The legal battle surrounding the federal eviction moratorium implemented during the COVID-19 pandemic has reached a new milestone. The lawsuit, Darby Development Co. Inc. v. United States, now includes over 2,600 property owners, marking a 75% increase in participation since earlier this spring. These landlords are seeking restitution for billions of dollars in lost rental income incurred while the federal ban was in effect between September 2020 and July 2021.
Eviction·National
Lawsuit Over Pandemic-Era Eviction Ban Expands To 2,600 Landlords As Feds Eye Settlement
A major federal lawsuit involving thousands of landlords seeking compensation for losses during the pandemic-era eviction moratorium has expanded significantly. The case, which argues that the federal ban violated Fifth Amendment rights, is now moving toward potential settlement discussions.
By FLN News Desk
September 8, 2026Updated Oct 8, 20261 min read
The plaintiffs argue that the government's actions constituted an unconstitutional taking of private property, violating their Fifth Amendment rights. While a federal court initially dismissed the case in 2022, an appeals court ruling in 2025 breathed new life into the litigation, paving the way for the current expansion of claims.
Legal experts suggest that while the deadline for joining this specific suit has passed, the appellate court's favorable ruling may open doors for additional claims against the federal government. As the case progresses, the federal government is reportedly eyeing potential settlement options to resolve the massive financial liability claimed by the multifamily industry.
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BisnowDisclaimer: Florida Landlord Network is a non-attorney service. This article is for informational purposes only and does not constitute legal advice. Consult a licensed Florida attorney for guidance specific to your situation.
