Nash v. Little Rock Housing Authority

CourtDistrict Court, E.D. Arkansas
DecidedSeptember 20, 2021
Docket4:20-cv-01320
StatusUnknown

This text of Nash v. Little Rock Housing Authority (Nash v. Little Rock Housing Authority) is published on Counsel Stack Legal Research, covering District Court, E.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nash v. Little Rock Housing Authority, (E.D. Ark. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS CENTRAL DIVISION

MARSHALL L. NASH PLAINTIFF

v. Case No. 4:20-cv-1320-LPR

LITTLE ROCK HOUSING AUTHORITY d/b/a MHA, and LITTLE ROCK BOARD OF COMMISSIONERS DEFENDANTS

ORDER

Pending before the Court is Plaintiff Marshall L. Nash’s Motion to Remand.1 The Little Rock Housing Authority d/b/a Metropolitan Housing Alliance and the Little Rock Housing Authority Board of Commissioners have responded.2 On September 14, 2021, the Court held a hearing on the Motion. For the reasons that follow, the Court now GRANTS the Motion to Remand.

1 Pl.’s Mot. to Remand (Doc. 5). Mr. Nash, acting pro se, also seeks costs and attorney’s fees pursuant to 28 U.S.C. § 1447(c). Id. at 16. That statute provides that “[a]n order remanding [a] case may require payment of just costs and any actual expenses, including attorney fees, incurred as the result of the removal.” 28 U.S.C. 1447(c) (emphasis added). Mr. Nash is a licensed attorney, but that does not entitle him to fees. The Supreme Court has pointed out that “the word ‘attorney’ assumes an agency relationship. . . . .” Kay v. Ehler, 499 U.S. 432, 435–36 (1991). Of course, Mr. Nash cannot be an agent of himself. So such a relationship is not present here. Also, in Kay, the Supreme Court held that pro se plaintiffs are not entitled to recover attorney’s fees under 42 U.S.C. § 1988. 499 U.S. at 438. The Court can find no principled reason distinguishing the Supreme Court’s holding with respect to a civil rights statute and the fee shifting provision of § 1447(c). Thus, Mr. Nash will not receive fees for representing himself. In any event, the governing precedent and the language of § 1447(c) make crystal clear that I have the discretion to order fees and costs where a defendant “lack[s] an objectively reasonable basis for seeking removal.” Martin v. Franklin Cap. Corp., 546 U.S. 132, 141 (2005). That does not mean I must order costs and fees where a defendant “lack[s] an objectively reasonable basis for seeking removal.” Id. I choose to exercise my discretion by not awarding costs and fees here. I do not believe that Defendants were acting in bad faith, using gamesmanship, or seeking to delay this case. Given the relative paucity of caselaw expounding upon what makes an asserted federal defense “colorable,” it was worth the old college try. 2 Defs.’ Resp. to Mot. to Remand (Doc. 10). Background and Procedural History On October 15, 2020, Mr. Nash filed his pro se Complaint in Arkansas state court.3 Mr. Nash is an Arkansas resident and worked for Defendants (MHA and the Board) between 2014 and the date of his resignation, April 12, 2019.4 MHA is an Arkansas corporation organized pursuant

to Arkansas Code Annotated section 14-169-201 et seq., having its principal place of business in Arkansas.5 The Board comprises five members “whose stated role is to establish goals, approve policy and budgets, and provide general direction to” the MHA.6 Mr. Nash alleges defamation.7 Specifically, Mr. Nash alleges that Defendants told federal investigators that Mr. Nash “refused to attend” a meeting, was suspended and placed on unpaid administrative leave, and that he resigned while on unpaid leave.8 Mr. Nash alleges that all of those statements are false.9 Mr. Nash alleges that federal investigators included the allegedly false statements in an official report.10 Mr. Nash alleges that “the statement regarding Plaintiff’s employment status of [a]dministrative [l]eave or suspension was printed in articles for public consumption,” and that this false statement “is memorialized into perpetuity via the internet.”11

According to Mr. Nash, Defendants’ statements and their subsequent disseminations by third parties injured Mr. Nash’s reputation.12

3 Pl.’s Compl. (Doc. 2). 4 Id. ¶ 4. 5 Id. ¶ 2; Defs.’ Resp. to Mot. to Remand (Doc. 10) ¶ 5. 6 Pl.’s Compl. (Doc. 2) ¶ 3. 7 See id. 8 Id. ¶¶ 5, 7–9, 26. 9 Id. ¶¶ 10–12, 30. 10 Id. ¶ 27. 11 Id. ¶¶ 29, 30. 12 Id. ¶ 31. On November 9, 2020, Defendants removed the case to this Court.13 Defendants rely on their relationship with the U.S. Department of Housing and Urban Development (“HUD”) to get into federal court. Defendants assert that “they were authorized by federal law and MHA’s contract with HUD to act for a federal officer, namely HUD, in executing duties under federal law.”14 Defendants also say that HUD “direct[s] and control[s] how the MHA administer[s]

housing benefits through its contracts with MHA through a detailed and comprehensive federal regulatory scheme and regularly-issued guidance by HUD.”15 Defendants assert that a former MHA employee, Dana Arnette, filed a “whistleblower reprisal complaint through the HUD Office of the Inspector General.”16 In that whistleblower complaint, Ms. Arnette said that she “was fired for her disclosure that [Mr. Nash], who was serving as a Special Advisor to the Board, was neglecting his job duties, thus amounting to a gross waste of HUD funds and gross mismanagement of HUD’s contract with the MHA.”17 This whistleblower complaint, Defendants assert, triggered an investigation by the OIG.18 Investigators questioned a Board member about Ms. “Arnette’s report of HUD funds being misused through

[Mr. Nash’s] failure to perform his job and about [Mr. Nash’s] termination of [Ms.] Arnette following her report of the misuse.”19 Defendants say that the Board member’s responses constitute the allegedly defamatory statements.20

13 Defs.’ Notice of Removal (Doc. 1). 14 Id. ¶ 28. 15 Id. 16 Id. ¶ 12. 17 Id. 18 Id. ¶ 15. 19 Id. 20 See id. ¶ 17. The OIG report containing the allegedly defamatory statements was completed on June 21, 2019.21 Sometime later, some of these statements in the OIG report were published online by a media outlet.22 For instance, the media outlet reported that Defendants “voted unanimously on April 9 to put Nash, who was serving as the ‘special adviser’ to the board, on administrative leave.”23 Defendants state that “the published information that is the basis for Plaintiff’s alleged

harm was obtained by the news outlet through the Freedom of Information Act, 5 U.S.C. § 552.”24 Defendants’ primary argument is that this Court has jurisdiction over this case under the federal officer removal statute, 28 U.S.C. § 1442(a)(1).25 In a nutshell, Defendants argue that they made the allegedly defamatory statements while acting under the color and direction of HUD.26 As such, Defendants contend that federal officer removal is proper. Alternatively, Defendants say that this Court has subject matter jurisdiction under 28 U.S.C. § 1331 (federal question jurisdiction).27 In a nutshell, Defendants argue that multiple “serious federal interest[s]” are implicated by Mr. Nash’s complaint and thus give rise to federal question jurisdiction.28 For instance, Defendants assert that a serious federal interest “exists in

interpreting whether a public entity receiving and charged with distributing federal funds is liable for statements made while participating in a federal investigation.”29

21 Ex. A to Defs.’ Mot. to Dismiss (Doc. 4-1) at 3. 22 Ex. 2 to Pl.’s Compl. (Doc. 2) at 6. 23 Id. 24 Defs.’ Notice of Removal (Doc. 1) ¶ 39. 25 Id. ¶¶ 1, 20.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Caterpillar Inc. v. Williams
482 U.S. 386 (Supreme Court, 1987)
Mesa v. California
489 U.S. 121 (Supreme Court, 1989)
Empire Healthchoice Assurance, Inc. v. McVeigh
547 U.S. 677 (Supreme Court, 2006)
Martin v. Franklin Capital Corp.
546 U.S. 132 (Supreme Court, 2005)
Watson v. Philip Morris Companies, Inc.
551 U.S. 142 (Supreme Court, 2007)
Knudson v. Systems Painters, Inc.
634 F.3d 968 (Eighth Circuit, 2011)
Green v. Ameritrade, Inc.
279 F.3d 590 (Eighth Circuit, 2002)
Shannon Jacks v. Meridian Resource Company
701 F.3d 1224 (Eighth Circuit, 2012)
Dodson v. Allstate Insurance
47 S.W.3d 866 (Supreme Court of Arkansas, 2001)
Baker v. Martin Marietta Materials, Inc.
745 F.3d 919 (Eighth Circuit, 2014)
Johnson v. Showers
747 F.2d 1228 (Eighth Circuit, 1984)
Richmond v. Southwire Co.
980 F.2d 518 (Eighth Circuit, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
Nash v. Little Rock Housing Authority, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nash-v-little-rock-housing-authority-ared-2021.