Small Landlord Sues Federal Government For Losses From Cdc’s Covid-19 Eviction Moratorium

A Pittsburgh property owner, Rebecca Shaffer, has filed a lawsuit against the U.S. government claiming she was not fairly compensated for financial losses caused by the Centers for Disease Control’s COVID-19 eviction moratorium. The moratorium, in effect during the pandemic, blocked landlords from evicting tenants who couldn’t pay rent due to financial hardships.

Pittsburgh Landlord Seeks Compensation for Pandemic Losses

Ms. Shaffer rented her Pittsburgh home to a tenant who stopped paying rent in July 2020. When Ms. Shaffer started the eviction process, her tenant used the CDC’s eviction moratorium to stop it. The moratorium protected tenants during the pandemic who declared financial difficulties and blocked landlords from evicting them.

For nearly 10 months, Ms. Shaffer was unable to remove her tenant or rent the property to someone who could pay. The moratorium did not offer any financial assistance to landlords like Ms. Shaffer to make up for lost rent or damages caused by non-paying tenants staying in their properties.

Lawsuit Alleges Eviction Moratorium is a “Takings Claim” Against the Federal Government

Ms. Shaffer’s lawsuit argues that the eviction moratorium violated her rights as a property owner. The Fifth Amendment of the U.S. Constitution says that the government cannot take private property for public use without paying for it. By preventing her from evicting her tenant, the lawsuit claims, the government effectively “took” her property without compensating her for the financial loss. This is known as a federal takings claim.

Ms. Shaffer is seeking:

• Reimbursement for the rental income she lost during the moratorium.
• Compensation for any damage to her property caused by the delay in eviction.
• Payment for legal fees and related costs.

Ms. Shaffer is not challenging the CDC’s authority to create the moratorium or its public health goals. Instead, she is asking for fair compensation from the federal government for the income and property damage she suffered because of the policy.

Eviction Moratorium Lawsuit Could Set Precedent for Landlord Compensation Nationwide

This lawsuit is part of a bigger conversation about how the eviction moratorium affected landlords across the country. During the pandemic, many landlords were stuck in financial limbo. They were still responsible for mortgage payments, property maintenance, and taxes, but could not collect rent or evict nonpaying tenants.

“The government’s eviction moratorium may have been well-intentioned, but it left landlords like Ms. Shaffer holding the financial burden without any support,” says Ms. Shaffer’s attorney, Altom M. Maglio of mctlaw. “This lawsuit is about making sure property owners are treated fairly.”

Other landlords and groups, like the National Apartment Association (NAA), have also filed similar lawsuits. They argue that the government should have provided financial relief to landlords instead of leaving them to absorb the costs of helping tenants during the crisis.

If the court rules in favor of Ms. Shaffer, it could set a precedent for landlords to receive compensation for their losses caused by government policies like the eviction moratorium. This case could also influence how the government handles property rights during future emergencies.

About mctlaw

mctlaw is a nationwide law firm that handles complex cases, including financial lawsuits against the government in the United States Court of Federal Claims. The firm is dedicated to protecting the rights of individuals and businesses across the United States.