Legal Definitions - restraining statute

A restraining statute is a law that limits or restricts certain rights, powers, or capacities that individuals or entities would ordinarily possess. These statutes are designed to prevent specific actions, ensure fairness, protect public interests, or regulate particular activities by imposing legal boundaries on what can be done.

Here are some examples:

• Consumer Protection in Rental Agreements: Imagine a state passes a law that caps the maximum late fee a landlord can charge for overdue rent, regardless of what the lease agreement might state. For instance, the law might say a late fee cannot exceed 5% of the monthly rent or $50, whichever is less.

  This is a restraining statute because it limits the landlord's contractual freedom and power to set any late fee they wish. Without this law, a landlord might have the capacity to impose much higher fees, but the statute "restrains" that ability to protect tenants from excessive charges.

• Environmental Protection and Property Rights: Consider a local ordinance that prohibits any construction or significant alteration within 100 feet of a designated protected wetland area, even if a private landowner owns the property adjacent to the wetland.

  This ordinance functions as a restraining statute because it limits the property owner's otherwise broad right to develop or modify their land as they see fit. It imposes a restriction on their use of the property, "restraining" their development capacity in favor of environmental preservation.

• Governmental Financial Limits: A state legislature enacts a law stating that no municipality within the state can incur long-term debt that exceeds 10% of its total assessed property value.

  This is a restraining statute because it limits the financial power and capacity of a city or town to borrow money. Without such a law, a municipality might have the inherent authority to take on more debt, but the statute "restrains" that ability to ensure fiscal responsibility and prevent excessive financial risk.