BG Shop LLC v. Mason County Port District No 216

District Court, W.D. Washington·Decided July 30, 2024·No. 3:23-cv-05350·Unknown

Opinion

1 2 3

4 5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 7 BG SHOP LLC et al., CASE NO. C23-5350-KKE 8

Plaintiffs, ORDER GRANTING DEFENDANT’S 9 v. MOTION FOR SUMMARY JUDGMENT

10 MASON COUNTY PORT DISTRICT NO. 216, 11

Defendant. 12

13 Plaintiffs BG Shop LLC and Marlo Brown (collectively “Plaintiffs”) brought this civil 14 rights action against Defendant Mason County Port District No. 216 (“Port”) because the Port 15 rejected their application for a lease. After Plaintiffs failed to prosecute the case in any meaningful 16 way, the Port filed this motion for summary judgment seeking a full dismissal. The Port argues 17 Plaintiffs lack standing to raise their claims, are not members of a protected class, fail to provide 18 evidence of any individual discrimination, and fail to identify a due process right that has been 19 violated. In opposition, Plaintiffs submitted a self-serving declaration that both fails to rebut the 20 Port’s arguments and also contains factual errors and internal inconsistencies. Based on this 21 record, and Plaintiffs’ failure to meet the legal standard for any of its claims, the Court grants the 22 Port’s motion for summary judgment and dismisses the case. 23 24 1 I. BACKGROUND 2 In February 2000, the Port entered a land lease with R. Williams Enterprises (“Williams”) 3 for approximately two acres of Port property. Dkt. No. 27-1 at 2–26. During that lease, and with

4 the Port’s permission, Williams constructed two warehouses on the property. Id. at 28. On 5 December 7, 2021, the Port entered a Purchase and Sale Agreement (“PSA”) with Williams to buy 6 the warehouses and to end the land lease, returning full ownership of the property and warehouses 7 to the Port. Id. at 52–61. The PSA required Williams to terminate all leases with the current 8 tenants of the warehouse structures. Id. at 57. Plaintiffs had entered an improper sublease with a 9 lessee of Williams (id. at 30–35, 37–50), and were notified their lease would terminate on 10 December 31, 2021. Id. at 68–70. In response to Plaintiffs’ request (id. at 72), the Port and 11 Plaintiffs entered a short-term lease for the term January 3, 2022, to March 31, 2022, “with no 12 extensions.” Id. at 77.

13 On December 17, 2021, Plaintiffs submitted a partially complete application for a long- 14 term lease. Dkt. No. 27-1 at 110–16. After requesting additional documents (id. at 118), and 15 discussing the application at the December 21, 2021 Board of Port Commissioners meeting (id. at 16 93), the Port rejected the application on January 11, 2022. Id. at 63–66. 17 Around December 2021,1 Plaintiffs allege they “filed complaints with the attorney 18 general’s office … along with complaints to State representatives.” Dkt. No. 29-1 ¶ 4. The Port 19 denies receiving notification of any such complaints during this time. Dkt. No. 32 ¶ 4. 20 21 22

23 1 In her declaration, Ms. Brown states she made these complaints “on or about December 2021” but also “[a]fter the Port had issued its letter of Jan. 11, 2022.” Dkt. No. 29-1 ¶ 4. In the complaint, Plaintiffs allege these complaints were made December 10, 2021, and included allegations “that [the] business was being unlawfully evicted by a 24 government entity.” Dkt. No. 1 at 2 (referring to an “Ex. 4” that was never filed). 1 At the March 1, 2022 Board of Port Commissioners meeting, Plaintiffs orally requested 2 the Commissioners reconsider the prior lease rejection. Dkt. No. 33 (audio recording of the 3 meeting). The Commissioners voted to uphold the prior denial. See id.

4 On April 20, 2023, Plaintiffs filed this 42 U.S.C. § 1983 case against the Port alleging two 5 constitutional violations. Dkt. No. 1. First, Plaintiffs allege an equal protection violation based 6 on unlawful discrimination against a member of a protected class because BG Shop was the only 7 female-owned business, and the Port had no sufficient government interest “to justify the 8 differential and disparate treatment of Plaintiffs.” Id. at 5. Second, Plaintiffs allege a due process 9 violation because “Defendants violated Plaintiffs’ Constitutional rights to free speech” when 10 “Defendants terminated Plaintiff[s’] lease in substantial part because Ms. Brown dared to speak 11 out at a public hearing about the discrimination that she felt she and her business were experiencing 12 at the hands of the Port.” Id. at 6.

13 The Port now moves for summary judgment dismissing the case because Plaintiffs lack 14 standing, and each claim fails on the merits. Dkt. No. 26. 15 II. ANALYSIS 16 A. Legal Standard for Summary Judgment 17 Summary judgment is appropriate only when “the movant shows that there is no genuine 18 dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. 19 Civ. P. 56(a). The Court does not make credibility determinations or weigh the evidence at this 20 stage. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). The sole inquiry is “whether 21 the evidence presents a sufficient disagreement to require submission to a jury or whether it is so 22 one-sided that one party must prevail as a matter of law.” Id. at 251–52. And to the extent that

23 the Court resolves factual issues in favor of the nonmoving party, this is true “only in the sense 24 1 that, where the facts specifically averred by that party contradict facts specifically averred by the 2 movant, the motion must be denied.” Lujan v. Nat’l Wildlife Fed’n, 497 U.S. 871, 888 (1990). 3 The Court will, however, enter summary judgment “against a party who fails to make a

4 showing sufficient to establish the existence of an element essential to that party’s case, and on 5 which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 6 322 (1986). Once the moving party has carried its burden under Rule 56, “the nonmoving party 7 must come forward with specific facts showing that there is a genuine issue for trial.” Matsushita 8 Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986) (cleaned up). Metaphysical 9 doubt is insufficient (id. at 586), as are conclusory, non-specific allegations (Lujan, 497 U.S. at 10 888–89). 11 B. Plaintiffs Have Standing to Bring Claims for Civil Rights Violations. 12 The Port argues Plaintiffs lack standing for two reasons: 1) the Port was not a party to

13 Plaintiffs’ improper sublease that was terminated when the Port bought the warehouse; and 2) the 14 Port rejected Plaintiffs’ long-term lease application before Plaintiffs complained at the March 15 Board of Port Commissioners meeting, so Plaintiffs’ alleged First Amendment activity at that 16 meeting could not have caused its claimed injury. Dkt. No. 26 at 9–12, Dkt. No. 30 at 5. Plaintiffs 17 respond that they have a “liberty interest in protesting government action.” Dkt. No. 29 at 5. 18 Neither party correctly analyzes the federal standing requirements, instead each party jumps to 19 arguments on the merits under the guise of standing. 20 To establish constitutional standing, a plaintiff must show it has suffered an “injury in fact,” 21 that the injury is “fairly traceable” to the conduct at issue in the plaintiff’s claim, and that “it is 22 likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.”

23 Friends of the Earth, Inc. v. Laidlaw Envtl.

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