Working Paper #540
The Kelo Decision
Pamela M. Loughman · Georgette Chapman Phillips
Political Risk United States Urban
The Supreme Court’s refusal to judicially limit the use of eminent domain for economic development while leaving the door open for states to legislatively restrict its use in Kelo v. City of New London has precipitated a flurry of legislation in many states seeking to eradicate this controversial mechanism for the government to take property pursuant to the takings clause of the Fifth Amendment. This article reviews Supreme Court opinions, considerations for the real estate industry and various legislative approaches proposed to curb eminent domain, as well as how these approaches have fared in different states.