Amendment force Florida to forgo foreclosing Fane’s phoning? Argument for Fane: The Florida
regulation violates the First Amendment, which protects commercial speech. Fane was not saying
anything false or misleading, but was just trying to secure business. This is an unreasonable regulation,
designed to keep newcomers out of the marketplace and maintain steady business and high prices for
established CPAs. Argument for the Florida Board of Accountancy: Commercial speech deserves—
and gets—a lower level of protection than other speech. This regulation is a reasonable method of
ensuring that the level of CPA work in our state remains high. CPAs who personally solicit clients are
obviously in need of business. They are more likely to bend legal and ethical rules to obtain clients and
keep them happy, and will lower the standards throughout the state.
Holding: Fane wins. The Court held that the Florida statute violates the First Amendment. Laws
restricting commercial speech will only survive constitutional analysis if they are tailored in a
reasonable manner to serve a substantial state interest. This statute fails on both tests. Florida has not
demonstrated that the ban advances its goal of improving the quality of CPAs. Further, the state’s
approach greatly restricts free speech, and less intrusive means are available to achieve its goals.
Edenfield v. Fane, 507 U.S. 761, 113 S.Ct. 1792, 1993 U.S. LEXIS 2985 (1993).
Fifth Amendment: Due Process and the Takings Clause
Procedural Due Process – Procedural due process is required whenever the government attempts to
take liberty or property. The amount of process that is due depends upon the importance of the liberty
or property threatened.
Takings Clause – The Takings Clause prohibits a state from taking private property for public use
without just compensation.
Case: Kelo v. City of New London4
Facts: New London, CT was declining economically. In order to revitalize the city, state and local
officials decided to redevelop a section of the city called Fort Trumbull. The development plan
included residential, business, and hotel use. The state bought most of the properties from willing
sellers, but nine owners refused to sell and filed suit claiming the city was taking its land for private
use in violation of the Takings Clause.
Issues: Did the City’s plan violate the Takings Clause?
Holding: No, the judgment of the Supreme Court of Connecticut is affirmed. A state cannot take the
property of a private party and give it to another private party, even if the first party is compensated.
However, a state may take property from a private party and give it to another if such taking is for a
public use.
Here the city is not planning to make all of the property open to the general public. The city is
trying to execute an economic revitalization plan that includes, among other things, new jobs and
increased tax revenue from the developed property. This unquestionably serves a public purpose.
Kelo asks the court to adopt a rule that prohibits economic development from being considered
a public use. However, economic development has long been considered a public use. Historically,
this court has held that mining and agriculture are public uses because they contribute to the welfare of
the state. Based on those cases, the same can be said of economic development.
Comment: Justice O’Connor, in her dissent stated that the Court’s decision is an expansion on the
meaning of public use. Now, according to O’Connor, the state may take private property from a private
person and give it to another private person if there is a predicted benefit to the public. However,
almost any lawful use of private real estate can be said to have positive side effects. If this is the case,
reasoned O’Connor, then any predicted positive effect would be enough to justify a taking by the state.
This result would render the “public use” constraint on the government’s power under Eminent Domain
useless.
4 545 U.S. 469, 125 S.Ct. 2655, United States Supreme Court, 2005.