Skyworks, Ltd. v. Ctrs. for Disease Control & Prevention, Case No. 5:20-cv-2407

• Court: United States District Courts. 6th Circuit. United States District Court of Northern District of Ohio
• Writing for the Court: J. Philip Calabrese, United States District Judge
• Citation: 524 F.Supp.3d 745
• Parties: SKYWORKS, LTD., et al., Plaintiffs, v. CENTERS FOR DISEASE CONTROL AND PREVENTION, et al., Defendants.
• Docket Number: Case No. 5:20-cv-2407
• Decision Date: 10 March 2021

524 F.Supp.3d 745

SKYWORKS, LTD., et al., Plaintiffs,
v.
CENTERS FOR DISEASE CONTROL AND PREVENTION, et al., Defendants.

Case No. 5:20-cv-2407

United States District Court, N.D. Ohio, Eastern Division.

Signed March 10, 2021

524 F.Supp.3d 747

Ethan W. Blevins, Pro Hac Vice, Hannah S. Marcley, Pro Hac Vice, Luke A. Wake, Pro Hac Vice, Pacific Legal Foundation, Sacramento, CA, Maurice A. Thompson, Columbus, OH, Steven M. Simpson, Pacific Legal Foundation, Arlington, VA, for Plaintiff Skyworks, Ltd.

Ethan W. Blevins, Pro Hac Vice, Hannah S. Marcley, Pro Hac Vice, Luke A. Wake, Pacific Legal Foundation, Sacramento, CA, Maurice A. Thompson, Columbus, OH, Steven M. Simpson, Pacific Legal Foundation, Arlington, VA, for Plaintiffs Cedarwood Village Apartments I & II Owner B, LLC, Monarch Investment and Management Group, Toledo Properties Owner B, LLC, National Association of Homebuilders.

Leslie Cooper Vigen, Steven A. Myers, U.S. Department of Justice, Washington, DC, for Defendants.

OPINION AND ORDER

J. Philip Calabrese, United States District Judge

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In the early days of the coronavirus pandemic, Congress swiftly enacted a nationwide moratorium on evictions. That congressional action expired on July 24, 2020. About two weeks later, President Trump directed his administration to consider whether such a measure should be part of efforts to combat the spread of Covid-19 moving forward. In response, the Centers for Disease Control and Prevention, commonly known as the CDC, ordered a moratorium on some, but not all, evictions. That moratorium differs somewhat from the one Congress enacted and is set to expire on March 31, 2021.

Plaintiffs, a collection of landlords, property managers, and a trade association representing similar persons, bring various challenges to the authority of the CDC to issue the moratorium and seek to enjoin its enforcement. Plaintiffs’ challenges and CDC's response implicate any number of competing public interests—from public health and welfare during a pandemic to disruption of property rights and the efficient operation of the nation's housing and rental markets, from providing economic relief to tenants struggling as so many are with the economic fallout resulting from the policy responses to the pandemic to the proper role of the national and State governments in our federal system. None of these interests compel a particular result in this case. That is, one may view the CDC's eviction moratorium as good and essential public policy or the opposite. But those considerations are not for the Court. Nor may the Court decide this case based on its own personal or policy preferences or its views of the competing public interests involved.

Instead, this dispute presents a narrower question. This case turns on whether Congress has authorized the CDC to adopt a nationwide eviction moratorium. That narrower issue depends on interpretation of the particular statutes at issue—a more lawyerly and arcane task about which reasonable people may ultimately disagree. It also requires more careful and thoughtful analysis than what typically drives headlines and broad public comment, particularly on social media, in cases of this sort.

STATEMENT OF FACTS

As Americans have come to know over the past year, the novel SARS-CoV-2 virus, first detected in China, has the potential to cause a severe respiratory disease known as Covid-19, which manifests with a variety of symptoms, including cough, fatigue, muscle or body aches, loss of taste or smell, and difficulty breathing, among others. See generally Declaring a National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak, Proclamation 9994, 85 Fed. Reg. 15,337, 15,337 (Mar. 13, 2020) ; Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 85 Fed. Reg. 55,292, 55,292 (Sept. 4, 2020). Persons infected

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with Covid-19 may require hospitalization, intensive care, or the use of a ventilator. 85 Fed. Reg. at 55,292. Though the medical community continues to develop new treatments and therapies, severe cases of Covid-19 may prove fatal. Id. Certain populations, including those with co-morbidities such as obesity, serious heart conditions, or diabetes have an increased risk for severe illness if infected. Id.

The virus spreads easily by airborne transmission. Id. Prolonged, close contact (within approximately six feet) creates conditions for easy transmission through droplets produced when a carrier talks, coughs, or sneezes. Id. Those who do not manifest symptoms but are infected can spread the disease. Id.

A. The CARES Act Statutory Moratorium

On March 13, 2020, President Trump declared Covid-19 a national emergency. 85 Fed. Reg. at 15337–38. Since then, the nation has undertaken extensive and unprecedented steps to manage the spread of the disease and address the economic fallout. Of relevance here, Congress passed and President Trump signed the Coronavirus Aid, Relief, and Economic Security Act, Pub. L. 116-134 (Mar. 27, 2020) (the "CARES Act"). Sections 4022 through 4024 of the CARES Act addressed housing-related issues, including protections for holders of federally backed mortgages. See id. § 4024(b).

Among other things, the CARES Act enacted a 120-day moratorium on eviction filings based on the failure of a tenant residing in certain federally financed properties to pay rent. The statute provides:

During the 120-day period beginning on the date of enactment of this Act, the lessor of a covered dwelling may not—

(1) make, or cause to be made, any filing with the court of jurisdiction to initiate a legal action to recover possession of the covered dwelling from the tenant for nonpayment of rent or other fees or charges; or

(2) charge fees, penalties, or other charges to the tenant related to such nonpayment of rent.

Id. Additionally, the statute prevented a landlord from giving a notice of eviction to a tenant residing in a covered property until the 120-day statutory eviction moratorium expired and, even then, forestalled eviction proceedings for an additional 30 days. Id. § 4024(c). This moratorium and other protections for renters expired on July 24, 2020.

During this general timeframe, various States implemented eviction moratoria of their own. See 85 Fed. Reg. at 55,296 n.36. Some have since expired. Id.

B. The First CDC Order

On August 8, 2020, President Trump issued an executive order directing the Secretary of Health and Human Services and the Director of the CDC to "consider whether any measures temporarily halting residential evictions for any tenants for failure to pay rent are reasonably necessary to prevent the further spread of COVID-19 from one State or possession into any other State or possession." Fighting the Spread of COVID-19 by Providing Assistance to Renters and Homeowners, Executive Order 13,945, 85 Fed. Reg. 49,935, 49,936 (Aug. 8, 2020).

Pursuant to Executive Order 13,945, the CDC so found, and issued its first eviction moratorium on September 4, 2020. See Temporary Halt in Residential Evictions to Prevent the Further Spread of COVID-19, 85 Fed. Reg. 55,292 (Sept. 4, 2020). Acting on an emergency basis pursuant to Section 361 of the Public Health Service Act, 42 U.S.C. § 264, and 42 C.F.R. § 70.2,

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and affirmatively disclaiming promulgation of a rule under the Administrative Procedure Act, the CDC "determined the temporary halt in evictions in this Order constitutes a reasonably necessary measure ... to prevent the further spread of COVID-19 throughout the United States." 85 Fed. Reg. at 55,296. Indeed, the CDC acted based on "the convergence of COVID-19, seasonal influenza, and the increased risk of individuals sheltering in close quarters in congregate settings such as homeless shelters, which may be unable to provide adequate social distancing as populations increase" as fall and winter approached. Id. But the CDC also sought to head off further spread of Covid-19 when individuals become homeless and unsheltered. Id.

B.1. Key Provisions of the First CDC Order

The first CDC order imposed a moratorium on evictions through December 31, 2020, by directing that "a landlord, owner of a residential property, or other person with a legal right to pursue eviction or possessory action shall not evict any covered person." Id. Unlike the statutory moratorium enacted in the CARES Act, which applied to certain federally backed rental properties, the first CDC order applied throughout the nation to all residential properties. Id. at 55,293.

The CDC moratorium does not provide relief for tenants’ rent obligations. Id. at 55,292. That is, notwithstanding the moratorium, a tenant is still responsible for rent and other housing payments provided by lease, which continue to accrue, plus fees, penalties, and interest. Id. 55,296. Nor does the CDC moratorium preclude eviction of tenants who, for example, engage in criminal activity on the premises, violate building codes, damage property, threaten the health and safety...