Real Estate & Property Law

US House Passes Bill to Overturn Kelo, Allow Suits for Misuse of Eminent Domain

The U.S. House of Representatives has passed a bill that restricts use of eminent domain and allows lawsuits for misuse of the procedure.

The bill would in effect overturn the 2005 U.S. Supreme Court decision of Kelo v. City of New London, report the The Hill’s Floor Action Blog and the Associated Press. Kelo allowed a city to seize property for economic development by a private developer. Its author, now retired Justice John Paul Stevens, has said the opinion is his most unpopular.

The bill that passed the House on Tuesday would bar the federal government from using eminent domain for economic development, and would withhold federal funding to states unless they comply with the same standard, AP says. The bill also allows suits by property owners for violations of the new rule.

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