In the 1986 case of First English Evangelical Lutheran Church of Glendale v. County of Los Angeles, California, the U.S Supreme Court ruled that when a government regulation is found to have "taken" property from an owner by denying all use or making it economically unviable, compensation must be paid for the period of time in which the regulation was in effect. The church's camp had been severely damaged by a flood and subsequent ordinance prohibited rebuilding within a floodplain area. The court held that this constituted as 'taking' under Fifth Amendment's Takings Clause even if temporary. This landmark ruling established that landowners could seek compensation for temporary regulatory takings - not just permanent ones - significantly expanding potential governmental liability for regulations affecting property values.

In the dissenting opinion for First English Evangelical Lutheran Church of Glendale v. County of Los Angeles, California, Justice Stevens argued that the majority's decision to allow compensation for temporary takings was a significant departure from established precedent. He contended that this ruling could potentially lead to an excessive financial burden on governments attempting to regulate land use in the public interest. Furthermore, he disagreed with the majority's interpretation of prior case law and believed it had been misapplied in this instance. In his view, previous cases did not support a right to compensation for temporary regulatory takings because such regulations do not permanently deprive property owners of all economic value or use of their property. Instead, they merely delay its realization until after regulation has ended.