*1 Before BRANCH, GRANT, and TJOFLAT, Circuit Judges.
GRANT, Circuit Judge:
Whеn a district court denies a preliminary injunction, the plaintiffs have a choice: they can appeal the denial, or they can proceed with trying the case on the merits. If they choose to appeal, they often face an uphill battle. Rather than just persuade the judge on the merits, the plaintiffs must show that they are likely to suffer an irreparable injury without a preliminary injunction, that the balance of the equities tips in their favor, and that a preliminary injunction would not be adverse to the public interest. Because the plaintiffs here have failed to establish at least one of those requirements—irreparable injury—we affirm.
I.
In March 2020, Congress enacted the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (2020). In the CARES Act, Congress, among other things, imposed a 120-day moratorium on evictions for rental properties receiving federal assistance. See 15 U.S.C. § 9058. After Congress’s moratorium expired on July 25, 2020, the President directed the Secretary of the Department of Health and Human Services and the Director of the Centers for Disease Control and Prevention to “consider whether any measures temporarily halting residential evictions of any tenants for failure to pay rent are reasonably necessary” to prevent the interstate spread of COVID-19. Fighting the Spread of COVID-19 by Providing Assistance to Renters and Homeowners, Exec. Order No. 13,945, 85 Fed. Reg. 49,935, 49,936 (Aug. 8, 2020).
To that end, the CDC issued a temporary eviction moratorium on September 4, 2020, that suspended the execution of eviction orders for nonpayment of rent. See Temporary Halt in Residential Evictions to Prevent the Further Spread of *3 COVID-19, 85 Fed. Reg. 55,292 (Sept. 4, 2020). The CDC pointed to 42 U.S.C. § 264 as providing a statutory basis for its order. That section grants the Surgeon General authority to “make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases from . . . one State or possession into any other State or possession.” 42 U.S.C. § 264(a). And it states that, for “purposes of carrying out and enforcing such regulations, the Surgeon General may provide for such inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human beings, and other measures, as in his judgment may be necessary.” Id.
The CDC’s order “does not relieve any individual of any obligation to pay rent,” but it does prohibit any landlord from evicting “any covered person” from a residential property for nonpayment of rent while the order is in effect. Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 85 Fed. Reg. at 55,292. To qualify as a “covered person” who can benefit from the eviction moratorium, a tenant must provide her landlord an “executed copy” of a declaration. Id. at 55,293. The declaratiоn requires that the tenant attest to several provisions. First, that she has “used best efforts to obtain all available government assistance for rent or housing.” Id. at 55,297. Second, that she meets one of *4 several income qualifications, including that she expects to earn “no more than $99,000” in 2020 (or $198,000 if she files a joint tax return). Id. Third, that she is “unable to pay [her] full rent” due to “substantial loss of household income, loss of compensable hours of work or wages, lay-offs, or extraordinary out-of-pocket medical expenses.” Id. (footnote omitted). Fourth, that she is “using best efforts to make timely partial payments,” taking into account “other nondiscretionary expenses.” Id. Fifth, she must attest that, if evicted, she “would likely become homeless, need to move into a homeless shelter, or need to move into a new residence shared by other people who live in close quarters because [she has] no other available housing options,” which are defined as “available, unoccupied residential property” that would comply with occupancy standards and “not result in an overall increase of housing cost” for her. Id. Sixth, that she understands that she “must still pay rent or make a housing payment” and that “fees, penalties, or interest for not paying rent or making a housing payment on time” may still be charged. Id. And seventh, that she understands that when the eviction moratorium expires, her “housing provider may require payment in full for all payments not made prior to and during” the moratorium. Id.
The CDC’s order was originally set to expire on December 31, 2020. Id. at 55,292. But days before the deadline, Congress enacted the Consolidated Appropriations Act, which extended the CDC’s order through January 31, 2021. See Pub. L. No. 116-260, § 502, 134 Stat. 1182, 2079 (2020). On January 29, the CDC extended the order again, this time through March 31, 2021. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 86 Fed. *5 Reg. 8020 (Feb. 3, 2021). And as the March deadline approached, the CDC extended its order through June 30, 2021. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 86 Fed. Reg. 16,731 (Mar. 31, 2021). Finally, on June 24, 2021, the CDC pushed the order’s expiration date back yet again, this time until July 31, 2021. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 86 Fed. Reg. 34,010 (June 28, 2021).
The plaintiffs here are several landlords seeking to evict their tenants for nonpayment of rent and a trade association for owners and managers of rental housing. In September 2020, they filed a complaint challenging the CDC’s eviction moratorium. Their amended complaint alleges, among other things, that the CDC’s order exceeds its statutory and regulatory authority, is arbitrary and capricious, and violates their constitutional right to access the courts. They then moved for a preliminary injunction, which the district court denied. This is their appeal.
II.
We review the district court’s decision to deny a preliminary injunction for
abuse of discretion, though “we review and correct errors of law without deference
to the district court.”
Alabama v. U.S. Army Corps of Eng’rs
,
III.
A preliminary injunction is аn “extraordinary remedy never awarded as of
right.”
Winter v. Nat. Res. Def. Council, Inc.
,
We have doubts about the district court’s ruling on the first factor: whether the plaintiffs are likely to succeed on the merits. The only statutory basis the government identifies for the CDC’s order is 42 U.S.C. § 264(a). At first glance, that provision could be read to vest the CDC with general authority to enact any and all regulations that “are necessary to prevent the introduction, transmission, or spread of communicable diseases” between states. 42 U.S.C. § 264(a). Indeed, the government was unwilling to articulate any limits to the CDC’s regulatory power at oral argument. But in the very next sentence, Congress specified the means that the CDC can use to carry out that authority: the “inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found *7 to be so infected or contaminated as to be sources of dangerous infection to human beings, and other measures, as in his judgment may be necessary.” Id. In other words, the second sentence of § 264(a) appears to clarify any ambiguity about the scope of the CDC’s power under the first.
In any event, despite our doubts, we need not consider or resolve the scope
of the CDC’s statutory authority. A preliminary injunction requires more than a
likelihood of success on the merits—much more.
See Siegel
,
Because the landlords here have chosen to seek a preliminary injunction,
they must show that, among other things, they are likely to suffer an irreparable
injury during the pendency of their lawsuit absent a preliminary injunction.
See Ne. Fla. Chapter
,
The landlords say that they are suffering three irreparable injuries. First , they say that the CDC’s order is unconstitutional—that it “exceeds the limited grant of authority Congress bestowed on CDC” and “illegally deprives the [landlords] of their constitutionally-guaranteed access to the courts.” According to the landlords, these “intangible” constitutional injuries are irreparable. Second , the landlords say that they have been “wrongfully deprived of access to their unique property” and that this too constitutes an irreparable injury. Third , the landlords assert that they will never recover the unpaid rent because their tenants are necessarily “insolvent.” None of these asserted injuries satisfies the strict standard for irreparable harm.
We start with the landlords’ first argument: that the violation of their
constitutional rights constitutes an irreparable injury. This argument finds no
support in our precedents. In fact, those precedents cut the other way. In
Siegel v.
LePore
, this Court, sitting en banc, rejected the notion that the “violation of
constitutional rights always constitutes irreparable harm.”
Next, the landlords argue that they are suffering an irreparable injury
because they have been “deprived of access to their unique property.” They say
that being temporarily deprived of their property is a “
per se
irreparable injury.”
This argument also misses the mark. Some interferences with real property
interests undoubtedly constitute irreparable injuries. For example, when a party
threatens to foreclose on or take another’s real property, courts often deem that an
irreparable injury.
[3]
See, e.g.
,
Sundance Land Corp. v. Cmty. First Fed. Sav. &
Loan Ass’n
,
Finally, we consider the landlords’ argument that their injury is irreparable
because their tenants are “insolvent” and will not be able to repay their debts. As a
general rule, courts refuse to issue preliminary injunctions when an “adequate
alternate remedy” is available, such as “money damages or other relief.” 11A
Charles Alan Wright, Arthur R. Miller & Mary Kay Kane,
Federal Practice and
Procedure
§ 2948.1 (3d ed. 2013) (footnote omitted). Our Circuit is no different.
We have said that the “possibility that adequate compensatory or other corrective
relief will be available at a later date” weighs “heavily against a claim of
irreparable harm.”
Ne. Fla. Chapter
,
The landlords acknowledge this general rule and concede that their asserted
injury is “economic.” But they nonetheless contend that collectability concerns
can render an economic injury irreparable. True enough. In “extraordinary
circumstances,” concerns about collectability can “give rise to the irreparable harm
necessary for a preliminary injunction.” 11A Wright, Miller & Kane,
Federal
Practice and Procedure
§ 2948.1 (3d ed. 2013). We recognized that possibility in
United States v. Askins & Miller Orthopaedics, P.A.
, reasoning that “the
collectability of a future money judgment” is “relevant in determining whether
legal remedies are adequate” for preliminary-injunction purposes.
In Askins & Miller , the IRS sought to collect unpaid employment taxes from a “serial employment-tax delinquent.” Id. at 1351. After seven years of failed attempts, the IRS sued the company and sought a preliminary injunction to “prevent Askins & Miller from incurring further tax liabilities while the litigation was still ongoing.” Id. at 1353. It attached a declaration to its motion for a preliminary injunction, which detailed the IRS’s lengthy attempts to recover the unpaid taxes: meeting with the company “at least 34 times”; serving levies on “approximately two dozen entities,” most of which indicated that no funds were available; and entering into two failed installments agreements. Id. at 1352. The declaration also described the IRS’s discovery of the company’s affirmative attempts to “hide” its funds. Id. Given that substantial evidence, we concluded that the record “amply” demonstrated that “in all likelihood, the government [would] never recoup [its] losses.” Id. at 1360.
In sharp contrast to the detailed evidence provided in
Askins & Miller
, the
landlords here gave us little to go on. The only evidence the landlords provided—
the CDC declaration—is a flimsy basis for drawing the necessary conclusions
about a tenant’s ability to pay
after
the moratorium as opposed to
during
the
moratorium. In relevant part, that declaration requires a tenant to attest that her
income does not exceed the limits set in the order; that because of loss of income,
loss of work, or extraordinary medical expenses she cannot pay rent; that she has
used “best efforts” to make timely partial payments; and that if she were evicted
*12
she would likely become homeless or need to move into a shared-living setting
because she has no other “available housing options.”
These attestations certainly show that the tenants could not afford their rent at the time they were signed. But they paint a hazy picture—at best—of any given tenant’s ability to pay later. The declaration sheds little light on, among other things, a tenant’s educational background, employment history, criminal history, credit history, or rental payment history—factors that would be probative of a tenant’s ability to pay after the moratorium is lifted.
Nor have the landlords offered any evidence that the usual tools for
collecting on a civil judgment for unpaid rent would be ineffective.
See Snook
,
The dissent nonetheless contends that the declaration alone satisfies the
landlords’ burden to establish that their economic injury is likely irreparable.
See
Dissenting Op. at 78. We disagree. Take the fourth condition. The tenant attested
that she has used “best efforts” to make timely partial payments. 85 Fed. Reg. at
55,297. From this the dissent makes several inferences: that the tenant, for
instance, has “no illiquid assets that can be sold” and “no ability to get a loan to
cover rental expenses.” Dissenting Op. at 80. These inferences are not enough to
show that a tenant will never be able to repay her landlord. But they are also
unwarranted. Nothing in the declaration requires that a tenant sell all her
possessions or throw herself at the mercy of a payday lender before invoking the
eviction moratorium. “Best efforts” does not mean “every conceivable effort.”
Indeed, “best efforts” is “implicitly qualified by a reasonableness test—it cannot
mean everything possible under the sun,” without regard to consequences.
Coady
Corp. v. Toyota Motor Distribs., Inc.
,
Just as a business need not “spend itself into bankruptcy” to comply with a
best-efforts clause, a tenant need not render herself destitute before invoking the
eviction moratorium.
Bloor v. Falstaff Brewing Corp.
,
The fifth condition likewise sheds little light. In that condition, the tenant
attested that she would likely have difficulties finding “available, unoccupied
residential рroperty . . . that would not result in an overall increase” in housing
costs.
But what common sense cannot tell us is what the tenant’s financial picture will look like at the end of the moratorium. After all, despite its potential deficit in statutory authority, the moratorium was designed as a short-term solution to a short-term problem. Without any information about a tenant’s financial or *15 employment picture, we have no way to evaluate whether she will ever be able to repay her landlord; to decide otherwise based solely on the declaration would be to conclude that no one who signed the declaration is likely to repay their debts after the moratorium expires. That we cannot do. And it is not enough for us to assume that some tenants will not be able to pay back their landlords—that is almost certainly true. But these landlords must show that their tenants are unlikely to repay them.
Given the lack of evidence and the availability of substantial collection
tools, we cannot conclude that the landlords have met their burden of showing that
an irreparable injury is likely.
See Siegel
,
* * *
Rather than proceed with trying the case on the merits, the landlords chose to pursue a preliminary injunction on appeal. As a result, they needed to win on more than just the merits. Because they failed to show that they are likely to suffer an irreparable injury, we AFFIRM the district court’s order denying a preliminary injunction.
TJOFLAT, Circuit Judge, concurring:
In order to obtain a preliminary injunction, a plaintiff must establish four prerequisites: “(1) a substantial likelihood that he will ultimately prevail on the merits; (2) that he will suffer irreparable injury unless the injunction issues; (3) that the threatened injury to the movant outweighs whatever damage the proposed injunction may cause to the opposing party; and (4) that the injunction, if issued, would not be adverse to the public interest.” United States v. Jefferson Cnty. , 720 F.2d 1511, 1519 (11th Cir. 1983). If any one of these prerequisites is not satisfied, a district court may not issue the injunction. See id. Though I concur in the majority opinion, I write separately to shed additional light on why plaintiffs have failed to establish one of these prerequisites—irreparable harm.
My concurrence proceeds in three parts. First, I’ll briefly recap some key provisions of the CDC’s eviction moratorium order. Then, I’ll describe the generаl eviction model, as well as my views on how the plaintiffs—if they actually sought to evict their tenants and recoup unpaid rent—should have proceeded in this case. And finally, I’ll explain why the availability of this alternative route—seeking eviction and a judgment for unpaid rent in state court—precludes a finding of irreparable harm.
I.
The CDC’s eviction moratorium temporarily prohibits the eviction of certain covered persons. To qualify as a covered person, the tenant must provide their landlord with a declaration stating, under penalty of perjury, that: (1) “[t]he individual has used best efforts to obtain all available government assistance for rent or housing”; (2) the individual satisfies some specific income requirements; (3) “the individual is unable to pay the full rent or make a full housing payment due to substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses”; (4) “the individual is using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses”; and (5) “eviction would likely render the individual homeless—or force the individual to move into and live in close quarters in a new congregate or shared living setting—because the individual has no other available housing options.” Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 85 Fed. Reg. 55,292, 55,293 (Sept. 4, 2020) (hereinafter “the Order”).
The Order does not, however, “relieve any individual of any obligation to pay rent, make a housing payment, or comply with any other obligation that the individual may have under a tenancy, lease, or similar contract.” Id. at 55,294. In *18 fact, the Order expressly provides that landlords may charge and collect “fees, penalties, or interest” because of the tenant’s failure to pay rent on time, id. , and nothing in the Order precludes a landlord from suing their tenant for unpaid rent. The Order also permits evictions in certain circumstances, such as when the tenant engages in criminal activity while on the premises; threatens the health or safety of other residents; damages or poses an immediate and significant risk of damage to property; violates any applicable building code, health ordinance, or other similar regulation relating to health and safety; or violates any other contractual obligation, “other than the timely payment of rent or similar housing-related payment.” Id.
But perhaps most importantly, nothing in the CDC’s Order prevents landlords from initiating a judicial proceeding to have a tenant declared in default and evicted. “Evict,” under the Order, is defined only as “any action by a landlord, owner of a residential property, or other person with a legal right to pursue eviction or a possessory action, to remove or cause thе removal of a covered person from a residential property.” Id. at 55,293. While one could plausibly read that definition as precluding a lawsuit for eviction, the better reading is that the Order only precludes eviction as a remedy during the moratorium.
Consider, for example, the CDC’s own guidance on the meaning of “eviction”:
The Order is not intended to terminate or suspend the operations of any state or local court. Nor is it intended to prevent landlords from starting eviction proceedings, provided that the actual eviction of a covered person for non-payment of rent does NOT take place during the period of the Order .
CDC, HHS/CDC Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19: Frequently Asked Questions 1,
https://www.cdc.gov/coronavirus/2019-ncov/downloads/eviction-moratoria-order- faqs.pdf (last accessed June 30, 2021) (emphasis added). This guidance is consistent with the stated intent of the Order. It would make little sense for an eviction moratorium directed at “[m]itigating the spread of COVID-19 within congregate or shared living settings, or through unsheltered homelessness,” Order at 55,293, to prevent the mere filing of an eviction proceeding when only the actual removal of tenants presents COVID-19 transmission concerns.
So, looking at the Order and the CDC’s guidance, two things become apparent. First, the Order does not prevent landlords from filing a suit that seeks a judgment for their tenants’ unpaid rent. And second, the Order does not prevent landlords from initiating judicial proceedings that seek their tenants’ evictions, so long as the actual eviction occurs after the moratorium has expired. Keep both facts in mind going forward.
II.
To understand how the CDC’s Order does—and does not—affect evictions as a judicial remedy, let’s look at a typical eviction proceeding in the non-Order world. We’ll use plaintiff Brown, a resident of Virginia with a tenant in Virginia, as an example. [1]
To commence the eviction process in Virginia, Brown would serve his tenant with a five-day termination notice pursuant to Virginia Code § 55.1- 1245(f). [2] This notice, in effect, requires the tenant to either pay rent or move out of the property. Id. If, after five days, the tenant failed to comply with the termination notice, then under Virginia Code § 8.01-126, Brown would provide the General District Court [3] with “a statement under oath of the facts which authorize the removal of the tenant” and would file a Summons for Unlawful Detainer— Virginia’s name for a “civil claim for eviction.” [4] The General District Court [1] Of course, eviction proceedings will vary by judge and jurisdiction. For the sake of simplicity, I describe Virginia’s eviction process in very general terms.
[2] Though Virginia Code § 55.1-1245(f) required a fourteen-day termination notice during much of the pandemic, the statute reverted to a five-day notice requirement on July 1, 2021. Id. Because Brown’s declaration in support of the motion for preliminary injunction refers to a five- day termination notice, I will do the same. In Virginia, General District Courts have “exclusive authority to hear civil cases with
claims of $4,500 or less and share authority with the [Virginia state] circuit courts to hear cases with claims between $4,500 and $25,000.” See Virginia’s Judicial System, “General District Court,” http://www.courts.state.va.us/courts/gd/home.html (last visited May 26, 2021). *21 would then issue the Summons and assign a return hearing date (within 30 days of the date of filing the Summons) on which Brown and the tenant may appear. See id . at § 8.01-126(b).
At the return hearing, the tenant can either concede the allegations of wrongdoing in the Summons or contest the default. If the tenant contests, the General District Court will set a trial date, and either of the parties may request that the Court order them to file pleadings under Virginia Rule of Supreme Court 7B:2 to delineate the issues for trial. For Brown, this pleading would come in the form of a “Bill of Particulars”—in essence, a more detailed statement of the bases of his claim for eviction. See Va. R. Sup. Ct. 7B:2 . Likewise, the tenant may be required to file “Grounds of Defense” asserting any affirmative defenses to the eviction. See id. If, at trial, the General District Court rejects the tenant’s defenses and rules that Brown may legally evict his tenant, the tenant will have ten days to appeal. Va. Code § 8.01-129(a). And once the tenant fails to appeal—or once Brown prevails on appeal—Brown can receive from the General District Court a judgment for Unlawful Detainer (Civil Claim for Eviction),” http://www.courts.state.va.us/forms/district/dc421.pdf. In essence, the Summons functions as a
civil complaint. *22 for possession of the premises and can subsequently request a writ of eviction. [5] See id. at § 8.01-129(b).
How, then, does the plaintiffs’ federal lawsuit change this process? Remember, plaintiffs Brown, Rondeau, Krausz, Jones, and the National Apartment Association—all of whom seek to “retak[e] possession of their homes”—filed an amended complaint demanding a “judgment against CDC invalidating CDC’s Eviction-Moratorium Order and any other relief that may be appropriate.” The amended complaint includes one count that alleges the CDC’s Order—on its face—violates the plaintiffs’ constitutional right of access to courts, as well as other, separate counts mounting challenges under the “Administrative Procedure Act,” the “Supremacy Clause,” “Article I, § 1” of the United States Constitution, and the “Tenth Amendment.” [6] And the same day they filed their amended *23 complaint, the plaintiffs also filed a motion for preliminary injunction seeking to “prohibit[] Defendants from enforcing the CDC Order.”
Ironically, though, the CDC’s Order does nothing to prevent the plaintiffs from pursuing eviction of their tenants. Indeed, the plaintiffs appear to recognize this fact. For example, in his declaration supporting the preliminary injunction motion, Brown concedes that—despite the CDC’s Order—he may nevertheless begin eviction proceedings against his tenant pursuant to “legal process in Virginia state courts.” So, the CDC’s Order serves only to operate as an affirmative defense to eviction for Brown’s tenant, not as a total bar to the commencement of eviction proceedings.
Here’s how that defense would operate in practice. In a Virginia eviction proceeding, the tenant would present the CDC’s Order and an affidavit stating that they are a “covered person” under the Order as an affirmative defense. Brown *24 would then move to strike the affirmative defense as insufficient under Virginia Code § 8.01-274 on at least two grounds. First, he would claim that the tenant’s affidavit is factually inadequate—that is, the tenant is not actually a “covered person” under the Order. And second, he would contend that the CDC’s Order is unconstitutional under all of the theories he has asserted in federal court. The Virginia state court would then be required to hash out the constitutionality of the Order and—if it found the Order constitutional—whether the tenant is covered by it.
An injunction issued by the District Court in the plaintiffs’ favor does
nothing to change that. To start, injunctions bind only “the parties;” “the parties’
officers, agents, servants, employees, and attorneys;” and “other persons who are
in active concert or participation with anyone described in Rule 65(d)(2)(A) or
(B).” Fed R. Civ. P. 65(d)(2)(A)–(C). Plaintiffs’ tenants are not parties in this
case, nor are they in privity with the defendants, and thus they will not be bound by
the injunction.
See ADT LLC v. NorthStar Alarm Servs., LLC
,
Put plainly, an injunction issued by the District Court simply allows the plaintiffs to pursue eviction proceedings in their respective state courts— something the CDC’s Order already permits. Barring enforcement of the Order against the plaintiffs does not preclude their tenants from later raising the Order as a defense to eviction. So, if the plaintiffs want to evict their tenants, they will need to litigate the constitutional validity of the CDC’s Order in the state courts at some point. With or without an injunction.
III.
Keeping in mind that the plaintiffs have been able to sue their tenants for eviction and unpaid rent throughout the pendency of the eviction moratorium, let’s turn to the core of this case. Plaintiffs have alleged three types of irreparable harm. The first, “irreparable constitutional injur[y],” is grounded in the plaintiffs’ access to court claim and the notion that the plaintiffs have a “right only to be subject to laws issued by Congress.” The second irreparable harm stems from the plaintiffs’ allеged inability to recover from insolvent—that is, “judgment-proof”—tenants. And the third emanates from the deprivation of access to the plaintiffs’ leased properties. I’ll consider each in turn.
A.
Plaintiffs contend that the CDC’s Order is “unconstitutional in two distinct
ways—it unconstitutionally exceeds the limited grant of authority Congress
bestowed on CDC, and it illegally deprives the Property Owners of their
constitutionally-guaranteed access to the courts.” Because these injuries “are
intangible,” the plaintiffs argue that they must also be irreparable. Not so.
Geothermal Corp.
,
Plaintiffs’ first contention—that merely being subjected to a potentially
unconstitutional law is categorically an irreparable harm—is a bit befuddling. To
start, this Court has rejected the notion that “a violation of constitutional rights
always constitutes irreparable harm,”
Siegel v. LePore
,
In any event, even if the plaintiffs’ general constitutional claim presents
some
injury, the plaintiffs have a remedy for it: they can contest the constitutional
validity of the CDC’s Order in state court.
N. California Power Agency v. Grace
Geothermal Corp.
,
Plaintiffs’ access to courts theory suffers from similar defects. Like their
first theory, the plaintiffs’ access to court injury is not one this Court has
traditionally recognized as irreparable.
See City of Jacksonville
,
official action is presently denying an opportunity to litigate for a class of potential plaintiffs.
The opportunity has not been lost for all time, however, but only in the short term; the object of
the denial-of-access suit, and the justification for recognizing that claim, is to place the plaintiff
in a position to pursue a separate claim for relief once the frustrating condition has been
removed.”
Christopher v. Harbury
,
Put simply, an injunction here does nothing to change the plaintiffs’
position; they still need to go challenge the CDC’s Order in state-court eviction
proceedings. Because our case law conceives of irreparable harm as an injury that
will be suffered “
unless the injunction issues
,” I see no way to transmute the
plaintiffs’ alleged constitutional injuries into irreparable harms here.
Jefferson
Cnty.
,
B.
Plaintiffs have also alleged that because they may not be able to recover economic damages from their “judgment-proof” tenants, they have suffered irreparable harm. Again, there are a few problems with this argument.
First, this Court has clearly held that “[a]n injury is ‘irreparable’ only if it
cannot be undone through monetary remedies.”
City of Jacksonville
, 896 F.2d at
1285. We have stated, however, that “when a later money judgment might undo an
alleged injury,” there may still be irreparable harm if “damages would be ‘difficult
or impossible to calculate.’”
Scott v. Roberts
,
Second, even if we set aside our case law precluding monetary irreparable harms, nothing in the CDC’s Order prevents the plaintiffs from pursuing lawsuits to recover unpaid rent or to enforce the contractual terms of their rental agreements. Indeed, the Order expressly provides that landlords may continue to charge or collect “fees, penalties, or interest as a result of the failure to pay rent or other housing payment on a timely basis.” Order at 55,294. So, although their tenants are currently unable to pay rent, the plaintiffs are not precluded from *32 obtaining a money judgment and seeking execution on that judgment through, for example, writs of execution and garnishment.
On this point, I am unconvinced by the plaintiffs’ reliance on
United
States v. Askins & Miller Orthopaedics, P.A.
,
By contrast, the plaintiffs’ theory of insolvency relies almost entirely on the
fact that their tenants have submitted CDC declarations stating that they will make
less than $99,000 this year and are currently unable to pay full rent.
See
Oral
Argument at 6:30–7:30. But plaintiffs have presented no evidence that writs of
execution, garnishment, or other methods of executing on a judgment would be
unsuccessful; no evidence of their tenants’ employment prospects; no evidence of
their tenants’ assets; no evidence of their efforts to collect unpaid rent; and no
*33
evidence that the tenants failed to pay rent prior to the pandemic. In fact,
declarations from the plaintiffs suggest that most of their tenants paid on time
before the COVID-19 outbreak. In my view, the plaintiffs’ actual concern is that
they will not be able to collect unpaid rent
immediately
following the expiration of
the moratorium, not that they will
never
be able to collect it. Accordingly, I would
hold that the plaintiffs’ speculative allegations of insolvenсy are not enough to
demonstrate irreparable harm.
See Ruffin v. Great Dane Trailers
,
C.
Plaintiffs next claim that because they have been “denied access to their unique real property,” they have been irreparably harmed. But this argument fails for the same reason as the plaintiffs’ “constitutional harms.”
At risk of repetition, the CDC’s Order does not—and has never—prevented
the plaintiffs from initiating eviction proceedings in state court. Had the plaintiffs
done so, they could have challenged the constitutionality of the Order and possibly
prevailed, allowing them to evict their tenants. But instead, the plaintiffs sought a
preliminary injunction in federal court that, in effect, gives them nothing. Even
with the injunction, the plaintiffs will still need to return to state court and hash out
the constitutionality of the CDC’s Order during eviction proceedings.
See
part II,
supra
. If the plaintiffs’ alleged harm is the same with or without the injunction, I
see no way that it can be “irreparable.”
See Jefferson Cnty.
,
Regardless, I believe the District Court was right to reject the plaintiffs’
categorical contention that temporary deprivation of residential property is a “
per
se
irreparable injury.” While this Court has said that “irreparable injury is suffered
when one is wrongfully ejected from his home,”
Johnson v. U.S. Dep’t of Agric.
,
*35
IV.
In sum, an injunction should issue only if a district court judge finds “that
certain, immediate, and irreparable injury to a substantial interest of the movant
will occur if the application [for the injunction] is denied and the final decree is in
his favor.”
Calagaz v. DeFries
,
BRANCH, Circuit Judge, dissenting:
In 1944, Congress enacted the Public Health Service Act, Pub. L. No. 78- 410, 58 Stat. 682 (codified as amended at 42 U.S.C. § 201 et seq .). The Act provides, in relevant part, that “[t]he Surgeon General, with the approval of the Secretary, is authorized to make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases . . . from one State or possession into any other State or possession.” [1] 42 U.S.C. § 264(a). Three-quarters of a century later, the U.S. Centers for Disease Control and Prevention (“CDC”) invoked this provision to enact, for the first time, a nationwide residential eviction moratorium. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 85 Fed. Reg. 55,292 (Sept. 4, 2020) [hereinafter CDC Order].
Several landlords and an association of rental housing providers sued the
government to challenge the CDC Order and sought a preliminary injunction,
which the district court denied.
[2]
On appeal, they argue that the CDC Order
exceeds the CDC’s statutory authority under § 264(a) and that money damages
*38
against their insolvent tenants would be an inadequate remedy for their financial
harms. Because the landlords have shown that the CDC’s interpretation of
§ 264(a) stretches the meaning of the statute “beyond what the statutory text can
naturally bear,”
Fla. Dep’t of Revenue v. Piccadilly Cafeterias, Inc.
,
I. Background
A. Facts
1. The CDC Order On September 4, 2020, the CDC invoked its authority under “Section 361 of the Public Health Service Act (42 U.S.C. 264) and 42 C.F.R. 70.2” to issue a nationwide residential eviction moratorium. See CDC Order, 85 Fed. Reg. at 55,292, 55,297. In the order, the CDC explained that:
[E]victions threaten to increase the spread of COVID-19 as they force people to move, often into close quarters in new shared housing settings with friends or family, or congregate settings such as homeless shelters. The ability of these settings to adhere to best practices, such as social distancing or other infection control measures, decreases as populations increase. Unsheltered homelessness also increases the risk that individuals will experience severe illness from COVID-19.
Id . at 55,296. While the CDC Order is in place, “landlords are prohibited from evicting a covered person from a residential property for the non-payment of rent.” [3]
To qualify as a “covered person,” a tenant must provide their landlord with a declaration stating, under penalty of perjury, that they:
(1) have “used best efforts to obtain all available government assistance for rent or housing”; [4]
(2) “expect to earn no more than $99,000 in annual income”; (3) are “unable to pay [their] full rent or make a full housing payment due to substantial loss of household income”;
(4) are “using best efforts to make timely partial payments that are as close to the full payment as [their] circumstances may permit, taking into account other nondiscretionary expenses”; and (5) “would likely [be] rendere[d] . . . homeless [by eviction]—or force[d] . . . to move into and live in close quarters in a new congregate or shared living setting—becausе [they] ha[ve] no other available housing options.” [5]
Id . at 55,293. The CDC Order is not limited in its application to tenants infected with or exposed to COVID-19. Id .
The CDC Order states that it “does not relieve any individual of any obligation to pay any rent, make a housing payment, or comply with any other obligation that the individual may have under a tenancy, lease, or similar contract.” Id . at 55,294. Nor does it “preclude[] the charging or collecting of fees, penalties, or interest as a result of the failure to pay rent or other housing payment on a timely basis, under the terms of any applicable contract.” Id . Finally, it permits a landlord to evict a tenant, based on the tenant’s:
(1) [e]ngaging in criminal activity while on the premises; (2) threatening the health or safety of other residents; (3) damaging or posing an immediate and significant risk of damage to property;
(4) violating any applicable building code, health ordinance, or similar regulation relating to health or safety; or
(5) violating any other contractual obligation, other than the timely payment of rent or similar housing-related payment (including non- payment or late payment of fees, penalties, or interest).
Id . (footnote omitted).
The CDC Order was initially set to expire on December 31, 2020. Id . at 55,297. On December 27, 2020, Congress passed the Consolidated Appropriations Act of 2021, Pub. L. No. 116-260, 134 Stat. 1182, 2078–79 (2020), which states: “The order issued by the Centers for Disease Control and Prevention under section 361 of the Public Health Services Act (42 U.S.C. 264), entitled ‘Temporary Halt in Residential Evictions To Prevent the Further Spread of COVID-19 . . . is extended through January 31, 2021, notwithstanding the effective dates specified in such *41 Order.” Congress also appropriated $25 billion in emergency rental assistance for certain tenants. See id . at 2069–78. On January 29, 2021, the CDC extended the order through March 31, 2021. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 86 Fed. Reg. 8020–21, 8025 (Feb. 3, 2021). And on March 29, 2021, the CDC extended the order through June 30, 2021. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 86 Fed. Reg. 16,731, 16,738 (Mar. 31, 2021).
On March 11, 2021, Congress passed the American Rescue Plan Act of 2021, Pub. L. No. 117-2, 135 Stat. 4, 54–58, which appropriated another $21.5 billion in emergency rental assistance. Finally, on June 24, 2021, the CDC extended the order through July 31, 2021. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 86 Fed. Reg. 34,010, 34,016 (June 28, 2021). Although the CDC states that it “does not plan to extend the Order further,” it has reserved the power to do so in case of “an unexpected change in the trajectory of the pandemic.” Id . at 34,013.
2. The Landlords
i. Richard Lee Brown Richard Lee Brown owns a residential property in Winchester, Virginia. In his declaration, he alleges that his tenant has fallen behind on rent and owes $8,092 *42 in unpaid rent. He states that, based on information provided to him by his tenant, he believes that she is a “covered person” as defined by the CDC Order, but that he still intends to seek an eviction against her. He alleges that his “tenant is also insolvent, and [he] will not be able to obtain any economic relief or damages from her.”
ii. Jeffrey Rondeau Jeffrey Rondeau owns a residential property in Vale, North Carolina, that he purchased “to be [his] home when [he] retire[s].” In his declaration, he alleges that his tenant owes $2,100 in unpaid rent and associated legal fees and has not paid any rent since July 6, 2020. He alleges that, after he obtained a writ of summary ejectment from a North Carolina state court, his tenant provided him with an affidavit consistent with the CDC Order, but that he still intends to evict the tenant. Rondeau declared that his tenant is insolvent and that if he is “unable to earn any rental income for the property prior to January 2021, [he] will likely be unable to pay [his] existing mortgage and will be at risk of foreclosure.” During the pendency of this appeal, however, his tenant vacated the property.
iii. David Krausz David Krausz owns a residential property in Columbia, South Carolina. In his declaration, he alleges that his tenant fell behind on rent in July 2020 and owes approximately $2,265 in unpaid rent. [7] Shortly after he filed for an eviction in July 2020, he entered into a consent agreement with the tenant, which provided that the tenant would have four days to pay $700 towards past-due rent, and then was required to pay an additional $2,265 in unpaid rent by August 31, 2020. Although the tenant paid the $700, she failed to pay any portion of the outstanding $2,265.
Krausz then scheduled an eviction of his tenant. Before the eviction could be carried out, his “tenant provided the South Carolina court with a declaration consistent with the CDC’s September 4, 2020 eviction order” and “[t]he South Carolina court . . . immediately stayed the eviction.” [8] Krausz alleges that his “tenant appears to be insolvent, and [he] will not likely be able to obtain any economic relief or damages from her.”
iv. Sonya Jones
Sonya Jones owns a residential property in Jesup, Georgia. In her declaration, she alleges that her tenant fell behind on rent and owes more than $1,800 in unpaid rent. After Jones initiated eviction proceedings in a Georgia court, “the tenant said that his challenge to the eviction was related to the COVID- 19 pandemic, and the court continued all proceedings until January 2021 in purported compliance with [the] CDC’s eviction moratorium order.” Jones states that, based on the information provided to her by her tenant and her tenant’s representations in court, she believes he is a “covered person” as defined by the CDC Order. Like the other landlords, she alleges that her “tenant is also insolvent, and [she] will not be able to obtain any economic relief or damages from him.”
v. The National Apartment Association
The National Apartment Association is “the largest national trade association dedicated to the interests of rental housing providers in the United States.” It “represents the owner[s] and managers of over 10 million apartment homes and has 85,185 members that [allegedly] have been irreparably harmed by the CDC Order and its unwarranted insertion of authority intо landlord/tenant regulation in an area historically addressed by the courts and state legislatures.” In particular, the Association alleges that “the CDC order has limited housing owners and managers from providing contracted services to tenants who have paid their rent and paying financial obligations like taxes and mortgages.”
B. Procedural History
The landlords filed a complaint against the government in the U.S. District Court for the Northern District of Georgia and sought a preliminary injunction that would block the government from enforcing the CDC Order. In their motion for a preliminary injunction, the landlords argued that the CDC Order exceeds the statutory authorization of § 264(a), and that, without an injunction, they will “suffer irreparable [financial] harm . . . through lost business opportunities that [cannot] be recovered from the tenant[s]” because “tenants covered by the CDC Order, by definition, are insolvent.” See 5 U.S.C. § 706(2)(C) (providing that we must “hold unlawful and set aside agency action . . . found to be . . . in excess of statutory jurisdiction, authority, or limitations, or short of statutory right”).
In its response, the government argued that the CDC acted within its statutory authority when it issued the order and that the landlords had failed to demonstrate that they would suffer an irreparable injury absent an injunction. The government argued that the landlords’ allegations about their tenants’ insolvency “lack[ed] support” and did not meet their burden of “a well-supported showing that *46 a future monetary judgment will be inadequate.” The landlords replied that “the CDC Order requires the tenant to be insolvent and ‘unable to pay the full rent . . . due to a substantial loss of household income’ and using ‘best efforts to make timely partial payments.’”
The district court held an evidentiary hearing on the motion on October 20, 2020. At the hearing, the landlords argued that “the fact that these tenants are all covered persons under the CDC order makes them per se judgment proof.” The government responded that the landlords failed to “ma[ke] the requisite evidentiary showing that any of these . . . tenants are insolvent.” In particular, the government argued that “the [CDC] order [does] not require that the tenants be insolvent, the order requires that the tenants make below a certain income threshold and are unable to pay full rent and are using best efforts to make timely partial payments.”
The district court challenged the landlords’ argument about their tenants’ insolvency. It stated: “I’m looking at the [tenants’] declaration[s], where does it say [the tenants] are insolvent? I see that it says they’re unable to make full rent, but where in the declaration does it say ‘I am insolvent’”? The landlords conceded that “the declaration itself doesn’t say they’re insolvent,” but argued that the fact that their tenants met the terms of the CDC Order, especially “condition[s] three and four”—that “they are unable to pay the full rent or make a full housing payment due to a substantial loss of household income” and that “they are using *47 best efforts to make timely partial payments as close to full pаyment as the individual’s circumstances permit”—coupled with “the fact that these individual tenants are all paying nothing, that equates to a declaration that these tenants are unable to pay anything towards their rent, that is a declaration under oath that the best efforts that they can make because of their financial circumstances is zero payment.” After the hearing, the district court issued an order denying the landlords’ motion for a preliminary injunction. It found that the landlords failed to “establish[] their burden of persuasion as to any of the . . . prerequisites” for a preliminary injunction.
In its order, the district court rejected the landlords’ argument “that the CDC
acted without statutory and regulatory authority.” It found that “the plain
language” of § 264(a) makes clear that “Congress gave the Secretary of HHS broad
power to issue regulations necessary to prevent the introduction, transmission, or
spread of communicable diseases.” Based on “the clear and broad delegation of
authority in the first sentence of § 264(a); the context provided by the subsequent
subsections; . . . and persuasive authority from”
Independent Turtle Farmers of
*48
Louisiana v. United States
,
The district court also found that the landlords “ha[d] not met their burden to
clearly show an irreparable injury.” In the district court’s view, the landlords
failed to demonstrate “that their tenants are insolvent, and thus any judgment
obtained against them would be uncollectible.” It cited our decision in
United
States v. Askins & Miller Orthopaedics, P.A.
,
the occupation of any of the tenants, whether they are employed or unemployed (and, if unemployed, their prospect for reemployment), whether they are (or have been) sick, whether they have money in the bank, whether they qualify for some type of government assistance, whether they could obtain a loan to cover their rent or the nature of their credit histories.
Finally, the district court found that “the public’s interest in controlling the spread of COVID-19 i[s] not outweighed by [the landlords’] interests in preventing the . . . economic harm alleged here.” It found that the government “has shown that COVID-19 is an easily transmissible, potentially serious and sometimes fatal disease,” and that “the consequences of eviction (overcrowding, homelessness and housing instability) undermine crucial strategies for containing COVID-19.” It then found that “[a]lthough [the landlords] have shown an economic harm, that economic harm pales in comparison to the significant loss of lives that [the government] ha[s] demonstrated could occur should the Cоurt block the Order.” The landlords timely appealed.
II. Standard of Review
We review the denial of a preliminary injunction for abuse of discretion,
reviewing the district court’s findings of fact for clear error and its legal
conclusions
de novo
.
Scott v. Roberts
,
appeal. We denied their motion.
the law in an unreasonable or incorrect manner, follows improper procedures in
making a determination, or makes findings of fact that are clearly erroneous.”
Aycock v. R.J. Reynolds Tobacco Co.
,
III. Discussion
To obtain a preliminary injunction, the landlords must demonstrate: (1) “a
substantial likelihood of success on the merits”; (2) that they will suffer an
irreparable injury unless the injunction is granted; (3) that the harm from the
threatened injury outweighs the harm the injunction would cause the opposing
party; and (4) that the injunction “would not be adverse to the public interest.”
Swain v. Junior
,
A. Standing
Before turning to the merits, we must address whether the landlords have
standing to sue.
Lewis v. Governor of Ala.
,
“The irreducible constitutional minimum of Article III standing entails three
elements: injury in fact, causation, and redressability.”
Hunstein v. Preferred
Collection & Mgmt. Servs., Inc.
,
1.
Injury in Fact
Krausz has adequately alleged an injury in fact. An injury in fact “must be
concrete and particularized and actual or imminent, not conjectural or
hypothetical.”
Susan B. Anthony List v. Driehaus
,
In his declaration, Krausz alleges that he was granted a writ of ejectment to
evict his tenant. But before the eviction could take place, he alleges, his “tenant
provided the South Carolina court with a declaration consistent with the CDC’s
September 4, 2020 eviction order” and “[t]he South Carolina court then
immediately stayed the eviсtion.” As a result of the stayed eviction, he alleges that
he has “incurred significant economic damages, including approximately $2,265 in
unpaid rent and fees.” These allegations are sufficient to establish an injury in fact.
See Susan B. Anthony List
,
In addition to the economic damages he has already suffered, Krausz has
sufficiently alleged a future injury—“the lost opportunity to rent or use the
property at fair market value of at least $700 per month.” Under the terms of his
lease agreement, his tenant is required to pay $700 each month in rent. But the
tenant has filed a declaration stating, under penalty of perjury, that she is “unable
to pay rent because of economic stress arising from the COVID-19 pandemic.”
Because there is a substantial risk that Krausz will not receive the rent payments
*53
contemplated under the lease agreement, he has adequately demonstrated a future
injury.
See Muransky
,
2. Traceability and Redressability
Krausz has also adequately demonstrated that his injuries are traceable to the government’s conduct and redressable by a favorable judicial decision. The doctrines of traceability and redressability are closely linked, so I will consider them together. See 13A Charles A. Wright et al., Federal Practice and Procedure § 3531.6 (3d ed. June 2021 update) (“The remedial-benefit dimension of standing analysis blends into causation.”).
Traceability is the requirement that a plaintiff’s injury be “fairly traceable to
the challenged action of the defendant, and not the result of the independent action
of some third party not before the court.”
Lujan v. Defs. of Wildlife
,
*54
Krausz’s injuries are fairly traceable to the CDC Order. The Order states:
“[A] landlord . . . shall not evict any covered person from any residential property
in any State or U.S. territory in which there are documented cases of COVID-19
that provides a level of public-health protections below the requirements listed in
this Order.”
Redressability is the requirement that “a favorable decision would amount to
a significant increase in the likelihood that the plaintiff would obtain relief that
directly redresses the injury suffered.”
Fla. Wildlife Fed’n, Inc. v. S. Fla. Water
Mgmt. Dist.
,
In assessing redressability, “we ask whether a decision in a plaintiff’s favor would significantly increase . . . the likelihood that she would obtain relief that directly redresses the injury that she claims to have suffered.” Lewis , 944 F.3d at 1301 (alterations adopted) (quotations omitted). We have also held that “it must be *55 the effect of the court’s judgment on the defendant—not an absent third party— that redresses the plaintiff’s injury, whether directly or indirectly.” Id . (quotation omitted) (emphasis omitted).
The concurrence argues that Krausz’s injuries are not redressable because
neither his tenant nor the state court is a party in this case and neither will be bound
by an injunction issued by the district court. In its view, although “the state court
could take judicial notice of this Court’s decision and the subsequent injunction,
they do not bind that court to any particular result.”
See Glassroth v. Moore
, 335
F.3d 1282, 1302 n.6 (11th Cir. 2003) (“[S]tate courts when acting judicially . . . are
not bound to agree with or apply the decisions of federal district courts and courts
of appeal.”). But that concern does not defeat redressability here.
See Lujan
, 504
U.S. at 562 (noting that a plaintiff may still establish standing where “one or more
of the essential elements of standing depends on the unfettered choices made by
independent actors not before the courts and whose exercise of broad and
legitimate discretion the courts cannot presume either to control or to predict”
(internal citation omitted)). An “injury produced by [a defendant’s] determinative
or coercive effect upon the action of [a third party]” may still be redressable.
*56
Bennett v. Spear
,
Although the South Carolina court is not strictly bound to apply our decision
or the district court’s decisions,
see Glassroth
,
Further, it is substantially likely that the South Carolina court would abide
by our interpretation of the federal statute that the CDC invoked to issue the Order.
See Made in the USA Found. v. United States
,
* * * Because Krausz has adequately alleged an injury in fact, traceability, and redressability, he has standing to seek an injunction. I now turn to the merits of this appeal and the four factors the landlords must establish to obtain a preliminary injunction.
B. Likelihood of Success on the Merits
The district court abused its discretion in finding that the landlords failed to establish a substantial likelihood of success on the merits of their claim that the CDC Order exceeds statutory authority. Under the Administrative Procedure Act, we must “hold unlawful and set aside agency action . . . found to be . . . in excess of statutory . . . authority.” 5 U.S.C. § 706(2)(C).
The CDC Order invokes 42 U.S.C. § 264(a) as authority.
See
85 Fed. Reg.
at 55,297. Thus, I begin my analysis with the text of § 264(a).
See Whaley v.
Guillen (In re Guillen)
,
Section 264(a) provides:
The Surgeon General, with the approval of the Secretary, is authorized to make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases from foreign countries into the States or possessions, or from one State or possession into any other State or possession. For purposes of carrying out and enforcing such regulations, the Surgeon General may provide for such inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous
infection to human beings, and other measures, as in his judgment may be necessary.
42 U.S.C. § 264(a). The landlords argue that § 264(a) does not grant the Director of the CDC the authority to implement a nationwide residential eviction moratorium because the authority set out in § 264(a) is limited to “actions taken with respect to infected articles and people.” The government counters that, although § 264(a) “do[es] not confer unbounded authority . . . [it] provide[s] substantial flexibility for the CDC to act to prevent the interstate spread of disease”—including through implementing a nationwide residential eviction moratorium.
There are two provisions in § 264(a) that could be interpreted to provide authority for the CDC Order: (1) the first sentence—which grants the Director of the CDC the authority to “make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases,” and (2) the second sentence—which grants the Director of the CDC the authority to “provide for such inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human beings, and other measures, as in his judgment may be necessary.” 42 U.S.C. § 264(a). But neither of these provisions reasonably can be interpreted to authorize the CDC Order.
1. The First Sentence of § 264(a) *60 Although the first sentence of § 264(a) could be read literally to authorize the CDC Order—because it empowers the Director of the CDC to “make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases”—such a reading is not a reasonable construction of the statute because it ignores the effect of the rest of § 264. [17]
Instead, the first sentence of § 264(a) should be read in light of the other
provisions of § 264—that is, as granting the Director of the CDC general
rulemaking power, subject to the specific limitations set out immediately following
the grant.
See Ala. Ass’n of Realtors v. U.S. Dep’t of Health & Hum. Servs.
,
No. 20-cv-3377,
For example, the second sentence of § 264(a) provides that “[f]or purposes
of carrying out and enforcing such regulations, the Surgeon General may provide
for such inspection, fumigation, disinfection, sanitation, pest extermination,
destruction of animals or articles found to be so infected or contaminated as to be
sources of dangerous infection to human beings, and other measures, as in his
judgment may be necessary.” Further, § 264(d) provides that “[r]egulations
prescribed under this section may provide for the apprehension and examination of
any individual reasonably believed to be infected with a communicable disease.”
[19]
Reading the first sentence of § 264(a) broadly to authorize the Director of the CDC
to make and enforce
any
measure would make the second sentence of § 264(a) and
the entirety of § 264(d) unnecessary.
[20]
See TRW Inc. v. Andrews
,
Regulations prescribed under this section may provide for the apprehension and examination of any individual reasonably believed to be infected with a communicable disease in a qualifying stage and (A) to be moving or about to move from a State to another State; or (B) to be a probable source of infection to individuals who, while infected with such disease in a qualifying stage, will be moving from a State to another State. Such regulations may provide that if upon examination any such individual is found to be infected, he may be detained for such time and in such manner as may be reasonably necessary. The government takes the opposite position. It argues that § 264(b), (c), and (d)
indicate that the authority granted in the first sentence of § 264(a) is not limited by the second
*62
(2001) (“It is ‘a cardinal principle of statutory construction’ that ‘a statute ought,
upon the whole, to be so construed that, if it can be prevented, no clause, sentence,
or word shall be superfluous, void, or insignificant.’” (quoting
Duncan v. Walker
,
Under a literal reading of the first sentence of § 264(a), the Director of the CDC could make regulations that “provide for [the] inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human sentence of § 264(a), because those subsections discuss measures that are not authorized by the second sentence of § 264(a). See 42 U.S.C. § 264(b) (“Regulations prescribed under this section shall not provide for the apprehension, detention, or conditional release of individuals except for the purpose of preventing the introduction, transmission, or spread of . . . communicable diseases.”); id . § 264(c) (“Except as provided in subsection (d), regulations prescribed under this section, insofar as they provide for the apprehension, detention, examination, or conditional release of individuals, shall be applicable only to individuals coming into a State or possession from a foreign country or a possession.”); id . § 264(d) (“Regulations prescribed under this section may provide for the apprehension and examination of any individual reasonably believed to be infected with a communicable disease.”).
I disagree. Measures related to the “apprehension and examination of . . . individual[s]
reasonably believed to be infected with a communicable disease,”
id
. § 264(b)–(d), are
authorized by the second sentence of § 264(a) because they are measures related to articles,
animals, or people infected or reasonably believed to be infected with a communicable disease.
See
Part III.B.2,
infra
. Thus, § 264(b), (c), and (d) do not show that the authority granted in the
first sentence of § 264(a) is not limited by the enumerations in the second sentence of § 264(a).
*63
beings,”
see
42 U.S.C. § 264(a), or “provide for the apprehension and examination
of any individual reasonably believed to be infected with a communicable disease
in a qualifying stage,”
see id
. § 264(d). But this reading would render the second
sentence of § 264(a) and the entirety of § 264(d) superfluous.
See Yates v. United
States
,
Given the specific provisions in the second sentence of § 264(a), which set out specific measures that the Director of the CDC can take to prevent the spread of communicable diseases, we should decline to read the first sentence of § 264(a) as authorizing any measure that “in his judgment [is] necessary.” Instead, we should read the first sentence of § 264(a) as providing the Director of the CDC with general rulemaking authority, subject to the specific limitations set out in the second sentence of § 264(a).
2. The Second Sentence of § 264(a) The second sentence of § 264(a)—which empowers the Director of the CDC to “provide for such inspection, fumigation, disinfection, sanitation, pest extermination, destruction of animals or articles found to be so infected or *64 contaminated as to be sources of dangerous infection to human beings, and other measures, as in his judgment may be necessary”—does not provide authority for the CDC Order either. As an initial matter, the CDC Order does not provide for the “inspection, fumigation, disinfection, sanitation, pest extermination, [or] destruction of animals or articles found to be so infected or contaminated as to be sources of dangerous infection to human beings.” Thus, it can be authorized, if at all, as an “other measure[].”
But a nationwide residential eviction moratorium is not a permissible “other
measure[]” authorized under the statute.
See Tiger Lily, LLC v. U.S. Dep’t of
Hous. & Urb. Dev.
,
Applying the canons of
noscitur a sociis
and
ejusdem generis
, “other
measures” must be measures like inspection, fumigation, disinfection, sanitation,
pest extermination, or destruction of animals or articles found to be sources of
dangerous infection—that is, measures related to articles, animals, or people
infected or reasonably believed to be infected with a communicable disease.
Cf.
Tiger Lily
,
* * *
This interpretation of § 264(a) comports with other principles of statutory
interpretation. The Supreme Court has held that “the background principles of our
federal system . . . belie the notion that Congress would use . . . an obscure grant of
authority to regulate areas traditionally supervised by the States’ police power.”
Gonzales v. Oregon
,
language if it wishes to significantly alter the balance between federal and state power and the
power of the Government over private property.”
U.S. Forest Serv. v. Cowpasture River Pres.
Ass’n
,
*67
plain statement rule is nothing more than an acknowledgment that the States retain
substantial sovereign powers under our constitutional scheme, powers with which
Congress does not readily interfere.”);
United States v. Bass
,
Similarly, the major questions doctrine instructs that we should “expect
Congress to speak clearly if it wishes to assign to an agency decisions of vast
*68
economic and political significance.”
Util. Air Regul. Grp. v. EPA
,
Other courts have reached the same conclusions when addressing the scope
of the government’s authority under § 264(a). In
Tiger Lily
, the U.S. Court of
Appeals for the Sixth Circuit denied the government’s request to stay a district
court ruling that found that the CDC Order exceeds the statutory authority of
§ 264(a).
The U.S. District Court for the District of Columbia subsequently stayed its
own ruling,
see Ala. Ass’n of Realtors v. U.S. Dep’t of Health & Hum. Servs.
,
No. 20-cv-3377,
According to the D.C. Circuit, we should ignore the plain text of the second
sentence of § 264(a)—and its limiting function—because “Congress in 1944 had
reason to believe [that the measures in the second sentence of § 264(a)] required
express congressional authorization under the Fourth Amendment.”
Id
. (citing
Okla. Press Publ’g Co. v. Walling
,
But this argument proves too much. Even if we recognized such an unexрressed, unenacted legislative intent—and agreed that it could override the plain text of § 264(a)—the D.C. Circuit’s reasoning suffers from a fatal flaw. If a clear statement is necessary in the second sentence of § 264(a) for us to conclude that Congress intended to authorize an agency to interfere with property rights— *71 such as a nationwide residential eviction moratorium —that rule applies to the first sentence of § 264(a) as much as it applies to the second sentence. Thus, even applying the Oklahoma Press Publishing clear statement rule to § 264(a), the statute still does not authorize the CDC Order because it does not contain a clear statement authorizing the Director of the CDC to issue a nationwide residential eviction moratorium.
The Supreme Court recently declined to vacate the stay.
See Ala. Ass’n of
Realtors v. Dep’t of Health & Hum. Servs.
, No. 20A169,
3. Ratification
The government alternatively argues that the CDC Order was statutorily
authorized because Congress ratified it in the Consolidated Appropriations Act of
2021 (the “Act”). It is well-settled that “Congress . . . ha[s] [the] power to ratify
the acts which it might have authorized.”
United States v. Heinszen
,
The Act states:
The order issued by the Centers for Disease Control and Prevention
under section 361 of the Public Health Services Act (42 U.S.C. 264),
entitled ‘Temporary Halt in Residential Evictions To Prevent the
Further Spread of COVID-19’ . . . is extended through January 31,
2021, notwithstanding the effective dates specified in such order.
Further, even if Congress ratified the CDC Order, it only did so through
January 31, 2021, and the purported ratification cannot be the source of authority
for the CDC’s subsequent extensions of the Order.
See
* * *
Because neither sentence of § 264(a) authorizes the CDC Order and Congress did not ratify it, the landlords have demonstrated a substantial likelihood of success on the merits of their claim that the Order exceeds statutory authority. See 5 U.S.C. § 706(2)(C) (stating that we must “hold unlawful and set aside agency action . . . found to be . . . in excess of statutory . . . authority.”).
C. Irreparable Injury
The district court also abused its discretion in finding that the landlords failed to establish that they will suffer an irreparable injury unless an injunction is *74 granted. The landlords argue that they face irreparable injury because they “cannot recover any of the economic damages they continue to incur because tenants covered by the CDC Order, by definition, are insolvent—and thus judgment- proof.”
In his affidavit, Krausz stated that:
[his] tenant provided the South Carolina court with a declaration consistent with the CDC’s September 4, 2020 eviction order, declaring that the tenant was unable to pay rent because of economic stress arising from the COVID-19 pandemic, had used best efforts to obtain available government assistance and was using best efforts to make timely partial payments that are as close to the full payment as possible, had no other home to go to, and was making less than $99,000 annually.
And at the evidentiary hearing, the landlords argued that the combination of the
conditions of the CDC Order and “the fact that these individual tenants are all
paying nothing . . . [amounts to] a declaration under oath that the best efforts that
they can make because of their financial circumstances is zero payment.”
Further, the landlords argue that they are continuing to accrue losses while
the CDC Order is in place. For example, the terms of Krausz’s lease agreement
require his tenant to pay $700 in monthly rent. Absent the CDC Order, he would
have a legal right to evict that tenant and “rent or use the property at a fair market
value of at least $700 per month.” Thus, the landlords seek not just to remedy past
harms, but also to “staunch the flow of ongoing
future
losses.”
See Askins &
Miller
,
1. Legal Principles
To obtain a preliminary injunction, the landlords must demonstrate that they
face an irreparable injury. An injury is irreparable if the plaintiff does not have an
adequate remedy at law.
See Askins & Miller
,
“[T]he collectability of a future money judgment to redress future harms is
relevant in determining whether legal remedies are ‘adequate.’”
Askins & Miller
,
Although there may be “distinctions between insolvency in the sense of
inability to pay debts as they mature, insolvency in the sense of excess of total
liabilities over total assets and insolvency in the sense of an utter lack of leviable
assets . . . [t]hese variations indicate the range of doubtful collectability” and
“[d]oubt as to the probable effectiveness of the damage remedy weighs against the
relative adequacy of the remedy.” Restatement (Second) of Torts § 944 cmt. i
(Am. L. Inst. 1979).
Id
. “To the extent that the damages awarded cannot be
realized upon execution, the damage remedy is proportionately inadequate.”
Id
.
The landlords had the burden to “clearly establish[]” that they would suffer
an irreparable injury unless an injunction was granted.
Siegel v. LePore
, 234 F.3d
1163, 1176 (11th Cir. 2000) (quotation omitted). Because the landlords’ theory of
Tri-State Generation & Transmission Ass’n, Inc. v. Shoshone River Power, Inc.
,
of assets; having stopped paying debts in the ordinary course of business or being unable to pay
them as they fall due.”
Insolvent
, Black’s Law Dictionary (11th ed. 2019). Like the district
court, I acknowledge that there may be some play in the joints between this definition of
insolvency and the concept of insolvency for the purposes of demonstrating irreparable injury.
For purposes of this discussion, I use “insolvent” or “insolvency” to refer to a “likelihood that
[the tenant] will never pay.”
Askins & Miller
,
*78 irreparable injury is based on their tenants’ insolvency and the inadequacy of a future award of money damages, the landlords had the burden to clearly establish a “likelihood that [the tenants] will never pay.” See Askins & Miller , 924 F.3d at 1359.
2. The Tenants’ Insolvency
The conditions of the CDC Order—to which the tenants swore under penalty
of perjury—satisfy the landlords’ burden to clearly establish a likelihood that their
tenants will never pay.
See
*79 substantial loss of household income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses.” Id . (footnote omitted). Fourth, the tenant must be “using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses.” Id . And fifth, eviction must “likely render the individual homeless—or force the individual to move into and live . . . in a new congregate or shared living setting—because the individual has no other available housing options.” Id .
The landlords persuasively argue that the combination of these conditions— along with the fact that their tenants had paid nothing towards their monthly rent— demonstrates that their tenants are insolvent and that a future money judgment will not be collectable. Although the majority finds this evidence to be inadequate, I disagree, and believe that the third, fourth, and fifth conditions of the CDC Order particularly support this conclusion.
The third condition requires the tenant to be “unable to pay the full rent or make a full housing payment due to a substantial loss of housing income, loss of compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket medical expenses.” Swearing to this condition means that the tenant is insolvent under traditional definitions of insolvency—they are unable to pay debts as they come due. See Insolvent , Black’s Law Dictionary (11th ed. 2019).
*80 The fourth condition requires the tenant to be “using best efforts to make timely partial payments that are as close to the full payment as the individual’s circumstances may permit, taking into account other nondiscretionary expenses.” Here, the tenants have paid nothing. Because the tenants are required to use best efforts to make timely partial payments and have paid nothing, swearing to this condition means that the tenants have no available money, no discretionary expenses that can be cut back on, no illiquid assets that can be sold, and no ability to get a loan to cover rental expenses.
*81 The fifth condition requires the tenant to declare that eviction would “likely render [them] homeless—or force [them] to move into and live in a new congregate or shared living setting—because [they have] no other available housing options.” By swearing to this condition, the tenant is stating that they have insufficient means to pay rent for the cheapest “available, unoccupied residential property” that meets occupancy standards.
Thus, the combination of the third, fourth, and fifth conditions of the CDC
Order means that Krausz’s tenant is unable to pay debts as they come due; has no
available money, no discretionary expenses that can be cut back on, no illiquid
assets that can be sold, and no ability to get a loan to cover rental expenses; and
cannot afford to move to the cheapest available residential property that meets
occupancy standards. These allegations are sufficient for Krausz to establish that
his tenant is insolvent and that there is a likelihood that he will not be able to
collect on a future money judgment.
See Askins & Miller
,
This case is distinguishable on both counts. First, unlike Doe’s vague
statement in
Town of Burlington
, the tenants here have sworn, under penalty of
perjury, to facts that amount to insolvency. Second, unlike Doe, who was
*83
“employed by the federal government as a professional in a supervisory position,”
id
., the tenants here have suffered a “substantial loss of household income, loss of
compensable hours of work or wages, a lay-off, or extraordinary out-of-pocket
medical expenses” and are “unable to pay [their] full rent or make a full housing
payment.” CDC Order,
The concurrence speculates about a tenant who “has a job that would allow for garnished wages in the event that a judgment is entered against her” but is “paying only 80% of her rent because she started a new, lower-paying job during the pandemic.” According to the concurrence, the landlords have failed to carry their burden to demonstrate irreparable injury because this hypothetical tenant may “not [be] necessarily ‘insolvent.’”
But the concurrence’s hypothetical tenant is not a tenant in this case and we must focus on whether Krausz has demonstrated that his tenant is insolvent. Unlike the concurrence’s hypothetical tenant, Krausz’s tenant is not “paying . . . 80% of her rent.” She is paying nothing. And although a tenant who is “paying only 80% of her rent” may not be insolvent, a tenant who is paying 0% of her rent, despite an obligation to use “best efforts to make timely partial payments,” likely is insolvent.
*84
Further, Krausz’s rental property is in South Carolina and garnishment
against his tenant is not an available remedy under South Carolina law.
See
S.C.
Code Ann. § 37-5-104 (“With respect to a debt arising from a consumer credit sale,
a consumer lease, a consumer loan, or a consumer rental-purchase agreement,
regardless of where made, the creditor may not attach unpaid earnings of the
debtor by garnishment or like proceedings.”);
see also In re Jordan
,
The majority concedes that garnishment is not available to Krausz as a remedy. But it speculates that Krausz could impose a levy on his tenant’s cash or other liquid assets, or on her real estate or nonexempt personal property. Beyond the fact that South Carolina law imposes substantial exemptions from attachment, *85 levy, and sale, see S.C. Code Ann. § 15-41-30(A)(1) (fifty-thousand-dollar exemption in real property); id . § 15-41-30(A)(2) (five-thousand-dollar exemption in a motor vehicle); id . § 15-41-30(A)(3) (four-thousand-dollar exemption in certain personal property); id . § 15-41-30(A)(4) (one-thousand-dollar exemption in jewelry); id . § 15-41-30(A)(5) (five-thousand-dollar exemption in liquid assets); id . § 15-41-30(A)(6) (one-thousand-five-hundred-dollar exemption for tools of the trade), the possibility that Krausz’s tenant has cash or other liquid assets, or real estate or nonexempt personal property, in excess of these exemptions is foreclosed by the statements she made in her declaration.
The majority takes the position that a tenant “could attest to being unable to make timely payments despite best efforts without first pawning her wedding ring [and] . . . selling her car.” But I do not believe that a tenant could swear to the conditions of the CDC Order while sitting on thousands of dollars of equity in jewelry and vehicles in excess of these exemptions.
In a similar vein, the district court faulted the landlords because they did “not present[] any evidence regarding collection measures that they have taken to ensure that the rent is paid or whether a legal tool, such as a levy or garnishment, would be unsuccessful in the event a judgment is entered at a later time”—or that their tenants “would unlawfully divert funds to avoid the payment of a judgment.” It relied heavily on our opinion in Askins & Miller to conclude that the landlords *86 were required to present such evidence to demonstrate that they faced an irreparable injury.
In
Askins & Miller
, we reversed the district court’s denial of the Internal
Revenue Service’s motion for a preliminary injunction against a company that was
delinquent on employment taxes.
Although the district court noted that the landlords here are similarly positionеd to the IRS in Askins & Miller —because they sought “injunctive relief to protect against future losses (the non-payment of rent during the time the Order is in place)—it found that the landlords failed to “present[] any evidence regarding collection measures that they have taken to ensure that the rent is paid or whether a legal tool, such as a levy or garnishment, would be unsuccessful in the event a judgment is entered at a later time.” It also put great weight on its finding that the landlords “presented no evidence that their tenants, like the defendants in Askins & Miller , would unlawfully divert funds to avoid the payment of a judgment.” The concurrence also relies heavily on the fact that the landlords “have presented no evidence that writs of execution, garnishment, or other methods of *88 executing on a judgment would be unsuccessful; . . . no evidence of their efforts to collect unpaid rent; and no evidence that the tenants failed to pay rent prior to the pandemic.” Although we relied on these factors in Askins & Miller to determine that the IRS had demonstrated irreparable injury for purposes of a preliminary injunction, we did not hold that a plaintiff must demonstrate prior collection efforts to obtain such relief. Instead, we discussed the IRS’s prior collection attempts because they supported the IRS’s argument that it would not be able to collect a future judgment. Beyond the fact that the IRS has more time, resources, and legal authorities to compel a debtor to pay their obligations than a private landlord does, Askins & Miller does not set a floor for demonstrating irreparable injury. Instead, it holds that we must ask whether the plaintiff has demonstrated a “likelihood that a defendant will never pay.” Id . at 1359. Because the landlords here made such a showing, Askins & Miller does not undermine their claims of irreparable injury.
The district court also faulted the landlords for not introducing evidence about:
the occupation of any of the tenants, whether they are employed or unemployed (and, if unemployed, their prospect for reemployment), whether they are (or have been) sick, whether they have money in the bank, whether they qualify for some type of government assistance, whether they could obtain a loan to cover their rent or the nature of their credit histories.
The concurrence similarly faults the landlords because, in its view, they presented “no evidence of their tenants’ employment prospects . . . [and] no evidence of their tenants’ assets.” But this criticism is misplaced for three reasons.
First
, the tenants’ declarations already answer several of these questions.
The district court criticized the landlords for not producing evidence of whether the
tenants “have money in the bank, whether they qualify for some government
assistance, [or] whether they could obtain a loan to cover their rent or the nature of
their credit histories.” But the first condition of the CDC Order—that the tenant
already had “used best efforts to оbtain all available government assistance for rent
or housing”—answers the district court’s question of whether the tenants could
avail themselves of government assistance.
See
Second
, our precedent does not require the landlords to provide evidence of
these matters. Instead, we have emphasized “the practical nature of the equitable
inquiry” and have framed the inquiry as whether the plaintiffs have demonstrated
“a likelihood that a defendant will never pay.”
Askins & Miller
,
Third
, speculation about the tenants’ future job prospects does not defeat the
landlords’ showing of a likelihood that they will not be able to collect a future
judgment. Based on the conditions of the CDC Order, we know that the tenants
are unable to pay debts as they come due; have no available money, no
discretionary expenses that can be cut back on, no illiquid assets that can be sold,
and no ability to get a loan to cover rental expenses; and cannot afford to move to
the cheapest available residential property that meets occupancy standards. The
tenants are insolvent and “most courts”—including this Court—“sensibly conclude
*91
that a damage judgment against an insolvent defendant is an inadequate remedy.”
Askins & Miller
,
The district court’s and the concurrence’s speculation about the tenants’
future job prospects is just that—speculation. They would have us play hiring
manager and guess whether the tenants are likely to receive job offers, promotions,
raises, or additional shifts based on their occupation or current employment status.
“But future employment. . . [and] future health . . . [are] matters of estimate and
prediction.”
Norfolk & W. Ry. Co. v. Liepelt
,
In other contexts, we regularly “reject as overly speculative those links
which are predictions of future events (especially future actions to be taken by
third parties).”
United Transp. Union v. I.C.C.
,
Further, the landlords do not ask us to speculate. They have come to court with rather remarkable declarations from their tenants where the tenants swear to facts that amount to insolvency. As in Askins & Miller , “[t]he fact that the [landlords are] attempting to avoid future losses is key.” Id . We cannot demand that the landlords continue to incur further debts from insolvent tenants based on even the most well-reasoned speculation about the tenants’ future job prospects.
Finally, the government argues that the collectability of a future money
judgment is “undermined by Congress’s recent appropriation of billions of dollars
of rental assistance” to landlords and tenants. In December 2020, Congress
appropriated $25 billion in emergency rental assistance.
See
First , the government has provided no argument or evidence that the landlords are entitled to receive these funds—it has just pointed to the funds’ existence. At the evidentiary hearing, the government stated that it “couldn’t speak to” the issue of whether the landlords were entitled to receive government funds. Thus, at this point, it is speculative whether the landlords are entitled to these funds and whether the funds will remedy their injuries.
Second
, the government has not demonstrated that the funds are adequate to
remedy the landlords’ injuries. By its own terms, the CDC Order affects as many
as “30-40 million” renters.
Accordingly, Congress’s appropriation of rental assistance funds does not defeat the landlords’ showing of a likelihood that a future money judgment will be uncollectable.
* * *
Because the landlords have demonstrated that their tenants are insolvent and
that a future money judgment is not likely to be collectable, the landlords have
demonstrated that they face an irreparable injury absent an injunction.
See Askins
& Miller
,
D. Balance of the Harms and Public Interest
Finally, the district court abused its discretion in finding that the balance of the harms and the public interest favor maintaining the CDC Order. The district court found that the landlords’ economic harms were outweighed by the potential loss of lives that the government has argued could occur if the Order is found to be unlawful. But in doing so, the district court failed to balance the harms and assess the public interest correctly.
“[A]s a general rule, American courts of equity did not provide relief beyond
the parties to the case.”
Trump v. Hawaii
,
In addition to weighing the landlords’ economic harms against “the significant loss of lives that . . . could occur should the Court block the Order,” the district court also should have weighed the landlords’ harms against the consequences that could occur if the government was unable to enforce the CDC Order against these specific landlords. The government has not demonstrated that allowing a handful of evictions to go forward would cause any loss of life, let *96 alone the massive loss of life it has claimed could happen if the Order is invalidated nationwide.
Further, “[t]here is generally no public interest in the perpetuation of
unlawful agency action.”
League of Women Voters of U.S. v. Newby
,
The district court’s contrary finding was premised, in part, on its earlier
conclusions that the landlords had failed to show a substantial likelihood of success
on the merits or irreparable injuries. Although “[a]n injunction . . . does not follow
*97
from success on the merits as a matter of course,”
Winter v. Nat. Res. Def. Council,
Inc.
,
IV. Conclusion
The district court abused its discretion in denying the landlords’ motion for a preliminary injunction because the landlords established a substantial likelihood of success on the merits, that they will suffer irreparable injury absent an injunction, and that the balance of the equities and the public interest favor an injunction. Because the majority reaches the opposite conclusion, I respectfully dissent.
Notes
[1] The statute grants regulatory authority to the Surgeon General, but these powers were transferred to what is now the Secretary of Health and Human Services. See Reorganization Plan No. 3 of 1966, 31 Fed. Reg. 8855 (June 25, 1966); 20 U.S.C. § 3508(b). The Secretary, in turn, conferred authority on the Director of the CDC. See 42 C.F.R. § 70.2.
[2] Though parties often fail to appreciate this fact in the flush of litigation, the more efficient path
to mitigating their harm is often to move forward with the merits of the litigation rather than
appeal the denial of a preliminary injunction.
Lambert
,
[3] Contrary to the district court’s assertion, one plaintiff stated that he would be “at risk of foreclosure” if the eviction moratorium continued. But because his tenant has since vacated the property, that plaintiff’s harms are no longer a live issue in the case.
[4] One unbriefed issue that would further complicate this inquiry is whether and to what extent the landlords voluntarily gave up the right to access their properties in their lease agreements, and the extent to which nonpayment affects or does not affect that aspect of the agreements under state law.
[5] The measures cited in Askins & Miller are not a checklist for every plaintiff who seeks to show irreparable injury from economic harm. Appropriate evidence will always depend on the context of a given case.
[4] The Summons includes, among other things, information about the property at issue and the amount of unpaid rent the tenant allegedly owes. See Virginia’s Judicial System, “Summons
[5] At that point, the eviction proceeding falls into the hands of the local sheriff. See Va. Code § 8.01-129(b). After the writ of eviction has issued, execution on the writ “should occur within 15 calendar days from the date the writ of eviction is received by the sheriff, or as soon as practicable thereafter, but in no event later than 30 days from the date the writ of eviction is issued.” Va. Code § 8.01-470. The sheriff must also give the tenant notice to vacate at least 72 hours before the execution of the writ. Id. Once the sheriff executes the writ and evicts the tenant, Brown would be free to reрossess his property.
[6] Plaintiffs’ amended complaint actually includes eight counts—one claim under an access to courts theory; two claims under the Administrative Procedure Act; one under the Supremacy Clause; one under the Tenth Amendment; one under the Supremacy Clause and the Tenth Amendment; one under Article I, § 1 of the Constitution; and one claim alleging an “unlawful suspension of law.”
[7] Brown states that he sought to have the local Sheriff’s Office serve a five-day termination notice on his tenant but was told by the Sheriff that the Sheriff’s Office would no longer issue and serve termination notices in compliance with a then-existing administrative order by the Supreme Court of Virginia. This is irrelevant, as it appears that Brown himself— rather than the Sheriff—could have served his tenant with the five-day termination notice. Indeed, Virginia law states that the Sheriff “may,” but is not obligated to, serve such notices. See Va. Code § 55.1-1247. But even if Brown could not serve the termination notice on the tenant himself, and even if the Sheriff was required to serve the notice but refused, Brown could seek a writ of mandamus compelling the Sheriff to serve the notice. See, e.g. , Armstrong v. Martin Marietta Corp. , 138 F.3d 1374, 1385 (11th Cir. 1998) (en banc) (recognizing that the writ of mandamus is an appropriate remedy to correct the failure to carry out a ministerial task).
[8] The dissent construes this point as an issue of standing—specifically, as an issue of
redressability. But my concern is whether the plaintiffs have suffered an irreparable harm—or
whether they have an adequate remedy at law,
see
infra n.9—not whether they have standing.
An injunction should only issue if the district court finds “that certain, immediate, and
irreparable injury to a substantial interest of the movant will occur if the application [for the
injunction] is denied and the final decree is in his favor.”
Calagaz v. DeFries
,
[9] In many cases, we analyze whether a movant has suffered an “irreparable harm” and
whether the movant lacks an “adequate legal remedy” together.
See, e.g.
,
Marine Transp. Lines,
Inc. v. Int’l Org. of Masters, Mates & Pilots
,
[10] Now, one may respond that a state court’s order would not prevent the federal
government from prosecuting the plaintiffs for violation of the CDC’s Order. But I find that
improbable. First, if a state court has decided that the CDC’s Order is unconstitutional and
permits one of the landlords to evict their tenant, it would be a remarkable overstep—and
antagonistic to basic principles of federalism—for the Department of Justice to then prosecute
the plaintiff for violating the Order. Second, even if the Department of Justice did choose to prosecute, the evicting landlord would have a strong defense that they were acting in reliance on
an official pronouncement of the law by the state court.
See United States v. Laub
,
[12] The dissent frames my concern as one grounded in speculation—that I would have this Court “play hiring manager and guess whether the tenants are likely to receive job offers, promotions, raises, or additional shifts based on their occupation or current employment status.” That is not my point at all. Rather, my core concern is that plaintiffs’ evidence starts and ends with their tenants’ declarations. And the dissent reads those declarations as swearing “to facts that amount to insolvency.” I do not believe that’s quite right. It is entirely possible that a tenant simultaneously has a job that would allow for garnished wages in the event that a judgment is entered against her and (1) has used best efforts to obtain all available government assistance for rent, (2) expects to earn no more than $99,000 in annual income for 2020, (3) is unable to pay full rent due to substantial loss of household income, (4) is using best efforts to make partial payments, and (5) would need to move into a new residence shared by other people who live in close quarters if evicted. For example, a tenant that is paying only 80% of her rent because she started a new, lower-paying job during the pandemic may be subject to eviction once the Order has expired, but she is not necessarily “insolvent.” So, since it is the plaintiffs’ burden of persuasion on irreparable harm, I believe they need to provide more than just their tenants’ declarations to establish that the tenants are judgment proof.
[13] In
Bonner v. City of Prichard
,
[1] This rulemaking authority has been delegated to the Director of the U.S. Centers for Disease Control and Prevention. See Reorganization Plan No. 3 of 1966, 31 Fed. Reg. 8855 (June 25, 1966); 42 C.F.R. § 70.2.
[2] The landlords sued the U.S. Department of Health and Human Services (“HHS”), the CDC, the Secretary of HHS, and the Acting Chief of Staff of the CDC. For convenience, I refer to these entities collectively as the “government.”
[3] The CDC Order defines “eviction” as “any action by a landlord, owner of a residential
property, or other person with a legal right to pursue eviction or a possessory action, to remove
or cause the removal of a covered person from a residential property. This does not include
foreclosure on a home mortgage.”
[4] “‘Available government assistance’ means any governmental rental or housing payment benefits available to the individual or any household member.” CDC Order, 85 Fed. Reg. at 55,293.
[5] The CDC Order defines “available housing” as “any available, unoccupied residential
property, or other space for occupancy in any seasonal or temporary housing, that would not
violate Federal, State, or local occupancy standards and that would not result in an overall
increase of housing cost to such individual.”
[6] “At the preliminary injunction stage, a district court may rely on affidavits and hearsay
materials which would not be admissible evidence for a permanent injunction, if the evidence is
appropriate given the character and objectives of the injunctive proceeding.”
Levi Strauss & Co.
v. Sunrise Int’l Trading Inc.
,
[7] Krausz filed his declaration on September 17, 2020. Under the lease agreement with his tenant, his tenant owes $700 each month in rent.
[8] Although the South Carolina court stayed the eviction in purported compliance with the
CDC Order, nothing in the Order itself dictates that course of action. Instead, the CDC Order
regulates the behavior of “a landlord, owner of a residential property, or other person with a legal
right to pursue eviction or possessory action.”
[9] The landlords asserted two additional theories on the merits—that the CDC Order is arbitrary and capricious and that it violates their right of access to the courts—and two additional theories of irreparable injury—the violation of their constitutional rights and the loss of unique real property. Because the landlords demonstrated a substantial likelihood of success on their argument that the CDC Order exceeds the statutory authorization of § 264(a), see Part III.B, infra , and that Krausz’s financial harms qualify as an irreparable injury, see Part III.C, infra , I do not address their alternative theories on the merits or of irreparable injury.
[10] The district court also inquired whether the landlords had made use of funds pursuant to the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Pub. L. No. 116-136, 134 Stat. 281 (2020). The landlords responded “with confidence . . . that the forenamed plaintiffs . . . have [not] received any sort of governmental assistance . . . that offsets what’s happening to them.” The district court then asked the government whether “these landlords . . . [were] eligible for any CARES Act funds.” The government responded that it did not know.
[11] The district court also rejected the landlords’ alternative theory of irreparable injury predicated on the loss of unique real property. It found that “[t]here is no evidence before the Court that any of the individual plaintiffs reside in the properties or are in danger of losing those properties,” and that the landlords had failed to demonstrate any unique factors related to their properties because the properties were merely “rental property.” This finding was clearly erroneous.
[13] Because I do not address the other landlords’ standing, I do not consider their individual claims in determining whether the landlords have demonstrated the prerequisites for a preliminary injunction. In determining whether the landlords have demonstrated a substantial likelihood of success on the merits, irreparable injury, and that the balance of the harms and public interest favor an injunction, I will focus exclusively on Krausz’s claims. See Part III.B, C, and D, infra .
[14] The concurrence disclaims any reliance on the doctrine of redressability and insists that its concern is “irreparable harm, not standing,” because the issuance of a preliminary injunction here would “do[] nothing” for the landlords. But if a preliminary injunction would not redress the landlords’ injuries, the landlords would lack standing to seek a preliminary injunction.
[15] While the majority “ha[s] doubts about the district court’s ruling . . . [that] the plaintiffs [did not establish that they] are likely to succeed on the merits,” it reaches no conclusion about whether the landlords have established a likelihood of success on the merits. Therefore, I must conduct an independent analysis of whether the landlords have established a likelihood of success on the merits.
[16] The CDC Order also invokes 42 C.F.R. § 70.2 as authority.
[17]
See Bostock v. Clayton Cnty.
,
[18] Agencies, like the CDC, “are bound, not only by the ultimate purposes Congress has selected, but by the means it has deemed appropriate, and prescribed, for the pursuit of those
[21]
But see Marx
,
[22] The district court cited
Independent Turtle Farmers
in support of its conclusion that the
CDC Order is an “other measure” authorized by the statute. In
Independent Turtle Farmers
, the
U.S. District Court for the Western District of Louisiana concluded that the second sentence of
§ 264(a) “does not act as a limitation upon the types of regulations that may be enacted under
[the first sentence of § 264(a)].”
[25] “[I]n the absence of such clarity of intent, Congress cannot be deemed to have
significantly changed the federal-state balance.”
Fla. E. Coast Ry. Co. v. City of W. Palm Beach
,
[26] “[T]he Supreme Court has repeatedly rejected agency attempts to take major regulatory
action without
clear
congressional authorization.”
U.S. Telecom Ass’n v. FCC
,
[27]
Cf. United States v. James Daniel Good Real Prop.
,
[28] See 4 John N. Pomeroy, A Treatise on Equity Jurisprudence, § 1338, p. 936 (5th ed. 1941) (“The incompleteness and inadequacy of the legal remedy is the criterion which, under the settled doctrine, determines the right to the equitable remedy of injunction.”).
[29] See 5 John N. Pomeroy, A Treatise on Equity Jurisprudence, § 1911, p. 4340 (4th ed. 1919) (“The number of cases in which the question has arisen whether insolvency alone is enough to support an injunction is not so large, but is sufficient to show the general recognition by the courts of the glaring insufficiency of a judgment for damages against an insolvent.”); 1 Dan B. Dobbs, Law of Remedies § 2.5(2), pp. 130–31 (1993) (noting that “[t]he legal remedy is usually inadequate” where money damages are “available but not collectible”); see also 11A Charles A. Wright et al., Federal Practice and Procedure § 2948.1 (3d ed. Apr. 2021 update) (“[E]xtraordinary circumstances, such as a risk that the defendant will become insolvent before a judgment can be collected, may give rise to the irreparable harm necessary for a preliminary injunction.” (footnotes omitted)); Douglas Laycock, The Death of the Irreparable Injury Rule , 103 Harv. L. Rev. 687, 717 (1990) (“There is no reason for a court to stand aside while an insolvent inflicts harm for which he can never pay.”); cf . 71 Am. Jur. 2d Specific Performance § 13 (1973) (“[E]ven if the defendant has a considerable amount of property, specific performance may be decreed if his or her solvency is problematical and doubtful.”).
[30]
See Brenntag Int’l Chems., Inc. v. Bank of India
,
[33] The majority objects to this reading of the CDC Order and insists that “best efforts”
should be read to mean “best
reasonable
efforts”—that is, we should insert a word into the Order
so that it comports better with what the government may have intended to say. This objection is
misplaced for two reasons. First, such a reading would render the exception for “other
nondiscretionary expenses” superfluous, because “best
reasonable
efforts” would necessarily
account for the tenant’s nondiscretionary expenses. Second, equity has a “general aversion to
rules that let bad actors”—such as a government agency that issued an order exceeding statutory
authorization—“capitalize on legal technicalities.”
Askins & Miller
,
[34] The majority expresses doubt that the tenants could find alternative housing options because landlords might not “offer to lease their property to a tenant who is suffering from, for example, a substantial loss of household income.” But the tenants have sworn that they have insufficient means to pay rent for the cheapest “available, unoccupied residential property” that meets occupancy standards. That property could be a mobile home, an extended-stay motel, or a studio apartment in the most run-down part of town. “Common sense,” as the majority puts it, tells us that there are landlords who are willing to rent their properties for cash up front, without performing employment verifications or credit checks. And the tenants’ declarations that they cannot even afford rent for these concededly undesirable housing options places an upper limit on the amount of assets that they could have.
[35] In general, the record on appeal is limited to the record before the district court.
See
Fed. R. App. P. 10(a).
See Selman v. Cobb Cnty. Sch. Dist.
,
[36] The landlords may have incurred further damages during the pendency of this litigation. For example, Krausz filed his declaration on September 17, 2020—approximately two weeks after the CDC Order was issued—and stated that his tenant owed “a monthly rent of $700.” If his tenant has not made any payments during this litigation, Krausz could have accrued more than $5,600 (eight months) in damages in unpaid rent alone. This amount of per-renter damages would dwarf the amount of funds that Congress has appropriated. Facts about the landlords’ continued accrual of damages are not part of the record in this appeal. This discussion merely demonstrates why the government cannot simply point to Congress’s recent appropriations of rental assistance funds to defeat the landlords’ showing of a likelihood that a future money judgment would be uncollectable.
[37] The scope and existence of the CDC’s lawful authority under § 264(a) bears on the balance of the harms because the CDC has the power to enact substitute measures to address the threat of COVID-19. See 42 C.F.R. § 70.2; see also 42 U.S.C. § 264(a), (d).
