
The Takings Clause, found in the Fifth Amendment of the U.S. Constitution, deals with the government's ability to take private property for public use. The clause states that the government must provide just compensation to the property owner before taking possession. This clause was originally only applicable to the federal government, but a Supreme Court ruling in 1897 extended its effects to the states as well. The Takings Clause has its origins in the Magna Carta, which stated that no private property could be taken without due process. The Fifth Amendment's Takings Clause is the only clause in the Bill of Rights solely drafted by James Madison.
| Characteristics | Values |
|---|---|
| Location in the Constitution | Fifth Amendment |
| Application | Federal government, and states (since 1897) |
| Purpose | Prevent seizure of private property without "just compensation" |
| Definition of "private property" | Not defined in the Constitution, defined by state laws and common law |
| Definition of "public use" | Interpreted broadly by federal courts as any "public benefit" |
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What You'll Learn

The Fifth Amendment
The Takings Clause is found in the Fifth Amendment to the United States Constitution. The Fifth Amendment covers criminal rights and the due process of law. The Takings Clause reads: "...nor shall private property be taken for public use, without just compensation."
The Takings Clause prohibits federal and state governments from taking private property from citizens unless they compensate them for the seizure. This clause does not prevent the government from taking private property. Instead, it expressly allows the government to seize private property for public use. However, it guarantees that the government can only do so if it fairly compensates the property owner.
The Takings Clause originated in section 39 of the Magna Carta, which stated that no private property could be taken without due process. The Fifth Amendment was adopted because the founding fathers feared that the federal government would become too powerful. The Takings Clause was the only clause in the Bill of Rights drafted solely by James Madison. It used to apply only to the federal government, but the Supreme Court ruled in 1897 that the Fourteenth Amendment extended its effects to the states.
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Limits of government power
The Takings Clause, found in the Fifth Amendment of the U.S. Constitution, acts as a limit on the government's power. The Fifth Amendment states:
> "nor shall private property be taken for public use, without just compensation."
This clause recognises the pre-existing power to take private property for public use, rather than granting new power. The government is required to provide fair compensation when taking private property, but this does not prohibit the act of taking private property outright. The Takings Clause is applicable to the states through the Fourteenth Amendment.
The Supreme Court has interpreted "public use" as being synonymous with "police power in furtherance of the public interest". This includes the protection of public health, welfare, and safety. For example, during the early stages of the COVID-19 pandemic, the closure of businesses was deemed to be in the interest of public health and safety, and therefore a valid exercise of government power.
However, the Court has also ruled that a taking can occur even without the formal seizure of property. For instance, if government action significantly limits an owner's use of property, or eliminates all economically beneficial use of land, this may constitute a taking. Furthermore, the direct transfer of land from lessors to lessees is permissible, as the government is not required to possess and use property during a taking.
The federal power of eminent domain is limited by the grants of power in the Constitution, meaning property can only be taken for the effectuation of a granted power. The Supreme Court has approved the use of eminent domain by federal and state governments in conjunction with private companies to facilitate urban renewal, the destruction of slums, and the promotion of aesthetic and economic values.
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Due process of law
The Takings Clause is found in the Fifth Amendment to the United States Constitution, which states that "nor shall private property be taken for public use, without just compensation". This clause is a recognition of the pre-existing power of eminent domain, which allows the government to take private property for public use, provided that just compensation is paid to the property owner. The Takings Clause is a limitation on this power, ensuring that property owners are fairly compensated for their loss.
The concept of due process of law is closely related to the Takings Clause. The Fifth Amendment includes a due process clause, which states that no person shall "be deprived of life, liberty, or property, without due process of law". This clause acts as a safeguard, protecting individuals from arbitrary denial of their rights by the government outside the sanction of law. The due process clause of the Fifth Amendment applies specifically to the federal government, while the due process clause of the Fourteenth Amendment applies to state and local governments.
The Supreme Court has interpreted the due process clauses of the Fifth and Fourteenth Amendments to provide several protections, including procedural due process in civil and criminal proceedings, substantive due process, a prohibition against vague laws, and the incorporation of the Bill of Rights. These interpretations have helped to define the rights and protections afforded to individuals under the due process of law.
In the context of the Takings Clause, due process plays a crucial role in ensuring that property owners are treated fairly and justly. The Supreme Court has clarified that decision-makers should focus on the fairness of the burden imposed on property owners when considering whether compensation is owed. This means evaluating whether a valid exercise of police power imposes such a significant burden on a property owner that compensation is warranted.
The Takings Clause and the due process clause of the Fifth Amendment work together to protect individuals' property rights and ensure that the government acts within the boundaries of the law when taking private property for public use. By requiring just compensation and adhering to due process, the government can balance its need for eminent domain with the rights and interests of its citizens.
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Just compensation
The Takings Clause, found in the Fifth Amendment to the United States Constitution, states that "nor shall private property be taken for public use, without just compensation". This clause recognises the government's power to seize private property, but only if just compensation is paid to the property owner.
The interpretation of "just compensation" is a complex issue. It is typically considered to be the fair market value of the property, excluding any personal or sentimental value. However, determining fair market value can be challenging, especially when the property is unique, leased, or has limited comparable sales. The market approach, income approach, and cost approach are some methods used to assess the value. The cost approach, for example, considers the cost of replacing a unique structure on the property.
The Supreme Court has ruled that just compensation is required even without formal seizure if government action significantly limits an owner's use of their property. This interpretation extends beyond land to include easements, personal property, trade secrets, and contract rights.
In cases of eminent domain, where the government exercises its power to take private property for public use, individuals may not consider fair market value as just compensation due to the non-monetary costs involved, such as the time, stress, and emotional connection associated with forced relocation.
The Takings Clause also prohibits the government from confiscating property for the sole private benefit of another individual or entity, even if just compensation is provided. This clause upholds the principle that the government should not single out isolated individuals to bear excessive burdens for a public good.
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The Bill of Rights
The Fifth Amendment to the United States Constitution is part of the Bill of Rights. The Fifth Amendment's "Takings Clause" is the last clause of the Amendment. The Takings Clause limits the power of eminent domain by requiring "just compensation" to be paid to the owner if private property is taken for public use. The Takings Clause does not prevent the government from seizing private property, but it does place a restriction on the government's power to do so. The government can only seize property if it compensates the owner.
The Takings Clause originated in section 39 of the Magna Carta, which stated that no private property could be taken without due process. When the U.S. Constitution was adopted, the founding fathers were concerned that the federal government would be too powerful, which led to the adoption of the Bill of Rights. The Fifth Amendment was included to protect citizens' rights, declaring that "no person shall be deprived of life, liberty, or property, without due process of law: nor shall private property be taken for public use, without just compensation."
The Takings Clause applies to both real and personal property, as well as intangible property such as easements and trade secrets. The government must compensate the property owner before taking possession of the property, although there are exceptions to this rule. If a dispute arises, a judge or jury will decide the amount of compensation due. The Supreme Court of the United States has reviewed the narrow Takings Clause in light of the increasing body of environmental law since 1970.
The Takings Clause originally applied only to the federal government. However, in 1897, the U.S. Supreme Court ruled in Chicago, B. & Q. Railroad Co. v. Chicago that the Fourteenth Amendment extended the effects of the Takings Clause to the states. This case involved the condemnation of privately owned property for a public use, and the Court interpreted "public use" broadly as any "public benefit."
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Frequently asked questions
The Takings Clause is found in the Fifth Amendment to the U.S. Constitution.
The Takings Clause states that "nor shall private property be taken for public use, without just compensation".
The Takings Clause allows the government to seize private property, but only for public use and if it provides "just compensation" to the property owner.
The courts decide whether a taking is for "public use". The federal courts have adopted an expansive interpretation of "public use" as any "public benefit".
The Takings Clause originated from section 39 of the Magna Carta, which stated that no private property shall be taken without due process.

























