Nguyen v. City Of San Jose

CourtDistrict Court, N.D. California
DecidedMarch 29, 2022
Docket5:21-cv-00092
StatusUnknown

This text of Nguyen v. City Of San Jose (Nguyen v. City Of San Jose) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nguyen v. City Of San Jose, (N.D. Cal. 2022).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 8 DAI TRANG THI NGUYEN, Case No. 5:21-cv-00092-EJD

9 Plaintiff, ORDER GRANTING CITY OF SAN JOSE’S MOTION TO DISMISS WITH 10 v. LEAVE TO AMEND

11 CITY OF SAN JOSE, et al., Re: Dkt. No. 30, 47 Defendants. 12

13 Plaintiff Dai Trang Thi Nguyen brings this action against Defendants City of San Jose 14 (“the City”), William Gerry, and Does 1-100 for violation of her Fourteenth Amendment rights to 15 due process and equal protection under 42 U.S.C. § 1983. Compl., Dkt. No. 1. The City now 16 moves pursuant to Federal Rule of Civil Procedure 12(b)(6) to dismiss the claims against it based 17 on municipal liability under Monell v. Dep’t of Soc. Servs. of City of New York, 436 U.S. 658, 691 18 (1978). The Court heard oral argument on the motion on August 21, 2021. Dkt. No. 44. Having 19 considered the parties’ written submissions and arguments made at the hearing, the Court 20 GRANTS the City’s motion to dismiss the claims against it with leave to amend. 21 I. BACKGROUND 22 A. Factual Background 23 This case concerns disturbing allegations of abuse of power and sexual coercion and 24 assault by a City employee against Nguyen, a licensed massage therapist and naturalized U.S. 25 citizen of Vietnamese descent with limited English skills. Compl. ¶¶ 27-28. 26 1. The massage establishment ordinance 27 In 2016, the City passed Ordinance No. 29662 (“the Massage Ordinance”), which amended 1 Chapter 6.44 of Title 6 of the San Jose Municipal Code, in order to combat prostitution, human 2 trafficking, and other criminal or public health offenses occurring in the approximately 5,300 3 massage businesses within the City. Id. ¶¶ 1, 24, 81-89, Ex. 7. The Massage Ordinance imposed 4 new requirements for massage businesses relating to licensing, permitting, and other municipal 5 code requirements. Id. ¶¶ 2, 24, 81-89, Ex. 7. Section 6.44.520 of the Massage Ordinance 6 expressly authorized the Police Department (“SJPD”), the Fire Department, and the Planning, 7 Building and Code Enforcement (“PBCE”) Department to inspect massage businesses and their 8 records for determining compliance with the law. Id. ¶ 88, Ex. 7 at 18. 9 In 2007, the City hired Gerry as a Code Enforcement Inspector in the Code Enforcement 10 Division of the PBCE Department. Id. ¶ 20. According to the complaint, the City hired him 11 without performing a background check, which would have revealed that he had declared 12 bankruptcy in 1997. Id. ¶ 21. After the City passed the Massage Ordinance, in 2017, Gerry was 13 designated as “Code Enforcement Inspector II—Massage” and charged with overseeing 14 implementation and enforcement of the Massage Ordinance’s new requirements in close 15 collaboration with SJPD’s Vice Unit. Id. ¶¶ 25-26. Gerry reported directly to Joseph Hatfield, 16 supervisor of the Special Programs Group within the Special Operations Section of the Code 17 Enforcement Division. Hatfield in turn reported to Rachel Roberts, who served as Special 18 Operations Division Manager and Acting Head Code Enforcement Official. Id. ¶ 22. Gerry was 19 the sole Code Enforcement Inspector tasked with Massage Ordinance enforcement duties. Id. ¶¶ 20 3, 25. 21 2. Nguyen’s dealings with Gerry 22 In November 2018, Nguyen opened a massage therapy spa business in San Jose. Id. ¶¶ 28- 23 29. On December 20, 2018, Gerry issued a “City of San Jose – Compliance Order” on PBCE 24 letterhead to the owner of the premises that Nguyen leased for her business, which the owner 25 passed on to Nguyen. Id. ¶ 30, Ex. 2. The Compliance Order stated that Nguyen’s spa was 26 operating without a massage business permit and license as required by the Municipal Code and 27 directed all massage operations to cease immediately. Id. ¶ 30. 1 On January 8, 2019, Gerry visited Nguyen’s spa for the first time. Id. ¶ 31. He drove a 2 white City of San Jose vehicle bearing a San Jose municipal decal on its side, and he wore a white 3 City identification placard visibly clipped to his belt. Id. ¶¶ 31-32. After being told that Nguyen 4 was not available that day, Gerry sat next to two of her female employees and touched their backs 5 under their blouses. Id. ¶ 32. After an uncomfortably long period, Gerry departed. One of the 6 employees later told Nguyen that she was afraid of him and stated, “He thinks he can do whatever 7 he wants to my body.” Id. 8 Gerry returned to the spa the next day, again driving his City vehicle and wearing his City 9 identification. Id. ¶ 33. Nguyen believed that he was police officer. Id. During his visit, Gerry 10 identified unpermitted construction in the spa not shown on City plans and informed Nguyen that 11 bringing the construction into compliance with the Municipal Code would cost $50,000. Id. ¶ 34. 12 He then asked to discuss the matter privately with Nguyen. Id. ¶ 35. After going into the spa’s 13 employee break room, Gerry asked to see the entirety of Nguyen’s back tattoo, and although 14 surprised, she complied. He then handed her a City application packet for massage permits. Id., 15 Ex. 3. Based Gerry’s statements to her, Nguyen believed that failure to cooperate with him would 16 result in her spa’s closure. Id. ¶ 36. 17 Gerry told Nguyen that she could keep her spa open if she paid him an upfront fee of 18 $10,000 in cash, followed by monthly payments of $2,000. Id. ¶ 37. She understood that paying 19 him meant that she would not have to comply with Municipal Code requirements. Gerry 20 handwrote a payment schedule on the back of the permit application packet. Id., Ex. 3. 21 The following morning, on January 10, 2019, Gerry returned to collect his initial payment 22 of $10,000 before the spa opened and before any other employees were present. Id. ¶ 38. After 23 Nguyen gave Gerry the $10,000, he forced her to perform oral sex on him. Id. ¶ 39. Nguyen 24 believed that she had no choice but to comply with Gerry’s demands because she believed that her 25 safety, livelihood, massage licenses and permits, and legal status with the City depended on 26 obeying him. Id. ¶ 42. Based on past negative experiences with law enforcement in Vietnam, 27 Nguyen distrusted the police and government and believed that reporting Gerry’s misconduct 1 would only result in more problems for her. Id. 2 On January 11, 2019, Gerry contacted Nguyen and told her to keep the spa closed on 3 January 14, 2019, because SJPD was scheduled to inspect the spa that day. Id. ¶ 40. Gerry had 4 advance notice of this inspection from the SJPD Vice Unit. Id. Nguyen closed the spa on January 5 14. Id. 6 Per the payment schedule he wrote down for Nguyen, Gerry returned to spa on February 1, 7 2019 to collect his cash payment of $2,000. Id. ¶ 41. He again forced Nguyen to perform oral sex 8 on him. Id. 9 On February 19, 2019, Gerry requested an earlier meeting with Nguyen than previously 10 agreed upon. Id. ¶ 43. He proposed a new deal: in exchange for an additional $20,000, he would 11 arrange for the City to allow the spa to continue operating for three years without inspections by 12 removing the spa from the City’s records. Nguyen was shocked but collected the sum by 13 borrowing money and selling jewelry. Id. The next day, Gerry returned to collect the $20,000 in 14 cash and again forced Nguyen to perform oral sex on him. Id. ¶ 44. 15 On February 26, 2019, Gerry texted Nguyen to warn her of an undercover sting operation 16 that SJPD planned for later that day. Id. ¶ 45. 17 On February 27, 2019, Gerry returned early for his March payment of $2,000. Id. ¶ 46.

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Nguyen v. City Of San Jose, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nguyen-v-city-of-san-jose-cand-2022.