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Sunday, June 26, 2005

Which Clause?: Locating the "Public Use" Requirement

Kelo | Posted by Marty Lederman at 11:03 PM

Walter Dellinger suggests that it is more appropriate to view the requirement of "public use" as emanating from the Due Process Clause of the Fourteenth Amendment, rather than from the Just Compensation Clause of the Fifth Amendment (as incorporated by the Fourteenth). I happen to think that Walter is probably correct -- but I wonder what follows from this, and whether there isn't a good reason that property-rights advocates should be reluctant to look to the Due Process Clause for greater protection.

As for the merits of Walter's suggestion: It's worth recalling that there is no language in the Fifth Amendment (or anywhere else in the Constitution) that expressly requires that "takings" of property be for a "public use" or a "public purpose." The Fifth Amendment merely provides that takings that are "for public use" must be (justly) compensated. It might be fair to read this language as resting on an assumption that all takings are for public uses. This was, for instance, Justice Holmes's understanding in Mahon, where he wrote that the “protection of private property in the Fifth Amendment presupposes that it is wanted for public use, but provides that it shall not be taken for such use without compensation.” 260 U.S. at 415. However, it's not fair, I think, for a plain-meaning or original-intent constitutionalist [note: I'm not one] to derive a prohibition on non-public-use takings from the Just Compensation Clause. To be sure, Justice Thomas argues in his Kelo dissent that there is an "express" public-use limitation in the Fifth Amendment itself, relying principally on the theory that if the words "for public use" did not impose a distinct requirement, they would be surplusage. But I'm doubtful: As Jed Rubenfeld has explained, perhaps the words "for public use" were included in order to indicate that compensation is due when the public uses the "taken" property (in the sense of affirmatively exploiting some productive attribute of private property for a particular state-dictated service, in a manner “approach[ing] a taking-over or conscription of the relevant property for the mandated use," 102 Yale L.J. at 1150), but not when the public (i.e., the state) does something other than using the property, such as destroying it (see, e.g., Caltex; Miller v. Schoene) or condemning it or requiring that it lie fallow (see, e.g., Mugler; Central Eureka Mining Co.).

In any event, Ilya is absolutely correct to note that in the late-Nineteenth and early-Twentieth Centuries, the Court derived the "public use" requirement not from the Fifth Amendment's words (the Court not yet having recognized the Fifth Amendment as "incorporated" against the states), but instead from principles of due process (see, e.g., Missouri Pac. Ry. v. Nebraska; Thompson v. Consolidated Gas), or even from pre-constitutional postulates, such as Justice Chase's famous "take from A to give to B" dictum in Calder v. Bull. (See generally Mark Graber, “Naked Land Transfers and American Constitutional Development,” 53 Vand. L. Rev. 71 (2000) (historical survey of nontextual constitutional prohibition on transfers of land from “A” to “B”); John V. Orth, “Taking From A and Giving to B: Substantive Due Process and the Case of the Shifting Paradigm,” 14 Const. Comment. 337, 339, 344 (1997) (noting that in the heyday of laissez-faire, “taking from A and giving to B” became the prime shorthand to describe what was forbidden by “substantive due process”; but that after the demise of Lochner, such a “simple paradigm[]” became an “embarrassment[] as legal discourse”).)

It's notable, in this regard, that Justice O'Connor does not begin her Kelo dissent with the words of the Constitution, but instead with the famous Calder v. Bull dictum -- a dictum that "merely" indicates that because it is against "all reason and justice" to take from A and give to B, courts should not presume that legislatures have been given such powers or that legislatures have done any such thing. Of course, that notion -- that legislatures have not been afforded the power to effect transfers of property from A to B -- has been anachronistic in our legal system for quite some time, and is almost unrecognizable after enactment of the 16th Amendment and the development of the modern, redistributive state. But even if one agrees with Justice Chase that legislatures have not been afforded the power to effect some sorts of transfers to private parties, and even if one concludes that this absence of power isn't simply a matter of state law, but is also reflected in the federal Constitution, I agree with Walter that it is a matter within the purview of the Due Process Clause, which prohibits the rare "naked transfers" that cannot be explained by any rationale other than the desire to benefit discrete private parties at the expense of others.

But what would follow from this shift to the Due Process Clause? After all, under that clause, economic regulation is ordinarily subject to the deferential rational-basis test, which is precisely the test the Court did employ in Berman and Midkiff. As Justice Kennedy notes in his concurrence, the government does not always win: regulation of property is unconstitutional if it is "clearly intended to injure a particular class of private parties, with only incidental or pretextual public justifications." See also note 17 of the Stevens opinion, citing the "class of one" equal protection case Village of Willowbrook v. Olech. But the scrutiny the Court applies under the Due Process Clause is no more rigorous than the scrutiny applied in the modern public-use cases, including Kelo. Therefore, although I agree with Walter that the Due Process Clause is the proper "tool for the job," I wonder why he thinks the outcomes of the job might be different if only the Court were to use the appropriate tool.


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Comments

The standard of having the government "prove" the necessity of the public use for which private property is taken would, in theory, satisfy the dilemma of "permissive reading" of that clause to meet both Constitutional tests of "due process and public use." The fact that an arbitrary taking may be supported even with just compensation is to stretch the 5th Amendemet of the Constitution beyond its intent of the protection of private property. The permissive reading and the interpretations of recent years permits arbitrary and subjective action by government to do such takings, many of which are subject to undervaluation rather than overvaluation to prevent government from the arbitrary exercise of its eminent domain rights. If private property is unfairly and deceptively undervalued, the government (including its advantaged affiliates, if any) are seduced by potential gains that would not otherwise be available if the tests of "just compensation" are not met. The compounded advantage for government against private property owners is that used permissively, low valuations and due process violations produce enormous profits where few should be available encouraging takings.

Posted by: Pat R. at June 29, 2005 10:18 AM


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