GHP Management Corporation v. City of Los Angeles
2:21-cv-06311
C.D. Cal.Nov 22, 2021Background
- During the COVID-19 pandemic, the City of Los Angeles enacted Ordinances Nos. 186585 and 186606 (the Eviction Moratorium) restricting residential evictions and allowing tenants a one-year repayment period for missed rent.
- Fourteen plaintiffs (LLCs/LPs and a management company) owning or managing ~5,000 units sued the City alleging the Moratorium effects an uncompensated taking under the Fifth Amendment and California Constitution and seeking just compensation (not injunctive relief).
- Three tenant-advocacy nonprofits (ACCE, SAJE, CES) moved to intervene as defendants to defend the Moratorium, arguing their low-income members would face displacement and increased COVID risks if protections were weakened or ended.
- The City did not oppose intervention; two proposed intervenors previously intervened for tenants in a parallel challenge to the same Moratorium.
- The court evaluated the motion under Fed. R. Civ. P. 24(a)(2) (intervention as of right) and Rule 24(b) (permissive intervention) applying Ninth Circuit precedent and granted intervention.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of motion to intervene | Motion is untimely | Motion is timely | Court treated motion as timely and considered it |
| Protectable interest under Rule 24(a)(2) | Intervenors lack a significant protectable property interest here | Intervenors have direct interest in continued applicability of Moratorium for members' housing stability | Court found intervenors possess a significant protectable interest |
| Practical impairment of interests by disposition | This suit concerns only these plaintiffs; limited practical effect on broader tenant protections | A favorable ruling for plaintiffs could encourage wider challenges, prompt early termination of emergency protections, and spur mass evictions | Court concluded disposition could practically impair intervenors’ ability to protect members |
| Adequacy of representation by the City | Government representation is presumptively adequate | City’s objectives diverge from intervenors; intervenors represent narrower, lower-income constituencies and sought broader protections the City refused | Court held intervenors met the minimal burden to show potential inadequate representation and granted intervention |
Key Cases Cited
- California ex rel. Lockyer v. United States, 450 F.3d 436 (9th Cir. 2006) (sets four-part Rule 24(a)(2) test for intervention as of right)
- Wilderness Soc. v. U.S. Forest Serv., 630 F.3d 1173 (9th Cir. 2011) (Rule 24 should be construed broadly in favor of intervenors)
- United States v. City of Los Angeles, 288 F.3d 391 (9th Cir. 2002) (guidance on practical and equitable considerations for intervention)
- Sw. Ctr. for Biological Diversity v. Berg, 268 F.3d 810 (9th Cir. 2001) (courts accept well-pleaded allegations in intervention motions as true)
- Arakaki v. Cayetano, 324 F.3d 1078 (9th Cir. 2003) (discusses assumption of adequacy when government represents a constituency)
- Oakland Bulk & Oversized Terminal, LLC v. City of Oakland, 960 F.3d 603 (9th Cir. 2020) (explains limits of showing inadequate representation against a government defendant)
- Spangler v. Pasadena City Bd. of Ed., 552 F.2d 1326 (9th Cir. 1977) (permissive intervention principles)
- Freedom from Religion Found., Inc. v. Geithner, 644 F.3d 836 (9th Cir. 2011) (permissive intervention and jurisdictional considerations)
