St. Thomas Group, Inc. v. Lane

CourtDistrict Court, D. Nebraska
DecidedJanuary 6, 2025
Docket8:24-cv-00331
StatusUnknown

This text of St. Thomas Group, Inc. v. Lane (St. Thomas Group, Inc. v. Lane) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Thomas Group, Inc. v. Lane, (D. Neb. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

ST. THOMAS GROUP, INC. and VITALY EKWEN, 8:24CV331 Plaintiffs,

v. MEMORANDUM AND ORDER CITY OF OMAHA, SCOTT LANE, PATRICK BENSON, STEVE ANDERSON, KEVIN MULCAHY, TYLER DEWAELE, MICHAEL CHAMPION, MAYOR JEAN STOTHERT, COUNTY OF DOUGLAS, TYLER HIIPAKKA, JARED R. DEAN, OMAHA POLICE DEPARTMENT, BELLEVUE POLICE DEPARTMENT, and CAPTAIN JAY KIRWAN,

Defendants.

On August 25, 2024, plaintiffs St. Thomas Group, Inc. (“St. Thomas Group”) and Vitaly Ekwen (“Ekwen” and together, the “plaintiffs”) brought this lawsuit (Filing No. 1) alleging violations of their rights to equal protection and due process under the United States and Nebraska Constitutions. See U.S. Const. art. 14, § 1; Neb. Const. art. I, §§ 3, 25. They claim defendants City of Omaha (“Omaha” or the “city”), Scott Lane (“Lane”), Patrick Benson (“Benson”), Steve Anderson (“Anderson”), Kevin Mulcahy (“Mulcahy”), Tyler Dewaele (“Dewaele”), Michael Champion (“Champion”), Mayor Jean Stothert (“Mayor Stothert”), County of Douglas (“Douglas County”), Tyler Hiipakka (“Hiipakka”), Jared R. Dean (“Dean”), Omaha Police Department (“OPD”), Bellevue Police Department (“BPD”), and Captain Jay Kirwan (“Captain Kirwan” and altogether, the “defendants”) discriminated against them “on an ongoing basis since at least 2017” through their involvement in the inspection, taxation, foreclosure, and demolition of properties owned by the plaintiffs. Now before the Court are the motions to dismiss filed by (1) BPD and Captain Kirwan (together, the “Bellevue defendants”) (Filing No. 23), (2) Douglas County (Filing No. 29), and (3) Omaha, Lane, Anderson, Mulcahy, Dewaele, Champion, Mayor Stothert, Hiipakka, and OPD (collectively, the “Omaha defendants”) (Filing No. 32).1 See Fed. R. Civ. P. 12(b). For the reasons that follow, those motions are largely granted. I. BACKGROUND2 St. Thomas Group is a Nebraska company engaged in computer sales and repairs, construction, renovation, and home rentals. Ekwen, a man of Nigerian descent, is its president. According to their complaint, the plaintiffs own various properties in Omaha, Nebraska, including parcels located at 4635 Grand Avenue (the “4635 Grand Ave. property”), 6301 North 33rd Street (the “6301 N. 33rd St. property”), 3740 North 40th Street (the “3740 N. 40th St. property”), 3947 North 40th Street (the “3947 N. 40th St. property”), and 3525 North 28th Street (the “3525 N. 28th St. property”). They claim officials improperly handed purported housing violations at each of these properties. A. The 3740 N. 40th St. Property In 2016, a house cleaner the plaintiffs hired robbed the 3740 N. 40th St. property and reported false housing violations to the city. Two city inspectors then came to the property and posted notices of various violations without inspecting the property.

1Neither Benson nor Dean have moved to dismiss the complaint or otherwise appeared in this matter. As the magistrate judge in this case noted, the plaintiffs have failed to file proof that Benson or Dean were ever properly served. See Fed. R. Civ. P. 4(l)-(m) (generally requiring the plaintiff submit proof of service and giving them 90 days from the time the complaint is filed to do so). As such, the magistrate judge entered a Show Cause Order (Filing No. 40) on January 2, 2025, giving the plaintiffs until January 30, 2025, “to show cause why the[ir] claims against Benson and/or Dean should not be dismissed.” 2At the motion-to-dismiss stage, the Court assumes “the well-pleaded factual allegations in the [plaintiffs’] complaint are true.” Nat’l Rifle Ass’n of Am. v. Vullo, 602 U.S. 175, 195 (2024). “Legal conclusions couched as factual allegations” are not presumed to be true. Jones v. City of St. Louis, 104 F.4th 1043, 1046 (8th Cir. 2024) (quoting Hager v. Ark. Dep’t of Health, 735 F.3d 1009, 1013 (8th Cir. 2013)). Eventually, Ekwen got a hold of city inspectors who stated the notices were made based on unverified tips. Upon speaking with city housing inspectors Anderson and Lane, Lane informed Ekwen that the city would withdraw the notices. The plaintiffs further allege a painter they hired also reported the property to the city in 2017, leading to more notices of unverified housing violations. B. The 3947 N. 40th St Property Around that time, the plaintiffs had been refurbishing the 3947 N. 40th St. property and advertised its rental availability. The plaintiffs later evicted a tenant of that property for not paying rent. According to the plaintiffs, the tenant damaged the property and filed false accusations of housing violations to the city. The plaintiffs received a notice of violations, though the city improperly addressed the notice to the property’s previous owner. Anderson came to the property and worked through some concerns with Ekwen, noting a few remaining violations caused by the tenant. The plaintiffs called the city inspectors’ office to explain what happened to the property and ask for time to make repairs. The 3947 N. 40th St. property was at issue again in 2022. In June of that year, a neighbor informed the plaintiffs that a violations notice was taped to the property. Ekwen spoke to city inspector Mulcahy about the notice, who notified Ekwen that he needed to replace the property’s water-heater connection with copper pipe. On July 12, 2022, Ekwen met with Mulcahy for an inspection of the property, at which Mulcahy advised him of plumbers that may be able to help with the requisite repairs. On July 27, 2022, city inspector Dave Lloyd (“Lloyd”) reinspected the property. Lloyd approved the water-heater connection but cited additional violations. The plaintiffs scheduled further repairs and inspections. A trial was held in August 2023 in state court at which the plaintiffs presented evidence they had repaired various issues with the property. Still, the plaintiffs claim the city’s witnesses “repeatedly lied on the stand, claiming such repairs were not done.” A few months later, the plaintiffs discovered vandalism and theft at the property. The plaintiffs claim that neighbors “attributed [the damage] to individuals claiming to be sent by the [c]ity” on two separate occasions that fall. On November 1, 2022, the city began demolishing the property. Assistant city attorney Hiipakka raised additional concerns about the property with the plaintiffs in 2023, and the plaintiffs continued attempting to repair the property. Despite their efforts, housing inspector Dewaele purportedly provided false testimony in state-court proceedings regarding a slew of deficiencies with the property. The plaintiffs claim that Anderson and Lane also lied under oath in confirming Dewaele’s testimony. According to the plaintiffs, the city has continued to damage the property and schedule it for demolition. The plaintiffs have no access to the property and have been unable to retrieve their materials, tools, and equipment. They also allege that BPD, “headed by Captain [] Kirwan,” conducted “what was essentially a training raid” at the property in July 2024 during which “officers broke windows and damaged doors.” The plaintiffs state the city authorized BPD’s raid and did so based on an unfounded assertion that Ekwen was “potentially armed and dangerous.” The incident made Ekwen feel “humiliated and discriminated against.” C. The 6301 N. 33rd St. Property In 2018, Ekwen visited the 6301 N. 33rd St. property to some commotion. The plaintiffs claim that, despite having been introduced to Ekwen previously, two neighbors questioned his ownership of the property.

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St. Thomas Group, Inc. v. Lane, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-thomas-group-inc-v-lane-ned-2025.