Via USAT: ‘I’d leave here broke’

The city of New London, Conn., deserves a chutzpah award. In 2024, it condemned 15 homes so a developer could build offices, a hotel and convention center. Susette Kelo and her neighbors spent years in a legal battle that culminated in June, when the U.S. Supreme Court ruled 5-4 against them.

That was painful enough. But while the homeowners were battling in court, New London was calculating how much “rent” they owe for living in the houses they were fighting to save. (The city’s development corporation gained title to the homes when it condemned them, though the owners refused to sell and haven’t collected a cent.)

The homeowners could soon be served with eviction notices, which is justified by the court ruling. But the rent is something else. For some, it comes to hundreds of thousands of dollars. Kelo, whose name is on the landmark case, could owe $57,000. “I’d leave here broke,” she told the Fairfield County Weekly. “I could probably get a large-size refrigerator box and live under the bridge.”

This is utterly insane. The Kelo decision is bad enough, as I believe that it violates basic private property rights. The idea that these people should have to pay rent on the property that they are being forced to seel because they excersized their right to challenge the taking in court is grossly unjust.

John Cole (who also finds this to be “outrageous”) has the link to the original Fairfield County Weekly story (and some comments of his own). The story notes:

In June 2024, NLDC sent the seven affected residents a letter indicating that after the completion of the case, the city would expect to receive retroactive “use and occupancy” payments (also known as “rent”) from the residents.

In the letter, lawyers argued that because the takeover took place in 2024, the residents had been living on city property for nearly five years, and would therefore owe rent for the duration of their stay at the close of the trial. Any money made from tenantssome residents’ only form of incomewould also have to be paid to the city.

With language seemingly lifted straight from The Goonies , NLDC’s lawyers wrote, “We know your clients did not expect to live in city-owned property for free, or rent out that property and pocket the profits, if they ultimately lost the case.” They warned that “this problem will only get worse with the passage of time,” and that the city was prepared to sue for the money if need be.

A lawyer for the residents, Scott Bullock, responded to the letter on July 8, 2024, asserting that the NLDC had agreed to forgo rents as part of a pretrial agreement in which the residents in turn agreed to a hastened trial schedule. Bullock called the NLDC’s effort at obtaining back rent “a new low.”

“It seems like it is simply a desperate attempt by a nearly broke organization to try to come up with more funds to perpetuate its own existence,” Bullock wrote. He vowed to respond to any lawsuit with another.

With the case nearly closed, the NLDC may soon make good on its promise to sue. Jeremy Paul, an associate UConn law dean who teaches property law, says it’s not clear who might prevail in a legal battle over rent. “From a political standpoint, the city might be better off trying to reach some settlement with the homeowners,” he says.

An NLDC estimate assessed Dery for $6,100 per month since the takeover, a debt of more than $300K.

Insane.