Beruflich Dokumente
Kultur Dokumente
INSIDE eminent domain clause in situations when the “use” is largely commercial.1 The case
is of primary importance to all private landowners, urban as well as rural.
ISSUES
write-off of certain tax preferences. 69 Fed. Reg. 76614 (Dec. 22, 2004).
BIOTERRORISM. The APHIS has adopted as final regulations governing the
possession, use, and transfer of biological agents and toxins that have been deter-
mined to have the potential to pose a severe threat to public health and safety, to
animal health, to plant health, or to animal or plant products. 70 Fed. Reg. 13241 (March
• Renewable Energy and 18, 2005).
Energy Efficiency CONSERVATION SECURITY PROGRAM. The CCC has adopted as final regula-
tions for administering the Conservation Security Program which provides financial
Program
and technical assistance to agricultural producers who, in accordance with certain
requirements, conserve and improve the quality of soil, water, air, energy, plant and
animal life, and support other conservation activities. 70 Fed. Reg. 15201 (March 25,
2005).
CORPORATIONS
REORGANIZATIONS. The IRS has adopted as final regulations governing
the requirements for meeting the requirement of continuity of interest (COI) for
Cont. on page 2
represents the first time in 20 years that in question was to improve areas of Wash- How is the Supreme Court likely to rule
the Supreme Court agreed to hear a case ington that were “injurious to the public in Kelo?
involving the question of whether a “pub- health, safety, morals, and welfare” of the Past precedent makes it likely that the
lic use” exists when private property is community. The landowners, however, Court will approve New London’s use of
condemned and transferred to private argued that their specific properties nei- eminent domain.15 However, if the state is
developers and long-term tenants in an ther imperiled health or safety nor con- allowed to take property for the purpose
area struggling economically. Historically, tributed to the making of a slum, and that of economic development (or delegate
the “public use” requirement operated as the project amounted to “taking from one the power to a private entity), a significant
a major constraint on government action. businessman for the benefit of another question is raised as to whether any pur-
For many years, the requirement was businessman.”11 Based on the general pose would not constitute a valid public
understood to mean that if property was principle of judicial deference to legisla- use. Consequently, if the U.S. Supreme
to be taken, it was necessary that it be tive acts, the Court held that the legisla- Court upholds the Connecticut Supreme
used by the public – the fact that the taking ture was free to define the means by which Court’s opinion, the opinion could be seen
was “beneficial” was not enough. Eventu- it attained its valid purpose, and noted that as allowing limitless government intru-
ally, however, courts concluded that a ruling otherwise would harm integrated sion on the right to own private property.
wide range of uses could serve the public plans for redevelopment. In the second That would be a significant concern for
even if the public did not, in fact, have case, Hawaii Housing Authority v. Midkiff,12 private landowners, particularly those
possession.8 Indeed, so many exceptions the Court upheld Hawaii’s use of eminent owning tracts that have commercial de-
were eventually built into the general rule domain to take titles from landlords and velopment potential.
of “use by the public” that the rule itself resell them to tenants in an attempt to The state courts are deeply divided on
was abandoned.9 reduce the concentration of land owner- the issue. Recently, the Michigan Supreme
Two U.S. Supreme Court cases illus- ship resulting from Hawaii’s historic sys- Court16 ruled that a county could not use
trate the Court’s willingness to expan- tem of land oligopoly that deterred the eminent domain to condemn 19 parcels
sively define “public use.” In Berman v. normal functioning of the land market and for a new commercial center, and the facts
Parker,10 the Court upheld the District of forced many individual homeowners to of the case are very similar to the facts of
Columbia’s use of eminent domain to lease, rather than buy, the land under- Kelo.17 The Illinois Supreme Court has
develop slum areas for possible sale to neath their homes.13 The Court’s opinion reached a similar conclusion.18 Other
private interests. The purpose of the act confirmed the ability of a state to use courts have held otherwise, including the
eminent domain power to transfer prop- Kansas Supreme Court.19 To date, state
erty outright to a private party, so long as law has been construed in 11 states to
the “exercise of the eminent domain disallow such condemnations for lack of
power is rationally related to a conceiv- adequate public use.20 Conversely, state
able public purpose.”14 law has been construed in favor of devel-
Thus, the Court will grant a great deal of opers in six states.21
deference to state and local governmen-
VOL. 22, NO. 4, WHOLE NO. 257 March 2005
AALA Editor..........................Linda Grim McCormick tal bodies using eminent domain for pur- Conclusion
poses that are legitimately related to the In any event, the Kelo2 case is critical for
2816 C.R. 163, Alvin, TX 77511
Phone: (281) 388-0155
protection of the public. While economic private property ownership in the United
E-mail: aglawupdate@ev1.net development is not as important as pro- States. Many farm groups, private prop-
tecting the public health, safety, morals erty advocacy groups and developers are
Contributing Editors: Roger A. McEowen, Ames, IA; Robert
Achenbach, Eugene, OR. and welfare, the Court will defer to a state anxiously waiting the Court’s opinion,
legislature (or even a city council) if the which is anticipated by the end of June.
For AALA membership information, contact Robert
Achenbach, Interim Executive Director, AALA, P.O. Box condemnation of property is rationally --Roger A. McEowen, Associate Professor
2025, Eugene, OR 97405. Phone 541-485-1090. E-mail related to a legitimate purpose of govern- of Agricultural Law, Iowa State University,
RobertA@aglaw-assn.org.
ment. Ames, Iowa
Agricultural Law Update is published by the American Continued on page 7
Agricultural Law Association, Publication office: County
Line Printing, Inc. 6292 NE 14th Street, Des Moines, IA
50313. All rights reserved. First class postage paid at Des Federal Register/Cont. from page 1
Moines, IA 50313. purposes of the nonrecognition of gain or has adopted as final regulations imple-
This publication is designed to provide accurate and loss in a corporate reorganization. 70 Fed. menting the 2003-2004 Livestock Assis-
authoritative information in regard to the subject matter Reg. 9219 (Feb. 25, 2005). tance Program (LAP) as provided for by
covered. It is sold with the understanding that the
publisher is not engaged in rendering legal, accounting, or
REORGANIZATIONS. The IRS the Military Construction Appropriations
other professional service. If legal advice or other expert has issued proposed regulations which and Emergency Hurricane Supplemental
assistance is required, the services of a competent provide rules requiring the exchange (or, Appropriations Act of 2005. Under LAP,
professional should be sought.
in the case of I.R.C. § 332, a distribution) of assistance will be available to livestock
Views expressed herein are those of the individual net value for the nonrecognition rules of producers for either 2003 or 2004 grazing
authors and should not be interpreted as statements of
policy by the American Agricultural Law Association. subchapter C (I.R.C. §§ 351, 354, 361) to losses in a county that was designated as
apply to the transaction. 70 Fed. Reg. 11903 a primary disaster county by the Presi-
Letters and editorial contributions are welcome and
should be directed to Linda Grim McCormick, Editor, 2816
(March 10, 2005). dent or the Secretary of Agriculture after
C.R. 163, Alvin, TX 77511. DISASTER PROGRAMS. The CCC has January 1, 2003, for certain losses occur-
adopted as final regulations implement- ring through December 31, 2004. 70 Fed.
Copyright 2005 by American Agricultural Law
Association. No part of this newsletter may be reproduced ing portions of the Military Construction, Reg. 16392 (March 31, 2005).
or transmitted in any form or by any means, electronic or Appropriations and Emergency Hurricane EMERGING MARKETS PROGRAM.
mechanical, including photocopying, recording, or by any
information storage or retrieval system, without permission Supplemental Appropriations Act of 2005 The CCC has adopted as final regulations
in writing from the publisher. to authorize crop-loss disaster assistance implementing the Emerging Markets Pro-
for producers who suffered 2003, 2004, or gram authorized by Section 1542(d) of the
2005 crop losses caused by damaging Food, Agriculture, Conservation, and
weather and related conditions. 70 Fed. Trade Act of 1990. 70 Fed. Reg. 253 (Jan. 4,
Reg. 15725 (March 29, 2005). 2005).
DISASTER PROGRAMS. The CCC Cont. on p. 3
In Dow Agrosciences v. Bates,2 several Texas ments.12 FIFRA provides the federal gov- The Court returned to the issue of fed-
peanut farmers contended that their pea- ernment wide latitude to regulate pesti- eral preemption in Medtronic, Inc. v. Lohr,26
nut crops were damaged when a herbi- cides but authorizes states to play a role where it considered whether amendments
cide manufactured by Dow Agrosciences, as well. In particular, FIFRA provides that to the Food, Drug, and Cosmetics Act
LLC (Dow) was applied to their peanut “[a] State may regulate the sale or use of (FDCA)27 preempted state laws and pre-
crops. The farmers submitted demand any federally registered pesticide or de- cluded all common law damage claims
letters to Dow that threatened to sue Dow vice in the State, but only if and to the against manufacturers of a cardiac pace-
for false advertising, breach of warranty, extent the regulation does not permit any maker.28 The statutory provisions at issue
and fraudulent trade practices under the sale or use prohibited by this subchap- in Medtronic expressly prohibited states
Texas Deceptive Trade Practices Act. Dow ter.”13 It also provides that “[s]uch State from creating any requirement for medi-
responded by seeking a declaratory judg- shall not impose or continue in effect any cal devices that “is different from, or in
ment that, among other things, the farm- requirements for labeling or packaging in addition to, any requirement under this
ers’ claims were preempted by the Fed- addition to or different from those re- chapter to the device” and that “relates to
eral Insecticide, Fungicide, and Rodenti- quired under this subchapter.”14 Essen- the safety or effectiveness of the device
cide Act (FIFRA).3 The farmers filed a tially, this statutory language “gives states or to any other matter included in a re-
counterclaim against Dow for “negligence, the authority to regulate the use of pesti- quirement applicable to the device under
breach of implied and express warranties, cides more strictly, while denying states this subchapter.”29 The Court held that
fraud, fraud in the inducement, defective the power to regulate the labeling of such although states were prohibited under the
design, estoppel, and waiver.”4 The United pesticides either more or less strictly than FDCA amendments from regulating a
States District Court for the Northern Dis- the federal government.”15 device in a manner that conflicted with the
trict of Texas ruled that the farmers’ claims The issue arises as to whether state federal requirements for the device, states
were preempted by FIFRA because they common law tort claims are preempted possessed “the right to provide a tradi-
“constituted ‘requirements for labeling by FIFRA because the claims impose re- tional damages remedy for violations of
and packaging in addition to those re- quirements “in addition to or different” common-law duties when those duties
quired under’ FIFRA.”5 The farmers ap- from those imposed by the Environmen- parallel federal requirements.”30 It added
pealed the decision to the Fifth Circuit. tal Protection Agency (EPA), the federal that “[t]he presence of a damages rem-
The Fifth Circuit held that the farmers’ agency responsible for implementing edy does not amount to the additional or
claims were preempted by FIFRA be- FIFRA.16 The predominant view among different ‘requirement’ that is necessary
cause success on the claims would have state and federal courts is that all common under the statute; rather, it merely pro-
the “‘undeniable practical effect’ of induc- law tort claims that challenge the adequacy vides another reason for manufacturers
ing a manufacturer to alter the product or of pesticide labels are preempted by to comply with identical existing ‘require-
label to avoid liability.”6 The holding in FIFRA.17 In particular, state law claims for ments’ under federal law.”31
Bates is not altogether unusual but is sig- failure to warn, actual defective-label Neither Cipollone nor Medtronic directly
nificant because it is currently being re- claims, and claims for breach of express involved FIFRA but courts that have con-
viewed by the United States Supreme and implied warranties are preempted by sidered whether FIFRA preempted state
Court.7 FIFRA.18 Courts have expressly recog- law claims have nevertheless looked to
In light of the Supreme Court’s review nized, however, that not all state law claims these decisions for guidance.32 Most of
of Bates, this article discusses the FIFRA, are preempted by FIFRA.19 these courts “have ... continued to uphold
the evolution of courts’ views regarding FIFRA’s express preemption of state law
FIFRA preemption of state law claims,8 Evolution of courts’ views on FIFRA claims based on inadequate labeling”33 in
and the Fifth Circuit’s decision in Bates. preemption accordance with Cipollone. Since Cipollone,
The article also briefly discusses Hardin v. In Ferebee v. Chevron Chemical Co.,20 the at least nine federal circuit courts, includ-
BASF Corp.,9 the most recent federal cir- D.C. Circuit held, inter alia, that FIFRA did ing the Fifth Circuit in Bates, have held that
cuit court decision on FIFRA preemption. not preempt state law damage actions but “FIFRA expressly preempts state tort
Hardin relied on Bates to hold that several rather operated to preclude states from claims insofar as those claims would cre-
farmers’ state law claims against a herbi- directly mandating that EPA-approved ate additional or different labeling require-
cide manufacturer were preempted by labels be altered.21 Ferebee was the pre- ments from those imposed by FIFRA.”34
FIFRA because “a favorable outcome for vailing view for several years, with a sub-
... [the farmers] would induce, if not re- stantial majority of courts adopting its Dow Agrosciences v. Bates
quire, BASF to alter its label.”10 holding.22 In Bates, the Fifth Circuit held that state
Another view emerged, however, when law claims brought against Dow were pre-
FIFRA the United States District Court for the empted by FIFRA. The court explained
FIFRA regulates the use and distribu- Eastern District of Michigan held in that “FIFRA preempts state laws that ei-
tion of “pesticides”11 through comprehen- Fitzgerald v. Mallinckrodt23 that state com- ther directly or indirectly impose different
sive labeling and registration require- mon law claims that conflict with FIFRA labeling requirements” than those im-
were preempted.24 A few years later, the posed by the EPA.35 In a footnote it added
holdings set forth in Fitzgerald and its prog- the following: “For example, different re-
Harrison M. Pittman is a Staff Attorney and eny were cemented in Cipollone v. Liggett quirements may be imposed when a court
Research Assistant Professor of Law at the Group25 when the Supreme Court held in a authorizes a damage award against a
University of Arkansas School of Law’s Na- plurality decision that federal cigarette manufacturer that has the ‘undeniable
tional Agricultural Law Center, labeling regulations expressly preempted practical effect’ of inducing a manufac-
www.nationalaglawcenter.org. certain state laws brought against ciga- turer to alter the product or label to avoid
rette manufacturers, including state com- liability. It is this mandate that is fatal to
mon law claims. appellants’ argument.”36
Eminent domain/Cont. from page 2 quences less severe while still facilitating the redistribu- County from using eminent domain power to acquire land
1
Kelo, et al. v. City of New London, et al., 268 Conn. tion of fees simple. Under the Act’s condemnation for recreational purposes. The bill also amends existing
1, 843 A.2d 500 (2004), cert. granted, 125 S. Ct. 27 scheme, tenants living on single-family residential lots county home rule to provide that counties may not exempt
(2004). were entitled to ask the Hawaii Housing Authority to themselves from the law.
2
Id. condemn the property on which they lived. More 20
The 11 states are Arizona – Bailey v. Myers, 206 Ariz.
3
The announcement was expected to be a major recently, a local ordinance providing for the involuntary 224, 76 P.3d 898 (2003); Arkansas – City of Little Rock
economic boon to the city. The city’s economic condition fee conversion of condominiums, cooperatives housing, v. Raines, 411 S.W.2d 486 (Ark. 1967); California – 99
declined dramatically in the late 1980s and early 1990s and planned development units has been held constitu- Cents Only Store v. Lancaster Redevelopment Agency,
when it lost a military facility that provided one-third of the tional where the ordinance was modeled after the Hawaii 237 F. Supp.2d 1123 (C.D. Cal. 2001); Illinois - South-
region’s jobs. Pfizer’s arrival would provide jobs and tax Land Reform Act. See Leong Kau v. City & County of western Illinois Development Authority v. National City
revenue to the city. Honolulu, 104 Haw. 468, 92 P.3d 477 (2004). Environmental, L.L.C., et. al., 768 N.E.2d 1 (Ill. 2002),
4
The basic claim was that the city had violated the 14
467 U.S. 229, at 241. Both the Berman and Midkiff cert. denied, 2002 U.S. LEXIS 6453 (Oct. 7, 2002);
homeowner’s rights to equal protection and due process. opinions favorably cite Old Dominion Co. v. United Indiana – Daniels v. The Area Plan Commission of Allen
5
843 A.2d 500 (Conn. 2004). States, 266 U.S. 55 (1925), where the Court held that County, 306 F.3d 445 (7th Cir. 2002); Kentucky –
6
Id. at 532. judicial deference is due to the legislature for their Owensboro v. McCormick, 581 S.W.2d 3 (Ky. 1979);
7
Kelo, et al. v. City of New London, et al., 268 Conn. determination of public use “until it is shown to involve an Michigan - County of Wayne v. Hathcock, 684 N.W.2d
1, 843 A.2d 500 (2004), cert. granted, 125 S. Ct. 27 impossibility.” 765 (Mich. 2004); Missouri – Aaron v. Target Corp., 269
(2004). 15
See Berman v. Parker, 348 U.S. 26 (1954); Hawaii F. Supp.2d 1162 (E.D. Mo. 2003); New Jersey – Casino
8
See, for example, the Mill Acts, which permitted Housing Authority v. Midkiff, 467 U.S. 229 (1984). Reinvestment Development Authority v. Banin, 320 N.J.
riparian owners to erect and maintain dams which flooded 16
County of Wayne v. Hathcock, 684 N.W.2d 765 Super. 342, 727 A.2d 102 (1998); South Carolina –
neighboring property. For a discussion of the Mill Acts (Mich. 2004). Georgia Department of Transportation v. Jasper County,
see M. Horwitz, The Transformation of American Law, 17
Kelo, et al. v. City of New London, et al., 268 Conn. 586 S.E.2d 853 (S.C. 2003); and Virginia – City of Virginia
1780-1860, at 47-53 (1977). 1, 843 A.2d 500 (2004), cert. granted, 125 S. Ct. 27 Beach v. Christopoulos Family, L.C., 54 Va. Cir. 95
9
See Note, The Public Use Limitation on Eminent (2004). (2000).
Domain: An Advance Requiem, 58 Yale L.J. 599 (1949). 18
Southwestern Illinois Development Authority v. 21
The six states are Connecticut - Kelo, et al. v. City
10
348 U.S. 26 (1954). National City Environmental, L.L.C., et. al., 768 N.E.2d of New London, et al., 268 Conn. 1, 843 A.2d 500 (2004),
11
Id. at 33-34. 1 (Ill. 2002), cert. denied, 2002 U.S. LEXIS 6453 (Oct. 7, cert. granted, 125 S. Ct. 27 (2004); Kansas - General
12
467 U.S. 229 (1984). 2002). Building Contractors, L.L.C. v. Board of Shawnee
13
The Hawaii Land Reform Act of 1967 (Haw. Rev. 19
General Building Contractors, L.L.C. v. Board of County Commissioners, 66 P.3d 873 (Kan. 2003);
Stat. §516-1 (2004)) created a mechanism for condemn- Shawnee County Commissioners, 66 P.3d 873 (Kan. Louisiana – City of Shreveport v. Shreve Town Corp., 314
ing residential tracts and transferring ownership of them 2003). In its 2004 session, the Kansas legislature passed F.3d 229 (5th Cir. 2002); Minnesota –Minneapolis Com-
to existing lessees. The legislative intent was to make the and the governor signed into law S.B. 461. The bill bars munity Development Agency (MCDA) v. OPUS North-
land sales involuntary and thus the federal tax conse- Cowley County officials and/or a port authority in Cowley Continued on page 7
Eminent domain/cont. from page 6 121 (2002); and Ohio – City of Toledo v. Kim’s Auto & 1, 843 A.2d 500 (2004), cert. granted, 125 S. Ct. 27
west, LLC, 582 N.W.2d 596 (Minn. 1998); New York – Truck Service, Inc., No. L-02-1318, 2003 Ohio App. (2004).
In re West 41 Street Realty LLC v. New York State Urban LEXIS 4995 (Ohio Ct. App. Oct. 17, 2003).
Development Corporation, 298 A.D.2d 1, 744 N.Y.S.2d 22
Kelo, et al. v. City of New London, et al., 268 Conn.