Philly judge dismisses federal lawsuit against recently passed renter protections

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A federal judge has ended a lawsuit aimed at invalidating renter protections that Philadelphia City Council passed earlier this year.

In a 23-page opinion released Friday, U.S. District Judge Wendy Beetlestone said she dismissed the constitutional challenge because the complaint’s allegations were not supported by facts that raised them “above the level of mere speculation.”

She also wrote that the new laws serve “legitimate state interests,” including protecting public health, reducing displacement and promoting housing stability.

“By introducing stronger licensing requirements, protecting tenants from retaliation for reporting housing code violations or participating in tenant organizing, and requiring evictions only for good cause, the bills rationally serve legitimate state interests,” Beetlestone said.

The opinion was entered without prejudice, meaning the two landlords who filed the suit can amend their complaint and renew the lawsuit.

Beetlestone’s ruling came two days before the laws were set to take effect, handing another victory to the fair housing advocates who fought for them.

“This lawsuit was always a desperate attempt by the landlords to stop laws that they oppose. They didn’t have the votes against the bills in City Council, so they turned to the courts, threw everything against the wall, and hoped that something would stick,” said Madison Gray, staff attorney at the Public Interest Law Center, in a statement.

“The court rightly recognized that Philadelphia has the right to protect renters,” she said.

Filed in March, the lawsuit argues that the legislation is unconstitutional because it violates “fundamental property rights” spelled out in the Fifth and 14th Amendments, including the “right to exclude and the right to control the use of the property,” according to the complaint.

The suit also maintains that the legislation disproportionately “burdens” independent landlords in Philadelphia, who are “least able to absorb financial shocks and are most likely to reduce investment or exit the market under increased regulatory pressure.”

According to the complaint, that will shrink the city’s already limited supply of affordable housing, hurting those small businesses and the population the laws are intended to help.

For these reasons and others, Seth Floyd, one of the landlords who filed the suit, said Friday that he intends to keep fighting the legislation.

“We don’t have a choice. We’re gonna fight as long as we can. The problem isn’t gonna go away. We’re just seeing the tip of the iceberg for what it’s going to look like,” Floyd said after Friday’s hearing.