The Economics of Eminent Domain: Private Property, Public Use, and Just Compensation

2006 ◽  
Vol 3 (4) ◽  
pp. 275-329 ◽  
Author(s):  
Thomas J. Miceli ◽  
Kathleen Segerson

Author(s):  
Caitlyn Ashley ◽  
Elizabeth Spencer Berthiaume ◽  
Philip Berzin ◽  
Rikki Blassingame ◽  
Stephanie Bradley Fryer ◽  
...  

Eminent Domain is the power of the government or quasi-government entities to take private or public property interests through condemnation. Eminent Domain has been a significant issue since 1879 when, in the case of Boom Company v. Patterson, the Supreme Court first acknowledged that the power of eminent domain may be delegated by state legislatures to agencies and non-governmental entities. Thus, the era of legal takings began. Though an important legal dispute then, more recently eminent domain has blossomed into an enduring contentious social and political problem throughout the United States. The Fifth Amendment to the United States Constitution states, “nor shall private property be taken for public use, without just compensation.” Thus, in the wake of the now infamous decision in Kelo v. City of New London, where the Court upheld the taking of private property for purely economic benefit as a “public use,” the requirement of “just compensation” stands as the primary defender of constitutionally protected liberty under the federal constitution. In response to Kelo, many state legislatures passed a variety of eminent domain reforms specifically tailoring what qualifies as a public use and how just compensation should be calculated. Texas landowners recognize that the state’s population is growing at a rapid pace. There is an increasing need for more land and resources such as energy and transportation. But, private property rights are equally important, especially in Texas, and must be protected as well. Eminent domain and the condemnation process is not a willing buyer and willing seller transition; it is a legally forced sale. Therefore, it is necessary to consider further improvements to the laws that govern the use of eminent domain so Texas landowners can have more assurance that this process is fair and respectful of their private property rights when they are forced to relinquish their land. This report compiles statutes and information from the other forty-nine states to illustrate how they address key eminent domain issues. Further, this report endeavors to provide a neutral third voice in Texas to strike a more appropriate balance between individual’s property rights and the need for increased economic development. This report breaks down eminent domain into seven major topics that, in addition to Texas, seemed to be similar in many of the other states. These categories are: (1) Awarding of Attorneys’ Fee; (2) Compensation and Valuation; (3) Procedure Prior to Suit; (4) Condemnation Procedure; (5) What Cannot be Condemned; (6) Public Use & Authority to Condemn; and (7) Abandonment. In analyzing these seven categories, this report does not seek to advance a particular interest but only to provide information on how Texas law differs from other states. This report lays out trends seen across other states that are either similar or dissimilar to Texas, and additionally, discusses interesting and unique laws employed by other states that may be of interest to Texas policy makers. Our research found three dominant categories which tend to be major issues across the country: (1) the awarding of attorneys’ fees; (2) the valuation and measurement of just compensation; and (3) procedure prior to suit.





2018 ◽  
Vol 6 (4) ◽  
pp. 38
Author(s):  
Sonia Paone

The article analyses the transformations of the use of eminent domain in the United States in the context of urban redevelopment programs. In the past the private property has been expropriated for public use only. Recently it is possible to forcibly transfer property, from a private subject to private developers, on the basis of a cost-benefit analysis that demonstrates that the new use is more efficient than the previous one. This profound change has been possible thanks to a progressive modification of the concept of public use. Traditionally, public use coincided with the construction of infrastructures and public utility, such as highways and railroads. Over the time, it has come to include other aims: firstly, projects of urban renewal and economic development carried forth by private developers. Essentially, it has resulted in the use of expropriation to assemble lands which are then granted to subjects who intervene in the reconfiguration of the city for private purposes. Starting from some important examples of urban development, the main phases of this process are reconstructed, also taking into account the most important decisions of the US Supreme Court that contributed to the change of doctrine, invalidating the postulate of public use as justification for expropriation.



2016 ◽  
Vol 15 (2) ◽  
pp. 189-191
Author(s):  
Marcus Anthony Hunter


2014 ◽  
Vol 47 (1) ◽  
pp. 149-171
Author(s):  
Shai Stern

Eminent domain, or the expropriation of private property, is among the most controversial of legal arrangements. The challenges and threats that it poses to private property make it the subject of debate and dispute. Surprisingly, however, most Western jurisdictions embrace a similar formula to address expropriation, both in terms of the purposes that justify such action and the compensation that should be awarded to property owners.This article challenges the prevailing eminent domain formula, according to which, regardless of the circumstances of the expropriation, compensation to the property owner is determined by reference to the market value of the property. By exploring the case of Israel's 2005 disengagement plan, as a result of which 21 residential communities were uprooted by expropriation, this article argues that loss of communality should be taken into account in expropriations that uproot entire communities. However, in order for the legal arrangement to be efficient, fair and, of no less importance, to reflect the values embodied in the right to property, it should be constituted within a normative infrastructure that takes into account the values that the society wishes to endorse, and the inner meaning of these values.



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