By Mike Scarcella, Reuters

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A U.S. federal appeals court ruled Friday that the United States must face potentially billions of dollars in legal claims over a temporary ban on residential evictions during the COVID pandemic that affected millions of landlords.

The Washington, D.C.-based U.S. Court of Appeals for the Federal Circuit in a 7-3 decision, opens new tab rejected the government's bid to overturn a decision by a panel of judges last year that refused to dismiss claims from landlords seeking compensation over the eviction moratorium.

Damages have been estimated at tens of billions of dollars, as rental property owners were blocked from evicting people who were not paying rent.