U.S. Court of Appeals Strikes Down “Negro Removal” Redevelopment

There is a new decision by the U.S. Court of Appeals for the 3d Circuit, reversing a trial court’s grant of summary judgment against homeowners in Mt. Holly, who challeneged a redevelopment projects on the grounds that it was racially discriminatory because it targeted a predominantly minority neighborhoods whose inhabitants also argued that they were unable to obtain substitute housing with the compansation paid them by the township. The case is Mt. Holly Gardens v. Township of Mt. Holly, (3d Cir. 2011), Docket No. 11-1159, opinion filed September 13, 2011.

The court’s conclusion:

“The Township has broad discretion to implement the policies it believes will improve its residents’ quality of life. But that discretion is bounded by laws like the FHA and by the Constitution, which prevent policies that discriminate on the basis of race.”

We are all in favor of improving the quality of life, but we can’t help wondering what that has to do with eminent domain which is limited by the Constitution to land acquisitions for public use. The court properly held that the lower court’s use of a summary judgment procedure did not afford the owner-plaintiffs a fair opportunity to present their case of racial discrimination, and the court’s remand to the trial court for a trial on the merits seems  sensible.