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ARTICLE · 26 MAY 2015

NC House Passes Eminent Domain Constitutional Amendment

Fox Rothschild LLP
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North Carolina's State House passed HB 3 which attempts to limit eminent domain powers. The bill, which has 69 House sponsors and co-sponsors

United StatesReal Estate and Construction

North Carolina's State House passed HB 3 which attempts to limit eminent domain powers.  The bill, which has 69 House sponsors and co-sponsors, would add language to the North Carolina constitution specifying that local and state governments can take private property with "just compensation" only for a "public use" and would guarantee a jury trial if requested by the condemnee.  Sponsor Rep. Chuck McGrady, stated his belief that these requirements are already in North Carolina law, but unlike most states, are not in its constitution.  It is the first step towards a ballot measure to amend the NC Constitution.

The US Constitution – and many other state constitutions – have a "public use" requirement that must be satisfied before the power of eminent domain can be exercised.  However, federal law – most notably restated in the infamous Kelo case, holds that the term "public use" means "public purpose" and does not mean that the public must be permitted to use the

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