Vondra v. City of Billings

CourtDistrict Court, D. Montana
DecidedMarch 10, 2025
Docket1:22-cv-00030
StatusUnknown

This text of Vondra v. City of Billings (Vondra v. City of Billings) is published on Counsel Stack Legal Research, covering District Court, D. Montana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vondra v. City of Billings, (D. Mont. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MONTANA BILLINGS DIVISION

THERESA VONDRA, DONNA PODOLAK, LYNDA LARVIE, CV 22-30-BLG-KLD and ADAM POULOS

Plaintiffs, ORDER

vs.

CITY OF BILLINGS,

Defendant.

This matter comes before the Court on Plaintiffs’ motion for attorney fees (Doc. 106) and cross-applications for taxation of costs (Docs. 105 and 107). The issues are fully briefed and ripe for ruling. I. Background This case arises from Billings City Ordinance 21-5757 (“the Ordinance”), entitled “An Ordinance of the City of Billings, Montana, Regulating Massage and Spa Facilities Through Business Licensing Criteria, Providing Exemptions, Authorizing the City Administrator or Designee to Administratively Deny, Suspend or Revoke Business Licenses and Allowing an Appeal From Such Action and Providing for Criminal and Civil Penalties Upon Conviction of a Violation in Order to Combat Human Trafficking and to Promote the Health and Welfare of the Billings Community.”1 The Ordinance requires licensure to operate a massage or spa facility in Billings and requires an exemption under the Ordinance for solo

practitioners to operate a massage therapy business. The definition of massage or spa facility excludes solo practitioners. The Ordinance has many provisions, but notably has several provisions

authorizing inspections of massage therapists’ property. It also allows code enforcement and law enforcement officials to enter a massage therapy business at any time during business hours to determine “compliance with any law” and allows the inspection of rooms, cabinets and storage areas. The Ordinance requires

every licensee to keep a complete set of records and logs for all massage therapies administered, and states that the records are subject to inspection upon request. Plaintiffs Vondra, Podolak and Larvie are licensed massage therapists in

Billings, and Plaintiff Poulos is a client of Plaintiff Vondra. Plaintiff Vondra operates a massage company employing six massage therapists, Plaintiff Larvie operates as a solo practitioner in a commercial space, and Plaintiff Podolak operates as a solo practitioner in her home.

Plaintiffs sued the City of Billings (“the City”), alleging the Ordinance violates their Fourth Amendment rights and asserting three claims under 42 U.S.C.

1 For the purposes of deciding the instant issues, the Court relies on and incorporates the factual findings in Doc. 102. § 1983. Count I for “physical invasion of property” alleges the Ordinance violates the Fourth Amendment on its face because it subjects “private areas of businesses”

and “private business records” to “unreasonable warrantless searches in the form of physical trespasses” by City code enforcement officials and law enforcement officers. (Doc. 1, ¶¶ 107–122). Count II for “invasion of privacy” alleges the

Ordinance violates the Fourth Amendment on its face because it “confers warrantless search powers” to City code enforcement officials and law enforcement officers. (Doc. 1, ¶¶ 123–137). Count III alleges the Ordinance is unconstitutional on its face and as applied because it violates the “unconstitutional

conditions doctrine” by conditioning licensure on the surrender of the applicant’s Fourth Amendment rights. (Doc. 1, ¶¶ 138–149). For their remedy, Plaintiffs sought a declaratory judgment that the Ordinance

violates the Fourth Amendment, and injunctive relief permanently enjoining the City from enforcing the Ordinance in its entirety, or in the alternative, enjoining it from enforcing the Ordinance by conducting future warrantless searches of Plaintiffs’ businesses, homes, and papers, or of any similarly situated massage

therapy businesses or practitioners. (Doc. 1, ¶¶ 150-157). Plaintiffs also sought an award of nominal damages, attorneys’ fees, and “all other legal and equitable relief to which [they] may be entitled.” (Doc. 1, ¶¶ 159–116). The parties cross-moved for summary judgment, and the Court heard argument on the motions on May 7, 2024. On June 7, 2024, the Court issued its

order granting and denying the cross-motions. (Doc. 102). The Court found that Montana’s massage therapy industry is subject to the warrant exception for administrative searches of “closely regulated” industries, and that, with limited

exception, the Ordinance as written is reasonable under the criteria set out in New York v. Burger, 382 U.S. 692, 702-703 (1987). Specifically, the Court found that Sections 7-1910(k), 7-1911(c), 7-1911(f), and 7-1912(d) and (f) were overbroad as to solo practitioners operating in their homes because those sections impliedly

subject them to searches in private areas of their homes and require persons in the private areas of the home to present identification. (Doc. 102 at 26-27). The Court additionally found that Section 7-1912(c), which allows

inspections to “determine compliance with any law,” was overbroad because it failed to preclude general searches by state officials, thereby potentially allowing searches beyond those authorized under Burger. (Doc. 102 at 28). Finally, the Court found that because the search conditions with respect to private areas of solo

practitioners’ homes were unreasonable, they placed an unconstitutional condition on the exercise of Plaintiff Podolak’s, and other similarly situated individuals’, Fourth Amendment rights. However, the Ordinance search conditions did not place an unconstitutional condition on the Fourth Amendment rights of the other Plaintiffs.

In sum, Plaintiff Podolak prevailed on invalidating the inspection provision as it applies to solo practitioners operating out of their homes, and all Plaintiffs prevailed to the extent Section 7-1912(c) allows inspections to determine

compliance with any law. In all other respects, the Ordinance was found constitutional and Plaintiffs were denied their declaratory and injunctive relief. II. Discussion A. Attorney Fees

Plaintiffs seek $135,544 in attorney fees for the work done through summary judgment, and an additional $1,963 for the time spent preparing their motion for attorney fees, for a total of $137,511. (Doc. 106 at 3). The City argues Plaintiffs are

not entitled to any fees as they are not the prevailing party or, alternatively, if they are considered the prevailing party, the fees awarded should be significantly reduced in light of the limited success of their claims. 1. Prevailing Party Status

In a case brought pursuant to 42 U.S.C. § 1983, the Court has discretion to award a reasonable attorney fee to the prevailing party. See 42 U.S.C. § 1988(b). “[A] plaintiff who wins nominal damages is a prevailing party under § 1988.”

Farrar v. Hobby, 506 U.S. 103, 112 (1992). However, that does not end the analysis of entitlement to attorney fees. In Farrar, the Supreme Court held that while “the ‘technical nature of a nominal damages award or any other judgment

does not affect the prevailing party inquiry, it does bear on the propriety of fees awarded under § 1988.” Farrar, 506 U.S. at 114. When a plaintiff receives a nominal damage award because he or she failed to prove an element of a claim for

compensatory damages, “the only reasonable fee is usually no fee at all.” Farrar, 506 U.S. at 115. That is a reasonable conclusion because an award of nominal damages, when the primary purpose of the claim was to receive money damages, evidences a low degree of success and a failure to prove compensable injury.

Wilcox v.

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