Culinary Studios, Inc. v. Newsom

CourtDistrict Court, E.D. California
DecidedFebruary 8, 2021
Docket1:20-cv-01340
StatusUnknown

This text of Culinary Studios, Inc. v. Newsom (Culinary Studios, Inc. v. Newsom) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Culinary Studios, Inc. v. Newsom, (E.D. Cal. 2021).

Opinion

Case 1:20-cv-01340-AWI-EPG Document 31 Filed 02/08/21 Page 1 of 39

3 UNITED STATES DISTRICT COURT 4 EASTERN DISTRICT OF CALIFORNIA 5

6 CULINARY STUDIOS, INC., et al., CASE NO. 1:20-CV-1340 AWI EPG 7 Plaintiffs ORDER ON DEFENDANTS’ MOTIONS 8 v. TO DISMISS 9 GOVERNOR GAVIN NEWSOM, et al., (Doc. Nos. 15, 16, 17, 20) 10 Defendants 11

12 This case involves challenges to restrictions placed on businesses by Gov. Newsom and 13 various state agencies, the City of Fresno and former Fresno Mayor Lee Brand, and the County of

14 Fresno in response to Covid 19. The case is brought primarily by restaurants but includes other

15 businesses such as fitness centers. Plaintiffs intend for this matter to be a class action. Currently

16 before the Court are three motions to dismiss, one by the entities affiliated with the State of

17 California (“State Entities”), one by the entities affiliated with the County of Fresno (“County

18 Entities”), and one by entities affiliated with the City of Fresno (“City Entities”). The State and

19 City Entities filed independent motions supported by briefing. The County Entities joined the

20 State Entities’ motion. Plaintiffs opposes all of the motions.

22 I. BACKGROUND 23 A. Plaintiffs’ Complaint 24 The First Amended Complaint (“FAC”) brings suit against Gov. Newsom and California 25 Attorney General Xavier Becerra and former City of Fresno Mayor Lee Brand in their official

26 capacities, the State of California, the California Department of Alcoholic Beverages Control 27 (“CABC”), the County of Fresno, the County of Fresno Department of Public Health, and the

28 City of Fresno. In relevant part, the FAC makes the following allegations: Case 1:20-cv-01340-AWI-EPG Document 31 Filed 02/08/21 Page 2 of 39

1 In March 2020, President Trump proclaimed a state of emergency from Covid 19. On 2 March 4, 2020, Gov. Newsom issued a state of emergency due to Covid 19. On March 19, 2020,

3 Gov. Newsom issued executive order N-33-20 which inter alia mandated that all individuals in

4 California stay home or their residences except as needed to maintain continuity of operations of

5 16 federal critical infrastructure sectors. Gov. Newsom explained that the goal was to bend the

6 curve and disrupt the spread of the virus. Gov. Newsom directed the Office of Emergency

7 Services to take all necessary steps to ensure compliance with the order and that the order was to

8 be enforceable pursuant to California law. Businesses such as those owned by Plaintiffs who did

9 not fit within the 16 essential sectors were deemed “Non-Essential.” Non-essential businesses

10 were effectively ordered under penalty of fines and/or imprisonment to shut down. However,

11 business such as Target, Walmart, and Home Depot were allowed to remain open for premises

12 shopping since they were deemed to be essential. Gov. Newsom’s executive orders do not provide

13 for a pre- or post- deprivation remedy to question essential/non-essential status or to determine if

14 Plaintiffs can open with the same health related protocols as essential businesses.

15 Defendants’ orders have caused widespread and catastrophic damage to California’s 16 economy through government mandated closure of non-essential businesses. Plaintiffs have faced

17 numerous difficulties with respect to financial obligations and have been forced to lay off

18 significant numbers of employees. Plaintiffs face a real and existential threat to their survival and

19 business operations. They have laid off at least 5,000 workers and lost no less than $200 million

20 in revenue. Since the initial outbreak in February/March 2020 of Covid 19, the federal

21 government’s projections of anticipated deaths have decreased substantially. Despite the decrease,

22 Defendants have increasingly restricted, if not outright banned, Plaintiffs’ engagement of

23 constitutionally protected activities. Defendants’ orders have forced Plaintiffs through threat of

24 criminal penalties to close their indoor operations, depriving them of liberty and property interests

25 without due process. At the same time, Gov. Newsom allowed and is allowing other restaurants

26 and businesses throughout the state to remain open for indoor dining and indoor operations, even 27 though those businesses must adhere to CDC guidelines on social distancing and Plaintiffs are

28 fully capable of adhering to those same guidelines.

2 Case 1:20-cv-01340-AWI-EPG Document 31 Filed 02/08/21 Page 3 of 39

1 Defendants’ orders should be enjoined under 42 U.S.C. § 1983 because the orders: (1) 2 plainly violate the Due Process and Equal Protection Clauses of the Fifth and Fourteenth

3 Amendments since they unconstitutionally and disparately apply one set of rules to businesses

4 deemed essential versus all other businesses that are deemed non-essential, when in fact all

5 businesses are essential to the health, welfare, and wellbeing of its citizens; (2) the orders amount

6 to an impermissible partial or complete taking in violation of the Fifth Amendment’s Takings

7 Clause; and (3) the orders violate the substantive and procedural due process clauses of the Fifth

8 and Fourteenth Amendments. The orders also violate Article 1, Sections 1, 7, and 19 of the

9 California Constitution.

10 Plaintiffs allege that labeling them as non-essential is irrational, arbitrary, and capricious 11 and bears no rational basis to any valid government interest. Plaintiffs also allege that the orders

12 are not narrowly tailored to further a compelling governmental interest. Defendants have granted

13 numerous special exemptions to their bans on public gatherings, including for essential businesses,

14 provided that social distancing is observed. Since such gatherings are permitted, Defendants must

15 permit Plaintiffs to engage in such activities provided that social distancing guideline are also

16 followed.

17 From these allegations, Plaintiffs allege 6 counts. 18 Count 1 alleges a claim for Procedural Due Process under the Fourteenth Amendment. 19 Citing Sacramento v. Lewis, 523 U.S. 833, 845 (1988), Plaintiffs allege that they have a protected

20 liberty interest in the right to live without arbitrary governmental interference with their liberty

21 and property interests. Pursuant to Board of Regents of State Colleges v. Roth, 408 U.S. 564, 572

22 (1972), liberty “denotes not merely the freedom from bodily restraint but also the right of the

23 individual to contract, to engage in any of the common occupations of life, to acquire useful

24 knowledge, to marry, establish a home and bring up children, to worship God according to the

25 dictates of his own conscience, and generally to enjoy those privileges long recognized . . . as

26 essential to the orderly pursuit of happiness by free men.” Plaintiffs allege that they also have 27 protected liberty and property interests in the right to intrastate travel and to engage in commerce

28 by operating indoor dining, and those interests are being infringed by the orders. The orders at

3 Case 1:20-cv-01340-AWI-EPG Document 31 Filed 02/08/21 Page 4 of 39

1 issue provided no process before issuance and provide for no post-deprivation review. By failing

2 to provide for pre- or post-deprivation review, Plaintiffs have lost significant revenue.

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