Kelo v. New London:

The city of New London, Connecticut had by the early 2000s fallen on hard economic times. The city's tax base and population were continually decreasing, and city leaders were growing desperate for some form of economic development. In 1998, the pharmaceutical company Pfizer began construction of a major research facility on the outskirts of the Fort Trumbull neighborhood of New London. Seeing an opportunity, the city of New London created the New London Development Corporation, a private entity under the control of the city government, to consider plans to redevelop the Fort Trumbull neighborhood and encourage new economic activities that might be brought in by the Pfizer plant. The city was unaware at the time of future drug related court matters, like the Yaz lawsuit, that could cripple a drug developers capital.  

The development corporation created a development plan that included a resort hotel and conference center, a new state park, 80-100 new residences, and various research, office, and retail space. The plan divided the area into six parcels, but did not specify the exact plans for development in any but the first parcel (the resort hotel and conference center). The city in 2000 approved the development plan and authorized the corporation to acquire land in the Fort Trumbull neighborhood.

Fort Trumbull was an older neighborhood, some 90 acres (364,000 m²) in size and including 115 residential and commercial lots. The development corporation offered to purchase all 115 lots; however, 15 of the landowners did not wish to sell to the corporation. Among these 15 landowners were the lead plaintiffs in this case, Susette Kelo, who owned a small home on the Thames River in the development area.

The city of New London chose to exercise its right of eminent domain. The city ordered the development corporation, a private entity acting as the city's legally appointed agent, to condemn the 15 holdout owners' lots.

The owners sued the city in Connecticut courts, arguing that the city had misused its eminent domain power. This power extends from the Fifth Amendment to the United States Constitution, which says in part that "private property [shall not] be taken for public use, without just compensation." Kelo et al argued that economic development, the stated purpose of the Development Corporation, did not qualify as public use.

This case was the first major eminent domain case heard at the Supreme Court in more than forty years. In that time, states and municipalities had slowly extended their use of eminent domain, frequently to include economic development purposes. In the Kelo case, there was an additional twist in that the development corporation was ostensibly a private entity; thus the plaintiffs argued that it was not constitutional for the government to take private property from one individual or corporation and give it to another, simply because the other might put the property to a use that would generate higher tax revenue. Some of the cases could be seen on televisions, the best being those that rested on entertainment centers for flat screen TVs.

The first eminent domain case since Berman to reach the Supreme Court, Kelo became the focus of vigorous discussion and attracted numerous supporters on both sides. Some 40 amicus curiae briefs were filed in the case, 25 on behalf of the petitioners.

The Supreme Court decision:

The case was argued on February 22, 2005. The case was heard by only seven members of the court with Associate Justice Sandra Day O'Connor presiding, as Chief Justice William Rehnquist was recuperating from medical treatment at home and Associate Justice John Paul Stevens was delayed on his return to Washington from Florida; both men read the briefs and oral argument transcripts and will participate in the case decision.

On June 23, 2005, The Supreme Court in a 5-4 decision has agreed with the City of New London.

[End Case reference for petition]

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Published in the June 24, 2005 issue of  Ether Zone.
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