DJCBP Corporation v. City of Baldwin Park

District Court, C.D. California·Decided June 24, 2024·No. 2:23-cv-00384·Unknown

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ No. 2:23-cv-00384-CAS (PVCx) Date June 24, 2024 Title DJCBP CORPORATION, ET AL. V. CITY OF BALDWIN PARK, ET AL.

Present: The Honorable CHRISTINA A. SNYDER Catherine Jeang Deborah Parker N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: David Torres-Siegrist Kellen Davis Proceedings: ZOOM HEARING ON MOTION TO DISMISS ANTHONY WILLOUGHBY II’S FIRST AMENDED COUNTER-COMPLAINT (Dkt. 118, filed on MAY 16, 2024) I. INTRODUCTION AND BACKGROUND The facts of this case are well-known to the parties and set forth in the Court’s March 15, 2024 order. Dkt. 91. On January 18, 2023, plaintiffs DJCBP Corporation d/b/a/ Tier One Consulting (“Tier One Consulting’) and David Ju initiated this action against defendants City of Baldwin Park (the “City”); Robert Nacionales Tafoya, former Baldwin Park City Attorney; Anthony Willoughby II (“Willoughby”), former Baldwin Park Deputy City Attorney; Ricardo Pacheco, former Baldwin Park City Council member; Isaac Galvan, former Mayor of the City of Compton; Lourdes Morales, former Baldwin Park Deputy City Clerk; Manuel Lozano, former Baldwin Park Mayor: and Does 1 through 50, inclusive. Dkt. 1. On February 10, 2023, defendant Willoughby filed a motion to dismiss plaintiffs’ complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). Dkt. 12. On February 23, 2023, the City filed a motion to dismiss plaintiffs’ complaint. Dkt. 14. On March 23, 2023, the Court granted the City’s motion to dismiss, finding that plaintiffs had failed to meet the pleading standards set forth in Federal Rule of Civil Procedure 8(a). Dkt. 20. The Court granted plaintiffs leave to amend within thirty days. Id. On April 14, 2023, the Court denied defendant Willoughby’s motion to dismiss as moot. Dkt. 24. On April 23, 2023, plaintiffs filed a first amended complaint (the “FAC”). Dkt. 25. On July 7, 2023, the City filed an answer. Dkt. 26. On July 13, 2023, the City filed a

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ No. 2:23-cv-00384-CAS (PVCx) Date June 24, 2024 Title DJCBP CORPORATION, ET AL. V. CITY OF BALDWIN PARK, ET AL.

motion for judgment on the pleadings pursuant to Federal Rule of Civil Procedure 12(c). Dkt. 27. On July 16, 2023, defendant Willoughby filed a motion to dismiss the FAC. Dkt. 29. On August 3, 2023, the Court denied the City’s motion for judgment on the pleadings without prejudice as premature. Dkt. 33. On August 28, 2023, the Court granted defendant Willoughby’s motion to dismiss with twenty-one days’ leave to amend. Dkt. 37. On August 31, 2023, defendants Lozano, Morales, and Pacheco filed a motion to dismiss. Dkt. 38. On September 7, 2023, defendants the City, Lozano, Morales, and Pacheco filed a stipulation to file responsive pleadings to the second amended complaint twenty-one days after its service and withdrew the August 31, 2023 motion to dismiss. Dkt. 40. On September 8, 2023, the Court approved the stipulation. Dkt. 42. On September 18, 2023, plaintiffs filed a second amended complaint (the “SAC”). Dkt. 43. On September 29, 2023, defendant Morales filed a motion to dismiss and to strike. Dkt. 46. On October 8, 2023, defendant Willoughby filed a motion to dismiss the SAC. Dkt. 47. On October 9, 2023, defendants Lozano and Pacheco filed a joint motion to dismiss and to strike. Dkt. 48. That same day, the City filed a motion to dismiss and to strike. Dkt. 49. On November 27, 2023, the Court held a hearing and granted 1n part and denied in part defendants’ motions to dismiss and defendants’ motions to strike. Dkt. 66. The Court denied Morales’ request for sanctions and permitted plaintiffs to file a third amended complaint. Id. On December 22, 2023, plaintiffs filed a third amended complaint (the “TAC’”). Dkt. 70. The TAC names the same defendants and asserts claims for (1) writ of mandate against the City and request for preliminary injunction; (2) inverse condemnation/Fifth Amendment Takings Clause violation brought pursuant to 42 U.S.C. § 1983, as against all individual defendants except Galvan; (3) Monell liability pursuant to 42 U.S.C. § 1983, as against the City; (4) negligence, as against all defendants; (5) fraud, as against all defendants; and (6) a claim for declaratory relief. Id. On January 17, 2024, plaintiffs and defendants the City, Lozano, Morales, Pacheco, and Tafoya filed a stipulation to strike paragraphs 31-33, 54-56, 28, and 377- 394 of the TAC. Dkt. 71. On January 19, 2024, the Court granted the stipulation and ordered that the aforementioned paragraphs be stricken from the TAC and not referred to by any party in this action. Dkt. 78. On January 18, 2024, defendant Morales filed a motion to dismiss and to strike. Dkt. 72. On January 19, 2024, the City filed a motion to dismiss and to strike. Dkt. 73. That same day, defendant Willoughby filed a motion to dismiss the TAC. Dkt. 74. Defendants Lozano and Pacheco filed a joint motion to

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘O’ No. 2:23-cv-00384-CAS (PVCx) Date June 24, 2024 Title DJCBP CORPORATION, ET AL. V. CITY OF BALDWIN PARK, ET AL.

dismiss and to strike. Dkt. 75. Defendant Tafoya also filed a motion to dismiss and to strike. Dkt. 76. On March 15, 2024, the Court granted in part and denied in part defendants’ motions to dismiss and defendants’ motions to strike. Dkt. 91. The Court granted defendants’ motions to dismiss plaintiffs’ claim for inverse condemnation and claim for Monell liability, with prejudice; retained supplemental jurisdiction over plaintiffs’ remaining state law claims pursuant to 28 U.S.C. § 1367; and denied defendants’ motions to dismiss plaintiffs’ claim for fraud and claim for negligence. Id. The Court also dismissed plaintiffs’ first claim for a writ of mandate against the City and request for a preliminary injunction without prejudice. Id. Finally, the Court denied defendants’ requests for sanctions, but reserved judgment on sanctions for decision at the conclusion of the case. Id. On March 28, 2024, the City filed a cross-complaint against plaintiffs Tier One Consulting, David Ju, and Roes 1 through 10, inclusive. Dkt. 97. On April 3, 2024, the Court struck the City’s cross-complaint based on the Notice to Filer of Deficiencies, dkt. 102, and ordered the City to file an Amended Counterclaim. Dkt. 104. On April 4, 2024, the City filed a first amended counterclaim against plaintiffs. Dkt. 106. The City asserts four claims for relief: (1) breach of contract; (2) breach of the covenant of good faith and fair dealing; (3) fraud in the inducement of contract; and (4) unjust enrichment. Id. The City also requests a temporary restraining order (“TRO”) and preliminary injunction, pending the resolution of this litigation. Id. On March 29, 2024, Willoughby filed a cross-complaint against plaintiffs Tier One Consulting, David Ju, and Roes 1 through 50. Dkt. 99. On April 4, 2024, the Court struck Willoughby’s cross-complaint based on the Notice to Filer of Deficiencies, dkt. 105, and ordered Willoughby to file a Counterclaim. Dkt. 107.

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