Michigan Legal Milestone

Harsh economic conditions and the need to attract high-paying manufacturing jobs to keep the automobile industry centered in the Motor City led the cities of Detroit and Hamtramck to join forces in 1980 to condemn a working-class neighborhood known as Poletown. Homes, businesses, churches, and a hospital were demolished to make room for a new plant to build Buick, Oldsmobile, and Cadillac automobiles.

While most residents were willing to sell their homes and businesses, some were not. A small, vocal group of protesters staged sit-ins and demonstrations that attracted national attention. They waged a public relations and legal battle against GM and the two cities, claiming that government could not use its power of eminent domain to transfer property from individuals to private corporations.

In a landmark 5-2 decision in March 1981, the Michigan Supreme Court rebuffed the challenge (Poletown Neighborhood Council v. Detroit), allowing GM to build a state-of-the-art plant employing up to 6,000 workers. It was an important ruling with national ramifications that set a new legal standard expanding the power of eminent domain by allowing the definition of public use to include economic development.

In 2004, the Michigan Supreme Court reversed its Poletown decision (County of Wayne v. Hathcock),



ruling that taking property for developing a business or technology park did not constitute a valid public use under the state's Constitution.

Placed by the State Bar of Michigan and the Detroit Metropolitan Bar Association, December 2, 2008.

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