Jarmuth v. City of Chicago

43 F. Supp. 3d 889, 2014 U.S. Dist. LEXIS 68238, 2014 WL 2068070
CourtDistrict Court, N.D. Illinois
DecidedMay 19, 2014
DocketCase No. 1:13-cv-04713
StatusPublished
Cited by5 cases

This text of 43 F. Supp. 3d 889 (Jarmuth v. City of Chicago) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jarmuth v. City of Chicago, 43 F. Supp. 3d 889, 2014 U.S. Dist. LEXIS 68238, 2014 WL 2068070 (N.D. Ill. 2014).

Opinion

MEMORANDUM OPINION AND ORDER

Robert M. Dow, Jr., United States District Judge

Plaintiff Jeffrey Jarmuth filed a four-count complaint for declaratory judgment and injunctive relief against Defendants City of Chicago and Local Liquor Commissioner Gregory Steadman, asserting equal protection (Count I) and substantive due process (Count II) violations under 42 U.S.C. § 1983, as well as state law claims for a petition for writ of mandamus pursuant to 735 ILCS 5/14-101 (Count III) and indemnification pursuant to 745 ILCS 10/9-102 (Count IV). In short, Plaintiff seeks to prevent liquor licenses from being issued near where he lives.

Defendants move to dismiss Plaintiffs federal claims and urge the Court to decline to exercise jurisdiction over Plaintiffs state law claims. In his response brief, Plaintiff concedes that the complaint does not state a claim for a substantive due process violation—or, as Plaintiff puts it, “does not amount to a deprivation that ‘shocks the conscience’ in the sense required in a substantive due process [891]*891claim”—and “withdraws Count II.” Pl.’s Resp. at 13. Additionally, for the reasons set forth below, the Court grants Defendants’ motion to dismiss [14] with respect to the remaining federal claim—for equal protection (Count I)—and dismisses Plaintiffs state law claims without prejudice.

I. Background1

Plaintiff is a resident of the City of Chicago and resides within a geographic area that in November 1982 was designated as the 7th precinct of the 42nd ward of the City, which is bounded by Elm Street on the south, State Street on the west, Division Street on the north, and Lake Shore Drive on the east (the “1982 7th Precinct”). On November 2,1982, the residents of the 1982 7th Precinct voted to prohibit the retail sale of all alcoholic liquor within the 1982 7th Precinct pursuant to Article IX of the Illinois Liquor Control Act (“ILCA”). In his complaint, Plaintiff asserts that Defendants have incorrectly decided, under the Illinois Liquor Control Act, that since at least June 14, 1984, liquor licenses may be issued in the portion of the 1982 7th Precinct bounded by Elm Street on the south, State Street on the West, Division Street on the north, and the alley immediately east of State Street on the east—as Plaintiff refers to it, the “annexed area.” According to Plaintiff, Defendants have taken steps to issue a liquor license for an address within this area and, in turn, have violated Plaintiffs rights under the equal protection clause of the Fourteenth Amendment of the United States Constitution.

In May or June of 1984, the City received a petition to discontinue the prohibition on the retail sale of alcoholic liquors in the “annexed area” pursuant to Section 173.1(b) (now Section 9-9(b)) of the ILCA), which the Court will refer to as the “wet” petition. The City’s Law Department issued a letter to the City Clerk advising that the wet petition appeared to conform to the requirements of the Act. Because no objections had been filed, the Clerk •filed the petition and the prohibition was discontinued in the “annexed area” as of June 14,1984.

According to the complaint, certain residents of the 1982 7th Precinct became aware of the wet petition in mid-1984 and raised concerns.2 According to Plaintiff, the alderman who represented the area from 1971 until 2007 indicated that he considered the area to be “dry” at several public meetings in the late 1990s and early 2000s, and a document entitled “City of Chicago '07-'08 Zoning Map” indicated the area was “dry.” No liquor license applica[892]*892tions for locations in the 1982 7th Precinct were submitted between 1984 and 2012.

According to the complaint, sometime in 2007 or 2008, M Development, LLC, which owned some structures in the annexed area, proposed to demolish some or all of the existing. structures and build a hotel. Following the proposal, a meeting was held, during which at least four citizens of the precinct, including Plaintiff, maintained that the precinct was “dry with no exceptions.” Principals of M Development allegedly indicated that they were unaware that the precinct was “dry with no exceptions.”

On or about August 15, 2012, an application for a packaged goods liquor license for 1149 N. State Street, which is located within the “annexed area,” was submitted to Defendants. Plaintiff contacted the alderman’s office and was told that the subject area was “wet.” Plaintiff then reviewed the City’s zoning map, which, contrary to the '07-'08 map, indicated that the subject area was eligible for liquor license applications. Plaintiff made numerous requests for information from the Defendant regarding the change of the area from “dry” to “wet” status. According to Plaintiff, he was repeatedly told that the “annexed area” was made “wet” by virtue of the petition dated May 5,1984.

Plaintiff contacted Commissioner Stead-man on December 11, 2012, and informed him of the historical facts surrounding the status of the “annexed area.” According to Plaintiff, Steadman informed Plaintiff that he intended to honor the petition’s validity and consider the liquor license application. In early March 2013, Plaintiff petitioned the City and Steadman for a hearing regarding the issuance of the liquor license, but Plaintiffs request was not granted. Plaintiff also telephoned various local officials to voice his opinion and provided the City with a “legal memorandum” outlining his position. On June 12, 2013, Steadman allegedly entered into a “Plan of Operations” with Just Grapes, LLC, indicating that a packaged goods liquor license would be issued to Just Grapes, LLC, in the event that it met six conditions listed in the “Plan of Operations.”

According to Plaintiff, as of the date of the filing of the complaint, it was unclear if Defendants had issues a package goods liquor license to Just Grapes, LLC.

II. Legal Standard

A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) tests the sufficiency of the complaint, not the merits of the case. See Richards v. Mitcheff, 696 F.3d 635, 637 (7th Cir.2012). Under Rule 8(a)(2), a complaint must include “a short and plain statement of the claim showing that the pleader is entitled to relief.” Fed. R.Civ.P. 8(a)(2). The short and plain statement under Rule 8(a)(2) must “give the defendant fair notice of what the claim is and the grounds upon which it rests.” Bell Atlantic v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007) (citation omitted). Under the federal notice pleading standards, a plaintiffs “factual allegations must be enough to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555, 127 S.Ct. 1955. Put differently, 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,

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43 F. Supp. 3d 889, 2014 U.S. Dist. LEXIS 68238, 2014 WL 2068070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jarmuth-v-city-of-chicago-ilnd-2014.