HP Sanford, LLC v. Village of Sanford

CourtDistrict Court, E.D. Michigan
DecidedMay 9, 2023
Docket2:22-cv-12175
StatusUnknown

This text of HP Sanford, LLC v. Village of Sanford (HP Sanford, LLC v. Village of Sanford) 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
HP Sanford, LLC v. Village of Sanford, (E.D. Mich. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

HP SANFORD, LLC,

Plaintiff, Civil Case No. 22-12175 v. Honorable Linda V. Parker

VILLAGE OF SANFORD,

Defendant. __________________________/

OPINION AND ORDER GRANTING DEFENDANT’S MOTION TO DISMISS AND DENYING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

This lawsuit arises from the Village of Sanford’s handling of permit applications required to operate Marijuana Establishments within its borders, which were filed by Plaintiff HP Sanford LLC (“Plaintiff”) and Village resident Sue LaBonville. The Village of Sanford (“Village”) approved LaBonville’s applications and denied Plaintiff’s. On September 13, 2022, Plaintiff filed a Complaint against the Village asserting: (I) violations of substantive and procedural due process under the Fourteenth Amendment to the United States Constitution; (II) a “class-of-one” claim under the Equal Protection Clause of the Fourteenth Amendment; and (III) a violation of the Michigan Regulation and Taxation of Marihuana Act (“MRTMA”). The matter is presently before the Court on the Village’s motion to dismiss pursuant to Federal Rules of Civil Procedure 12(b)(6) and (7). (ECF No. 7.) Also pending before the Court is Plaintiff’s motion for preliminary injunction pursuant to Federal Rule of Civil Procedure 65. (ECF

No. 6.) The Village filed a response to Plaintiff’s motion. (ECF No. 8.) To date, Plaintiff has not responded to the Village’s motion. Thus, technically, the motion

to dismiss is unopposed. See E.D. Mich. LR 7.1(c)(1) (“A respondent opposing a motion must file a response, including a brief and supporting documents then available.”). “Numerous cases have held that where a plaintiff fails to respond to a motion to dismiss, his or her claims are deemed abandoned.” Tranchmontagne v.

United States Dep’t of Hous. & Urb. Dev., No. 20-cv-12842, 2021 WL 2662283, at *6 (E.D. Mich. June 29, 2021) (referencing cases); see also Williams v. Chase Bank, No. 15-cv-10565, 2015 WL 4600067, at *4 (E.D. Mich. July 29, 2015).

Nevertheless, a district court is required, “at a minimum,” to “examine” a Rule 12(b)(6) motion before dismissing a complaint. Visner v. Mich. State Police, No. 19-cv-11466, 2020 WL 525367, at *1 (E.D. Mich. Feb. 3, 2020) (citing Carver v. Bunch, 946 F.2d 451, 455 (6th Cir. 1991)).

In Carver, the Sixth Circuit reasoned: . . . a district court cannot grant summary judgment in favor of a movant simply because the adverse party has not responded. The court is required, at a minimum, to examine the movant’s motion for summary judgment to ensure that he has discharged that burden. We 2 see no reason why the situation should be different in the context of a motion to dismiss for failure to state a claim under Fed. R. Civ. P. 12(b)(6).

946 F.2d at 455. Accordingly, notwithstanding Plaintiff having “waived opposition to the [Village’s]’ motion to dismiss[,]” the Court “has undertaken an independent review of the motion[ ] . . . and the sufficiency of Plaintiff’s complaint[.]” Tranchmontagne, 2021 WL 2662283, at *7. I. Applicable Standards A. Rule 12(b)(6) – Failure to State a Claim A Rule 12(b)(6) motion tests the legal sufficiency of the complaint. RMI

Titanium Co. v. Westinghouse Elec. Corp., 78 F.3d 1125, 1134 (6th Cir. 1996). “To survive a motion to dismiss, 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 Atlantic Corp. v. Twombly, 550 U.S. 544, 570 (2007)). In deciding whether the plaintiff has set forth a “plausible” claim, the court must accept the factual allegations in the complaint as true. Erickson v. Pardus, 551 U.S. 89, 94 (2007). This presumption

is not applicable to legal conclusions, however. Iqbal, 556 U.S. at 668. Therefore, “[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice.” Id. (citing Twombly, 550 U.S. at 555).

3 Ordinarily, the court may not consider matters outside the pleadings when deciding a Rule 12(b)(6) motion. Weiner v. Klais & Co., Inc., 108 F.3d 86, 88 (6th

Cir. 1997) (citing Hammond v. Baldwin, 866 F.2d 172, 175 (6th Cir. 1989)). However, “[w]hen a court is presented with a Rule 12(b)(6) motion, it may consider the [c]omplaint and any exhibits attached thereto, public records, items

appearing in the record of the case and exhibits attached to [the] defendant’s motion to dismiss, so long as they are referred to in the [c]omplaint and are central to the claims contained therein.” Bassett v. Nat’l Collegiate Athletic Ass’n, 528 F.3d 426, 430 (6th Cir. 2008). Thus, the Village’s public records, including any

minutes from its meetings, may be considered here. B. Rule 12(b)(7) – Failure to Join a Necessary Party A Rule 12(b)(7) motion seeks dismissal for the failure to join an

indispensable party under Rule 19. Fed. R. Civ. P. 12(b)(7). When ruling on such a motion, a court “may consider ‘the allegations of the complaint and the affidavits and other proofs adduced in contradiction or support thereof.’” Secura Ins. v. TFGBAR, LLC, 420 F. Supp. 3d 608, 611 (W.D. Ky. 2019) (quoting Bolling v.

Prospect Funding Holdings, LLC, No. 1:14-cv-00081, 2015 WL 5680418, at *3 (W.D. Ky. Sept. 25, 2015) (quoting Estes v. Shell Oil Co., 234 F.2d 847, 849 (5th Cir. 1956)).

4 C. Rule 65(a) – Preliminary Injunctions “[A] ‘preliminary injunction is an extraordinary remedy reserved only for

cases where it is necessary to preserve the status quo.’” Enchant Christmas Light Maze & Mkt. Ltd. v. Glowco, LLC, 958 F.3d 532, 535 (6th Cir. 2020) (quoting Hall v. Edgewood Partners Ins. Ctr., Inc., 878 F.3d 524, 526 (6th Cir. 2017)). “A

plaintiff seeking a preliminary injunction must establish that [it] is likely to succeed on the merits, that [it] is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in [its] favor, and that an injunction is in the public interest.” Id. at 535-36 (quoting Obama for Am. v.

Husted, 697 F.3d 423, 428 (6th Cir. 2012)). These factors must be balanced. Union Home Mortg. Corp. v. Cromer, 31 F.4th 356, 365-66 (6th Cir. 2022) (citation omitted). “But where there is no likelihood of either success on the merits

or irreparable harm, an injunction is unwarranted—regardless of the showing on the other factors. Id. (citations omitted). II. Factual Background The MRTMA, effective December 6, 2018, authorizes recreational

Marijuana Establishments within Michigan and establishes a comprehensive licensing and regulation system. See Mich. Comp.

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