In the landmark case of Kehlo v. New London, 545 U.S. 469 (2005), the Supreme Court of the United States ruled that governments could take land from citizen landowners so that private entities (in this case the pharmaceutical giant Pfizer) could develop on the taken land. Before this ruling, the power of eminent domain was generally believed to be restricted to takings for public uses such as roadways or utility easements. In a reversal of these general beliefs, the Supreme Court held that the takings clause of the Fifth Amendment to the Constitution allowed private land to be taken for development where the community enjoyed a general economic benefit. In explaining this ruling the Court stated that redevelopment plans that created a general economic benefit could be considered a permissible “public use” under the constitution.

This decision was very controversial. Here the Supreme Court was essentially allowing a for profit corporation to take property from private citizens! To this date it still boggles my mind that this could have happened in the United States. It’s bad enough when the state or local governments want to build a highway through your backyard but to allow Pfizer to do the same? The good news is that in reaction to this decision 43 states (including Indiana and Ohio)passed legislation to severely limit the powers granted to private entities under this ruling.

In an interesting twist on the original Kehlo decision, Pfizer has has decided to close its facility on the land that was once taken from landowners. In essence this means that the “economic benefits” initially cited by the Supreme Court will be either severely limited or dissipate altogether.

A discussion by a variety of experts on this occurrence and its general effects can be found here:

To my eyes it proves the foolishness of the original decision. To tie the immense power of eminent domain to nebulous future “economic benefits” is wrongheaded. Of course businesses fail. They fail all of the time. Just because a plan for “prosperity” is written doesn’t always make it true. It seems to me that you should have something more substantial than a good PowerPoint presentation talking about “economic benefits” before you are allowed to take a landowners property. If you feel you are a victim of a local or state government taking your land for a large business development plan, contact one of our Indiana Eminent Domain lawyers today.

Phil

Author Phil Sever
Posted in Eminent Domain & Condemnation
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