January 7, 2003

By Pat Taylor for REALTOR Magazine Online

The Connecticut State Supreme Court is considering a landmark private property rights case concerning whether the government can use eminent domain to condemn private property in order to give it to a private developer in the name of the public's interest.

The town of New London has plans to turn 90 residential acres into office space and other private development anchored by Pfizer Inc.'s recently opened global development facility. The Fort Trumbull Project is designed not to eliminate blight but to promote economic development.

According to The Hartford Courant newspaper, New London officials and lawyers for the designated development agency -- the New London Development Corporation -- maintain that the tax revenues, employment opportunities, and enhanced access to the riverfront make the action a public use that justifies eminent domain.

The town has already seized 80 parcels, but 15 other property owners took the town to court. Earlier this year, a New London Superior Court judge gave what amounted to a split decision, ruling that the town could take some of the parcels, but not others.

The judge's ruling was appealed to the state Supreme Court, which heard arguments by both sides on Dec. 2. The Institute of Justice, a Washington, D.C. -- based nonprofit agency that fights government intervention, particularly in eminent domain cases -- is representing the property owners.

Scott Bullock, IJ senior attorney, says increasing the tax base isn't sufficient justification for eminent domain.

"This is dangerous because if it's upheld, the government could use the power of eminent domain anywhere, to take anybody's property. There have to be some clear limits on the use of eminent domain," he says.

Bullock said it'll probably be three to six months before the state Supreme Court issues a ruling. He says IJ is prepared to take the case all the way to the U.S. Supreme Court.

http://www.realtor.org/rmodaily.nsf/pages/News2003010704?OpenDocument