Judge rules against developer and in favor of L.A. on emergency eviction protections.
NOV. 23, 2022 5 AM PT
A judge has tossed out a federal lawsuit filed by a developer who said his real estate companies should have been compensated for losses they incurred as a result of emergency tenant protections approved in Los Angeles following the outbreak of COVID-19.In his 15-page ruling, U.S. District Judge Dean Pregerson said the city’s ordinance, which barred landlords from removing tenants who were unable to pay rent because of COVID-19, did not constitute a “taking” of private property as defined by federal law.Pregerson said the eviction ordinance, which was approved in 2020 and remains in effect, covers only a limited period of time and does not constitute a permanent taking of property, which would have required the city to compensate landlords. The judge also found that the law “indisputably promotes the common good.”
“It can hardly be disputed that without the protection of the moratorium, a significant number of tenants would have been evicted with COVID-related income losses, not only causing the damage typical of mass evictions, but also exacerbating the spread of COVID-19, for example Disadvantage of all,” Pregerson wrote.
GHP Management Corp., owned by real estate developer Geoffrey Palmer, filed a lawsuit against the city in August 2021, saying 12 apartment buildings it manages lost more than $20 million in rental income as a result of emergency tenant protection . GHP and other Palmer-owned companies said at the time they expected their losses to triple by the time the moratorium was lifted.
Palmer is known in LA for developing a number of mock Italianate complexes in and around downtown, including the Orsini, Piero and Medici. Several were built along freeways, particularly around the 101-110 intersection
The lawyers for GHP and the other plaintiffs did not respond to inquiries from The Times.
In his decision, Pregerson gave Palmer’s companies an opportunity to amend their lawsuit and refile it with more specific details of their economic losses. Nonetheless, tenant advocacy groups, including the Coalition for Economic Survival and Strategic Actions for Just Economy, hailed the ruling as a major victory.
“We are grateful that the court recognized this legal challenge for what it was: a false attempt to expose the moratorium on emergency evictions and set a dangerous precedent that could undermine the protections of other tenants,” said Rachel Steinback, Attorney for Los Angeles County Neighborhood Legal Services, which helped represent tenant advocacy.
A spokesman for City Atty. Mike Feuer said his boss was happy with the verdict but declined to comment further.