TOWN OF CLARKSVILLE, INDIANA v. CLARKS LANDING ENTERPRISE INVESTMENTS LLC

CourtDistrict Court, S.D. Indiana
DecidedFebruary 1, 2024
Docket4:23-cv-00062
StatusUnknown

This text of TOWN OF CLARKSVILLE, INDIANA v. CLARKS LANDING ENTERPRISE INVESTMENTS LLC (TOWN OF CLARKSVILLE, INDIANA v. CLARKS LANDING ENTERPRISE INVESTMENTS LLC) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TOWN OF CLARKSVILLE, INDIANA v. CLARKS LANDING ENTERPRISE INVESTMENTS LLC, (S.D. Ind. 2024).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA NEW ALBANY DIVISION

TOWN OF CLARKSVILLE, INDIANA for the ) use and benefit of the Clarksville Department of ) Redevelopment, ) ) Plaintiff, ) ) v. ) Case No. 4:23-cv-00062-TWP-KMB ) CLARKS LANDING ENTERPRISE ) INVESTMENTS LLC, COLGATE-PALMOLIVE ) COMPANY, and CLARK COUNTY ) TREASURER, ) Defendants. )

ORDER DENYING PLAINTIFF'S MOTIONS TO STRIKE OBJECTIONS TO COMPLAINT

This matter is before the Court on Plaintiff Town of Clarksville, Indiana's ("the Town") Motion to Strike Defendants Clarks Landing's Objections (Filing No. 46) and Motion to Strike Defendant Colgate-Palmolive Company ("Colgate-Palmolive") Objections. (Filing No. 48). The Town, pursuant to Ind. Code § 32-24-4.5-1(b), initiated this eminent domain action in state court seeking to obtain real property owned by the Defendants Clarks Landing Enterprise Investments LLC ("Clarks Landing") and Colgate-Palmolive (collectively the Defendants). Defendants successfully removed the action by asserting diversity jurisdiction. Colgate-Palmolive has been dismissed from the action (see Filing No. 74), so the Court denies as moot the Town's Motion to Strike Defendant Colgate-Palmolive's Objections (Filing No. 48). The Town asks this Court to strike certain objections contained within Clarks Landing answers to its complaint (Filing No. 20). For the reasons set forth below, the Court denies the Town's Motion to Strike Defendant Clarks Landing's Objections (Filing No. 46). I. BACKGROUND On March 21, 2023, the Town initiated this condemnation action in state court, seeking to exercise the power of eminent domain to acquire the subject parcels of real property with the intent of ultimately transferring its ownership or control to another private person for private use1 (see Filing No. 1-3 at 2, 4). In its Complaint, the Town alleged that structures on the parcels "constitute[d]

a public nuisance" pursuant to Ind. Code § 32-24-4.5-7(1)(A)(i) and, specifically, that they were: • "unfit for human habitation or use because the structures are dilapidated, unsanitary, unsafe, or do not contain the facilities or equipment required by applicable building codes or housing codes" pursuant to Ind. Code § 32-24-4.5- 7(1)(B)(i), (ii), (iii), and (v), id. at 3–4, • "a fire hazard or otherwise dangerous to the safety of persons or property" pursuant to Ind. Code § 32-24-4.5-7(1)(C)(i), (ii), id. at 4, and, • "not fit for its intended use because the utilities, sewerage, plumbing, hearing, or other similar services or facilities have been disconnected, destroyed, removed, or rendered ineffective" pursuant to Ind. Code § 32-24-4.5- 7(1)(D)(i)–(v). Id. The Town further alleged that Clarks Landing "failed to implement any significant measures aimed at protecting and/or preserving the historically significant structures" located on the property. Id. On April 21, 2023, Clarks Landing filed a Notice of Removal to federal court, asserting diversity jurisdiction (Filing No. 1). The Town responded by filing a Motion to Remand (Filing No. 18), which the Court denied (Filing No. 44). On May 22, 2023, Clarks Landing filed an Answer and Objections to the Town's Complaint, denying or responding to the allegations and pleading ten separate "objections" (Filing No. 20). Clarks Landing provided background for its objections and plead facts detailing its "extensive discussions" with the Town regarding a multimillion-dollar development of the property (Filing No. 20 at 4- 7). In summary, Clarks Landing contends that the Town does not have the legal authority to take its private property and then turn it over to another

1 As this is Clarksville's stated goal, Ind. Code §§ 32-24-4.5-1 to -11 applies. See Ind. Code § 32-24-4.5-1(b). private developer. The Town of Clarksville attempts to do so through use of I.C. § 32-24- 4.5-7, which allows such a taking under very limited circumstances, including a finding that the subject property is “blighted.” Clarks Landing contends however, that its property is not blighted. Clarks Landing contends that "extensive discussions have been had with the Town regarding the

development of the Property, and significant steps have been taken toward realizing the development plan. At no time during this process did the Town instead suggest that the Property was blighted and would instead be the subject of a taking." Id. at 7. Clarks Landing presented several Objections in its Answer, in support of its argument that the complaint should be dismissed because "it fails to sufficiently allege facts supporting its appropriation of the Property" and failed to afford proper notice of the Town's claims. Id. at 7–9. Clarks Landing also argued that dismissal was warranted because the Town did not present a reasonable offer to purchase the property or negotiate the purchase in good faith, which was further evidenced by its failure to include relocation costs as required by statute and its deduction of demolition costs which significantly decreased the offer. Id. at 9–10.

The Town argues the objections contained in paragraph 19, 20, 21 and 22 of the Answer are insufficient as matter of law and should be stricken by the Court. II. LEGAL STANDARD Rule 12(f) permits a court to strike "from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." FED. R. CIV. P. 12(f). The district court has considerable discretion in striking any redundant, immaterial, impertinent, or scandalous matter, and its decision on a motion to strike should not be arbitrary or unreasonable. See Delta Consulting Group, Inc. v. R. Randle Constr., Inc., 554 F.3d 1133, 1141 (7th Cir. 2009). In general, "motions to strike are disfavored . . . and are typically granted only when there will be true prejudice." Bonzani v. Goshen Health Sys., 459 F. Supp. 3d 1139, 1156 (N.D. Ind. 2020) (internal citation omitted) (citing Talbot v. Robert Matthews Distrib. Co., 961 F.2d 654, 664 (7th Cir. 1992)). This is "because [they] potentially serve only to delay"; however, "where . . . motions to strike remove unnecessary clutter from the case, they serve to expedite, not delay." Heller Financial, Inc. v. Midwhey Powder Co., 883 F.2d 1286, 1294 (7th Cir. 1989) (citing United States v. 416.81 Acres of Land, 514 F.2d 627,

631 (7th Cir.1975)). In the context of striking affirmative defenses, the Seventh Circuit stated in 416.81 Acres: The duty of this Court is to determine whether such defenses as presented do indeed present substantial questions of law or fact which may not be stricken.

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Bluebook (online)
TOWN OF CLARKSVILLE, INDIANA v. CLARKS LANDING ENTERPRISE INVESTMENTS LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/town-of-clarksville-indiana-v-clarks-landing-enterprise-investments-llc-insd-2024.