Bullock: This has really been a wakeup call--not only that the government can take your property but how incredibly unfair the process is in so many states, including Connecticut. That includes the definition of fair market value.
It's also the fact that landowners, if they want to challenge the taking of their property, have to go out and hire a lawyer. And lawyers will often take a case for property owners who want to sell, because they're guaranteed a certain percentage of whatever amount they're able to get. But if you want to hold onto your home or your small business, and you've got to go out and pay a lawyer out of pocket, the cost of defending against an eminent domain action quickly exceeds the value of the property. That's one of the reasons people who want to hold onto their property find it economically impossible to do so. That's a huge club governments have against property owners.
Reason: The news that the New London Development Corporation (NLDC) is now trying to charge the homeowners back rent on their property--on the grounds that it has belonged to the city since 2000--was shocking. How can the city claim to be entitled to rent when they didn't have the title free and clear?
Bullock: Actually--and this is another example of the unfairness of this process--when an eminent domain action is filed, including those for private development, once the government deposits the money in the court's account, title immediately transfers to the condemning body. So the title in New London has been held by the condemning authorities since the year 2000. And that's true in most state laws. Under Connecticut law, the government can then charge rent to the home-owners. In New London, the Dery family owned its home for more than 100 years, and they've been mortgage-free since the 1950s, and the NLDC told them they owed $450 a month, per house, for the supposed privilege of just staying in their home.
We worked out an agreement that the homeowners would not have to pay rent, and that situation did not turn on who won or lost the case. The fact that the NLDC would now go back and try and make that argument is unbelievably outrageous. We think it's a frivolous argument and will gain no traction in court.
Reason: You had that agreement in writing prior to the case?
Bullock: Yeah, the agreement sets out all the terms of the case. We gave up certain things, and they gave up certain things. Initially this agreement was only supposed to last a couple months--with the option of the court's extending it--until the trial of the case. We agreed to an expedited trial in exchange for that concession. The courts kept extending the agreement, not allowing them to charge rent, not allowing them to evict the homeowners. So as I said, if they go back and try to charge rent, we'd recommend to the property owners that they countersue on the grounds that this is a frivolous action.
Reason: Although there's a nationwide backlash against eminent domain generally, in the specific case of New London it seems like the homeowners are toast. Is there anything going on now--in the Connecticut legislature, for example--that might save them from being displaced?
Bullock: We think they're going to hang onto their homes.
Reason: Well, the attorney for the plaintiffs has to be optimistic by profession.
Bullock: No, we really do think they're going to win. There is so much support for the property owners. They're American heroes.
Reason: But are they New London heroes?
Bullock: Oh, there's overwhelming support for them in New London. The only people who support the Kelo decision are those who stand to benefit from it--city officials and developers. And throw in a couple of editorial pages and clueless academics. The homeowners have overwhelming support not only in New London but throughout Connecticut. Gov. M. Jodi Rell has said she wants to see if there's a way to keep the property owners there and will work toward that solution. The legislature called on the New London city government, and they reluctantly agreed to a moratorium, so none of the property owners can be removed while the legislature considers changes in the eminent domain laws. So there's real momentum in Connecticut, not only to change the laws but to protect homeowners in the Fort Trumbull neighborhood.
Reason: Would an ex post facto law work, after the Supreme Court has decided the case?
Bullock: There are ways of just permitting the people to stay, even without a legislative change. There's plenty of land in Fort Trumbull to do significant development while keeping these people in their homes. And a law could affect the Fort Trumbull owners, depending on how it's worded.
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