US appeals court reinstates landlords’ compensation claim over CDC eviction moratorium News
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US appeals court reinstates landlords’ compensation claim over CDC eviction moratorium

The US Court of Appeals for the Federal Circuit reinstated a claim brought by landlords on Wednesday who argued that the Centre for Disease Control and Prevention’s (CDC) nationwide eviction moratorium during the COVID-19 pandemic constituted a “taking” under the Fifth Amendment, entitling them to compensation. This decision reversed a previous judgment by the US Court of Federal Claims in Darby Development Company v US that had dismissed the lawsuit against the moratorium.

The case centers around the Fifth Amendment to the US Constitution. The amendment’s Takings Clause stipulates that the government may not take any property for public use without just compensation. The CDC issued the eviction moratorium during the COVID-19 pandemic as a public health measure to prevent the spread of COVID-19. The order aimed to keep tenants housed and faced significant pushback from landlords and property owners, who argued that it imposed severe financial burdens by preventing them from evicting non-paying tenants.

The court’s decision in this case to allow the landlords’ claim to proceed does not necessarily mean that the landlords will ultimately win compensation, as the ruling only means that the landlords should have the opportunity to present their case in court. Additionally, in the opinion, the Federal Circuit acknowledged that the pandemic presented extraordinary circumstances but emphasized the constitutional protections afforded to property owners under the Fifth Amendment.

In February 2021, a judge for the US District Court for the Eastern District of Texas found the CDC moratorium to be unconstitutional. Later that year, the US Supreme Court also found that the CDC had exceeded its authority in issuing the moratorium on evictions.

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