LOS ANGELES, CA – In a major win for tenant rights advocates, a Los Angeles Superior Court judge has rejected attempts by several corporate landlords to dismiss a landmark lawsuit accusing them of illegal rent gouging in the aftermath of the Palisades and Eaton wildfires.
Filed on February 21, 2025, the lawsuit aims to enforce compliance with California Penal Code § 396, which bans extreme price increases on housing and essential needs following state-declared emergencies. The case, based on violations of the California’s Unfair Competition Law, was brought by community-based tenant organization Strategic Actions for a Just Economy (“SAJE”), represented by the Housing Rights Center, Western Center on Law & Poverty, Legal Aid Foundation of Los Angeles, and California Center for Movement Legal Services.
On July 1, 2025, the Court overruled all arguments made by Defendants 5959 Franklin Bliss, LLC and Villa Carlotta Bliss, LLC, denying their effort to dismiss the case. The Court also rejected arguments from Defendant 600 N Soto, LLC, finding that the lawsuit states valid legal claims and may proceed. The Court confirmed that the plaintiffs have standing and have sufficiently alleged violations of California’s Unfair Competition Law.
“The Court’s decision is a strong affirmation of the legal foundation of our case,” said Rodney Leggett, Litigation Director at the Housing Rights Center. “The judge rejected the defendants’ arguments and the Court’s ruling made clear that price gouging after a disaster is unlawful. We are proud to move forward in seeking justice for renters and communities harmed by this exploitation.”
This ruling marks the first major procedural victory in the case, which is the first private lawsuit filed by legal nonprofits in response to widespread post-fire rent gouging. The complaint alleges that in the wake of the wildfires, landlords and agents illegally raised rents by 25% to nearly 50% in direct violation of anti-price-gouging laws, which limit rent increases to 10% following a natural disaster. The defendants were identified by a spreadsheet that tracks exploitative rent gouging, created by SAJE’s Director of Policy and Advocacy, and the Rent Brigade, a grassroots collective. The price-gouging ban remains in effect in Los Angeles County until January 7, 2026.
Affected by the wildfires and impacted by price gouging? We want to hear from you. To report an incident of price gouging due to the Eaton fire, please contact the Housing Rights Center by emailing: info@housingrightscenter.org or calling: 1-800-477-5977, TTY: 1-213-201-0867. To report an incident of price gouging due to the Palisades fire, please contact the Legal Aid Foundation of Los Angeles by calling: 1-800-399-4529.
Read the full press release HERE.
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Strategic Actions for a Just Economy (SAJE) builds community power and leadership for economic justice, with a vision for society where everyone has access to green space, reliable and safe transit, economic security, and healthy, secure and affordable housing, and where the elements of the built environment necessary to survival are publicly supported infrastructure and not commodities.
Housing Rights Center (HRC) is one of the nation’s largest and oldest non-profit civil rights organizations dedicated to securing and promoting Fair Housing. HRC actively supports and promotes freedom of residence through education, advocacy, and litigation, to the end that all persons have the opportunity to secure the housing they desire and can afford, without regard to their race, color, national origin, ancestry, religion, gender, sexual orientation, familial status, marital status, disability, age, veteran status, source of income or other characteristics protected by law.
Legal Aid Foundation of Los Angeles (LAFLA) is a nonprofit law firm that seeks to achieve equal justice for people living in poverty across Greater Los Angeles. LAFLA changes lives through direct representation, systems change, and community empowerment. It has five offices in Los Angeles County, along with four Self-Help Legal Access Centers at area courthouses, and three domestic violence clinics to aid survivors.
Western Center on Law & Poverty (WCLP) is California’s premier nonprofit public interest social justice law organization. Founded in 1967, WCLP provide comprehensive advocacy and legal services to prevent poverty, redress systemic racism, and foster policies ensuring equitable healthcare, affordable housing, and fair access to public programs. Through litigation and policy advocacy in and beyond California, WCLP advance racial and economic justice—dismantling and transforming systems so all communities in California can thrive.
California Center for Movement Legal Services works to improve the lives of California’s traditionally underserved community members, through impact litigation, robust eviction defense, and community led policy creation, implementation and enforcement.
MEDIA CONTACTS:
Elizabeth Hamilton, Strategic Actions for a Just Economy, ehamilton@saje.net
Margot Parker-Elder, Housing Rights Center, mparkerelder@housingrightscenter.org
Elana Eden, Legal Aid Foundation of Los Angeles, eeden@lafla.org
Maria Sundeen, Western Center on Law & Poverty, msundeen@wclp.org
Leah Simon-Weisberg, California Center for Movement Legal Services, lsw@movementlegal.org
