H.D v. - Greektown, LLC v. City of Detroit

660 F. App'x 375
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 23, 2016
Docket15-1449
StatusUnpublished
Cited by5 cases

This text of 660 F. App'x 375 (H.D v. - Greektown, LLC v. City of Detroit) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H.D v. - Greektown, LLC v. City of Detroit, 660 F. App'x 375 (6th Cir. 2016).

Opinion

*378 OPINION

ANDRE M. DAVIS, Senior Circuit Judge.

This appeal arises from a First Amendment action that concerned efforts by Ap-pellee, the City of Detroit, Michigan (the “City”), to thwart the sale and continuing operation of an adult entertainment nightclub in downtown Detroit. After years of litigation, culminating in a previous appeal to this Court that effectively resolved the merits issues, the district court entered a consent decree awarding $2.95 million in damages to Appellants H.D.V. - Greek-town, LLC (“H.D.V.”); 415 East Congress, LLC (“415 E. Congress”); and K and P, Incorporated (“K & P”). Appellants then sought over $1.5 million in attorneys’ fees and costs. After concluding that Appellants could not recover certain fees, the district court reduced the remaining requested fees by 60%. It declined to grant a fee enhancement and also imposed a 3% cap on the fees incurred by Appellants’ counsel while litigating the attorneys’ fees motion, ultimately awarding in fees and costs $385,401.12.

Appellants now challenge each of those decisions on appeal. They also ask us to assign this case to a different district judge on remand. We agree with Appellants that the district court did not adequately explain why a 60% reduction was appropriate. Moreover, the award of fees for fees must be recalculated given our decision in The Northeast Ohio Coalition for the Homeless v. Husted, Nos. 14-4083, 14-4084, 14-4132, 14-4133, 15-3295, 15-3296, 15-3380, 15-3381, 831 F.3d 686, 2016 WL 4073489 (6th Cir. Aug. 1, 2016) (published). In all other respects, we discern no error or abuse of discretion. Accordingly, we AFFIRM IN PART, REVERSE IN PART, and REMAND for further proceedings. Appellants’ request for reassignment on remand is DENIED.

I. BACKGROUND

We described the lengthy background of this litigation in the earlier merits appeal. See H.D.V.-Greektown, LLC v. City of Detroit, 568 F.3d 609, 613-16 (6th Cir. 2009). The relevant facts for the purposes of the attorneys’ fees motion are as follows.

A. The 2003 Action

K & P has operated a topless nightclub in downtown Detroit since 1986, in a building now owned by 415 E. Congress. In December 2002, H.D.V. entered a conditional agreement to purchase the nightclub and applied for a transfer of K & P’s liquor license and topless activity permit. Hoping to frustrate the purchase, the City refused to consider the transfer applications, asserting that the nightclub’s continuing use of topless female dancers had violated a condition of land use known as “Condition 18,” which limited K & P to providing male-only adult entertainment. In 2003, Appellants filed suit in the Eastern District of Michigan, asserting that Condition 18 violated their First Amendment rights (the “2003 Action”). The parties eventually settled the dispute and stipulated that Condition 18 was unenforceable. The parties also stipulated that the dismissal of the 2003 Action was “without an award of costs or attorneys[’] fees to any party.” R. 84-5 2d Am. Compl. Ex. A ¶ 10 (Page ID # 2513). Accordingly, in December 2003, the district court entered an order declaring that the City could not enforce Condition 18 and stating that “all claims in this action are dismissed without prejudice and without costs or an award of attorneysf] fees to any party.” R. 84-6 2d Am. Compl. Ex. B, at 3 (Page ID # 2517).

Despite the district court order, three years passed without any action on the transfer applications by the City. The City *379 Council had instead passed resolutions ostensibly designed to make it more difficult for K & P to sell or operate its nightclub, including resolutions that prohibited the transfer of licenses or permits for businesses that operated with a nonconforming use. The City then issued K & P two zoning violation notices, both alleging that K & P had expanded the nonconforming use of its nightclub. K & P appealed the notices to the Board of Zoning Appeals (“BZA”) where, despite the 2003 court order, the City continued to assert that it could enforce Condition 18. The BZA dismissed the first violation notice and unanimously ruled in favor of K & P as to the second violation notice.

B. The 2006 Action

Appellants filed their second suit—the operative one here—in the Eastern District of Michigan in March 2006 (the “2006 Action”). At the time, the City still had not acted on Appellants’ transfer applications. In a sprawling, 109-page complaint. that asserted 16 counts over 291 paragraphs, Appellants brought facial and as-applied constitutional challenges to the City’s zoning and sign ordinances.

Appellants amended the complaint in April 2008, explaining that the “amend[ment] does not seek to add new counts, or new causes of action[ ], but rather seeks only to add additional Plaintiffs,” namely, four Jane Roe Plaintiffs “who have performed at [K & P’s] club.” R. 46 Pis.’ Mot. Leave to File 1st Am. Compl. ¶ 3 (Page ID # 1447). The Jane Roe Plaintiffs were added as representatives of a puta-five class of similarly situated employees. Appellants amended the complaint a second time on May 11, 2009, “to add additional facts to support a count that already exists in the current complaint”—the as applied challenge to the City’s zoning ordinances. R. 81 Pis.’ Mot. Leave to File 2d Am. Compl. ¶ 4 (Page ID # 2230). Specifically, Appellants amended the complaint to include allegations that then-City Council member Monica Conyers had solicited a $26,000 bribe from Appellants in exchange for her vote in favor of the transfer applications. The amendments added 29 pages and 16 paragraphs to the operative complaint but no additional causes of action.

In January 2007, Appellants filed a motion for partial summary judgment 1 challenging the City’s zoning ordinances. 2 See H.D.V.-Greektown, LLC v. City of Detroit, No. 06-11282, 2007 WL 2261418, at *1 (E.D. Mich. Aug. 6, 2007). The motion was largely successful. The district court concluded that the zoning ordinances, which gave the City broad discretion to regulate adult businesses, impermissibly imposed prior restraints on protected speech. It also found that the zoning ordinances violated the First Amendment because they “provide[d] no limitations of time upon the reviewing authorities to render an official approval or disapproval.” Id. at *5. Rather than enjoin the City from enforcing the provisions, however, the district court directed the City to revise the zoning ordinances to comply with the First Amendment.

In April 2007, Appellants filed another motion for partial summary judgment, this *380 one challenging the City’s sign ordinances. See H.D.V.-Greektown, LLC v. City of Detroit, No. 06-11282, 2008 WL 441487, at *1 (E.D. Mich. Feb. 14, 2008), aff'd in part and rev’d in part,

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Bluebook (online)
660 F. App'x 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hd-v-greektown-llc-v-city-of-detroit-ca6-2016.