Blue v. City of Los Angeles--Eminent Domain Strikes another Small Business

California Supreme Court

The Los Angeles City Council approved a $325 million redevelopment project at the intersection of Hollywood and Vine, including a fancy new 296-room W Hotel. Robert and Betty Blue's business, Bernard Luggage, which has served the neighborhood for 55 years, will be displaced based on its designation as a blighted property. The Blues are now asking the California Supreme Court to review the council's decision, arguing in part that there is insufficient evidence to support the blight designation. The issue is whether the Los Angeles City Council and Redevelopment Agency abused its discretion in finding that the condemned area was blighted. The case once again highlights the devastating effect eminent domain can have on small business.

Status: DECIDED. Amicus brief filed in support of Robert and Betty Blue June 16, 2006. The California Supreme Court rejected the petition to review the case.