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ARTICLE · 01 AUGUST 2025

Sheetz Loses Again: Legislatively Enacted Fees Satisfy Nolan/Dollan

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In 2024, in what was heralded as a big win for developers in California, the U.S. Supreme Court upended decades of California precedent and held that legislatively enacted development impact fees must satisfy the "essential nexus" and "rough proportionality" tests ...

United StatesLitigation, Mediation & Arbitration
Benjamin Z. Rubin
Benjamin Z. Rubin
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In 2024, in what was heralded as a big win for developers in California, the U.S. Supreme Court upended decades of California precedent and held that legislatively enacted development impact fees must satisfy the "essential nexus" and "rough proportionality" tests established in Nollan v. California Coastal Commission (1987) 483 U.S. 825 and Dolan v. City of Tigard (1994) 512 U.S. 374. Sheetz v. County of El Dorado (2024) 601 U.S. 267. But the Supreme Court did not decide whether the legislatively enacted fee program at issue in Sheetz actually failed to comply with Nollan/Dolan. Instead, it remanded that issue back to the California courts so that they could address that issue in the first instance. After supplemental briefing and additional oral argument, the California Court of Appeal has again rejected Mr. Sheetz's takings challenge, holding in a published opinion that the County of El Dorado's legislatively enacted fees satisfy Nollan/Dolan.

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