This seems like common sense, but a public agency cannot pursue an inverse condemnation cause of action for damages suffered from its own public improvements. Yet that is exactly what the County of Santa Cruz recently attempted against another local public agency. The Court denied leave to amend to add an inverse condemnation cause of action and left unanswered a significant policy question on whether a public agency can pursue a claim for inverse condemnation at all, or whether inverse condemnation only applies to damages to private (not public) property. …
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