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Kelo vs. New London Zach Messersmith 12/5/2006
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Eminent Domain Legal right of government to seize private land for public good Government receives power from the 5 th amendment
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5 th Amendment …nor shall property be taken for public use without just compensation
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What is public use? School Roads Police Stations Shopping Malls? Business Complexes?
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What is just compensation Value of land at fair market value More than fair market value given that land was not for sale Often contested Many lawsuits result
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Kelo vs. City of New London, CT U.S. Supreme Court Case Argued February 22, 2005 Decided June 23, 2005 5-4 Decision
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City of New London Failing economy Pfizer to build business complex Develop area around business complex to encourage further growth Need land that was residential area to create shopping to boost the economy
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City of New London Found many willing sellers Some difficulty with others Key properties being held by owners Started a petition to get properties condemned
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Kelo Susette Kelo and others in neighborhood unwilling to sell Worked hard to restore home Value of home and land was very high because of the personal work that she had put in
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Lower Court Opinions Trail Court stated that some of the land could be taken and other land was protected Connecticut Supreme Court partially upheld takings and partially reversed taking of land
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Supreme Court Decision 5-4 Decision Majority opinion written by Stevens Dissenting opinion written by O’ Connor
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Majority Opinion Order of way the city went about things was seen as important Had a plan Tax revenue to benefit all
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Dissenting Opinion Reverse Robin Hood Could become the norm Removes need for words “for public good” from 5 th Amendment
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Previous Eminent Domain Decisions Hawaii Housing Authority vs. Midkiff Berman vs. Parker
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Reaction to Kelo President Bush makes executive order on June 23, 2006 Only has effect on Federal government State and Local use eminent domain more often
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Reaction to Kelo 8 States only allow for eminent domain to be used in cases of blight 5 more states thinking about making similar laws
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Reaction to Kelo Christian Science Monitor polls states the 93% of people disagreed with decision AARP and NAACP speak out against ruling
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Reaction to Kelo Senator John Cornyn proposes law in Congress With hold federal funds from projects like New London
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Reaction to Kelo Corporations that would have benefited from decision speak out CEO of $116.3 Billion lending company says no loan for some contracts
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Post Kelo City of New London demands back rent Total amount of about $10,000
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Kelo Today New London agreed to move Kelo’s home Lots where home was located sits empty
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Kelo Today
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What is the effect of Kelo Elimination of cheap housing More ability to get rid of run down housing more easily
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Eminent Domain in Normal
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References http://www.law.cornell.edu/supct/html/04 -108.ZS.html http://www.law.cornell.edu/constitution/c onstitution.billofrights.html#amendmentv http://en.wikipedia.org/wiki/Kelo_v._City _of_New_London http://money.cnn.com/2005/01/05/real_ estate/thursday_takings/
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References http://library.cqpress.com/cqweekly/sear ch.php http://newfirstsearch.oclc.org/WebZ/FS Prefs?entityjsdetect=:javascript=true:scr eensize=large:sessionid=fsapp3-59637- evcjkjpg-u2a9l7:entitypagenum=1:0
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