Powell v. Ohana Military Communities, LLC

CourtDistrict Court, D. Hawaii
DecidedAugust 21, 2024
Docket1:24-cv-00184
StatusUnknown

This text of Powell v. Ohana Military Communities, LLC (Powell v. Ohana Military Communities, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Powell v. Ohana Military Communities, LLC, (D. Haw. 2024).

Opinion

UNITED STATES DISTRICT COURT

DISTRICT OF HAWAII

CLEOPHAS C. POWELL, ON BEHALF OF CIV. NO. 24-00184 LEK-KJM HIMSELF AND ALL SIMILARLY SITUATED,

Plaintiff,

vs.

OHANA MILITARY COMMUNITIES, LLC, HUNT MH PROPERTY MANAGEMENT, LLC, DOE DEFENDANTS 1-10,

Defendants.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS PLAINTIFF’S CLASS ACTION FIRST AMENDED COMPLAINT FILED NOVEMBER 21, 2023

Before the Court is Defendants Ohana Military Communities, LLC (“Ohana”) and Hunt MH Property Management, LLC’s (“Hunt” and collectively, “Defendants”) Motion to Dismiss Plaintiff’s Class Action First Amended Complaint Filed November 21, 2023 (“Motion”), filed on May 13, 2024. [Dkt. no. 9.] Plaintiff Cleophas C. Powell (“Plaintiff”), on behalf of himself and all similarly situated, filed the memorandum in opposition on June 26, 2024, and Defendants filed their reply on July 3, 2024. [Dkt. nos. 13, 14.] This matter came on for hearing on July 17, 2024. For the reasons set forth below, Defendants’ Motion is denied insofar as the Court finds that Plaintiff has adequately alleged injury-in-fact, granted insofar as the portion of Count V alleging an unfair or deceptive trade or practice (“UDAP”) claim is dismissed with prejudice, and granted in part and denied in part insofar as the portion of Count V alleging an unfair methods of competition (“UMOC”) claim is dismissed without prejudice. BACKGROUND

This is a putative class action about Defendants’ role in the provision of contaminated water to their tenants, and the subsequent ramifications. The Class Action First Amended Complaint (“Amended Complaint”) was filed in the First Circuit Court of the State of Hawai`i (“state court”) on November 21, 2023, and the case was removed on April 22, 2024. [Defendants Ohana Military Communities, LLC and Hunt MH Property Management, LLC’s Notice of Removal (“Notice of Removal”), filed 4/22/24 (dkt. no. 1), Declaration of Randall C. Whattoff, Exh. 1 (pleadings served on Defendants) at PageID.35-49 (Amended Complaint and Summons).]

The Amended Complaint alleges: Plaintiff1 leases residential housing in the City and County of Honolulu that is managed and leased by Defendants; [id. at ¶¶ 1, 9;] Defendants acquired contaminated water from the United States Navy-operated

1 The Amended Complaint uses “Plaintiffs” to describe Cleophas C. Powell, on behalf of himself and all similarly situated. As previously noted, the Court uses “Plaintiff” to refer to the same. water system following fuel spills at the Red Hill Bulk Fuel Storage Facility (“Red Hill Facility”), which Defendants delivered to Plaintiff; [id. at ¶¶ 11, 19;] tenants entered into leases with Defendants for residential housing, which included the provision of potable water in compliance with state law; [id. at ¶¶ 12-13;] Defendants had knowledge of the risk of water

contamination, and did not warn Plaintiff of this risk; [id. at ¶¶ 18, 40;] and Plaintiff has been forcibly evicted from his homes as a result of Defendants’ failure to provide safe water, [id. at ¶ 20]. The Amended Complaint alleges: Defendants breached their lease agreement with Plaintiff by failing to provide safe water to Plaintiff; [id. at ¶ 32;] and Plaintiff has suffered harm and incurred expenses due to Defendants’ conduct, including overpayment of rent, and loss of use and enjoyment of his home and community, [id. at ¶¶ 33-34, 42, 51, 62, 67, 71]. The Amended Complaint alleges the following claims:

breach of contract against Defendants (“Count I”); [id. at ¶¶ 27-35;] breach of the implied warranty of habitability against Defendants (“Count II”); [id. at ¶¶ 36-43;] violation of Hawai`i Revised Statutes Chapter 521, Landlord Tenant Code against Ohana (“Count III”); [id. at ¶¶ 44-52;] a UDAP claim and UMOC claim in violation of the Hawai`i Revised Statutes Sections 480-2 against Defendants (“Count IV”); [id. at ¶¶ 53- 63;] nuisance against Defendants (“Count V”); [id. at ¶¶ 64-68;] and wrongful eviction against Defendants (“Count VI”), [id. at ¶¶ 69-72]. Plaintiff seeks: general, special, treble, consequential, and punitive damages; attorneys’ fees and costs; disgorgement of profits; return of all rents and other remedies guaranteed by Hawai`i Revised Statutes Chapter 521; prejudgment

interest; and any other appropriate relief. [Id. at pg. 14.] STANDARDS I. Federal Rule of Civil Procedure 12(b)(1) Federal Rule of Civil Procedure 12(b)(1) authorizes a defendant to move for dismissal of an action for lack of subject-matter jurisdiction. “Once challenged, the party asserting subject matter jurisdiction has the burden of proving its existence.” Robinson v. United States, 586 F.3d 683, 685 (9th Cir. 2009) (citation and quotation marks omitted). This district court has stated: FRCP 12(b)(1) also requires a district court to dismiss a complaint for lack of subject matter jurisdiction where a plaintiff lacks standing to sue. See Maya v. Centex Corp., 658 F.3d 1060, 1067 (9th Cir. 2011) (citations omitted) (“[L]ack of Article III standing requires dismissal for lack of subject matter jurisdiction under [FRCP] 12(b)(1).”). When a plaintiff lacks constitutional standing, a suit “is not a ‘case or controversy,’ and an Article III federal court therefore lacks subject matter jurisdiction over the suit.” City of Oakland v. Lynch, 798 F.3d 1159, 1163 (9th Cir. 2015) (quoting Cetacean Cmty. v. Bush, 386 F.3d 1169, 1174 (9th Cir. 2004) (quotations omitted)); City of Los Angeles v. County of Kern, 581 F.3d 841, 845 (9th Cir. 2009).

In determining constitutional standing, the trial court has the authority “to allow or to require the plaintiff to supply, by amendment to the complaint or by affidavits, further particularized allegations of fact deemed supportive of plaintiff’s standing.” Maya, 658 F.3d at 1067 (citation and quotations omitted). “For purposes of ruling on a motion to dismiss for want of standing, both trial and reviewing courts must accept as true all material allegations of the complaint and must construe the complaint in favor of the complaining party.” Namisnak v. Uber Techs., Inc., 971 F.3d 1088, 1092 (9th Cir. 2020) (internal quotations omitted) (citations omitted).

Ye Jiang v. Zhong Fang, CIVIL NO. 20-00100 JAO-KJM, 2020 WL 6889169, at *1 (D. Hawai`i Nov. 23, 2020) (alterations in Ye Jiang). Here, Defendants’ argument that Plaintiff lacks standing because he has failed to plead injury-in-fact poses a facial jurisdictional challenge. See Motion, Mem. in Supp. at 12-13; Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004) (citation omitted). “A ‘facial’ attack accepts the truth of the plaintiff’s allegations but asserts that they are insufficient on their face to invoke federal jurisdiction. The district court resolves a facial attack as it would a motion to dismiss under Rule 12(b)(6).” Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014) (citation and some internal quotation marks omitted). II.

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Powell v. Ohana Military Communities, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/powell-v-ohana-military-communities-llc-hid-2024.