In a ruling City officials called "a big win," a California Appeals Court on Wednesday affirmed Santa Monica's right to penalize online platforms for booking short-term rentals of properties not licensed under the city's strict home-sharing law.
The ruling by the Ninth Circuit Court of Appeals upheld a U.S. District Court ruling last summer dismissing the lawsuit filed by Airbnb and HomeAway.com.
The plaintiffs argued that the local ordinance is upending their business model by forcing them to remove illegal listings and poses an economic threat to the growing industry if other cities follow suit ("Challenge to Santa Monica's Home-Sharing Law Reaches Court of Appeals," October 15, 2018).
In its ruling Wednesday the panel of three judges affirmed the lower court's ruling that the City's 2015 Home-Sharing Ordinance is a lawful housing and rental regulation.
Read More: http://surfsantamonica.com/ssm_site/the_lookout/news/News-2019/March-2019/03_13_2019_Appeals_Court_Affirms_Santa_Monicas_Right_to_Regulate_Online_Home-Sharing_Platforms.html