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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)

Citation
Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Parent Document
Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Jurisdiction
California (state)
Effective Date
1997-08-26

Other Sections in This Document (115)

Full Text

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The term “due process” has at least two distinct meanings or applications in the field of rate regulation: (1) substantive due process, i.e., whether the scheme of regulation in question is “ ‘ “arbitrary, discriminatory, or demonstrably irrelevant to the policy the Legislature is free to adopt . . . ” (Pennell v. San Jose (1988) 485 U.S. 1, 11 [108 S.Ct. 849, 857, 99 L.Ed.2d 1] (Pennell)); (2) what can be termed “confiscatory” due process, i.e., whether a given scheme of rate regulation, although not per se or facially invalid, is confiscatory in its result and has prevented an opportunity to obtain a just and reasonable rate of return on investment. (See Duquesne Light Co. v. Barasch (1989) 488 U.S. 299, 307-308 [109 S.Ct. 609, 615, 102 L.Ed.2d 646] (Duquesne Light Co.).) As explained below, it is this latter confiscatory due process analysis that significantly overlaps the takings clause.