Ohio Supreme Court Sides with Private-Property Owners

Washington, D.C., July 26, 2006 - In an unanimous decision, the Ohio Supreme Court ruled today that economic development may not be the sole reason for the government to seize private property for eminent domain purposes.

"We are thrilled with the court's decision," said Karen Harned, executive director of NFIB's Legal Foundation. "The Ohio Supreme Court rightly determined that the city of Norwood abused its eminent domain authority. The takings clause in the Ohio constitution was never intended to allow governments to take properties from private owners just to turn and sell these properties to other private entities. This decision restores the rights of private-property owners in Ohio and hopefully will serve as a lesson to other states."

The National Federation of Independent Business Legal Foundation filed an amicus brief in this case on behalf of the small businesses and homeowners in Norwood, Ohio, who were in danger of losing their private property to a private developer.

In addition to the court's finding that economic development by itself is not a public use that justifies the government to use its eminent domain powers, the court also determined that Ohio courts must apply "heightened scrutiny" when reviewing eminent domain statutes. The unanimous opinion continued to find that the use of the "deteriorating area" standard is unconstitutional "because the term inherently incorporates speculation as to the future condition of the property... rather than the condition of the property at the time of the taking."

The court's opinion is available at http://www.sconet.state.oh.us/rod/newpdf/0/2006/2006-ohio-3799.pdf

The NFIB Legal Foundation is a 501(c)(3) organization created to protect the rights of America's small-business owners by providing advisory material on legal issues and by ensuring that the voice of small business is heard in the nation's courts. The National Federation of Independent Business (NFIB) represents the consensus views of its 600,000 members in Washington and all 50 state capitals.

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