Lege TREND. State Constitution Limits Eminent Domain Against Businesses.

State: Louisiana

The eminent domain issue: A private dock entity, Violet Dock Port, had been operating in St. Bernardship parish. The Port Authority wanted to acquire its private competitor. Violet and the Port couldn’t agree on a price, so the Port Authority used eminent domain & began operating the Dock Port.

The Louisiana Constitution says: “no business enterprise or any of its assets shall be taken for the purpose of operating that enterprise or halting competition with a government enterprise.”

The Louisiana Supreme Court will have the final say. The lower courts have approved the use of eminent domain. NFIB and CATO point to the Lousiana Constitution business language limiting eminent domain in this instance in their pleadings before the LA Supreme Court.

CATO | Government Businesses Can’t Simply Take Over Property They’ve Been Unable to Buy