And lawyers keep on charging
In essence, the short-term rental supporters allege that the lottery randomly singled them out without providing a cause for why their licenses to operate short-term rentals were not renewed. The city counters that it was stated in writing when the property owners signed the license application that it was good for only 12 months and might not be renewed.
Case watchers agree that Goldwater wants to lose as soon as possible so they can then appeal the verdict to the federal Ninth Circuit Court of Appeals.
The case is more far-reaching than just Pacific Grove. If successfully appealed to the Ninth Circuit, then the outcome of that court’s decision, one way or the other, could have significant ramifications for cities’ ability to legislate short-term rentals up and down California.
However, the Ninth Circuit earlier this month upheld the city of Santa Monica’s ban on short-term rentals. That decision can now be cited in lower court cases such as the lawsuit against the city of Pacific Grove.