June 26, 2025
In the wake of the COVID-19 pandemic, landlords across the country faced unprecedented financial hardship. In Summer 2020, the Centers for Disease Control and Prevention (CDC) issued a nationwide eviction moratorium, effectively halting the ability of rental property owners to evict tenants for nonpayment of rent. While intended to address a public health emergency, the moratorium resulted in an estimated $23 billion in losses to landlords, according to the New York Times (July 28, 2021).
Now, the tide has turned. A federal appellate court has ruled that the CDC acted illegally and unconstitutionally. In Alabama Association of Realtors v. Department of Health and Human Services, the U.S. Supreme Court stated:
“It strains credulity to believe that this statute grants the CDC the sweeping authority that it asserts… Applicants are virtually certain to succeed on the merits of their arguments that the CDC has exceeded its authority.”
Landmark Litigation: Darby Development v. United States
The landlord plaintiffs in Darby Development v. United States filed a lawsuit that seeks justice for landlords who suffered significant financial loss under the CDC’s overreach. This litigation is built on the foundation of the Fifth Amendment’s Takings Clause, which guarantees that private property cannot be taken for public use without just compensation.
The eviction moratorium denied landlords the right to enforce their lease agreements and collect rent, effectively commandeering private property for public policy purposes without compensation.
Who Is Eligible for Compensation?
Any rental property owner financially impacted by the CDC eviction moratorium may be eligible to join the lawsuit. However, properties located in jurisdictions that imposed more restrictive eviction bans than the CDC (e.g., California, New York, Oregon) are not eligible for participation with respect to those properties. Owners in both Missouri and Kansas are eligible for participation.
Deadline to Join
To be eligible for compensation, landlords must join the lawsuit by September 1, 2026. After that, claims will no longer be accepted.
What Could You Recover?
Your recovery will be based on your net financial losses suffered due to the CDC moratorium. Each plaintiff’s damages will be assessed individually in the next phase of the litigation.
Cost to Participate
- $1,000 initial deposit toward shared litigation costs
- 20% contingency fee on any recovery
- Unused cost deposits will be refunded pro rata after the case concludes
What Are the Risks?
As with any litigation, there is a chance the case may not succeed. Plaintiffs may also expend time and internal resources (e.g., calculating losses) without guaranteed compensation. However, given the court’s ruling that the CDC acted unlawfully, the prospects for recovery are strong.
Next Steps
If your property or portfolio was harmed by the CDC eviction moratorium, contact John McDermott at (571) 675-5588 or jmcdermott@naahq.org (preferred) and let his team guide you through the process of asserting your legal rights.
At Anderson & Associates, we have a proven track record of representing landlords in Missouri and Kansas. We understand the complexity of landlord-tenant litigation and are committed to holding government actors accountable for the damage caused by unlawful regulation.
Let us know if you have questions or if we can help you recover what you’re owed. Contact us at julie@mokslaw.com, 816-931-2207 (MO) 913-262-2207 (KS).