The U.S. Supreme Court case John K. Yee, et al. v. City of Escondido, California in 1991 revolved around a dispute over the constitutionality of a city ordinance that regulated mobile home park rents in Escondido, California. The plaintiffs were owners of mobile home parks who argued that the rent control law violated their Fifth Amendment rights by constituting an unlawful taking without just compensation and also infringed on their Fourteenth Amendment due process rights by being arbitrary and irrational. However, the Supreme Court ruled against them stating that they had not exhausted all state judicial remedies before bringing their claims to federal court as required under Williamson County Regional Planning Commission v Hamilton Bank (1985). Therefore, it was inappropriate for federal courts to intervene at this stage since there might be adequate compensation available through state procedures which could render any potential constitutional violation moot. In essence, this ruling did not address whether or not the rent control law was unconstitutional but rather emphasized procedural requirements for such cases - specifically highlighting exhaustion of state remedies prior to seeking redress from federal courts.

In the dissenting opinion for Yee v. City of Escondido, Justice Blackmun argued that the majority had misinterpreted precedent and failed to recognize a taking under the Fifth Amendment. He contended that mobile home park owners were subjected to a physical occupation of their property because they could not control who occupied their land or at what price due to rent control ordinances. This, he believed, constituted a per se taking requiring just compensation regardless of whether it served a public purpose or not. Furthermore, he criticized the majority's reliance on economic factors in determining whether there was an unconstitutional deprivation of property rights as this approach ignored previous rulings which held that any permanent physical invasion authorized by government is always considered as taking.