Kentucky court rejects landowner's compensation claim over floodplain rules
The Kentucky Court of Appeals affirmed a decision that a compensation claim was premature because the owner did not seek a variance.
The Kentucky Court of Appeals affirmed a decision on October 30, 2026, to dismiss a compensation claim filed by Lampton Securities Partnership, LLP against the Louisville-Jefferson County Metro Government and the Metropolitan Sewer District, according to the Times of India.
The landowner had purchased a two-acre tract along the Ohio River for $800,000 in 1998, one year after local floodplain regulations were introduced in 1997. The partnership argued that these restrictions prevented any economically beneficial use of the land, amounting to a reverse condemnation.
The appellate court ruled that the claim was premature because the landowner had not obtained a final decision from authorities regarding permitted uses. The court noted that the partnership failed to seek a variance, which is an administrative exception available through the Metropolitan Sewer District's Floodplain Board.
While the partnership argued that seeking such an exception would be futile, the court found no evidence that the Floodplain Board would have inevitably rejected an application. The judges noted that the board had granted variances to other property owners in the past.
The ruling does not decide if the regulations constitute a taking or if the land can be developed. The court stated that the partnership may file a new compensation claim if it first secures a final administrative decision and meets all legal requirements.