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Forbes
Forbes
26 Jul 2023


man stands in front of door with hole in it

Carlos Pena showing some of the damage done by the Los Angeles Police Department.

Institute for Justice

Last year, the Los Angeles Police Department raided Carlos Pena’s print shop in North Hollywood. It wasn’t because of anything Carlos did; it was because a wanted man barricaded himself in the shop while running from U.S. Marshals. Today, Carlos is struggling to keep his business afloat and is now suing the city of Los Angeles. It’s just the latest sad story of an innocent property owner left holding the bag.

For over 30 years Carlos has been operating NoHo Printing & Graphics. He made a good living printing for commercial clients and walk-in customers. He hoped to pass on the shop to his son one day.

The day that dream was dashed Carlos stepped out the back door after hearing what sounded like a helicopter and someone talking on a bullhorn. In a split second, Carlos was attacked and locked out of his shop. The man barricaded himself inside and marshals surrounded the building.

The LAPD SWAT team then took over the scene. Officers fired dozens of rounds of teargas grenades into the shop, tearing holes through the roof, walls, doors and windows. The standoff lasted over 13 hours but the suspect somehow escaped.

When Carlos got back into his shop, he found most of his equipment ruined beyond repair. All his raw materials—tee shirts, toner, paper and more—had to be thrown away. All the drywall and insulation, soaked in tear gas, had to be torn out.

Carlos reached out to the U.S. Marshals about getting compensation, but they argued that the LAPD was responsible for the raid. Carlos has written letters to the city but never received an official response. Like many policies, his insurance doesn’t cover damage done by the government. He estimates that he lost $60,000 in supplies and equipment.

For now, Carlos is barely getting by and estimates that he is operating at about 20% of his previous capacity. Finally fed up with the city’s silence, he recently teamed up with the Institute for Justice to file a federal lawsuit.

“The business I had worked so hard to build was completely destroyed and I was left with the bill, even though I did nothing wrong,” said Carlos.

The Fifth Amendment requires that when government takes property it has to offer just compensation. The most familiar way for government to take property is through eminent domain for some sort of public purpose like a road or school. But this principle also extends to instances where the government intentionally or foreseeably destroys property, such as through flooding after building a dam or other public works project.

The LAPD SWAT team was seeking to keep the public safe by capturing someone suspected of serious crimes. They had good reason to believe that the suspect would violently resist arrest. But the precautions they took to safeguard life cost Carlos. Just as police wouldn’t send a bill to people they rescue, Carlos shouldn’t be left to pay the costs of public safety by himself.

Gas canisters, flash bang grenades, battering rams and armored vehicles are tools available to many police departments. Other property owners have faced the same situation as Carlos. Leo Lech’s home outside Denver was ruined after a shop-lifting subject holed up inside. Officers lobbed gas grenades into Shaniz West’s home suspecting that her wanted ex-boyfriend may have holed up inside (they did this even though Shaniz gave them the key to the house and told them he was not there). Vicki Baker’s home, which was days from being sold, was torn apart when a kidnapper used it to hide from Texas police.

Courts have not been consistent in ordering government to pay the costs of policing. Both Leo and Shaniz lost their lawsuits. But last year a Texas court ordered the city of McKinney to pay Vicki nearly $60,000 for the damage its SWAT team did.

Carlos is hoping that a federal court in California will similarly pay for the damage done to his property but also compensate him for the revenue he is losing every day. The loss of revenue has imperiled more than just his business as Carlos is seriously considering whether to sell his home to get by.

If a police cruiser plows into an innocent owners car while rushing to a crime scene, the city’s insurance policy covers the damage. It should be no different when law enforcement damages any other property in pursuit of public safety. This isn’t just a common sense rule, it’s a constitutional requirement.