Fact Check: Victory for Property Owners! Landlords may finally get compensation for losses during the CDC eviction moratorium. A major ruling confirms property rights require just compensation
What We Know
In June 2025, the United States Court of Appeals for the Federal Circuit ruled that the Centers for Disease Control and Prevention’s (CDC) 2020 eviction moratorium constituted a physical taking of landlords' property, thus allowing them to seek compensation for losses incurred during the moratorium period. This ruling came in the case of Darby Development Company, Inc. v. United States, where the court denied the government's petition for rehearing and upheld its earlier decision that the eviction moratorium was an unconstitutional taking under the Fifth Amendment (source-1, source-2). The moratorium, which was enacted in September 2020, was intended to prevent the spread of COVID-19 by halting evictions, but it resulted in significant financial strain for many landlords (source-3).
The court's decision opens the door for landlords to file takings claims against the federal government, potentially amounting to billions of dollars in compensation claims (source-1). The ruling emphasizes that property owners have a constitutional right to seek repayment for losses suffered due to government actions that effectively took their property without compensation (source-2).
Analysis
The ruling by the Federal Circuit is significant as it reinforces the legal principle that government actions that result in the appropriation of private property require just compensation. The court found that the eviction moratorium effectively prevented landlords from evicting tenants who were not paying rent, which constituted a physical taking of their property (source-1, source-5).
Critically, the decision builds on previous rulings, including the Supreme Court's finding that the CDC exceeded its authority in implementing the moratorium (source-2, source-7). The Federal Circuit's interpretation that the moratorium was still "authorized" for takings analysis, despite being deemed unauthorized in earlier cases, reflects a nuanced understanding of property rights under the Fifth Amendment.
However, the ruling does not guarantee compensation; landlords must still prove that they meet specific criteria, including having tenants who did not pay rent during the moratorium and being unable to evict them due to the order (source-1). This requirement underscores the complexity of takings claims and the need for landlords to provide substantial evidence to support their cases.
Conclusion
Verdict: True
The claim that landlords may finally receive compensation for losses incurred during the CDC eviction moratorium is true. The recent ruling by the Federal Circuit confirms that the eviction moratorium constituted a physical taking of property, thereby allowing landlords to pursue compensation claims against the federal government. This decision not only affirms property rights but also sets a precedent for future claims related to government actions that affect private property.
Sources
- Landlords Can Pursue Takings Claims Against U.S. ...
- Court: Landlords Have Constitutional Right to Repayment
- Landlords Have a Right to Compensation After CDC Eviction Ban ...
- Landlords Due Compensation
- U.S. Circuit Court Upholds the Requirement of Just ...
- US appeals court reinstates landlords' compensation claim ...
- Supreme Court Strikes Down the CDC's Second Eviction ...
- The Eviction Moratorium: The Financial Impact on ...
