Bay City exercises its power of eminent domain to acquire land for a public project, including part of a mass transit monorail and a traffic bypass. Bay City relocates more than 10,000 residents from the land and destroys their homes to begin the project. Cho's Sweet Treats is a bakery at the edge of the area. Cho's loses most of its business when the residents are moved. Cho's files a suit against Bay City, alleging that the city's acquisition of the land resulted in a taking of the bakery's property interest, entitling it to compensation. What is a taking? What might Cho's claim is its "property interest" to support this allegation? What is the court likely to rule? Why?

What will be an ideal response?


A taking occurs when government action permanently deprives a property owner of possession or use of property. Cho's could claim that its "property interest'' is an expectation that the area would remain residential. If it had, Cho's bakery might have continued to operate profitably. In other words, Cho's might argue that it had assumed its customer base would remain constant because of its expectation that the area would be used in the future as it had in the past. The court is most likely to hold that Bay City's acquisition of the land near Cho's did not cause a taking of the bakery's property interest so as to require the payment of compensation. Bay City did not take Cho's right to possess its property nor its right to use its property as it wanted. An expectation that a nearby area would remain residential is not a right. The right to control the use of the land in that area belongs to its owners. When Bay City acquired the land through its power of eminent domain, it acquired the right to control the use of the land.

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Business

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