The U.S. Court of Appeals for the Second Circuit in New York heard oral arguments in Goldstein v. Pataki, an appeal challenging the "Atlantic Yards" redevelopment in Brooklyn. At issue in the appeal is whether the plaintiffs had properly alleged that the effort to take their property by eminent domain was for a private purpose.
The district court dismissed the case for failure to state a claim under Fed. R. Civ. P. 12(b)(6), meaning that the facts alleged in the complaint, taken in the light most favorably to the property owners, did not sufficiently plead a cause of action for private benefit under Kelo. Recall in that case, the US Supreme Court held that under the Public Use Clause, courts generally defer to legislative determinations that property is needed for public use, but that if a property owner makes sufficient allegations that the taking is instead for a private purpose or use, a court should intercede. The question in the Goldstein appeal is whether the property owners allegations were sufficient, and whether the case should go to trial.
My initial post on the case, including a link to the property owners' opening brief here. More details here, including a link to the reply brief of the property owners, from the Atlantic Yards Report blog. A summary of the case, including pleadings and briefs is posted here.