The state Court of Appeals has rejected a claim by southwestern Indiana landowners that the state illegally acquired their land to clear the path for the Interstate 69 extension between Indianapolis and Evansville.
William and Janice Boyd had sued the state in Greene County, saying it hadn't complied with federal environmental regulations.
But the court ruled Thursday that the dispute was beyond the scope of its jurisdiction. It said courts could step into eminent domain disputes only in cases where the landowners showed evidence of bad faith or fraud on the part of the state.
The judges said the challenge was related to the legality of the road project, rather than that of the taking of their land.