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Midland Eminent Domain Case Study

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In this case, the parties asked the court to focus on the legitimacy of a local government’s exercise of its power of eminent domain. Eminent domain is a power of the government to take land for public use.
Under an agreement with the town of Monroe, North Carolina, the town of Midland began to acquire the rights of way to local land for the installation of a natural gas pipeline. Under the agreement, Midland could—if it chose—tap the line at a discounted price. Midland used its eminent domain authority to condemn the property. Fifteen property owners challenged the action in a North Carolina state court. The court ruled in Midland’s favor. The owners appealed, claiming that Midland's condemnation was not for public use or benefit, because the town had no concrete plan to tap the line. Therefore, the main issue was …show more content…
In applying the public use test, the court noted that “there was nothing to indicate that gas services—were they to be provided by Midland—would be available to anything less than the entire population.” Even though Midland might never tap into the pipeline, the court reasoned that the condemnation satisfied the public use test because it gave the citizens of Midland a right to a definite use of the condemned property.
Applying the public benefit test, the court reasoned that it is the availability of natural gas that contributes to the general welfare and prosperity of the public at large. According to the court, Midland’s tap on the Pipeline and its potential to provide natural gas service, likely will spur growth and provide advantages to the city in attracting industry. “These opportunities must be seen as public benefits accruing to the citizens of Midland, such that Midland's condemnations are for the public

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