Paulk et al v. Tennessee Valley Authority

In Paulk et al v. Tennessee Valley Authority, landowners Robby and Linda Paulk challenged the Tennessee Valley Authority's (TVA) use of eminent domain to acquire an easement across their Alabama property for a roughly 12-mile transmission line. The Paulks argued the taking violated the Fifth Amendment's Public Use Clause because the line primarily benefited a private data center, not the general public. The U.S. District Court granted summary judgment in favor of TVA. On July 28, 2023, the U.S. Court of Appeals for the Eleventh Circuit affirmed, holding that the project served a public use. The court found the line was integrated into the wider grid, would serve multiple existing and future customers, and improved reliability. Merely because a private entity benefited did not negate the overarching public purpose of providing electricity.

The Eleventh Circuit affirmed the district court's grant of summary judgment in favor of TVA, ruling that the easement acquisition was a valid public use.

Whether TVA's condemnation of private land for a transmission line, which would partly supply a private data center, satisfies the Fifth Amendment's requirement that takings be for "public use."

The ruling reinforces the broad authority of federally owned utilities like TVA to exercise eminent domain for grid infrastructure projects. It clarifies that takings meet the public use standard as long as the project is integrated into a public service network and serves a public function, even when a private entity is a major beneficiary. This precedent strengthens the legal footing for modernizing the electric grid.