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20 Years After Kelo v. City of New London: What California Property Owners Need to Know

By Peterson Law Group on March 30, 2025

Two decades ago, the U.S. Supreme Court delivered one of the most controversial property rights decisions in American history: Kelo v. City of New London (2005). The ruling upheld the government’s ability to seize private property for economic development projects led by private developers. The court justified the decision by classifying a private development project as “public use.”

The fallout was immediate and intense. Property owners across the country, including in California, feared that their homes and businesses could be taken not for highways or schools, but for shopping centers, luxury housing, or corporate interests. In response, California voters passed Proposition 99, aimed at tightening the rules around government takings.

John S. Peterson is an eminent domain attorney in Los Angeles at Peterson Law Group PC, where we help California property owners stand up against improper or overreaching eminent domain actions.

What Did Kelo v. City of New London Actually Say?

In Kelo, the Supreme Court ruled 5-4 that the City of New London, Connecticut could seize private homes and transfer them to a private developer as part of an economic redevelopment plan. The city argued that the new development was serving a “public purpose” because it would boost tax revenue and create jobs.

The court interpreted the term public use broadly to include any economic benefit to the community. This meant private property could be condemned and handed over to another private party as long as the government claimed some public advantage.

The court’s interpretation was alarming to property rights advocates. Critics argued that the decision gave governments a green light to favor well-connected developers over individual homeowners, opening the door to widespread abuse.

California’s Response: Stronger Protections Through Proposition 99

In the wake of Kelo, many states enacted reforms to tighten eminent domain laws. California responded with Proposition 99, which was approved by voters in 2008.

Proposition 99 specifically prohibits the government from using eminent domain to take a single-family, owner-occupied residence for transfer to a private party. This was a direct response to the kind of abuse seen in Kelo.

California’s reform is one of the more meaningful responses to Kelo, offering greater protection to residential homeowners than many other states.

However, Prop 99 has limitations:

• It applies only to owner-occupied, single-family homes.
• It does not protect rental properties, commercial buildings, or multi-family dwellings.
• It does not prevent takings for traditional public uses, like roads, schools, or utilities.

Real-World Examples: California Property Owners Fighting Back

While Kelo opened the door for economic development takings, California courts have since ruled in favor of property owners in several key cases, showing that the state’s laws can work in your favor if challenged properly.

Community Youth Athletic Center v. City of National City (2013)

The city attempted to redevelop a low-income area under the guise of eliminating “blight.” Property owners, including a local boxing gym, fought back. The court held that the city’s blight designation lacked substantial evidence, and the condemnation attempt was blocked.

City of Stockton v. Marina Towers LLC (2009)

In this case, the city tried to condemn a parking garage and lease it to a private party. The court found that the public use justification was inadequate, and the taking was deemed unconstitutional.

These cases demonstrate that public use takings in California can be successfully challenged, especially when they lean toward private benefit rather than legitimate public necessity.

Know Your Rights Under California Eminent Domain Law

Even though California offers stronger protections than some states, you are not automatically safe from government land seizure. Public agencies still have broad authority to take land for:

• Public infrastructure (roads, bridges, utilities)
• Schools and government buildings
• Environmental or disaster mitigation

If you receive a notice of intent to condemn your property, don’t assume the taking is valid or the compensation offered is fair.

You have the right to:

• Receive just compensation for your property, including lost value to remaining land (severance damages)
• Challenge the public use justification of the taking
• Dispute the government’s valuation with your own appraisal
• Demand relocation costs or business interruption damages, if applicable

These rights are enforceable, but only if you act quickly and with experienced legal support.

How an Eminent Domain Attorney Can Help You Push Back

Fighting a government land seizure isn’t easy, but with the right legal strategy, it’s possible. At Peterson Law Group PC, we work with expert appraisers, engineers, and land-use consultants to build strong, evidence-based cases for our clients.

Our role is to:

• Evaluate whether your property may be protected under Prop 99 property rights
• Challenge vague or unjustified claims of “public use”
• Negotiate aggressively for higher compensation, including hidden damages
• Represent you in court if the government moves forward with condemnation

We understand how to navigate California eminent domain reform laws and leverage every available protection on your behalf.

The Risks of Not Taking Action

Too many property owners accept the government’s first offer or assume there’s nothing they can do. The reality? These takings often involve lowball valuations, rushed timelines, and procedural shortcuts.

Letting the process move forward without resistance can result in:

• Losing your property for a fraction of its true value
• Being displaced without proper relocation assistance
• Suffering long-term business or financial harm

That’s why it’s essential to speak with a knowledgeable eminent domain attorney in Los Angeles at the first sign of trouble.

Speak With a Trusted Eminent Domain Attorney in Los Angeles

For over two decades, John S. Peterson has been helping California property owners defend their rights and fight back against unfair or unnecessary takings. In fact, he was named Lawyer of the Year for Los Angeles by Best Lawyers for Eminent Domain and Condemnation Law. John also has an AV Rating from Martindale-Hubbell® and he belongs to the Multi-Million Dollar Advocates Forum.

Call Peterson Law Group PC at (213) 236-9720 to learn more today.