Griswold

Two licensees of a golf course owned by the City of Needles appeal from a portion of a preliminary injunction which enjoins them from preventing the city from taking possession of and using their private personal property. Concluding that the injunction deprives the licensees of their property without constitutionally guaranteed just compensation, we modify the injunction by striking that invalid portion. As modified, the injunction is affirmed.

Factual and Procedural Background

Pursuant to a written agreement, Robert Olin Griswold and River Horizon Golf Club, Inc. (hereinafter, collectively Griswold) were licensed to operate a golf course owned by the City of Needles (City). Under the license agreement, Griswold was obligated to provide whatever personal property was necessary to equip, operate, maintain, and supply inventory for the golf course and its attendant pro shop and restaurant. Some of that personalty was leased from the City, but the balance was to be purchased or otherwise obtained by Griswold.

The agreement was entered into on March 20, 1987, for an initial term of five years. Prior to the expiration of that term, the City was authorized to terminate the…