Opinion · Supreme Court of the United States

Kelo v. City of New London

Kelo v. City of New London, 545 U.S. 469 (2005)

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
2005-06-23
Topic
general

How later courts describe this case

  • recognizing that a governmental entity may not take property “under the mere pretext of a public purpose”
  • concluding that a taking in furtherance of an economic development plan constitutes a public use
  • holding that city’s use of eminent domain power to take property for economic development satisfies “public use” requirement of federal Takings Clause
  • holding that the city’s exercise of eminent-domain power in furtherance of an economic development plan satisfied the constitutional “public use” requirement
  • holding that a city’s use of its eminent domain power to take property for the purpose of economic development satisfies the “public use” requirement of the federal Takings Clause
  • holding that the government’s condemnation and transfer of private property to a private entity to facilitate economic development was a permissible “public use” under the Fifth Amendment’s Takings Clause
  • holding that the condemnation of property for private economic development is a “public use”
  • holding “public purpose” allows economic development by private parties if the development may lead to new jobs or increased tax revenue

Citator

UpLaw has not yet analyzed Kelo v. City of New London. The absence of a flag is not a finding that it is good law.

Authority status
pending
Cited by
584 opinions

Headnotes

  1. Constitutional Law — Eminent Domain — Public Use The Takings Clause of the Fifth Amendment, made applicable to the States through the Fourteenth Amendment, permits the government to take private property only for "public use" and upon payment of just compensation. U.S. Const. amends. V, XIV; Chicago, B. & Q. R. Co. v. Chicago, 166 U.S. 226 (1897)
  2. Constitutional Law — Public Use The "public use" requirement has been interpreted broadly as "public purpose," and the Court's cases have without exception defined that concept broadly, reflecting a long-standing policy of deference to legislative judgments about what public needs justify the exercise of the takings power. Fallbrook Irrigation Dist. v. Bradley, 164 U.S. 112, 158–164 (1896); Berman v. Parker, 348 U.S. 26 (1954); Hawaii Housing Authority v. Midkiff, 467 U.S. 229 (1984); Ruckelshaus v. Monsanto Co., 467 U.S. 986 (1984)
  3. Constitutional Law — Public Use The Court has rejected any literal requirement that condemned property be put into use for the general public; the narrow "use by the public" test has steadily eroded because it is difficult to administer and impractical given society's diverse and evolving needs, and a taking satisfies the Public Use Clause if it serves a public purpose. Midkiff, 467 U.S. at 244; Strickley v. Highland Boy Gold Mining Co., 200 U.S. 527, 531 (1906)
  4. Constitutional Law — Public Use A purely private taking—one whose actual purpose is to bestow a private benefit rather than to serve a public purpose, even if just compensation is paid—is void as serving no legitimate governmental purpose; a taking under the mere pretext of a public purpose when the actual purpose is to bestow a private benefit is not permitted. Midkiff, 467 U.S. at 245; Missouri Pacific R. Co. v. Nebraska, 164 U.S. 403 (1896); Thompson v. Consolidated Gas Util. Corp., 300 U.S. 55, 80 (1937)
  5. Constitutional Law — Public Use Promoting economic development is a traditional and long-accepted function of government, and economic development qualifies as a "public use" within the meaning of the Takings Clause; the Court declines to adopt a bright-line rule that economic development does not qualify as a public use. Berman, 348 U.S. at 33
  6. Constitutional Law — Public Use No principled distinction exists between the public purpose of economic development and other public purposes the Court has recognized as legitimate bases for takings, which include transforming a blighted area into a "well-balanced" community, breaking up a land oligopoly that created artificial deterrents to the normal functioning of the residential land market, and eliminating a significant barrier to entry in a market. Berman, 348 U.S. at 33; Midkiff, 467 U.S. at 242; Monsanto, 467 U.S. at 1015
  7. Constitutional Law — Public Use Incidental or secondary benefits to private parties do not convert a taking with a valid public purpose into an impermissible private taking; the public character of a taking is determined by its purpose, not its mechanics, and the public end may be as well or better served through an agency of private enterprise as through a department of government. Berman, 348 U.S. at 33–34; Midkiff, 467 U.S. at 244; Monsanto, 467 U.S. at 1014; National Railroad Passenger Corporation v. Boston & Maine Corp., 503 U.S. 407, 422 (1992); Brown v. Legal Foundation of Wash., 538 U.S. 216 (2003)
  8. Constitutional Law — Public Use A taking pursuant to a comprehensive, carefully considered development plan that the legislature determined would provide appreciable benefits to the community—such as new jobs and increased tax revenue—and that was not adopted to benefit a particular class of identifiable individuals, satisfies the Fifth Amendment; challenges by individual owners are resolved in light of the entire plan rather than on a piecemeal basis. Berman, 348 U.S. 26; Midkiff, 467 U.S. at 245
  9. Constitutional Law — Public Use A legislative determination that an area is sufficiently distressed to justify a program of economic rejuvenation is entitled to deference; courts do not sit to reappraise legislative and agency judgments that take into account a wide variety of values, and the concept of the public welfare is broad and inclusive. Berman, 348 U.S. at 32–33
  10. Constitutional Law — Public Use Courts decline to second-guess a legislature's considered judgments about the efficacy of its development plan or its determinations as to what lands it needs to acquire to effectuate the project; the choice of the boundary line and the size of the project area are not for the courts, and the amount and character of land to be taken rest in the discretion of the legislative branch. Berman, 348 U.S. at 35–36
  11. Constitutional Law — Public Use Review under the Public Use Clause is deferential and akin to rational-basis review: a taking survives so long as its purpose is legitimate and the legislature rationally could have believed the means would promote that objective, and empirical debates over the wisdom of takings, like debates over other socioeconomic legislation, are not to be carried out in the federal courts. Midkiff, 467 U.S. at 241–243; Monsanto, 467 U.S. at 1015 & n.18
  12. Constitutional Law — Public Use The Court rejects a requirement that, for economic development takings, there be a "reasonable certainty" that the expected public benefits will actually accrue; such a requirement would represent a greater departure from precedent, and a court need not make a specific factual determination whether a condemnation will accomplish its objectives. Midkiff, 467 U.S. at 242; Boston & Maine Corp., 503 U.S. at 422–423
  13. Constitutional Law — Public Use A constitutional rule postponing judicial approval of every condemnation until the likelihood of the plan's success had been assured would significantly impede the successful consummation of many comprehensive redevelopment plans, especially where orderly implementation requires all interested parties' legal rights to be established before new construction can commence.
  14. Constitutional Law — Judicial Review Courts apply meaningful rational-basis review under the Public Use Clause and must not treat economic development takings as per se or presumptively invalid: a court should treat a plausible accusation of impermissible favoritism to private parties as serious and review the record to determine whether it has merit, proceeding with the presumption that the government's actions were reasonable and intended to serve a public purpose. Berman, 348 U.S. 26; Midkiff, 467 U.S. 229
  15. Constitutional Law — Judicial Review A court applying rational-basis review under the Public Use Clause should strike down a taking that, by a clear showing, is intended to favor a particular private party with only incidental or pretextual public benefits; the Public Use Clause would be merely hortatory if the political branches were the sole arbiters of the public-private distinction, and an external judicial check, however limited, is necessary if the constraint on government power is to retain meaning. Cleburne v. Cleburne Living Center, Inc., 473 U.S. 432, 446–447, 450 (1985); Department of Agriculture v. Moreno, 413 U.S. 528, 533–536 (1973); Cincinnati v. Vester, 281 U.S. 439, 446 (1930)
  16. Constitutional Law — Eminent Domain — State Sovereignty Nothing in the federal Constitution precludes a State from placing further restrictions on its exercise of the takings power; many States impose "public use" requirements stricter than the federal baseline, by state constitutional law or by eminent domain statutes limiting the grounds for takings.
  17. Constitutional Law — Public Use The public purpose of a taking is judged by reference to the property's future use rather than its past use, so a taking need not eliminate a harmful existing use to serve a public purpose; the public purposes upheld in prior cases rested not on the harmful character of the property's past use but on a private party's future use of concededly nonharmful property that was taken. U.S. Const. amend. V; Berman, 348 U.S. 26; Strickley, 200 U.S. 527; Monsanto, 467 U.S. 986
  18. Constitutional Law — Public Use The reasoning of Berman and Midkiff does not support limiting economic development takings to cases where the initial taking eliminates some harmful property use; those decisions embraced the broader interpretation of public use, and their references equating the police power with the public use requirement were not necessary to their specific holdings. Berman, 348 U.S. at 32–33; Midkiff, 467 U.S. at 240
  19. Constitutional Law — Public Use The government's pursuit of a public purpose will often benefit individual private parties, as where property is leased or sold to private developers for redevelopment; such incidental benefit does not render a taking unconstitutional, and public ownership is not the sole method of promoting the public purposes of community redevelopment. Berman, 348 U.S. at 33–34; Monsanto, 467 U.S. at 1014
  20. Constitutional Law — Public Use The possibility that the takings power may be abused is not a sufficient reason to deny the power, nor do hypothetical exercises of government power warrant crafting an artificial restriction on the concept of public use; such hypotheticals can be confronted if and when they arise. Calder v. Bull, 3 Dall. 386, 400 (1798)
  21. Constitutional Law — Public Use A taking of property currently put to ordinary private use and transferred to new ordinary private use is not per se or presumptively invalid merely because the new use is predicted to generate secondary public benefits; a broad per se rule or strong presumption of invalidity would improperly prohibit many takings whose purpose and expected effect confer substantial public benefits without offending the Public Use Clause. Berman, 348 U.S. 26; Midkiff, 467 U.S. 229
  22. Constitutional Law — Public Use A heightened standard of review may be appropriate for a narrowly drawn category of takings carrying an acute risk of undetected impermissible favoritism to private parties, but no departure from Berman and Midkiff is warranted where the taking occurred under a comprehensive development plan addressing serious citywide economic distress, the projected benefits are not de minimis, the identities of most private beneficiaries were unknown when the plan was formulated, and elaborate procedures facilitated review of the record and inquiry into the government's purposes. Cf. Eastern Enterprises v. Apfel, 524 U.S. 498, 549–550 (1998) (Kennedy, J., concurring in judgment and dissenting in part)
  23. Constitutional Law — Public Use Courts may presume an impermissible private purpose where transfers are so suspicious, procedures so prone to abuse, or purported public benefits so trivial or implausible as to warrant such a presumption, but transfers under a comprehensive plan are not to be treated as adopted to benefit a particular class of identifiable individuals absent evidence of an illegitimate purpose. Midkiff, 467 U.S. at 245
  24. Constitutional Law — Public Use The necessity and wisdom of using eminent domain to promote economic development are matters of legitimate public debate, but a court's authority extends only to determining whether proposed condemnations are for a "public use" within the meaning of the Fifth Amendment. U.S. Const. amend. V; Calder v. Bull, 3 Dall. 386, 388 (1798)
  25. Municipal Law — Economic Development A municipal development statute may authorize a city council to designate a development agent to implement an approved development plan, and may declare that the taking of land, including developed land, as part of an economic development project is a "public use" and in the "public interest." Conn. Gen. Stat. § 8-186 et seq., §§ 8-188, 8-193 (2005)
  26. Constitutional Law — Public Use A taking satisfies the public use requirement where condemnation is undertaken pursuant to a carefully considered development plan whose public benefits do not redound to the advantage of private citizens one or another but rather provide appreciable benefits to the community as a whole. Berman, 348 U.S. 26; Midkiff, 467 U.S. 229