Landmark Ruling Bolsters Landlord Rights Amid Eviction Bans

Director of Compliance, GLC Property Management

In a significant victory for rental property owners across the United States, the U.S. Court of Appeals for the Federal Circuit has upheld a pivotal ruling that strengthens landlords’ claims for compensation due to government-imposed eviction moratoriums during the COVID-19 pandemic.

On June 6, 2025, the Federal Circuit declined to reconsider its decision in Darby Development Co. v. United States, preserving a landlord-friendly ruling that could soon be reviewed by the U.S. Supreme Court. This case has the potential to set a precedent for government accountability regarding eviction bans enacted during the pandemic.

The Darby case contests the nationwide eviction moratorium issued by the U.S. Centers for Disease Control and Prevention (CDC), which prohibited landlords from evicting tenants for nonpayment of rent. The plaintiffs argue that this moratorium constituted a government "taking" of their property without fair compensation, violating the Fifth Amendment’s Takings Clause.

Initially, the U.S. Court of Federal Claims dismissed the landlords’ claims. However, the Federal Circuit overturned that dismissal in 2024, finding that the landlords presented a valid claim. By opting not to rehear the case, the Federal Circuit has solidified this ruling, increasing the likelihood of Supreme Court review, especially since the federal government is a party to the case.

This ruling has broader implications, notably for the California Apartment Association’s (CAA) lawsuit against Alameda County, which enforced one of the nation’s most protracted eviction moratoriums. The CAA contends that the county’s policy unconstitutionally compelled landlords to house nonpaying tenants. The legal reasoning in Darby—that forcing property owners to retain nonpaying tenants constitutes a physical taking—directly supports the CAA’s argument.

The Darby decision is also shaping related litigation. For instance, plaintiffs in GHP Management v. City of Los Angeles recently cited the Federal Circuit’s stance in a letter to the U.S. Supreme Court, urging review of their challenge to Los Angeles’ eviction moratorium. The CAA has filed an amicus brief in support of the GHP case, reinforcing the push for landlord rights.

These developments signal a growing judicial acknowledgment that property owners deserve a fair opportunity to contest burdensome government policies. The Darby ruling marks a crucial step toward ensuring government accountability and securing landlords’ right to their day in court.