Yee v. City of Escondido

California's Mobilehome Residency Law restricted trailer-park landlords from requiring removal of a mobile home upon sale, charging a sale fee, or rejecting a buyer able to pay rent — though landlords could still evict to change the land's use. Escondido (defendant) then capped rents at 1986 levels, increasable only with city council approval of a 'fair and reasonable' increase. Yee (plaintiff), a trailer-park owner, sued along with eleven others, arguing the combined effect of the rent cap and the state removal restrictions amounted to a physical taking of their property by effectively forcing them to keep leasing to the same tenants indefinitely at below-market rates.

Whether rent controls constitute a physical taking of a landlord's property.