Pennsylvania Coal Co. v. Mahon
Case Date: 05/19/2024
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Pennsylvania Coal Co. v. Mahon, 260 U.S. 393 (1922)[1], was a case in which the Supreme Court of the United States held that whether a regulatory act constitutes a taking requiring compensation depends on the extent of diminution in the value of the property.
The decision thereby started the doctrine of regulatory taking. The Takings Clause originally applied only when the government physically seized or occupied property. Prior to 1922, American courts followed a clear rule: regulation of land was not a taking. Rather, it was simply an exercise of the government’s police power to protect the public health, safety, welfare, and morals.
Pennsylvania Coal also established the diminution-of-value test, in contrast to other tests, such as the permanent physical occupations test (Loretto v. Teleprompter Manhattan CATV Corp.), the nuisance-control measures test (Hadacheck v. Sebastian), and the total takings test (Lucas v. South Carolina Coastal Council). Additionally, the case was one of the first to address the denominator problem with regard to regulatory taking.
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