CMDS Residential, LLC v. Mayor and City Council Of Baltimore

District Court, D. Maryland·Decided March 18, 2024·No. 1:21-cv-01774·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

CMDS RESIDENTIAL, LLC,

v. Civil Action No. CCB-21-1774

MAYOR AND CITY COUNCIL OF BALTIMORE.

MEMORANDUM On February 1, 2024, the court granted the City’s motion for summary judgment as to Counts II, IV, VI, VIII, and X of CMDS’s complaint. Mem. Op., ECF 84. The court denied summary judgment for both parties as to Counts I, III, V, VII, and IX, and dismissed Count XI. Id. Two weeks later, the City moved for reconsideration of the decision to deny part of its motion for summary judgment. Mot. for Reconsideration, ECF 87 (“Mot.”). CMDS opposed reconsideration, Opp’n to Mot., ECF 88 (“Opp’n”), and the City replied, Reply in Supp. of Mot., ECF 92. The motion is now ripe for resolution and no oral argument is necessary. See Local Rule 105.6. For the following reasons, the motion for reconsideration will be denied. BACKGROUND CMDS sued the City after it denied CMDS’s application for a use and occupancy (“U&O”) permit to open a residential substance-abuse treatment facility in a building located at 6040 Harford Road (the “Property”). Mem. Op. at 28-33. When CMDS initially discussed its desired use with the City’s Zoning Administrator he tentatively agreed that, under the City Code, the use would be permitted as of right based on the Property’s prior authorized use as a nursing home, and his office later issued a verification letter to that effect. Id. at 7-10. After learning about CMDS’s project, the City Councilman representing the Property’s district, Ryan Dorsey, asked the City’s Department of Housing and Community Development (“DHCD”) about the Property’s use permissions. Id. at 11-15. Dorsey was concerned because he anticipated community opposition to the project (which did later materialize), and CMDS had told him that it would be able to use the Property as of right. Id. at 12, 15. DHCD employees extensively researched and considered the

question before concluding that CMDS’s plans constituted a “change” from the Property’s previously approved conditional use and that City Council approval was therefore required under the applicable City Code provision. Id. at 15-20. After the City’s Zoning Administrator denied CMDS’s application for a U&O permit as of right, the City’s Board of Municipal and Zoning Appeals (“BMZA”) formally applied DHCD’s “change” reasoning to hold that only the City Council could approve CMDS’s requested use. Id. at 28-31. CMDS did not seek approval from the City Council. Id. at 32-33. CMDS contends that the City’s denial of its U&O application was a capitulation to the community’s opposition to the project, which it argues was rooted in discriminatory and stereotypical beliefs about the individuals suffering from substance use disorders who would be

treated at the Property. Id. at 37, 43-44. CMDS asserts that the denial was therefore illegally discriminatory in violation of the equal protection clause of the Fourteenth Amendment; Title II of the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12132; the Fair Housing Act (“FHA”), 42 U.S.C. § 3604(f); and the Rehabilitation Act (“RA”), 29 U.S.C. § 794.1 The court denied the City’s motion for summary judgment as to the ADA and FHA claims, reasoning that, based on the evidence, a jury could conclude that consideration of the community’s discriminatory opposition was a motivating factor in the City’s decision to deny CMDS’s U&O

1 The court granted the City’s motion for summary judgment on CMDS’s other claims and they are not relevant to this motion for reconsideration. application. Id. at 42-43, 44-45. But CMDS’s evidence was insufficient to establish that discriminatory animus was the sole motivator as was required for the RA claim, and the court therefore granted the City’s motion for summary judgment as to that count. Id. at 45-46. The court denied summary judgment on CMDS’s equal protection claim because the City did not offer a

reason to explain why it had granted the Property’s prior owner a U&O permit without holding it to the requirements of the City Code, but strictly applied the Code to CMDS and denied its application. Id. at 48-51. The City moved for reconsideration, arguing that the court erred by applying a “motivating factor” test to CMDS’s discrimination claims under the ADA and the FHA, as opposed to a “but- for” test. Mot. at 2. The City reasons that the Fourth Circuit’s decision establishing a “but-for” test for claims brought under Title I of the ADA in Gentry v. E.W. Partners Club Management Co. controls CMDS’s claims under Title II of the ADA. Id. (citing 816 F.3d 228, 235 (4th Cir. 2016)). The City goes on to contend that Gentry also applies to CMDS’s FHA claim, and asks for reconsideration of the equal protection claim. Id. at 7-10.

LEGAL STANDARD A motion for reconsideration of an interlocutory order is governed by Federal Rule of Civil Procedure 54(b), which permits the court to revise an order “that adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties,” “at any time before the entry of a judgment adjudicating all the claims and all the parties’ rights and liabilities.” Fed. R. Civ. P. 54(b); Carlson v. Boston Sci. Corp., 856 F.3d 320, 325 (4th Cir. 2017). Reconsideration “involves broad[] flexibility to revise interlocutory orders before final judgment as the litigation develops and new facts or arguments come to light.” Id. (citing Am. Canoe Ass’n v. Murphy Farms, Inc., 326 F.3d 505, 514-15 (4th Cir. 2003)). Under Rule 54(b), the ultimate resolution of a motion to reconsider is left to the court’s discretion “subject to the caveat that where litigants have once battled for the court’s decision, they should neither be required, nor without good reason permitted, to battle for it again.” U.S. Tobacco Coop. Inc. v. Big South Wholesale of Va., LLC, 899 F.3d 236, 257 (4th Cir. 2018) (quoting Official

Comm. of Unsecured Creditors of Color Tile, Inc. v. Coopers & Lybrand, LLP, 322 F.3d 147, 167 (2d Cir. 2003)). “‘[A] motion to reconsider is not a license to reargue the merits or present new evidence’ that was previously availability to the movant.” Carrero v. Farrelly, 310 F. Supp. 3d 581, 584 (D. Md. 2018) (quoting Royal Ins. Co. of Am. v. Miles & Stockbridge, P.C., 142 F. Supp. 2d 676, 677 n.1 (D. Md. 2001)). Thus, the circumstances where reconsideration may be appropriate include “(1) a subsequent trial producing substantially different evidence; (2) a change in applicable law; or (3) clear error causing manifest injustice.” U.S. Tobacco, 899 F.3d at 257 (quoting Carlson, 856 F.3d at 325). At bottom, “the goal is to reach the correct judgment under law.” Lynn v. Monarch Recovery Mgmt., Inc., 953 F. Supp. 2d 612, 618-19 (D. Md. 2013) (quoting Netscape Commc’ns Corp. v.

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