Opinion ID: 1925642
Heading Depth: 1
Heading Rank: 6

Heading: Constitutionality of the EDC Condemnation Statute

Text: The Legislature created the EDC to promote the economic development of the state and the general welfare of its citizens. Section 42-64-5(3). To aid in such objectives, the Legislature vested EDC with eminent domain authority to be exercised for any of the purposes for which EDC was created. The condemnation statute at issue, 42-64-9, provides for a quick-take procedure that, as the characterization implies, affords the condemning authority the ability to effectuate a taking with rapidity. The condemning authority obtains title and may take possession of property merely by filing a declaration of condemnation and satisfying the court that its estimate of compensation is just. Notice to the landowner occurs after the taking is accomplished. Such a summary method of condemnation allows the government to take property for a public purpose without first litigating the question of just compensation or any other issues that may arise in a traditional eminent domain proceeding. 13 Powell on Real Property Eminent Domain Procedures 79F.06[1][b] at 73 (2000). This procedure is intended to avoid delay in a public project while the parties wrangle over these issues. According to the quick-take statute, EDC first determines the necessity of the taking by a vote of its members. Section 42-64-9(d). Within six months of this vote, EDC must file in the appropriate municipal land evidence records, a copy of its vote together with a statement from the chairperson or vice chairperson that the property is taken pursuant to chapter 64 of title 42, and a description and plat of the property indicating the nature and extent of the interest taken. Section 42-64-9(d). The statute requires EDC to forthwith file copies of the same documents with the Superior Court, as well as a statement of the sum of money estimated to be just compensation. Section 42-64-9(e). The EDC also must deposit with the court the estimated amount of just compensation. Id. After these filings are accomplished, EDC must satisfy the court that the amount deposited is sufficient to satisfy the just claims of all persons having an estate or interest in the real property. Id. The singular function of the Superior Court is to approve the appropriate amount of just compensation so that the claim of any interested person will be satisfied. Once the court approves the amount deposited in the registry, title to the property shall vest in EDC; and the property shall be deemed to be condemned and taken for the use of the corporation and the right to just compensation for the condemned property shall vest in the persons entitled to compensation[.] Section 42-64-9(f). Although no time frame is specified, the statute also requires EDC to serve notice of the taking upon the property owner after the copy of the vote, statement, description and plat are filed in the land evidence records. Section 42-64-9(g) and (j). Although TPC does not challenge the delegation of condemnation power to the EDC, it alleges that 42-64-9 is unconstitutional because it impermissibly vests the EDC with the exclusive power to deem that a taking is for a public purpose. According to TPC, the statute violates the Takings Clause because it does not afford any procedure to challenge EDC's finding of a public use. TPC also argues that the statute violates the Doctrine of Separation of Powers by usurping the role of the judiciary in ascertaining whether the taking is for a public use. Further, TPC alleges that a condemning authority's recitation of a public use is not conclusive and, although entitled to some judicial deference, bad faith on the part of the condemning authority or a demonstrably pretextual declaration of public use can defeat any presumption of public use that may arise. We shall address these issues seriatim.