Hawaii Housing Authority v. Midkiff
Encyclopedia
Hawaii Housing Authority v. Midkiff, 467 U.S. 229
(1984), was a case in which the United States Supreme Court
held that a state could use the eminent domain
process to take land overwhelmingly concentrated in the hands of private landowners and redistribute it to the wider population of private residents.
titles in the state, the Hawaii Legislature
concluded that the oligopoly
in land ownership was “skewing the State's residential fee simple market, inflating land prices, and injuring the public tranquility and welfare,” and therefore enacted a condemnation scheme for title.
, in which eminent domain power was used to redevelop slum areas and for the possible sale or lease of the condemned lands for private interest. The United States Congress
had the power to determine what was for the public good over the judiciary. The decision equated police power with the eminent domain of the sovereign's public use requirement.
In an 8-0 decision, the court voted that the Hawaiian act was constitutional. Hawaii's act to regulate the oligopoly was seen as a classic exercise of the State's police powers, and a comprehensive and rational approach to identifying and correcting market failure and satisfied the public use doctrine. Land did not have to be put into actual public use in order to use eminent domain
. It is the taking's purpose, and not its mechanics that were important. Here, eminent domain was used to provide an overall market benefit to the wider populace.
The decision suggested that a judicial deference
to the legislature was involved. If the legislature determines there are substantial reasons for the exercise of the taking power, courts must defer to the legislature's determination that the taking will serve a public use.
The decision held that the takings to correct concentrated property ownership was a legitimate public purpose.
However, the aftermath of the Midkiff decision failed to achieve the stated purpose of the redistribution legislation which was incapable of creating new housing because it only transferred title from the land lessor to the lessee-homeowners who already occupied existing homes on the subject property. As soon as the former lessees acquired fee simple titles to their homes, those became attractive to Japanese investors and speculators who paid outlandish prices for those homes (largely located in the upscale Kahala
and Hawaii Kai neighborhoods), causing a ripple effect throughout the island. Home prices on Oahu
, far from falling as intended by the legislature, surged upward and more than doubled within six years.
Midkiff is reaffirmed by Kelo v. City of New London
.
Case citation
Case citation is the system used in many countries to identify the decisions in past court cases, either in special series of books called reporters or law reports, or in a 'neutral' form which will identify a decision wherever it was reported...
(1984), was a case in which the United States Supreme Court
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
held that a state could use the eminent domain
Eminent domain
Eminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...
process to take land overwhelmingly concentrated in the hands of private landowners and redistribute it to the wider population of private residents.
Background
With 22 landowners owning 72.5% of the fee simpleFee simple
In English law, a fee simple is an estate in land, a form of freehold ownership. It is the most common way that real estate is owned in common law countries, and is ordinarily the most complete ownership interest that can be had in real property short of allodial title, which is often reserved...
titles in the state, the Hawaii Legislature
Hawaii Legislature
The Hawaii State Legislature is the state legislature of the U.S. state of Hawaii. The state legislature is a bicameral body consisting of a lower house, the Hawaii House of Representatives with 51 representatives, and an upper house, the 25-member Hawaii Senate. There are a total of 76...
concluded that the oligopoly
Oligopoly
An oligopoly is a market form in which a market or industry is dominated by a small number of sellers . The word is derived, by analogy with "monopoly", from the Greek ὀλίγοι "few" + πόλειν "to sell". Because there are few sellers, each oligopolist is likely to be aware of the actions of the others...
in land ownership was “skewing the State's residential fee simple market, inflating land prices, and injuring the public tranquility and welfare,” and therefore enacted a condemnation scheme for title.
Decision
The court's decision looked to Berman v. ParkerBerman v. Parker
Berman v. Parker, is a landmark decision of the United States Supreme Court that interpreted the Fifth Amendment's Takings Clause: "nor shall private property be taken for public use, without just compensation" in the Fifth Amendment of the United States Constitution. The court voted 8-0, holding...
, in which eminent domain power was used to redevelop slum areas and for the possible sale or lease of the condemned lands for private interest. The United States Congress
United States Congress
The United States Congress is the bicameral legislature of the federal government of the United States, consisting of the Senate and the House of Representatives. The Congress meets in the United States Capitol in Washington, D.C....
had the power to determine what was for the public good over the judiciary. The decision equated police power with the eminent domain of the sovereign's public use requirement.
In an 8-0 decision, the court voted that the Hawaiian act was constitutional. Hawaii's act to regulate the oligopoly was seen as a classic exercise of the State's police powers, and a comprehensive and rational approach to identifying and correcting market failure and satisfied the public use doctrine. Land did not have to be put into actual public use in order to use eminent domain
Eminent domain
Eminent domain , compulsory purchase , resumption/compulsory acquisition , or expropriation is an action of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent...
. It is the taking's purpose, and not its mechanics that were important. Here, eminent domain was used to provide an overall market benefit to the wider populace.
The decision suggested that a judicial deference
Judicial deference
Judicial deference is a doctrine by which judges seek to avoid frustrating the will of the legislature when deciding cases . It is most commonly found in countries, such as the United Kingdom, which lack an entrenched constitution, as the essential purpose of such documents is to limit the power of...
to the legislature was involved. If the legislature determines there are substantial reasons for the exercise of the taking power, courts must defer to the legislature's determination that the taking will serve a public use.
The decision held that the takings to correct concentrated property ownership was a legitimate public purpose.
However, the aftermath of the Midkiff decision failed to achieve the stated purpose of the redistribution legislation which was incapable of creating new housing because it only transferred title from the land lessor to the lessee-homeowners who already occupied existing homes on the subject property. As soon as the former lessees acquired fee simple titles to their homes, those became attractive to Japanese investors and speculators who paid outlandish prices for those homes (largely located in the upscale Kahala
Kahala
Kāhala, Honolulu, Hawaii is a neighborhood located alongside Kaimuki and Waialae, featuring many beachfront properties. This small neighborhood has some of the most expensive real estate in the city of Honolulu and the state of Hawaii....
and Hawaii Kai neighborhoods), causing a ripple effect throughout the island. Home prices on Oahu
Oahu
Oahu or Oahu , known as "The Gathering Place", is the third largest of the Hawaiian Islands and most populous of the islands in the U.S. state of Hawaii. The state capital Honolulu is located on the southeast coast...
, far from falling as intended by the legislature, surged upward and more than doubled within six years.
Limitations of the decision
The decision, though, placed limits on the power of the government citing:Midkiff is reaffirmed by Kelo v. City of New London
Kelo v. City of New London
Kelo v. City of New London, 545 U.S. 469 was a case decided by the Supreme Court of the United States involving the use of eminent domain to transfer land from one private owner to another to further economic development...
.