Embassy Realty Investment, LLC v. City of Cleveland

877 F. Supp. 2d 564, 2012 WL 2600368, 2012 U.S. Dist. LEXIS 93053
CourtDistrict Court, N.D. Ohio
DecidedJuly 5, 2012
DocketCase No. 1:11CV1545
StatusPublished
Cited by13 cases

This text of 877 F. Supp. 2d 564 (Embassy Realty Investment, LLC v. City of Cleveland) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Embassy Realty Investment, LLC v. City of Cleveland, 877 F. Supp. 2d 564, 2012 WL 2600368, 2012 U.S. Dist. LEXIS 93053 (N.D. Ohio 2012).

Opinion

MEMORANDUM OPINION & ORDER

SARA LIOI, District Judge.

Before the Court is defendants’ motion to dismiss the Complaint. (Doc. No. 4.) Plaintiffs oppose the motion (Doc. No. 8), and defendants have replied. (Doc. No. 10.) Plaintiffs have filed a motion to strike the materials attached to defendants’ motion, or, in the alternative, to convert the motion to dismiss to a motion for summary judgment. (Doc. No. 7.) This motion is opposed, as well. (Doc. No. 9.) Both motions are fully briefed and ripe for disposition.

I. BACKGROUND

The focal point of this action is a piece of commercial property located in Cleveland, Ohio. On December 8, 2008, plaintiff Embassy Realty Investments, LCC (“Embassy”) purchased the property from plaintiff John Barnes, Jr. (“Barnes”), who had previously obtained the property from Southeast Cleveland Church of Christ, Inc. (“the Church”). Barnes is a shareholder of Embassy.

A rather long and torturous procedural and administrative history surrounds the property, and the Court will only provide as much background as necessary to place the pending motions in proper context. On July 13, 1998, while the property was still owned by the Church, the Department of Community Development, Division of Building and Housing for defendant City of Cleveland (“the City”), issued a notice of violation of housing ordinances for the property, and condemned it. (BBS Docket A-141-09, Doc. No. 4-6, Page ID #213; Complaint at ¶ 11, Doc. No. 1.) The notice was served upon the Church, with the administrative right to appeal the notice to the City’s appeals boards. (Page ID # 213.)

In their Complaint, plaintiffs allege that the 1998 notice was defective “on both procedural and substantive grounds” and was “not properly recorded so that subsequent purchasers could properly ascertain the condition of the property. Further defendant City of Cleveland took no further action on the condemnation from 1998 until 2007.” (Compl. at ¶ 11.) Because of the alleged deficiencies and lack of action on the part of the City, Barnes’s title search in 2005 did not uncover the City’s notice of violation, and Barnes purchased the property unaware that it had been condemned. (Id. at ¶ 10.)

In 2007, Barnes hired a licensed architect to prepare plans to remodel the building located on the property. He submitted the plans to the City’s Department of Building and Housing in order to obtain construction permits, and contracted with plaintiff Captain Buffalo Foods, Inc. [568]*568(“Captain Buffalo”) to construct and operate a coffeehouse and business offices in the building. (Id. at ¶¶ 12-14.) On May 2, 2007, the City issued a building permit for the building, which was later revoked due to the 1998 violations notice. (Compl. at ¶ 15.)

On January 9, 2007, the City’s Department of Building and Housing performed an inspection of the property. (Record of Cleveland Municipal Court, Case No. 2007 CRB 7418, Citation, Page ID # 522.)1 Based upon that inspection, on January 10, 2007, the Department of Building and Housing, Division of Code Enforcement, issued a second notice for building code violations at the property. (Id., Page ID # 523.) The notice included a stop work order for illegally constructing a second floor onto the building without proper plan approvals and building permits. (Id., Page ID # 524.)

On March 15, 2007, the City instituted a criminal prosecution against Barnes in Cleveland Municipal Housing Court. (Id., Page ID # 519.) After the criminal complaint was amended to replace Captain Buffalo as the defendant, Captain Buffalo entered a no contest plea to a building code violation. Captain Buffalo was ordered to pay a fíne of $25,000. (Id., Judgment, Page ID # 533-34.)

According to the Complaint, “[f]rom 2007 until 2009 plaintiff Barnes attempted to work with the City to resolve the outstanding building permit issues.” (Compl. at ¶ 16.) Defendants’ motion chronicles Barnes’s various administrative requests for permits and the denials of these requests, multiple appeals of administrative orders, and a request for a temporary restraining order to prevent the City from demolishing the building, culminating in an evidentiary hearing, on August 5, 2009, before the Cleveland Board of Building Standards and Building Appeals (“local BBS/BA”) to resolve the demolition issue. (BBS Docket A-141-09, Doc. No. 4-5, Page ID # 193.) Defendant Denk chaired the hearing. (Id., Page ID # 194.)

At the conclusion of the hearing, the local BBS/BA issued an emergency resolution remanding the matter to the City’s Building Department. (Id. at 208-209; BBS/BA Docket A-141-09, Doc. No. 4^6, Page ID # 301-02.) The Building Department began demolition of the building on the property at once, but its efforts were blocked by a successful request by Barnes for a temporary restraining order. After the restraining order was dissolved, the Building Department completed its demolition work on the property and the building was razed on July 27, 2009. (Compl. at ¶ 21.)

On August 26, 2011, plaintiffs, Embassy Realty Investments (“Embassy”), Barnes, and Captain Buffalo, filed the present action. They allege that defendants, the City, Edward Rybka, Ronald O’Leary, Timothy Wollis, Joseph Denk Sr., David Cooper, and Peter Stewart,2 violated their constitutional rights, including: (1) the right to due process under the Fourteenth Amendment; (2) the Fourth Amendment right to be free from unreasonable search and seizure; and (3) the Fifth Amendment right to be free from unlawful taking of property. Plaintiffs also brought a Monell claim against the City, alleging that the City’s [569]*569action in razing the building constituted an illegal policy and practice.

In the Complaint, plaintiffs allege that they appealed the final decision of the BBS/BA to the Cuyahoga County Common Pleas Court, and that “while the appeal was pending, and without any further court orders, warrants or permission from any entity, including plaintiffs,” defendants illegally caused the building to be razed. (Compl. at ¶ 21.) Plaintiffs seek damages, as well as declaratory and injunctive relief. (Id., Page ID # 9.)

II. STANDARD OF REVIEW

The gravamen of defendants’ motion to dismiss is that the Rooker-Feldman and Heck doctrines serve to divest this Court of jurisdiction. Defendants also seek absolute judicial immunity for defendant Denk. Though defendants do not indicate the basis for their motion, it is apparent that the present motion is brought under Rule 12(b)(1) of the Federal Rules of Civil Procedure. Because the motion also tests the legal and factual sufficiency of the Complaint allegations, principles applicable to Rule 12(b)(6) motions are also relevant. The Court will address each standard.

A. Rule 12(b)(1)

Motions to dismiss under Rule 12(b)(1) for lack of subject matter jurisdiction fall into two categories: facial attacks and factual attacks. United States v. Ritchie, 15 F.3d 592, 598 (6th Cir.1994). A facial attack goes to whether the plaintiff has properly alleged a basis for subject-matter jurisdiction, and the trial court takes the allegations of the complaint as true. Ohio Nat’l Life Ins. Co. v. United States, 922 F.2d 320, 325 (6th Cir.1990).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
877 F. Supp. 2d 564, 2012 WL 2600368, 2012 U.S. Dist. LEXIS 93053, Counsel Stack Legal Research, https://law.counselstack.com/opinion/embassy-realty-investment-llc-v-city-of-cleveland-ohnd-2012.