The Commerce Clause Limitation on the Power to Condemn a Relocating Business

In recent decisions, the US Supreme Court has expanded the constitutional use of the sovereign power of eminent domain, and the California Supreme Court, in the case of City of Oakland versus Oakland Raiders (1982) established a legal foundation for the condemnation of a business for no other reason than to prevent its relocation. The use of local eminent domain power to prevent industrial relocation is a violation of the US Constitution. While the Court has not addressed the problem of protectionist condemnations, it has applied a per se rule of invalidity to state capture statutes that pressure industries to relocate within the regulating state and to state embargo statutes that prevent the exportation of natural resources. The argument of proponents of protectionist condemnations, that just compensation is provided, does not consider that such condemnations still affect the free movement of goods and serve to isolate states from the national economic community. Those who argue that the commerce clause should not limit the eminent domain power overestimate the legal and practical competence of local authorities to make or effect national industrial policy.