The Supreme Court has decided not to hear a case brought by landlords in Los Angeles who claim they lost millions in unpaid rent during the COVID-19 pandemic. The court’s decision came on a Monday, with two conservative justices dissenting. The landlords, who manage over 4,800 luxury apartment units, sought $20 million in damages from tenants who did not pay rent during the city’s strict eviction moratorium.
The landlords argued that the city’s eviction restrictions amounted to a taking of their property without compensation, violating the Fifth Amendment. They stated that the regulations effectively forced them to provide housing without the ability to evict nonpaying tenants. This claim was similar to past cases where the court dismissed challenges to rent control laws, but the landlords believed their situation was unique.
In their appeal, the landlords highlighted that the city imposed one of the most stringent eviction moratoriums in the country, which they felt stripped them of their rights as property owners. They claimed that by August 2021, the unpaid rent had accumulated to over $20 million due to these restrictions.
The case, known as GHP Management Corporation vs. City of Los Angeles, was dismissed by both a federal judge and the 9th U.S. Circuit Court of Appeals. Both courts cited a long-standing precedent that allows governments to regulate property without constituting a taking. The city attorney defended the eviction moratorium as a necessary measure to protect renters during a public health crisis, emphasizing that it only applied to those who could prove economic hardship due to COVID-19.
The Supreme Court had been considering the landlords’ appeal since February, but ultimately, only Justices Clarence Thomas and Neil Gorsuch supported hearing the case. Thomas expressed concern that not addressing the issue would leave confusion about property rights and the landlords’ ability to seek relief.
The city attorney’s office argued that the COVID-19 emergency and the eviction restrictions ended in January 2023. However, the landlords’ lawyers warned that such eviction bans are becoming more common, citing new measures in Los Angeles County that would prevent evictions for tenants affected by recent wildfires.
As the legal battle continues, the implications of this case could have lasting effects on property rights and tenant protections in Los Angeles and beyond.