Nguyen v. City Of San Jose

CourtDistrict Court, N.D. California
DecidedAugust 20, 2024
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. 2024).

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 DENYING MOTION TO DISMISS 10 v.

11 CITY OF SAN JOSE, et al., Re: Dkt. No. 93 Defendants. 12

13 Plaintiff, Dai Trang Thi Nguyen (“Plaintiff”), brings this action pursuant to 42 U.S.C. § 14 1983 against Defendant City of San Jose (“City”) and individual Defendants Joseph Hatfield 15 (“Hatfield”), Rachel Roberts (“Roberts”), and Edgardo Garcia (“Garcia”) (collectively, 16 “Supervisor Defendants”) (all together with the City, “Defendants”), as well as individual 17 Defendant William Gerry (“Gerry”), alleging that Gerry violated her constitutional rights by 18 sexually assaulting and extorting Plaintiff during his code enforcement inspections of her massage 19 business, and alleging that the City and Supervisor Defendants allowed Gerry’s conduct to occur 20 in deliberate indifference to Plaintiff’s constitutional rights. See Second Am. Compl. (“SAC”), 21 ECF No. 93. 22 Before the Court is Defendants’ third motion to dismiss. Mot. to Dismiss (“Mot.”), ECF 23 No. 93. Plaintiff filed an opposition, and Defendants filed a reply. Opp’n to Mot. (“Opp’n”), ECF 24 No. 96; Reply in Supp. of Mot. (“Reply”), ECF No. 98. 25 Upon careful review of the relevant documents, the Court finds this matter suitable for 26 decision without oral argument pursuant to Local Rule 7-1(b). For the following reasons, the 27 Court DENIES Defendants’ motion to dismiss. I. BACKGROUND 1 A. Factual Background 2 The Court previously summarized Plaintiff’s factual allegations in its prior orders, and 3 those allegations remain largely unchanged. See Order Granting with Leave to Amend Mot. to 4 Dismiss (“First MTD Order”), ECF No. 52; Order Granting Mot. to Dismiss with Leave to Amend 5 (“Second MTD Order”), ECF No. 89. The Court will therefore only discuss the allegations 6 relevant to the present motion. 7 Plaintiff alleges that Gerry, former code enforcement inspector employed by the City’s 8 Code Enforcement Division, sexually assaulted and extorted Plaintiff, a massage business owner 9 and operator of Vietnamese descent with limited English language, during his code enforcement 10 inspections of her business. See SAC ¶¶ 9, 17, 70. Plaintiff also alleges that the City allowed this 11 to happen by implementing a custom or practice of sending unsupervised solo male code 12 enforcement inspectors to inspect massage businesses knowing the risk that this custom or practice 13 may lead to violations of the often-vulnerable employees and owners’ constitutional rights. See, 14 e.g., id. ¶ 4, 10, 33, 62–63. Plaintiff further alleges that Hatfield and Roberts, Code Enforcement 15 Division supervisors, as well as Garcia, Chief of Police at the San Jose Police Department 16 (“SJPD”), allowed Gerry to conduct unsupervised solo code enforcement inspections knowing the 17 risk that Gerry may violate Plaintiff’s constitutional rights. See, e.g., id ¶¶ 38, 64–66. 18 1. Prior Complaints About Gerry 19 Prior to the conduct alleged here, Plaintiff alleges that Defendants received two complaints 20 regarding Gerry. On October 25, 2018, shortly after Gerry began acting as the City’s sole code 21 enforcement inspector of massage businesses, Defendant Roberts in the Code Enforcement 22 Division received an anonymous letter (“Anonymous Letter”) addressed to Gerry that included 23 photos of Gerry in a close embrace with an Asian woman who was later identified as an employee 24 of a massage business that Gerry had inspected. Id. ¶¶ 43, 44. The letter threatened to publicize 25 the photos of Gerry and expose the fact that he was having intimate relationship with the woman 26 pictured unless Gerry closed a competitor’s massage business. Id. Defendant Roberts gave the 27 1 Anonymous Letter to the SJPD to conduct a criminal investigation of the Anonymous Letter’s 2 author, not Gerry. Id. ¶ 46. Plaintiff alleges that neither Roberts nor the City investigated Gerry 3 for the conduct alleged in the Anonymous Letter. Id. 4 A few months later, on December 16, 2018, the City’s “Whistleblower Hotline” received 5 an anonymous email complaint (“Whistleblower Complaint”) from a female owner of a massage 6 business accusing Gerry of preying on female Asian massage workers. Id. ¶ 47. According to the 7 Whistleblower Complaint, Gerry twice came to the author’s business while she was attempting to 8 obtain a permit and misused his authority to sexually assault her and propose quid pro quo 9 arrangements. Id. The arrangements involved exchanging sex and/or money for the issuance of 10 massage permits. Id. The email also stated that Gerry accepted bribes in exchange for issuing 11 permits to other massage businesses that engaged in the illicit sex trade. Id. 12 Plaintiff newly alleges that the City and all Supervisor Defendants knew of this 13 Whistleblower Complaint because, pursuant to the City’s Administrative Policy Manual titled 14 “Whistleblower Hotline Policy,” this email would have been sent to all Supervisor Defendants. 15 Id. ¶ 57, 58. Section 1.28 of the Whistleblower Hotline Policy, which was in effect at the time of 16 the Whistleblower Complaint, specifically states that criminal allegations sent through the 17 whistleblower hotline are referred to the SJPD and the accused employee’s department is notified, 18 unless it may interfere with a police investigation. Id. Based on this policy, Plaintiff alleges that 19 Garcia would have received the Whistleblower Complaint when forwarded to the SJPD, and 20 Roberts and Hatfield would have received the Whistleblower Complaint as supervisors in the 21 Code Enforcement Division. Id. ¶ 63. Despite this knowledge, Plaintiff alleges that the City and 22 Supervisor Defendants did not investigate any of the allegations contained in the Whistleblower 23 Complaint. Id. ¶¶ 63, 64. 24 2. Gerry’s Conduct Toward Plaintiff 25 Gerry first visited Plaintiff’s massage business, Soft Touch Spa (“Spa”), on January 8, 26 2019, about one month after the Whistleblower Complaint, at which time he wore a visible City 27 identification badge and drove a white City vehicle bearing the San Jose municipal decals on its 1 doors. Id. ¶ 74. Plaintiff was not at the Spa at that time, but Gerry still proceeded to sit in 2 between two female employees on the couch and massage each woman’s back under their blouses 3 before leaving. Id. 4 Gerry visited again the next day while Plaintiff was present, again wearing his badge and 5 driving his City vehicle, and inspected the premise with Plaintiff that day. Id. ¶ 75. Gerry 6 informed Plaintiff that she would need to spend over $50,000 in construction costs to bring the 7 business into compliance with the local massage ordinance, or he could keep the business open for 8 her if she paid him an upfront fee of $10,000 in cash, followed by monthly payments of $2,000. 9 Id. Plaintiff understood that these payments would fulfil her obligation to comply with City code 10 requirements. Id. Gerry also asked to speak to Plaintiff privately, and once alone, asked to see a 11 tattoo on Plaintiff’s back. Id. Believing Gerry was a police officer, Plaintiff complied. Id. 12 Plaintiff believed her failure to comply could result in the closure of the Spa. Id. 13 Gerry returned the next day, on January 10, 2019, to collect his first extortion payment of 14 $10,000. Id. at ¶ 76. After receiving the $10,000 in cash, Gerry forced Plaintiff to perform oral 15 sex on him. Id. Gerry returned to the business on three more occasions in February to collect a 16 total of $24,000 more in extortion payments. Id. ¶¶ 79, 81, 84. Gerry also made multiple calls to 17 Plaintiff warning her to keep the Spa closed on certain days when there was a scheduled inspection 18 with the SJPD. Id. ¶¶ 78, 83.

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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-2024.