Howell v. Yale University

District Court, D. Connecticut·Decided September 26, 2023·No. 3:22-cv-01160·Unknown

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF CONNECTICUT

: TODD HOWELL, and : CIVIL CASE NO. N.E.S.A.I.M., LLC : 3:22-CV-01160 (JCH) Plaintiffs, : : v. : : YALE UNIVERSITY, : SEPTEMBER 26, 2023 Defendant. : :

RULING ON DEFENDANT’S PARTIAL MOTION TO DISMISS (DOC. NO. 12)

I. INTRODUCTION Plaintiffs Todd Howell (“Mr. Howell”) and N.E.S.A.I.M., LLC (“N.E.S.A.I.M.”) bring this action against Yale University (“Yale” or “the University”), alleging, breach of contract, breach of implied covenant of good faith and fair dealing, violation of 42 U.S.C. § 1981, violations of the federal and state constitutions, and intentional infliction of emotional distress. See Compl. (Doc. No. 1). Yale moves to dismiss the plaintiffs’ Equal Protection, Due Process, and intentional infliction of emotional distress claims. See Partial Mot. to Dismiss (Doc. No. 12); Mem. of Law in Support of Partial Mot. to Dismiss (“Mem.”) (Doc. No. 13); Reply to Opp. to Partial Mot. to Dismiss (“Reply”) (Doc. No. 16). Plaintiffs oppose this Motion. See Obj. to Def.’s Partial Mot. to Dismiss (“Obj.”) (Doc. No. 14). For the reasons discussed below, the court grants in part and denies in part the Partial Motion to Dismiss. II. BACKGROUND N.E.S.A.I.M. “is a minority owned domestic limited liability company” that provides snow and ice removal services. Compl. at 1, ¶¶ 2, 6. Mr. Howell “is a [B]lack, African-American small business owner, and a principal in the plaintiff N.E.S.A.I.M..” Id. at ¶ 4. Joseph Signore (“Mr. Signore”) is “the Supervisor of Landscaping and

Maintenance Services” at Yale. Id. at ¶¶ 10-11. The plaintiffs allege, and the University does not contest, that Mr. Signore is an agent of the University and “his actions were undertaken in furtherance of his role as Supervisor . . .” Id. at ¶ 11. On or about November 20, 2019, the plaintiffs entered into a contract with Yale to provide the University with snow and ice removal services. Id. at ¶ 6. On or about November 29, 2019, Mr. Signore met with the plaintiffs and other N.E.S.A.I.M. personnel. Id. at ¶¶ 9-11. At this meeting, Mr. Signore allegedly became aware that Mr. Howell was involved with N.E.S.A.I.M. and the contract at issue. Id. at ¶ 13. The plaintiffs allege that Mr. Signore “expressed his distaste” for Mr. Howell “as a minority contractor,” “direct[ing] his hatred” at Mr. Howell. Id. at ¶¶ 14, 17. They further allege

that Mr. Signore additionally expressed his dislike of minority contractors and employees in general, naming other Black contractors by name, and that these sentiments were based on the contractors’ race. Id. at ¶ 17. Mr. Signore allegedly made the following representations: “[L]ike all other [B]lack minority contractors, N.E.S.A.I.M. would not have adequate or proper tools to do the contracted for job, would not have sufficient employees, would use improperly or undocumented employees, and would add employee numbers to the balance sheets”; “[B]lack minority contractors, including the plaintiff N.E.S.A.I.M., performed horribly”; and that “he hates dealing with minority owned businesses.” Id. at ¶¶ 15-16. Following these remarks, Mr. Signore refused to honor the ice and snow removal contract. Id. at ¶ 18. The plaintiffs allege that “his hatred of minority contractors trumped” his acknowledgment of “the plaintiffs’ extensive experience” and completion of “$60,000,000.00 in snow removal.” Id. at ¶¶ 18, 19. The plaintiffs initiated this suit just over eight months later on August 7, 2022, in

the Judicial District of New Haven of the Superior Court of Connecticut. See Notice of Removal (Doc. No. 1). Yale removed the action to this court on September 14, 2022. Id. Yale moved to dismiss Counts Four and Five of the plaintiffs’ Complaint on September 20, 2022. See Partial Mot. to Dismiss. For the reasons set forth below, the court grants in part and denies in part Yale’s Partial Motion to Dismiss. III. STANDARD OF REVIEW To withstand a motion to dismiss under Federal Rule of Civil Procedure 2(b)(6) (“Rule 12(b)(6)”), “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662,

678 (2009) (quoting Bell Atl. Corp v. Twombly, 550 U.S. 544, 570 (2007)). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. Reviewing a motion to dismiss under Rule 12(b)(6), the court liberally construes the claims, accepts the factual allegations in a Complaint as true, and draws all reasonable inferences in the nonmovant’s favor. See La Liberte v. Reid, 966 F.3d 79, 85 (2d Cir. 2020). However, the court does not credit legal conclusions or “[t]hreadbare recitals of the elements of a cause of action.” Iqbal, 556 U.S. at 678. IV. DISCUSSION A. Equal Protection and Due Process In Count Four, the plaintiffs claim that Yale’s conduct violated the Due Process and Equal Protection Clauses of the United States and Connecticut Constitutions. See Compl. at 4, ¶ 21. In order to subject private actors to liability for violations of the Fourteenth Amendment, their actions must be attributable to the state. See Brentwood

Acad. v. Tenn. Secondary Sch. Athletic Ass’n, 531 U.S. 288, 295-97 (2001). The Supreme Court has “identified a host of facts that can bear on the fairness of such attribution.” Id. at 296. To name just a few examples, [the Court has] held that a challenged activity may be state action when it results form the state’s exercise of ‘coercive power,’ when the State provides ‘significant encouragement, either overt or cover,’ or when a private actor operates as a ‘willful participant in joint activity with the State or its agents.’” Id. (internal citations omitted). Accordingly, no single test has emerged to determine who is a state actor or what conduct constitutes state action. See id. at 296-97. The only allegation in the Complaint that implicates state action is the plaintiff’s

claim that Yale receives federal funds and participates in federal programs. See Compl. at 1, ¶ 5. Nonetheless, Yale essentially argues that, even if plaintiffs had proffered alternative claims, the University would not be deemed a state actor for the purposes of the Fourteenth Amendment. See Mem. at 9-15. The University significantly relies on Hack v. President & Fellows of Yale Coll., where this court concluded that: (1) Yale was not a state actor under the test set forth in Lebron v. National R.R. Pass. Corp., 513 U.S. 374 (1995); (2) Yale’s status as a recipient of state and federal funding, alone, was insufficient for its conduct to constitute state action; and (3) the University’s housing policy at issue “[could] not fairly be attributed to the State of Connecticut” under the public function analysis. See Mem. at 9-15 (citing 16 F. Supp. 2d 183 (D. Conn. 1998), aff’d, 237 F.3d 81 (2d Cir. 2000)). Yale argues that all three grounds are dispositive in the instant case.1 See Mem. at 10-15. In their Objection, the plaintiffs principally object to Yale’s reliance on the first and

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