Beg Investments, LLC v. Alberti

144 F. Supp. 3d 16, 2015 U.S. Dist. LEXIS 152185, 2015 WL 7008117
District Court, District of Columbia·Decided November 10, 2015·No. Civil Action No.: 13-0182 (RC)·Published·Cited by 14 cases

Opinion

MEMORANDUM OPINION

Denying Defendants’ Third Motion To Dismiss

RUDOLPH CONTRERAS, District Judge

I. INTRODUCTION

Plaintiff BEG Investments, LLC, formerly operated the Twelve Restaurant and Lounge in Washington, D.C. In June 2011, following reports of multiple violent incidents at the restaurant, the District of Columbia Alcoholic Beverage Control Board (“the Board”), of which the Defendants are members,1 renewed BEG’s alco-[19]*19hoi license. As a condition of its renewal, the Board required BEG to hire several D.C. Metropolitan police officers as a “reimbursable detail” to patrol the area surrounding the restaurant. BEG initially filed suit in February 2013 against six members of the Board claiming that the reimbursable detail condition was extortionate and discriminatory. BEG later filed a Supplemental Complaint in July 2014 seeking to add additional claims founded on events that took place after BEG had filed its initial complaint. This Court previously granted in part Defendants’ motions to dismiss, and has dis-1 missed all but one of the counts stated in BEG’s Complaint, Amended Complaint, and Supplemental Complaint. See generally BEG Invs., LLC v. Alberti, 85 F.Supp.3d 13 (D.D.C.2015), ECF No. 28 (hereinafter “BEG II”); BEG Invs., LLC v. Alberti, 34 F.Supp.3d 68 (D.D.C.2014), ECF No. 9 (hereinafter “BEG I”). The Court did grant BEG leave to supplement its Amended Complaint to include a claim of First Amendment retaliation. See BEG II, 85 F.Supp.3d at 45-48; see also Supp. Compl. ¶¶ 72-79, ECF No. 18-1. Now before the Court is Defendants’ motion to dismiss that remaining claim. Because BEG has stated a plausible claim of retaliation, however, the Court will deny Defendants’ motion to dismiss.

II. FACTUAL BACKGROUND

The Alcoholic Beverage Statute authorizes the Board to “issue licenses to persons who meet the requirements” set forth in statute and to impose “certain conditions” on those licenses if the Board “determines that the inclusion of the conditions will be in the best interest of the locality ... where the licensed establishment is to be located.” D.C.Code § 25-104(a), (e). The Board also oversees the Alcoholic Beverage Regulation Administration (“ABRA”), which provides “professional, technical, and administrative staff assistance to the Board in the performance of its functions.” Id. § 25-202.

BEG alleges that the Board can-celled its liquor license on May 14, 2014 in violation of BEG’s First Amendment rights and in retaliation for BEG’s pursuit of this lawsuit.2 See Suppl. Compl. ¶¶ 72-79. BEG applied for a renewal of its liquor license on September 6, 2013 and the Board scheduled a status hearing regarding that application for December 11, 2013. Id. ¶¶ 25- 26. After BEG’s representative fell ill and neither appeared at the hearing nor requested a continuance, the Board dismissed BEG’s application and provided BEG with ten days to move to reinstate the application. Id. ¶ 26-27; Board Order 2013-605 at 50, Defs.’ Mem. Opp. Ex. F, ECF No. 19-2.3 After BEG so moved, the Board denied the motion, finding that BEG lacked good cause to miss the hearing. Suppl. Compl. ¶ 28-29; Board Order 2014-028 at 54-55, Defs.’ Mem. Opp. Ex. G, ECF No. 19-2.

[20]*20BEG then filed a second application to renew its liquor license on February 7, 2014, and the Board held a hearing on that second application on April 21, 2014.4 Suppl. Compl. ¶ 80, 32. On May 1, 2014, after BEG had again failed to appear, the Board dismissed the second application. Id. ¶ 34. Once again, the Board allowed BEG ten days to move to reinstate its application. See Board Order 2014-130 at 2-3, Defs.’ Third Mot. Dismiss Ex. A, ECF No. 32-2. No motion was filed.

Instead of continuing to pursue the second application, on April 28, 2014 BEG filed a third renewal application with the ABRA. Suppl. Compl. ¶ 35. On April 30, 2014 (the day before the Board dismissed the second renewal application), BEG also filed its Amended Complaint with this Court. After BEG filed its Amended Complaint, and despite the pendency of the third renewal application, on May 14, 2014 the Board ordered BEG to immediately cease and desist selling alcoholic beverages, citing BEG’s failure to move for reinstatement of the second renewal hearing. Suppl. Compl. ¶ 37, Board Order 2014-218 at 63, Defs.’ Mem. Opp. Ex. F, ECF No. 19-2. Subsequently on May 21, 2014 and in light of the third renewal application BEG had filed, the Board vacated its order, permitted BEG to resume operations, and instructed ABRA’s Licensing Division “to process the new renewal application.” Board Order 2014-228 at 67, Defs.’ Mem. Opp. Ex. F, ECF No. 19-2.

BEG alleges that, because its third renewal application was pending, Defendants based its cease-and-desist order on information that the Board “knew or should have known by reasonable inquiry to be false.” Suppl. Compl. ¶ 74. BEG further claims that Defendants entered that order to “retaliate against Plaintiff for the filing of this lawsuit” and to “interfere with the Plaintiffs prosecution of its claims before this Court.” Id. ¶ 75, 76. This Court previously held that BEG had sufficiently alleged facts “suggesting that the Board had actual knowledge of the Plaintiffs renewal application,” and that the claim could proceed against the named Defendants in their official capacities.5 BEG II, 85 F.Supp.3d at 47.

Defendants have now filed a Third Motion to Dismiss this remaining claim, arguing that BEG’s Supplemental Complaint fails to plausibly allege the causation element necessary to state a claim for First Amendment retaliation and that, in any event, there is no basis for municipal liabil[21]*21ity. See generally, Defs.’ Mem. Supp. Third Mot. to Dismiss, ECF No. 32-1. BEG opposes the motion on both grounds. See generally Pl.’s Mem. Opp., ECF No. 33.

III. ANALYSIS

A. Legal Standard

The Federal Rules of Civil Procedure require that a complaint contain “a short and plain statement of the claim” in order to provide the defendant with fair notice of the claim and the grounds upon which it rests. Fed.R.Civ.P. 8(a)(2); accord Erickson v. Pardus, 551 U.S. 89, 93, 127 S.Ct. 2197, 167 L.Ed.2d 1081 (2007) (per curiam). A motion to dismiss under Rule 12(b)(6) does not test a plaintiffs ultimate likelihood of success on the merits; rather, it tests whether a plaintiff has properly stated a claim. See Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974). A court considering such a motion must presume that the complaint’s factual allegations are true and construe those allegations liberally in the plaintiffs favor. See, e.g., United States v. Philip Morris, Inc., 116 F.Supp.2d 131, 135 (D.D.C.2000).

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Beg Investments, LLC v. Alberti, 144 F. Supp. 3d 16, 2015 U.S. Dist. LEXIS 152185, 2015 WL 7008117 (D.D.C. 2015).

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