Neutralizing the Objector Lawsuit

Builders seeking approval for proposed real estate developments must in almost all American localities navigate a complex series of required procedural steps, but for those who persevere and succeed in obtaining a permit, one eleventh-hour device can bring all those efforts to naught: the objector lawsuit. Easy to file but difficult to resolve, lawsuits by development opponents even when unsuccessful can delay projects by a year or more, playing havoc with cost and time estimates. Why are these suits so simple to start? The American common law system sets a low bar for a plaintiff to establish a right to maintain a lawsuit — known as “standing” — in which the mere claim that an injury has occurred, or even may occur in the future, is sufficient to keep a case moving along. Recognizing plaintiffs’ interest in having their day in court and the prudential consideration of having claims decided on their merits, judges will rarely find an injury to be so minor, indirect or speculative that it’s not worth judicial attention. While these considerations are important, they were not formulated with the expectation that they would be used to thwart individual exercise of property rights and the ordinary activities of civilized life. Some may recall the 1972 Supreme Court case of Sierra Club v. Morton, where the Court narrowly (4-3) decided that an environmental organization couldn’t rely upon alleged injuries to nature, rather than to the organization itself, to establish its right to sue to stop a planned ski resort, and which resulted in a dissent by Justice Douglas arguing for “conferral of standing upon environmental objects to sue for their own preservation.” The holding was quickly a moot point, as environmental organizations and other entities opposed to development recognized that they could recruit individual members who could allege […]

Decriminalizing Jaywalking: The Early Data

In recent years, three states have legalized or decriminalized jaywalking: Virginia and Nevada did so in early 2021, and California legalized jaywalking at the start of 2023.  The traditional argument for anti-jaywalking laws is that they protect pedestrians from themselves, by limiting their ability to walk in dangerous traffic conditions. If this argument made sense, we would have seen pedestrian traffic fatalities increase in less punitive states. For example, if jaywalking laws were effective, California’s pedestrian death rate would have increased in 2023 (when jaywalking was legalized). Instead, the number of deaths decreased from 1208 to 1057, a 12 percent drop. (Relevant data for all states is here). Although pedestrian deaths decreased nationally, the national decrease was only about 5 percent (from 7737 to 7318). On the other hand. the data from Nevada and Virginia is less encouraging. As noted above, jaywalking was decriminalized in those states in 2021, so the relevant time frame is 2021-23. During this period, pedestrian deaths increased quite modestly in Virginia (from 125 to 133) and more significantly in Nevada (from 84 to 109). On balance, it does not seem that there is a strong trend in either direction in these three states- which (to me) supports my previously expressed view that Americans should be trusted to walk where they like rather than being harassed by the Nanny State.

Transit oriented development in Bengaluru could lead to additional $64 Million per year

A new paper in the Journal of Development Economics by Liming Chen, Rana Hasan, Yi Jiang, and Andrii Parkhomenko estimates the welfare gains of Transit Oriented Development in Bengaluru. The Bengaluru metro or the Namma metro is around 170Km long including the planned sections. Bengaluru has low building heights and the paper’s counterfactual depends on relaxing FSI/FAR from their current level to 2 (only 2!) around 500 meters of the metro line. The paper finds “The complementarity between TOD and the metro unlocks additional gains equivalent to about $64 million per year or one-half of annual operating costs of the metro system.” Paper reference:Chen, L., Hasan, R., Jiang, Y., & Parkhomenko, A. (2024). Faster, taller, better: Transit improvements and land use policies. Journal of Development Economics, 103322.