Texas contractor Michael Ramirez earns his living renovating and selling properties across the state. After the government demolished one of his properties without proper warning—in violation of his right to due process—Ramirez filed a federal lawsuit seeking compensation for his losses.
Ramirez had purchased a promising home in Texas City to renovate and sell. It was later partially damaged in a fire. The City said the property was now “substandard” and wanted to demolish it. But Ramirez’s years of experience told him the property was still viable, so he hired an architect with experience in fire restoration and ran the numbers. The architect agreed—the damage was relatively superficial and the home was repairable.
Ramirez immediately contacted City officials to secure repair permits, but progress stalled as different government employees provided contradictory information. The City’s attorney assured Ramirez that the property would be demolished only with his approval and that he would reach out if the City intended to move ahead. With that assurance, Ramirez and his architect continued planning the home’s renovation.
The City demolished the home on May 9, 2023.
But Ramirez had no chance to save the home or even to remove the tools and construction materials inside, because the City failed to provide any additional notice or an opportunity for him to be heard prior to the home’s destruction. At the time of its demolition, the home was still worth over $167,000, and the equipment and other personal property the City destroyed inside it were worth an additional $15,000.
Ramirez filed a lawsuit arguing that the City had violated his Fourteenth Amendment right to due process by failing to notify him of its intention to demolish the property.
His initial day in court was a hollow victory. Although the court agreed that the City had violated his due process rights, it denied him the jury trial he was constitutionally guaranteed to determine how much the City owed him in compensation. Instead, the court granted him a meager $1 in damages to recognize the loss of his property in violation of his right to due process.
When the government destroys property without providing notice or a hearing beforehand, property owners have the right to a trial where a jury of their peers decides how much the government must pay for their losses. In such cases, at the very least, the government must provide the property owner with the full equivalent of the destroyed property’s value. A token payment is not enough.
Pacific Legal Foundation stepped in to represent Ramirez at no cost in his appeal to the U.S. Court of Appeals for the Fifth Circuit. Ramirez argues that the lower court erred by denying a jury trial and granting only $1 in damages.
What’s At Stake?
- Property owners who prove due process violations deserve full compensation for their losses, not just nominal damages.
