Town of Newburgh, New York v. Newburgh EOM LLC

CourtDistrict Court, S.D. New York
DecidedMarch 27, 2025
Docket7:24-cv-05059
StatusUnknown

This text of Town of Newburgh, New York v. Newburgh EOM LLC (Town of Newburgh, New York v. Newburgh EOM LLC) 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
Town of Newburgh, New York v. Newburgh EOM LLC, (S.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------x TOWN OF NEWBURGH, NEW YORK,

Plaintiff,

- against - OPINION & ORDER

NEWBURGH EOM LLC, NEWBURGH No. 24-CV-5059 (CS) EOM LLC d/b/a CROSSROADS HOTEL,

CROSSROADS HOTEL, RATAN

NEWBURGH, LLC, and RATAN NEWBURGH, LLC d/b/a RAMADA INN,

Defendants. -------------------------------------------------------------x

Appearances:

Jeffrey D. Sherwin Nicholas J. Berwick MacVean, Lewis, Sherwin & McDermott, P.C. Middletown, New York Counsel for Plaintiff

Todd E. Soloway Todd B. Marcus Jacob B. Orgel Pryor Cashman LLP New York, New York Counsel for Defendants

Seibel, J. Before the Court is the motion to remand of Plaintiff Town of Newburgh, New York (“Plaintiff” or the “Town”). (ECF No. 16.) For the following reasons, the motion is GRANTED. I. BACKGROUND For purposes of the motion, the Court accepts as true the facts set forth in the Notice of Removal, (ECF No. 8 (“NOR”)). See County of Orange v. Crossroads Hotel, No. 23-CV-4213, 2024 WL 1739914, at *1 (S.D.N.Y. Apr. 23, 2024); Town of Poughkeepsie v. S. Rd. Hosp. LLC, No. 23-CV-4214, 2024 WL 1156083, at *2 (S.D.N.Y. Mar. 18, 2024). Because the validity of the removal petition here involves a jurisdictional inquiry, I may also draw additional facts where necessary from the parties’ submissions, such as exhibits attached to the notice of removal or the motion papers. See Romano v. Kazacos, 609 F.3d 512, 520 (2d Cir. 2010); Torres v. St.

Vincent DePaul Residence, No. 22-CV-7012, 2023 WL 2754305, at *1 n.1 (S.D.N.Y. Apr. 3, 2023); Winters v. Alza Corp., 690 F. Supp. 2d 350, 353 n.3 (S.D.N.Y. 2010). In response to an increased need to house asylum seekers – originating primarily from countries in Latin America – New York City implemented a program through which asylum seekers could “voluntarily pursue temporary public accommodations” in hotels across New York State. (See NOR ¶¶ 7-8.) Sometime in the spring of 2023, Defendant Ratan Newburg L.L.C. d/b/a Ramada by Wyndham Newburgh/West Point (“Ramada”) agreed to provide hotel rooms to “a relatively small” number of asylum seekers through the New York City program, and a number of asylum seekers voluntarily sought accommodations at that hotel. (Id. ¶ 11.)

On May 8, 2023, Orange County Executive Steve Neuhaus issued an Executive Order (“EO”) that prohibited providing public accommodations to “migrants and asylum seekers.” (Id. ¶ 12.)1 Ramada alleges that the EO signaled to municipalities within Orange County that they should “enforce[] local zoning codes” to further the “EO’s discriminatory prohibition.” (Id. ¶ 13.)2 Moreover, Ramada alleges that Town Supervisor Gil Piaquadio worked with Neuhaus to

1 Shortly thereafter, the Honorable Nelson S. Román preliminarily enjoined enforcement of the Orange County EO, finding it likely violated the Equal Protection Clause, 42 U.S.C. § 1981, Title II of the Civil Rights Act, and the Due Process Clause. See Deide v. Day, 676 F. Supp. 3d 196, 222-30 (S.D.N.Y. 2023). 2 This allegation is based on the fact that the EO stated that because local zoning codes did not allow long-term occupancy of hotels, enforcement of those codes would result in asylum develop the EO, (id. ¶ 14),3 and that prior to Neuhaus’s issuance of the EO, Neuhaus and Piaquadio issued a joint statement raising “‘questions about who these immigrants are’” and “‘concern[s]’ as to whether ‘they were properly vetted,’” (id. ¶ 15 (alteration in original) (quoting ECF No. 8-2 at 3)). The NOR also pleads that Neuhaus espoused racially discriminatory rhetoric at several media appearances in connection with the EO, (id. ¶¶ 17-20),

and that Piaquadio “[e]cho[ed] County Executive Neuhaus’ rhetoric” when Piaquadio issued a statement that raised “concerns with regard to the absence of background checks on these 60 men” and asserted that “the safety of the Town of Newburgh residents is most important,” (id. ¶ 21). On the same day that Neuhaus issued the Orange County EO, the Town’s Board convened an emergency meeting and passed a resolution that authorized special counsel to commence litigation, pursuant to the Town’s zoning laws, against Ramada and other hotels that offered accommodations to asylum seekers, before any asylum seekers arrived in the Town. (Id. ¶ 24.) Additionally, in the following days, the Town’s fire department and code

compliance/building department conducted “sham ‘inspections’ of [Ramada],” which Ramada alleges were conducted to find “conditions the Town could exploit in a zoning enforcement action” to either prevent it from, or punish it for, providing accommodations to asylum seekers.

seekers being rendered homeless at a time when all shelters in the County were full. (See ECF No. 8-1 at 2-3.) 3 This allegation is based on Neuhaus’s deposition testimony in other litigation to the effect that Town Supervisor Piaquadio was “involved” in the EO, in that the two spoke and Neuhaus believed the Town was planning to “do the same exact thing.” (ECF No. 8-3 at 32:8- 24.) When then asked about Piaquadio’s role in the issuance of the EO, Neuhaus stated that Piaquadio “had no role,” but had called Neuhaus, who told Piaquadio that he was issuing an executive order. (Id. at 32:25-33:4.) There is no indication in the record that Piaquadio or the Town issued a comparable order. (Id. ¶ 25.) As of the filing of the NOR, the Town had not indicated to Ramada that it identified any issues. (Id.) On May 15, 2023, approximately 70 asylum seekers arrived at Ramada. (Id. ¶ 26.) On May 12, 2023, the Town brought this action in New York State Supreme Court, Orange County, against Newburgh EOM LLC, Newburgh EOM LLC d/b/a Crossroads Hotel,

and Crossroads Hotel (collectively, “Crossroads” and together with Ramada, the “Defendants”), which is the other hotel in the Town that arranged with New York City to accommodate asylum seekers.4 (See id. ¶ 27.) On May 16, 2023, in the New York State Supreme Court, County of Orange, the Honorable Sandra Sciortino held oral argument on the Town’s application for a temporary restraining order (“TRO”), (see ECF No. 16-4), and granted a TRO that, among other things, enjoined Defendants from (1) transporting additional migrants or asylum seekers to Orange County; (2) modifying, altering, or changing the use of the Defendants’ properties – except to change the bed configurations in rooms currently occupied – “unless and until such time as appropriate permit applications are filed with the Town of Newburgh, appropriate

inspections are conducted, and continued activity is approved by the Town of Newburgh and any other required governmental authority”; (3) operating as “a shelter for long-term housing of non- transient guests,” except for the 186 persons already occupying the properties, “unless and until such use is approved by the Town of Newburgh and any other required governmental authority”;

4 Newburgh EOM LLC, Newburgh EOM LLC d/b/a/ Crossroads Hotel, and Crossroads Hotel are all the same entity. (ECF No. 8-9 at 66.) Citations to ECF No. 8-9 use the pagination provided by the Court’s Electronic Case Filing (“ECF”) system. and (4) using the Defendants’ properties referenced in the state court complaint “in violation of the Town Code of the Town of Newburgh New York,” (see ECF No. 8-9 at 56-59).5 II. PROCEDURAL HISTORY On May 21, 2023, Crossroads timely removed this action to federal Court, asserting federal question jurisdiction pursuant to the “arising under” doctrine of 28 U.S.C. § 1331, as

incorporated into 28 U.S.C.

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