"While it may be the case that governor has overstepped his authority under New York's Executive Law, curing those alleged harms would require this court to ignore the doctrine of state sovereign immunity and principles of federalism embodied in the Eleventh Amendment," wrote Chief Judge Colleen McMahon of the Southern District of New York.

The landlords argue that the order violated their contract and due process rights and amounted to an improper taking of their property under the US Constitution.