Dear John,

Happy New Year from the Institute for Justice—and I already have some good news to share!

Just before the close of ‘24, we secured a resounding victory for property rights that could light the way for other IJ cases in the new year and beyond. The 9th Circuit overturned a federal district court decision dismissing our class-action lawsuit challenging Humboldt County, California’s unconstitutional code enforcement program.

This decision affirms that government bodies cannot impose unconstitutionally excessive fines based on flimsy evidence and then delay hearings indefinitely. Moreover, the opinion holds that people can bring excessive fines challenges even if their fines haven’t been paid yet, setting an important precedent that will help many people who would otherwise have no access to justice.

Watch case video ([link removed] )

Our lawsuit centers on Humboldt County’s aggressive and unconstitutional code enforcement practices. Following the legalization of marijuana in California, the county created a system where property owners could face hundreds of thousands of dollars in penalties for alleged violations supposedly linked to cannabis cultivation—even when no cultivation occurred. Some fines, for instance, were based on years-old satellite images, with no on-the-ground investigation ever conducted. Other fines were imposed because prior owners grew marijuana, even though the current owners were not involved in any way.

For example, IJ client Rhonda Olson faced an incredible $104,000 in daily fines—on land she had bought for just $60,000—because of hoop houses that were installed by a previous owner whose growing operation was already shut down by the county. The county later reevaluated her fines but still insists that she owes a total of $7.47 million.

Making matters worse, owners had to wait years for hearings while fines continued to accrue—some to hundreds of thousands of dollars—often forcing settlements under duress.

The 9th Circuit not only revived our case but embraced our legal theories—sending a strong signal to lower courts. And this important precedent will substantially advance IJ’s broader initiative to combat excessive fines and fees levied under the guise of zoning or property code enforcement.

Thank you to our supporters for standing with IJ. We look forward to building on this momentum in 2025 in California and throughout the country as we continue to defend the rights of everyday Americans.

Scott

Scott G. Bullock

President and Chief Counsel

Institute for Justice

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