Defined term
Penn Central balancing test
Penn Central is the multi-factor test the U.S. Supreme Court uses to identify regulatory takings outside the per-se categories — weighing economic impact, interference with investment-backed expectations, and the character of the government action.
Penn Central Transportation Co. v. New York City (1978) governs the great majority of regulatory-takings claims. The test asks the court to weigh: (1) the regulation's economic impact on the owner; (2) the extent of interference with reasonable, investment-backed expectations; and (3) the character of the government action — whether it physically invades, distributes burdens broadly, or singles out the owner.
The test is famously open-ended. No factor is dispositive; courts balance them case by case. Most successful regulatory-takings claims show severe economic impact combined with interference with specific expectations the owner had at acquisition or substantial investment.
Cases
- Penn Central Transp. Co. v. New York City (1978), 438 U.S. 104