MHC Limited Financing v. City of San Rafael

In this appeal, the court considered whether San Rafael’s mobilehome rent regulation violated the park owners’ substantive due process rights, constituted a regulatory taking under Penn Central Transportation Co. v. New York City, or ran afoul of the public use requirement of the Fifth Amendment under the standards articulated in Kelo v. City of New London. The court concluded that the district court properly rejected the City’s arguments that MHC’s claims were barred by the statute of limitations and precluded by res judicata, and the district court did not abuse its discretion in allowing MHC to amend its complaint. The court also concluded that the regulation did not constitute either a Penn Central or a private taking. Because the court reached the merits of the takings issue, the court need not resolve the question of ripeness. The court further concluded that the district court did not err in granting judgment on MHC’s substantive due process claims; the district court did not err in submitting the breach of settlement contract claims to the jury, denying the motion for a directed verdict on that question, denying the motion for a new trial, or awarding attorneys’ fees; and in its original lawsuit, MHC waived its claim for damages in order to have a bench trial on the constitutional claims. Accordingly, the court reversed the district court’s holding as to the Penn Central and private takings, but affirmed the judgment in all other respects.

MHC Limited Financing v. City of San Rafael