Hignell-Stark v. City of New Orleans

Hignell-Stark v. City of New Orleans

No. 21-30643, Fifth Circuit (Aug. 22, 2022)

Relevant Facts

• New Orleans implemented a short-term rental licensing regime in April 2017.
• In 2019, the City revised its STR licensing regime, imposing a residency requirement and new advertising restrictions.
• Property owners who had acquired STR licenses were denied renewal under the new residency requirement.

Decision of the Court

Affirmed in part, vacated in part. Takings Clause claim rejected—STR licenses were too short-lived to establish a customary property interest. Dormant Commerce Clause claim vacated—the residency requirement discriminated on its face against interstate commerce and required strict scrutiny, not Pike balancing.