R.S.S.W., Inc. v. City of Keego Harbor

18 F. Supp. 2d 738, 1998 WL 640996
CourtDistrict Court, E.D. Michigan
DecidedSeptember 23, 1998
Docket98-70497
StatusPublished
Cited by10 cases

This text of 18 F. Supp. 2d 738 (R.S.S.W., Inc. v. City of Keego Harbor) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.S.S.W., Inc. v. City of Keego Harbor, 18 F. Supp. 2d 738, 1998 WL 640996 (E.D. Mich. 1998).

Opinion

MEMORANDUM OPINION & ORDER

GILMORE, District Judge.

I.

The present action is brought by R.S.S.W., Inc., a closely held corporation doing business as Goose Island Brewery (“Goose Island”), and its sole shareholder Richard Skinner (“Skinner”) (jointly, “Plaintiffs”). The Amended Complaint, filed May 1, 1998, names as Defendants the City of Keego Harbor (“City” or “Keego Harbor”) and the purported “authorized decisionmakers” for the City. 1 These decisionmakers include City Manager Michael Steklac (“Steklac”), Chief of Police Jack Beach (“Beach”), and City Council Members Ralph Behler (“Behler”), Robert Burns (“Burns”), Arthur Nance (“Nance”), and David Hofmann (“Hofmann”). These persons are sued in both their individual and official capacities.

II.

The parties are now before the Court on Defendants’ Motion to Dismiss or, Alternatively, for Summary Judgment. 2 As discovery has yet to be completed in this case, Defendants’ Motion for Summary Judgment is premature. The Court thus denies Defendants’ Motion for Summary Judgment out of hand and addresses only the Motion to Dismiss.

Defendants’ Motion to Dismiss arises under Fed.R.Civ.P. 12(b)(6) (“Rule 12(b)(6)”). Rule 12(b)(6) provides that

[e]very defense, in law or fact, to a claim for relief in any pleading ... shall be asserted in the responsive pleading thereto if one is required, except that the following defenses at the option of the pleader may be made by motion: ... (6) failure to state a claim upon which relief may be granted.

The Sixth Circuit has often discussed how a trial court is to review a Rule 12(b)(6) *741 motion. It states that a trial court “must construe the complaint liberally in the plaintiffs’] favor and accept as true all factual allegations and permissible inferences therein.” Gazette v. City of Pontiac, 41 F.3d 1061, 1064 (6th Cir.1994); see also Miller v. Currie, 50 F.3d 373, 377 (6th Cir.1995). Because a Rule 12(b)(6) motion rests upon the pleadings rather than the evidence, “[i]t is not the function of the court [in ruling on such a motion] to weigh evidence or evaluate the credibility of the witnesses.” Miller, 50 F.3d at 377. As put by the Supreme Court,

When a federal court reviews the sufficiency of a complaint, before the reception of any evidence^] its task is necessarily a limited one. The issue is not whether [the] plaintiff[s] will ultimately prevail but whether the plaintiff[s are] entitled to offer evidence to support the[ir] claims. Indeed it may appear on the face of the pleadings that a recovery is very remote and unlikely but that is not the test.

Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974) (quoted in Miller, 50 F.3d at 377). Thus, the court should deny a Rule 12(b)(6) motion “ ‘unless it appears beyond doubt that the plaintiff[s] can prove no set of facts in support of [their] claim which would entitle [them] to relief.’ ” Gazette, 41 F.3d at 1064 (quoting Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)); see also Miller, 50 F.3d at 377; Vemco, Inc. v. Camardella, 23 F.3d 129, 132 (6th Cir.), cert. denied, 513 U.S. 1017, 115 S.Ct. 579, 130 L.Ed.2d 495 (1994). “While this standard is decidedly liberal, it requires more than the bare assertion of legal conclusions.” In re DeLorean Motor Co., 991 F.2d 1236, 1240 (6th Cir.1993). Rather, the complaint “ ‘must contain either direct or inferential allegations respecting all the material elements to sustain a recovery under some viable legal theory.’” Id. at 1240 (quoting Scheid v. Fanny Farmer Candy Shops, Inc., 859 F.2d 434, 436 (6th Cir.1988)).

III.

In compliance with the foregoing standard of review, the Court will not consider evidence outside of the pleadings, nor will it entertain Defendants’ challenges to Plaintiffs’ factual assertions. Rather, at this juncture, the Court will accept as true all factual allegations and permissible inferences in the Amended Complaint. Gazette, 41 F.3d at 1064. Those facts are as follows:

Goose Island is a “brewpub” 3 located in Keego Harbor, Michigan. At the time that Goose Island opened for business in 1995, it acquired a Class “C” liquor license from the predecessor establishment. 4 It then applied, in its own stead and with the City’s approval, 5 for its own licenses. It was granted the following licenses on October 30, 1995:(i) a class “C” liquor license; (ii) a Sunday sales permit; (iii) an “official” (food) permit; (iv) a dance permit; and (v) a “SDM” license. Approximately seventeen months later, on March 25,1997, Goose Island was also granted its “brewpub” license. Under state law, all such licenses must be renewed each year as of May 1st. Goose Island’s licenses have been renewed each year since 1995 and are currently in full force and effect.

Since its opening, Goose Island has served food and alcohol until 2:00 a.m., as allegedly permitted under the rules and regulations of the MLCC (specifically, R436.1403). However, Defendants, in their efforts to promote Keego Harbor as a family-oriented summer recreational destination, have pressured Goose Island to set a closing time of 11:00 p.m. 6 Cognizant that they have no authority *742 to require an earlier closing time, Defendants have declined to make a formal request that Goose Island set a closing time of 11:00 p.m. Rather, they set out on an unlawful campaign of harassment intended to force Goose Island into submission. That campaign had four main components.

First, Defendants pursued their goal by means of “inordinate police scrutiny.” For example, the City police drove through the Goose Island parking lot on a daily basis, parked within the near-vicinity of the building, and stopped and sometimes ticketed employees and customers as they left the brewpub. Defendants also enlisted the police departments of neighboring cities to assist them in this effort. The alleged scrutiny is to blame for a down-turn in business. Goose Island’s sales receipts were only $31,-000 in January 1998, as compared to $91,000 in January 1997.

Second, Defendants passed a City liquor license ordinance (“Liquor Ordinance”) in order to advance their illegal objective. The Liquor Ordinance lists the criteria upon which the City will recommend non-renewal or revocation of a liquor license to the MLCC. It reads in relevant part as follows:

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Bluebook (online)
18 F. Supp. 2d 738, 1998 WL 640996, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rssw-inc-v-city-of-keego-harbor-mied-1998.