Eminent Domain Use Abuse

This book is a comprehensive analysis of the U.S. Supreme Court decision in Kelo v. City of New London. It addresses the controversial and important question of when eminent domain may constitutionally be used to take property for projects that are not publicly owned and operated facilities, such as schools and town halls. The volume captures and conveys the context within which this debate is taking place as well as offers guidance concerning the Kelo decision itself and how it may be used.

An exploration of eminent domain looks at the concept of "public use," the injustice and unfairness inherent in the definition when it is based on tax revenue, and the people who are fighting back to preserve their property rights.

The Fifth Amendment to the U.S. Constitution states that government shall not take private property except for "public use" and with "just compensation." Officials from national organizations and state and local governments cited various purposes for which eminent domain can be or has been used, including the building or expansion of transportation-related projects; the elimination and prevention of conditions that are detrimental to the physical, social, and economic well-being of an area; remediation of environmental contamination; and economic development. This book provides information on the purposes for and extent to which eminent domain can be and has been used; the process states and select localities across the country use to acquire land, including by eminent domain; how the use of eminent domain has affected individuals and communities in select localities; and the changes state legislatures made to laws governing the use of eminent domain from June 2005 through July 2006.

In 2005, the Supreme Court ruled that the city of New London, Connecticut, could condemn fifteen residential properties in order to transfer them to a new private owner. Although the Fifth Amendment only permits the taking of private property for “public use,” the Court ruled that the transfer of condemned land to private parties for “economic development” is permitted by the Constitution—even if the government cannot prove that the expected development will ever actually happen. The Court’s decision in Kelo v. City of New London empowered the grasping hand of the state at the expense of the invisible hand of the market. In this detailed study of one of the most controversial Supreme Court cases in modern times, Ilya Somin argues that Kelo was a grave error. Economic development and “blight” condemnations are unconstitutional under both originalist and most “living constitution” theories of legal interpretation. They also victimize the poor and the politically weak for the benefit of powerful interest groups and often destroy more economic value than they create. Kelo itself exemplifies these patterns. The residents targeted for condemnation lacked the influence needed to combat the formidable government and corporate interests arrayed against them. Moreover, the city’s poorly conceived development plan ultimately failed: the condemned land lies empty to this day, occupied only by feral cats. The Supreme Court’s unpopular ruling triggered an unprecedented political reaction, with forty-five states passing new laws intended to limit the use of eminent domain. But many of the new laws impose few or no genuine constraints on takings. The Kelo backlash led to significant progress, but not nearly as much as it may have seemed. Despite its outcome, the closely divided 5-4 ruling shattered what many believed to be a consensus that virtually any condemnation qualifies as a public use under the Fifth Amendment. It also showed that there is widespread public opposition to eminent domain abuse. With controversy over takings sure to continue, The Grasping Hand offers the first book-length analysis of Kelo by a legal scholar, alongside a broader history of the dispute over public use and eminent domain and an evaluation of options for reform.

The contributors in this volume address the fundamental relationship between the state and its citizens, and among the people themselves. Discussion centers on a recent decision by the United States Supreme Court in the case of Kelo v. City of New London. This case involved the use of eminent domain power to acquire private property for purposes of transferring it by the State to another private party that would make "better" economic use of the land. This type of state action has been identified as an "economic development taking". In the Kelo case, the Court held that the action was legal within provisions of the US Constitution but the opinion was contentious among some of the Justices and has been met with significant negative outcry from the public. The Kelo case and the public debate arising in its aftermath give cause to assess the legal landscape related to the ability of government to fairly balance the tension between private property and the public interest. The tension and the need to successfully strike a balance are not unique to any one country or any one political system. From the United States to the United Kingdom, to the People's Republic of China, property and its legal regulation are of prime importance to matters of economic development and civic institution building. The Kelo decision, therefore, explores a rich set of legal principles with broad applicability.

Eminent domain is integral to a government’s legal ability to take private property for a public purpose. If used correctly, the owners are paid the fair market value for their property, few citizens are inconvenienced and everyone benefits. Bad-faith abuses of eminent domain typically make the front pages of news outlets, and receive news coverage from television stations, in cities throughout our nation. To educate citizens and prevent future abuse, this book exposes both the good and the bad aspects of government’s ability to use their power of eminent domain to acquire private property.

In an effort to understand the reasons for and consequences of the political backlash to the U.S. Supreme Court decision, Kelo v. New London, this book brings together a diverse group of scholars and practitioners who explore the uses and abuses of eminent domain and regulatory takings.