Universal Meditech, Inc. et al. v. City of Reedley, et al.

District Court, E.D. California·Decided January 29, 2026·No. 1:24-cv-00528·Unknown

Opinion

UNIVERSAL MEDITECH, INC. et al., Case No. 1:24-cv-00528 JLT EPG

Plaintiffs, ORDER GRANTING MOTIONS TO DISMISS WITH LEAVE TO AMEND IN v. (Docs. 7, 9, 28) CITY OF REEDLEY, et al., Defendants. Universal Meditech, Inc. (UMI) alleges the City of Reedley, California, the County of Fresno, and two federal agents obtained warrants to search its warehouse based on false or misleading affidavits. David He, UMI’s representative, alleges federal agents used excessive force when they arrested him. Defendants move to dismiss. (Docs. 7, 9, 28.) The Court agrees with Defendants that the complaint does not state a claim upon which relief can be granted under Rule 12(b)(6). UMI alleges it is a California corporation in good standing that has operated lawfully in Tulare and Fresno counties since 2015. (Doc. 1 ¶ 4.) It claims to have had authorization from the federal Food and Drug Administration to produce “diagnostic testing kits and other biologic medical devices.” (Id.) Its ownership is based in China, and Mr. He, a Chinese national living in California, was “at all times” the company’s “authorized representative.” (Id.) The events that ultimately led to this litigation began in the fall of 2022, when UMI had an unspecified “business dispute” with its landlord in Fresno. (Id.) The company left Fresno and rented a warehouse in Reedley, where it began storing its assets temporarily until a new facility could be constructed. (Id.) UMI stresses in its complaint that the Reedley warehouse “was simply that, a warehouse” where its assets were stored. (Id.) The company “was not in active business,” though it did “monitor and maintain” the assets in the warehouse, such as its “laboratory mice,” “biological materials,” and “medical devices.” (Id.) Soon after the company moved its assets into the warehouse, it came under investigation by local and federal agencies. (Id. ¶ 15.) UMI alleges the investigations were based on a “false narrative” that the company was performing dangerous work and that the warehouse was actually an “illegal Chinese lab” engaging in “bioterrorism.” (Id. ¶¶ 22–23.) Although Mr. He and UMI “cooperated fully in the investigation”; although they made clear to the authorities that the company “was not in active business”; although the company always kept “its assets safely and securely stored”; and although “there was never any indication of any threat to public health and safety,” the investigating agencies successfully pursued judicial warrants to inspect the warehouse, search and seize its contents, and ultimately to destroy UMI’s property. (See id. ¶¶ 15–22.) Each of these warrants, UMI claims, was based on false allegations that the company “was operating an illegal laboratory, not merely storing its assets, and that it was engaging in hazardous and unlawful activities.” (Id. ¶¶ 17–21.) The company lost “millions of dollars of property without lawful justification.” (Id. ¶ 22.) It was reduced to “a worthless pariah.” (Id. ¶ 23.) Despite these setbacks, UMI and Mr. He continued to cooperate with investigators. (Id. ¶ 24.) In October 2023, Mr. He went to what he believed was a meeting with the local authorities. (Id.) The meeting was a pretext. (Id.) Federal officers took him into custody under “baseless federal criminal charges.” (Id.) He is currently facing charges of wire fraud, conspiracy to commit wire fraud, distribution of adulterated and misbranded medical devices, and making false statements to officers of the federal Food and Drug Administration. See Case No. 1:23-cr-00219 DAD EPG Doc. 77 (first superseding indictment).1 Mr. He alleges the agents “used unreasonable and excessive force” when they arrested him, “which resulted in his sustaining a severe head injury that continues to cause him serious health issues and pain.” (Id.) In this lawsuit, UMI alleges its property was unlawfully seized and destroyed without due process in violation of the Fourth, Fifth, and Fourteenth Amendments to the U.S. Constitution. (Id. ¶¶ 25–28.) It names four officers as defendants, each in an individual capacity: Jeremy Harrison, a building officer for the City of Reedley; Jessalyn Harper, a City code enforcement officer; Jerry Isaak, the City’s Fire Chief; and Humberto Prado, the Assistant Public Health Director of the Fresno County Department of Public Health. (Id. ¶¶ 7–11). UMI asserts a similar claim under California law against the same four officers, the City of Reedley, and the County of Fresno. (Id. ¶¶ 29–33.) Finally, Mr. He and UMI allege the two federal officers—Special Agents Jeffrey Maurice and Maridehl Mather of the FDA’s Office of Criminal Investigations—deprived them of their rights under the Fourth and Fifth Amendments. (Id. ¶¶ 34–37.) Each defendant moves to dismiss the complaint. The City, Officers Harrison and Harper, and Chief Isaak (the City Defendants) move to dismiss for lack of jurisdiction under Federal Rule of Civil Procedure 12(b)(1) and for failure to state a claim under Rule 12(b)(6). (Doc. 9.) The County and Assistant Director Prado (the County Defendants) move to dismiss for failure to state a claim. (Doc. 7.) Special Agents Maurice and Maridehl (the Federal Defendants) also move to dismiss for failure to state a claim. (Doc. 28.) UMI and Mr. He oppose these motions in part. They concede their state law claims must be dismissed (Doc. 20 at 17–18.), but they maintain that the Court has jurisdiction to hear their federal civil rights claims and that those claims are viable, (see Docs. 20 at 10–17; 29 at 9–14). Each group of Defendants has filed a reply, and the Court took the motions under submission without hearing oral arguments. (Docs. 15, 22, 23, 30, 31.) The City Defendants argue at the threshold that the Court lacks jurisdiction over this case 1 The Court takes judicial notice of the filings in the criminal case but not the truth of any allegations within those filings. See United States ex rel. Robinson Rancheria Citizens Council v. Borneo, Inc., 971 F.2d 244, 248 (9th Cir. 1992) (permitting judicial notice of other proceedings at all under the Rooker–Feldman doctrine. That doctrine bars federal district courts from hearing “a direct appeal from the final judgment of a state court.” Noel v. Hall, 341 F.3d 1148, 1154 (2003). The City Defendants argue this case is, for all practical purposes, an appeal of the state superior courts’ decision to issue warrants and other orders related to UMI’s warehouse. (Doc. 9- 1 at 7–8.) Although “the Rooker–Feldman doctrine is exceedingly easy” to apply in a “routine” case, it can “become difficult—and, in practical reality, only comes into play as a contested issue— when a disappointed party seeks to take not a formal direct appeal, but rather its de facto equivalent, to a federal district court.” Noel, 341 F.3d at 1155. This has “led to a good deal of misunderstanding over the years, with lower federal courts struggling to evaluate their jurisdiction in cases involving parties who had previously litigated against each other in state court.” Miroth v. County of Trinity, 136 F.4th 1141, 1146 (9th Cir. 2025). In 2005, the Supreme Court “confined” the Rooker–Feldman doctrine “to cases of the kind from which the doctrine acquired its name: cases brought by state-court losers complaining of injuries caused by state-court judgments rendered before the district court proceedings commenced and inviting district court review and rejection of those judgments.” Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280, 284 (2005). To underscore how limited the Rooker–Feldman doctrine is, the Supreme Court wrote that federal district courts have jurisdiction even when a p

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Universal Meditech, Inc. et al. v. City of Reedley, et al., (E.D. Cal. 2026).

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