By Scott Bullock

SusetteKelo’slittlepinkcottage—thehomethatwasthesubjectofalandmarkU.S.SupremeCourtcaseandanationalsymbolofthefightagainstemi-nentdomainabuse—willbesparedfromthewreckingball.Facedwithevictionandthedestructionofherbelovedhome,SusetteputforwardanideathatshehadoriginallyproposedwhenfirstthreatenedwitheminentdomainabuseandevenbeforeIJbecame

involvedinthecase:preservingthehomeandmov-ingit.Whenshefirstproposedthisidea,theNewLondonDevelopmentCorporation(NLDC)rejectedit.Now,theCity,NLDCandtheStateofConnecticuthaveagreedtothemove.Whilethepreciseloca-tionhasnotyetbeendetermined,thehousemaybemovedtoornearPequotAvenue,whichiswherethehomeoriginallystoodbeforeitwasmovedtoFort

Kelo continued on page 10

Susette Kelo Lost Her Rights,But She Will Keep Her Home

A LONG ROAD

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Volume 15 Issue 4

Hanging Signs in Minnesota

2

IJ’s Management & Efficiency Earns Charity Navigator’s

Top Rating for Fifth Straight Year

3

Making ProgressOne Year After Kelo

6

Defending the Free Flow of Information

In the “Live Free of Die” State

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August 2006

Published Bimonthly by the Institute for Justice

visit us online:www.ij.org

Inside This Issue

IJ Celebrates

15 Years

1991-2006

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�

By Nick Dranias

Hangingasigninvolvesthemostbasicskills—diggingahole,droppinginacoupleofposts,fillingtheholeandattachingaboardtotheposts.SoifyouwanttomakealivinghangingsignsinMinneapolis,youmightthinkallyouwouldneedtodoisopenyourbusinessandshowproofofinsurance. Youwould,however,besorelymistaken. InMinneapolis,would-besignhangers,likeIJclientsTruongXuanMaiandDanDahlen,needtheblessingofamid-levelofficialatCityHallwhohasunilaterallydeclaredthathewillnotapproveanyonewhoseekstoinstalleven“verysimple,non-illu-minatedsigns”—aperfectjobforstart-upentrepreneursbecausesuchanoccupationrequiresneitheragreatdealofeducationnorfinancialcapital.Atthesametime,thisofficialhasrefusedtoexplainjustwhatskilllevelisacceptabletohimbeforehegrantsasignhangerlicense.Anyonetryingtomakeanhonestlivinghanging“forrent”signs,forexample,musttrytomeetwhateverrequirementthegovernmentofficialdreamsupandhopeforthebest.InanationthatpridesitselfontheRuleofLaw,thisamountstoapplicantshavingtobowtotheRuleofMan. That’swhyDahlenandMaijoinedwiththeInstituteforJusticeMinnesotaChaptertofilealawsuitonMay4,�006,tostopMinneapolisfromwithholdingsignhangerlicensesfrom

entrepreneurswhomeettheobjectiverequirementsoftheCityCode. Afteraseriesofscandals,Minneapolis’CityCouncilenactedreformsinJuly�00�toeliminate“competencytesting”forsignhangersandothertrades.Unfortunately,theCouncil’sjobwasonlyhalfdone;itpreservedboundlessdiscretionoverlicenseissuance.Bureaucraticinterventioninthesignhangerlicensureprocessshowsthatgovernmentpower-grabsinevitablyresultfromlawsthatcreateauthoritytoregulatewithoutstandards. Those,likeMai,whohavetriedtoplaybyunknowableruleshavelostnumerousopportunitieswhiletheirlicenseapplicationslingerformonthsinbureaucraticlimboawaitingagov-ernmentalsealofapproval.Others,likeDahlen,seenopointinpursuingaMinneapolissignhangerlicenseatall. “Whenmygrandfatherriskedeverythingtostartourcompanyin1956,herailedagainsttheold-boynetworkthatpreventedhimfromget-

Opportunity

IJ Minnesota Chapter clients Truong Xuan Mai (left) and Dan Dahlen merely want to earn an honest living by hanging signs.

& Freedom

Signs of

For a copy of this report visit www.ij.org/publications/city_study

�

August 2006

tingalicenseinMinneapolis,”recalledDahlen,whosebusinessoperatesaroundMinneapolis,butnotwithinthecitylimits.“Thelawwassupposedlyreformedafewyearsago,butitsurelookslikebusinessasusualtome.” Onthe50thanniversaryoftheDahlenSignCompany,Dahlencouldnotseeabetterwaytohonorhisgrandfa-ther’sentrepreneurialspiritthantochal-lengethedescendantsofthebureaucracythatbarredaccesstotheMinneapolismarket.AndMai’sexperienceasa“boatperson”refugeewhoescapedcommunistVietnamduringthelate1970sgiveshimunusualcouragetofightCityHall. DahlenSignCompanyv.CityofMinneapolisadvancestheprinciplethatDanDahlenandTruongXuanMaishouldbefreetoworkassignhangers—notatthewhimofbureaucrats,butasamatterofconstitutionalright. ThelawsuitalsointroducedtheIJMinnesotaChapter’snewlypublishedstudy,TheLandOf10,000LakesDrownsEntrepreneursInRegulations,whichspot-lightsregulationsinMinnesotathatbarentrytooccupationsthatordinarilywouldattractstart-upentrepreneurs. Together,Dahlen,MaiandtheIJMinnesotaChapterarefightingtoensurethattheAmericanDreamcontinuestoshowsignsoflife,especiallyforsignhangers.u

Nick Dranias is an IJ Minnesota Chapter

staff attorney.

August 2006

�

IJwillcelebrateour15thAnniversarywithanOpenHouseonThursday, September 28.AllreadersofLiberty&Lawarewelcometojoinus! OurnewheadquartersarelocatedinArlington,Va.,justashortdriveorMetrorideacrossthePotomacRiverfromournation’scapital(seewww.ij.org/contact/map.html). We’llbeherealldayfortoursbeginningat8:�0a.m.andwillconcludewithareceptionbeginningat5:�0p.m.IJ’sPresidentandco-founderChipMellorwillsayafewwordsaround6:�0p.m. FormoreinformationortoRSVP,pleasecontactKrissyKeysatIJat(70�)68�-9��0ext.�01orkkeys@ij.org. HopetoseeyouonSeptember�8!u

15th Anniversary Open House,Mark Your Calendars!

Forthefifthyearinarow,theInstituteforJusticehasearnedthehighestrating(“4stars”)fromCharityNavigator(CharityNavigator.org),America’spremierindependentcharityeval-uatorthatevaluatesthefinancialmanage-mentandorganizationalefficiencyofmorethan5,000charitiesnationwide. Only82othercharitieshavereceivedfiveconsecutive4-starratings,makingIJamongjust1.6percentofcharitiesnation-widetoearnthisdistinction. Furthermore,IJisoneofonlyeight“publicbenefit”organizations—thinktanks,advocacygroups,publicpolicyinstitutions,andthelike—thatareincludedinthiselitefive-years-runninggroup. Wearepleasedtobeabletoreportsuchareturnonyourinvestmentandwewillcontinuetostrivetomaintainsuchhighstandards.u

F I V E

Y E A R S

HHHHF O U R S T A R S

IJ Among Charity Navigator EliteH H

HH

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4

By Chip Mellor

ThewisdomoftheFoundingFathersliesattheheartofIJ’swork.However,theinsightsofthreeintellectualgiantsofthe�0thcen-tury—MiltonFriedman,AynRandandFriedrichHayek—provideconstantinspirationaswell.WhatmakesthemsorelevanttoIJisthatweregularlyseetheirpredictionsandobserva-tionsaboutbureaucracyandgovernmentplayoutintherealworldinthecaseswetakeon.InthepasttwoissuesofLiberty&Law,aswellasthisissue,Ihighlightoneoftheseindi-vidualsandofferexamplesofhowtheInstituteforJustice’slitigationaddressesdirectlyboththeproblemsthesetitansidentifiedandthesolutionstheyoffered. NobelLaureateFriedrichHayekpro-foundlyinfluencedworldhistory,arareachievementforanyone,letaloneanecono-mist.AsThomasSowellrecognized,“Hayekwasthecentralpioneeringfigureinchangingthecourseofthoughtinthe�0thcentury.”Hayek’sinfluencecamefromhisbrilliantandcourageouscritiqueofcollectivismandsocial-isteconomies.Hisreasoningabouttheinevi-tabletyrannyandimpoverishmentthatcomesfromsocialistprogramshasbeenvindicatedrepeatedlyoverthepasthalfcentury. InawidearrayofbooksrangingfromtheacademicConstitutionofLibertytothemore

generallyaccessibleTheRoadtoSerfdomandTheFatalConceit,Hayekanalyzedtheinstitutions,incentivesanddecision-makingofsocialistandfreesocieties.Whilehisvastwrit-ingscoveredmanyfacetsofeconomicsandpoliticalphilosophy,hewasalwaysmindfulofthevitalroletheruleoflawplaysinmakingpossibleandmaintainingfreedom.Heunder-stoodthathumansarenotonlyimperfect,butthattheyrespondtoincentives,meaningthatiftheincentivesarewrong,evengoodpeoplewilldobadthings.Aconstitutionandtheruleoflawmustprovideagovernmentstructurethatgetstheincentivesrightforboththepub-licandprivatesectors. ThisiswhereHayek’sinsightsmostdirectlyplayoutintheworkoftheInstituteforJustice.Tounderscoretheurgencyofourmis-sioninthespeechlaunchingIJ15yearsago,IquotedHayek,“Weliveinsuchaperiodoftransformationofthelawbyinnerforces...that,iftheprincipleswhichatpresentguidethatprocessareallowedtoworkthemselvesouttotheirlogicalconsequences,lawasweknowitasthechiefprotectionofthefree-domoftheindividualisboundtodisappear.”Recognizingthis,westrivetorestoreconsti-tutionallimitsongovernmentauthority.Suchlimitswouldsolidifytheinstitutionalarrange-mentsbetweenthethreebranchesofthefed-

eralgovernment,thestatesandtheindividualthatnotonlyrestrictthepowerofgovernment,butalsoprovideincentivesforproductivecompetitionandpeacefulinteractionbetweenindividuals.Onlyundersuchanarrangementisitpossibleforindividualstocontroltheirowndestiniesasfreeandresponsiblemembersofsociety. It’salltooeasyfortheruleoflawtobediminishedasHayekforewarned.Decadesago,theU.S.SupremeCourtrelegatedeco-nomiclibertytosecond-classstatusundertheConstitution.Todayinourlitigationtosecureconstitutionalprotectionforeconomicliberty,wemustovercomeacourt-createdlegalstan-dardcalledthe“rationalbasistest.”Underthistest,alawregulatingeconomicauthoritywillbeupheldifitserves“anyconceivablepurpose”—evenifnosuchpurposewascon-sideredbythelegislaturewhenthelawwasenacted.Thisleadstogovernment-protectedcartelsandoutrageouslyburdensomecondi-tionsimposedonperfectlylegitimateoccupa-tions.Hayekforesawtheinevitabilityofsuchexcesswhenhewrote,“Thechiefdangertodayisthat,onceanaimofgovernmentisacceptedaslegitimate,itisthenassumedthatevenmeanscontrarytotheprinciplesoffree-dommaybelegitimatelyemployed.” Hayek’sinsightsonincentivesandthe

Thinkers of Freedom and IJ:Challenging Limits on Government Authority

Ayn Rand Milton FriedmanFriedrich Hayek

5

August 2006

lawarepainfullyevidentinthepracticeofeminentdomainabuse.Whenthelegalrulesallowaprivatecompanytotakesomeoneelse’sprivateproperty,soonotherwisedecentpeopleinrespectablebusinesseswillbefoundmakingthecaseforsuchtakings.Andacompanywillquicklyrationalizethatitactuallyhasafiduciaryobligationtoitsshareholderstotakeadvantageofeminentdomain,becauseifitdoesn’t,acompetitorwill.Similarly,asHayeknoted,“Thedangersof[cityplanning]comelargelyfromthedesireofmanyplanners[andtodayonewouldaddmanydevelopers]tobereleasedfromthenecessityofcountingallthecostsoftheirschemes.”Withoutaruleoflawrespectingprivateproperty,suchincen-tiveswillleadtoanever-increasingnumberofeminentdomainabuses.(SeeIJ’srecentlyreleasedreport,OpeningtheFloodgates:EminentDomainAbuseinthePost-KeloWorld,www.CastleCoalition.org/kelo.) Manyliberalstodayarguethatcourtsshouldrespectdemocracyandnotsecond-guesslegislatures,particularlyinpropertyandeconomicaffairs.Likewise,manyconserva-tivespayhomagetojudicialrestraintthroughwhichcourtsdefertolegislaturesandleaveinplaceevenwronglydecidedprecedents.TheInstituteforJusticeseeksjudicialengagementthroughwhichcourtsperformtheinstitutionalrolethattheFoundingFathersenvisioned,withcourtsprotectingbasicindividualrightsfromlegislativeandexecutiveabuse.Indoingso,wealignwithHayek’sadmonitionthat,“Bygivinggovernmentunlimitedpowers,themostarbitraryrulecanbemadelegalandinthiswayademocracymaysetupthemostcom-pletedespotismimaginable.” FriedrichHayeklivedtoseemanyofhispredictionscometrue.Yetheknewthatthestruggleforlibertyrequiresconstanteffortandresiliencyinthefaceofadversity.Hayeksaid,“Ifinthefirstattempttocreateaworldoffreemenwehavefailed,wemusttryagain.”AtIJwewillremainresilientadvocatesforliberty,takingheartfromHayek’scour-ageandwisdom.u

Chip Mellor is IJ’s president and general counsel.

5

August 2006

Student Award WinnerPersonifies IJ Clinic’s

Support Of Inner-city Entrepreneurs

By Beth Milnikel

TheIJCliniconEntrepreneurshipattheUniversityofChicagoLawSchoolrecentlynamedJamesLangdonasits“�006EntrepreneurialAdvocateoftheYear.”TheawardisgivenannuallytothegraduatingstudentwhomostembodiestheIJClinic’sefforttofosterandsup-porttheentrepreneurialspiritininner-citycommunities.TherewereseveralcontendersamongJames’peersthisyear.Manyofthethird-yearlawstudentshaddevelopedcloserelationshipswiththeirclients,andtheirclientsturnedtothemregularlyforencouragementandsoundadvice.TheseseniorstudentsalsobecamerolemodelsfornewstudentsintheClinicandfacilitatedbothlearningandfunduringofficehours.

Evenso,Jamesstoodout. Jamesapproachedeachappointmentandassignmentwithexceptionalprofes-sionalismandenergy.Heconsistentlywenttheextramile—frompreparingafolderofinformationalmaterialsforaninitialinter-viewtocreatingaspreadsheetforaclienttouseincalculatinghisprofitmarginsinanewlineofbusiness.WiththeknowledgeheaccruedstudyingfortherigorousCPAexamsinadditiontohislawschoolcourseload,Jamescouldofferourclientsin-depthadvice,andhedidsoindefatigably.NotevengraduationcouldconvinceJamestostopworkingfortheIJClinic.Facedwithsayinggoodbyetoafavoriteclientinthemiddleofformingabusiness,Jamesarrangedforafellowshipsohecouldcon-tinueworkingoverthesummerwhilealsostudyingforthebarexam.

Thankfully,Jameswillnotbegoingfaraway.Thisfall,hewillstartwork-

inginthecorporategroupatthefirmSidleyAustininChicago,andwe

knowwewillkeephiminvolved.u

Beth Milnikel is direc-tor of the IJ Clinic on

Entrepreneurship.

IJ Clinic on Entrepreneurship client Eric Knowles listens intently to the legal strategy student James Langdon has mapped out for Mr. Knowles’s T-shirt screenprinting business.

LAW&

6

What a Difference A Year Makes!One Year After Kelo Decision

Legislatures Nationwide Pass Reform

6

By Steven Anderson Theone-yearanniversaryoftheU.S.SupremeCourt’snow-infamousKelodecisionbroughtmanymilestonesfortheCastleCoalition—IJ’snationalgrassrootsnetworkofindividualsfightingeminentdomainabuse.Inthewakeofthisunconscionabledecision,theCastleCoalitionhasonlyfoughtharderandexperiencedunprecedentedgrowth—inmembers,inpersonnelandinsuccesses—overthepastyear. ThereisnobetterindicationoftheCastleCoalition’ssignificanceinthedebateovereminentdomainabusethanthesuccesseswehelpedhomeownersearninmorethanhalfofthestatelegisla-turesthatmetpost-Kelo.Seizingontheopportunityathand—tocabinoffatthestateleveltheHigh

Court’sblessingofnearlyunrestrainedgovernmentpower—theCastleCoalitionlaunchedanunprecedentedeffortinbothsizeandscope;theCastleCoalitionworkedatoneleveloranotherwithnearlyeverysinglestatelegislatureandtheU.S.CongresstoensurestatutorylawprotectswhattheU.S.SupremeCourtabandoned. TheCastleCoalitionhiredthreenewstaff,includingoneattorneytoserveaslegislativecounsel.Ourattorneystestifiedbeforelegislativecommitteesin19statesaswellastheU.S.Congress.Weprovidedwrittentestimony,statementsorbriefingsin1�otherstatesanddebatedtheissueindozensofsettings.Supportingthatout-reach,theCastleCoalition.orgwebsitewas

completelyredesignedandbecamethego-tositeforfightingeminentdomainabuse. Thefruitsofthiseffortweresignificantreformsprotectingpropertyowners.Forty-fivestatesconsideredlegislationtoreformtheireminentdomainpractices.Twenty-eightenactedlawscurbingtheabuseofeminentdomainforprivateuse.(Somestates,likeFlorida,passedsweepingandveryeffectivereformswhileafew,likeDelaware,passedreformsthatweremoresymbolicthansubstantive.)In14states,newlawshavemadeit(orwillmakeit,aftertheyareapprovedbyvoters)eitherimpossibleorextremelydifficulttousebogus“blight”designationstotakeordinaryhomesandbusinessesforprivatedevelopment.Giventhatthevastmajorityofeminentdomainabusesoccurthroughtheuseofthosedesignations,thatisverymeaningfulreform.Andatthefederallevel,theU.S.HouseofRepresentativesover-whelminglypassedthePrivatePropertyRightsProtectionActof�005inNovember.MoreworkremainstobedoneintheSenatewherereformremainsstalled. Alloftheseamounttoprettyremarkableresultsforoneyearofworkbyanorganizationthat(byitsmissionanddesign)rarelyengagesinlobbying. IJmaintainedthetermsofthedebateontheissueofeminentdomainthroughouroriginalresearchreportsandpublications.BuildingonDanaBerliner’sgroundbreakingwork,PublicPower,PrivateGain,theCastleCoalitionremainstheonlynationalorganiza-tionprovidinginformationonthewidespreadabuseofeminentdomainwithsuchregularityanddepth.Intheweekleadinguptotheanniversary,forinstance,wereleasedsevennewreportsincludingDana’sOpening

theFloodgates:EminentDomainAbuseinthePost-KeloWorld.Thisreportdocumentedamarkedincreaseinthethreateneduseof

Since Kelo, non-traditional alli-ances have emerged to lobby for eminent domain reform. A panel of leaders from those organizations spoke at this year’s Castle Coalition conference (left). Castle Coalition Coordinator Steven Anderson (right) and IJ Staff Attorney Bert Gall (far right) discuss ways of stopping emi-nent domain abuse.

(Top) IJ Senior Attorney Dana Berliner speaks to media at the launch of seven new Castle Coalition publications. (Above) President and CEO of BB&T John Allison inspires Castle Coalition conference attendees.

7

August 2006

eminentdomainforprivatedevelopmentafterKelo.Floodgatesdocumentsthatinjustthepastyear,morethan5,700propertiesnationwidehavebeenthreatenedortakenwitheminentdomainforprivatedevelopment—morethantripletheannualabusewehadearlierdocumentedoverafive-yearperiod. Wealsoissuedanumberofsmallerworks.One,MythsandRealitiesofEminentDomainAbuse,takesthetalkingpointsofeminentdomainabus-ersandmethodicallydebunkseachoneofthem.RedevelopmentWrecks:�0FailedProjectsInvolvingEminentDomainAbusedetailsprojectsnationwidethatusedeminentdomainforprivatedevelopmentpurposes,butneverliveduptoexpectations. Oneofthemostpopularfeaturesonourwebsite,CastleCoalition.org,istheEminentDomainAbuseSurvivalGuide,whichprovidesthetipsandtechniquesusedbyhomeandsmallbusinessownerstoprotecttheirpropertyoutsidethecourtroom.Werealized,however,thatwewerenotreachingasmanypeopleaspossible,becausetheSurvivalGuidewasonlyavail-ableonline.(Seniorcitizensandthepoor,whoareespeciallytargetedforeminentdomainabuse,oftendonothaveInternetaccess.)Tomitigatethatproblem,wecompletelyrevisedandupdatedtheSurvivalGuideinaprinteditiontoincludeevenmorestrategies,par-ticularlyastheyrelatetolegislativechange.What’smore,thebackcoverevendoublesasasignforuseatralliesormeetings. Toassistthosewhowanttoknowwhatreformwaspassedorrejectedbylegislatorsintheirstate,weissuedasummaryoflegislativeactivityonemi-nentdomainsinceKelo.Thepublicationnotesall

thechangesmadein�8states—andallthechangesthatstillremain

necessary.Thesummaryincludesamapsoanyonecaneasilyseethelevelofprotectionhisorherstateoffersuponthecompletionofitslegislativesession. ButJunewasnotallaboutthewrittenword.TheCastleCoalitionalsohosteditsfifthannualnationalconferenceinournewhometownofArlington,Va.Thisyear’seventwasunlikeanywehavehadbefore;theattendancetripledthatofanyofourpreviousconferencesandwecompletelyrevampedtheagenda.Thechangesweremade,inpart,becauseoftheachievementsofourregionalconferences—ahalf-dozeninall,heldinsitesfromNewJerseytoCalifornia,sincetheKelodecision.WewerepleasedtohearaddressesfromBB&TCEOJohnAllisonandAnaheimMayorCurtPringle—bothofwhomalsoreceivedtheCornerstoneAward,giventoindividualswhotakestrongstandsagainsttheabuseofeminentdomain. Participantsalsoheardanumberofpaneldis-cussions,featuringmembersofthemedia,activistsandlegislators.AmongourpanelistswereHilaryShelton,directoroftheNAACP’sWashingtonBureau,BrentWilkes,nationalexecutivedirectoroftheLeagueofUnitedLatinAmericanCitizens,andReverendBrendaGirton-Mitchell,associategeneralsecretaryofpublicpolicyfortheNationalCouncilofChurches—eachofwhomguidedpropertyownersonhowtoworkwiththelocalchaptersoftheirorganizations.SusetteKelogavearousingkeynotespeechonSaturdayeve-ningandourintensiveactivistworkshoptookplaceSundaymorning.Itwas,byallaccounts,themostsuccessfulconferenceyet. Althoughwe’vehadasignificantamountofgoodnewssinceJune�005,theissueofeminentdomainabuseremainsacrucialone,onewewillstrivetokeepintheheadlinesandinthelegislatures.Anduntileveryperson’shomeistrulyhisorhercastle,we’llcontinuethepressureaswealwayshave—throughactivism,trainingandcut-ting-edgeresearch.u

Steven Anderson is the Castle Coalition coordinator.

What a Difference A Year Makes!One Year After Kelo Decision

Legislatures Nationwide Pass Reform Reports Available On-line

IJ President and General Counsel Chip Mellor pres-ents Mayor Curt Pringle with the Cornerstone Award for not using eminent domain in redevelopment projects in Anaheim, Calif.

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IJ Defends Free Flow of Information In “Live Free or Die” State

By Valerie Bayham

“Ifyoucanclickamouse,youcansellyourhouse,”boastswww.ZeroBrokerFees.com,anInternetadvertisingservicethathelpshom-eownersselltheirhomesthemselves.Tappingintothefactthatmorethanthree-quartersofhomebuyersresearchhousesonlinewhilerealestateagentscontinuetochargesky-highcom-missions,EdWilliamsandFrankMackay-SmithfoundedZeroBrokerFees.comin�004. EdandFrankbelievetheyhavestrucktheperfectcombinationofdo-it-yourselffirepowerandabroadsupportnetworkoffriendsinthefield.Byprovid-ingbasicinformationabouthowtosellorbuyahomepluslinkstoappraisers,mortgagecompanies,titlecompaniesandevendiscountbrokers,consumersareabletomakeaninformedchoiceaboutwhethertogoitaloneorusearealestateagent. BasedjustoutsideofBoston,Mass.,thecompany’swebsitelistsmorethan14,000homesforsale.Notbadforastart-up.ButthesitehasonlyafewlistingsinnearbyNewHampshire.Fearfulofunfriendlygovernmentbureaucrats,ZeroBrokerFees.comhasbeenreti-centtoadvertiseinthe“LiveFreeorDie”state. UndercurrentNewHampshirelaw,companiesthatadvertiseandlisthomesorpropertiesforafeeneedarealestatebrokers’license.Whilenewspapersandotherpublica-tionsofgeneralcirculationareexemptedfromcompliance,thereisnosimilarexemptionforwebsites.Unfortunately,theRealEstateCommission,whichischargedwithprotectingthepublic,hasalreadygoneafteronefor-sale-by-ownerwebsitewhenlocalrealestateagentscomplainedthattheywerelosingbusiness. BusinessmenlikeEdandFrankhavebetterthingstodothancompletea60-hourbrokeringcourseandapprenticeforayearwitharealestatebroker—particularlywhenthewebsitesim-plyprovidesgeneralinformationandanadver-

tisingforum,exactlylikeanynewspaperinthecountry.Butwithfinesofupto$�,000perlist-ing,theRealEstateCommissionhasthepowertoshutdownthesesuccessfulentrepreneurs. Thankfully,theInstituteforJusticeistheretoremindNewHampshirebureaucratsthatfreespeechrightscan’tbesoldawaytoprotectafavoredcartel.InJune,theInstitutefiledsuitintheU.S.DistrictCourtofNewHampshire,usingtheFirstAmendmentto

protectZeroBrokerFees.comandotheronlineadvertisers. TheFirstAmendmentguaranteesthatindividualsmayspeaktheirmindsandcommunicateinformationwithouttheapprovalofgov-ernmentcensors.Afterall,wedon’trestrictthefreeflowofinformationaboutmedi-

cinetoonlydoctors,andwedon’tletonlypoliti-cianstalkaboutpolitics.Realestateagentsshouldnothaveamonopolyonprovidinginfor-mationaboutrealestatemarkets.Inanationthatvaluesfreespeech,InternetadvertiserslikeZeroBrokerFees.comshouldbefreetospreadthenewsabouthomesforsale. BorrowingapagefromourvictoryinForSaleByOwner.comv.Zinneman—asimilarfor-sale-by-ownercaseinCalifornia—IJseekstoestablishthatsuchwebsiteentrepreneurshavethesameFirstAmendmentrightsasnews-paperpublishers.Justbecausetheyoperateonlinedoesn’tmeantheyshouldbetreatedassecond-classcitizens. WhileprotectingtherightsofbusinessmenlikeEdandFrank,IJwillalsobeprotectingcon-sumers.Whenbureaucratsshutdowninnova-tivebusinesses,consumershavefeweroptionsandfacehighercosts.Homeowners—notbureaucrats—havearighttodeterminehowbesttoadvertiseandselltheirhomes.WithIJonthecase,politicallyconnectedreal-torswon’tbeabletostopthem.u

Valerie Bayham is an IJ staff attorney.

InstituteforJusticesupporterscannowwatchandlistentoIJinactioninthecourtroom!TwoimportantfreespeechcasesrecentlyarguedbyIJinWashingtonStatecourtroomsmaynowbeviewedonline. OnJune6,IJSeniorAttorneySteveSimpsonarguedbeforethe9thU.S.CircuitCourtofAppeals,urgingthecourttoupholdadistrictcourtdecisionstrikingdowntheCityofRedmond’sbanoncommercialsignsforourclient,BlazingBagels.Theargumentsinthecasecanbeheardatwww.ij.org/media/watch. Twodayslater,onJune8,IJWashingtonChapterExecutiveDirectorBillMaurerarguedbeforetheWashingtonSupremeCourtseekingareversalofasuperiorcourtdecisionholdingthaton-airdiscussionsofaninitiativecampaignbyradiotalkshowhostscouldbeconsideredcontribu-tionsthatareregulatedundertheState’scampaignfinancelaws.Theargumentscanalsobeviewedatwww.ij.org/media/watch. Asmorecourtstransmitargu-mentsovertheInternet,IJwillcon-tinuetoletitssupportersknowwheretheymayseeandhearIJ’sattorneysinaction.u

Watch and Listen to IJDefend Free SpeechIn Washington Courtrooms

“The Institute for Justice is there to

remind New Hampshire bureaucrats that free speech rights can’t be sold away to protect a

favored cartel.”

9

August 2006

By Shaka Mitchell

TheInstituteforJusticerecentlyscoredyetanothervictoryforentre-preneursandconsumers,thistimeinMissouri.ThevictorytherebelongednotonlytoIJ,butalsotoaspecialmemberofourHumanActionNetwork(HAN)—IJ’sgrassrootsassociationofindividualswhohavegraduatedfromtheInstitute’spublicinteresttrainingprogramsandwhostayconnectedtotheInstituteforJusticeasvolunteerswhencasesariseintheircity,stateorareaofinterest. InaconsentjudgmentissuedinMay,theStateBoardofEmbalmersandFuneralDirectorsagreedthatretailcasketsellerscouldsellcasketswithoutafuneraldirector’slicense.AtissueinthiscasewaswhetherLarryGegner—aconsumeradvocatefromBuffalo,Mo.,whohasspentthebetterpartofhislifesellingcasketsandteachingconsumersabouttheoften-inflatedcostsassociatedwithburials—couldsharehisknowledge. Larry’sargumentwasstraightfor-ward:peopleshouldhavetherighttoteachandlearnaboutsomething

soimportantashowtoburyafamilymemberwithoutgettingrippedoffbythefuneralcartel.AcomplicatingfactorforIJ,however,wasLarry’sremoteloca-tionwherethelitigationwouldproceed:aboutthreehourssouthwestofSt.Louisinthecentralpartofthestate. EnterHumanActionNetworkmem-berEdMartinfromSt.Louis. AttorneysconnectedwiththeInstituteforJusticeusuallylearnaboutourworkeitherbyattendingIJ’sannuallawstudentconferenceorbyclerkingatouroffice.Dedicatedadvocatesforlib-ertylikeEdMartindoboth.Edattendedour�001LawStudentConferencewhileclerkingfortheInstitute,andthenpro-videdinvaluableassistancewhenthetimecametorepresentLarryGegner. WhenEdandIJStaffAttorneyValerieBayhamvisitedtheGegnerstolearnmore,bothattorneyssoonrecog-nizedthiswasacaseforIJ.Ednoted,“WhatbecameclearwasthatLarryhaddonehishomework—learningaboutthecostsofcasketsandfunerals—andwantedtosharethatinformationwith

hisfellowcitizens.Thereisnowaythegovernmentshouldstandinthewayofthosewhoaremerelytryingtoconveytruthfulinformation.” Likewise,HANmembershaveinfor-mationtheywanttosharetoadvancefreedom.Whetherassistinginclientinterviews,casefilingsoramicusbriefs,attorneysintheHumanActionNetworkusetheirlegalskillstopromotelibertynationwide. Lawyersoftenbelongtoprofes-sionalassociationsthatshowfewresults.OneneedlooknofurtherthanLarryGegnerinBuffalo,Mo.,toseehowIJ’sHumanActionNetworkcontinuestobearfruityearafteryear.So,ashun-dredsofMissouriansreaptherewardofLarry’slabor,wesay“thankyou”toEdMartinandthehundredsofHANmem-bersthatlaboronbehalfofliberty.u

Shaka Mitchell is IJ’s out-reach coordinator.

Lending A Helping HANd

Human Action Network (HAN) member Ed Martin joined with IJ to champion economic liberty on behalf of a Missouri funeral consumer advocate.

LAW&

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Trumbullmorethan100yearsago.There,thehome,likeKelo’spropertyinFortTrumbull,willbeveryclosetotheLongIslandSound. TheCityandtheremaininghomeown-ershadbeenatanimpasse.TheCitygavethemaMay�1deadlinetoacceptasettle-mentorfaceeviction.Twoofthehomeown-ers,SusetteKeloandtheCristofarofamily,refused.Anotherwell-knownpropertyownerinthecase,theDeryfamily,reachedasettlementwiththeCitybecauseofthefamily’schangedcircumstances.InMarchofthisyear,WilhelminaDery,thewomanwhohadlivedinherhomeinFortTrumbullherentirelife,passedaway,andherhusband,Charles,wasunabletokeepupthehouse.DespitetheSupremeCourtdecision,Mrs.Derywasabletospendherremainingtimeinherhome,andshediedjustafewfeetawayfromwhereshewasborntheyearWorldWarIended. ThedecisiontoleaveFortTrumbullwasaverydifficultoneforSusettetomake.ThreatenedbyatyrannicalCityCouncilthatrefusedtoletherstaywhereshewas,heronlyotherrealoptionwastoengageincivildisobedienceandlettheCitytrytoevictherfromherhome.Butthatmeantthechaos

ofaforcedremoval—somethingherfivesonsdidnotwanttoseehergothrough—and,attheendoftheday,thebulldozingofthehomethatmeanssomuchtoherandtherestofthenation.Withthose“choices,”shedecidedtorevivehercompromiseproposalofseveralyearsago.BecauseoftheshiftingpoliticaldynamicinthewakeoftheKelodecision,thistimethepowers-that-beacceptedherproposal.Also,asSusettepointsout,notonlywillshebeabletocontinuetoliveinhercher-

ishedhome,shewillalsoonceagainliveinaneighborhoodratherthanademolitionzone.Thehomewillcontinuetoserveasatributetoherbravestruggleandasapowerfulsymbolofthefighttostopland-grabsbycitiesandtheirdeveloperallies.Whilenofirmdetailsareyetinplace,Susette’shomeisexpectedtobemovedsometimeinthenextyear. WhileSusette’sagreementsignifiesherdeepattachmenttoherhome,theagreementreachedwiththeotherremaininghomeowner,theCristofaros,reflectsthefamily’sdeepaffili-ationwiththeFortTrumbullneighborhood,wheretheyhavelivedformorethan�0years.

AlthoughtheCristofaroswilllosetheircurrenthome,undertheagreement,theCityandtheNLDCwillsupportanapplicationformorehousinginFortTrumbull,andtheCristofarofamilyhasanexclusiverighttopurchaseoneofthehomesatafixedprice.Moreover,aplaquewillbeinstalledintheFortTrumbullneigh-borhoodtocommemoratethelossoffamilymatriarchMargheritaCristofaro,whopassedawaywhilethebattleagainsteminentdomainabuseoccurredinNewLondon.TheCityalso

hasagreedtomovethetreesthatfatherPasqualeCristofarotransplanted�0yearsago,whenthepreviousCristofarohomewastakenby

eminentdomain. TheKelocasewastrulyhistory-making.Ittouchedoffafirestormofcontroversyandanationalgrassrootsbacklash,which,asdocumentedbyCastleCoalitionCoordinatorStevenAndersoninourstoryonpage6,continuestotransformthenation.Anditallstartedwithalittlepinkhome,whichwillstillproudlystandwithSusetteKeloandherhusbandinside.u

Scott Bullock is an IJ senior attorney.

Kelo continued from page 1

“The Kelo case was truly history-making. It touched off a firestorm of controversy and a national grassroots

backlash, which continues to transform the nation.”

the little

PINKH O U S E

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August 2006

Volume15Issue4

About the publicationLiberty & LawispublishedbimonthlybytheInstituteforJustice,which,throughstrategiclitigation,training,communicationandoutreach,advancesaruleoflawunderwhichindividualscancontroltheirdestiniesasfreeandresponsiblemembersofsociety.IJlitigatestosecureeconomicliberty,schoolchoice,privatepropertyrights,freedomofspeechandothervitalindividualliberties,andtorestoreconstitutionallimitsonthepowerofgovernment.Inaddition,IJtrainslawstudents,lawyersandpolicyactivistsinthetacticsofpublicinterestlitigation.

Throughtheseactivities,IJchallengestheideologyofthewelfarestateandillustratesandextendsthebenefitsoffreedomtothosewhosefullenjoymentoflibertyisdeniedbygovernment.

Editor:JohnE.KramerLayout&Design:DonWilson

Howtoreachus:

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Website: www.ij.orgE-mail: general@ij.org

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Forhisachievementsinadvanc-ingthecauseoflibertyinawidevarietyofcases,theInstituteforHumaneStudies(IHS)namedIJSeniorAttorneyScottBullockthewinnerofthefourthannual“CharlesG.KochOutstandingAlumniAward.”BullockattendedIHSseminarswhilehewasacol-legestudentandinlawschool.Inadditiontohislitigationandpublicadvocacyindefenseofpropertyrights,freespeechandotherconsti-tutionalcausesatIJ,hefrequentlylecturesatIHSprograms,helpingtoteachandinspireanothergenerationoffightersforfreedom. TheannualIHSalumniawardisnamedinhonorofWichitabusinessmanCharlesG.Kochinrecognitionofhislong-timesupportandhiskeeninterestincultivatingtalentedyoungpeopletoadvancetheprinciplesandpracticeoffreedom.Eachyear,onealumnusofIHSprogramswhoismakingsignificantcontributionstowardthatendisgiventheaward.u

IJ Attorney Scott Bullock Wins Koch Award

IJ 2006 Summer Clerks Our 2006 summer clerks and interns are providing excellent legal research and assistance for IJ. They are from left to right, Shannel Wheeler, Carina Cilluffo, Matt Tievsky, Erin Lichtenstein, Andrew DeLaney, Hallee Morgan, Laurie Proctor, Michael Hawrylchak, Max McCann, Marisa Maleck, Alex Potapov, Jessica Wilson, Russell Knight, Tom Meyerson and Jared Morris. (Not pictured are IJ-AZ clerks James Manley and Carrie Ann Sitren, IJ-MN clerks Stuart Nostdahl and Peter Gregory and IJ-WA clerk Rebecca Penn.)

Institute for Humane Studies President Marty Zupan presents IJ Senior Attorney Scott Bullock with the IHS alumni award.

NON-PROFIT ORG.U . S . P O S T A G E P A I DMERRIFIELD VAPERMIT NO. 6418

www.IJ.org

Institute for Justice901N.GlebeRoadSuite900Arlington,VA22203

Institute for JusticeEconomic liberty litigation

Truong Xuan MaiMinneapolis, Minnesota

F I V E

Y E A R SHHHH

F O U R S T A R S

IJ’s management &efficiency earned

Charity Navigator’s highest rating for the fifth consecutive year.

pg.3

I escaped oppression by communists in Vietnam.

Now, a Minneapolis bureaucrat seeks to take away my American Dream of providing for myself by hanging signs.

Thankfully, our Constitution protects my right to earn an honest living.

I am standing my ground, and I will fight.

I am IJ.