Kelo v. City of New London

The Court held that economic development qualifies as a public use under the Takings Clause.

Overview

New London condemned Susette Kelo's little pink house as part of a private redevelopment project intended to create jobs and tax revenue. Justice Stevens, for a 5-4 majority, held that economic development is a public use entitled to legislative deference, following mid-century urban redevelopment precedent. Justice O'Connor's dissent warned that all private property was now vulnerable to transfer to another private party with more money. The backlash produced stricter eminent domain laws in over forty states, though the federal constitutional rule stands. Kelo remains the defining modern takings case.