Chosen Consulting, LLC v. Town Council of Highland, Indiana

CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 1, 2025
Docket24-2714
StatusPublished

This text of Chosen Consulting, LLC v. Town Council of Highland, Indiana (Chosen Consulting, LLC v. Town Council of Highland, Indiana) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Chosen Consulting, LLC v. Town Council of Highland, Indiana, (7th Cir. 2025).

Opinion

In the

United States Court of Appeals For the Seventh Circuit ____________________ No. 24-2714 CHOSEN CONSULTING, LLC, doing business as CHOSEN HEALTHCARE, et al., Plaintiffs-Appellants,

v.

TOWN COUNCIL OF HIGHLAND, INDIANA, et al., Defendants-Appellees. ____________________

Appeal from the United States District Court for the Northern District of Indiana, Hammond Division. No. 2:20-cv-00246 — Philip P. Simon, Judge. ____________________

ARGUED MAY 28, 2025 — DECIDED AUGUST 1, 2025 ____________________

Before RIPPLE, ST. EVE, and KOLAR, Circuit Judges. RIPPLE, Circuit Judge. Chosen Consulting, LLC, d/b/a Cho- sen Healthcare, Indiana ATC JV, LLC, d/b/a Hickory Recovery Network, Highland Recovery, LLC, d/b/a Hickory Treatment Center at Highland, Chosen Highland, LLC, and Hickory House Recovery, LLC (referred to collectively as “Chosen”) brought this action against the Town Council of Highland, In- diana, the Highland Municipal Plan Commission, and the 2 No. 24-2714

Town of Highland, Indiana (referred to collectively as “the Town”). Chosen alleged that the Town discriminated against patients with addiction-related ailments by refusing to pro- vide a letter stating that Chosen’s proposed use of its property complies with local zoning requirements. Chosen claimed that this discrimination violated the Americans with Disabili- ties Act (“ADA”) and the Rehabilitation Act of 1973 and re- quested compensatory, injunctive, and declaratory relief. The district court granted summary judgment to the Town. Chosen now appeals the district court’s denial of in- junctive relief. Summary judgment on Chosen’s claim for in- junctive relief under the ADA and the Rehabilitation Act was proper because that claim is not ripe for adjudication. I BACKGROUND A. This case concerns a property in Highland, Indiana that historically operated as a nursing home. In the 1970s, the property was classified as located in a “Class ‘A-1’ Residence District.” 1 In September 1971, the Town’s Board of Trustees enacted Ordinance No. 645, which authorized a conditional use of the property as a nursing home for National Nursing Home, Inc. and its successors and assigns. At some point after September 1971, the zoning district in which the property is located was changed to a R-1A residential district. Chosen purchased the property in April 2019 and began transitioning it to treat primarily patients with addiction-

1 R.125-3 at 2. No. 24-2714 3

related ailments. As part of this transition, Chosen gave up the facility’s dual certification as a nursing facility and a skilled nursing facility. Chosen sought “to operate the facility as … ‘a dual-certified nursing facility and skilled nursing fa- cility to focus on providing continued services as (a) a sub- acute facility pursuant to Ind. Code § 12-22-2 and (b) a Nurs- ing Home pursuant to Section 18.05.250 of the Highland Mu- nicipal Code.’” 2 To transition to primarily treating patients with addiction-related disorders as a sub-acute facility, Cho- sen had to obtain a new license from the Indiana Family and Social Services Administration. To secure this new license, Chosen needed a letter from the Town stating that Chosen’s proposed use of the property satisfies local zoning require- ments. In July 2019, Ken Mika, the Town’s Building Commis- sioner and Zoning Administrator, and Mark Herak, a Town Councilman, met with representatives of Chosen. Commis- sioner Mika informed those representatives that Chosen needed a use variance to convert the facility. To obtain a use variance, Chosen first would have to apply to the Board of Zoning Appeals (“BZA”). The BZA has “exclusive jurisdic- tion for” use variances and would provide a “favorable or un- favorable recommendation to” the Town Council as to whether a use variance should be granted. 3 The Town

2 R.133 at 4 (quoting R.38 ¶ 17).

3 R.56-1 at 270. 4 No. 24-2714

Council would then approve or disapprove the BZA’s recom- mendation. 4 Chosen did not seek a variance. Sometime in the fall of 2019, however, it requested a letter from the Town “affirm- ing” that its proposed use conformed with the property’s al- leged “‘existing legal nonconforming use’ under Ordinance No. 645.” Chosen Consulting, LLC v. Town Council of Highland, No. 2:20-CV-246, 2024 WL 3983742, at *3 (N.D. Ind. Aug. 28, 2024). The Town did not issue the requested letter. In March 2020, Commissioner Mika and Councilman Herak met with Chosen representative Melissa Durkin and reiterated that Chosen would have to seek a use variance. Chosen still did not do so. In May 2020, the Town’s attorney emailed a Chosen rep- resentative a draft letter. The attorney stated that he did not have approval to send the letter and therefore Chosen could not rely on it. This draft letter recited that in the Town’s opin- ion, “the proposed use as a residential addiction treatment

4 The Town’s attorney also testified that Commissioner Mika and Coun-

cilman Herak suggested that Chosen file an application for rezoning. The Town’s attorney stated that either rezoning or a use variance was neces- sary because “the initial approval [for the facility] … did not contemplate a substance abuse treatment facility.” R.125-5 at 16. We understand the Town’s zoning ordinance to permit Chosen to apply for rezoning by peti- tioning the Town’s Plan Commission, which would thereafter consider the petition and provide a report to the Town Council. See R.56-1 at 264– 65 (providing the zoning code procedure for pursuing an amendment to the zoning ordinance). The Town Council would then take final action. See id. at 264. No. 24-2714 5

facility is permitted as a legal non-conforming use.” 5 No final letter was ever issued. On June 5, 2020, Durkin emailed Councilman Herak re- questing a call to “understand where we are in the process.” 6 Councilman Herak responded that day stating that he had “no knowledge of where the process is, as there is nothing happening.” 7 Councilman Herak explained that there was nothing on the BZA’s docket, and that “[t]he town attorney did say he didn’t think it was a protected class and a drug rehab doesn’t fall under nursing care.” 8 He concluded, “I leave it to the lawyers.” 9 Councilman Herak emailed Durkin again later that day stating that he was “unaware of any letter, either … being drafted or agreed to” and that the President of the Town Council, Mark Schocke, was one of three board members against the project. 10 Notably, three members of the Town Council composed a majority. On June 9, 2020, Councilman Herak emailed Durkin in- forming her that President Schocke, whose wife taught at a school near the property, was “opposed to the idea” and “had ‘brow beate[n] the town attorney and he’s changed his opin- ion.’” Id. (quoting R.63-1 at 4). The next day, Councilman Herak emailed Durkin stating that “[t]he teachers at [the nearby] school are opposed, as well as the neighbors. I assume

5 R.125-7 at 8.

6 R.63-1 at 6.

7 Id. at 5.

8 Id.

9 Id.

10 Id. 6 No. 24-2714

they think that drug addicts will be sent there, able to leave at will, sign out themselves, [and] walk the neighborhood.”11 B. Chosen filed this action on June 26, 2020. It requested a “declaratory judgment regarding proper zoning,” including declarations that “[t]he Property is properly zoned and may continue to operate as a legal nonconforming use” and that Chosen is “entitled to obtain the requested documentation of its legal nonconforming use.” 12 The district court granted judgment on the pleadings on this count.

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