Kelo vs. New London

Zach Messersmith

12/5/2006

Eminent Domain

Legal right of government to seize private land for public good

Government receives power from the 5th amendment

5th Amendment

…nor shall property be taken for public use without just compensation

What is public use?

School Roads Police Stations Shopping Malls? Business Complexes?

What is just compensation

Value of land at fair market value More than fair market value given that

land was not for sale Often contested Many lawsuits result

Kelo vs. City of New London, CT

U.S. Supreme Court Case Argued February 22, 2005 Decided June 23, 2005 5-4 Decision

City of New London

Failing economy Pfizer to build business complex Develop area around business complex

to encourage further growth Need land that was residential area to

create shopping to boost the economy

City of New London

Found many willing sellers Some difficulty with others Key properties being held by owners Started a petition to get properties

condemned

Kelo

Susette Kelo and others in neighborhood unwilling to sell

Worked hard to restore home Value of home and land was very high

because of the personal work that she had put in

Lower Court Opinions

Trail Court stated that some of the land could be taken and other land was protected

Connecticut Supreme Court partially upheld takings and partially reversed taking of land

Supreme Court Decision

5-4 Decision Majority opinion written by Stevens Dissenting opinion written by O’ Connor

Majority Opinion

Order of way the city went about things was seen as important

Had a plan Tax revenue to benefit all

Dissenting Opinion

Reverse Robin Hood Could become the norm Removes need for words “for public

good” from 5th Amendment

Previous Eminent Domain Decisions

Hawaii Housing Authority vs. Midkiff Berman vs. Parker

Reaction to Kelo

President Bush makes executive order on June 23, 2006

Only has effect on Federal government State and Local use eminent domain

more often

Reaction to Kelo

8 States only allow for eminent domain to be used in cases of blight

5 more states thinking about making similar laws

Reaction to Kelo

Christian Science Monitor polls states the 93% of people disagreed with decision

AARP and NAACP speak out against ruling

Reaction to Kelo

Senator John Cornyn proposes law in Congress

With hold federal funds from projects like New London

Reaction to Kelo

Corporations that would have benefited from decision speak out

CEO of $116.3 Billion lending company says no loan for some contracts

Post Kelo

City of New London demands back rent Total amount of about $10,000

Kelo Today

New London agreed to move Kelo’s home

Lots where home was located sits empty

Kelo Today

What is the effect of Kelo

Elimination of cheap housing More ability to get rid of run down

housing more easily

Eminent Domain in Normal

References

http://www.law.cornell.edu/supct/html/04-108.ZS.html

http://www.law.cornell.edu/constitution/constitution.billofrights.html#amendmentv

http://en.wikipedia.org/wiki/Kelo_v._City_of_New_London

http://money.cnn.com/2005/01/05/real_estate/thursday_takings/

References

http://library.cqpress.com/cqweekly/search.php

http://newfirstsearch.oclc.org/WebZ/FSPrefs?entityjsdetect=:javascript=true:screensize=large:sessionid=fsapp3-59637-evcjkjpg-u2a9l7:entitypagenum=1:0