In a per curiam decision — meaning the outcome is 9-0 but no specific Justice was assigned to write the Opinion of the Court — the Supreme Court reversed the Ninth Circuit and sent the case back. The Court held that the “taking” of property by a governmental entity happens upon the act giving rise to a federal constitutional claim, and the Pakdels’ claim against San Francisco was not dependent on their following-through on and compliance with various procedural requirements under the ordinance in order to have that their “takings” claim heard by a federal court.

The only “finality” required for their federal claim was an expression by the governmental agency that the landowner either do “something” with the property or suffer consequences for not doing so. San Francisco told the Pakdels to either offer a lifetime lease to the renter or they would face an “enforcement action” that could have canceled the conversion or fined the Pakdels for their failure to do so.