Kelo v. City of New London held that economic development can count as public use under the Fifth Amendment when part of a comprehensive redevelopment plan. The decision allowed the city’s takings, but it produced major backlash and state-level reforms limiting eminent domain.
This case should be written with displacement and local political power in view. It is not only about abstract property doctrine; it shows how redevelopment can burden homeowners and small communities while promising public economic gains.
Does taking private property for transfer to private developers as part of an economic-development plan satisfy the Fifth Amendment’s public-use requirement?
A city’s use of eminent domain to take private property as part of a comprehensive economic-development plan qualified as “public use” under the Fifth Amendment, even though the land would be transferred to private developers.
How the justices lined up in this decision.
Kelo triggered a national backlash because it showed how eminent domain can move property from people with less political power to projects backed by developers and local officials. The ruling did not require cities to use eminent domain for private development, and many states later restricted the practice by statute or constitutional amendment. It remains a key case for understanding property rights, redevelopment, displacement, and who gets to decide what counts as a public benefit.
Justice Stevens wrote the Court’s opinion, joined by Justices Kennedy, Souter, Ginsburg, and Breyer. Justice Kennedy concurred. Justice O’Connor dissented, joined by Chief Justice Rehnquist and Justices Scalia and Thomas. Justice Thomas also dissented separately.