A federal court has ruled that landlords are due compensation and have a right to pursue compensation claims for losses suffered during the U.S. Centers for Disease Control and Prevention eviction ban moratorium during the COVID-19 pandemic.
U.S. Court of Appeals for the Federal Circuit denied the federal government’s petition for a rehearing in Darby v. United States, a case claiming the CDC’s eviction moratorium was unconstitutional under the Fifth Amendment.
Landlords Due Compensation
“The decision marks a significant victory for property owners. By upholding the Darby ruling, the court maintains the legal framework that protects housing providers against uncompensated government takings,” according to a release from the National Association of Realtors. “The Federal Circuit’s decision underscores the rights of property owners to pursue compensation claims arising from the CDC eviction moratorium.”
“While the Federal Circuit’s decision is a meaningful win for property owners, the legal battle may not be over. The denial of the government’s rehearing request was not unanimous, and the government may still petition the U.S. Supreme Court to review the case,” the release says.
Covid Eviction Ban Financial Strain
While intended to curb the spread of the virus, the order placed significant financial strain on many mom-and-pop housing providers, who were left without income.
The case was brought by the Georgia and Alabama associations of REALTORS® and other property providers, with legal advocacy support from the National Association of REALTORS®. In July 2021, the Darby plaintiffs sued the U.S. government, claiming the CDC’s eviction moratorium was an unconstitutional taking of property without compensation.
Although the Supreme Court later ruled the CDC had exceeded its authority, the government argued claims couldn’t arise from unauthorized actions. The Federal Circuit disagreed, holding that the moratorium could still be considered authorized for takings analysis, allowing housing providers to pursue compensation.
Read the full release from the National Association of Realtors here.
