Dean's World

Defending the liberal tradition in history, science, and philosophy.

Property Rights Assault?

I've long considered eminent domain abuse to be a problem, but from everything I've read such abuses go back well over a century in this country. The stories of the abuses done by and for the railroads in the 1800s are epic, for example. This why I've been a little bemused by the angry responses to yesterday's Supreme Court decision giving broad authority to local governments to force people to sell their property. Bryan has a very thorough roundup of reactions.

I do notice that, once again, the reviled "conservatives" on the court are the dissenters who tried to stand up for everyday people. Interesting. It's not surprising if you know anything about their judicial philosophies, though.

By the way, you can read both the decision and the dissenting opinions right here. I found the dissenting opinions clearer and easier to understand.

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Scott Ammerman (mail):
O'Conner called them out. Not Scalia... not Thomas... O'Connor! Drop the Flag Burning amendment, push a "Don't steal our land and give it to someone else" amendment!
6.24.2005 3:33am
Ken McCracken (mail) (www):
The real low point in condemnation cases was the Poletown case from the early 80's, I believe it was.

GM lobbied hard to level an entire neighborhood of ethnic Poles in Detroit in order to build a new manufacturing plant, with all sorts of promises of jobs, improved tax base, etc.

Eventually, GM hit the skids and closed the plant down.

That was really the case that made the one handed down yesterday possible.
6.24.2005 4:25am
Dave in FL (mail):
How saddened I am by this.

I can imagine that there came a defining moment in the lives of our colonialist fore bearers of the 1760’s and 1770’s when they said, “I can no longer tolerate this and consider myself a free citizen.” This is just such a moment for me.

T. Jefferson said that: “The tree of liberty must occasionally be refreshed with the blood of patriots and tyrants.” How true.
6.24.2005 11:15am
Robert Speirs (mail) (www):
The only consolation I can find here is that the thieves who took people's homes using government power will overreach themselves and be stuck with vacant buildings. Ayn Rand often refers to the difference between the corrupt Union Pacific and Southern Pacific rail lines and James J. Hill's Great Northern line, built entirely without government land grants or takings. Hill made money. The others eventually went bust. But then they called on their political connections to bail them out. Government actions in general, however, usually achieve the opposite of their intended purposes.
6.24.2005 11:57am
Dan the Highway guy (mail) (www):
And even more incredibly, just last year the Michigan Supreme Court ruled that the Poletown decision was wrong and illegal. Yet this new decision continues in the trend of statist power. It's just an atrocious direction for any country to be going in.
6.24.2005 12:34pm
Robert B.:
The interesting thing about this decision is that the judges who supported it are considered the "liberals" on the court.

You would think that a decision which gives the full power of the nation state (the same apparatus that Rudy Rummel or Edward Luttwak might argue allows democide) to a systemic of endemic corruption between local politicians, and their largest contributors, wealthy property developers, would be opposed by anyone to the left of General Franco. Maybe I should have looked at Kos before posting.

John Sayles has a wonderful film, "Silver City", which is a depressing and scathing indictment of this process, but most people consider him a leftie.

Maybe I'm a little naive, but it seems that a necessary and sufficient condition to invoke this sort of draconian land grab would be that:
1. At least 80 percent of the equity of the project should be owned by residents of the town.
2. At least 80 percent of residents of the town own at least one share.
3. No shareholder controls more than 20 percent of the equity, directly or indirectly.

Then you could just argue from the facts on the ground that it is, by definition, in the public interest.
6.24.2005 12:56pm
Robert West (mail) (www):
The thing that surprises me most about the decision - or, rather the dissents - is that the issue really being debated isn't property rights at all; it is how much deference the courts should give the legislative branch when it makes determinations regarding economic policy. The fundamental issue of disagreement seems to be whether or not the judiciary should defer to the legislature (of Connecticut, in this case) in its determination that these means are appropriate to the desired ends.

The reason this is odd is that the conservatives on the court - both in this case and in Raich - seem to be in favor of a higher level of judicial scrutiny and less deference to the legislature.

Where's the line between that and so-called judicial activism?
6.24.2005 1:03pm
Steven Malcolm Anderson (www):
I'll just say for now that I'm mad as Hell. This Cox &Forkum cartoon says it all for me. The rest of my comments and analyses on this atrocious decision are here in Eric Scheie's Classical Values.

Mighty Casey (Justice Kennedy) has struck out and there is no joy in Mudville. Justice Thomas for Chief Justice.
6.24.2005 1:09pm
Michelle Dulak Thomson (mail):
Robert West,

No, the question is who gets to interpret the Bill of Rights. The clause in the Fifth Amendment says "nor shall private property be taken for public use, without just compensation." Technically speaking, I suppose you can read that as saying that you can take all the private property you like for private use, without any compensation at all; but obviously no one reads it that way. The question here is what counts as "public use," and there are ancient precedents to the effect that handing A's property over to B (A and B both being private parties) is not generally "public use." The exceptions before this case were "common carriers," railways mostly. Pfizer is not a public conveyance.

But, again, this is a case of Constitutional interpretation. If you let the States each interpret the Takings Clause to their own tastes, are you prepared to let them do the same with the First Amendment? Or the Second, for that matter? It would make for a rather interesting legal environment.
6.24.2005 1:21pm
Bithead (mail) (www):
Do the words "Urban renewal" ring any bells?
6.24.2005 1:50pm
John_B (mail) (www):
"Urban renewal" was restricted to what is termed "blighted neighborhoods", i.e., rundown housing, substandard everything. The CT case--as well as a couple now in motion in FL--are not concerned with blighted neighborhoods, just ones that provide less tax revenue than potential alternatives.

Now would be a good time to write your congress-critter and express your feelings about proposing a new law that would prevent this sort of thing. You can go to the mat, if you feel strongly enough, and make this a "do it or else you're out of office" thing. A few hundred letters like that will amazingly focus an elected official's attention.
6.24.2005 1:57pm
Masked Menace (mail):
I wonder how many on the left will see this as just another gov't gift to the wealthy. Something the left claims is a rightest position despite all the liberals on the court supporting it.

The position that you only own property in as much as the gov't can't find a better use for it is Socialism 101.

In fact taking people's property and giving it to gov't supporters has been a favorite weapon of punishment by communists, socialists, and dictators for ages.
6.24.2005 2:02pm
Michelle Dulak Thomson (mail):
Masked Menace,

The response from the Left to this decision has been underwhelming, to say the least. You'd think uprooting family homes so that Pfizer could build over the land, and calling that "public use," would generate a little outrage, but nope. (Why do I think the reaction would be different if Thomas, Scalia, Rehnquist, and O'Connor had voted the other way?)
6.24.2005 2:37pm
Robert West (mail) (www):
Michelle - perhaps *what the question is* is part of what's in dispute? Nevertheless, I think my claim is well-grounded. Consider these four quotes from the opinion and the dissents:

The majority opinion:

"The disposition of this case therefore turns on the question fo whether the City's development plan serves a 'public purpose'. Without exception, our cases have defined that concept broadly, reflecting our longstanding policy of deference to legislative judgements in this field."

"Those who govern the City were not cofnronted with the need to remove blight in the Fort Trumbull area, but their determination that the area was sufficiently distressed to justify a program of economic rejuvenation is entitled to our deference."

O'Connor's dissent:

"We give considerable deference to legislatures' determinations about what governmental activities will advantage the public. But were the political branches the sole arbiters of the public-private distinction, the Public Use Clause would amount to little more than hortatory fluff."

Thomas' dissent
"There is no justification, however, for affording almost insurmountable deference to legislative conclusions that a use serves a 'public use'."

It's fairly clear from these that the degree of deference to legislative determination is the major point of contention between the dissent and the majority. What's particularly interesting about that is that this same issue was *also* a significant point of contention between the majority and the dissenters in Raich. Other recent cases show this to be a trend: the "conservatives", particularly Thomas, often feel that the courts give the legislature too much deference in the realm of economic regulation and property rights, and that the Court should exercise more power to overrule the legislature.
6.24.2005 3:56pm
Robert West (mail) (www):
Masked Menace - asking someone whether they think something is *legal* is not the same thing as asking them whether it is *right*; I see nothing in the majority opinion which endorses urban renewal as a political matter.
6.24.2005 3:57pm
Masked Menace (mail):
Robert,

I guess then we shouldn't worry about repeals of the 1st ammendment. It wouldn't endorse gov't censorship after all.

Also, a repeal of the 2nd ammendment wouldn't endorse disarming the public, so nothing to worry about there either.

The erosion of property rights is not sufficient for socialism, but it is necessary.


BK
6.24.2005 5:18pm
Scott Kirwin (mail) (www):
At first I pretty much ignored this topic, but the more I learned about it the madder I got.

So now the government is in the real estate appraisal and property repo business? "Developer A wants to replace Building X with Building Y and has a study which claims that the city will make more tax money if he does so."

What's ironic is that I was just mentioning to the Wife last week the importance of property rights in our history, and how that differentiated us from the Europe that our ancestors escaped from.

I guess SCOTUS is on its way to becoming SCOTEU.

Bastards.
6.24.2005 5:52pm
Michelle Dulak Thomson (mail):
Robert West,

Amazing things, those search functions. We can find every graf containing the word "deference" before you can spit!

Seriously, now,

If we're going to enforce (most of) the Bill of Rights against the states, as we have been doing for nearly a century, we presumably need some agreement on what it means. The Takings Clause can't mean something different state to state, any more than the Free Speech Clause can.

What's particularly interesting about that is that this same issue was *also* a significant point of contention between the majority and the dissenters in Raich. Other recent cases show this to be a trend: the "conservatives", particularly Thomas, often feel that the courts give the legislature too much deference in the realm of economic regulation and property rights, and that the Court should exercise more power to overrule the legislature.

Let me see if I'm understanding you rightly. Is Thomas's dissent in Raich supposed to be an instance of "the Court" seeking to overrule "the legislature"? Not the legislature of CA, anyway. (OK, this was a popular initiative, not a state law, but you see my point: so far as federalism is concerned, it was Thomas who in this case wanted to give "deference" to the self-governing citizens of a state.)
6.24.2005 5:58pm
Robert West (mail) (www):
Michelle - I used the search function to find the quotes, absolutely, but only after reading the decision; I was looking for quotes which backed up the impression I had formed while reading it. :)

My point is this: the disagreement between the majority opinion in New London and O'Connor's dissent seems to hinge on the degree to which the court should defer to the Legislature's judgement. (I'm leaving out Thomas' dissent, as it seems to be disagreeing more fundamentally about eminent domain in general). The majority seems to think that the Court ought to defer to the Legislature's judgement in almost any case, while O'Connor seems to think that this, in effect, makes the Court irrelevant.

I am not, at present, taking sides on that issue; I'm merely noting that it's ironic that the people who think that the court should be less deferential to the legislature are also the people most given to complaining about judicial activism.

My observation about Raich is that it's similar: the majority opinion is shot through with rhetoric about how it is important to defer to the Legislature (in this case, the Congress) in its determination that regulating the use of marijuana was necessary to the general public health scheme of drug regulation, and the dissenters were of the opinion that the Court could legitimately question that Congressional determination. Again, while federalism was involved, the crucial determinant seemed to be how much the court should defer to legislative judgement.
6.24.2005 6:18pm
Robert West (mail) (www):
Masked Menace - of course we should worry about such things. I never said that we shouldn't, nor even that we shouldn't worry about the fallout from New London.

I was responding - poorly - to this comment of yours:

"I wonder how many on the left will see this as just another gov't gift to the wealthy. Something the left claims is a rightest position despite all the liberals on the court supporting it. "

In particular, i am unconvinced of the legitimacy of your implied equivalence that liberals on the court saying that the government has the power to do such a thing constitutes liberals in general believing that it is something which sould be done.

In my experience, the left thinks that as a policy matter government gifts to the wealthy are a bad thing. But that doesn't mean they believe the state doesn't have the power to do it; merely that they think the state shouldn't do it.
6.24.2005 6:22pm
Tom Strong (mail):
Ann Althouse defends this ruling very ably here.

I still don't like it. But I'm becoming convinced that the problem here is the corruption of local governments, not eminent domain.
6.24.2005 7:13pm
Dean Esmay:
Federalists in general do not believe that the Constitution never trumps state and local control; they still believe in property rights, right to equal protection, and so on.

So yes it might seem a little ironic that in this case the federalists want to see the courts restricting the actions of a local government, but only because in their reading this is one area where, as in the case of, say, the equal protection clause, the Constitution pretty clearly sets a uniform law of the land.

On the other hand, I admit to my own ambivalence; people have been squawking over eminent domain abuses for two centuries now. This particular interpretation simply takes the position that "public use" is whatever your local elected officials want it to mean, and if you don't like it you do have an option here: it's called free speech and voting.
6.24.2005 7:22pm
Dean Esmay:
It's also worth mentioning that if you read the facts in the case, you find that a majority of the land owners in the area in question sold their property willingly. There were only a few holdouts willing to go to court to fight, mostly out of sentiment. The rest, apparently, were happy to take the money and run.

I also note that not a single thing in this decision means government may simply seize your property; they have to give you just compensation, which the courts pretty universally agree is the fair market value, and which in most cases means you'll get somewhat more than if you sold on the open market since most governments don't want to be dragged into court by having someone say you didn't pay a fair amount.
6.24.2005 7:31pm
Masked Menace (mail):
Perhaps I was not clear.

Given that liberals claim conservatives are the one who like the gov't giving gifts to the wealthy, it seems a little backward that it's the conservatives who say it's not legal and the liberals who are saying that it is.

BK

P.S. You are correct that there is not a 1:1 relationship between can and should, but given the socialist tendencies of todays left, I'd say theres a pretty good correlation on this issue.

P.P.S. Have a good weekend everybody.
6.24.2005 7:47pm
Michelle Dulak Thomson (mail):
Dean,

What is "fair market value" if your bit of land is the only thing standing between a corporation and its development project? Seriously. My impression is that "fair market value" is taken to be what a house would fetch in the total absence of a developer's serious desire for the land, with a small sop to prevent lawsuits, as you say.

I can't see anything in the majority opinion that would prevent a city from condemning any poor neighborhood and turning it over to a developer who'd build luxury homes on it — the "just compensation" being obviously gauged to the value of the land before it was redeveloped, not after. Great value to the city, of course, which gets a bunch of property-tax-paying wealthy citizens and loses a bunch of unprofitable poor ones. Count me among the people who think this is a devil's bargain.
6.24.2005 7:52pm
Robert West (mail) (www):
Dean - the irony isn't in the federalism issue; it's in the fact that people who otherwise complain about courts arrogating power to themselves are upset that the court is not arrogating power to itself. :)
6.24.2005 8:11pm
Tom Strong (mail):
This particular interpretation simply takes the position that "public use" is whatever your local elected officials want it to mean, and if you don't like it you do have an option here: it's called free speech and voting.

Yep.

You know what? I think I may run for City Council.

I recommend that others annoyed by the implications of this decision do the same.
6.24.2005 8:37pm
Robert West (mail) (www):
Tom - that's a good idea. That, and pushing for state laws to limit the power of municipalities. I don't know if I'll vote for Tom McClintock's proposal, but I think that's the right way to go about fixing the problems New London has introduced.
6.24.2005 8:46pm
Xrlq (mail) (www):
Dean - the irony isn't in the federalism issue; it's in the fact that people who otherwise complain about courts arrogating power to themselves are upset that the court is not arrogating power to itself.


Not really. Generally, when one complains about judicial activism, the complaint is not over the fact that the court struck a law down, but over the fact that it did so with no solid basis in law. On the other hand, when a statute violates the clear language of a constitutional provision - in the written constitution, that is - most of us would agree that in that case, courts are supposed to strike the law down. Refusing to enforce a constitutional provision that is there is no less lawless than "enforcing" a provision that is not. Both are commonly referred to as "judicial activism," although in the case of the former, "judicial inactivism" may be a more accurate phrase.
6.24.2005 9:26pm
Arnold Harris (mail):
I'm on the side of private property rights, and I am appalled by the US Supreme Court decision in favor of eminent domain applied to taking of private property from one land owner, for the benefit of another land owner.

But I think you will seeing a lot more of that. Tax revenues are down all across the US, as a result of a continuing and perhaps endless taxpayers revolt. The local governments which survive on these curtailed revenues will now be impelled toward freer use of eminent domain powers to get rid of low-taxable land uses and replace them with private land uses that generate a higher rate of tax return.

And in case you think otherwise, the lobbies that represent counties and municipalities in every state legislator speak a lot louder than many times their number of ordinary citizens.

In any case, the US Supreme Court has spoken, and barring a constitutional admendment that addresses this issue, their is the final word.

Arnold Harris
Mount Horeb WI
6.24.2005 10:37pm
John_B (mail) (www):
I don't like the court's opinion at all, but I can see how they came to it.

The way to solve the problem of misuse of eminent domain is to hold your elected representatives liable and to account.

Every American here has a congress person and a senator at the federal level, and the equivalent at the state level. You also have city and county officials. Every one of these people is elected to the position.

For under $5 in postage--less if you pick up the phone or use e-mail--you can make your feelings very clear. And when the next election comes around, you'll know whether or not your officials were listening to you or not.

How about some proposed texts of letters to elected officials, instead of bitching about the court?
6.24.2005 11:26pm
Arnold Harris (mail):
John B, your intent is correct but the fundamental matter of American property rights, considering the eminent domain decision of a 5-4 majority of the United States Supreme Court, cannot now be rectified by anything short of an amendment to the United States Constitution.

And the problem with expecting any such amendment, now or in the future, is the state legislatures that make the yes or no decisions on any such action, cannot go against the will of their constituent local government units. For all these local governments -- counties, municipalities, school districts, fire districts, emergency medical districts -- revenue from property taxes literally are the sustainance than enable them to operate.

The legislatures and local boards of supervisors and commissioners of these states and local governments, as elected officials, cannot long survive demands of their voters to reduce property taxes for individual properties. Therefore, they will find they have little option but to find means to continually expand their local tax bases.

And the means to expand their local tax bases come from comparatively large industrial, commercial and residential projects provide a much more significant taxes than small, old single family dwelling units.

Thus, expanded use of eminent domain is here to stay.

Arnold Harris
Mount Horeb WI
6.25.2005 9:48am
DSmith (mail) (www):
Dean, I don't want to go all "Godwin's Law" on this, so please, please, please don't take this the wrong way. :) But, for a moment, think about how the notion of "the State, by due process, seizes the lands or property of certain persons" has been used by totalitarian governments and even in genocides. Think about what has been in the news from Africa in recent weeks. No, I am NOT saying what is going on in America is equivalent in any way, shape or form. What I'm asking is, what's the difference?

Is majority approval and "due process", by whatever local standards of due process apply, all it takes for it to be A-OK? If it's not OK under a totalitarian state, does democracy of some form wave the magic wand? As long as there's a vote and you get one vote, is that all it takes to allow a vote that your property should be taken from you and redistributed to others? From each according to his ability, to each according to his needs, as long as we have a vote first?

Again, I'm not saying this to throw bombs or make inappropriate or over-the-top comparisons. Lord knows there are enough of those in the air lately. :) All I know is, I think about the basic idea of this kind of taking, and I can't see how you can draw line. And yes, that means sometimes the majority is going to be inconvenienced by the minority. If it weren't so, we wouldn't need to call them "rights".

If you can show me how to draw that line, I'd be interested to hear it.
6.25.2005 4:52pm
Robert West (mail) (www):
Arnold - with all due respect, it seems to me that state constitutional limits like the one Mr. McClintock has proposed would be effective, at least in those jurisdictions which adopt it.
6.25.2005 9:17pm
Arnold Harris (mail):
RW, a state constitutional amendment can hardly survive contradicting an interpretation by the US Supreme Court of the US Constitution. In addition, the number of state legislatures that would initiate legislation needed to generate such state constitutional amendments, is questionable. At least in regard to the political considerations that I cited above.

Arnold Harris
Mount Horeb WI
6.26.2005 12:17am