Supreme Court rules on eminent domain
TAKING HOMES FOR PRIVATE ECONOMIC DEVELOPMENT OK'D
By Linda Greenhouse
New York Times
WASHINGTON
- The Supreme Court ruled Thursday, in one of its most closely watched property-rights cases in years, that fostering economic development is an appropriate use of the government's power of eminent domain.
The 5-4 decision cleared the way for the city of New London, Conn., to proceed with a large-scale plan to replace a faded residential neighborhood with office space for research and development, a conference hotel, new residences and a pedestrian ``river walk'' along the Thames River.
The project, to be leased and built by private developers, is intended to derive maximum benefit for the city from a $350 million research center built nearby by the Pfizer pharmaceutical company.
New London, deemed a ``distressed municipality'' by the state 15 years ago, has a high unemployment rate and fewer residents today than it had in 1920.
The owners of 15 homes in the Fort Trumbull neighborhood, including one woman who was born in her house 87 years ago and has lived there since, had resisted the plan and refused the city's offer of compensation.
Creating jobs, revenue
After the city condemned the properties in November 2000, the homeowners went to state court to argue that the taking would be unconstitutional. The Connecticut Supreme Court upheld the use of eminent domain in a ruling last year.
In affirming that decision, the majority opinion by Justice John Paul Stevens resolved a question that had surprisingly gone unanswered for all the myriad times that governments have used their power under the Fifth Amendment to ``take'' private property for ``public use.'' The question was the definition of ``public use.''
Stevens wrote that New London could pursue private development under the Fifth Amendment because the project the city has in mind promises to bring more jobs and revenue. Stevens noted that earlier Supreme Court decisions interpreting the public use clause of the Fifth Amendment had allowed the use of eminent domain to redevelop a blighted neighborhood in Washington, D.C., to redistribute land ownership in Hawaii and to assist a gold-mining company, in a decision by Justice Oliver Wendell Holmes in 1906.
``Promoting economic development is a traditional and long-accepted function of government,'' Stevens said, adding, ``Clearly, there is no basis for exempting economic development from our traditionally broad understanding of public purpose.''
He was joined in his opinion by other members of the court's liberal wing -- David H. Souter, Ruth Bader Ginsburg and Stephen G. Breyer, as well as Reagan appointee Justice Anthony Kennedy, in noting that states are free to pass additional protections if they see fit.
`Sad decision'
In San Jose, Redevelopment Agency Director Harry Mavrogenes said agency attorneys would review the decision, but he believes ``it validates the ability of cities to use the power of eminent domain for development purposes, which is something that many agencies and cities have been doing around the country. It won't dramatically change the way we do business. We've used eminent domain carefully and will continue to use it as necessary but in a careful way.''
However, state Sen. Tom McClintock, R-Thousand Oaks, said in a statement Thursday that the decision ``nullifies the Constitution's public use clause and opens an era when the rich and powerful may use government to seize the property of ordinary citizens for private gain.''
He said he will work to introduce an amendment to the California Constitution that would ``require that the government must either own the property it seizes through eminent domain or guarantee the public the legal right to use the property. In addition, it will require that such property must be restored to the original owner or his rightful successor if the government ceased to use it for the purpose of the eminent domain action.''
``I think it's a sad decision for this country,'' said Loraine Wallace Rowe, one of the founders of the Coalition for Redevelopment Reform in San Jose, which formed after owners of 40 properties in the downtown area received notices in 2000 that their properties could be seized for redevelopment projects. None of the properties were taken, however.
``Basically, what they're saying is that a single-family home is not worth as much as what a developer might want to put in. I totally believe that taking private property for private use is wrong.''
Dissenting opinion
The homeowners in New London, represented by a public-interest law firm, the Institute for Justice, argued that taking property to enable private economic development, even development that would provide a public benefit by enhancing the tax base, could never be a ``public use.''
In their view, the only transfers of property that qualified were those that gave actual ownership or use to the public, such as a highway or a public utility.
In a dissenting opinion, Justice Sandra Day O'Connor objected that ``the words `for public use' do not realistically exclude any takings, and thus do not exert any constraint on the eminent domain power.''
O'Connor said, ``Under the banner of economic development, all private property is now vulnerable to being taken and transferred to another private owner, so long as it might be upgraded.''
O'Connor's dissenting opinion was joined by Chief Justice William H. Rehnquist and by Justices Antonin Scalia and Clarence Thomas.