Randy Farrell et al. v. City of New Orleans Department of Safety & Permits et al.

District Court, E.D. Louisiana·Decided July 14, 2026·No. 2:25-cv-02197·Unknown

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

RANDY FARRELL ET AL. CIVIL ACTION

VERSUS NO. 25-2197

CITY OF NEW ORLEANS SECTION R DEPARTMENT OF SAFETY & PERMITS ET AL.

ORDER & REASONS Before the Court is the motion to dismiss of defendants Jefferson Parish and Danny Ferrara.1 Plaintiffs oppose the motion.2 For the following reasons, the Court grants the motion and dismisses two of plaintiffs’ claims against Jefferson Parish and Danny Ferrara with prejudice and one of plaintiffs’ claims without prejudice. I. BACKGROUND Randy Farrell and his company, IECI & Associates LLC (“IECI”), brought this case on October 27, 2025. Farrell alleges that he is the president of IECI, a third-party inspection service provider operating in New Orleans and Jefferson Parish.3 Plaintiffs’ complaint arises from New Orleans’ and Jefferson Parish’s revocations of their registrations as approved third-party

1 R. Doc. 9. 2 R. Doc. 28. 3 R. Doc. 1 at ¶ 1 inspectors, which plaintiffs contend were discriminatory, retaliatory, and done without required due process.4

Plaintiffs allege that New Orleans, through Director of Safety and Permits Tammie Jackson, revoked Farrell’s inspection registration in January 2023 because Farrell maintained a Louisiana contractor license. The Code of the City of New Orleans allegedly prohibits an individual from

maintaining a contractor license and third-party inspector registration simultaneously.5 Farrell allegedly continued to operate IECI, which maintained a separate inspection registration.6 Farrell allegedly attempted

to renew his own inspection registration after allowing his contractor license to lapse.7 Plaintiffs allege that Jackson denied Farrell’s renewal in September 2023 because of concerns about IECI’s city code violations, Farrell’s plea on a tax fraud indictment, and an investigation into Farrell in

another parish for falsifying documents.8 Plaintiffs further allege that in October 2024, Jefferson Parish suspended the inspection registrations of both Farrell and IECI because of federal and state indictments of Farrell on charges of conspiracy to commit

4 See id. at ¶¶ 37, 41, 45, 59. 5 Id. at ¶¶ 13–14. 6 Id. at ¶ 17. 7 Id. at ¶ 16. 8 Id. at ¶ 18; R. Doc. 1-2 at 4. wire fraud, wire fraud, conspiracy to commit honest services fraud, honest services fraud, conspiracy to falsify documents, falsifying documents, and

forgery.9 Plaintiffs allege that defendant Danny Ferrara is the Director of Building Permits for Jefferson Parish.10 Plaintiffs allege that in November 2024, Jackson requested detailed information regarding IECI’s operations.11 Finding Farrell’s December 2024

response insufficient, Jackson revoked IECI’s inspection registration in New Orleans in February 2025.12 Plaintiffs further allege that, at some point, Farrell reported to the

mayor of New Orleans a toxic environment at the New Orleans Department of Safety and Permits, leading to the dismissal of two employees from that department and from the New Orleans Office of Inspector General.13 According to plaintiffs, the revocations of their inspection registrations were,

at least in part, retaliation for Farrell’s alleged whistleblowing.14 Plaintiffs allege that IECI has lost sixteen inspectors and millions of dollars in revenue.15

9 R. Doc. 1 at ¶ 20; R. Doc. 1-2 at 5–6. 10 R. Doc. 1 at ¶ 6. 11 Id. at ¶ 21; R. Doc. 1-2 at 7. 12 R. Doc. 1 at ¶ 25; R. Doc. 1-2 at 8. 13 R. Doc. 1 at ¶¶ 55–56. 14 Id. at ¶¶ 55–58. 15 Id. at ¶ 24. Plaintiffs sued New Orleans, Jackson, Jefferson Parish, and Ferrara. As to Jefferson Parish and Ferrara, plaintiffs sued for: (1) violation of the Due

Process Clause of the Fourteenth Amendment; (2) violation of the Equal Protection Clause of the Fourteenth Amendment through selective enforcement and discrimination; and (3) violation of the Equal Protection Clause through retaliation.

Jefferson Parish and Ferrara now move to dismiss under Federal Rule of Civil Procedure 12(b)(6), asserting that plaintiffs have failed to state a claim upon which relief may be granted. The Court considers the motion

below. II. LEGAL STANDARD To survive a Rule 12(b)(6) motion to dismiss, a plaintiff must plead enough facts to “state a claim to relief that is plausible on its face,” Ashcroft

v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 547 (2007)), and “that, if true, ‘raise a right to relief above the speculative level.’” Franklin v. Regions Bank, 976 F.3d 443, 447 (5th Cir. 2020) (quoting Twombly, 550 U.S. at 555). A claim is facially plausible

“when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 556 U.S. at 678. The Court must accept all well-pleaded facts as true and must draw all reasonable inferences in favor of the plaintiff. Lormand v. U.S. Unwired, Inc., 565 F.3d 228, 239, 244 (5th Cir. 2009). But the Court

is not bound to accept as true legal conclusions couched as factual allegations. Iqbal, 556 U.S. at 678. The Court may take judicial notice of publicly available documents that are “matters of public record directly relevant to the issue at hand.” Funk v. Stryker Corp., 631 F.3d 777, 783 (5th

Cir. 2011). III. DISCUSSION A. Due Process

The Due Process Clause of the Fourteenth Amendment provides that “[n]o State shall . . . deprive any person of life, liberty or property, without due process of law.” U.S. Const. amend. XIV, § 1. To determine whether a violation of the Due Process Clause has occurred, the Court must ask, first,

“whether there exists a liberty or property interest of which a person has been deprived” and, if so, then “whether the procedures followed by the State were constitutionally sufficient.” Swarthout v. Cooke, 562 U.S. 216, 219 (2011). Here, plaintiffs allege that defendants suspended their third-party

inspection registrations with Jefferson Parish without providing an opportunity for a hearing or appeal.16 Plaintiffs allege that these suspensions

16 R. Doc. 1 at ¶ 40. deprived them of “constitutionally protected liberty and/or property interests” in their “permit to operate.”17

1. Property Interest Property interests are created not by the Constitution but by “an independent source such as state law.” Id. Nevertheless, “federal constitutional law determines whether a state-created interest rises to the

level of a legitimate claim of entitlement protected by the Due Process Clause.” Memphis Light, Gas & Water Div. v. Craft 436 U.S. 1, 9 (1978). To have a property interest in a government benefit under the Due

Process Clause, a plaintiff “must have more than a unilateral expectation of it. He must, instead, have a legitimate claim of entitlement to it.” Bd. of Regents of State Colleges v. Roth, 408 U.S. 564, 577 (1972). When government officials may grant or deny a benefit in their discretion, the

benefit is not a protected entitlement. Town of Castle Rock v. Gonzales, 545 U.S. 748, 756 (2005).

Free access — add to your briefcase to read the full text and ask questions with AI

Randy Farrell et al. v. City of New Orleans Department of Safety & Permits et al., (E.D. La. 2026).

Randy Farrell et al. v. City of New Orleans Department of Safety & Permits et al. (Randy Farrell et al. v. City of New Orleans Department of Safety & Permits et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bryan v. City of Madison MS
213 F.3d 267 (Fifth Circuit, 2000)
Keenan v. Tejeda
290 F.3d 252 (Fifth Circuit, 2002)
Stidham v. Texas Commission on Private Security
418 F.3d 486 (Fifth Circuit, 2005)
Mikeska v. City of Galveston
451 F.3d 376 (Fifth Circuit, 2006)
Lormand v. US Unwired, Inc.
565 F.3d 228 (Fifth Circuit, 2009)
Brewster v. Dretke
587 F.3d 764 (Fifth Circuit, 2009)
Board of Regents of State Colleges v. Roth
408 U.S. 564 (Supreme Court, 1972)
Perry v. Sindermann
408 U.S. 593 (Supreme Court, 1972)
Mathews v. Eldridge
424 U.S. 319 (Supreme Court, 1976)
Memphis Light, Gas & Water Division v. Craft
436 U.S. 1 (Supreme Court, 1978)
Olim v. Wakinekona
461 U.S. 238 (Supreme Court, 1983)
Cleveland Board of Education v. Loudermill
470 U.S. 532 (Supreme Court, 1985)
Kentucky Department of Corrections v. Thompson
490 U.S. 454 (Supreme Court, 1989)
Gilbert v. Homar
520 U.S. 924 (Supreme Court, 1997)
City of West Covina v. Perkins
525 U.S. 234 (Supreme Court, 1999)
Dusenbery v. United States
534 U.S. 161 (Supreme Court, 2002)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Ronald Funk v. Stryker Corporation
631 F.3d 777 (Fifth Circuit, 2011)