Kelo v. City of New London

Kelo v. City of New London, 545 U.S. 469 (2005), is a landmark decision of the United States Supreme Court.

The City of New London, Connecticut approved a development plan that would revitalize the economically distressed city. The plan required the condemnation of private homes, including Susette Kelo’s, which would be transferred to private developers for economic development purposes. Kelo argued that the taking violated the ‘public use’ requirement of the Fifth Amendment.

Significance

Justice Stevens’ 5-4 opinion upheld the taking, holding that the ‘public use’ requirement is satisfied when the government’s action is rationally related to a legitimate public purpose, including economic development. The Court deferred to the city’s determination that the development would create jobs and increase tax revenue. The decision was enormously controversial and prompted legislative responses in most states to restrict eminent domain for economic development. Justice O’Connor’s dissent argued that ‘all private property is now vulnerable to being taken and transferred to another private owner.’

Category

US Federal Case Law