Andy Beshear, in His Official Capacity as Governor of the Commonwealth of Kentucky v. Ridgeway Properties, LLC D/B/A Beans Cafe & Bakery

Kentucky Supreme Court·Decided February 23, 2022·No. 2021 SC 0228·Unknown

Opinion

RENDERED: FEBRUARY 24, 2022 TO BE PUBLISHED

Supreme Court of Kentucky 2021-SC-0228-I

ANDY BESHEAR, IN HIS OFFICIAL APPELLANTS CAPACITY AS GOVERNOR OF THE COMMONWEALTH OF KENTUCKY; ERIC FRIEDLANDER, IN HIS OFFICIAL CAPACITY AS SECRETARY OF THE CABINET FOR HEALTH AND FAMILY SERVICES; AND STEVEN STACK, IN HIS OFFICIAL CAPACITY AS COMMISSIONER OF THE KENTUCKY DEPARTMENT FOR PUBLIC HEALTH

ON REVIEW FROM COURT OF APPEALS V. NO. 2021-CA-0702 BOONE CIRCUIT COURT NO. 20-CI-00678

RIDGEWAY PROPERTIES, LLC D/B/A APPELLEES BEANS CAFE & BAKERY AND COMMONWEALTH OF KENTUCKY EX REL. DANIEL CAMERON IN HIS OFFICIAL CAPACITY AS ATTORNEY GENERAL

OPINION OF THE COURT BY JUSTICE HUGHES REVERSING AND REMANDING

A plaintiff with standing is essential to a court’s exercise of jurisdiction.

Without a party with an actual or imminent injury caused by a defendant and redressable by the court, the “justiciable cause” required by Section 112(5) of the Kentucky Constitution does not exist. Despite the allegations in Plaintiff

Ridgeway Properties, LLC d/b/a Beans Café & Bakery (Beans)’s Third Amended Complaint filed March 11, 2021, Beans has no injury, actual or imminent, caused by Defendants Governor Andy Beshear, Secretary of the Cabinet for Health and Family Services Eric Friedlander or Commissioner of the Kentucky Department for Public Health Steven Stack (collectively “the Governor”). In its June 15, 2021 Amended Judgment and Order (Amended Judgment), the Boone Circuit Court glossed over the issue of standing, simply stating “Plaintiff presented evidence of the injury it is suffering” but the limited evidence referred to all predates the passage of the 2021 COVID-19 Legislation by the Kentucky General Assembly—the focus of the Third Amended Complaint. The injuries Beans’ owner testified to at an injunction hearing were the result of executive branch actions taken in 2020 pursuant to executive orders and emergency regulations, all of which were found constitutional by this Court in a unanimous opinion fifteen months ago, Beshear v. Acree, 615 S.W.3d 780 (Ky. 2020). The Boone Circuit Court implicitly recognized the staleness of that proof and the tenuous nature of the injury when it stated that Beans’ owner “testified that he fears enforcement actions may still be brought against him even though as yet, that has not occurred following the passage of the Acts.” In fact, Beans has operated under its own COVID-19 plan, choosing to comply with the Centers for Disease Control and Prevention (CDC) guidance as allowed by 2021 House Bill (H.B.) 1, without any actual or hinted interference from the Governor or any member of the executive branch. Without any concrete actual or imminent injury on the part of Beans, the Boone Circuit Court had no

jurisdiction to grant “relief” by opining on the constitutionality of the 2021 COVID-19 Legislation and enjoining the Governor from interfering with Beans’ business operations. More importantly, that court had no authority to use Beans’ Third Amended Complaint as a stalking horse for issuing a statewide injunction.1 To understand how this all happened, some discussion of the evolution of the case is necessary.

RELEVANT FACTS AND PROCEDURAL BACKGROUND Boone Circuit Court Action 20-CI-678, from which this appeal emanates, began on June 16, 2020 when the Florence Speedway, Inc., filed suit against the Northern Kentucky Independent Health District (NKIHD) seeking declaratory and injunctive relief as to various executive branch COVID-19 orders and regulations. An amended class action complaint shortly thereafter added Beans and Little Links Learning, LLC (Little Links) as Plaintiffs and Governor Beshear, Secretary Friedlander and Commissioner Stack as Defendants. The Boone Circuit Court allowed the Attorney General to intervene as a Plaintiff on June 30, 2020 and held a hearing on the Plaintiffs’ motion for a restraining order the next day. The court’s July 2, 2020 injunction order granted relief to the Florence Speedway and Little Links but, notably, not Beans. Following an evidentiary hearing on July 16, 2020, the Boone Circuit Court issued a July 20, 2020 order that would have granted Florence Speedway, Little Links and the Attorney General a temporary

1 As explained below, the Attorney General’s presence as an Intervening Plaintiff does not remedy this jurisdictional defect.

injunction against the enforcement of the Governor’s COVID-19 orders but for this Court’s July 17, 2020 stay order.2 When the matter came before this Court via a writ, Beshear v. Acree, we reversed the Boone Circuit Court’s order and the matter was “remanded to that court for further proceedings, if any, consistent with this Opinion.” 615 S.W.3d at 830. So that is where the matter stood as of November 12, 2020.

In its 2021 regular session, the Kentucky General Assembly passed three bills pertinent to our discussion, all of which amended the Governor’s emergency powers under Kentucky Revised Statute (KRS) Chapter 39A. The most pertinent, H.B. 1, provided in part that a business could operate during the then-current state of emergency pursuant to an operating plan that “[m]eets or exceeds all guidance issued by the Centers for Disease Control and Prevention or by the executive branch, whichever is least restrictive.” Senate Bill (S.B.) 1 limited the effect of any of the Governor’s executive orders, regulations or directives imposing restrictions on in-person meetings or private businesses to “thirty (30) days unless an extension, modification, or termination is approved by the General Assembly.” S.B. 2 directed the Cabinet for Health and Family Services to promulgate any regulations regarding infectious or contagious diseases pursuant to KRS Chapter 13A and provided

2 Pursuant to its authority under Section 110 of the Kentucky Constitution, on July 17, 2020 the Kentucky Supreme Court issued an order staying all orders of injunctive relief issued by lower courts in COVID-19 litigation pending further action of the Supreme Court. This Court expressly noted the need for a clear and consistent statewide public health policy in the midst of the COVID-19 pandemic.

that the regulations are in effect “no longer than thirty (30) days” if they place restrictions on in-person gatherings or private businesses. All three bills (the 2021 Legislation or the New Legislation) contained an emergency clause, were vetoed by the Governor and became effective February 2, 2021 when those vetoes were overridden by the General Assembly.

As the Boone Circuit Court subsequently found, once the 2021 Legislation became effective Beans “opted to develop a compliance plan based upon CDC guidance in lieu of the Governor’s mandates.” Although neither the Governor nor any member of the executive branch sought to interfere with Beans’ decision and its business operations pursuant to that plan, Beans used Action No. 20-CI-6783 to press its continued disagreement with the Governor’s COVID-19 measures, advocating the constitutionality of the 2021 Legislation and seeking to enjoin the Governor from any action to the contrary. Beans’ Third Amended Complaint filed on March 11, 2021 once again sought injunctive and declaratory relief. Following a May 17, 2021 evidentiary hearing the Boone Circuit Court granted relief, first entering a June 8 order granting relief to the named Plaintiff and then, upon request, issuing the June 15, 2021 Amended Judgment that is before us on this appeal. The Amended Judgment declares the constitutionality of the 2021 COVID-19 Legislation, holds any orders to the contrary imposed by the Governor unconstitutional and prohibits

3 Following the November 2020 remand, Florence Speedway and Little Links essentially withdrew from the case. They had no role in the Third Amended Complaint or subsequent proceedings.

the three named Defendants from enforcing any emergency order, decree or regulation in conflict with the 2021 Legislation “against any person within this Commonwealth.”

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Andy Beshear, in His Official Capacity as Governor of the Commonwealth of Kentucky v. Ridgeway Properties, LLC D/B/A Beans Cafe & Bakery, (Ky. 2022).

Andy Beshear, in His Official Capacity as Governor of the Commonwealth of Kentucky v. Ridgeway Properties, LLC D/B/A Beans Cafe & Bakery (Andy Beshear, in His Official Capacity as Governor of the Commonwealth of Kentucky v. Ridgeway Properties, LLC D/B/A Beans Cafe & Bakery) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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