The plans of North Las Vegas (aided and abetted by certain people connected with the Federal Reserve) to seize underwater mortgages from lenders has run into a speed bump from an unlikely source: a homeowner.
Gregory D. Smith has filed a complaint in Nevada District Court for “declaratory and injunctive relief to enjoin the city...from further implementing and carrying out a scheme to condemn and seize privately owned residential mortgages of North Las Vegas homeowners by use of eminent domain.”
In the complaint, Smith alleges that the move violates the 5th and 14th amendments of the U.S. Constitution, and the state constitution as an “unlawful exercise of the power of eminent domain.” It also alleges violation of a section of the state constitution “curtailing the use of eminent domain.”
In addition, the complaint alleges that the city’s move violates the U.S. and Nevada constitutions “due process” clauses, the Contracts Clause and Commerce Clause of the U.S. Constitution, and certain Nevada revised statutes “as an invalid and unlawful exercise of the power of eminent domain.”
I wonder who's backing Smith's play? It's Vegas, so there's no telling.
It must make the proponents of these eminent domain schemes extremely exasperated to have people throwing that outmoded parchment known as the US Constitution in their faces. This is a brave new world, where the "guhmint" gets to pick the winners and the losers in the game of life, and to remake the rules of the game whenever they damn well feel like it. The Constitution is just another outmoded concoction of dead, white, European males, none of whom ever had " a bunch of junk done to them" by unscrupulous mortgage originators. No progressive scheme to benefit the few at the expense of the many is going to be derailed by any of the first ten amendments to that Dead Sea Scroll.
Unless, of course, it is.
Whoever Greg Smith might be and whoever is supporting his lawsuit, we unreconstructed types wish him well.