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| Friday, June 24, 2005 |
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| Brought to you by
the California Association of REALTORS® |
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 GOVERNMENT'S
POWER OF EMINENT DOMAIN EXPANDED
In a landmark decision yesterday, the United States
Supreme Court held that the government's power of
eminent domain may be used to seize someone's private
property to turn over to a private developer. This case
involved the seizure of 15 homes by the city of New
London in Connecticut to use the land as part of a
90-acre redevelopment project by a private developer.
Although the city was designated a "distressed
municipality," there were no allegations that any
of these 15 homes were blighted or in poor condition.
The homeowners challenged the constitutionality of the
seizure under the Fifth Amendment's prohibition against
the taking of private property for public use without
just compensation. The homeowners argued that the
government may take their homes against their will for
public use, such as to build roads or railroads, but not
just to give it to another private party who intends to
make more productive use of the property. Whether the
homeowners would receive just compensation for the
taking was not directly at issue
in this case.
In its 5-to-4 decision, the Supreme Court first
clarified that, under the Fifth Amendment, the
government cannot take someone's private property for
the sole benefit of another private party, but it can
take private property for use by the public. The Court
went on to uphold the government's exercise of eminent
domain in this case. The Court reasoned that the taking
of private property to promote the city's economic
development, which includes creating new jobs and
increasing tax revenues, is a public purpose that falls
within the public use requirement of the Fifth
Amendment.
The name of this case is Kelo, et al. v. City of New
London, Connecticut, et al. (2005 WL 1469529). For
more information, C.A.R. members may contact C.A.R.'s
Member Legal Hotline at 213.739.8282, or for office
managers, broker/owners, and designated REALTORS®, call
213.739.8350. Access to Member Legal Hotline is also
available through C.A.R. Online at http://www.car.org/index.php?id=NTk2.
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Realegal® is published by the CALIFORNIA ASSOCIATION OF
REALTORS®, a trade association representing more than
165,000 REALTORS® statewide.
Executive offices:
525 South Virgil Ave., Los Angeles CA 90020
phone (213) 739-8200; fax (213) 480-7724
Legislative offices:
980 Ninth Street #1430, Sacramento CA 95814
phone (916) 444-2045; fax (916) 444-2033
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