Supreme Court Considers North Dakota Property Rights Case

“What we’re saying is that when states try to protect private property owners, private companies have to respect those laws. Even private companies wielding the power of eminent domain,” Bob McNamara argued Monday.

That high-stakes exchange sits at the heart of a Supreme Court case out of North Dakota that could have major implications for landowners everywhere. If the justices ultimately side with federal law over state statutes, property owners stand to lose any real incentive to fight for fair compensation when the government takes their land.

The underlying dispute began when a pipeline company, acting on behalf of the government, low-balled landowners on property value. The resulting disagreement exploded into a multi-year legal battle. Although the landowners ultimately won their case, they were left holding the bag for $380,000 in legal fees.

North Dakota law dictates that the pipeline company must cover those legal costs. However, the federal government maintains that the company is exempt from that state-level requirement.

Supreme Court Considers North Dakota Property Rights Case — Photo: localnewslive.com

During oral arguments, the justices signaled skepticism toward the argument for state-level protections. Justice Ketanji Brown Jackson pointed directly to the core federal defense, noting on record, unless Congress says state law is applicable, when you have federal condemnation by any actor, you would have federal law be the applicable rule.

If the Supreme Court adopts that reasoning, landowners who successfully challenge low-ball government offers would risk sinking any potential payout into court fees, fundamentally altering how private citizens navigate federal land seizures.