Difficulty: Moderately Easy
Step1
After having suffered under English rule, where the king could seize property at any time, the creators of the Constitution wanted to protect property and limit a government's ability to take it and hold it. The founding fathers included language in the Fifth Amendment that says a government's power of eminent domain originates from the "Takings Clause," which states, "[N]or shall private property be taken for public use, without just compensation."
Step2
The Takings Clause requires that any private land taken by the government shall only be taken for purely public use. This was originally intended to prohibit government officials from taking private land for their personal use. For example, eminent domain can be exercised in the creation of a new freeway or the construction of a public building.
Step3
It can also include the government's restriction of the use of private land. The Takings Clause clarifies that as certain government restrictions may limit the use of one's property, at times going so far as to affect its value, it is considered that such damaging and limiting restrictions constituted a taking. Such restrictions are now deemed worthy of just compensation as well.
Step4
The Takings Clause requires the government to provide just compensation when taking private property. This is typically determined based on the market value of the property, which is the price a reasonable landowner could expect to sell his land for. A variety of factors are involved in determining market value and most eminent domain actions revolve around a dispute over valuation of the property.
Step5
Today, some of the most heated debates in eminent domain center around the definition of "public good." A variety of seemingly private uses, such as private revitalization of blighted areas, can be construed as being for the public good in that it benefits the public as a whole. However, many disagree with what benefits the public, and legal actions generally follow.