The Murr family petitioners are two sisters and two brothers who own two adjacent lots along the Lower St. Croix River in Troy, Wisconsin. Their parents purchased Lot F in 1960, transferred it to the family plumbing company, and purchased neighboring Lot E in 1963, holding it in their own names. The parents conveyed Lot F to the petitioners in 1994 and Lot E in 1995.
The lots are contiguous, with similar topography featuring a steep bluff that limits developable land to less than one acre on each lot despite their 1.25-acre sizes. In 1972, the St. Croix River received federal protection under the Wild and Scenic Rivers Act, prompting Wisconsin to authorize rules in 1976 that limit development to preserve the river's scenic qualities. The regulations require at least one acre of suitable land for separate building sites and include a merger provision that bars the separate sale or development of adjacent substandard lots under common ownership. A grandfather clause preserves the right to develop substandard lots that were in separate ownership on the regulation's effective date of January 1, 1976.
After the lots came under common ownership through the 1994 and 1995 transfers, the merger rules prevented the petitioners from selling or developing Lot E separately. The petitioners sought variances from the St. Croix County Board of Adjustment to allow separate sale or use of the lots and to relocate the cabin on Lot F, but the board denied the requests. The Wisconsin Court of Appeals upheld the denial, determining that the ordinance effectively merged the lots.
The petitioners then filed an action in the Circuit Court of St. Croix County, claiming the regulations effected a regulatory taking by depriving them of all or practically all use of Lot E. The parties submitted appraisals showing a combined regulated value of $698,300, a value of $771,000 if treated as two buildable lots, $373,000 for Lot F alone with improvements, and $40,000 for Lot E as undevelopable. The circuit court granted summary judgment to the respondents, noting that the petitioners retained options such as preserving or relocating the cabin or building a new residence on the combined property, and that the value decrease was less than 10 percent.
The Wisconsin Court of Appeals affirmed the judgment, holding that the takings analysis must consider the petitioners' property as a whole rather than Lot E in isolation. The court found that the petitioners could not reasonably expect separate treatment of the lots given the regulations in place when they acquired them. The Supreme Court of Wisconsin denied discretionary review, after which the U.S. Supreme Court granted certiorari to consider the definition of the parcel in this regulatory takings context.
View case