MA LEG PARTNERS 1 v. City of Dallas

CourtDistrict Court, N.D. Texas
DecidedMarch 4, 2020
Docket3:19-cv-00219
StatusUnknown

This text of MA LEG PARTNERS 1 v. City of Dallas (MA LEG PARTNERS 1 v. City of Dallas) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MA LEG PARTNERS 1 v. City of Dallas, (N.D. Tex. 2020).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF TEXAS DALLAS DIVISION

MA LEG PARTNERS 1, § § Plaintiff, § § Civil Action No. 3:19-CV-00219-X v. § § CITY OF DALLAS, § § Defendant. § § §

MEMORANDUM OPINION AND ORDER

The City of Dallas regulates rental properties by requiring applications and providing for inspections. When MA LEG Partners 1 (MA LEG) received a notice of violation for failing to provide an application for a rental property, it sued challenging the constitutionality of the ordinance under the First, Fourth, Fifth, Seventh, Eighth, and Fourteenth Amendments and bringing a section 1983 claim, and seeking declaratory and injunctive relief. The City filed a motion to dismiss for lack of jurisdiction (Doc. No. 10) and a motion to dismiss for failure to state a claim (Doc. No. 8). The motions are fully briefed. For the reasons explained below, MA LEG lacks standing and the Court lacks jurisdiction. The Court hereby GRANTS the City’s motion to dismiss for lack of jurisdiction and DISMISSES WITHOUT PREJUDICE MA LEG’s claims. The Court DISMISSES AS MOOT the City’s motion to dismiss for failure to state a claim. The City adopted an ordinance in 2016 that regulates rental properties.

Among other things, the ordinance requires rental property owners to complete an application, attach an affidavit, and pay a registration fee. MA LEG alleges it received a notice of violation in 2018 for failure to register. MA LEG responded by filing suit to challenge the constitutionality of the ordinance. II. Motion to Dismiss Standard The City filed motions to dismiss both for lack of jurisdiction under Rule 12(b)(1) and failure to state a claim under Rule 12(b)(6). The City contends the Court

lacks jurisdiction because MA LEG lacks standing. Standing under Article III of the Constitution is jurisdictional, such that the Court must address it before considering the merits of a plaintiff’s claims.1 Unlike a 12(b)(6) motion, the Court is free to weigh the evidence and satisfy itself as to the existence of its power to hear the case on a Rule 12(b)(1) motion.2 A court must dismiss the case if it “lacks the statutory or constitutional power to adjudicate the case.”3 And the burden is on the party who

seeks federal jurisdiction to clearly “allege facts demonstrating that [it] is a proper party to invoke the judicial resolution of the dispute.”4 Standing requires that a plaintiff establish, for each claim, “(1) that the plaintiff have suffered an ‘injury in fact—an invasion of a legally protected interest

1 Audler v. CBC Innovis Inc., 519 F.3d 239, 247–48 (5th Cir. 2008). 2 Williamson v. Tucker, 645 F.2d 404, 413 (5th Cir. 1981). 3 Home Builders Ass’n of Miss., Inc. v. City of Madison, 143 F.3d 1006, 1010 (5th Cir. 1998) (quoting Nowak v. Ironworkers Local 6 Pension Fund, 81 F.3d 1182, 1187 (2d Cir. 1996). 4 United States v. Hays, 515 U.S. 737, 743 (1995) (quoting Warth v. Seldin, 422 U.S. 490, 490 (1975)) (alteration added). ‘a causal connection between the injury and the conduct complained of’; and (3) that

the injury is likely to be redressed by a favorable decision.”5 Under Federal Rule of Civil Procedure 12(b)(6), the Court evaluates the pleadings by “accepting as true the factual allegations in the complaint and drawing all inferences in the plaintiff’s favor.”6 To survive a motion to dismiss, MA LEG must allege enough facts “to state a claim to relief that is plausible on its face.”7 “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct

alleged.”8 “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.”9 “[W]here the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged—but it has not ‘show[n]’—‘that the pleader is entitled to relief.’”10 III.

MA LEG brings nine enumerated claims and requests for declaratory and injunctive relief. The City argues that MA LEG has suffered no injury and failed to

5 Fla. Dep’t of Ins. v. Chase Bank of Tex. Nat’l Ass’n, 274 F.3d 924, 929 (5th Cir. 2001) (quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-561 (1992). 6 Biro v. Conde Nast, 807 F.3d 541, 544 (2d Cir. 2015) (citing DiFolco v. MSNBC Cable L.L.C., 622 F.3d 104, 110–11 (2d Cir. 2012)). 7 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). 8 Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted). 9 Id.; see also Twombly, 550 U.S. at 545 (“Factual allegations must be enough to raise a right to relief above the speculative level[.]”). 10 Iqbal, 556 U.S. at 679 (quoting Fed. R. Civ. P. Rule 8(a)(2)). turn.

A. Standing The City argues that because MA LEG has only received a notice of violation, it lacks a concrete and particularized injury sufficient to sue. The Court disagrees. As the Supreme Court explained in Babbitt v. United Farm Works Nat’l Union, A plaintiff who challenges a statute must demonstrate a realistic danger of sustaining a direct injury as a result of the statute’s operation or enforcement. But one does not have to await the consummation of threatened injury to obtain preventive relief. If the injury is certainly impending that is enough.11 If the City were right, pre-enforcement challenges to the constitutionality of statutes and ordinances could never occur. But they often do. In fact, the City has brought such actions against Texas to attempt to enjoin state law before it took effect.12 And those actions seek injunctive relief to prevent future constitutional violations, not just damages for past violations. MA LEG has done likewise here. And the City has not indicated in briefing or the hearing that it will not enforce the ordinance against MA LEG (and the notice of violation indicates the opposite). The Court disagrees with the City’s global assertion of lack of standing and jurisdiction in this posture where the first step of enforcement as to the plaintiff has begun. But the Court must assess standing count by count, so that is not the end of the matter.

11 442 U.S. 289, 298 (1979). 12 See City of El Cenizo v. State, 264 F. Supp. 3d 744, 755 (W.D. Tex. 2017) (ruling on pre-enforcement preliminary injunction motion from City of Dallas), aff’d in part, vacated in part sub nom. City of El Cenizo, Texas v. Texas, 885 F.3d 332 (5th Cir. 2018), withdrawn from bound volume, opinion withdrawn and superseded, 890 F.3d 164 (5th Cir. 2018), and aff'd in part, vacated in part sub nom. City of El Cenizo, Texas v. Texas, 890 F.3d 164 (5th Cir. 2018). B. Count One: Reasonable Expectation of Privacy MA LEG complains that Chapter 27’s application process requires the

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Bluebook (online)
MA LEG PARTNERS 1 v. City of Dallas, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ma-leg-partners-1-v-city-of-dallas-txnd-2020.