Tiger Lily, LLC v. HUD

Procedural entryThis page is a short order in Tiger Lily, LLC v. HUD. Read the opinion of the Court — 992 F.3d 518
Court of Appeals for the Sixth Circuit·Decided July 23, 2021·No. 21-5256·Published

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 21a0166p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ TIGER LILY, LLC, et al., │ Plaintiff-Appellees, │ > No. 21-5256 │ v. │ │ │ UNITED STATES DEPARTMENT OF HOUSING AND │ URBAN DEVELOPMENT, et al., │ │ Defendants-Appellants. ┘

On Appeal from the United States District Court for the Western District of Tennessee at Memphis. No. 2:20-cv-02692—Mark S. Norris Sr., District Judge.

Decided and Filed: July 23, 2021

Before: NORRIS, THAPAR, and BUSH, Circuit Judges. _________________

COUNSEL

ON BRIEF: Alisa B. Klein, Brian J. Springer, UNITED STATES DEPARTMENT OF JUSTICE, Washington, D.C., for Appellants. S. Joshua Kahane, Aubrey B. Greer, GLANKLER BROWN, PLLC, Memphis, Tennessee, for Appellees. Brianne J. Gorod, CONSTITUTIONAL ACCOUNTABILITY CENTER, Washington, D.C., Jay R. Carson, THE BUCKEYE INSTITUTE, Columbus, Ohio, for Amici Curiae.

BUSH, J., delivered the opinion of the court in which NORRIS and THAPAR, JJ., joined. THAPAR, J. (pp. 10–13), delivered a separate concurring opinion. _________________

OPINION _________________

JOHN K. BUSH, Circuit Judge. Ten months ago, the Centers for Disease Control and Prevention imposed an eviction moratorium on rental properties across the country. It found No. 21-5256 Tiger Lily, LLC, et al. v. HUD, et al. Page 2

authority for its unprecedented action in a provision of the Public Health Service Act of 1944. Plaintiffs sued, arguing that the provision does not grant the CDC the sweeping authority it claims. The district court found in their favor and granted them declaratory relief. We affirm.

I.

In March of 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security Act. Pub. L. No. 116-136, 134 Stat. 281 (2020). Among other things, the CARES Act imposed a 120-day moratorium on evictions from rental properties that participated in federal assistance programs or had federally backed loans. Id. § 4024.

After that congressionally enacted moratorium ended, the CDC stepped in. It issued an order entitled “Temporary Halt in Residential Evictions To Prevent the Further Spread of COVID-19.” 85 Fed. Reg. 55,292. The Halt Order imposed a broader eviction moratorium than Congress had, one that prohibited eviction of all “covered persons”—without regard to whether the rental property relied on federal funds or loans—through December 31, 2020. Id. The CDC explained that the Order is a necessary measure to facilitate self-isolation, support state lockdown orders, and prevent congregation in settings like homeless shelters. Id. at 55,294.

The CDC found authority for its entry into the landlord-tenant relationship in the Public Health Service Act of 1944, which authorizes the Secretary of Health and Human Services1 to “make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases.” 42 U.S.C. § 264(a). To carry out and enforce “such regulations,” the Secretary can “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.

In late December, before the Halt Order elapsed, Congress included a provision in the Consolidated Appropriations Act that extended the order through January 31, 2021. Pub. L. No. 116-260, § 502, 134 Stat. 1182 (2020). Since then, the CDC has thrice extended the order

1 The statute actually grants the authority to the Surgeon General, but it has since been transferred to the Secretary. 20 U.S.C. § 3508; 31 Fed. Reg. 8855. No. 21-5256 Tiger Lily, LLC, et al. v. HUD, et al. Page 3

beyond that congressionally authorized date—first until March 31, then until June 30, and now through July 31. 86 Fed. Reg. 8020; 86 Fed. Reg. 16,731; 86 Fed. Reg. 34,010.

Soon after the CDC issued the original Halt Order, Plaintiffs, who own or manage rental properties, filed suit seeking a declaratory judgment that the Halt Order exceeds the government’s statutory grant of power, that it violates the Constitution, and that its promulgation violated the Administrative Procedures Act. They also sought a preliminary injunction barring the order’s enforcement.

The district court denied the preliminary-injunction motion because it found that Plaintiffs’ loss of income did not rise to the level of an irreparable injury. The government then moved for judgment on the pleadings, and Plaintiffs for judgment on the administrative record. The district court ruled for Plaintiffs, finding that the Halt Order exceeded the government’s statutory authority under 42 U.S.C. § 264(a). Tiger Lily v. U.S. Dep’t of Hous. & Urb. Dev., No: 2:20-cv-02692-MSN-atc, 2021 WL 1171887, *10 (W.D. Tenn. Mar. 15, 2021). The next day, the government appealed and moved in both the district court and our court for an emergency stay pending appeal. We denied the motion because the government was not likely to succeed on the merits. See Tiger Lily, LLC v. U.S. Dep’t of Hous. & Urb. Dev., 992 F.3d 518, 522–23 (6th Cir. 2021). We now address the merits.

II.

On appeal, the government argues only that the district court erred in declaring the CDC’s Halt order an unlawful exercise of the agency’s authority. We review that question of law de novo. M.L. Johnson Fam. Properties, LLC v. Bernhardt, 924 F.3d 842, 848 (6th Cir. 2019); see also 5 U.S.C. § 706(2). Notably, the government does not ask us to grant Chevron deference to its interpretation of the relevant statute. “We therefore decline to consider whether any deference might be due” the Halt Order. HollyFrontier Cheyenne Refining, LLC v. Renewable Fuels Ass’n, 141 S. Ct. 2172, 2180 (2021); see also CFTC v. Erskine, 512 F.3d 309, 314 (6th Cir. 2008). No. 21-5256 Tiger Lily, LLC, et al. v. HUD, et al. Page 4

III.

The government claims that the Public Health Act of 1944, 42 U.S.C. § 264(a), authorizes the CDC’s Halt Order. Section 264(a) reads:

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.

That text does not grant the CDC the power it claims.

The first sentence authorizes the HHS Secretary “to make and enforce such regulations as in his judgment are necessary to prevent the introduction, transmission, or spread of communicable diseases.” 42 U.S.C.

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