A pivotal moment approaches as the United States Supreme Court considers a new case that might overturn a highly criticized decision from two decades ago. This controversial ruling has allowed local governments to seize private property and transfer it to entities with greater political clout.
The fight is led by the Institute for Justice on behalf of Bryan Bowers, a beleaguered landowner in New York. His property was seized by a local government agency and handed over to rivals, an action that many see as unjust.
The contested precedent is the infamous Kelo decision from 2005, which broadened the definition of “public use” to include the creation of jobs or an increase in tax revenue. Justice Sandra Day O’Connor, a dissenting voice in this narrow decision, cautioned that it granted the government power to transfer property from individuals with fewer resources to those wielding more influence.
The Institute for Justice deemed the Kelo ruling “one of the most reviled decisions in recent decades.” Now, the case stands ready to be presented to the Supreme Court for review.
Bob McNamara, Deputy Litigation Director for IJ, stated, “State legislatures, state high courts, and American voters amending their own state constitutions have all rejected Kelo because it is simply wrong to let the government take one person’s property away in order to hand it to another private owner with more political power. This case gives the Supreme Court the opportunity to say the same.”
In a February 21 conference, the Supreme Court justices requested the record on appeal from the New York state court, which has now been submitted for consideration.
The case has garnered support from various quarters, including a brief from the Cato Institute and George Mason University’s Scalia Law School Professor Ilya Somin. Additionally, the Buckeye Institute highlighted the injustices of eminent domain and the often unfulfilled promises of redevelopment.
The 2005 Kelo decision spurred 45 states to revise their laws to protect property owners from similar government actions.
Bryan Bowers, alongside his business partner Mike Licata, had acquired property adjacent to a new hospital in Utica, New York. However, their land was seized by the Oneida County Industrial Development Agency and allocated to competitors for parking use.
The Fifth Amendment permits private property to be taken for “public use” with “just compensation,” typically for infrastructure like roads and schools.
