With Governor’s Signature Today, Alabama Will Become First State To Curb Eminent Domain Abuse After Kelo Institute for Justice Says Blight Laws Must Also Be Fixed

WEB RELEASE: August 3, 2005
CONTACT: John Kramer Lisa Knepper (202) 955-1300 [Private Property]

Washington, D.C.—With his signature later today, Governor Bob Riley is expected to make Alabama the first state to give its citizens stronger protections against eminent domain for private profit in the wake of the U.S. Supreme Court’s decision in Kelo v. City of New London.

That decision gave governments nationwide the power to seize homes, small businesses, churches and other property to benefit private interests without violating the U.S. Constitution. Instead of giving meaning to the Constitution’s “public use” limitation on the power of eminent domain, the Court left it up to states and municipalities to protect home and small business owners from seizure for private development.

“Kudos to Alabama political leaders for taking the first step toward protecting their citizens from eminent domain abuse,” said Institute for Justice Senior Attorney Dana Berliner, who represents Susette Kelo and the other New London, Conn., homeowners fighting to save their homes. “But there is more work to do. For full protection of Alabamians’ rights, legislators must reform the blight laws that all-too-often provide a sham justification to use eminent domain for private profit. Today, blight can mean literally anything the government wants it to mean, and as a result, homeowners’ rights remain in jeopardy.”

The Alabama legislation prohibits cities and counties from using eminent domain for private development or for enhancing tax revenue. But it creates an exception that allows seizure of so-called “blighted” properties so that they can be turned over to private interests.

“Alabama blight law is particularly prone to abuse and must be reformed,” said Berliner, who authored a first-of-its-kind nationwide study on eminent domain abuse, Public Power, Private Gain. “In Alabama you can condemn property under blight law if it might become blighted in the future, or if the property is ‘obsolescent’—usually a code word for ‘we’d like something else here.’”

“If legislators close the blight loophole, Alabama will be one of the best states in the country for protecting the rights of home and small business owners,” Berliner added. “A revised law would allow takings for true problem areas but not for trumped up ‘blight’ claims.”

Responding to public outcry over the Kelo ruling, lawmakers in at least 31 states and the U.S. Congress have taken swift action to curb eminent domain abuse.

“Alabama is the first state to enact meaningful eminent domain reform, but we are sure it won’t be the last,” said IJ President and General Counsel Chip Mellor. “Legislators are responding to the widespread and nearly unanimous public outrage over the Supreme Court’s Kelo ruling.”

In the wake of Kelo, legislation has been introduced in seventeen states (Alabama, California, Connecticut, Delaware, Florida, Illinois, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Tennessee and Texas) limiting the use of eminent domain for private projects or tightening eminent domain procedures. Lawmakers in another seven states (Alaska, Louisiana, Oklahoma, Ohio, South Dakota, South Carolina and Wisconsin) have announced plans to introduce eminent domain legislation in upcoming sessions.

Legislators in Colorado, Georgia and Virginia now hope to revive previously introduced bills. Legislators in Alabama, California, Florida, New Jersey, Texas and Michigan are mobilizing to support state constitutional amendments prohibiting eminent domain for private development. Arkansas, Delaware, Florida, Indiana, Missouri, Tennessee and New Hampshire have created state commissions to study the use of eminent domain and ways of reining in abuse.

Legislators in Connecticut and New York have called for moratoria on the use of eminent domain until their legislatures can revise the law to protect property owners. The City of New London, Conn., has agreed to abide by the moratorium and allow Susette Kelo and the other homeowners to stay for now.

Delaware Gov. Ruth Ann Minner also signed eminent domain legislation in the wake of Kelo, but that bill appears to reinforce—not limit—the ruling. The bill simply requires that cities have a plan when condemning property and that the condemnations are for a “recognized public use,” which under Kelo includes private economic development.

Federal lawmakers have also moved to curb eminent domain abuse. Texas Sen. John Cornyn and Wisconsin Rep. James Sensenbrenner, Jr., introduced legislation in Congress that would bar federal funding for projects involving takings for private profit. By a large margin, the U.S. House of Representatives passed a resolution condemning the Kelo decision. California Rep. Maxine Waters introduced legislation that would withhold community development block grants from communities that do not prohibit eminent domain abuse. Texas Rep. Henry Bonilla proposed prohibiting federal development assistance for cities that abuse eminent domain.

“The issue of eminent domain abuse has galvanized Americans like no other in recent memory because it literally touches home,” added Mellor.

Poll after poll shows Americans virtually united against eminent domain for private profit. Eighty-nine percent of Connecticut voters say the legislature should limit eminent domain, according to a poll by Quinnipiac University. Ninety-three percent of New Hampshire citizens oppose takings for private development, according to the University of New Hampshire. A recent Wall Street Journal/NBC poll found that Americans cite private property rights as the current legal issue they care most about.

To channel popular outrage into lasting legislative change, the Institute for Justice and its Castle Coalition grassroots arm launched a $3 million Hands Off My Home campaign. The campaign supports eminent domain reform at the state and local level and equips ordinary Americans with the means to protect their homes, small businesses and churches from eminent domain for private profit. Citizens can join the Castle Coalition and learn how to get involved in Hands Off My Home at www.castlecoalition.org. Top Story Americans Say: “Hands Off My Home” IJ Charging Ahead After Kelo More Top Stories Alabama Will Become First State To Curb Eminent Domain Abuse After Kelo IJ Minnesota Chapter: First Case, First Victory School Choice Showdown at the Florida Supreme Court The Polls Are In: Private Property Rights is the Number One Issue for Americans

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