Painter's Mill Grille, LLC v. Howard Brown

716 F.3d 342, 2013 WL 2284874, 2013 U.S. App. LEXIS 10530
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 24, 2013
Docket12-1357
StatusPublished
Cited by620 cases

This text of 716 F.3d 342 (Painter's Mill Grille, LLC v. Howard Brown) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Painter's Mill Grille, LLC v. Howard Brown, 716 F.3d 342, 2013 WL 2284874, 2013 U.S. App. LEXIS 10530 (4th Cir. 2013).

Opinion

Affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Judge DUNCAN and Judge FLOYD joined.

OPINION

NIEMEYER, Circuit Judge:

In this appeal, we evaluate the legal sufficiency of a complaint filed by Painter’s Mill Grille, LLC, the owner and operator of a restaurant in Owings Mills, Maryland, and its principals against the restaurant’s landlord, 100 Painters Mill, LLC, and its agents. The complaint alleges that the landlord and its agents, motivated by racial animus, interfered with Painter’s Mill Grille’s business and its opportunity to sell the restaurant, including its leasehold interest, in violation of 42 U.S.C. §§ 1981, 1982, and 1985(3), as well as state tort principles.

The district court dismissed the complaint under Federal Rule of Civil Procedure 12(b)(6), finding generally that Painter’s Mill Grille’s principals did not have standing to be plaintiffs and that Painter’s Mill Grille did not set forth sufficient “facts to state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). We agree and accordingly affirm.

I

Painter’s Mill Grille operated a restaurant known as Cibo’s Bar & Grill, leasing the premises from 100 Painters Mill. The long-term lease, which commenced in 2002, provided that Painter’s Mill Grille could not assign its leasehold rights without 100 Painters Mill’s consent.

The relationship between landlord and tenant was a rocky one. Painter’s Mill Grille repeatedly failed to pay rent as due, leading 100 Painters Mill to obtain multiple judgments against it for unpaid rent. In October 2008, Painter’s Mill Grille entered into an Asset Purchase Agreement with Earnest and Betty Hines, who agreed to purchase Painter’s Mill Grille’s interest in the restaurant through their company CiboGrille, LLC, but the deal fell through sometime after April 2009. In January 2010, Painter’s Mill Grille filed for bankruptcy protection, but the proceeding was later dismissed.

Painter’s Mill Grille and its principals commenced this action against 100 Painters Mill, as well as 100 Painters Mill’s parent company, David S. Brown Enterprises, Ltd., and three employees of both companies, Howard S. Brown, Lee Sachs, and Carmella Bell, seeking damages for what they allege was the defendants’ racially motivated interference with the restaurant’s business and with the contract between Painter’s Mill Grille and the Hineses’ company.

In the complaint, the plaintiffs alleged that during the course of the lease with 100 Painters Mill, Painter’s Mill Grille’s “clientele began to change until it became predominantly African-American. As the racial mix of the clientele changed, all of the Defendants became progressively more hostile to the Plaintiffs.” Without *346 reciting when, where, and under what circumstances, the plaintiffs alleged that Brown, Sachs, and Bell “would refer to [the restaurant’s] African-American clientele as the ‘Element,’ the ‘Undesirable Element,’ or ‘Niggers.’ ” They alleged that 100 Painters Mill arbitrarily charged rent, common area maintenance fees, and attorneys’ fees and that it unreasonably refused to allow the restaurant to use the patio and to install proper signage to advertise the business. They claimed that the defendants repeatedly turned off lights in the common area, which was used to access the restaurant, or locked the doors to the common area, barring access of patrons. They alleged that the defendants had refused to accept money tendered for rent and that the rent court prosecutions were based in part on unsubstantiated amounts and were intended to drive Painter’s Mill Grille “out of their building and out of business.” They also alleged that Brown, Sachs, and Bell instructed fellow employees not to patronize the restaurant.

As a result of the defendants’ “constant harassment,” the plaintiffs alleged that Painter’s Mill Grille decided to sell its business and, pursuant to that decision, entered into the Asset Purchase Agreement with the Hineses. After the appropriate approval was received from Baltimore County to assign the liquor license, the parties met in April 2009 to discuss the transaction. 100 Painters Mill was represented at the meeting by its in-house attorneys Sachs and Bell. During the course of that meeting, the plaintiffs alleged that Sachs asked the Hineses, who are African-American, if they were going to open another “chicken and waffle shack,” and both Sachs and Bell made “unfounded derogatory comments and accusations about [the restaurant], the Plaintiffs, and the Plaintiffs’ African-American clientele.” The plaintiffs also alleged that the defendants unreasonably withheld consent from Painter’s Mill Grille to assign its lease interest to the Hineses’ company. They claimed that the derogatory comments and the withheld consent were designed to — and, in fact, did — cause the Hineses’ company to breach its contract with Painter’s Mill Grille.

Based on these allegations, the plaintiffs asserted multiple claims, including seven counts alleging violations of 42 U.S.C. §§ 1981,1982,1985(3), and state law prohibitions against interference with contracts and economic relationships. 1

The defendants filed motions to dismiss the complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6) and, alternatively, for summary judgment under Rule 56. By order dated February 21, 2012, the district court granted the motions to dismiss. In its memorandum opinion, the court first addressed the ability of Painter’s Mill Grille’s principals (Alessandro Vitale, Sergio Vitale, and Ri-naldo Vitale) to be plaintiffs in the action, concluding that “the Vitales, as members of Painter’s Mill Grille, LLC, cannot bring individual claims against Defendants for injuries to their business” and that, consequently, “Painters’ Mill Grille, LLC is the only Plaintiff with standing to bring this action.”

The court also dismissed with prejudice all claims against Sachs and Bell, holding that, as lawyers “acting within the scope of their legal representation of Brown Enterprises and 100 Painters Mill, LLC, they are not individually liable.”

*347 The court then dismissed without prejudice the plaintiffs’ claims of racial discrimination under 42 U.S.C. §§ 1981 and 1982

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716 F.3d 342, 2013 WL 2284874, 2013 U.S. App. LEXIS 10530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/painters-mill-grille-llc-v-howard-brown-ca4-2013.