Court derails BlackRock's attempt to block eminent domain
A judge ruled this week that BlackRock's (BLK) request alongside other bond holders for a court order to block a plan by Richmond, Calif., to seize underwater mortgages using eminent domain came too early. Bloomberg has more on the decision, which effectively creates a new hurdle for opponents of the plan—all of whom want the issue handled before eminent domain actually takes effect.
U.S. District Judge Charles Breyer in San Francisco held a 40-minute hearing today on whether to order the city to halt efforts to use eminent domain to take over loans.
“If they implement the program, which would include eminent domain, then that’s the time for the court to take a look at it,” Breyer said at the start of the hearing. He said he will issue a ruling on Sept. 16 on whether to dismiss the case or put it on hold.