Patel v. CITY OF SAUK CENTRE

631 F. Supp. 2d 1139, 2007 U.S. Dist. LEXIS 56864, 2007 WL 2287874
CourtDistrict Court, D. Minnesota
DecidedAugust 3, 2007
DocketCase 05-CV-2866 (PJS/RLE)
StatusPublished
Cited by2 cases

This text of 631 F. Supp. 2d 1139 (Patel v. CITY OF SAUK CENTRE) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patel v. CITY OF SAUK CENTRE, 631 F. Supp. 2d 1139, 2007 U.S. Dist. LEXIS 56864, 2007 WL 2287874 (mnd 2007).

Opinion

ORDER

PATRICK J. SCHILTZ, District Judge.

This matter is before the Court on the objection of plaintiffs Sudha Patel and Bholae, Inc., to the April 20, 2007 Report and Recommendation (“R & R”) of Chief Magistrate Judge Raymond L. Erickson. The Court has reviewed de novo those portions of the R & R to which plaintiffs have objected, as required by 28 U.S.C. § 636(b)(1) and Fed.R.Civ.P. 72(b), has considered carefully all of plaintiffs’ objections, and adopts Judge Erickson’s thorough and well-reasoned R & R [Docket No. 42].

Based on the foregoing and on all of the files, records, and proceedings herein, the Court OVERRULES plaintiffs’ objection [Docket No. 43] and ADOPTS Judge Erickson’s April 20, 2007 Report and Recommendation [Docket No. 42], Accordingly, IT IS HEREBY ORDERED THAT:

1. Defendants’ motion for summary judgment [Docket No. 20] is GRANTED IN PART as follows:
a. Plaintiffs’ claims for violations of their rights under the U.S. Constitution to equal protection and procedural and substantive due process *1142 are DISMISSED WITH PREJUDICE AND ON THE MERITS.
2. Plaintiffs’ state-law claims are DISMISSED WITHOUT PREJUDICE pursuant to 28 U.S.C. § 1367(c)(3).

LET JUDGMENT BE ENTERED ACCORDINGLY.

REPORT AND RECOMMENDATION

RAYMOND L. ERICKSON, United States Chief Magistrate Judge.

I. Introduction

This matter came before the undersigned United States Magistrate Judge pursuant to a special assignment, made in accordance with the provisions of Title 28 U.S.C. § 636(b)(1)(B), upon the Defendants’ Motion for Summary Judgment. A Hearing on the Motion was conducted on December 7, 2006, at which time, the Plaintiffs Sudha Patel (“Patel”), and Bholae, Inc. (“Bholae”), appeared by Richard I. Diamond, Esq., and the Defendants appeared by Ryan M. Zipf, Esq.

For reasons which follow, we recommend that the Defendants’ Motion for Summary Judgment be granted.

II. Factual and Procedural Background

This action arises from the Plaintiffs’ application for a liquor license (“the License”) from the Defendants City of Sauk Centre (“the City”), and the Sauk Centre City Council (“the Council”). The license application was submitted by Bholae, which is a Minnesota corporation that is solely owned by Patel, who is a Hindu woman, and was originally from India. During the relevant period of time, Patel lived with her husband, Paresh Patel (“Paresh”), in the Super 8 Motel (“the Motel”) that was owned by Paresh, through the corporate entity Sauk Centre Lodging. 1 See, Complaint, at ¶¶ 1.1 and 1.2; Plaintiffs’ Memorandum in Opposition, Docket No. 32, at p. 2. Patel was not employed by Paresh in his operation of the Motel, and worked two (2) separate jobs with other employers. See, Deposition of Sudha Patel (“Patel Dep.”), Affidavit of Ryan M. Zipf (“ZipfAff.”), Docket No. 23-2, Exh. B, at pp. 16-17.

In 1996, the lower level of the Motel was converted into a banquet hall known as the Hayloft (“the Hayloft”). See, Deposition of Paresh Patel (“Paresh Dep.”), Zipf. Aff, Exh. A, at p. 14. In 1998, Patel successfully applied for a License for the Hayloft, after passing a criminal background check by the City, which spanned over the preceding seven (7) years. See, Complaint, at ¶ 4.1; Defendants’ Motion in Support of Summary Judgment, supra at 3 n. 2. In 1999, Patel transferred the License to Margaret Lindhorst (“Lindhorst”), who allegedly is a Caucasian woman, and who operated a catering business in the Hayloft, pursuant to the License, without incident until 2004. See, Complaint, at ¶¶ 4.3-4.5.

In 2004, the City mailed Lindhorst an annual renewal notice for the License, and Lindhorst informed Patel that she was not interested in renewing the License. Id. at ¶¶ 4.6-4.7. Patel, as well as Paresh, brought the renewal form, which had been submitted to Lindhorst, to the City Clerk’s Office, and met with City Clerk Karen Jennissen (“Jennissen”). Jennissen directed Patel to cross out Lindhorst’s name on the form, insert her own name, and provide the City a check for the renewal amount. See, Paresh Dep., at pp. 24-25.

Patel complied with Jennissen’s instructions, and submitted the renewal form, along with a check — which was signed by Paresh — for $1,950.00, and drawn on the account of “Sauk Center Lodging, Inc *1143 d/b/a/ Super 8 Motel,” which the City subsequently cashed. Id. at ¶ 4.8; Paresh Dep., at pp. 28-26. Patel actually sought to have the License for the Hayloft transferred to her. Id.

On June 2, 2004, the Council voted unanimously to approve the renewal of the License, contingent on the submission of the appropriate insurance paperwork, and published the License approval in the newspaper. See, Complaint, at ¶¶ 4.8, 5.1-5.2; Zipf Aff., Exh. E, at p. 3.

In a letter dated June 18, 2004, the City notified Patel that it had mistakenly approved the License as a renewal, and that she had not filed the proper paperwork, because her request was actually a transferral of the License. The letter further advised her that an advertisement in the newspaper, on June 22, 2004, would inform the public that a Hearing would be held on July 7, 2004, so as to consider the applications of both Patel, and Bruce Rohde (“Rohde”), who assertedly is a Caucasian male. See, Plaintiffs’ Memorandum in Opposition, supra at 4; Zipf. Aff., Docket No. 23-2, at p. 17.

Under the applicable City Ordinances, a liquor license transfer follows the same procedures as a new license application. See, City of Sauk Centre Ordinance Section 701.06, Subdivision 2; Section 702.13, Zipf Aff, Ex. D. A liquor license transfer requires the applicant to fill out the paperwork for a new liquor license application, and submit to a criminal background investigation. See, Affidavit of Coralee Fox (“Fox Aff. ”), Docket No. 22, Att. 1, at ¶ 4. The City must also provide ten (10) days published notice to the public before a Hearing can be conducted on a transfer, or a new liquor license application. See, City Ordinance Section 701.06, Subdivision 1, Zipf Aff, Ex. D. The City Council is required to investigate all of the facts provided in the application and, in its discretion, it may grant, or refuse, the application. Id.

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631 F. Supp. 2d 1139, 2007 U.S. Dist. LEXIS 56864, 2007 WL 2287874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patel-v-city-of-sauk-centre-mnd-2007.