank” and see what you get. Why Burbank? Because it’s an ordinary suburban community in the East San Fernando Valley, we live there, and we know first hand that it is an old, middle to lower-middle class community whose housing stock largely consists of decades-old, small, two bedroom houses well below 2000 square feet — 1500 or less is usually more like it. Then check out what is for sale and for how much, and you’ll get the message. And don’t cheat by looking at the cluster of more recently built million-dollar homes way up in the hills above Burbank, although if you do, that will only make our point in spades; who the hell would want to pay over a million bucks to live in the boondocks of Burbank?

On top of that, the latest dispatches indicate that with fewer people buying homes and more people losing homes by foreclosure, what you get is pressure on the rental market. See Alejandro Lazo, Rising Rents May Signal a Recovery, L.A. Times, March 13, 2012, at p. B1. That headline tries to put a positive spin on things but it does not represent current reality. A friend moved out here from the Southeast recently (where he lived in a four-bedroom home in one of the best suburbs of Charlotte), and we have been watching his travails in trying to find a place to live, only to discover that around here $400,000+ gets you a home with all the charm and grandeur of a chicken coop, in a downscale neighborhood, and that it takes about two grand per month to rent a conveniently located, if downscale two-bedroom apartment. This isn’t good folks.

All of which, put together, explains why Californians, particularly gringos, are leaving the state in high numbers that would be even higher if it were possible for them to sell their homes in the slow California market, without losing their shirts.

Afterthought. And why are California homes overpriced even now? How did they get to price levels so high that they remain unaffordable even after the “bubble” popped? Read Chapter 6 of Professor William A. Fischel’s 1995 book REGULATORY TAKINGS: LAW, ECONOMICS AND POLITICS (Harvard U. Press), which tells the story of  California’s excessive land-use regulatory climate and its impact on housing prices, and of the California courts that never hesitate to uphold extreme land-use regulations, no matter what. As the nation’s erstwhile dean of the land-use bar, the late Richard Babcock of Chicago once put it: “In California, the courts have elevated government arrogance to an art form.”

 

 

Lowball Watch – Kansas

A recent opinion of the Kansas Supreme Court, Miller v. FW Commercial Properies, No. 105,006 (dealing mostly with who is a party in interest in an eminent domain action, and his entitlement to attorneys fees) also reports that the condemnor’s offer was $7,000, the award of “appraisers” was $18,000, and the eventual settlement was $25,000, or over three times the original offer.

For a discussion of the attorneys’ fees controversy and a link to the opinion, check out the blog of our colleague Robert Thomas at www.inversecondemnation.com March 12, 2012.

Misconduct of Government Counsel: It All Depends on Whose Ox Is Getting Gored

My morning newspaper has brought the dispatch that various U.S. Senators have their knickers in a twist, deploring the government lawyer misconduct in the trial of Senator Ted Stevens of Alaska, who was convicted based on improper evidence, and whose conviction was later vacated because of that misconduct. Evidently, what six eager-beaver federal prosecutors did was to withhold from Stevens’ defense what the L.A. Times describes as “less-incriminating statements from witnesses and other evidence.” As a result, the federal trial court vacated Stevens’ conviction and dismissed the case. In the investigation of this caper that followed, a special prosecutor found “systematic concealment of evidence but recommended against criminal charges against those responsible.” Richard A. Serrano, Senators Want Stevens Prosecutors Punished, L.A. Times, March 9, 2012, at p. A11.

Doing justice and making sure that trials are conducted in an ethically upright way is great stuff, and a subject close to our heart, so all this high-level foofaraw raises the question in our mind as to why lesser folks (like our former clients, for instance) were not the subject of a similar display of a moral high dudgeon, when they were victimized by government lawyers tampering with evidence in eminent domain trials. Some of our readers may not know this, but it so happens that your faithful servant, at one point in his checkered career, had to deal with several such cases.

Back in the old days, it was common that condemning agencies would strip the reports of their appraisers of parts which they did not wish to disclose in response to discovery orders, and then spring them as a surprise in trial. Don’t take our word for it. The then Los Angeles City Attorney, Roger Arnebergh wrote a law journal article in which he noted that the practice of condemnors exchanging only “bare bones” appraisal reports in response to discovery orders, and saving the complete reports for trial, was common (though in fairness to Arnebergh, his office was not guilty of that practice).

Our first such case was Regents v. Morris, 266 Cal.App.2d 616 (1968), where the court took a dim view ofcondemnor’s counsel and appraiser tampering with the discovery process, and reversed the judgment. And so the precedent had been established, and we thought that Morris put an end to the appraisal report stripping game. Not quite. In Nestle v. Santa Monica, 6 Cal.3d 920 (1972) the Supreme Court faced the same problem, but unlike Morris, it affirmed the misconduct-tainted judgment. Why? Because the ambushed condemnees’ counsel did not try to “unring t he bell” by performing the useless ceremony (after the condemnor’s surprise was sprung) of asking the trial court for a recess, or made a motion to strike, or a motion in limine.

In People v. Sunshine Canyon, 2d Civ. No. 36371 (1972) (unpublished), the same scenario of appraisal report tampering was before the court. The condemnee’s counsel who tried that case happended to be the same one who tried Morris and Nestle, and by now he had learned his lesson the hard way. So he complied meticulously with Nestle’s procedural recipe  for objecting etc. It did no good. The Court of Appeal simply held that the misconduct was not prejudicial.

With this ambiguous track record, condemnors’ lawyers were not ready to give up their underhanded practice of appraisal report stripping. They tried it again and again, but in time California courts rose to the occasion and interdicted it.

There were also eminent domain cases in which condemnor’s counsel engaged in gross impropriety of launching a baseless personal attack on faultless condemnees.  In Garden Grove School Dist. v. Hendler, 63 Cal.2d 141 (1965), condemnor’s counsel launched a vicious personal attack on the condemnee, his lawyers and his appraisers, calling them “pirates,” falsely accusing them of “speculating” in eminent domain lawsuits, and appealing overtly to the jury’s self-interest as taxpayers. The trial court saw nothing wrong with that. The court of appeal did; it called condemnor’s counsel a “buffoon,” but found — what else? — that the misconduct of government counsel was not prejudicial. Though we eventually prevailed in the California Supreme Court (and on retrial) I always found it incomprehensible how a case like that, involving undeniable, gross misconduct of counsel, had to go to the Supreme Court, why it wasn’t dealt with summarily by the lower courts?

Then there was City of Los Angeles v. Decker, 18 Cal.3d 860 (1977), where condemnor’s counsel lied to the jury by arguing that there was no local demand for parking, so the owner’s contention that parking was the property’s highest and best use was meritless, when in fact there was a shortage of parking in the area, and the city’s own environmental impact report took note of that. Again, neither the trial court, nor the court of appeals saw anything wrong with the condemnor’s conduct, and it took the Supreme Court to step in and restore a modicum of ethical behavior on the part of government counsel.

Which brings us to the bottom line of this post. With all these instances of goverment counsel misconduct, was anyone discipolined? Don’t be silly. Of course not. In fact, the government lawyer who “starred” in the Morris case was later appointed to the bench. So if we take note of the still ongoing Senator Stevens brouhaha, and compare it with these war stories, it would appear that misconduct of government counsel is treated as a serious transgression only when its victim is a credentialled member of the establishment.

Sigmund Freud Said That Sometimes a Cigar Is Only a Cigar, But Is California’s Proposed High Speed Railroad Only a Railroad?

We have been keeping track of the misadventures of the proposed California “bullet train” high speed railroad, that if and when built, is planned to run from San Diego to San Francisco, but which, according to its planners is getting started by blowing a few billion dollars building its first segment in the Central Valley (aka the middle of nowhere) between Bakersfield and Fresno. All along, viewing it as a transportation/engineering issue, we wrote about its problems, but it turns out that we may have been barking up the wrong tree. If today’s Los Angeles Times is to be believed, what’s afoot is a stealth attempt at doing some disguised social engineering. At first, we had trouble believeing it, but hey, why would the Times lie about something like that? See the front-page story  by Ralph Vartabedian and Dan Weikel, A Collision of Visions on Bullet Train, L.A.Times, March 8, 2012 – click here.

It turns out that the high speed rail promoters’ plans “are also a means to alter the state’s social, residential and economic fabric.” According to these folks, “[t]he fast trains connecting Los Angeles and San Francisco would create new communities of high-density apartments and small homes around stations, reducing the suburbanization of California, . . .That new lifestyle would mean fewer cars and less gasoline consumption, lowering California’s contribution to global warming.”. . .”The rail system would reduce the economic and transportation isolation of the Central Valley, which would grow by 10 million or even 20 million people, according to Gov. Jerry Brown.”

Others disagree and “regard the ambitious project as a classic government overreach that will require taxpayer subsidies. But they also see something more sinister: an agenda to push people into European or Asian models of dense cities, tight apartments and reliance on state-provided transportation.”

So the proponents of this brave, new model of living, are assuming — optimistically, as Governor Brown concedes — that California will grow to 60 million people from the present 37.5 million, “with most of the growth [of some 10 million] in the agricultural heartland.”

We could go on wending our way through the various arguments pro and con, but it seems to us that California historian Kevin Starr hit the bull’s eye when he asked: “What are all of these 10 million additional people going to be doing for a living in the Central Valley?” What indeed? When California was absorbing lots of new residents they were attracted by employment opportunities in the  the aerospace industry (among others) and comparatively cheap housing  available to ordinary people on friendly terms. But what would attract them today, especially to the Central Valley? Besides, Californians, particularly those of the gringo persuation, are leaving California in droves. We don’t know any Californians, and can’t visualize many, who would pull up stakes and move from the higly developed Los Angeles-Orange County-Vetura County area (where, as Wille Sutton used to say, the money is) to, say, Fresno, because if they do, it’ll be only a two-hour hop on the “bullet train” to San Francisco.

We’ll just have to wait and see. We are pessimistic because we remember Jerry Brown’s last gubernatorial reign, when he cut back on freeway construction in order to worsen traffic and thereby motivate people to use public transportation. Except that there was no available public transportation equal to the task, and so he gave us gridlock instead.

Stay tuned.