Federal Appeals Court Reverses Dismissal of Lawsuit Challenging Humboldt County’s Unconstitutional Fine System

HUMBOLDT COUNTY, CALIFORNIA—Today, in a significant victory for property rights, the U.S. Court of Appeals for the Ninth Circuit overturned a district court decision that dismissed a lawsuit challenging Humboldt County’s unconstitutional code enforcement program. The lawsuit, brought by the Institute for Justice (IJ) on behalf of a group of Humboldt property owners, now moves forward to challenge the county’s abusive system of ruinous fines levied without investigation.

“This ruling is a critical step toward dismantling Humboldt County’s unconstitutional enforcement regime,” said IJ Attorney Jared McClain. “The Ninth Circuit’s decision affirms that counties cannot impose exorbitant fines based on flimsy evidence and delay hearings indefinitely. This sets an important precedent, and we are eager to continue our fight for justice on behalf of Humboldt property owners.”

The 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. Owners had to wait years for hearings while fines continued to accrue, often forcing settlements under duress.

Calling Humboldt’s fines an “overstep,” the Ninth Circuit wrote that, “there are clear and concrete injuries stemming from the imposition of the penalties. Taking Plaintiffs’ factual allegations as true and drawing all reasonable inferences in their favor, the continued imposition of such significant penalties has already caused Plaintiffs emotional and psychological distress.”

The plaintiffs in the lawsuit include Corinne and Doug Thomas, Blu Graham, and Rhonda Olson—all property owners who faced crippling fines for alleged violations they did not commit. The lawsuit challenges Humboldt’s fines as excessive and unconstitutional under the Eighth Amendment, while also asserting that the county’s code-enforcement system violates due process and imposes unconstitutional conditions on homeowners. All those claims can now go forward on remand.

This lawsuit is part of the Institute for Justice’s broader initiative to combat excessive fines and fees levied under the guise of zoning or property code enforcement. IJ’s nationwide efforts have already secured victories curbing abusive practices in Pagedale, Missouri, Indianapolis and elsewhere. By targeting unconstitutional fines, IJ aims to restore fairness and proportionality to local government practices.