Elsmere Park Club, L.P. v. Town of Elsmere

542 F.3d 412, 2008 U.S. App. LEXIS 19222, 2008 WL 4138457
CourtCourt of Appeals for the Third Circuit
DecidedSeptember 9, 2008
Docket07-1821
StatusPublished
Cited by84 cases

This text of 542 F.3d 412 (Elsmere Park Club, L.P. v. Town of Elsmere) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elsmere Park Club, L.P. v. Town of Elsmere, 542 F.3d 412, 2008 U.S. App. LEXIS 19222, 2008 WL 4138457 (3d Cir. 2008).

Opinion

OPINION OF THE COURT

AMBRO, Circuit Judge.

We decide whether the Town of El-smere, Delaware, violated Elsmere Park Club’s procedural due process rights under the Fourteenth Amendment to our Constitution when the Town condemned the Club’s apartment complex without offering a predeprivation hearing. We hold that the Town did not run afoul of the Constitution because postdeprivation process was all that was required given the circumstances of this case. Because the Town provided adequate postdeprivation process by way of an administrative appeal, and the Club failed to avail itself of that process, we affirm the District Court’s grant of summary judgment against the Club.

I. Facts

The Club is the former owner of the Elsmere Park Apartments (“Apartments”). The Apartments are a complex of thirty-nine buildings, arranged in nine separate groups. They contain a total of 156 garden-style apartments, including one basement unit in each of the thirty-nine buddings. After severe flooding from Hurricane Hugo in 1989, the Town prohibited the Club from renting out its basement apartments, but allowed continued use of the above-ground units. The Club then boarded up the basement apartments with plywood. In 1996, after increasing incidents of vandalism, the Town instructed the Club to brick over the basement *415 windows and seal the basement apartments.

All was relatively quiet between the Town and the Club between 1996 and 2002. Then, on Tuesday, October 1, 2002, while conducting a routine pre-rental inspection of the Apartments, the Town’s Code Inspector, Ellis Blomquist, detected a strong smell of mold. Blom-quist returned to the Apartments on Friday, October 4, with Kenneth Belmont, a representative from the State of Delaware Department of Public Health. They inspected two of the sealed basement units and found mold, water leaks, and raw sewage, amounting to various violations of the Elsmere Town Building Code. After observing the mold, Blom-quist and Belmont sought the advice of Gerald Llewellyn, Chief Toxicologist for the State of Delaware. Llewellyn concluded that the conditions in the basements posed a serious health threat to the buildings’ residents due to what he saw as the likelihood that mold spores were migrating up to the occupied units through openings such as pipe chases and ventilation ducts. Together, Llewellyn and Belmont recommended that the two buildings be condemned and vacated immediately. Blomquist agreed, and, after informing the Apartment’s on-site manager (Darlene Groki) of his decision, proceeded to condemn the buildings and vacate the residents.

On Monday, October 7, the inspections of the basements resumed. 1 Blomquist, Belmont, Llewellyn and George Yocher, an environmental epidemiologist for the State of Delaware, proceeded to go through the remaining basements, along with several stairways and some unoccupied apartments, condemning each building they inspected. By Thursday, October 10, 2002, every building except the one housing the complex’s rental management office had been condemned. It appears that no time in the Town’s inspection did it examine any occupied apartments, and the record does not note what category of mold was present in the basements.

As the condemnations were occurring, the Club filed a motion for a temporary restraining order in the Delaware Court of Chancery, asserting, inter alia, that the Town had effected an unconstitutional taking by condemning the thirty-eight buildings without compensating the Club. After a hearing, the Chancery Court denied relief. In so holding, the Court found that the Town had been justified in invoking its emergency powers to condemn the property. 2

At the end of October 2002, the Club notified the Town that it intended to appeal the condemnation of the Apartments. It sent a letter to the Town asking for a hearing before the “Board of Building Appeals,” which was listed in the Elsmere Town Code as the appropriate body for hearing such appeals. In correspondence with the Town Solicitor, the Club was told that the Town actually referred to its appellate body as the Board of Adjustment. The Town Solicitor explained that the “Board of Building Appeals” reference came from a code section that had been borrowed from the National Building Code and incorporated into the Town’s Code without being adjusted to reflect the *416 Town’s particular usage. In January 2003, the Club and the Town Solicitor executed an agreement to stay the Club’s administrative appeal, and the Club, by its own admission, “abandoned its administrative appeal.” Club’s Br. 13. In April 2003, the Club sold the Apartments at a fire-sale price.

A year and a half later, the Club brought an action under 42 U.S.C. § 1983 in the United States District Court for the District of Delaware against the Town and several of its agents. In its complaint, the Club alleged that the Town deprived it of due process when the Town condemned and evacuated the Apartments without first affording the Club the opportunity for a hearing or the chance to cure the alleged code violations. The Town later filed a motion for summary judgment, asserting that exigent circumstances justified its failure to give the Club a predeprivation hearing and that the Club had failed to avail itself of the Town’s postdeprivation procedure.

The District Court concluded that the Town “failed to present sufficient evidence of exigent circumstances to justify the absence of any pre-deprivation due process [rights].” Elsmere Park Club, L.P. v. Town of Elsmere, 474 F.Supp.2d 638, 647 (D.Del.2007). The Court found it significant that Blomquist and other Town representatives made the decision to condemn the apartments without first inspecting any of the occupied units or taking air samples. Id. Moreover, it noted that “the record contains no evidence that any residents actually complained of, or suffered from, mold-related ailments or conditions in their units.” Id. As such, the Court concluded that Town had violated the Club’s due process rights in not offering a predeprivation opportunity to oppose the condemnation. Id. at 649.

Despite having found a procedural due process violation, the Court went on to conclude that the Club was ineligible for relief because it had failed to avail itself of the Town’s postdeprivation hearing procedure. Id. at 649-650 (citing Alvin v. Suzuki 227 F.3d 107, 116 (3d Cir.2000), for the proposition that a plaintiff alleging a procedural due process violation must have taken advantage of all available local process in order to claim a constitutional injury). It therefore entered summary judgment in favor of the Town. Elsmere, 474 F.Supp.2d at 650. The Club appeals.

II. Jurisdiction and Standard of Review

The District Court had jurisdiction under 28 U.S.C. § 1331. We have jurisdiction pursuant to 28 U.S.C.

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542 F.3d 412, 2008 U.S. App. LEXIS 19222, 2008 WL 4138457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elsmere-park-club-lp-v-town-of-elsmere-ca3-2008.