A federal appeals court ruled that landlords can pursue billions in damages from the federal government over the COVID-era eviction moratorium, calling into question the legality of the CDC’s actions during the pandemic.
Key Facts:
- The U.S. Court of Appeals for the Federal Circuit voted 7-3 to allow landlords’ lawsuits over the federal eviction ban to proceed.
- The CDC issued a nationwide eviction moratorium in September 2020 that lasted until August 2021.
- Landlords argue the order violated the Fifth Amendment’s “takings” clause by denying them income and control over their property.
- The ruling upholds a prior decision that the federal government may owe compensation for property losses during the moratorium.
- Damages from the case could reach into the tens of billions of dollars.
The Rest of The Story:
The lawsuit centers on the CDC’s nationwide order halting residential evictions during the pandemic.
The agency acted in September 2020, following the expiration of a 120-day eviction freeze passed by Congress.
The CDC’s moratorium, aimed at slowing the spread of COVID-19, remained in place until the Supreme Court struck it down in August 2021.
Landlords filed suit in the U.S. Court of Federal Claims, arguing the moratorium amounted to an illegal seizure of private property.
They cited the Fifth Amendment, which bars the government from taking private property without just compensation.
In 2023, a Federal Circuit panel allowed the lawsuits to proceed.
The Biden administration pushed back, but on Friday, the full court rejected its appeal.
The Justice Department warned the decision could “upend over a century of precedent,” while landlords’ attorneys countered that the government simply “wants another bite at the apple.”
The National Association of Realtors welcomed the ruling, calling it “an important win for property rights.”
Hellbound and Down 