Canilao v. City Commercial Investments, LLC

CourtDistrict Court, N.D. California
DecidedJuly 11, 2022
Docket3:20-cv-08030
StatusUnknown

This text of Canilao v. City Commercial Investments, LLC (Canilao v. City Commercial Investments, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canilao v. City Commercial Investments, LLC, (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 MONICA CANILAO, et al., Case No. 20-cv-08030-EMC

8 Plaintiffs, ORDER GRANTING DEFENDANT’S 9 v. MOTION FOR JUDGMENT ON THE PLEADINGS 10 CITY COMMERCIAL INVESTMENTS, LLC, Docket No. 51 11 Defendant. 12 13 14 Plaintiffs are six artists who painted murals on the exterior walls of the Stud Bar, San 15 Francisco’s oldest continuously operating queer bar until it shut down in May 2020. Plaintiffs 16 bring this action against Defendant City Commercial Investments, LLC (“CCI”), the owner of the 17 building in which Stud operated, to challenge CCI’s alleged whitewashing and intentional 18 destruction of Plaintiffs’ murals without notice in June 2020. Plaintiffs raise claims under the 19 federal Visual Artists Rights Act, California Arts Preservation Act and for negligence. 20 Now pending is CCI’s motion to dismiss Plaintiffs’ claims for lack of subject matter 21 jurisdiction and for judgment on the pleadings. Docket No. 51. For the following reasons, the 22 Court GRANTS CCI’s motion. 23 I. BACKGROUND 24 A. Relevant Factual Allegations 25 In 2017, Plaintiffs Monica Canilao, Zarathustra Wesolowski, Ellery Bakaitis, Jeremy 26 Novy, Susan Greene, and Hailey Gaiser (collectively, “Plaintiffs”) each painted large scale murals 27 on the exterior of San Francisco’s oldest continuously operating queer bar, The Stud. Docket No. | | = □□ 2 .

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15 Q 16 || Jd. (images of works including “Hands Lips, Face and Teeth,” “Queer Trans Spaces,” “Stud

= 17 || Stencil no. 1,” “Stepping Out,” “Eyes Wide Open,” and “Head First’). The Stud was located in

18 || a building at 399 9th Street in San Francisco (the “Building”), owned by Defendant City 19 Commercial Investments, LLC (“CCI”), and the bar was operated by Handsome Heidi, LLC, 20 || (“Handsome Heidi”). Id. § 15; Docket No. 31 (“Am. Third Party Compl.”) § 6. Plaintiffs allege 21 [t]he process of creating the Murals became a community celebration as many generations of queers, elders and youth, from 22 all walks of life, came out to visit and cheer the Artists on. Over the following years the Murals being located at the off ramp of the I- 23 80’s 9" street exit was a highlight for all people to see and the Murals became a symbol of the LGBTQ community’s fight to stay 24 in San Francisco. Passersby and bar patrons would pose and take pictures with friends, memorials were centered there and 25 celebrations were held daily, all in front of the Murals that were proclaiming a message of queer safety and solidarity. The 26 community venerated the Murals and saw them as an important symbol of refuge. 27 28 || Id. § 16. However, the Stud suffered debilitating losses as a result of the COVID-19 pandemic

1 and related “stay-at-home” orders issued, and, on or about May 31, 2020, the Stud closed its doors 2 after 54 years in business. Id. ¶ 17. After announcing the bar’s closing, the operators of the Stud, 3 Handsome Heidi, allegedly requested information from Defendant CCI about its plans for the 4 building, “specifically noting that if the building was to be demolished that community members 5 were interested in the façade being saved, preserved and moved; or that pieces of the building 6 could be distributed.” Id. ¶ 18. 7 The Stud “moved out on the eve of June, which is LGBTQ pride month, and most 8 importantly to all San Franciscans, the 50-year anniversary of the city’s historic Pride Week 9 celebration, where millions of people and the world’s eyes land on the SF LGBTQ community to 10 continue to lead the way in a worldwide struggle for human rights.” Id. ¶ 19. On June 20, 2020, 11 Plaintiff allege that CCI began to paint the building white, and then beige. Id. ¶ 20. Plaintiffs 12 allege that the “moment [CCI] began whitewashing and erasing the Artists’ Murals, people on the 13 street asked them to stop, but they refused.” Id. As news about the “destruction” of the murals 14 spread, Plaintiff there was an “outpouring of emotions and stories throughout the community” as 15 reflected in coverage by a number of news media outlets, including “Kron 4 News, SFGATE, 16 [and] the SF Chronicle.” Id. ¶ 21. Plaintiffs allege that CCI completed its destruction of the 17 murals by “mid-week of Pride 2020,” and that CCI’s decision, without warning or notice, to 18 willfully destroy the murals during a historic event for San Francisco’s LGBTQ community 19 “demonstrated clear disdain for and degradation of [Plaintiffs]” and caused sadness, harm and 20 outrage to Plaintiffs and the community. Id. ¶¶ 22-23. 21 Plaintiffs allege Defendant’s intentional destruction of their murals violates the Visual 22 Artists Rights Act (“VARA”), 17 U.S.C. § 106A, Compl. ¶¶ 24-29, the California Arts 23 Preservation Act, Cal. Civ. Code § 987, Compl. ¶¶ 30-35, and constitutes negligence, id. ¶¶ 36-40. 24 Plaintiff seek damages, including statutory damages and punitive damages, and an order 25 permanently enjoining CCI from destroying their artworks. Compl. § Prayer. 26 B. Procedural Background 27 Plaintiffs filed this action on November 13, 2020 against Defendant City Commercial 1 against Handsome Heidi, Docket No. 20, and on July 29, 2021, CCI filed an amended third-party 2 complaint against Handsome Heidi, alleging that Handsome Heidi invited the Plaintiffs to the 3 leased premises for the purpose of painting artwork onto the exterior of the building, asserting 4 claims for breach of contract, contractual indemnity, waste, and negligence. See Am. Third Party 5 Compl. 6 Now pending is CCI’s motion to dismiss Plaintiffs’ complaint pursuant to Fed. R. Civ. P. 7 12(b)(1) for lack of subject matter jurisdiction and for judgment on the pleadings pursuant to Fed. 8 R. Civ. P. 12(c). See Docket No. 51 (“Mot.”). The Court heard argument on the motion on May 9 12, 2022, and provided the parties with the opportunity to submit supplemental briefing on the 10 principles that should guide the Court’s interpretation of the VARA by May 19. The parties 11 timely filed supplemental briefs. See Docket Nos. 64, 65. 12 II. STANDARD OF REVIEW 13 A. Lack of Subject Matter Jurisdiction/Standing (Rule 12(b)(1)) 14 Under Rule 12(b)(1), a party may move to dismiss for lack of subject matter jurisdiction. 15 “[L]ack of Article III standing requires dismissal for lack of subject matter jurisdiction under 16 [Rule] 12(b)(1).” Maya v. Centex Corp., 658 F.3d 1060, 1067 (9th Cir. 2011). The “irreducible 17 constitutional minimum” of standing requires that a “plaintiff must have (1) suffered an injury in 18 fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to 19 be redressed by a favorable judicial decision.” Spokeo, Inc. v. Robins (“Spokeo II”), 136 S. Ct. 20 1540, 1547 (2016). These three elements are referred to as, respectively, injury-in-fact, causation, 21 and redressability. Planned Parenthood of Greater Was. & N. Idaho v. U.S. Dep't of Health & 22 Human Servs., 946 F.3d 1100, 1108 (9th Cir. 2020). “The plaintiff, as the party invoking federal 23 jurisdiction, bears the burden of establishing these elements,” which at the pleadings stage means 24 “clearly . . . alleg[ing] facts demonstrating each element.” Spokeo II, 136 S. Ct. at 1547 (quoting 25 Warth v.

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Canilao v. City Commercial Investments, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canilao-v-city-commercial-investments-llc-cand-2022.