eminent domain business definition
The legal right of government to take private property for the public purpose without consent of the property owner. Just compensation must be paid for property taken.
Case Study The U.S. Supreme Court's 2005 decision allowing a Connecticut city to seize private property for economic development by another private entity created a public firestorm, especially among conservatives. Essentially, the nation's highest court ruled that a private citizen does not have a constitutional right to resist government's taking of property via eminent domain, regardless of the reason. Rather, property owners must rely on state law for regulating the taking of private property for public purposes. The Supreme Court decision resulted in the introduction in several states of ballot measures intended to limit the use of eminent domain. Several states also took up the issue of the extent to which governments could restrict the use of land.
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