9th Circuit upholds City of Los Angeles Eviction Moratorium against Contracts Clause Challenge

CT
Chuck Thompson
Tue, Aug 31, 2021 6:23 PM

On August 25, the 9th Circuit Court of Appeals concluded that the Los Angeles eviction moratorium could survive a Contracts Clause challenge by an association of landlords.  The landlords sued claiming a violation of the Contracts Clause as well as the Takings Clause and the 10th and 14th Amendments.  The court noted that the landlords pursued their case for relief only under the Contracts Clause so did not address any issues associated with the Takings Clause or the 14th Amendment.  The Court noted that Contracts Clause jurisprudence changed markedly in 1934 and discussed the way in which the Contracts Clause should be applied today noting with respect to the case at hand: "Thus, the eviction moratorium must be upheld, even if it is a substantial impairment of contractual relations, if its "adjustment of the rights and responsibilities of contracting parties is based upon reasonable conditions and is of a character appropriate to the public purpose justifying the legislation's adoption." Energy Reserves, 459 U.S. at 412"

APARTMENT ASS'N OF LA CNTY. V. CITY OF LA https://cdn.ca9.uscourts.gov/datastore/opinions/2021/08/25/20-56251.pdf

Charles W. Thompson, Jr.
Executive Director/General Counsel
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On August 25, the 9th Circuit Court of Appeals concluded that the Los Angeles eviction moratorium could survive a Contracts Clause challenge by an association of landlords. The landlords sued claiming a violation of the Contracts Clause as well as the Takings Clause and the 10th and 14th Amendments. The court noted that the landlords pursued their case for relief only under the Contracts Clause so did not address any issues associated with the Takings Clause or the 14th Amendment. The Court noted that Contracts Clause jurisprudence changed markedly in 1934 and discussed the way in which the Contracts Clause should be applied today noting with respect to the case at hand: "Thus, the eviction moratorium must be upheld, even if it is a substantial impairment of contractual relations, if its "adjustment of the rights and responsibilities of contracting parties is based upon reasonable conditions and is of a character appropriate to the public purpose justifying the legislation's adoption." Energy Reserves, 459 U.S. at 412" APARTMENT ASS'N OF LA CNTY. V. CITY OF LA https://cdn.ca9.uscourts.gov/datastore/opinions/2021/08/25/20-56251.pdf Charles W. Thompson, Jr. Executive Director/General Counsel P: (202) 466-5424 x7110 M: (240) 876-6790 D: (202) 742-1016 [facebook icon]<https://www.facebook.com/InternationalMunicipalLawyersAssociation/>[twitter icon]<https://twitter.com/imlalegal>[linkedin icon]<https://www.linkedin.com/company/international-municipal-lawyers-association-inc./> [logo]<https://imla.org/> 51 Monroe St. Suite 404 Rockville, MD, 20850 www.imla.org<http://www.imla.org/> Plan Ahead! IMLA's 86th Annual Conference<https://imla.org/annual-conference/>, Sept. 29-Oct. 3, 2021 in Minneapolis, MN IN-PERSON or VIRTUAL! IMLA's 2022 Mid-Year Seminar<https://imla.org/seminars/>, April 8-11, 2022 in Washington, D.C.!