Released on = August 5, 2006, 10:59 am

Press Release Author = National Institute for Urban Entrepreneurship

Industry = Law

Press Release Summary = With trends showing an alarming rate of homes and small
business property taken by state actors for assorted public or private benefits, on
July 26, 2006, the Ohio Supreme Court refused to uphold two such eminent domain
actions.


Press Release Body = With trends showing an alarming rate of homes and small
business property taken by state actors for assorted public or private benefits, on
July 26, 2006, the Ohio Supreme Court refused to uphold two such eminent domain
actions.

In the historic opinion, Norwood v. Horney, _Ohio St.3d____, 2006-Ohio-3799 --- City
of Norwood, Appellee, v. Horney et al., Appellants (Nos. 2005-0227 and 2005-0228)
and City of Norwood, Appellee, v. Gamble et al., Appellants, (Nos. 2005-1210 and
2005-1211), Judge O'Connor of the Ohio Supreme Court reversed the two lower court
cases holding that "although economic factors may be considered in determining
whether private property may be appropriated, the fact that the appropriation would
provide an economic benefit to the government and community, standing alone, does
not satisfy the public-use requirement of Section 19, Article 1 of the Ohio
Constitution."

The Court in a fifty-eight (58) page opinion went on to apply heightened scrutiny
when reviewing statutes that regulate the use of eminent-domain powers; considered
the use of 'deteriorating area' as a standard for determining whether private
property is subject to appropriation void for vagueness and inherently speculative.
Furthermore, the Court severed, as unconstitutional, provision R.C. 163.19 from the
rest of the statute. This provision prohibited a court from stopping the taking and
use of property appropriated by a government after the compensation for the property
had been deposited with the court, but prior to appellate review.
"We are thrilled that the Ohio Supreme Court has critically reviewed and decisively
rejected provisions of this draconian eminent domain statute," says Patricia H.
Lee, National Institute for Urban Entrepreneurship, President. "No-one should lose
their home or business because they happen to be located in a 'deteriorating area.'
This case stops a reverse Robin Hood approach to private property ownership."
O'Melveny & Myers, L.L.P., Brian P. Brooks, and Garrett W. Wotkyns, urged reversal
of the two lower court actions on behalf of amici curiae Ohio Conference of the
National Association for the Advancement of Colored People and National Institute
for Urban Entrepreneurship.

About the National Institute for Urban Entrepreneurship

The National Institute for Urban Entrepreneurship is a nonprofit, nonpartisan
organization which partners with universities, nonprofits, business, community
organizations, and individuals to advance entrepreneurship among disadvantaged
groups. NIUE was founded in 2003 by attorney Patricia H. Lee, Esq. to be an
advocate and catalyst for strategies to create a culture of entrepreneurship,
innovation and private sector economic growth in urban communities. More
information about NIUE is available at www.ni-ue.org.

###


Web Site = http://www.ni-ue.org

Contact Details = National Institute for Urban Entrepreneurship
8720 Georgia Avenue, Suite 700
Silver Spring, MD 20910
www.ni-ue.org
(301) 587-8720 (phone)
(301) 587-8721 (fax)