News Desk

Legal Update: Eminent Domain and the Kelo case

Fallout from June’s landmark decision by the Supreme Court in Kelo v. New London continues as property rights activists and civil libertarians redoubled their efforts to limit the government’s ability to utilize the power of eminent domain to promote economic development by condemning private property.

Critics have asserted that the Kelo decision infringes on the rights of homeowners, businesses, and other property owners across America. Since June, legislation to limit condemnation powers has been introduced in 31 states, according to the Institute for Justice, the property rights group that defended the homeowners before the high court.

The Kelo case dates back five years to when the City of New London, through the New London Development Corporation, sought to condemn the property of six Connecticut homeowners who lived within a 90-acre zone that was planned for private development. The homeowners challenged the decision to condemn their properties for the sole purpose of turning them over to private developers. The case made its way through the lower courts and eventually went before the high court. On June 23, the Supreme Court ruled 5 to 4 that New London did in fact have the right to take the land solely to improve its financial health even though in doing so it would ultimately transfer ownership of the property to a private developer.

Justice Sandra Day O’Connor, in her dissent, wrote, The specter of condemnation hangs over all property. Nothing is to prevent the State from replacing any Motel 6 with a Ritz-Carlton, any home with a shopping mall, or any farm with a factory.

In addition to pending legislation before numerous state legislatures, the U.S. House of Representatives passed a resolution this summer condemning the court decision. The House subsequently voted to deny federal economic development money to local governments that seize private property for private development.

Complete information on the status of legislative action following the Kelo decision is available at the website of the non-profit law firm Institute for Justice (www.ij.org), which represented Susette Kelo and her fellow homeowners.

– Eric O'Keefe