Eminent Domain: A National Issue

The Supreme Court's 5-4 decision in 2005 in Kelo v. City of New London affirmed the Connecticut city’s authority to take 15 unblighted private properties by eminent domain and sell them to a private developer. It also triggered public outcry over the abuse of eminent domain.

During oral arguments, Justice Scalia mused that a ruling in favor of the City would destroy “the distinction between private and public use,” suggesting that a private use that proffered only incidental benefits to the state was “not enough to justify use of the condemnation power.” 

In her principle dissent, Justice O’Connor wrote: “Any property may now be taken for the benefit of another private party, but the fallout from this decision will not be random.  The beneficiaries are likely to be those citizens with disproportionate influence and power in the political process, including large corporations and development firms.”
 
 Opinion polls revealed that overwhelming majorities were disgusted with the ruling.  On June 23, 2006, the one-year anniversary of the Court’s decision, President Bush issued an executive order instructing the federal government to use eminent domain “for the purpose of benefiting the general public and not merely for the purpose of advancing the economic interests of private parties to be given ownership or use of the property taken.”  Because eminent domain is generally exercised by state and local governments, the president’s edict has little direct effect but demonstrates that national politicians are aware of the power of private property ownership. 

Since the Supreme Court ruling, several states have enacted legislation to restrict the state's own power of eminent domain. The Supreme Courts of Illinois, Michigan and Ohio have ruled to disallow such takings under their state constitutions. In the November 2006 elections, proposals limiting eminent domain passed in nine states – Arizona, Florida, Georgia, Michigan, New Hampshire, Nevada, North Dakota, Oregon and South Carolina – with an average of about 75 percent of the vote.
 
Organizations fighting abuse of eminent domain

• Castle Coalition www.castlecoalition.org
• Reason Foundation www.reason.org/eminentdomain