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Metro City Exercises Its Power of Eminent Domain to Acquire

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Essay

Metro City exercises its power of eminent domain to acquire land for a public project, including part of a public transit rail system and a traffic bypass. Metro City relocates more than 10,000 residents from the land and destroys their homes to begin the project. Nathan's Deli is adjacent to the project. Nathan's loses most of its business when the residents are moved. Nathan's files a suit against Metro City, alleging that its acquisition of the land resulted in a taking of the deli's property interest, entitling it to compensation. What is a taking? What might Nathan's claim is its "property interest" to support this allegation? What is the court likely to rule? Why?


Definitions:

Promissory Note

A financial instrument in which one party (the maker) promises in writing to pay a determinate sum of money to the other (the payee), either at a fixed or determinable future time or on demand.

Missing Interest Rate

The not specified or unidentified rate of interest in a financial context.

Real Compound Rate of Return

The annual rate of return on an investment, adjusted for inflation, that compounds over time.

CPI Increased

indicates that the Consumer Price Index, which measures changes in the price level of consumer goods and services, has risen.

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