Recreational Systems, Inc., under the authority of a statute of the State of Greenora, sued to have condemned 1000 acres of forested land owned by the Great Lakes Timber Co. which it planned to develop for use as a state recreational area and state gamelands. After a hearing, the state court ordered possession of the land surrendered to Recreational Systems, prior to determination of compensation, upon deposit in court of a sum deemed adequate to cover damages which might be awarded. Great Lakes Timber Co. immediately commenced an action to enjoin the court ordered sale of their property.
Indicate which of the following would be the best ground for upholding the state court's order:
Answer: (A) the power of eminent domain may only be delegated directly to a private enterprise for a public related use or activity.
The PMBR explanation states:
The power of eminent domain may be delegated directly or indirectly to a private person or enterprise subject to the requirements that the taking be (a) for a public use and (b) just compensation must be given.
Now, I am not too familiar with the facts or application of Kelo, but from reading the holding the first requirement of this test seems to be optional, no? It can now be for either a public or private use.
BTW, if you are studying for the bar and have the PMBR books, this is question 38 in the property section of the red book.
