The City of New Orleans is facing a legal challenge over its recent ordinances that impose restrictions on short-term rentals, with significant implications for property rights and the local economy. The complaint was filed by Airbnb, Inc., along with several individual plaintiffs and Mid-City Mike Rentals, LLC, in the United States District Court for the Eastern District of Louisiana on February 14, 2025. The lawsuit targets the City of New Orleans' restrictive measures on short-term rentals as outlined in Ordinance No. 29381 M.C.S., Ordinance No. 29382 M.C.S., and Ordinance No. 30074 M.C.S.
The plaintiffs argue that these ordinances infringe upon fundamental property rights by limiting short-term rental licenses to one per square block, imposing discriminatory requirements against out-of-state homeowners, and mandating burdensome conditions for those few allowed to rent their properties. For instance, homeowners like Bret Bodin and Brad Newell have been prevented from leasing both their loft and carriage house due to these restrictions. Similarly, Darian Morgan and Michael Rosas have faced financial losses because they cannot fully utilize their properties for short-term rentals under the new rules.
Airbnb contends that these regulations violate multiple constitutional provisions including the Takings Clause and Due Process Clauses of both the U.S. and Louisiana Constitutions. The company also claims that the City’s actions breach federal statutes such as the Communications Decency Act by improperly shifting enforcement responsibilities onto platforms like Airbnb. Furthermore, Airbnb argues that requirements compelling them to disclose sensitive business data without due process infringe upon Fourth Amendment protections against unreasonable searches.
The plaintiffs are seeking declaratory relief to affirm their rights under state and federal law, injunctive relief to prevent further enforcement of these ordinances, and just compensation for what they describe as unconstitutional takings of property rights. They emphasize that short-term rentals provide substantial economic benefits not only to hosts but also to the broader community through tourism-driven revenue.
Representing the plaintiffs are attorneys from law firms including Gibson Dunn & Crutcher LLP and Stone Pigman Walther Wittmann L.L.C., while details about judges presiding over this case remain unspecified in this document. The case is identified as Case No. 2:25-cv-00329.