realestate

Court Upholds Landlords' Right to Recover Rent

Federal Circuit ruling supports property owners' right to pursue compensation for CDC eviction moratorium claims.

A
significant court ruling has reaffirmed the rights of property owners to pursue compensation claims resulting from the U.S. Centers for Disease Control and Prevention's eviction moratorium. The 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 challenging the constitutionality of the CDC's order under the Fifth Amendment.

    The decision marks a major victory for property rights advocates, as it upholds the legal framework protecting housing providers against uncompensated government takings. The roots of the case date back to September 2020, when the CDC imposed a nationwide moratorium on residential evictions in response to the COVID-19 pandemic. This move had severe financial consequences for many mom-and-pop housing providers.

    The National Association of REALTORS (NAR) played a crucial role in this case, filing an amicus brief in support of the plaintiffs and arguing that the CDC's eviction moratorium constituted a per se taking. NAR emphasized the devastating impact on independent owners of small rental properties.

    While the Federal Circuit's decision is a significant win for property owners, the legal battle may not be over. The government may still petition the U.S. Supreme Court to review the case. Regardless of the outcome, this ruling ensures that property owners will have their day in court and underscores the importance of protecting constitutional property rights.

    "NAR is committed to defending property rights, even in times of crisis," says Shannon McGahn, NAR executive vice president and chief advocacy officer. "We strongly advocated for rental assistance payments during the pandemic, which helped those truly in need while also protecting the rights and livelihoods of mom-and-pop housing providers."

Judge upholds landlords' right to recover rent in court ruling nationwide.