11/10/2005
CONTACT: Melissa Sharp, (202) 554-9000
WASHINGTON, D.C. — The National Federation of Independent Business Legal Foundation filed an amicus brief yesterday on behalf of small businesses and homeowners in Norwood, Ohio who are in danger of losing their private property to a private developer if the Ohio Supreme Court does not overturn an appeals court ruling.
In the case now before the Ohio Supreme Court, the city of Norwood wants to turn private properties over to a developer, Jeffery Anderson, who plans on building chain stores, a condominium development and an office complex. Before turning to the city for assistance, Anderson tried to buy the properties from the current owners. When they refused to sell, Anderson sought out the city’s assistance and had the city declare that the locality he wanted was “deteriorating.” Before Anderson approached the city government, the locality had no plans to redevelop. With this new “deteriorating” label, the city of Norwood was then able to transfer the title of the property to the developer.
The appeals court approved the city’s action, citing that the Ohio constitution does not forbid government takings, and said the only requirement a locality must meet before taking property is to produce a record demonstrating that a sound reasoning process had occurred.
“The city’s ‘deteriorating’ label placed on these properties is outrageous. These are mom and pop businesses and family homes, in fine condition, that just happen to be in the way of a developer’s dream to build more chain stores and condos,” said Karen Harned, executive director of NFIB’s Legal Foundation. “The city of Norwood abused its eminent domain authority. The takings clause in the U.S. Constitution and Ohio’s constitution was never intended to allow governments to take properties from private owners just to turn and sell these properties to other private entities.”
Due to this summer’s U.S. Supreme Court ruling in Kelo v. City of New London, eminent domain has become a hot issue around the country. However, eminent domain abuses have been occurring under the spotlight for years. The Institute for Justice, which is representing the property owners in this case, estimates that there were 10,000 actual or threatened private-to-private condemnations in the U.S. between 1998 and 2002. NFIB, in support of small business, has an aggressive action plan to combat eminent domain abuses which includes NFIB’s Legal Foundation monitoring eminent domain legal proceedings throughout the country. The Foundation searches for amicus opportunities to ensure that courts ruling on eminent domain issues are aware of how damaging improper eminent domain rulings are for small business.
“It’s not that easy for a small business to simply pick up and relocate. Their success and customer base is often enriched in their community. Their employees are part of the community. The money they receive for their property can not just buy a new business. Small-business owners that become victims of eminent domain abuse not only lose their property, but they often lose their business,” Harned said. “It is important for the court to hear how devastating the effect of eminent domain can be on small businesses.”
The case is City of Norwood v. Gamble et al.
The NFIB Legal Foundation is a 501(c)(3) organization created to protect the rights of America's small-business owners by providing advisory material on legal issues and by ensuring that the voice of small business is heard in the nation's courts. The National Federation of Independent Business represents the consensus views of its 600,000 members in Washington, D.C., and all 50 state capitals.
