The U.S. Supreme Court has decided not to hear a case from Los Angeles landlords who claim they lost millions in rent during the COVID-19 pandemic. The court’s refusal to take up the appeal means the landlords will not receive the $20 million they sought from the city for unpaid rent due to eviction restrictions.
The landlords, part of a group managing over 4,800 luxury apartment units, argued that the city’s strict eviction moratorium amounted to a taking of their property without just compensation, violating the Fifth Amendment. They claimed that the city’s regulations forced them to keep nonpaying tenants in their properties, leading to significant financial losses.
In their lawsuit, the landlords highlighted that the moratorium, enacted in March 2020, was one of the strictest in the nation. They stated that by August 2021, the back rent owed by tenants had exceeded $20 million. They believed that the city was effectively using their private property for public purposes without compensating them.
However, both a federal judge and the Ninth Circuit Court of Appeals dismissed the case, citing long-standing legal precedents that allow for property regulation. The appeals court ruled unanimously against the landlords, reinforcing the idea that government regulations do not constitute a taking of property rights.
The Supreme Court considered the case for several months, with Justices Clarence Thomas and Neil Gorsuch expressing interest in reviewing the appeal. Thomas argued that the case raised important questions about property rights and the implications of eviction moratoriums. However, the majority of justices opted not to hear the case, leaving the lower court’s ruling in place.
The city attorney defended the eviction moratorium, stating it was a necessary measure during an unprecedented public health crisis. They pointed out that the moratorium only protected tenants who could prove they were financially impacted by COVID-19 and did not erase their rent obligations.
As the pandemic-related restrictions have now ended, the city noted that landlords are still facing challenges, citing ongoing measures that prevent evictions for tenants affected by other crises, such as wildfires. This ongoing situation highlights the evolving landscape of tenant protections and property rights in Los Angeles and beyond.