Poletown and Eminent Domain

Poletown and Eminent Domain. Michigan Legal Milestone. , Harsh economic conditions and the need to attract high-paying manufacturing jobs to keep the automobile industry centered in the Motor City led the cities of Detroit and Hamtramck to join forces in 1980 to condemn a working-class neighborhood known as Poletown. Homes, businesses, churches, and a hospital were demolished to make room for a new plant to build Buick, Oldsmobile, and Cadillac automobiles. , , While most residents were willing to sell their homes and businesses, some were not. A small, vocal group of protesters staged sit-ins and demonstrations that attracted national attention. They waged a public relations and legal battle against GM and the two cities, claiming that government could not use its power of eminent domain to transfer property from individuals to private corporations. , , In a landmark 5-2 decision in March 1981, the Michigan Supreme Court rebuffed the challenge (Poletown Neighborhood Council v. Detroit), allowing GM to build a state-of-the-art plant employing up to 6,000 workers. It was an important ruling with national ramifications that set a new legal standard expanding the power of eminent domain by allowing the definition of public use to include economic development. , , In 2004, the Michigan Supreme Court reversed its Poletown decision (County of Wayne v. Hathcock), ruling that taking property for developing a business or technology park did not constitute a valid public use under the state's Constitution. , , Placed by the State Bar of Michigan and the Detroit Metropolitan Bar Association, December 2, 2008.