Forest City Residential Management, Inc. v. Beasley

71 F. Supp. 3d 715, 2014 U.S. Dist. LEXIS 167532, 2014 WL 6861439
CourtDistrict Court, E.D. Michigan
DecidedDecember 3, 2014
DocketCase No. 13-14547
StatusPublished
Cited by18 cases

This text of 71 F. Supp. 3d 715 (Forest City Residential Management, Inc. v. Beasley) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forest City Residential Management, Inc. v. Beasley, 71 F. Supp. 3d 715, 2014 U.S. Dist. LEXIS 167532, 2014 WL 6861439 (E.D. Mich. 2014).

Opinion

OPINION AND ORDER DENYING DEFENDANT’S MOTION TO DISMISS (Doc. # 30) AND GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT (Doc. # 19)

SEAN F. COX, District Judge.

This is a declaratory judgment action. Plaintiff Forest City Residential Management, Inc. (“Plaintiff’ or “Forest City”) filed a Complaint for Declaratory Judgment on October 31, 2013, seeking to have this Court declare that, among other things, Defendants Lashawn Beasley (“Beasley”) and Eugene Kenyon (“Kenyon”) are not entitled to a reasonable accommodation under the Fair Housing Act and/or Rehabilitation Act to use medical marijuana in their rental units at Plaintiffs Section 8 federally assisted housing facilities. (Doc. # 1; Doc. # 16).

This matter is before the Court on Defendant Beasley’s Motion to Dismiss Pursuant to Federal Rules of Civil Procedure 12(b)(1) and (6) (Doc. # 30) and Plaintiffs Motion for Summary Judgment (Doc. # 19). The motions have been fully briefed by the parties and the Court heard oral argument on November 13, 2014. For the reasons set forth below, the Court shall DENY Defendant Beasley’s Motion to Dismiss and GRANT IN PART and DENY IN PART Plaintiffs Motion for Summary Judgment.

BACKGROUND

A. Procedural Background

Forest City filed this action against Defendants Beasley and Kenyon on October 31, 2013. Beasley, who is represented by counsel, filed an Answer to the Complaint on January 16, 2014. (Doc. # 13). Forest City filed a First Amended Complaint for Declaratory Judgment and Injunctive Relief on February 4, 2014. (Doc. # 16).

Defendant Kenyon has not answered or appeared in this action. On December 11, 2013, Forest City obtained a Clerk’s Entry of Default as to Kenyon. Forest City has not yet sought entry of a default judgment as to Kenyon.

On May 29, 2014, this Court issued another Order requiring Forest City to show cause why Kenyon should not be dismissed for failure to prosecute. (Doc. # 26). The response was due by June 12, 2014, and no response was filed. A footnote in Forest City’s Motion for Summary Judgment makes clear, however, that this lawsuit is now moot as to Kenyon because he has since vacated the apartment he occupied following eviction proceedings for assaul-tive behavior. (PI. Mo. at 2, fn 1).

Forest City manages several apartment complexes for their owners, including complexes that participate with federally-subsidized housing programs. Beasley, a resident of an apartment managed by Forest City, holds a medical marijuana card and has been smoking marijuana in her apartment. She has requested, as a reasonable accommodation under the Fair Housing Act, that she be allowed to use marijuana in her apartment. In this action, Forest City seeks the following relief:

WHEREFORE, Plaintiff prays that this Honorable Court enter a declaratory judgment that:
A) Defendants may not seek protection from eviction under the Michigan [720]*720Medical Marijuana Act for the use, sale, manufacture, possession or distribution of marijuana on premises owned or controlled by Plaintiff as long as Plaintiff elects to enforce federal law preemption and such law remains enforceable by Act of Congress;
B) The federal Controlled Substances Act preempts the Michigan Medical Marijuana Act;
C) That the use, possessipn, manufacture, sale or distribution of marijua■na in violation of the Controlled Substances Act is cause for Plaintiff to evict the tenants in violation thereof and such conduct is not exempted by the Michigan Medical Marijuana Act;
D) The request to use marijuana as an accommodation under the Fair Housing Act is not reasonable or cognizable;
E) Appropriate injunctive relief as prayed for in this Amended Complaint;
F) Plaintiff further prays for such other relief as is just and equitable following entry of Declaratory Judgment in its favor.

(First Am. Compl. at 10-11). On February 4, 2014, the parties stipulated to withdrawing the jury demand in this action. (Doc. # 17).

On March 24, 2014, Forest City filed the instant Motion for Summary Judgment. (Doc. # 19). That motion was fully briefed by the parties and oral arguments were scheduled to be heard on October 9, 2014. However, on October 6, 2014, Defendant filed a Motion to Dismiss Pursuant to Fed. R.Civ.P. 12(b)(1) and (6), challenging Plaintiffs standing to maintain this suit, arguing that the Court should decline to intervene in what she characterizes as a landlord-tenant issue, and arguing that Plaintiff has failed to state a claim upon which relief may be granted. The motion cut-off date in this case was March 24, 2014. Nonetheless, because standing is an issue touching upon subject matter jurisdiction and can be raised at any time, the Court found it appropriate to consider Defendant’s motion on the merits.

B. Factual Background

The underlying facts of this case are largely undisputed.

Beasley was diagnosed with Multiple Sclerosis in April of 2009. (Beasley Affidavit, attached as Ex. D to Pl.’s Br.). Her income is Supplemental Security Income (“SSI”) based on her disability of Multiple Sclerosis. (PI. Br. at Ex. D).

Beasley’s physician prescribed medicinal marijuana to help with her symptoms of Multiple Sclerosis. (PI. Br. at Ex. D). Beasley obtained a Medical Marijuana card issued by the State of Michigan pursuant to the Michigan Medical Marihuana Act. (PI. Br. at Ex. D; see also Ex. 3 to PL’s Br.).

Forest City is a management company that manages apartment complexes. Beasley entered into a Lease Agreement with Forest City on February 6, 2013 to occupy a townhome apartment at Plymouth Square Village in the City of Detroit. (PI. Stmt, of Undisputed Facts at ¶ 1; Def.’s' Response to Same at ¶ 1; see also Lease Agreement, attached as Ex. A to Pl.’s motion).

Plymouth Square is a project-based, Section 8, federally assisted housing complex. Plymouth Square receives a portion of Beasley’s monthly rent in the form of a subsidy from the United States Department of Housing and Urban Development (“HUD”) via the Michigan State Housing and Development Authority. (Lake Affidavit, attached as Ex. C to PI. Br.; Lease Agreement, Ex. A to PL Br., at ¶ 3).

[721]*721The Lease Agreement and Lease Addendum are regulated by HUD. (Pl. Br. at 1). The Lease Agreement provides that the landlord, Forest City, “may” terminate the agreement for various reasons, including:

(4) Drug-related criminal activity engaged in on or near the premises by any Resident, household member, or guest, or any such activity engaged in on the 'premises by any other person under the Resident’s control;
(9) If the landlord determines that the Resident, any member of the Resident’s household, a guest or another person under the Resident’s control has engaged in the criminal activity, regardless of whether the Resident, any member of the Resident’s household, a guest or another person under the Resident’s control has been arrested or convicted for such activity.

(Pl. Br., Ex.

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Cite This Page — Counsel Stack

Bluebook (online)
71 F. Supp. 3d 715, 2014 U.S. Dist. LEXIS 167532, 2014 WL 6861439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forest-city-residential-management-inc-v-beasley-mied-2014.