California: Federal Appeals Court Upholds Santa Monica's Home Sharing Law
October 3, 2019 -- A Federal Appeals Court on Thursday rejected a potential class-action lawsuit against the City that claimed its home sharing law, which bans leasing residential property short term unless the owner is present, is unconstitutional.
The unanimous decision by the U.S. 9th Circuit Court of Appeals was the federal court's second major decision this year upholding the City's pioneering 2015 home sharing law.The suit filed in July 2016 by retired school teacher Arlene Rosenblatt claimed Santa Monica's ordinance unreasonably restricts the use of private property ("Lawsuit Claims Santa Monica’s Short-Term Rental Ban Unconstitutional," July 12, 2016).
The suit also claimed Santa Monica's law "substantially burdens" interstate commerce and discriminates in favor of Santa Monica businesses such as hotels.
Thursday's ruling marked the second major victory the 9th Circuit Court has handed Santa Monica this year.
In March the federal appeals court rejected a challenge of Santa Monica's law by Airbnb and HomeAway.com ("Appeals Court Affirms Santa Monica's Right to Regulate Online Homesharing Platforms," March 13, 2019).