The following excerpt is from Beierwaltes v. L'Office Federale De La Culture De La Confederation Suisse, 999 F.3d 808 (2nd Cir. 2021):
A significant exception to this general definition concerns a state's exercise of its traditional regulatory or police powers over its internal affairs. See E. N.Y. Sav. Bank v. Hahn , 326 U.S. 230, 232, 66 S.Ct. 69, 90 L.Ed. 34 (1945) (explaining that "the police power[ ] is an exercise of the sovereign right of the government to protect the general welfare of the people" (internal quotation marks and alterations omitted)); see also Restatement (Third) 712 cmt. g (noting that "[a] state is [ordinarily] not responsible for loss of property or for other economic disadvantage resulting from bona fide general taxation, regulation, forfeiture for crime, or other action of the kind that is commonly accepted as within the police power of states"); Restatement (Second) 197 ("Conduct attributable to a state and causing damage to an alien does not depart from the international standard of justice ... if it is reasonably necessary for ... the enforcement of any law of the state ... that does not itself depart from the international standard"). Such actions typically do not constitute a taking, even if they result in the loss of property or other economic harm.11 See, e.g. ,
[999 F.3d 821]
The above passage should not be considered legal advice. Reliable answers to complex legal questions require comprehensive research memos. To learn more visit www.alexi.com.