The U.S. Court of Appeals for the Third Circuit recently heard oral arguments (stream above, or download the mp3 here), in a case involving an issue we briefed recently in another circuit: whether state or federal law governs the determination of Just Compensation in federal court Natural Gas Act takings. Now, you might automatically assume that because the case is in federal court under federal law, that federal standards for Just Compensation (and not the law of the state in which the property is located) provides the rule of decision. But it is not that simple. Short answer to the question posed by our title: no, the state's law of just compensation does not govern. But the state's law of property does govern. Thus, we think that which law governs compensation in federal condemnations is determined by the law of the state. After all, the particular "sticks" in the owner's bundle of rights is determined by state law — as is the relevant, if…
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