Complaint Seeks to Block North Las Vegas Eminent Domain Move

The Securities Industry and Financial Markets Association, which opposes North Las Vegas’ plan to use eminent domain as a means of resolving distressed mortgage woes that have bedeviled the fiscally troubled city, noted that a resident has filed a legal complaint seeking to block the move.

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.”

The city attorney could not be reached for comment at deadline.