Samuels v. Small Business Administration

CourtDistrict Court, S.D. New York
DecidedJuly 24, 2025
Docket1:23-cv-08000
StatusUnknown

This text of Samuels v. Small Business Administration (Samuels v. Small Business Administration) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samuels v. Small Business Administration, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------X JUSTIN SAMUELS, :

: 23 Civ. 8000 (JPC) (GS) Plaintiff, :

: REPORT AND - against - : RECOMMENDATION : SMALL BUSINESS ASSOCIATION, : : Defendant. : ---------------------------------------------------------------X GARY STEIN, United States Magistrate Judge: Plaintiff Justin Samuels (“Plaintiff” or “Samuels”) brings this pro se action against the Small Business Administration (“Defendant” or “SBA”) challenging the legality of the SBA’s Women-Owned Small Business (“WOSB”) Federal Contract program. (Dkt. No. 14). Before the Court is Defendant’s Motion to Dismiss Plaintiff’s Second Amended Complaint (“SAC”) pursuant to Federal Rules of Civil Procedure 12(b)(1), 12(b)(3), and 12(b)(6). (Dkt. No. 27–28). For the reasons stated below, the undersigned respectfully recommends that Defendant’s Motion to Dismiss be GRANTED. BACKGROUND A. Plaintiff’s Allegations Samuels is a Black man who is a dual citizen of Portugal and the United States. (Dkt. No. 2 at 5; Dkt. No. 4 at 2; Dkt. No. 33 at 1). At the time this action was commenced, Samuels resided in Portugal. (Dkt. No. 1 at 1; Dkt. No. 4 at 2). He now lives in the Bronx, New York. (Dkt. No. 32).1 Samuels alleges that he is a “minority business owner” who registered with the SBA on September 9, 2023, “with the intention of applying for assistance in

setting up a small business or obtaining federal contracts through SBA’s minority program,” otherwise known as the Section 8(a) program. (Dkt. No. 14 (“SAC”) at 1, 4). SBA’s 8(a) program provides various benefits to eligible and certified small businesses that are at least 51% owned and controlled by socially and economically disadvantaged individuals who are U.S. citizens. See 8(a) Business Development program, SBA (last updated July 11, 2025), https://www.sba.gov/federal- contracting/contracting-assistance-programs/8a-business-development-program.

Plaintiff does not allege that he ever actually applied for the 8(a) program. Nor does he identify, by name or otherwise, the business he allegedly owns or provide any description of the nature of the business. Instead, Plaintiff claims that the Eastern District of Tennessee’s holding in Ultima Servs. Corp. v. U.S. Dep’t of Agric., 683 F. Supp. 3d 745 (E.D. Tenn. 2023), “ended racial preferences” and that, as a result, “8(a) contracts are effectively nullified for [him] as an applicant.” (SAC

at 1–2).2

1 Plaintiff has had several address changes during this litigation. (See Dkt. Nos. 9, 11, 20, 32). When filing his complaint and amended complaints, Plaintiff listed his address as being in Barreiro, Portugal. (Dkt. Nos. 1, 12, 14; see also Dkt. Nos. 9, 11). Thereafter, Plaintiff filed a change of address form with an address in Alabama (Dkt. No. 20), followed by a change in address to the Bronx in January 2025. (Dkt. No. 32). 2 As discussed below, the court in Ultima Services did not nullify the 8(a) program, but instead invalidated the SBA’s use of a “rebuttable presumption of social disadvantage” in administering the program. Ultima Servs., 683 F. Supp. 3d at 752, 774. According to the SBA, after the decision was issued on July 19, 2023, the SBA temporarily suspended new applications to the 8(a) program to comply with the court’s holding but reopened the 8(a) application portal on September 29, 2023. Women-owned businesses also qualify for certain programs or contracts under SBA’s WOSB Federal Contract program. (SAC at 2). Small businesses are eligible for the WOSB program if they meet certain requirements, including that

the business be at least 51% owned and controlled by women who are U.S. citizens. (Id. at 5–11 (copy of description of WOSB Federal Contract program on SBA’s website)). Plaintiff alleges that he “sought access to resources offered through the women-only business program” but was “excluded from participating solely because he is a man.” (Dkt. No. 29 at 2). Samuels asserts that, because he “no longer qualif[ies] for preferences . . . due to [his] race,” a program, such as the WOSB program, that provides benefits based

on gender and does not benefit Plaintiff is a violation of his rights. (SAC at 2). Thus, Plaintiff asserts it is “illegal, unconstitutional, and unfair” that the SBA operates the WOSB Federal Contract program because he is precluded from benefitting from that program based on his gender. (Id.). Specifically, Plaintiff asserts that the WOSB program violates (1) the Fifth Amendment’s Due Process Clause; (2) the Civil Rights Act of 1866; (3) the Equal

Protection Clause; and (4) Title VII of the Civil Rights Act of 1964 (“Title VII”).3

(Dkt. No. 28 at 2–3). The Court does not rely on these assertions by the SBA in ruling on this motion, however. 3 Plaintiff asserts this claim in a later filing titled “Memorandum of Law in Support of Claim of Illegal Discrimination Under Title VII.” (Dkt. No. 29). “A pro se plaintiff may not raise entirely new causes of action for the first time in his opposition papers, but the Court may consider new claims appearing for the first time in briefing if the claims could have been asserted based on the facts alleged in the complaint.” Davila v. Lang, 343 F. Supp. 3d 254, 267 (S.D.N.Y. 2018) (citing Vlad- Berindan v. MTA N.Y.C. Transit, 14 Civ. 675, 2014 WL 6982929, at *5–6 (S.D.N.Y. Dec. 10, 2014)) (cleaned up). The Court will consider Plaintiff’s Title VII claim because it appears to be based on the same facts alleged in the SAC. (SAC at 1–2; Dkt. No. 29). Plaintiff seeks (1) a declaratory judgment that the WOSB program’s requirement that applicants be at least 51% owned by women is “unconstitutional and in violation of federal law;” and (2) injunctive relief enjoining

the SBA from enforcing its WOSB program policies to “allow Plaintiff to proceed with the application process without regard to gender-based ownership requirements.” (SAC at 3). B. Procedural History Samuels, proceeding pro se, initiated this action on September 10, 2023. (Dkt. No. 1). By order dated September 20, 2023, the Court permitted Plaintiff to proceed in forma pauperis (“IFP”), waiving the prepayment of fees or costs. (Dkt.

No. 8). On March 15, 2024, Plaintiff filed his first amended complaint (“FAC”), which was reviewed by the Honorable Laura T. Swain. (Dkt. No. 12). On May 30, 2024, Chief Judge Swain dismissed the FAC for lack of subject matter jurisdiction, but granted Plaintiff leave to replead his claims in a second amended complaint. (Dkt. No. 13 at 6). Chief Judge Swain’s dismissal stemmed from Plaintiff’s lack of Article III standing. (Id. at 4–5). In her ruling, Chief Judge

Swain noted that “[Plaintiff] does not allege that he has ever applied for assistance or funding to the challenged programs and that his application was denied because of his gender. Rather, Plaintiff’s claims appear to be based on a possible injury that he may suffer should he apply to the challenged programs.” (Id.). “Such speculative harm,” the decision found, “does not constitute an actual injury sufficient to establish standing.” (Id. at 5). In granting Plaintiff leave to amend, Chief Judge Swain recommended to Plaintiff that in his amended pleading he “should identify his business, allege facts showing that he suffered injury as a result of the defendant’s actions, and indicate that venue4 for the alleged events giving rise to his

claims is appropriate in this court.” (Id at 6.) On June 10, 2024, Plaintiff filed the SAC. (Dkt. No. 14). The case was then reassigned to the Honorable John P. Cronan (see Dkt. Entry on June 13, 2024), who subsequently referred this action to the undersigned for general pretrial supervision and dispositive motions requiring a Report and Recommendation. (Dkt. No.

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