Kelo Thought
I don't have really strong feelings about the Kelo decision, but I would recommend Scott Lemieux's post as a worthwhile counterpoint to the generally hostile blogospheric reaction. The main thing I think is that people need to take a deep breath and calm down. Eminent domain seizures have happened in the United States since the dawn of the Republic, and their basic legitimacy wasn't at issue here. If you're just sickened by the idea of the government showing up at your house one day and telling you it's going to get torn down, then your beef isn't with this case, it's with the constitution's utterly unambiguous authorization of such things.
At the same time, if your property is seized in such a way, you are owed "just compensation" for its value. It's not as if the city council just rolls by, knocks your house down, and leaves you out in the street. All that was at issue here was the precise scope of the government's authority to, in effect, force you to sell your house. Since the just compensation does need to be paid, and since if you're prepared to pay fair value for something you can typically purchase it on the open market, there's no reason to think this is going to unleash some massive tidal wave of evictions. If the Court had gone the other way, we'd see fewer abusive uses of eminent domain, and also fewer worthwhile economic development schemes. The way they ruled, we'll see more good economic development plans, and also more bad ones. Whether or not that turns out to be a good thing in the long run seems to me to hinge on some pretty unknowable factors. The much bigger deal seems to me to be the question of whether or not the victims of eminent domain seizures are getting compensation that's actually just.
Update [2005-6-24 1:41:41 by yglesias]: See also Eugene Volokh's post where he points out that the rule the plaintiffs were asking for wouldn't so much rule out the government taking your house to build a shopping mall as it would mandate that if the government takes your house to build a mall, it has to be a government-operated mall. Say what you will about that, but it wouldn't make the homeowners feel any happier. Again, when you bore down to the actual legal issue at hand, I think you'll find that this was a much less dramatic ruling than is immediately apparent.
Update [2005-6-24 1:50:59 by yglesias]: I guess I do turn out to have strong feelings about the inappropriateness of strong feelings about this decision. It seems to me that there's only so outraged one can reasonably get about a decision that, like this one (and like Raich before it), essentially affirms an already-existing rule. If America wasn't a totalitarian dystopia yesterday, then it isn't going to be one tomorrow in light of this ruling. Nothing has changed. Perhaps you think it's bad that nothing has changed, but it's not really the moment to start pulling your hair out. It probably is the moment to start paying closer attention to City Council elections which many people, myself included, tend not to scrutinize much. Those people have real power and it's worth paying attention.



Comments (70)
"I guess I do turn out to have strong feelings about the inappropriateness of strong feelings about this decision."
I have strong feelings about the decision, but my strong feelings happen to be completely appropriate.
I was very pleased by the decision because it was a defeat for the Federalist Society side. The dissenting justices were singing the same old song of trying to restrict the government's ability to regulate the economy. Lefties should be applauding this decision.
June 23, 2005 11:04 PM | Reply | Permalink
I don't know. The Supreme Court usually takes up cases when it thinks there's a real question at hand. That is, the case being considered ventures into legal territory that does not fall under previous territory of precedent or requires new consideration. That sort of implies that something wasn't clear and now is and therefore something has changed. If anything, LeMieux seems to be strenghtening the case for the idea that this boondoggle is a very different creature from the public roads of The Power Broker. The real question seems to be--suld courts always defer to the legislature in ambiguous cases of public interest? Is there anyone outside of the majority of the legislature that someone can appeal to when they think they are being wrongfully forced to sell? What outrages me is the idea that in fact, the courts should. I was hoping the judiciary would turn back that precedent. If you can't appeal to the judiciary branch, then you are completely beholden to a single branch of government. Say a state legislature has a strong majority in one party. What prevents it from turning around and concocting some ambiguous need to for invoking eminent domain over a political enemy's house? You cannot even appeal to a judge? There is no check and balance. LeMieux shrugs at O'Connors mourning over the fact that the "public interest" might as well be deleted; but it is not deleted and if you're going to blame the Constitution, you have to acknowledge that.
June 23, 2005 11:08 PM | Reply | Permalink
I don't buy this argument. Eminent domain exists so that the government can acquire property that it <b>requires</b> in order to provide things for <b>public use.</b> To me, that means that the resulting structure is accessible to the public (within the bounds of national or facility security) and provides a <b>public service.</b> Most importantly, eminent domain certainly shouldn't contribute to improving a private entity's bottom line. Private entities have to compete in the market, and if enough properties aren't for sale at market rates and their need is strong enough, I don't see why a private entity shouldn't be forced to pay above market for property it can't acquire any other way. The same doesn't apply when we are talking about property necessary for public use, but I just don't see where a private development, of any kind, qualifies as public use.
June 23, 2005 11:14 PM | Reply | Permalink
Can we say with certainty what's reallly 'public' and what's 'private' anymore, when it comes to urban development? I think that's one of the more interesting angles here. In many cities, it's private companies that are building outdoor shopping districts and the like that are replacing old downtowns. They're private, but with public space. And look at sports stadiums (though I realize they only license the naming rights, but still, it's a crossover).
In today's cities and towns, much of what was once public is now private. Or at least private-with-huge-public-subsidy. THAT's the real issue. Kelo is just indicative of this changing mentality.
June 23, 2005 11:33 PM | Reply | Permalink
<div>W got Arlington, Texas to use eminent domain to force out the last few property owners so the Rangers could build a ballpark. Both the Rangers and (I think) the ballpark are privately owned. I thought it was questionable at the time and wished it had gone to the Supremes. Now something similar has. I still don't like W, but that removes one of the reasons.</div><br />
June 23, 2005 11:47 PM | Reply | Permalink
Notice that like with Raich, the liberal justices all ruled in favor of government power, while the conservatives ruled in favor of individual rights.
Just something to remember before you get all riled up over the next Supreme Court nominee.
June 23, 2005 11:58 PM | Reply | Permalink
What prevents it from turning around and concocting some ambiguous need to for invoking eminent domain over a political enemy's house?
My understanding is that this decision merely affirms the constitutionality of the use of eminent domain for reasons of pure economic development. Presumably a reasonableness standard still applies -- one that could be enforced by either federal or state courts. I strongly suspect Mitt Romney's house in Belmont is safe from the malicious designs of the Bay State's overwhelmingly Democratic legislature.
Moreover, although the expansive use of eminent domain has now been unambiguously allowed by the high court, there is nothing to prevent a state legislature from narrowing an individual state's use of this power (nor indeed is there anything preventing a state's voters for demanding such action). The court's decision allows governmental bodies wide latitude to engage in forced property purchases, but it doesn't require them to do so.
June 23, 2005 11:58 PM | Reply | Permalink
I'm surprised nobody has brought up another political angle: Kelo is very likely the needle that will burst the housing bubble (how much is your home really worth if now the local city council can ED it for a Wal-Mart at any time?).
So, now, when trillions in home equity evaporate, Bush will be able to blame the liberal justices. Helps him in the fight for his eventual nominees, and allows him to point the finger at someone else for the 2006 midterms. Stevens, Ginsburg, et al. have really handed the Democrats a poisoned apple here.
June 24, 2005 12:06 AM | Reply | Permalink
agreed with all above, however, GO SPURS!!!!!
June 24, 2005 12:20 AM | Reply | Permalink
I think eminent domain is reasonable, but it ought to be for a clearly public purpose--a road, a school, a park or a reservoir.
I don't think anything so intangible as economic development ought to be worthy of it. Higher property tax revenues or giveaways to large developers do not constitute "public use" in my book.
-- Abby
June 24, 2005 1:46 AM | Reply | Permalink
It probably is the moment to start paying closer attention to City Council elections which many people, myself included, tend not to scrutinize much. Those people have real power and it's worth paying attention.
Matt, you got half a clue here. Problem is, you are still living in that nice DC cocoon where from your point of view City Councils are full of, or potentially full of, community-minded activists, so now more attention by an alert citizenry will mitigate any fallout from Kelo.
Out here in the real world of both red and blue states, we know that the councils are invariably whores and hacks up for sale to snake oil developers.
A previous poster is right, the progressive wing of the Court has just handed the Repubs a devastating wedge issue they can use for the next several years. If you don't see that, you need to get out more. You think Schiavo is going to mean anything to voters after a decision like this that really affects just about everybody? Dream on. The second that decision was handed down, all of the terabytes of bandwidth in the blogosphere dedicated to bemoaning Karl friggin' Rove's comments look like so much penny-ante inside baseball. That's going to be off the radar screen now. This decision will have huge political consequences, from SCt nominations, to the '06 midterms, to state and local races.
June 24, 2005 2:04 AM | Reply | Permalink
PB,
The problem with your statement that 'The state legislatures can always narrow the decision' is that MY and several others on this list are popping corks and showering champagne on each other over the death of federalism. More national control over everything! Yay! One step closer to Marx's socialist utopia. Woo hoo!
Because if the states do narrow the ruling, how long before someone comes along and says that the states don't have the right to make those decisions, because it violates interstate commerce?
With each passing month, the "penumbra" of what the Federal government can regulate and control grows larger. Eventually, they will shut down the Second amendment, because owning weapons interferes with interstate commerce. And then, with nothing to stop them, they will come for the first, because badmouthing public citizens somehow interferes with interstate commerce as well.
And MY will be carrying water for them, protesting that it's only a special case, just a minor issue, no one could legitimately get upset because the Fed is controlling speech - surely not every type of speech is acceptable, after all. All because, as far as I can tell, absolute federal control over the economy and the states is more important to him than individual rights.
June 24, 2005 3:34 AM | Reply | Permalink
I've said it elsewhere, but it bears repeating. Kelo is definitely the cure for California's budgetary woes. Since increasing tax revenues is now legitimate reason to ED a home, how about we just ED any home which hasn't had its property tax increased in 5,10,15 years. Kicking folks out of their homes will force them to purchase new ones, and the old one will also be resold (presumably at little or no cost to the state), so we'll see 2 new property taxes set at current, inflated market values, and it shouldn't cost the state a thing.
Fortunately, I guess California's ED laws are stricter than Connecticut's, and the homes would have to be declared a blight, but I'm sure Arnold could fix that if he really tried, right?
June 24, 2005 5:26 AM | Reply | Permalink
Hey, here's a question. I'd really like it if someone can jump in and give me some info on this.
Is there any way in which this ruling is a good thing from the point of view of environmentalists? That is, does this protect the right of governments to seize property to protect, say, an endangered species?
Or, to put the question more broadly, can this ruling be seen as a victory for progressives?
June 24, 2005 5:41 AM | Reply | Permalink
Matt, I usually agree with you, but on this issue I think you should spend some time working with a town or city council before coming to a judgment.
I've done this before--working to stop or slow rampant development in my own community. And in these efforts, I'm usually pitted against the property rights activists and developers. Let me tell you, the developers almost always win. And Kelo gives them yet another tool.
Here's why:
1. The developers have a strong financial interest in getting their way. They are willing to invest a lot of money in promoting their projects. They hire PR consultants to market their proposals to the community--always touting the exact economic benefits the Supreme Court defined as "public good" in Kelo: more jobs, higher tax base. These proposals win lots of support in the community because they are so well sold. The developers spend a lot of time courting the local officials, who tend to become mesmerized by the wonderful economic benefits to the community the developers infallibly promise. Community activists have a tough time countering the PR blitz given our pathetic lack of funds.
2. The developers have time to attend all the town meetings and know how to work the system better than most ordinary citizens. This is their job, after all. We're countering them in our spare time. We're not professionals. We can't keep up. The developers are constantly in front of town officials. We're lucky if we can see our officials once every few weeks at a zoning board meeting.
3. The developers also hire good lawyers who tend to intimidate our local leaders. Our town doesn't have the money to spend on lawsuits, so even the threat of a possible suit scares the council.
4. Many of the people who get on city councils represent the developers or are developers themselves. They have a direct financial interest in participating in local government, so they're more willing than ordinary citizens to make the extensive time commitment to serving.
5. Only the people with the most direct interest in an issue show up at town meetings. The developers and their allies (those who want to sell to them) usually outnumber the private citizens who are direct losers (those who don't want to sell). Citizens who aren't directly affected don't show up, even if they're against the development. So the development side usually ends up with lopsided representation at committee meetings.
I could go on, but you get the point. The process favors the developers already. If private homeowners can no longer hold out against the developers, we're in real trouble. At times, that's the last line of defense. But now the Supreme Court says if there's an economic benefit, the homeowner can be forced to sell. The developers always show that their projects have an economic benefit to the community. Now, they have the power to essentially evict people from their homes, as long as they can convince the local government that the project is for the economic good of the community. This seems like a very dangerous precedent. Sure, communities will react negatively if this power is abused. . . but when the developers want to evict unpopular people (like the poor), I fear the communities won't be so upset. And this could result in a lot of injustice.
June 24, 2005 6:14 AM | Reply | Permalink
I think the ruling was probably right. Al of the energy that is being wasted in outrage should be attempts to limit corruption in the process at the local level, somehting that is already illegal but far too commonplace.
I think I posted this idea at Hit and Run a while back, but how about adding a process where an owner would be offered a price, and if she refused, would be required to pay the taxes on that value represented by the price. This process could go through several offers, counter offers, with the theory being that both sides would have better incentive to negotiate. It would require more uniformity of property tax laws, and they would have to have a reasonable bite.
Additionally, on the local level there should be commisions that approve these things with super majority votes.
June 24, 2005 6:16 AM | Reply | Permalink
2 questions:
What is fair market value? Is it what a similiar private sale would have brought for the home, or is what the developer would have been forced to pay without the threat of ED?
Doesn't this apply to commercial property as well? If your shopping mall is half-empty in five years, can't they ED it to a company that wants to put in a chemical plant (the same people decide zoning in most cases...)?
June 24, 2005 6:16 AM | Reply | Permalink
We could've still had worthwhile developments if the SCOTUS had given the test a little more teeth: perhaps explicitly adopting a second-order rational-basis test or even intermediate scrutiny.
June 24, 2005 6:34 AM | Reply | Permalink
MY writes: "then your beef isn't with this case, it's with the constitution's utterly unambiguous authorization of such things."
The takings clause: "nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation."
The "public" (read: government) taking of property is not the same as the public taking the property FOR "public use."
The private development of a pharmaceutical company, hotel, and condos - even though it will likely have some public benefit - is not "public use."
The Constitution is not utterly ambiguous on that - at least it wasn't until yesterday.
I can't believe I'm siding with this minority - I never do. But they're right here.
Did the majority opinion "shred" the Constitution? No. But they are wrong - this decision will be unpopular with even most liberals, and as a 5-4 majority as it is, will probably be relitigated and eventually overturned.
June 24, 2005 6:35 AM | Reply | Permalink
This is exactly right. Matthew -- and the Supreme Court, of course -- completely ignores in important limiting phrase in the Constitution: "for public use".
Now, I'm really not that surprised at Matthew's attitude: he is ALWAYS for more government power. And that's what this case was about: how much power should the government have.
Nonetheless, I'll remember this the next time Matthew, or some other leftie, says something about the Patriot Act. While all the lefties are up in arms about the government learning if you have read a book on how to make bombs, they are perfectly fine with with the government knocking down your house to make way for the next Walmart. Priorities?
June 24, 2005 6:54 AM | Reply | Permalink
And the local fallout begins:
Court Ruling on Land Pleases D.C. Officials: SE Properties Sought for Stadium and Mall
http://www.washingtonpost.com/wp-dyn/content/article/2005/06/23/A
R2005062301786.html
District leaders said a Supreme Court ruling yesterday that gives municipalities broad powers to seize private property will provide the city leverage in its goal to acquire land for two controversial projects, including a new baseball stadium.
D.C. officials want to acquire 14 acres near the Anacostia waterfront by the end of the year to build a stadium for the Nationals. They also have been trying to buy the 1950s-era Skyland strip mall in Southeast to build a larger, upscale retail complex. In both cases, city officials say they will invoke eminent domain if necessary.
"I am pleased that the Supreme Court upheld 50 years of precedent today, allowing local officials the continued use of eminent domain to bolster economically depressed neighborhoods," Williams said in a statement.
June 24, 2005 7:22 AM | Reply | Permalink
On the SE Waterfront seizures: yep, you nailed it.
As always, the bien-pensant whitebread bobos of NW like Matt will do just fine post-Kelo. It's those inconvenient communities of color on the other side of town that will suffer far more.
They are more at risk. Especially African-American and Latino communities (supposedly we liberals, who are supposed to champion such folks, should know more) in lower-middle-income neighborhoods where the sales pitch to local officials is much more enticing because of the differential in valuation between current property values and the proposed property values. What everyone has failed to see is that without state-level protections in place that overturn this ruling, a devastating trade will take place.
Here is the trade that is so irresponsible. Neither the developer nor the city officials are really accountable for all those promised tax revenues. The seizure can take place, the developer can take the land at below market rates, clear a profit on that, build the development, clear a profit on that, then skate by selling off to an investor group before any tax benefits can be realized, locking in their profits. The entire development can fall apart and tax receipts can go negative, and the people who promised that good things will flow from the seizure will be long gone, with their money.
This is a gift that keeps on giving, too. What, you thought that was where the damage ended? Right. City officials will project city revenue based upon these falsified tax receipt promises, lock in bloated payrolls and even more underfunded pension benefits for civic workers, and then, when the tax receipts don't materialize, guess who makes up the difference? Even if you are safely protected in some way from a direct seizure, the economic impact of these seizures will hit you like an eighteen-wheeler truck. You think property taxes are bad now? You ain't seen nothing yet after these debacles are through.
June 24, 2005 7:32 AM | Reply | Permalink
I agree. I don't know that Kelo directly strengthens the enviros hand. But it certainly doesn't hurt it. Next time there's a polluter that won't get in line, or a strip mining operation that's gone too far, I would think it would be pretty reasonable after Kelo for the government to just take the land in the name of the public good!
Not that they'd ever do it, of course. It would mean risking campaign contributions.
June 24, 2005 8:14 AM | Reply | Permalink
Now a cityh or town council that wants to develop your undeveloped land because it's good for the local economy can force you to sell it to them.
Developers will love this! Economics over preservation!
June 24, 2005 8:20 AM | Reply | Permalink
I agree with most of what's written by Matt here. But posts like this always put in pretty stark relief just how unsurprisingly loyal Matt is to the interests of the economic class to which he has always been a member.
June 24, 2005 8:23 AM | Reply | Permalink
So, today I got on the Metro and looked at my Express and saw the headline "OK Given for Home Seizures" and wondered "WTF--it's not like people can control where they have a seizure." Honest.
***
IMHO, the MSM seems to hold much of the (ir)responsibility around any overreaction, b/c their coverage of this does sound like the SCOTUS gave government sweeping new rights to lay claim to people's property for frivolous reasons.
June 24, 2005 8:42 AM | Reply | Permalink
I also wanted to comment on this:
See also Eugene Volokh's post where he points out that the rule the plaintiffs were asking for wouldn't so much rule out the government taking your house to build a shopping mall as it would mandate that if the government takes your house to build a mall, it has to be a government-operated mall. Say what you will about that, but it wouldn't make the homeowners feel any happier.
I'd ask Matthew: how many government-operated malls does he know? Not too many, right? How many privately operated malls does he know? A lot more?
Yeah, the government could take property for a government-operated mall. But it just isn't too likely that that would happen. On the other hand, the government taking your property to give to private mall operator is all too likely.
So Matthew's objection isn't really that useful.
June 24, 2005 8:47 AM | Reply | Permalink
Problem is, you are still living in that nice DC cocoon where from your point of view City Councils are full of, or potentially full of, community-minded activists, so now more attention by an alert citizenry will mitigate any fallout from Kelo.
Clearly, you don't follow the shenanigans of the DC City Council :)
June 24, 2005 8:52 AM | Reply | Permalink
I can't understand how any progressive or liberal would support this decision. To sum up all the liberal points brought up to argue against this decision:
- This decision only helps rich corporations with the means to influence public policy.
- ED disproportionately affects the poor, especially minorities. By allowing ED based solely on property tax revenue, this will further the likelihood that ED will be used to bully poor minorities.
- Environmentalists should be more concerned about greater local government control over property - they almost always care less about the environment and more about economic development.
I agree with Matt and a few others that there's nothing inherently bad about giving local governments this power, but in practice it will be bad for the poor, good for corporations, and bad for the environment.June 24, 2005 9:10 AM | Reply | Permalink
Notice that like with Raich, the liberal justices all ruled in favor of government power, while the conservatives ruled in favor of individual rights.
This is just wrong. Most of the time in recent years, the conservative justices have ruled against individual rights and for state power.
I had my say on this in a discussion post that didn't get much response - and some of what I said was undoubtedly wrong, but this point deserves repeating whenever this argument is presented. Here's a chart of just the 5-4 decisions of the 1999-2000 term, prepared as a supplement to an article in which I argued the conservative justices were attempting to engage in "judicial nullification" of the 14th amendment.
In case after case, the conservative justices ruled against citizens attempting to hold the state accountable for harm it caused (whether under State OR Federal laws). In United States v. Morrison, all of the "conservatives" - including O'Connor - even voted to deny the federal government the power to povide a even a federal civil remedy to individuals against individuals, if the action arose out of acts which fall under state jurisdiction. They stated that any remedy must be directed at "state actors," since the "acts" fall under the state's jurisdiction.
However this followed on the heels of series of decisions in which the court had already held (mostly by the same 5-4 majority) federal remedies against state actors to be unconstitutional in both federal courts and state courts.
In short, they're not voting for individual rights, they're just voting against federal laws.
I haven't followed the court as closely since then so I can't give more recent examples, but it's just wrong to say the conservatives always vote for individual rights. They don't. It's true they often vote against federal power, usually ruling in favor of states' "sovereign immunity" - but remember, in those cases, they're most often ruling against an individual trying to hold a state accountable.
(Background: I'm not a lawyer, so I could be wrong. I researched these court cases as part of some articles I did while serving as About.com's guide to women's issues in 2000-2001. Those articles have been removed from About.com's server, but I put up a temporary copy of the "judicial nullification" article from my files here because I don't want to retype all of the html coding.)
June 24, 2005 9:29 AM | Reply | Permalink
"Or, to put the question more broadly, can this ruling be seen as a victory for progressives?"
This ruling is quite clearly a victory for progressives. I'm utterly baffled by the reaction.
The main ongoing economic battle in the court centers around the 'takings' clause. The Federalist Society fuckers are on a mission to make private property completely invulnerable to any reasonable societal demand upon that property.
This ruling is a major defeat for the Federalist Society fuckers, and a major victory for us. Look at which judges were on which sides. That's no coincidence.
Folks need to think this one through a bit more deeply.
June 24, 2005 9:36 AM | Reply | Permalink
The Federalist Society fuckers are on a mission to make private property completely invulnerable to any reasonable societal demand upon that property.
Yes, and clearly the way to combat the Federalist Society on this front is to make private property vulnerable to every unreasonable demand.
June 24, 2005 9:55 AM | Reply | Permalink
Agreed on the devastating wedge issue. Especially because the circumstance surrounding this are so vague that the ordinary citizen doesn't really understand what happened here. It may be intellectually dishonest to claim that this really changes anything, but its going to be politically easy to claim that it does.
June 24, 2005 10:00 AM | Reply | Permalink
Folks, we're pretty damned lost if we can't see Kelo for the opportunity that it is. This case, finally, gives the Democratic Party the opportunity to show the other side up as double-dealers and to be the property rights party.
For years now, the Republicans have been eating from both sides of the trough, on issues such as abortion, flag burning and the like. They claim to be against abortion, and occassionally pass laws against it, knowing full well that those laws will be limited or reversed. "Oh well," they contend, "when we get that next Supreme Court position we will . . . ," knowing full well that when a decisive spot opens, they won't. They have to keep the elite conservatives happy, and that means double-dealing the rustics.
The same is true in this circumstance as well. The Republican party is backed, in large measure, by the people who benefit from the Kelo ruling on public use. Note what the party in power says: They don't say "let's pass a law;" they say "just wait until there is another Supreme Court opening." They keep the elites happy by furthering their consolidation of power; they keep the rustics happy by telling them that someday, a future Supreme Court will take action (if those pesky Democrats don't get in the way).
The Democratic side could explode this double-dealing now by arguing, "why wait?" There is a commerce clause in the constitution, and the Democrats in Congress could propose legislation pursuant to it imposing limitations on municpal takings for economic benefit. This kind of proposal would have two benefits: (1) the Democrats would suddenly become the party of private property, regaining a great deal of ground in rural and exurban America with one blow; and (2) the Republicans would be forced to choose with whom their loyalties lie. I suspect, in the current climate, that they'd make the politically wrong choice, and attempt to strangle the measure.
With this in mind, imagine a 2006 election in which the Democrats had as a platform measure the restoration of private property against "private takings." Makes you smile, doesn't it?
June 24, 2005 10:04 AM | Reply | Permalink
Oops, was logged out when I posted the above on Kelo as an opportunity for the Democrats. (P.S. I also think well-written legislation would also be good policy for the Democrats.)
June 24, 2005 10:14 AM | Reply | Permalink
I have to disagree with you about this being a "devastating wedge issue" for Republicans. I'd like that to be true, but it simply won't be. There may be a few libertarian-ish Republican intellectuals and activists out there who care, but Republican politicians will support the decision -- mostly because it gives power to the developers, big businesses, etc., who fund their campaigns. I seriously, seriously doubt you'll see any Republican politicians running on an anti-Kelo platform.
June 24, 2005 10:37 AM | Reply | Permalink
Just when it seems likely that some new conservative justices will be added to the Court, the majority thinks it's a good idea to poke constitutional conservatives in the eye?
The phrase "public use" should mean something more than what a friggin' city council says it means.
This isn't like ensuring Congress has the authority to regulate the environment, curtail discrimination, etc. This is making it easier for Councilman Joe and Developer Bob to knock down a neighborhood and build a mall.
And Matt, go read Rule 10 of Supreme Court's rules and tell us again how nothing has changed.
June 24, 2005 10:46 AM | Reply | Permalink
Hell, so would banning anti-environmental speech.
June 24, 2005 10:48 AM | Reply | Permalink
I'd give two 5s to this comment if I could -- one for pointing out how Yglesias has <b>no idea</b> how local government and politics function in most American cities and towns (and implying that he ought not pretend to be the legal wiseman/cooler head in this conversation ...since he only plays a political commentator and a lawyer on the web) AND a second 5 for pointing out that the absurdity of claiming that because the city council approved it, thats what the people want.
Maybe its emotional populism, but when my house is threatened by commercial development, I get angry. Tongiht I'm not going to be reading The American Prospect, Matt; I'm going to a Neighborhood Association meeting to plot how to defeat yet another proposed commercial development in a residential neighborhood, being pushed by my city government as part of a necessary "Economic development."
June 24, 2005 10:49 AM | Reply | Permalink
Kelo is a great decision, thank God. Anyone who wants courts to have the power to step in and tell the legislature, "no that's not a good enough public purpose" is crazy. If the city council starts randomly taking neighborhoods and handing them over to rich developers, guess what happens? The city council loses elections. That's called politics, and asking the court to step in is a bad, bad idea.
Has anyone taken a look at the New London project actually at issue in Kelo? It's a pretty great idea in my opinion. Do you really want a situations where a few stubborn holdouts can prevent large-scale redevelopment projects? REmember, these people are getting compensated for their homes.
June 24, 2005 10:50 AM | Reply | Permalink
This is precisely what we ought to be both worrying about AND why we should be trying to show how this is what we can expect from a George Bush nominee. Rove's spin on this is that the liberals want the government to take your house away and thats why we need Grover Norquist on the Court; our argument has to be that George Bush only wants to reward the "wealthy and the well-connected" (thats Justice O'Connor, not Bob Shrum there).
Instead, we'll drivel on about abortion rights and fail to use the SCOTUS nom fight to make a point that could help define what the Democratic Party is all about -- standing up for ordinary Americans when a sell-out government wants to help tits fat-cat commercial developmetn friedns take their house/ businesss/ ranch/ farm away.
June 24, 2005 10:54 AM | Reply | Permalink
No, this is where I think the crux of the matter lies. This is not the sort of bizarre "takings" interpretation that the Federalists and Constitution-in-Exile nuts have been pushing; its precisely the opposite. Its actually existing private property ownership.
THe Federalist argument on takings boils down to -- zoning laws amount to confiscation of property since they limit the owners' chance to make a profit on it.
This case was about whether or not actually existing real estate can be protected, not about property as a metaphor for land developers' profits.
There's a world of difference between arguing against the Federalists that there are legimate bases for government action under the commerce clause and arguing with the Federalists that eminent domain must be for a demonstrated public use, not just an interpreation of the public good.
June 24, 2005 10:58 AM | Reply | Permalink
One point to add to Purple State's excellent dissection of city councils as run by developers -- those who get on city councils (or worse planning or zoning commission staffs) quickly realize that their future livelihood (meaning prospects for enrichment) lie with developers who will employ them as de facto lobbyists once they leave office or their staff job.
This is why I think the Democrats should get ahead of this and propose national "homeowner's rights" legislation now. Urban-dwelling, Green-line riding folks like the authors of this blog won't have "strong feelings" but out here in the burbs, ex-urbs and rural areas where fighting off development is a pressing issue and the local government is on the side of development, this is an issue that turns elections.
June 24, 2005 11:08 AM | Reply | Permalink
Who owns the property, the state or the citizen? If the citizen, then yes, they can hold out for any damn reason they want. If I don't want to sell my car, I don't have to. At least when private property rights meant something.
Dan
June 24, 2005 11:18 AM | Reply | Permalink
First, here is a good article about the Kelo case from the January / February 2005 issue of Legal Affairs. It also includes some good background about eminent domain generally.
http://www.legalaffairs.org/issues/January-February-2005/toa_merr ill_janfeb05.msp
Second, I also disagree with Matt on this one. There is a huge difference between taking land for a public library, or courthouse, or park, or highway and forcing the sale of the land to private developers for an office park (as in this case). If the proposed development is really so important, the developers should have to pay any amount necessary to get the land they want.
The Court is correct that legislatures can pass laws to restrict this power or to make sure that the compensation is just, and I think they should do so (but I doubt they will). In my opinion, just compensation in this case would be the market value that the government would pay for a truly public use (like a courthouse) plus a share of the finished development. For example, the developers could be required to give displaced homeowners a 30% interest in the finished development, thus if your taken land makes up 5% of the total development, you would get 5% of the 30%, or a 1.5% interest in the development.
Since the real economic benefit of the development goes to the private developers anyway, it seems like truly "just" compensation would be to share in this benefit.
June 24, 2005 11:30 AM | Reply | Permalink
The Federal government may have a very compelling public interest in regulation and still have it fail the last test. No one wants kids bringing guns to school, but how in the world could that activity substantially affect interstate commerce? Likewise, how could gun ownership substantially affect interstate commerce?
Try not to get hysterical.
June 24, 2005 11:38 AM | Reply | Permalink
Do you really want a situations where a few stubborn holdouts can prevent large-scale redevelopment projects?
If it's not a "public use" development project, then yes.
Why? Because it's unconstitutional. Or, more precisely, it was until yesterday. Now that it is constitutionally permissible, I doubt too many liberals and progressives - and people in general - will be happy about it in the long run.
Developers, contractors and their friends in local government, however, are throwing huge parties today.
June 24, 2005 11:46 AM | Reply | Permalink
You'll have a new marina to tie your boat up in. Maybe the people who lost their homes can swab the decks! More jobs, you know. It's good for the economy.
June 24, 2005 12:01 PM | Reply | Permalink
First: Kelo does not mean any taking for economic development is warranted. Nor does it mean that a municipality may merely condemn any property and transfer it to any private person. There must be an underlying public purpose. It has long been the law that a public purpose includes economic development. In other words, eminent domain has never been limited to the taking of land for schools, roads, etc.
Kelo does not expand eminent domain powers to any great degree or change takings analysis in any meaningful way. Municipalities have long held the power to condemn blighted areas for redevelopment purposes, even if a private owner will ultimately wind up with the property.
Thus, the only real question before the Kelo Court was whether a municipality may utilize the power of eminent domain to acquire "NON BLIGHTED LAND" and whether such land may be condemned for economic development purposes.
Moreover, it’s a decision that's been decided under State Law before. Poletown Neighborhood Council v. Detroit, 304 N.W. 455 (1981). Therein, the Michigan Supreme Court held it permissible to utilize a Michigan statute, (similar to the Connecticut statute under which the City of New London acted) to condemn a large tract of urban land, including non-blighted homes. The purpose was to turn the property over to General Motors for the purposes of building a factory. The purpose was obviously generating economic development and jobs. This kind of economic development, the creation of jobs, and the expansion of the tax base was considered a valid public purpose.
Second: City Councils in Connecticut are unpaid, volunteer positions. Members spend countless hours at meetings, running for office etc. without compensation. I live in the seventh largest City in the State of Connecticut (Danbury). Even though Republicans currently control our City's Common Council (something that happens for two or three years every 20 or 30 years or so) and I do not agree with much of what they do - I can not make out a case for them all to be in anyone's pocket.
Lastly: the ultimate issue in Kelo comes down to respecting the decision of the legislative authority to determine what constitutes economic development. And if anyone thinks that this decision was exceptionally unpopular or anything: consider this, current State Representative Ernest Hewett was a member of the City Council that passed the ordinance starting the process underlying Kelo.(Source Danbury NewsTimes - www.newstimes.com) Since voting to approve this ordinance, he has been elected to the Connecticut General Assembly. Something tells me if the local opposition to this plan had been all that strong he wouldn't have won. (note: Rep. Hewett is a Democrat and serves in the Connecticut House of Representatives where Democrats hold a 100 out of 151 seats.)
June 24, 2005 4:08 PM | Reply | Permalink
you write: "Thus, the only real question before the Kelo Court was whether a municipality may utilize the power of eminent domain to acquire "NON BLIGHTED LAND" and whether such land may be condemned for economic development purposes."
Yes, but those are HUGE questions, that before yesterday, were considered unconstitutional. It is a big shift in the understanding of the Takings Clause that took 8 years to litigate.
I mean, the tone in your post is one of someone clearly not living in a perfectly good, well kept house that's been in your family for decades, about to be dozed under to make way for a Pfizer research facility.
The only real question? As if that makes it an unimportant question.
It's even a more important question where - as is not the case in Kelo - poor people in NON-BLIGHTED areas get forcibly evicted for, say, a sports stadium, and then they have to move and hope the next area they can afford isn't worse than the one they're in at the moment.
As for your last point, the people whose houses aren't being destroyed don't care enough (they have lives, families, their own houses to take care of, etc...)- if it were happening to them, they'd spend 8 years in the courts trying to stop it too. That's not a great argument for letting people living in NON-BLIGHTED homes get forcibly removed against their will to put up something most people do not consider to be public use.
June 24, 2005 4:35 PM | Reply | Permalink
I am replying to your comment only because it is so well written, and by and large, accurate. What you described really reflects our abysmal neglect of our civic duties as citizens. My experience with city councils in more than one city is that they respond to whatever pressures they get. If we dislike a development they are being pressured to approve we can gather our neighbors together and apply pressure ourselves. Generally that pressure will have some effect. But, that is really the second step. The first step is to get involved before the election for city council. Either run ourselves, or select a good candidate to support, then work our butts off to be sure our guy is elected. When we don't do those two things, of course the developers are all too happy to do them for us.
June 24, 2005 6:49 PM | Reply | Permalink
Moreover, it’s a decision that's been decided under State Law before. Poletown Neighborhood Council v. Detroit, 304 N.W. 455 (1981).
Poletown was overturned last year in County of Wayne v. Hathcock (PDF link). That case had almost exactly the same characteristics of Kelo (quoting from Marci Hamilton's excellent Findlaw article):
The case arose because the County of Wayne sought to condemn property near an airport. It claimed the taking was for public use, but it was public in only the most tenuous sense. The County had no plans to turn the land to permanent public service, but rather planned to give the land to private developers, who, in turn, planned to construct a business and technology park. In essence, the government was acting as a broker for business.
So where was the public use? The County claimed that the project would help the public by reinvigorating the economy, increasing tax receipts, and generating jobs. But of course, virtually any development would do that. That is the role of private industry, is it not? So if the County's argument were to be accepted, the "public use" limitation would be no limitation at all, and government could use its eminent domain power to arbitrarily choose between private property owners.
June 24, 2005 8:44 PM | Reply | Permalink
I also fail to understand the outrage at this decision. Kelo doesn't mandate a result one way or the other; it leaves the decision where it belongs, with elected local governments. Judges are just as flawed as legislators, but at least with legislators you can vote them out of office and there's no stare decisis.
And for all those who claim that this is going to hurt the poorest people? Ahem, the poorest people in the country DON'T OWN PROPERTY. That tends to go along with being poor. I'd be shocked if as much as 15% the urban poor displaced in misbegotten urban renewal schemes actually owned their homes.
June 24, 2005 10:37 PM | Reply | Permalink
Al wrote: "Republican politicians will support the decision"
I'm on of those people who think this is a terrible decision that should be an issue for both parties. But I concur with Al's comment that politicians, both Republican and Democrat, will duck on this one. Just like they will duck on Gonzales v. Raich.
There is only a small constituency for limiting the omnipotence of the courts or the power of the government. Why those who rail against the patriot act don't see an even more dangerous intrusion from Raich & Kelo is beyond my understanding.
Take a read around the internet. This decision has struck a chord. People of all political persuasions know instictively that it is wrong, but it will stand because neither politicians or the MSM will see it as anything but big government as usual.
June 25, 2005 7:51 AM | Reply | Permalink
...and I can tell you if they have any understanding of Kelo and that real estate is not a fungible commodity.
Matt, would I be correct in guessing that you don't have any real property of your own?
You casually assume a key fact upon which stands the entirepolicy/planning rationale for the sort of eminent domain at issue in Kelo: that economic redevelopment will not happen or would even be slowed without condemnation. You referred to "...<span class="Apple-style-span">worthwhile economic development schemes." I suggest that you are dead wrong. The "schemes" as you well put it which depend on eminent domain are not worthwhile or can go forward very well without condemnation.</span>
There is the nub of the issue: we do not need eminent domain in economic development...unless your idea of worthwhile economiv development is baseball stadia.
June 25, 2005 7:55 AM | Reply | Permalink
This looks like a winner for the democrats to me. The Scotus is 7-2 Republican appointments.
The republicans take the blaim for all SCOTUS decisions.
If the Democrats are smart thay can use this.
The wedge is ours, lets give 'em a wedgie
June 25, 2005 8:46 AM | Reply | Permalink
The developers aren't wasting any time.
Houston Chronicle
June 24, 2005, 6:41PM
But officials in the beachfront town of Freeport, south of Houston, said they would move aggressively to condemn property owned by two seafood companies to clear the way for an $8 million private marina.
Who is standing up for property owners??
A Republican. Where are the democrats for crying out loud. Lets not let the republicans own this issue.
"Hours after the court's 5-4 ruling came down, Rep. Frank Corte Jr., R-San Antonio, said he would seek "to defend the rights of property owners in Texas"
June 25, 2005 8:53 AM | Reply | Permalink
I'm glad to see that several commenters are more concerned than Matt about protecting the individual against big companies and local corruption.
Here's how to take action to mitigate the effects of Kelo: join the Castle Coalition (CastleCoalition.org). The usual disclaimer: my only affiliation is the modest $ I've contributed over the years.
June 25, 2005 9:21 AM | Reply | Permalink
Good god, these are some of the most hysterical comments I've ever read. I'm not sure people are as upset about Rove calling 30-49% of the population active traitors as they are about a ruling that, as MY states, and no one has meaningfully refuted, maintains the status quo ante. Yes, some of these questions were active and are now settled, but, as the Arlington example shows, this doesn't open up ANY new ground. This has been done before, and will be done again.
The hysteria comes from every yahoo who insists that "every homeowner in America will now fear that his house will be taken for a Wal-Mart." Really? I mean, seriously, do you believe that? Why? How? Under what circumstances would this happen? ED is an incredibly laborious, contentious, (politically) risky, and expensive process. It's a last resort, but the commenters here act as if local politicians are eagerly searching for opportunities to use it. And if you think it's true, then it's you, not MY, who are politically naive.
Actual plans involving ED tend to be non-starters. Why? For the same reason that people here seem to think that this will be a wedge issue (HA!). If someone actually did propose taking decent houses in a good neighborhood (or even decent houses in a poor neighborhood)for a WalMart, every voter would identify with... the homeowners. And the politicians, while they may get $$ from WalMart, need to get votes from citizens. It is not hard to win the PR/political battle against ED unless the clear majority of people actually support the proposed development. And while that may not be good enough for Internet Libertarians, that's actually how public policy gets made in this country. It's how our every right is determined and delimited. I'm sorry it's not Libertopia, but there it is. Stop bitching on the internet, and get down to Council chambers.
June 27, 2005 8:34 AM | Reply | Permalink
Progressives who defend the Kelo decision are simply wrong on legal, ideological, and political grounds.
The previous standard for “public use” when forcing the transfer of property from one private owner to another required the state to demonstrate an actual harm to the public such as an oligopoly in land ownership or the often abused concept of “blight.” The Supreme Court majority has now expanded the definition to include whatever a local government considers to be “economic development,” as the Court specifically declined to “second-guess” local authorities. A right that Americans had under the Constitution no longer exists.
Ideologically, this should be a no-brainer. This decision helps the wealthy and connected at the expense of the rest of us. For proof, all you have to do is watch the behavior of local officials in any area targeted for developers.
But it’s the politics that we need to focus on. Constitutional or not, giving the state the power to force one out of one's home at the behest of a developer threatens individual freedom and will likely be viewed that way by the vast majority of Americans. A backlash bigger than Roe v. Wade is coming that could undermine public support for the judicious use of eminent domain in the public interest. Extremists who would like to reinterpret the compensation element of the "takings" clause to gut environmental and other regulations are already capitalizing on the Kelo decision. Republicans can be expected to use this to their advantage in the coming Supreme Court nomination fight and 2006 elections.
It is thus imperative that progressives put themselves at the head of a nation-wide movement to enact legislation that would restore the rights that homeowners enjoyed until last Thursday. Progressives should demand that governments at all levels legally renounce the use of eminent domain to benefit private interests under cover of promoting economic development. This is an opportunity that we should not concede to the other side.
June 28, 2005 11:14 AM | Reply | Permalink
No, this was potentially a hidden victory for the Federalist Society types. Kelo gives them a wrongly-decided, emotionally powerful issue on which mount a backlash that really will threaten the regulatory state.
But the minarchists win only if liberals fail to seize this opportunity to lead a legislative movement to establish a correct balance between individual liberty and public good. The use of eminent domain to force people to sell their homes at below market prices to developers should be outlawed.
P.S. ED prices are always below market. The only reason for a developer to seek to condem your home is because he doesn't want to pay what you want for it in a free market transaction. Moreover, the fact that developers can now use local governments to condem your home reduces the prevailing market value as well. Finally, "just compensation" doesn't necessarily mean actual market or replacement value anyway.
June 28, 2005 11:42 AM | Reply | Permalink
As I posted elsewhere, this gives the takings extremists a wedge issue with which to advance their agenda. But a ruling to prevent the forced transfer of property from one private citizen to another would in no way have effected the question of transfer from private to public use.
June 28, 2005 11:52 AM | Reply | Permalink
Second, by allowing the state to force a private-to-private transfer for economic development purposes, Kelo actually encourages government-developer alliances to attack private environmental preservation efforts. Say you chose to retire the development rights to your family farm or the Nature Conservancy purchases of some critical wildlilfe habitat that takes land off the tax roles. Now the state can condem such properties on the grounds that "public use" requires that they generate more tax revenue than they will under a conservation easement.
Third, as I argue elsewhere, the backlash against Kelo, unless it is harnessed by progressives, could result in legislation or court appointments that curtail the state's ability to regulate property use for environmental purposes.
June 28, 2005 12:11 PM | Reply | Permalink
The private development of a pharmaceutical company, hotel, and condos - even though it will likely have some public benefit - is not "public use."
Unfortunately, the Supreme Court has been interpreting "public use" to mean "public benefit" (or "public purpose") for more than a century now. From Justice Stevens's opinion (footnote references omitted):
I agree with MY here: Your quarrel is really not with the decision, but with the wording of the Constitution itself, or at the very least, with the interpretation of the Takings Clause wording that has prevailed for the last 100+ years. (But do note that Stevens says that the more restrictive interpretation had over time proved to be unworkable.) The way to limit the use of eminent domain for redevelopment projects is (a) to ride herd on local planning boards and town councils; and (b) to lobby the state legislatures to write restrictions on the proper use of eminent domain into state law.
June 28, 2005 3:30 PM | Reply | Permalink
The only reason for a developer to seek to condem your home is because he doesn't want to pay what you want for it in a free market transaction.
My understanding is that in this case, eminent domain was only being invoked in the case of a handful of holdout homeowners (nine, I believe, holding a total of 15 out of 115 parcels) who refused to sell at any price.
Finally, "just compensation" doesn't necessarily mean actual market or replacement value anyway.
It's not a unilateral determination. If you don't think the price you're being offered is fair, you can challenge it in court. Now granted, there's a calculation that has to be made between what it will cost you to take the case to court and how much additional money you can reasonably expect to get for your property, but the same calculation applies in the other direction, too. And in some states, if the court awards you more than a given percentage above the original offer, the other party has to pay the court costs.
June 28, 2005 3:55 PM | Reply | Permalink
Is there anyone outside of the majority of the legislature that someone can appeal to when they think they are being wrongfully forced to sell? . . . If you can't appeal to the judiciary branch, then you are completely beholden to a single branch of government.
No, access to the courts is not being cut off. If you don't think you are being offered a fair price for your property, you can ask the court to settle that question. If you think that the reason that your property is being condemned is not in conformity with the requirements of your state law or the Fifth Amendment to the US Constitution, you can go to court over that as well.
The only thing the Court has done with Kelo is to affirm that economic development is a valid public use (note that I said "affirm" -- this is not a new ruling), affirm that the particular piece of property in question need not be blighted (something they decided 50 years ago), and (the only new twist on it) that it does not require that the neighborhood as a whole be designated as blighted to be subject to a taking under eminent domain.
June 28, 2005 4:24 PM | Reply | Permalink
The point of private ownership in a free market is that you don't have to sell if you don't want to, regardless of price. On the other hand, just about everyone has a price. There was some 6 or 7 digit number out there that Kelo, et. al. would have accepted. That is the market-determined price that the developers did not want to pay.
If you believe that a market-driven economy generates the most wealth on average instead of one micro-managed by government for the benefit of developers, then a developer's unwillingness to meet the homeowners' price means that the project was not worth doing from a social perspective.
June 29, 2005 9:54 AM | Reply | Permalink
What we have a quarrel with is the Court moving the line to produce a NEW expansion of public use that covers hypothetical additional benefits ("positive externalities") from forced transfers of property from one beneficial private owner to another that might prove even more beneficial. All with no "second-guessing" oversight by the courts. If nothing short of provable corrupt cronyism can fail to meet the public use test, then the term has no practical meaning.
Nevertheless, the Court has spoken and "slb" is right that the immediate solution lies in local and state political action. I've written to my mayor and state assembly reps. Have you?
Every state legislator should fear the wrath of legions of homeowning voters in 2006 and scurry to introduce bills or constitutional amendments to outlaw the use of eminent domain for purely economic development purposes.
June 29, 2005 10:22 AM | Reply | Permalink
The point of private ownership in a free market is that you don't have to sell if you don't want to, regardless of price.
Up to a point, but that is not an absolute right; the Takings Clause of the Fifth Amendment acknowledges that there is a limit to ownership rights in that regard. The Fifth Amendment doesn't say th