Loesel v. City of Frankenmuth

743 F. Supp. 2d 619, 2010 U.S. Dist. LEXIS 101664, 2010 WL 3842369
CourtDistrict Court, E.D. Michigan
DecidedSeptember 27, 2010
DocketCase 08-11131-BC
StatusPublished
Cited by2 cases

This text of 743 F. Supp. 2d 619 (Loesel v. City of Frankenmuth) 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
Loesel v. City of Frankenmuth, 743 F. Supp. 2d 619, 2010 U.S. Dist. LEXIS 101664, 2010 WL 3842369 (E.D. Mich. 2010).

Opinion

ORDER AND OPINION DENYING DEFENDANT’S MOTION FOR JUDGMENT, OR IN THE ALTERNATIVE FOR A NEW TRIAL OR REMITTITUR; GRANTING IN PART, DENYING IN PART, AND SCHEDULING FOR EVIDENTIA-RY HEARING IN PART PLAINTIFFS’ MOTION FOR ENTRY OF JUDGMENT AND ASSESSMENT OF ATTORNEY FEES, INTEREST, AND COSTS; SCHEDULING TELEPHONIC STATUS CONFERENCE; AND DENYING PLAINTIFFS’ MOTION TO STRIKE

THOMAS L. LUDINGTON, District Judge.

Plaintiffs Ronald and Arthur Loesel filed a complaint against Defendant City of Frankenmuth on March 17, 2008. The Loesels are owners of a tract of land on the northern outskirts of Frankenmuth. On May 4, 2009, the Loesels filed an amended complaint [Dkt. # 33], joining as necessary plaintiffs the co-owners of the tract of land, including Gayle and Elaine Loesel, Valerian Nowak, and The Valerian Nowak and Alice B. Nowak Trust. Collectively, Plaintiffs entered into an option agreement with Wal-Mart for Wal-Mart to purchase their land for four-million dollars if it could build one of its stores on the land.

Defendant learned of the contract, became concerned about the impact that a Wal-Mart and other similar stores would have on Defendant, and eventually adopted a zoning ordinance (“the ordinance”), which appeared to preclude Wal-Mart from building one of its stores on Plaintiffs’ property. The ordinance placed a 65,000 square foot cap on the size of buildings that could be built on property, in- *624 eluding Plaintiffs’, to which it applied. Wal-Mart abandoned its application to build a store on Plaintiffs’ property and the option contract with Plaintiffs. On March 4, 2010, a jury concluded that Plaintiffs proved that Defendant violated their equal protection rights, and determined that Plaintiffs were entitled to recover $3.6 million in damages.

Originally, the Loesels’ complaint alleged claims against Defendant based on the Equal Protection Clause, the Due Process Clause, the Privilege and Immunities Clause of the Fourteenth Amendment, and the Commerce Clause. However, on March 27, 2009, 2009 WL 817402, the Court granted in part Defendant’s motion for summary judgment, leaving Plaintiffs to pursue only a facial equal protection challenge. See [Dkt. #29]. Subsequently, Defendant filed both a motion for reconsideration and a renewed motion for summary judgment addressing the equal protection challenge.

First, in resolving Defendant’s initial motion for summary judgment, the Court acknowledged that a zoning ordinance is unconstitutional only when it is “clearly arbitrary and unreasonable, having no substantial relation to the public health, safety, morals, or general welfare.” Vill. of Euclid, v. Ambler Realty Co., 272 U.S. 365, 395, 47 S.Ct. 114, 71 L.Ed. 303 (1926). Yet, the Court noted that in certain situations, a government enactment may be invalidated on equal protection grounds if it is “underinclusive,” or “do[es] not include all who are similarly situated with respect to a rule, and thereby burden less than would be logical to achieve the intended government end.” See generally Laurence A. Tribe, American Constitutional Law, § 16-4, 1446-49 (2d ed.1988). As the Supreme Court has noted, “nothing opens the door to arbitrary action so effectively as to allow those officials to pick and choose only a few to whom they will apply legislation and thus to escape the political retribution that might be visited upon them if larger numbers were affected.” Ry. Express Agency v. New York, 336 U.S. 106, 112, 69 S.Ct. 463, 93 L.Ed. 533 (1949). Ultimately, to be held unconstitutional, the government enactment must be “clearly wrong, a display of arbitrary power, not an exercise of judgment.” Mathews v. de Castro, 429 U.S. 181, 185, 97 S.Ct. 431, 50 L.Ed.2d 389 (1976).

The Court noted that Plaintiffs did not allege a traditional equal protection claim, because they did not allege that they were members of a “protected class.” Rather, Plaintiffs sought to establish a “class of one” claim, which required them to demonstrate that they were treated differently from others who were similarly situated and that there was no rational basis for the difference in treatment. See Vill. of Willowbrook v. Olech, 528 U.S. 562, 564, 120 S.Ct. 1073, 145 L.Ed.2d 1060 (2000); Engquist v. Or. Dep’t of Agriculture, 553 U.S. 591, 601-02, 128 S.Ct. 2146, 170 L.Ed.2d 975 (2008). The Court explained that a “ ‘class of one’ plaintiff may demonstrate that a government action lacks a rational basis in one of two ways: either by negativing every conceivable basis which might support the government action or by demonstrating that the challenged government action was motivated by animus or ill-will.” Warren v. City of Athens, 411 F.3d 697 (6th Cir.2005) (quotations omitted); TriHealth, Inc. v. Bd. of Comm’rs, Hamilton County, Ohio, 430 F.3d 783, 788 (6th Cir.2005) (“To prevail, [plaintiffs] must demonstrate that the differential treatment they were subjected to is so unrelated to the achievement of any combination of legitimate purposes that the court can only conclude that the County’s actions were irrational.”). See, e.g., Romer v. Evans, 517 U.S. 620, 634-35, 116 S.Ct. 1620, 134 L.Ed.2d 855 (1996) (finding that a state constitutional amendment *625 lacked a rational basis because the amendment “ seems inexplicable by anything but animus toward the class it affects”). Although a “conceivable” basis does not need to have been articulated by the decision-maker at the time of the decision, it should be apparent that a proposed basis “ ‘may reasonably have been the purpose and policy’ of the relevant governmental decision-maker.” Nordlinger v. Hahn, 505 U.S. 1, 9, 15, 112 S.Ct. 2326, 120 L.Ed.2d 1 (1992) (quoting Allied Stores of Ohio, Inc. v. Bowers, 358 U.S. 522, 528-529, 79 S.Ct. 437, 3 L.Ed.2d 480 (1959)).

The crux of Plaintiffs’ argument was that Defendant violated their equal protection rights when it intentionally crafted the reach of the ordinance to exempt Bronner’s and Tom Johnston’s interest in Kroger, and other similar properties, from the ordinance. Bronner’s is a retail store specializing in Christmas ornaments and other merchandise, which is approximately 400,-000 square feet. Kroger is a 57,000 square foot grocery store located in the Bavarian Mall, which is itself 107,000 square feet. Neither Bronner’s nor Kroger is subject to the ordinance because it applies only to properties zoned CL-PUD (commercial local — planned use development), like the Loesels’ property. Kroger and Bronner’s are zoned B-3 (highway commercial). Defendant argued that Plaintiffs’ property was not similarly situated to the properties on which Bronner’s and other tourist-related businesses are located because those businesses are not part of a PUD district.

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Cite This Page — Counsel Stack

Bluebook (online)
743 F. Supp. 2d 619, 2010 U.S. Dist. LEXIS 101664, 2010 WL 3842369, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loesel-v-city-of-frankenmuth-mied-2010.