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Eminent domain: A real concern beyond fiction

Insurance Rate Reporter / 5 hours ago

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Debbie Neuberger SVP, Customer Care | realtors.com

In the popular television series "Yellowstone," the fictional Dutton family faces the threat of losing their Montana ranch due to eminent domain. While this is a dramatized scenario, eminent domain poses a real concern for many Americans.

Attorney Eric Teusink from Williams Teusink in Decatur, GA, explains that "eminent domain is a power vested in federal, state, and local governments, as well as certain utilities, to take private property for public use." It is typically utilized for public projects like highways and government buildings.

The Fifth Amendment protects private property from being seized without just compensation but allows for eminent domain under the term "public use." However, interpretations of what constitutes public use can vary. Jennifer Polovetsky, an attorney at Duane Morris LLP specializing in eminent domain cases, notes that in New York, this definition includes alleviating urban blight.

A notable case illustrating this issue occurred in 2005 when Susette Kelo and other property owners sued New London, CT. They argued against the city's seizure of private land for economic redevelopment. The Supreme Court ruled against them, stating that combating urban blight was a valid public purpose.

Polovetsky mentions that most homeowners are unlikely to lose their entire properties since such projects usually target commercial areas. Yet she acknowledges instances where private homes have been acquired through eminent domain.

An example is Mika Race's experience in Pigeon Forge, TN. Her investment property was taken via eminent domain in June 2024 to make way for road extension work. Race remains engaged in a legal dispute over compensation while sharing her story on TikTok.

Teusink points out that eminent domain has historical roots predating the United States and originates from English Common Law. He emphasizes its necessity for infrastructure development but recognizes it can be distressing when one's own property is involved.

For those facing potential property seizure through eminent domain, consulting with an attorney promptly is crucial. Polovetsky advises seeking legal counsel upon receiving notice and negotiating any financial offers received from the government. According to Teusink's experience, better compensation than initially offered by authorities may be achievable.

While challenging governmental actions regarding eminent domain remains an option for affected individuals or businesses—success rates are low; Polovetsky indicates about 99% of challenges fail within New York due to broad interpretations favoring these powers.

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