In recent weeks, the term eminent domain
has been in the news. Nationally, Fox News
reported a story about a Colorado couple, that was about to lose their land to
the county, reportedly because the Summit County authorities disagreed with the
vehicle that they used to access their property[i]. The Federal Government is threatening to confiscate
several hundred acres of Texas ranch land from a rancher without offering the owner
any compensation. And, closer to home,
the City of Scranton was looking into using Pennsylvania’s eminent domain law
to take possession of the Mall at Steamtown, in an effort to save it from
bankruptcy[ii].
So, what is eminent domain and how does it impact private property
ownership rights?
By definition, eminent domain is the power of the state to
take possession of private property for public use, but just compensation must
be paid. Both federal and state
governments may exercise this power.
Additionally, federal and state governments may delegate that power to
local governments.
The Fifth Amendment of the U.S. Constitution requires that
property acquired through eminent domain must be for public use and that just
compensation must be paid to the owners. Prior to 2005, the definition of public use
was generally limited to acquiring land to be used for public transportation or
the government’s need for space to do business.
In June, of 2005, the U.S. Supreme Court, in a landmark case,
Kelo vs. City of New London[iii],
ruled that a government may invoke eminent domain to promote economic
development. That decision has been
widely criticized because it dramatically expanded the government’s power to
take private property.
It appears that local authorities in Scranton do not expect
to use eminent domain, since Steamtown’s bankruptcy should solve its financial
woes. It will be interesting to see if
the Colorado case will be upheld, since this may be the first time that public
use is defined as officials wanting the open space.
