Octavian Aker v. City of Dayton, et al.

District Court, E.D. Kentucky·Decided August 4, 2026·No. 2:24-cv-00083·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF KENTUCKY NORTHERN DIVISION AT COVINGTON

CIVIL ACTION NO. 24-83-DLB-CJS

OCTAVIAN AKER PLAINTIFF

v. MEMORANDUM OPINION AND ORDER

CITY OF DAYTON, et al. DEFENDANTS

* * * * * * * * * * * * * * * * I. INTRODUCTION This matter is before the Court upon the Motion for Summary Judgment by Defendants City of Dayton and Cassie Patterson (Doc. # 30) and the Motion for Partial Summary Judgment by Plaintiff Octavian Aker (Doc. # 32). The parties having filed their respective Responses (Docs. # 37 and 38) and Replies (Docs. # 39 and 40), the Motions are ripe for the Court’s review. For the following reasons, Aker’s Motion for Partial Summary Judgment is denied, and Defendants’ Motion for Summary Judgment is granted in part and denied in part. II. FACTUAL AND PROCEDURAL BACKGROUND This case stems from a series of administrative penalties and protocols levied by a Kentucky municipality against a landlord. Plaintiff Octavian Aker is a property owner and landlord who owns thirteen pieces of real property in the City of Dayton, Kentucky (“the City”), a Kentucky municipality and a Defendant in this case. (Doc. # 32 at 3). Defendant Cassie Patterson is the City of Dayton’s Code Enforcement Officer and has worked for the City since 2020. (Doc. # 26 at 9:6–9). In September 2022, the City enacted a new ordinance titled “Residential Rental License and Safety Inspection Program.” (Doc. # 30 at 4; Doc. # 32 at 3). To comply with the ordinance, rental property owners in the city were required to acquire a rental inspection license for each property they own, submit an application form to the City for each license, and pay an annual fee per rental unit owned. (Doc. # 32 at 3; see also Doc.

# 1-5 at 6). The ordinance took effect on January 1, 2023 and required each landlord to complete the application and pay the associated fees by April 15, 2023, with payment of the annual fee due on April 15th of each calendar year. (Doc. # 1-5 at 6; Doc. # 1-6). On January 3, 2023, the City sent all qualifying landlords, including Octavian Aker, a letter advising them of the new licensure program. (Doc. # 25 at 28:7–29:24; Doc. # 1-6). The letter detailed the program’s requirements, including that the program had taken effect on January 1, 2023 and that property owners needed to register their properties and pay the required fees by April 15, 2023. (Doc. # 1-6). Aker acknowledged that he read the letter after receiving it and understood its contents. (Doc. # 25 at 29:16–

24). The controversy of this case started on February 15, 2023, when the City issued Aker a series of citations for his failure to abide by the new ordinance. (See Doc. # 1-8). At the time he received the citations, Aker had not yet submitted any of the required applications or paid any of the required fees because he believed they were not due for another two months on April 15. (Doc. # 25 at 75:14–19). He received a $140 fine—$40 for the unpaid annual rental license fee, $100 as a penalty for nonpayment—for each piece of property he owned. (Doc. # 1-8). As part of the enforcement procedure, Aker was given the choice to either pay the fines within seven days of issuance of the citations or appeal the decisions to the City of Dayton Code Enforcement Board (“the Board”) for a hearing. (Id. at 22). He opted for the latter, submitting his written appeals of the program citations on February 21, 2023.1 (Doc. # 25 at 48:12–24; Doc. # 26 at 99:19–25). Thirteen days later, Dayton City Code Enforcer Cassie Patterson wrote Aker a letter informing him that his appeals needed to be resubmitted on the correct forms and provided him with the

required paperwork to properly submit the appeals. (Doc. # 1-9). Aker resubmitted his appeals on the correct forms on or about March 15, 2023. (Doc. # 1-10). Aker’s hearing was held before the Board on May 15, 2023, two months after filing the correct appeals and one month after he was required to have his licenses. (Doc. # 26 at 77:8–16). Aker was present at the hearing with his counsel. (Doc. # 25 at 77:22– 25). Aker testified and offered evidence at the hearing, explaining that the citations were prematurely issued and substantively incorrect and conflicting. (Id. at 82:24–84:2; 85:18– 87:1). His attorney cross-examined Cassie Patterson. (Id. at 87:8–23). At the end of the hearing, the Board upheld the City’s citations and imposed fines against Aker for failing

to register and pay the required fees for the license program. (See Doc. # 1-14). Aker was fined a total of $61,680.00 for his rental license violations and $500 for his vacant and abandoned properties violations, but he claims he did not receive a final version of the Board’s order. (Id.; Doc. # 1-16 at 4; Doc. # 25 at 91:10–13). Each of the Board’s Final Orders included a paragraph titled “Acknowledgment of Respondent,” outlining the Respondent’s acknowledgements of the Board’s decision, right to appeal the decision to

1 The record reflects that the City also notified Aker that several of his properties were being considered for abandoned or blighted status. (Doc. # 1-12). Those notices did not include any fines or citations. (Id.). Aker submitted hearing request forms for the abandoned property notices on or about March 20, 2023. (Doc. # 26 at 114:12–14). Aker’s hearing on the abandoned property notices took place on May 15, 2023, in tandem with his hearing on the rental inspection licenses. (Doc. # 25 at 76:5–77:21). Campbell County District Court and understanding of the imposition of a lien on his properties in the event of nonpayment of the civil fines levied against him. (See Doc. # 1-14 at 5). There is also a signature line for Respondent’s signature below each acknowledgment paragraph. (Id.). Curiously, each signature line is signed by Cassie Patterson, despite Aker being the listed Respondent in the case caption of each Order.2

(Compare Docs. # 1-14 at 1 and 1-16 at 1 with Docs. # 1-14 at 6 and 1-16 at 6). Aker did not appeal the Board’s decisions to the Campbell County District Court. (Doc. # 25 at 96:4–16). The City mailed Aker a Notice of Final Order for each property on June 1, 2023, which he claims he never received. (Doc. # 30-2 at 1–2, 7–8, 13–14, 19–20, 25– 26, 31–32, 40–41, 46–47, 52–53, 61–62, 67–68, 73–74, 82–83; see also Doc. # 32 at 62 ¶ 22). Nearly two months after the hearing, on July 5, 2023, Patterson and the City executed lien affidavits for Aker’s properties pursuant to the Board’s final order. (Doc. # 26 at 137:14–22). The City placed liens on Aker’s properties shortly thereafter. (Doc. #

27 at 85:4–12). As part of the foreclosure process, Aker and the City entered a settlement agreement where Aker agreed to make his best efforts to sell his properties within ninety days. (Doc. # 1-18). As part of the agreement, Aker agreed to list all of his properties with a licensed real-estate broker within fourteen days of executing the agreement. (Id.). He further agreed to pay his debts to the City from the proceeds of the sales of his properties. (Id.). In exchange, the City agreed to suspend its code-enforcement activities—levying new fines and filing new liens on his properties—against him for ninety days. (Id.). The City also agreed to dismiss its two existing Campbell County court cases

2 Patterson acknowledged in her deposition that her name should not have been listed as Respondent and that her signing as Respondent was in error. (Doc. # 26 at 126:23–128:9). against Aker. (Id.). The parties formalized this settlement agreement on July 26, 2023. (Id.). Over the next ninety days, Aker made efforts to comply with the parties’ agreement. He worked with a broker to list his properties, although it is unclear if they were ever listed in the required ninety-day window. (Doc. # 25 at 114:25–116:11). He

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