Red Zone 12 LLC v. City of Columbus, Ohio

CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 21, 2019
Docket18-3363
StatusUnpublished

This text of Red Zone 12 LLC v. City of Columbus, Ohio (Red Zone 12 LLC v. City of Columbus, Ohio) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Red Zone 12 LLC v. City of Columbus, Ohio, (6th Cir. 2019).

Opinion

NOT RECOMMENDED FOR FULL-TEXT PUBLICATION File Name: 19a0085n.06

No. 18-3363

UNITED STATES COURT OF APPEALS FILED FOR THE SIXTH CIRCUIT Feb 21, 2019 DEBORAH S. HUNT, Clerk RED ZONE 12 LLC, et al., ) ) Plaintiffs-Appellants, ) ON APPEAL FROM THE ) UNITED STATES DISTRICT v. ) COURT FOR THE ) SOUTHERN DISTRICT OF CITY OF COLUMBUS, et al., ) OHIO ) Defendants-Appellees. ) )

BEFORE: GIBBONS, ROGERS and STRANCH, Circuit Judges.

JULIA SMITH GIBBONS, Circuit Judge. This case arises out of a nuisance abatement

action brought by City Attorney Richard Pfeiffer, Jr. on behalf of the state of Ohio against Red

Zone LLC (“Red Zone”),1 a hip hop nightclub in Columbus, Ohio (the “City”). Following

litigation of the nuisance suit, which the Franklin County Municipal Court dismissed upon finding

“absolutely no public harm” since the nightclub had shut down prior to the nuisance action, Red

Zone filed a seven-count lawsuit against Pfeiffer and the City in Ohio state court. Under 42 U.S.C.

§ 1983, Red Zone alleged that the nuisance abatement action violated substantive and procedural

due process under the Fourteenth Amendment, the equal protection clause of the Fourteenth

Amendment, and the takings clauses of the Fifth Amendment and the Ohio Constitution and that

1 The nuisance action was also filed against 303 South Front Street LLC, which owned and leased property to Red Zone, LLC, and their managers, Christopher Corso and Michael Gallicchio. For the purposes of this appeal, however, “Red Zone” refers to both companies. They, along with Corso and Gallicchio, are joint appellants in the present appeal. No. 18-3363, Red Zone 12 LLC, et al. v. City of Columbus, et al.

Pfeiffer and the City were liable for breach of contract, negligent misrepresentation, malicious

civil prosecution, and abuse of process.

After Pfeiffer and the City removed the case, the district court granted their motion for

judgment on the pleadings with respect to their federal constitutional claims and remanded the

remaining state law claims. Regarding the federal constitutional claims, the district court held that

(1) Pfeiffer was protected by absolute prosecutorial immunity and (2) the City could not be liable

under § 1983 because Pfeiffer acted as an agent of the state, rather than the city, and because Red

Zone had not otherwise sufficiently alleged a policy or custom outside of Pfeiffer’s conduct. On

appeal, Red Zone challenges both of these determinations. We agree with the district court that

Pfeiffer was entitled to prosecutorial immunity and that Red Zone did not adequately allege a

custom or policy that would support liability against the City. We therefore affirm the district

court’s grant of judgment on the pleadings with respect to the federal constitutional claims.

I.

In late 2012, Red Zone began operating as a hip hop nightclub at 303 South Front Street,

Columbus, Ohio. Red Zone was twice subjected to gang-related violence. First, in November

2013, a gang-related shooting broke out during a show featuring hip hop artist Rich Homie Quan.

While the police investigated the shooting, Red Zone shut down its business. About two weeks

later, “at the suggestion of and with the blessing of the city police,” Red Zone reopened. DE 19,

First Amended Compl., Page ID 312. Second, in December 2013, Red Zone held another show

featuring Rich Homie Quan to promote “an end to gang violence” and “to promote peace.” Id. at

313. That evening, however, another gang-related shooting occurred at the nightclub. Red Zone

immediately shut its doors and never reopened.

2 No. 18-3363, Red Zone 12 LLC, et al. v. City of Columbus, et al.

In January 2014, Red Zone’s managers, Christopher Corso and Michael Gallicchio, met

with Columbus city officials including George Speaks and assistant City Attorney Steve Dunbar

to discuss the incidents and status of Red Zone. At that meeting, Red Zone and the City reached

an agreement in which Red Zone “would agree to close the ‘large nightclub’ business at the

property in exchange for them being able to keep a liquor license and continue as an alternative

business on the property such as a restaurant, bar, grocery, [or] carryout.” Id. at 314. The City

also agreed that so long as the business did not operate as a nightclub, the City would not bring

any legal action, would not object to Red Zone’s reopening the business for another purpose, and

would not object to Red Zone’s retaining a liquor license. Dunbar offered to memorialize the

agreement in writing. Id. at 315. Red Zone closed its nightclub business, evicted the tenant

business operator, and “otherwise did everything demanded of and requested by the city and Mr.

Pfeiffer.” Id. at 315.

According to Red Zone, the City’s efforts to memorialize the oral agreement fell short. In

April 2014, Pfeiffer sent Red Zone a document entitled “Agreed Judgment Entry & Permanent

Injunction Order.” Contrary to what Red Zone believed it had agreed to, the draft agreement

sought to permanently enjoin it from conducting business involving alcohol or dancing at the

property. The City and Red Zone continued negotiating between April and June. Red Zone asked

the City to honor the original January agreement; the City refused. The City also indicated that it

would not allow Red Zone to transfer its liquor license to a new business. According to Red Zone,

the City “felt like the plaintiffs needed to be more severely punished” and that “this area of the city

was undergoing redevelopment and that plaintiffs’ business serving the ‘urban’ and ‘hip hop’ and

minority residents did not fit with their redevelopment plans, and hurt the newly developing

3 No. 18-3363, Red Zone 12 LLC, et al. v. City of Columbus, et al.

businesses and residential housing in the area by prominent developers catering to largely wealthy,

non-minority customers.” Id. at 317.

Unable to reach agreement, Pfeiffer filed a nuisance abatement action against Red Zone in

June 2014. Bringing claims under Ohio Revised Code Chapter 3767 and the Columbus City Code

§ 4703.01(F)(1), Pfeiffer sought a permanent injunction to prevent Red Zone from “maintaining”

a public nuisance, to bar the possession or sale of alcohol on the property, and to prohibit usage of

the space for any purpose for a one-year period. DE 19-2, Amend. Compl. Perm. Inj. Relief, Page

ID 362–69. Red Zone alleged that, throughout the litigation of the nuisance action, Pfeiffer and

the City delayed the case and obstructed the discovery process, even ordering city police officers

not to speak with Red Zone or its legal counsel. Red Zone deposed assistant City Attorney Dunbar

and detective Steve Rosser. During his deposition, Rosser said that he “[didn’t] know how there

could be [a nuisance] because [Red Zone had] closed” before Pfeiffer requested a permanent

injunction. DE 19, First Amend. Compl., Page ID 323. Unable to “litigate and bear the mounting

[legal expenses],” Red Zone ultimately “sold the underlying property at a significant loss” and

filed a motion for summary judgment. Id. at 328. The Franklin County Municipal Court granted

it with emphasis on the pointlessness of the litigation. The municipal court said:

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