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Volume 19 Issue 1
Yoga Teacher-Trainers
Tied up in Red Tape
Fighting Grassroots Tyranny &
2
Helping Entrepreneurship Flourish
2
February 2010
3
&LAW
New York:
Building Empires, Destroying Homes
Through Eminent Domain Abuse
By Dana Berliner court would not get involved. The majority’s
New York does absolutely everything opinion frankly acknowledges that its deci-
wrong with regard to eminent domain. Its sion opens the door to “political appointees
laws are hopelessly stacked against property to public corporations relying on studies paid
owners. It is one of only seven states in the for by developers . . . [as] a predicate for
entire country that failed to pass any emi- the invasion of property rights and the raz-
nent domain reform in response to the U.S. ing of homes and businesses.” But, it says,
Supreme Court’s infamous decision in Kelo preventing such abuses is not the job of the
v. City of New London. For years, New York’s courts, advising New Yorkers to look to their
lower courts turned a blind eye to the enor- legislature to fix any problems.
mous benefits afforded to private developers, New Yorkers must fervently hope that
outrageous behavior on the part of govern- their legislature decides to do something,
ment officials, and even blatant evidence that because eminent domain abuse in New York
the projects would be miserable flops. is completely out of control. At the same
Download this new report here: www.ij.org/
On November 24, 2009, New York’s time that it filed its amicus brief, IJ released BuildingEmpires.
highest court—the Court of Appeals—had an its statewide analysis, Building Empires,
opportunity to change all that. And instead, Destroying Homes: Eminent Domain Abuse through eminent domain in the past decade
it decided to make things even worse, in New York, which shows just how badly to allow for private development.”
solidifying New York’s status as the absolute New York agencies have been abusing their There is one glimmer of hope in the
worst state in the entire country for eminent power. courts—an appellate decision rejecting the
domain abuse. As Building Empires explains, “Over condemnation of private businesses for
The case—Goldstein v. New York State the past decade, a host of government Columbia University. Nonetheless, after the
Urban Development Corporation—challenged jurisdictions and agencies statewide have Court of Appeals decision in Goldstein, the
the plan to use eminent domain to hand over condemned or threatened to condemn New York courts certainly cannot be counted
privately owned businesses and homes in homes and small businesses for the New on to protect the rights of their citizens.
Brooklyn to private developer Forest City York Stock Exchange, The New York Times, IJ and the Castle Coalition have worked
Ratner as part of the Atlantic Yards develop- IKEA, Costco, and Stop & Shop. An inner- for years to reform New York’s eminent
ment project to create a new arena for the city church lost its future home to eminent domain laws and defeat individual projects.
New Jersey Nets and other surrounding pri- domain for a commercial development that We won a legal victory in the Brody case,
vate development. IJ submitted an amicus never came to pass. Scores of small busi- which vindicated the rights of a New York
brief explaining to the court that this was ness owners have been threatened with sei- property owner, and helped defeat a number
New York’s opportunity to follow the lead zure for a private university in Harlem and for of eminent domain projects across the state,
of the high courts of Hawaii, Missouri, New office space in Queens and Syracuse. Older but what is needed now is systemic legisla-
Jersey, Oklahoma, Ohio, Pennsylvania and homes were on the chopping block near tive reform that will protect New York property
Rhode Island, which all have begun imposing Buffalo, simply so newer homes could be owners and renters once and for all. After
greater judicial scrutiny and rejected pro- built. From Montauk Point to Niagara Falls, the latest decision from the Court of Appeals,
posed condemnations as not for public use. every community in the Empire State is sub- IJ will continue to fight until all in the Empire
Instead, New York issued what can only be ject to what the courts have accurately called State are free from eminent domain abuse.u
called a shameful opinion, punting on all the the ‘despotic power.’”
major issues. The Associated Press reported that IJ Dana Berliner is an IJ
senior attorney.
The court decided to simply accept the documented how New York is “‘a hotbed of
condemning agency’s assertions—if the gov- abuse,’ with 2,226 properties statewide either
ernment said it was for public use, then the condemned or threatened with condemnation
4
February 2010
5
&LAW
Constitutional Rights
Hanging by a Thread
By Wesley Hottot ing to their patients. The procedure is all- trade. This is no way for the government to
IJ’s cutting-edge constitutional litigation natural, time-tested and safe. act, especially in difficult economic times.
sometimes places Institute attorneys in strange Unfortunately, the state of Texas is In December, eight brave eyebrow threaders
circumstances. For example, when the IJ attempting to license eyebrow threading with- joined the IJ Texas Chapter to sue the state for
Texas Chapter recently launched its constitu- out even understanding what it is. violating their constitutional right to economic
tional challenge to the state’s oppressive cos- Eyebrow threading is not mentioned any- liberty. The Texas Constitution’s Privileges or
metology regulations, I found myself having my where in Texas’ cosmetology laws or adminis- Immunities Clause protects eyebrow thread-
eyebrows “threaded” on the steps of the Travis trative rules, but state cosmetology police are ers’ right to earn an honest living in the occu-
County courthouse. threatening to shut down threading businesses pation of their choosing free from arbitrary or
Eyebrow threading is an ancient grooming and prevent individual threaders from practic- excessive government regulation.
technique widely practiced in South Asia and ing their trade because threaders do not have The case has already generated sig-
the Middle East. Threaders, as practitioners Western-style cosmetology training. nificant media attention with stories in every
are commonly known, tightly wind a single The state announced its regulation of major media outlet in Texas; it even gener-
strand of cotton sewing thread, form a lasso threading by handing out staggering $5,000 ated a front-page mention in the Wall Street
and quickly brush the thread across the face fines to threading businesses and $2,000 Journal. Discouraged, the government’s
of their customers. Unwanted hair is trapped fines to individual threaders. lawyers quickly agreed to stay enforcement
in the lasso and effortlessly removed from its The state is now demanding that eye- against our clients until the court can con-
follicles. It is a painless procedure that I can, brow threaders spend $20,000 and one year sider our request for an injunction.
with some authority, recommend. (For a dem- of their lives in private, government-approved At the Institute for Justice, each attor-
onstration and brief video about the case, visit: beauty schools. Keep in mind that Texas ney would do nearly anything for our clients.
www.ij.org/3012.) beauty schools do not teach threading and the Having my eyebrows threaded on the steps
Eyebrow threading is a booming industry state cosmetology licensing examination does of the courthouse was the least I could do to
in Texas and around the United States because not test threading. educate the public about this
it is less expensive (just $10 or less), faster Senselessly, the state wants eyebrow safe, all-natural and soon-to-be-
(just 5 minutes or less) and more precise threaders—many of whom have more than 20 unlicensed practice.u
than waxing and other Western hair-removal years of experience—to learn hair styling, nail
techniques. It is also healthier for the skin. In care, makeup and a host of other irrelevant Wesley Hottot is an
IJ Texas Chapter staff attorney.
fact, dermatologists often recommend thread- practices that have nothing to do with their
6
February 2010
By Matt Miller
The government wouldn’t dream of telling
a television station that ads can only run on 15
percent of the screen, or telling a newspaper
that ads must be relegated to the bottom third of
each page. Yet many cities have no reservations
about setting similarly arbitrary, ill-advised and
ultimately unconstitutional restrictions on busi-
nesses that want to hang signs in their windows.
The IJ Texas Chapter recently filed a federal
lawsuit against the city of Dallas challenging just
Dallas store owner April Gilliland has joined with IJ to challenge the city’s ban on commercial signs in windows.
such a law. Dallas has banned all window signs
in the upper two-thirds of any window and pro- Window signs are incredibly important to cleaner, clothing store, travel agency, vacuum
hibits signs from covering more than 15 percent small businesses. Newspaper, television and business and two Fastsigns franchisees who
of a window. That means businesses can only radio advertising are expensive and often inef- have seen the effect of the new law firsthand.
display signs that are too small and too low to fective ways to advertise the local products and Many of our clients have been issued warnings
attract a potential customer’s attention—hardly services that small businesses tend to offer. and citations by city enforcers to remove their
an effective way to tell people about the prod- Instead, window signs—most of which cost signs or face fines of up to $2,000. Others
ucts and services offered inside. between only $25 and $200—allow small busi- want to keep the signs they have but feel they
This case challenges the notion that com- nesses to easily tell both regular and potential should not have to become scofflaws in order
mercial speech is entitled to less protection customers about products, services, sales and to do so. All of them are standing up for the
than political or artistic speech. As Justice weekly specials. First AmendmentDALLAS
right ofSIGN CODE owner
every business
Clarence Thomas said in 44 Liquormart v. Dallas claims the ban is necessary to inWHAT
Dallas AMOUNT OF SIGNAGE
to communicate IS ALLOWED?
truthful information in
Rhode Island, “I do not see a philosophical or improve community aesthetics and to allow their windows.
historical basis for asserting that ‘commercial’ police officers to see inside businesses. But Justice Thomas is right. IJ is fighting to
speech is of ‘lower value’ than ‘noncommercial’ deciding whether something is aesthetically vindicate the basic speech rights of small busi-
Neighborhood Market Neighborhoo
speech . . . . Nor do I believe that the only pleasing should not be the government’s job. nesses because the First Amendment protects
explanations that the Court has ever advanced And Dallas has no evidence that simple window all speech—even when it is printed GET YOUR
ICE COLD
S LUSHIE
INSIDE
for treating ‘commercial’ speech differently from signs make a business more vulnerable to in large type and hung in a store
T
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speech in order to keep information from legal nesses to have windows in the first place.
purchasers so as to thwart what would other- Our clients are a diverse and lively group Matt Miller is the IJ Texas Chapter
executive director. What about now that the
wise be their choices in the marketplace.” of small business owners. They
Is this include
signage a dry
allowed?
DALLAS
DALLAS SIGN CODESIGN CODE in the top two-thirds of a
WHAT
WHAT AMOUNT OFAMOUNT
SIGNAGEOF
ISSIGNAGE IS ALLOWED?
ALLOWED?
What amount of signage is allowed under the Dallas sign code?
Neighborhood
Neighborhood Market Market Neighborhood
Neighborhood Market Market Neighborhood Market
GET YOUR GET YOUR
T T 100 f ree
minutes
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before
after
Land that once housed a neighborhood of homes in New London, Conn., now lies barren.
By Scott Bullock
Supreme Court ruled against our clients—holding that
In 2001, Pfizer, Inc., moved to New London, Conn., taking property for “economic development” does not
as part of a project that involved massive corporate welfare violate the U.S. Constitution’s Takings Clause—the justices
and led to the abuse of eminent domain, culminating in stressed that there was a plan in place, and that so long as
the landmark U.S. Supreme Court case, Kelo v. City of New lawmakers who looked to use eminent domain for some-
London. This past November, however, Pfizer announced it one’s private gain had a plan, the courts would wash their
will close its New London research and development head- hands. Now, nearly five years after the redevelopment
quarters. This marks the end of an eminent domain error. scheme passed constitutional muster, the plant that was
New London created a redevelopment plan that gave the magnet for the development is closing its doors just
land to Pfizer at a nominal cost and provided free envi- as its tax abatements expire. The very land where Susette
ronmental cleanup to the site. The plan also called for Kelo’s home once stood remains barren—home to nothing
redevelopment of an area called Fort Trumbull, a working- but feral cats, seagulls and weeds.
class neighborhood adjacent to the Pfizer headquarters. It For years, the disastrous Fort Trumbull project will be
housed approximately 70 to 80 homes, as well as a few Exhibit A in demonstrating the folly of government plans
small businesses and an abandoned Navy base. The plan that involve corporate welfare and abuse eminent domain
called for this area to be replaced by an upscale hotel, for private development. Hopefully, city officials, planners
office buildings and new housing. This redeveloped area and developers will take the Fort Trumbull experience to
would “complement” the new Pfizer facility, leading to heart and pursue revitalization efforts only through volun-
increased taxes and job growth for New London—or so the tary, not coercive, means. Until they do, IJ
city promised. The state agreed to provide $78 million for will stand with property owners nationwide to
the project. Pfizer received an 80 percent tax abatement fight for what is rightfully theirs.u
for 10 years.
Keep in mind, when the five justices of the U.S. Scott Bullock is an IJ senior attorney.
8
February 2010
9
&LAW
&LAW
By Sarah Eisenhandler
When law firms recently decided to
defer incoming associates—paying them to
work at nonprofits for a period of time before
they are brought onboard fulltime during this
economic downturn—the Institute for Justice’s
fight for liberty reaped the reward and got
an infusion of new and dedicated talent.
Starting this past August, IJ’s inaugural class
of Constitutional Law Fellows—eight recent law IJ Senior Attorney Steve Simpson shares his
school graduates who pledged to work for IJ insights into the First Amendment with law
for a period ranging from ten weeks to one students.
year—began their legal careers “The IJ Way.”
Confident that IJ would provide me with
exceptional training opportunities and sub- Know A Freedom-Minded
stantive legal work, my law firm generously
IJ Constitutional Law Fellow Sarah Eisenhandler Law Student?
offered to sponsor my year-long fellowship at
IJ’s headquarters in Arlington, Va.
works to advance liberty. Suggest They Apply
As a strong supporter of IJ’s mission, characteristic of all of IJ’s litigation efforts, For IJ’s 2010 Conference
I was anxious to get involved in its everyday it is also a part of the fellows program. We
battles for individual liberty. The fellowship do not hesitate to help each other out with The Institute for Justice’s 2010 Law
program made sure I hit the ground running; our projects, and we genuinely enjoy working Student Conference will be held July 23-25
within days, I was part of IJ’s legal team fight- with each other toward the common goal of at George Washington University in downtown
ing against the federal ban on compensat- increasing liberty. I believe that the strong Washington, D.C.
ing bone marrow donors. Fresh out of law friendships I have formed with the other fel- The annual conference covers the
school, I was given this unique opportunity to lows will endure throughout our legal careers. Institute for Justice’s four litigation pillars:
help abolish unnecessary governmental regu- What began as an unexpected post-grad- free speech, school choice, economic liberty
lations. uate plan turned out to be a fantastic jump- and private property rights. The legal and
All of the fellows have played impor- start to my new legal career. In its inaugural political philosophy that undergirds IJ’s legal
tant and exciting roles in the development year, the Constitutional Law Fellows program efforts as well as the tactics of public interest
and litigation of IJ’s cases. Assisting with has provided a terrific way for new lawyers law we practice are taught alongside other
preparation for court hearings in IJ’s First to gain meaningful experience while working topics rarely discussed in law school, such as
Amendment challenges to restrictive cam- alongside talented and dedicated public inter- natural rights theory, cutting-edge constitu-
paign-finance laws, helping to launch IJ’s est lawyers. The program is proving to be an tional theories, media relations and the use of
lawsuit against Virginia’s misguided attempt to effective expansion to IJ’s continuing fight for social science research in public interest law.
license yoga instructors, and drafting briefs in individual freedom. If you know of first- or second-year law
IJ’s fight to save the Community Youth Athletic IJ is now accepting applications for 2010- students who are freedom-minded, encourage
Center in National City, Calif., from eminent 2011 Constitutional Law Fellows. To apply, them to visit www.ij.org/students for more
domain abuse are just a few examples. email a cover letter, resume and a legal writ- information and to apply.
Indeed, fellows are expected to partici- ing sample to IJ’s Special Projects Manager The conference application deadline is
pate in decision making and trial preparation Krissy E. Keys at kkeys@ij.org.u March 15, 2010.
just like any other member of the famed For more information, contact IJ’s
“Merry Band of Litigators.” And, just as Sarah Eisenhandler is an IJ Special Projects Manager Krissy E. Keys at
constitutional law fellow.
expressing a certain esprit de corps is a kkeys@ij.org.u
10
February 2010
Volume 19 Issue 1
“The case IJ and the yoga instructors will make is straightforward: Face-to-
face teaching is a form of free speech, as much as a textbook or videotape is.
Government needs a compelling state interest in order to regulate speech—and the
bar that determines what qualifies as ‘compelling’ is set very high. The common-
wealth’s rationale for interfering with yoga teacher-instruction doesn’t clear it. Pity
the poor state officials stuck with the task of justifying the regulations.”
11
“[IJ is] a nonprofit Institute for Justice Non-Profit ORG.
901 N. Glebe Road U.S. POSTAGE
P A I D
libertarian law firm Suite 900
I nstitute F o r
Arlington, VA 22203
J U S T I C E
on a mission to block
state governments
from overregulating.”
—The Wall Street Journal
I am IJ.
Julia Kalish
Leesburg, Virginia www.IJ.org Institute for Justice
Economic liberty litigation