Arguing That Rhode Island’s “Quick Take” Eminent Domain Statute Violates Due Process
This case challenged the constitutionality of Rhode Island’s “quick take” statute, R.I.G.L. 1956 §§ 42-64-9, which permits the taking of property without notice to the owner. The Parking Co., LP (“TPC”) is the parking concessionaire of the Rhode Island Airport Corp. (“RIAC”), a subsidiary of the Rhode Island Economic Development Corporation (“EDC”). Under its Concession and Lease Agreement with RIAC, TPC was required, among other things, to build Garage B at the Airport. Under the agreement, TPC owned Garage B in fee, but was required to deed it to RIAC gratis after twenty years, i.e., on or after December 31, 2007. The agreement also granted RIAC the right to purchase the garage prior to that date, upon payment of a sum to be calculated under a formula. Apparently, at a certain point RIAC decided that it could make more money operating Garage B directly than through its concessionaire TPC. Rather than pay the contractual price, however, RIAC arranged to have TPC’s interest in the garage taken by its parent EDC by eminent domain (RIAC itself does not have eminent domain powers), which then conveyed the interest to RIAC. It was thought that, through the use of eminent domain, RIAC would be able to obtain the interest for less than if it had used the purchase price formula in the agreement. Because EDC used the unique procedures under the Rhode Island “quick take” statute TPC received no prior notice of the taking, and was only able to challenge its validity through the appellate process. TPC appealed the case to the Rhode Island Supreme Court and NELF filed an amicus brief supporting TPC. While TPC challenged the taking and the compensation on a number of grounds, NELF’s brief focused on the constitutionality of the “quick take” procedure itself, which allowed EDC to take TPC’s parking garage ex parte, without even a post-taking procedure available to challenge the validity of the taking. Building on the arguments that it made successfully in Gem Plumbing & Heating Co. v. Rossi, 867 A.2d 796 (R.I. 2005), NELF argued that due process requires a pre-deprivation hearing and an opportunity to challenge the validity of the proposed taking before a state agency can take property by eminent domain. The case was decided on February 23, 2006. The Court decided that, despite the language of the “quick take” statute, the law must be interpreted to allow a post-taking hearing and determination of the validity of the taking and amount of damages. The Court overruled the taking on the ground that a taking to avoid contractual payment is in bad faith and not a legitimate public use.
This case challenged the constitutionality of Rhode Island’s “quick take” statute, R.I.G.L. 1956 §§ 42-64-9, which permits the taking of property without notice to the owner. The Parking Co., LP (“TPC”) is the parking concessionaire of the Rhode Island Airport Corp. (“RIAC”), a subsidiary of the Rhode Island Economic Development Corporation (“EDC”). Under its Concession and Lease Agreement with RIAC, TPC was required, among other things, to build Garage B at the Airport. Under the agreement, TPC owned Garage B in fee, but was required to deed it to RIAC gratis after twenty years, i.e., on or after December 31, 2007. The agreement also granted RIAC the right to purchase the garage prior to that date, upon payment of a sum to be calculated under a formula. Apparently, at a certain point RIAC decided that it could make more money operating Garage B directly than through its concessionaire TPC. Rather than pay the contractual price, however, RIAC arranged to have TPC’s interest in the garage taken by its parent EDC by eminent domain (RIAC itself does not have eminent domain powers), which then conveyed the interest to RIAC. It was thought that, through the use of eminent domain, RIAC would be able to obtain the interest for less than if it had used the purchase price formula in the agreement. Because EDC used the unique procedures under the Rhode Island “quick take” statute TPC received no prior notice of the taking, and was only able to challenge its validity through the appellate process. TPC appealed the case to the Rhode Island Supreme Court and NELF filed an amicus brief supporting TPC. While TPC challenged the taking and the compensation on a number of grounds, NELF’s brief focused on the constitutionality of the “quick take” procedure itself, which allowed EDC to take TPC’s parking garage ex parte, without even a post-taking procedure available to challenge the validity of the taking. Building on the arguments that it made successfully in Gem Plumbing & Heating Co. v. Rossi, 867 A.2d 796 (R.I. 2005), NELF argued that due process requires a pre-deprivation hearing and an opportunity to challenge the validity of the proposed taking before a state agency can take property by eminent domain. The case was decided on February 23, 2006. The Court decided that, despite the language of the “quick take” statute, the law must be interpreted to allow a post-taking hearing and determination of the validity of the taking and amount of damages. The Court overruled the taking on the ground that a taking to avoid contractual payment is in bad faith and not a legitimate public use.
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