Who Pays When the Police Damage an Innocent Owner’s Property?
Carlos Pena was in his print shop in North Hollywood when he heard loud noises outside. When he opened the front door, a man was running toward him. Close behind were U.S. Marshals with their guns drawn.
In a second, the man barreled past Carlos and locked himself alone in the shop. Carlos watched helplessly as Marshals surrounded the storefront and later as the LAPD SWAT team fired dozens of tear gas cannisters through the walls, roof, doors, and windows.
When the SWAT team finally entered the shop, the man was nowhere to be found. It was days before Carlos was allowed back in to survey the damage. His expensive printing equipment, as well as his inventory, was ruined. All told, it was about $60,000 in damage.
But when he reached out to the city, he got no response. Carlos had insurance, but his policy (like many standard policies) did not cover damage done by the government. For years now, Carlos has been operating out of his garage and earning less because he can’t afford to replace the equipment he lost.
When Carlos sued Los Angeles in 2023 with
@IJ we knew that municipalities were often leaving innocent people high and dry after damaging their property. What we didn’t know was the scope of the problem. Thanks to our professional strategic research team, we just released the first nationwide survey to investigate claims for police damage.
The study examined more than 2,700 claims across 222 municipalities over nine years. What we found was that paying for this damage can be a hardship for regular Americans but would hardly make a dent in government coffers. Sadly though, many municipalities refuse to pay even the worthiest of claims.
The median value of a property damage claim in our data was $1,260, more than most Americans have in their emergency funds. The three most common types of claims were residential damage from routine law enforcement activities, vehicle damage, and residential damage from SWAT raids. Only about 1 in 10 claims was, like Carlos’, for $10,000 or more.
We found that if the municipalities in our dataset had paid out every claim they received over the nine years of the study, it would have cost them only around $6,500 a year. That’s an important figure because cities often say paying such claims would bust their budgets. Yet this estimate amounts to 0.00052% of the average amount of direct general expenditures among the local governments in the study—a drop in the bucket.
But right now, municipalities are routinely denying claims—60% of all claims with known outcomes and 41% of claims where the property owners were innocent bystanders.
We also found that there are some places that generally try to do the right thing and pay most claims. Others pay almost none. For instance, when looking at claims for residential damage from tactical raids or pursuits, the District of Columbia had a payment rate of 0%.
Officers on the scene sometimes assume that the municipality will compensate owners. We identified 243 claims records across 73 jurisdictions—nearly 10% of our records—in which claimants said officers told them how to file a claim or assured them the city would pay. This is likely an undercount because claims generally did not include details of conversations with law enforcement.
In the United States, innocent property owners shouldn’t be left with bills when police damage their property while protecting the public. The Founding Fathers already came up with a solution: The Fifth Amendment to the Constitution requires that the government pay “just compensation” when the government “takes” property for a public use.
Unfortunately, the district court and appeals court did not recognize Carlos’ right to compensation. But IJ is asking the Supreme Court to take his case and a similar case from a woman in South Bend, Indiana, whose home was damaged by a SWAT team. These cases will be considered in the next few weeks, so stay tuned to see whether they make their way to the nation’s highest court.