Tuck's Restaurant and Bar v. Newsom

District Court, E.D. California·Decided October 4, 2022·No. 2:20-cv-02256·Unknown

Opinion

Tuck’s Restaurant and Bar, et al., No. 2:20-cv-02256-KJM-CKD Plaintiffs, ORDER v. . Gavin Newsom, et al., 1S Defendants. Two Nevada County restaurants, their owners, and a Nevada County restaurant coalition challenge long-terminated COVID-19-related restrictions imposed by various state officials, members of the Nevada County Board of Supervisors, and several other Nevada County officials. The State and County Defendants! have moved separately to dismiss plaintiffs’ complaint in its entirety. As explained below, plaintiffs’ claims against the State Defendants are moot, and the

' State Defendants, all of whom are sued in their official capacities, are Governor Gavin Newsom, California Attorney General Rob Bonta, Secretary of the California Health and Human Services Agency Mark Ghaly, acting Director of the California Department of Public Health Brandon Nunes, and acting State Public Health Officer for the California Department of Public Health Erica Pan. Compl. 9] 22-27, ECF No. 1. County Defendants include each member of the Nevada County Board of Supervisors, all of whom plaintiffs sued in their official capacity; Nevada County Public Health Officer Richard O. Johnson, sued in his official capacity; Nevada County Director of Environmental Health Amy Irani, sued in her official and personal capacities; and Nevada County Counsel Katharine Elliott, sued in her official and personal capacities. □□□ q{ 28-33.

State Defendants’ motion is thus granted in full; the County Defendants’ motion to dismiss is granted in part and denied in part. Defendants request judicial notice of various state and county orders and notices of violation. See St.’s Req. Jud. Not. (“St.’s RJN”), ECF No. 12; Cnty.’s Req. Jud. Not. (“Cnty.’s RJN”), ECF No. 10; St.’s Second Req. Jud. Not. (“St.’s Second RJN”), ECF No. 35. State Defendants further request judicial notice of state and federal government COVID-19 trackers and publicly reported data. See St.’s RJN Exs. 12–13. After reviewing each exhibit and considering plaintiffs’ limited arguments in opposition, the court finds all exhibits to be matters of public record and proper subjects of judicial notice. See Fed. R. Evid. 201(b). The court thus takes notice of the exhibits’ existence and contents, but not that the claims made within them are true. See In re BofI Holding, Inc. Sec. Litig., 977 F.3d 781, 791 n.2 (9th Cir. 2020). At this stage, the court assumes the following allegations are true. See Ashcroft v. Iqbal, 556 U.S. 662, 678–79 (2009). A. The State’s & County’s COVID-19 Policies and Their Effects on Plaintiffs In early 2020, Governor Newsom declared a state of emergency due to the health crisis caused by the spread of SARS-CoV-2, the virus that causes COVID-19. Compl. ¶ 34, ECF No. 1; St.’s RJN Ex. 1. At the same time, California’s Public Health Officer issued a directive restricting public activities throughout the state. St.’s RJN Ex. 3. Governor Newsom then issued an order directing all California residents to heed the State Public Health Officer’s directive, excepting those working at jobs deemed “essential.” Compl. ¶ 35; St.’s RJN Ex. 4. To comply with the Governor’s order, plaintiffs were “required to cease providing indoor dining for their customers” but were permitted to “offer exclusively take-out and delivery service.” Compl. ¶ 37. They also were forced to lay off employees and “cancel numerous previously scheduled reservations and events.” Id. ¶¶ 41–43. Subsequent government directives created a fluctuating set of requirements for plaintiffs’ businesses. In early May 2020, the State permitted businesses to begin reopening in stages. See id. ¶¶ 45–46; St.’s RJN Ex. 6. Plaintiffs immediately resumed indoor dining service, although they were “required by defendants to implement numerous additional health and safety practices.” Compl. ¶¶ 47–49. Roughly two months later, on July 13, 2020, a resurgence of COVID-19 cases led the State to issue “a further Order directing all restaurants . . . to again cease indoor dining service.” Id. ¶ 50. On August 28, 2020, the State Public Health Officer issued a statewide order that superseded previous orders, titled “Blueprint for a Safer Economy”; this order was in effect when plaintiffs filed the present lawsuit. Id. ¶ 52; St.’s RJN Ex. 9. The Blueprint for a Safer Economy classified counties using color-coded tiers—purple, red, orange, and yellow—to indicate the severity of restrictions applicable. Compl. ¶¶ 52–53. Depending on the tier, restaurants were required to (1) “cease all indoor dining (Purple tier)”; (2) “limit indoor dining capacity to 25% (Red tier)”; or (3) “limit indoor dining capacity to 50% (Orange and Yellow tiers).” Id. ¶ 53. Nevada County also issued orders, generally mirroring the State’s restrictions. See id. ¶¶ 56–67. Plaintiffs were subject to red tier restrictions from August 28 through September 21, and subject to the orange and yellow tiers from September 22 until they filed this action on November 11, 2020. Id. ¶ 77. B. Nevada County’s Enforcement Plaintiffs offered indoor dining in contravention of the orders summarized above. Id. ¶ 70. On July 21, 2020, the County served plaintiff-restaurants with orders requiring immediate closure, citing an “imminent and substantial health hazard” and threatening fines for violating the state’s restrictions on in-person dining. Id. ¶ 69; Cnty.’s RJN Exs. F–G. Plaintiffs allege the closure orders were “arbitrary and capricious” because the County Defendants made no “specific finding” of an “imminent and substantial health hazard.” Compl. ¶ 69. Plaintiffs also allege the County singled them out for enforcement. Three other restaurants were offering indoor dining but did not receive closure orders. Id. ¶ 70. Plaintiff-restaurants then organized “the Coalition,” a letter-writing group, to oppose the County’s shutdown orders. Id. ¶¶ 71–72. The coalition is also a plaintiff in this case, and plaintiffs allege the Nevada County defendants responded to the coalition’s creation by “coerc[ing] plaintiffs to forego their First Amendment rights.” Id. ¶ 73. Specifically, plaintiffs allege when they spoke with Nevada County Director of Environmental Health Amy Irani and Nevada County Counsel Katharine Elliott about ways to reopen their restaurants, Ms. Elliott made two statements: (1) as a condition of reinstituting their operating permits and reducing their fines, plaintiffs were to “behave” and stop asking people to write letters to county and local officials, id. ¶ 74; and (2) plaintiffs’ creation of the coalition was grounds to refuse to negotiate a reduction in fines, id. ¶ 75. Plaintiffs further allege Ms. Elliott’s statements were made “on behalf of the Supervisor Defendants and were the official policy of Nevada County.” Id. ¶ 76. C. Procedural History Plaintiffs’ complaint asserts five claims against the State and County Defendants and one claim against only the County Defendants. Against both sets of defendants, plaintiffs allege violations of their rights under the United States Constitution, including their substantive and procedural due process rights under the Fourteenth Amendment (claims 1–2), id. ¶¶ 90–127; their right to equal protection under the Fourteenth Amendment (claim 3), id. ¶¶ 128–137; the right to just compensation for their property under the Fifth Amendment (claim 4), id. ¶¶ 138–145; and their right to engage in interstate commerce under the Commerce Clause (claim 5), id. ¶¶ 146– 155. Plaintiffs seek an order declaring the challenged restrictions unconstitutional and enjoining their enforcement. Id. (Prayer for Relief). Against only the Nevada County Defendants, plaintiffs seek damages for the above-alleged constitutional violations and for violations of their First Amendment rights to free speech, lawful a

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