Mike Jabary v. City of Allen

547 F. App'x 600
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 25, 2013
Docket12-41054
StatusUnpublished
Cited by41 cases

This text of 547 F. App'x 600 (Mike Jabary v. City of Allen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mike Jabary v. City of Allen, 547 F. App'x 600 (5th Cir. 2013).

Opinion

E. GRADY JOLLY, Circuit Judge: *

This appeal arises from Mike Jabary’s complaint against the City of Allen, Texas, and a host of local officials, asserting various claims based upon the City’s revocation of his Certificate of Occupancy under which he operated his business. The district court dismissed his complaint under Federal Rule of Civil Procedure 12(b)(6) for failure to state claims upon which relief could be granted. Although we agree that Jabary failed to state claims against several of the defendants, we hold that the district court erred in dismissing his procedural due process claim against two of the defendants, Mayor Stephen Terrell and Chief Building Official Bret McCullough. Accordingly, we AFFIRM in part, REVERSE in part, and REMAND for further proceedings not inconsistent with this opinion.

I.

Mike Jabary, plaintiff and appellant, alleged the following facts in his complaint. He submitted an “Application for a Commercial Certificate of Occupancy Only” to the City of Allen, Texas (“City”), with the intent to open a business inside city limits. His application stated that the building would be used for a “Restaurant.” Bret McCullough, Allen’s Chief Building Official, and one of the defendants, suggested to Jabary that the application describe the building’s use as a “Restaurant and Hookah Bar.” In January 2009, Jabary’s amended application was approved and the City issued Jabary Mediterranean a Certificate of Occupancy (“Certificate”). In June 2009, he opened Jabary Mediterranean, a restaurant, hookah bar, and tobacco store. 1

The business operated without interruption for approximately one year, during which the restaurant sold food, drinks, and various tobacco products. One particular product Jabary sold, however, drew the ire of many of Allen’s residents. K2, or “Spice,” is composed of a mixture of herbs and spices sprayed with synthetic cannabinoids. A user of the substance experiences effects that closely mimic those of THC (the active ingredient in cannabis, otherwise known as marijuana). While the drug K2 was legal at the time Jabary sold it, it was placed into Schedule I of the Controlled Substances Act, effective on March 1, 2011. 2

The City’s opposition to Jabary’s establishment first occurred in February 2010. Stephen Terrell, the City’s mayor, asked Jabary to move his business, suggesting the reason was its close proximity to the Allen Freshman Center, a secondary school in the area. Terrell, however, also owned a dry cleaners in the same shopping center as Jabary Mediterranean. Jabary advised Terrell that he would not relocate his business because of his lease obligations.

*603 Shortly after this incident, Allen police officers began paying daily visits to Jabary’s business. Between April 9, and June 10, 2010, Allen police visited Jabary Mediterranean at least 31 times. Up to nine officers came at one time. Visits occurred as often as three times a day. During this time, the officers cited Jabary for violations of § 161.252 of the Texas Health and Safety Code, which makes unlawful the sale of tobacco products to minors. Jabary alleges that the officers occupied his business in a “menacing manner” and that on multiple occasions customers left because of the officers’ menacing presence.

On June 8, 2010, the Allen City Council held a public meeting addressing the continued operation of Jabary Mediterranean and its sale of K2. Public comments ranged from opposition to support for the business. The following day, the City health inspectors visited Jabary Mediterranean, and served a notice of violation for failing to meet criteria for restaurant use. The posted notice, signed by McCullough, stated that Jabary’s business was in violation of the Allen Land Development Code and that his Certificate of Occupancy “is hereby revoked.” One day later, the police department issued a press release stating that Jabary Mediterranean was selling tobacco to minors and that, as a result of the City’s health code inspection, Jabary Mediterranean’s Certificate of Occupancy had been revoked. The stated basis for the revocation was that the business did not qualify as a restaurant due to insufficient food sales. Jabary Mediterranean was then closed and this lawsuit followed.

II.

On December 28, 2010, Jabary filed a pro se complaint in the United States District Court for the Eastern District of Texas. By May 2011, however, Jabary had retained counsel, and was allowed to amend his complaint. Jabary’s amended complaint named the City of Allen and a number of individual defendants, all of whom held positions in the City’s government: Peter Smith, the City Attorney; Stephen Terrell, the City’s mayor; Bo Bass, the Director of Planning and Development; Jon Felty, a sergeant in the City’s police department; Pete Vargas, the City Manager; Bret McCullough, the Chief Building Official; and William Rushing, the Chief of Police. These individual defendants asserted a qualified immunity defense and requested that the district court require Jabary to submit a Rule 7(a) reply to their assertions of qualified immunity. The court granted the defendants’ request and in August 2011, Jabary filed his Second Amended Complaint and Rule 7(a) Reply. Jabary’s Second Amended Complaint included several claims. His first claim was a takings claim against only the City. His other claims, against the City and the individual defendants, included equal protection, procedural due process, substantive due process, and conspiracy claims. The district court assigned the matter to a magistrate judge under 28 U.S.C. § 636(b)(1)(B) to make a recommendation for disposition.

The individual defendants filed a 12(b)(6) motion to dismiss the claims on grounds of qualified immunity. While the court’s ruling on that motion was pending, Jabary filed a Third Amended Complaint and a Motion for Sanctions against the defendants. This complaint relied upon information gathered from a series of emails among City officials, which Jabary had obtained through an open records request. The court dismissed Jabary’s Third Amended Complaint as untimely and denied Jabary’s Motion for Sanctions. *604 Meanwhile, the magistrate judge, considering only the Second Amended Complaint, recommended dismissing all of Jabary’s claims against the individual defendants on 12(b)(6) grounds and staying the remaining claims against the City until Jabary had exhausted all state procedures for remedies. Finding that Jabary’s Second Amended Complaint consisted of nothing but conclusory statements, the recommendation further stated that the individual defendants were entitled to qualified immunity because their actions were taken in the routine exercise of their duties.

The district court adopted the magistrate’s recommendation, dismissed all claims against the individual defendants, based on qualified immunity, and entered final judgment for the individual defendants pursuant to Federal Rule of Civil Procedure 54(b).

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Bluebook (online)
547 F. App'x 600, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mike-jabary-v-city-of-allen-ca5-2013.