152 Valparaiso Associates v. City of Cotati

California Court of Appeal, First District

56 Cal.App.4th 378 (Cal. Ct. App. 1997)

A rent-control scheme that deprives a landlord of a fair return on its investment is unconstitutional.

Relevant Facts

The City of Cotati (the defendant) enacted and enforced a rent-control ordinance. 152 Valparaiso Associates (the plaintiff) made capital improvements to its properties and requested rent increases in order to recover a fair return on their investments, which were denied by the Cotati Rent Appeals Board. The plaintiffs sued, alleging that the defendant’s rent-control ordinance constituted a taking of their property without just compensation, in violation of the Fifth and Fourteenth Amendments. The trial court dismissed the complaint and the plaintiffs appealed.

Issue

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Holding & Reasoning

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Concurrence

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Dissent

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Last updated:

November 30, 2020

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Procedural History

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Citations

56 Cal.App.4th 378 (Cal. Ct. App. 1997)