Santa Clara County, CA—Today, the Institute for Justice (IJ) filed a new civil rights lawsuit against Santa Clara County on behalf of Michael and Kellie Ballard, owners of the Savannah-Chanelle Vineyards. The lawsuit challenges the constitutionality of the county’s imposition of excessive daily fines and enforcement of rigid zoning laws.
The fines, now totaling more than $120,000, were imposed after the Ballards allowed their long-time vineyard manager, Marcelino Martinez, to live in an RV on their 60-acre property. Despite causing no harm, the county deemed it a zoning violation and issued $100-per-day fines, pushing the Ballards toward financial ruin. Now, IJ and the Ballards are fighting back, arguing that fining people for offering private solutions to societal problems like housing affordability is both counterproductive and unconstitutional.
“Santa Clara County’s rigid and heartless enforcement of its zoning laws punishes good people for doing the right thing,” said Paul Avelar, Senior Attorney at the Institute for Justice. “The Ballards didn’t just offer a hand to their longtime employee—they provided him and his family with a lifeline in one of the most expensive places to live in the country. And for that, they’ve been punished with daily fines that could bankrupt them. In the midst of an unprecedented housing crisis, when so many families are being forced out of their homes, it’s not just wrong—it’s unconscionable—to punish people who are trying to be part of the solution. We need flexibility, not heavy-handed government fines, to address this crisis. The county’s actions in this case are driving up costs and driving people out of their communities.”
When Martinez lost his lease on a nearby rental home in 2013 the Ballards agreed to allow him to move an RV to a secluded part of their vineyard. The arrangement harmed no one and offered a crucial housing solution in one of the most expensive housing markets in the country. But years later, based on an anonymous complaint, Santa Clara County began issuing $100-per-day fines, forcing the Ballards to either evict Martinez or face financial devastation. Determined to stand by their employee, the Ballards began the long, costly process of building the Martinez family a permanent home, but delays in permitting and the COVID-19 pandemic meant that the fines continued to accumulate—reaching more than $120,000.
California, and particularly Santa Clara County, is facing a severe housing affordability crisis, and yet the government’s rigid zoning laws and punitive fines are making the situation worse. By filing this lawsuit, IJ and the Ballards are standing up for the principle that private individuals must be part of the solution. Local governments need to recognize this and show flexibility, rather than punishing people for helping others.
“Daily fines like the ones imposed on the Ballards are not just unfair—they’re unconstitutional,” said Bill Maurer, Senior Attorney at the Institute for Justice. “The U.S. Constitution’s protection against excessive fines means that the government cannot impose crushing financial penalties for minor zoning infractions that harm no one. Turning a $100 fine into hundreds of thousands of dollars, just because each day is counted as a separate violation, is a blatant and illegal abuse of power.”
IJ’s lawsuit argues that the county’s daily fines violate the Excessive Fines Clause of the Eighth Amendment. These disproportionate fines punish individuals for harmless zoning violations and undermine the constitutional separation of powers by allowing unelected county officials to impose them without judicial oversight. As part of today’s filing, IJ is also appealing the underlying fines already imposed on the Ballards.
The Ballards’ case is part of IJ’s broader efforts to combat abusive fines and fees and advance its Zoning Justice Project, which fights against zoning laws that stifle property rights and exacerbate the housing crisis. The Ballards’ case highlights how rigid zoning codes and punitive enforcement can prevent private solutions to societal problems, like affordable housing, from taking root.