Bowers Development, LLC was under contract to purchase land in Utica, New York, planning to construct a medical office building. Central Utica Building, LLC, a business competitor to Bowers—asked the Oneida County Industrial Development Agency (“OCIDA”) to condemn the land so that Respondent could build a parking lot for a medical office building on adjoining property. Because Central Utica’s project might stimulate the local economy, and improve the community, OCIDA agreed to condemn the land and give it to Central Utica. Bowers objected to this private-to-private taking as beyond the scope of the Fifth Amendment’s Public Use Clause, which only allows the use of eminent domain to take property for a “public use.” A New York state court upheld the taking because it was “rationally related to a conceivable public purpose,” namely “mitigating parking and traffic congestion.” The Appellate Division based its ruling in part on Kelo v. City of New London, 545 U.S. (2005).

Kelo is one of the most severely flawed and much-criticized decisions in modern Supreme Court history. The Court’s holding that private “economic development” qualifies as a “public use” sufficient to authorize the use of eminent domain to take private property is deeply at odds with text and original meaning, and based on a variety of other errors. Justice John Paul Stevens, author of the Court’s majority opinion in Kelo, later admitted its reasoning was based, in part, on an “embarrassing to acknowledge” error in interpreting previous precedent. In addition, Kelo has generated widespread confusion in state and lower federal courts because of its lack of clarity on what qualifies as a “pretextual” taking that remains invalid even under the Court’s otherwise highly deferential approach to review of condemnations under the Public Use Clause.

Overruling Kelo would be consistent with the Supreme Court’s precedent on criteria for reversing previous decisions and would help resolve the confusion engendered by the ruling’s vague criteria for determining what qualifies as a pretextual taking. The Cato Institute and Professor Ilya Somin filed an amici brief asking the Supreme Court to grant the petition and overturn Kelo. However, even if the Court does not wish to reverse Kelo, it should still grant the petition to clarify the proper standard for pretextual takings.