Ashbritt, Inc. v. Ghilarducci

District Court, N.D. California·Decided December 16, 2020·No. 3:20-cv-04612·Unknown

Opinion

1 2 3 4 5 6 UNITED STATES DISTRICT COURT 7 NORTHERN DISTRICT OF CALIFORNIA 8 9 ASHBRITT, INC., Case No. 20-cv-04612-JSC

10 Plaintiff, ORDER RE: MOTION TO DISMISS 11 v. SECOND AMENDED COMPLAINT

12 MARK GHILARDUCCI, et al., Re: Dkt. No. 22 Defendants. 13

14 15 AshBritt Inc. (“Plaintiff”) brings a Section 1983 action against Mark Ghilarducci and Ken 16 DaRosa (collectively, “Defendants”) alleging violation of its First Amendment rights, California 17 procurement law, and Federal Rule of Civil Procedure 57. Defendants’ motion to dismiss 18 Plaintiff’s Second Amended Complaint is now pending before the Court. 1 (Dkt. No. 22.) After 19 carefully considering the amended complaint and the parties’ written submissions, the Court 20 concludes that oral argument is not necessary, see N.D. Cal. Civ. L.R. 7-1(b), VACATES the 21 December 17, 2020 hearing, and GRANTS in part and DENIES in part in the motion to dismiss. 22 Plaintiff has adequately alleged standing, but the first claim for damages based on violation of 23 Plaintiff’s First Amendment rights is dismissed for failure to state a claim, and the second and 24 third claims for declaratory relief are barred by the Eleventh Amendment. 25 // 26 // 27 1 BACKGROUND 2 A. Second Amended Complaint Allegations 3 Plaintiff is a Florida Corporation engaged in the business of disaster recovery and response 4 services. (Dkt. No. 21, Second Amended Complaint (“SAC”) at ¶ 5. 2) Mr. Ghilarducci is the 5 Director of California Governor’s Office of Emergency Services (“OES”), and Mr. DaRosa is the Acting Director of the California Department of Resources Recycling and Recovery 6 (“CalRecycle”). (Id. at ¶¶ 6-7.) 7 CalRecycle engaged Plaintiff to perform cleanup services in Lake County in 2015. (Id. at 8 ¶ 17.) During a conference call with Mr. Ghilarducci, Plaintiff’s Chairman of the Board, Randy 9 Perkins, criticized the way the state paid its contractors. (Id.) In a subsequent call, Mr. 10 Ghilarducci stated that he would ensure, to the best of his ability, that Plaintiff would not work in 11 the state of California. (Id.) Plaintiff contends that since Mr. Ghilarducci’s statement, CalRecycle 12 has rejected all of Plaintiff’s bids to work on debris removal projects. (Id. at ¶ 18.) 13 In May 2020, OES gave CalRecycle the authority to manage a tree removal, transport, and 14 disposition project in Butte County. (Id. at ¶ 11-12.) CalRecycle issued an invitation for 15 independent contractors to submit bids to work on the project. (Id. at ¶11.) This invitation 16 included a “California Only Restriction” which limits eligibility for bid acceptance to local and 17 California-based corporations. (Id. at ¶ 13.) AshBritt “would have submitted a bid, sought to 18 perform work on the contract, and performed such work, had it not been ineligible under the 19 ‘California Only Restriction.’” (Id. at ¶ 14.) AshBritt has “challenged the ‘California Only 20 Restriction’ by questioning its validity in inquiries to CalRecycle.” (Id. at ¶ 15.) It believes that 21 the “California Only Restriction” has been implemented to exclude Plaintiff from bidding on the 22 project. (Id. at ¶ 16.) B. Procedural Background 23 Plaintiff filed the complaint in this action on July 10, 2020. (Dkt. No. 1.) Three days later, 24 Plaintiff filed its First Amended Complaint which alleged two claims for relief: (1) violation of 42 25 U.S.C. § 1983 and the Privileges and Immunities Clause of Article IV of the Constitution, see U.S. 26 27 1 Const. art. IV, § 2, cl. 1.; and (2) for declaratory relief. The Court granted Defendants’ motion to 2 dismiss Plaintiff’s Privileges and Immunities Clause claim. (Dkt. No. 20.) Plaintiff thereafter 3 filed the now-operative SAC which includes two Section 1983 claims seeking damages and declaratory relief based on violation of AshBritt’s First Amendment Rights, and a claim seeking 4 declaratory relief under “California Procurement Statutes and Decisional Law and Federal Rule of 5 Civil Procedure 57.” (Dkt. No. 21.) Defendants responded by filing the now pending motion to 6 dismiss. 7 DISCUSSION 8 Defendants move to dismiss the SAC contending that (1) Plaintiff lacks standing because it 9 cannot allege that it has been injured; (2) the Eleventh Amendment bars the request for declaratory 10 relief, and (3) Plaintiff cannot state a claim for First Amendment retaliation. 11 A. Standing 12 “Standing is a necessary element of federal-court jurisdiction” and a “threshold question in 13 every federal case.” Thomas v. Mundell, 572 F.3d 756, 760 (9th Cir. 2009) (citing Warth v. Seldin, 14 422 U.S. 490, 498 (1975)). Article III standing consists of three “irreducible constitutional 15 minimum” requirements: “[t]he plaintiff must have (1) suffered an injury in fact, (2) that is fairly 16 traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a 17 favorable judicial decision.” Spokeo, Inc. v. Robins, 136 S. Ct. 1540, 1547 (2016). These elements 18 are often referred to as injury in fact, causation, and redressability. See, e.g., Planned Parenthood 19 of Greater Washington & N. Idaho v. U.S. Dep’t of Health & Human Servs., 946 F.3d 1100, 1108 20 (9th Cir. 2020). Plaintiff, as the party invoking federal jurisdiction, bears the burden of 21 establishing the existence of Article III standing and, at the pleading stage, “must clearly [ ] allege 22 facts demonstrating each element.” Spokeo, 136 S. Ct. at 1547 (internal quotation marks and 23 citation omitted); see also Baker v. United States, 722 F.2d 517, 518 (9th Cir. 1983) (“The facts to 24 show standing must be clearly apparent on the face of the complaint.”). 25 An injury in fact is “an invasion of a legally protected interest” that is (1) “concrete,” (2) 26 “particularized,” and (3) “actual or imminent, not conjectural or hypothetical.” Spokeo, 136 S. Ct. 27 1 injury “must affect the plaintiff in a personal and individual way,” while “concreteness” requires 2 an injury to be “‘de facto’; that is, it must actually exist.” Id. at 1548 (internal citation omitted). 3 The requirement that an injury be “actual or imminent” “ensure[s] that the alleged injury is not too 4 speculative for Article III purposes—that the injury is certainly impending.” Clapper v. Amnesty 5 Int’l USA, 568 U.S. 398, 409 (2013). Further, there must be a sufficient “causal connection 6 between the injury and the conduct complained of.” United States v. Hays, 515 U.S. 737, 743 7 (1995). 8 Defendants insist that Plaintiff lacks standing because (1) it cannot demonstrate an injury 9 because it never applied for the bid with the California Only Restriction, and (2) it cannot allege 10 that it would have obtained the bid, if it had applied. Plaintiff counters that it need not have 11 submitted a bid because it would have been futile to do so and it is not required to show that it 12 would have been awarded the bid to establish standing. 13 “[S]tanding does not require exercises in futility.” Taniguchi v. Schultz, 303 F.3d 950, 957 14 (9th Cir.2002). Courts do not require plaintiffs to submit a formal application where the 15 challenged policy or ordinance unambiguously rendered an application futile. See, e.g., id. at 950 16 (“the [challenged] statute unambiguously precludes Taniguchi, as [a lawful permanent resident] 17 convicted of an aggravated felony, from the discretionary waiver.

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