Eminent Domain

The inherent power of a government to take private property for public use, provided that the owner receives ‘just compensation’ as required by the Takings Clause of the Fifth Amendment.

Example: In Kelo v. City of New London (2005), the Supreme Court ruled that the government could use eminent domain to take private property and transfer it to a private developer for the purpose of ‘economic development,’ sparking widespread state-level legislative reforms.

Common misconception: Eminent domain can only be used for traditional public works like roads or schools. The definition of ‘public use’ has been broadly interpreted by courts to include ‘public purpose,’ such as urban renewal.