Breed v. Jefferson County Metro Government

CourtDistrict Court, W.D. Kentucky
DecidedJanuary 13, 2025
Docket3:24-cv-00425
StatusUnknown

This text of Breed v. Jefferson County Metro Government (Breed v. Jefferson County Metro Government) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Breed v. Jefferson County Metro Government, (W.D. Ky. 2025).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION

LAWRENCE BREED, SR., ) ) Plaintiff, ) Civil Action No. 3:24-CV-425-CHB ) v. ) ) MEMORANDUM OPINION AND JEFFERSON COUNTY METRO ) ORDER GOVERNMENT, et al., ) ) Defendants. )

*** *** *** *** Before the Court are Defendants Jefferson County Metro Government and Marilyn Harris’s Motion to Dismiss and Defendant Mitch Perry’s Motion to Dismiss. [R. 8]; [R. 9]. Plaintiff submitted a Motion to Deny Defendants’ Motion, which the Court construes as Plaintiff’s response to Defendants’ motions. [R. 10]. Defendant Perry replied. [R. 11]. Defendants Jefferson County Metro Government and Harris did not file a reply, and the time to do so has passed. The motions are ripe and ready for review. For the reasons that follow, the Court will grant Defendants Jefferson County Metro Government and Marilyn Harris’s Motion to Dismiss and Defendant Mitch Perry’s Motion to Dismiss. [R. 8]; [R. 9]. I. BACKGROUND Plaintiff is a landlord. [R. 1, p. 2].1 During the COVID-19 pandemic in 2020, one of his tenants, Terrance Fountain, was unable to pay his rent. Id. at 2–3. Fountain filed an application for rental assistance with the Jefferson County Eviction Diversion Program. Id. This local program was created to manage and distribute rental assistance funds allocated to the states through the

1 The Court cites to the page numbers at the top of the page, assigned when the documents were filed in ECF. Federal Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and subsequent COVID-19-related legislation, including the American Rescue Plan Act (“ARPA”). Id. at 1; [R. 1- 2, p. 2 (Court Eviction Diversion Program Audit Summary)]; see Coronavirus Aid, Relief, and Economic Security Act, Pub. L. No. 116-136, 134 Stat. 281 (2020); American Rescue Plan Act of 2021, Pub. L. No. 117-2, 135 Stat. 4 (2021).2

Around November 20, 2020, the Jefferson County Eviction Program sent Plaintiff’s company, Merchants Financial Services, LLC (“Merchants Financial”), a check for $2,000, which covered Fountain’s unpaid rent through 2020. [R. 1, p. 3]; [R. 1-4, p. 2]. Plaintiff cashed the check. [R. 1, p. 3]. In May 2021, Plaintiff submitted another application to the Jefferson County Eviction Program for Fountain’s unpaid rent. [R. 1, p. 3]; [R. 1-5, p. 3]. Around June 17, 2021, the program issued a check for $7,500 to Plaintiff in his individual name, and Plaintiff cashed this check around June 28, 2021. [R. 1, p. 3]; [R. 1-4, p. 3]. The defendants claim that Plaintiff requested this check to cover part of 2020, but Plaintiff claims that this check was to cover Fountain’s “delinquent rent,

through 2021.” [R. 1, p. 3]; [R. 1-5, p. 3]. Louisville/Jefferson County Metro Government’s Office of Housing conducted a review and found that “Plaintiff had received duplicate payments under” the Court Eviction Diversion Program. [R. 1-10, p. 2]; [R. 1-5, p. 3]. After discovering this discrepancy, Marilyn Harris, the Director for the Office of Housing, sent a letter to Plaintiff, dated August 2, 2021, noting that his second application included

2 “The American Rescue Plan continues many of the programs started by the CARES Act (2020) and Consolidated Appropriations Act (2021) by adding new phases, new allocations, and new guidance to address issues related to the continuation of the COVID-19 pandemic.” About the American Rescue Plan, U.S. DEP’T OF THE TREAS., https://home.treasury.gov/policy-issues/coronavirus/about-the-american-rescue- plan#:~:text=U.S.%20Department%20of%20the%20Treasury,- Enter%20Search%20Term&text=The%20American%20Rescue%20Plan%20continues,of%20the%20COVID%2D1 9%20pandemic [https://perma.cc/W58B-VTH6] (last visited Jan. 9, 2025). fraudulent information and requesting that he return the $7,500 sent to him in June 2021. [R. 1, p. 4]; [R. 1-5, p. 3]. Plaintiff returned this amount to the Jefferson County Eviction Program through a check dated August 17, 2021 and issued by his company, Merchants Financial. [R. 1, p. 5]; [R. 1-6, p. 2].

On September 26, 2022, Plaintiff filed an action in state court against Harris and Justin Robinson, Deputy Director of the Office of Housing, for return of this $7,500 from the Jefferson County Eviction Program because he claimed that he returned the money “against his will” and that his second application was not fraudulent. [R. 1, p. 5]; [R. 1-10, p. 2]. The defendants— Robinson and Harris—filed a motion to dismiss for failure to state a claim, [R. 1-7], and the state court granted it on April 5, 2023. [R. 1-10]. In the motion, Defendants Robinson and Harris asserted that an “audit revealed that duplicate payments were made to [Plaintiff] and/or Merchants Financial Services for the same tenant for the same time period” and, in the August 2, 2021 letter, requested that Plaintiff return the money to “Metro Government.”3 [R. 1-7, p. 2]; [R. 1-5, pp. 2– 3].

The presiding state court judge, Defendant Mitch Perry, determined that there were multiple deficiencies in Plaintiff’s Complaint that “render[ed] dismissal necessary.” [R. 1-10, p. 3]. In particular, Judge Perry found that the plaintiff could not maintain an action where he attempted to “pro se assert claims on behalf of a non-party LLC, even one that he is the manager of,” and that defendants were entitled to state “governmental immunity.” Id. at 3–4. In the Factual Background section of his order, Defendant Perry mentioned that “an audit of the program revealed” Plaintiff’s duplicative payments. Id. at 2. Soon after, Plaintiff filed suit again in state

3 The August 2, 2021 letter referred to a “review” of the program, not an audit. [R. 1-5, p. 2]. court, this time against Jefferson County Metro Government, again seeking to recover the $7,500. [R. 8-2, p. 4]; [R. 1, pp. 4–7]. Judge Perry also dismissed this case. Id. Plaintiff then filed a petition for a writ of mandamus with the Kentucky Court of Appeals, asking that the trial court be compelled to enter judgment in his favor in the state court cases. Id.

at 5–8. On April 3, 2024, the court dismissed his petition, finding that Plaintiff “failed to establish that he meets the prerequisites for the issuance of an extraordinary writ,” since his failure to timely appeal his state lawsuit against Defendant Harris and Justin Robinson did “not render that remedy [of appeal] inadequate.” Id. at 7. On July 24, 2024, Plaintiff filed his Complaint in this Court using the Court’s standard form and asserted his claim under federal question jurisdiction. [R. 1-11 (Civil Cover Sheet)]. In his Complaint, Plaintiff alleges that Defendant Harris “forced” him “to return $7,500 of federally validated federal money . . . for no legal reason.”4 [R. 1, p. 8]. He also presents allegations of three false claims made by Defendants Harris and Perry. First, he argues that Harris’s claim in the August 2, 2021 letter that he received duplicative payments is false. Id. at 5. Second, he contends

that Harris and Robinson’s motion to dismiss in state court contained a false statement because, contrary to their claim about an audit, there was no evidence that a formal audit of the funding program was ever conducted. Id.; [R. 1-5]. Finally, as a result of her allegedly false claim about an audit in the motion to dismiss, when Judge Perry included the term “audit” in his Opinion and Order, Plaintiff argues that Perry presented a false claim about the audit himself. [R. 1, p. 5]. Plaintiff asks that the Court “compel Defendants to return validated federal rent money to Plaintiff, he was forced to return for no legal reason.” [R. 1-11]; see also [R. 1, p. 1]. Within his

4 Plaintiff does not specify whether he has sued Defendant Harris in her individual capacity, official capacity, or both. For that reason, the Court considers Plaintiff’s Complaint against Harris in both her individual and official capacities.

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Bluebook (online)
Breed v. Jefferson County Metro Government, Counsel Stack Legal Research, https://law.counselstack.com/opinion/breed-v-jefferson-county-metro-government-kywd-2025.