Governmental Approval Of A Private Development Cannot Trigger A Takings Claim

When the government approves a private development that diminishes neighboring property values, can a property owner maintain a takings claim? According to a recent California court decision, the answer is no – governmental approval of a private project cannot trigger inverse condemnation liability.

Background

In De La Cruz v. City of Los Angeles (2026 U.S. Dist. LEXIS 26413), a new six-story apartment building was being constructed next to the plaintiff's residence. The development was approved without a full environmental impact report based on a CEQA exemption for projects near transit. The property owner sued the City for inverse condemnation under the federal and state takings clause, arguing the project would block all direct sunlight during afternoon hours and the owner's property would no longer be fit as a family home. The City sought to dismiss the lawsuit, asserting that the approval of a development project does not constitute a taking as a matter of