Property rights are integral to the freedom and prosperity
that Americans enjoy in the twenty-first century, although their
centrality has often been disparaged and their long and esteemed
historical pedigree doubted. Yet the provenance of these rights
can be traced back to King Johns acquiescence to Magna Carta
in 1215. Early English property law that followed in its wake
would greatly influence property law in the United States. In
transmitting the English property rights tradition to American
soil, the most important conduits were the commentaries written
by Lord Edward Coke (1552-1634) and Sir William Blackstone (1723-1780),
both of which were eagerly read in America in the colonial period,
by the framers of our Constitution, and by their early successors
both in politics and on the bench.
Scholars in recent years have tended to view property rights in
our formative years from the creation of our new nation
to the early 1870s, shortly after the ratification of the Fourteenth
Amendment through the prism of our own era, which is much
less enamored of the rights of property than were our forebears.
Overlooked in the contemporary interpretation is the strong endorsement
of property rights delivered in early America from the bench by
judges throughout the state and federal courts. Professor Siegan
seeks to correct this oversight by examining over one hundred
property rights cases decided by the U.S. Supreme Court and state
high courts in the period from 1790 to 1871. Exhuming these often
neglected cases reveals that protecting property by requiring
compensation when it was confiscated by governments or excessively
regulated was an integral part of U.S. jurisprudence during this
period. Siegans exhaustive review of these early cases reveals
the strong influence of English property rights theory and law,
through the intermediaries of Coke and Blackstone, as well as
the importance of property rights to our early jurists. Reconstructing
this history should still criticism that judicial protection of
private property is of recent vintage, promoted by activist justices
seeking to enshrine their own proclivities.
Siegan begins his history of property rights with King Johns
reluctant acceptance of Magna Carta. Confirmed often by the English
Parliament, Magna Carta is justly celebrated as terminating the
despotic powers of government. John accepted Magna Carta to settle
the revolt of the barons against his outrageous conduct. He agreed
to restore the properties he had stolen and to remit the fines
and amercements he had unjustly imposed. In Chapter 39, he promised
never again to commit the reprehensible acts that caused the barons
to revolt against him, a pledge that English-speaking nations
have observed in their legal systems as a protection against government
oppression. Johns acceptance of restraint is the origin
of the due process provision in our Constitutions Fifth
and Fourteenth Amendments: that government must not deprive any
person of life, liberty, or property without due process of law.
In the seventeenth and eighteenth centuries, Cokes and later
Blackstones commentaries were widely read and very influential,
interpreting, explaining, and expounding the English laws of their
times. Not only in England were these commentaries important,
for they proved persuasive across the Atlantic as well. When the
English settlers migrated to America, the English government assured
them that they were entitled to the same privileges and immunities
in their new land as they had enjoyed in England. These privileges
and immunities largely embodied the common law. The English colonial
authorities and later the Americans continued to abide by and
generally apply the common law as developed in England.
King John revoked the Magna Carta a few months after he had
accepted it, but after his death it was replaced by others executed
in the reign of his son, Henry III. Both Coke and Blackstone considered
the Magna Carta that Henry executed in 1225 to be the definitive
version of the document that secured the liberties of Englishmen.
Both commentators interpreted this Magna Carta as prohibiting
the adoption of arbitrary and capricious laws and guaranteeing
that no freeman shall be deprived of his life, liberty, or property,
unless it be done pursuant to the law of the land, a principle
that Coke referred to as due process of law. This required a fair
and proper judicial trial and compliance with other laws of the
land. Both agreed that laws must not be retroactive and must serve
a public and not a private interest. Coke, while serving as a
judge, contributed to rulings that regulatory laws must substantially
advance the purpose for which the government had imposed them
and that no person should be a judge in his own cause. He presided
over a court that ruled that exactions for public improvements
must be imposed in proportion to the benefits received. His court
supported economic rights, explaining that every person possesses
the liberty to practice the trade, occupation, or vocation of
his choice. Monopolies were illegitimate because they eliminated
the freedom of people to engage in economic activity. In the famous
Dr. Bonhams Case, Cokes court struck
down a statute of parliament which accorded the London College
of Physicians complete discretion to bar graduates of professional
universities from the practice of medicine.
Blackstone was a strong proponent of individual rights, declaring
that every wanton and causeless restraint of the will of
the subject, whether produced by a monarch, a nobility, or a popular
assembly is a degree of tyranny. Laws that regulate
and constrain our conduct in matters of mere indifference, without
any good end in view, are destructive of liberty. Property
rights were critical in Blackstones vision of individual
liberty and he identified two safeguards for property owners as
the most critical. First, indemnification must be awarded a nonconsenting
owner whose property is taken by eminent domain. Second, a property
owner is protected against physical invasion of his property by
the laws of trespass and nuisance. These protections would later
be secured in the due process and takings clauses of our Bill
of Rights.
For most of the period from their migration in the early seventeenth
century to the years prior to the American Revolution, the residents
of English America enjoyed considerable freedom and prosperity
and their numbers steadily rose. Economic well-being reached historically
high levels. When the English began to impose regulations and
taxes on Americans, who had experienced until then relatively
modest government controls, these impositions met with great resistance
and ultimately revolution, which led to the creation of a new
nation of substantially confined powers. John Lockes articulation
of the principles of freedom and limited government coupled with
the commentaries of Coke and Blackstone provided the theoretical
grounding for the founding generations vision of a limited
government dedicated to the protection of individual liberty,
particularly the right of property.
The first post-revolutionary attempt at constructing a workable
confederation between the thirteen states was a failure. Each
state operated as a separate nation, applying protectionist measures
against its neighbors and rejecting any serious limitation on
its powers, thereby creating commercial problems for all. Many
political and intellectual leaders concluded that unless the Confederation
was abolished and replaced by a single union of the states, chaos
and even civil strife would result. Although convened to reform
the Articles of Confederation, the Constitutional Convention of
1787 decided that the establishment of a union of all the states
was essential to reduce or eliminate existing commercial barriers.
Instead of reforming the Articles, the Convention decided to frame
a constitution for a new nation.
Delegates to the 1787 Constitutional Convention recognized the tension between majority rights and personal rights and sought to achieve reasonable accommodation between the two. They created a nation of limited and enumerated authority separating the government into three branches, legislative, executive, and judicial, and greatly confining the powers of each by building in checks and balances. This new nation would be a commercial republic that relied principally on the productivity and ingenuity of its citizens to sustain and advance the public welfare.
The Constitutional generation strongly believed in protection
of property rights. The nation the Framers contemplated would
be viable only if the means of production and distribution of
goods and services were largely unrestrained by government. Ratified
in 1788, the new Constitution contained few guarantees protecting
individual freedom, rather it secured freedom by limiting the
power of government to deprive people of their liberties. The
government had no authority to eliminate the peoples rights
as Englishmen, which largely meant their rights under the
common law. With the addition of the Bill of Rights, specific
protections for property rights were added, including the due
process and takings clauses of the Fifth Amendment as well as
five other clauses, indicating that the protection of property
rights was a major concern in the crafting of the Bill of Rights.
In the period between 1790 and 1871, the U.S. Supreme Court and
state courts strongly protected property rights under various
theories. Most states interpreted state due process clauses (or
their equivalent, law of the land) and takings clauses in the
U.S. or state constitutions to protect property rights. Some applied
common law interpretations advanced by Coke and Blackstone. The
following cases are illustrative of this trend. Beginning the
period with Van Hornes Lessee v. Dorrance
(1795) and ending it with Yates v. Milwaukee (1870) and
Pumpelly v. Green Bay Co. (1871), Supreme Court justices
applied the common law in whole or in part to require payment
of compensation for excessive limitations imposed on property
rights. In the early 1800s the New York courts were the most prestigious
among the state courts, due principally to the states eminent
jurist, James Kent, the author of an influential treatise: Commentaries
on the United States Constitution (1826). Probably Kents
most cited decision was in Gardner v. Trustees of the Village
of Newburgh (1816), in which he applied the common law of
nuisance to determine whether the village had violated Gardners
property rights by installing new water facilities and in the
process cutting off the flow of a stream to his property. Under
the common law, diverting or obstructing a water course was a
nuisance when it caused harm to a property owner. Kent held that
the right to a stream of water is as sacred as a right to
the soil over which it flows. The village had, unsuccessfully,
argued that since Gardners damages were consequential, a
deprivation had not occurred. New York did not have a taking clause
in its constitution at that time, but Kents reliance on
common law principles proved a strong grounding for property rights.
Thus, by the early 1870s prevailing jurisprudence in the United
States endorsed Blackstones interpretation of the common
law as according strong protection to property rights, and they
did so by invoking various common law and constitutional provisions.
Constitutional provisions signifying a strong commitment to
property rights among the framers of the Constitution and the
Bill of Rights as well as the Fourteenth Amendment are abundant.
Article IV section 2 of the Constitution states that The
citizens of each state shall be entitled to all the privileges
and immunities of citizens of the several states. Section
1 of the Fourteenth Amendment mandates that No state shall
make or enforce any law which shall abridge the privileges and
immunities of citizens of the United States. At the time
that the Fourteenth Amendment was framed (1866) and ratified (1868),
the prevailing judicial opinion in the United States was that
the terms privileges and immunities meant those fundamental
rights and liberties which belong, of right, to the citizens
of all free governments. These fundamental rights include
the rights of property, as explained in the works of Coke and
Blackstone and often quoted by courts in the United States. Similarly,
the due process clause, originating in Magna Carta and included
in our Fifth and Fourteenth Amendments, protects people against
deprivation by government of their life, liberty, or property
without a judicial determination that they had engaged in conduct
warranting such deprivation. The Fifth Amendments takings
clause qualifies the due process clause by implicitly allowing
a government to take private property for public use by eminent
domain, but still protects property by requiring that if government
takes property, compensation must be paid to the owner.
In the period from 1790 to 1871, the judiciary ascended to a major
role in the nation. This is evident in the power it exercised
with respect to property rights. By the beginning of this period,
the people of the United States and of most of the states had
ratified constitutions containing due process, or law of the land
or takings clauses. However, in numerous instances, the interested
parties had to await judicial determination of the constitutionality
of government policies or actions that impinged on property rights.
There was almost always serious controversy between the regulators
and the regulated. Overall, hundreds of judges adjudicated hundreds
of property rights cases. The U.S. Supreme Court and high courts
in every one of the thirty-three states that was part of the union
in 1860, with the exception of South Carolina, held unlawful the
taking of property that was not accompanied by the payment of
compensation for the harm sustained by the owner. South Carolina
would, by constitutional amendment, secure the same result by
1868. While the judges differed in certain respects an
inevitable outcome considering the large number of judges and
cases involved the judiciary assured owners that their
properties would be protected from confiscation or unreasonable
regulation.
The first eight decades of our legal history enshrined property rights, insuring that this vital part of our English legacy would not be cast aside with the Revolution. Property rights were vigorously championed by courts throughout the land. In the absence of this judicial protection for property rights in our formative years, it is doubtful that our nations unrivaled prosperity and political liberty would have been secured.
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