Wharf, Inc. v. District of Columbia

232 F. Supp. 3d 9, 2017 WL 123720, 2017 U.S. Dist. LEXIS 4366
CourtDistrict Court, District of Columbia
DecidedJanuary 12, 2017
DocketCivil Action No. 2015-1198
StatusPublished
Cited by8 cases

This text of 232 F. Supp. 3d 9 (Wharf, Inc. v. District of Columbia) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wharf, Inc. v. District of Columbia, 232 F. Supp. 3d 9, 2017 WL 123720, 2017 U.S. Dist. LEXIS 4366 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, United States District Judge

Plaintiffs filed suit on July 23, 2015, against the District of Columbia (“the District”) as well as Hoffman-Madison Waterfront, LLC (“HMW”) and Wharf Horizontal REIT Leaseholder, LLC (“WHRL”), collectively, the “Developer Defendants.” Plaintiffs allege that the Developer Defendants violated the terms of the parties’ lease agreements, and that the District violated the Takings Clause of the Fifth Amendment by impeding access to the leased property. On May 9, 2016, Defendant WHRL filed its First Amended Counterclaim against Plaintiffs for unjust enrichment, quantum meruit, and ejectment under a theory of breach of contract or, in the alternative, as tenants at sufferance.

Presently before the Court are; Plaintiffs’ [61] Motion to Dismiss Wharf Horizontal REIT Leaseholder LLC’s Amended Counterclaims; Developer Defendants’ [58] Motion to Strike Plaintiffs’ Demand for Jury Trial; Defendants’ [57] Motion to Set a Rule 16 Initial Scheduling Conference; and Plaintiffs’ [62] Motion for Leave to File a Surreply to Developer Defendants’ Reply in Further Support of their Motion to Set a Rule 16 Initial Scheduling Conference. Upon consideration of the pleadings, 1 the relevant legal authorities, *12 and the record as a whole, the Court: DENIES Plaintiffs’ [61] Motion to Dismiss Wharf Horizontal REIT Leaseholder LLC’s Amended Counterclaims; DENIES WITHOUT PREJUDICE Developer Defendants’ [58] Motion to Strike Plaintiffs’ Demand for Jury Trial; DENIES AS MOOT Defendants’ [57] Motion to Set a Rule 16 Initial Scheduling Conference; and DENIES AS MOOT Plaintiffs’ [62] Motion for Leave to File a Surreply to Developer Defendants’ Reply in Further Support of their Motion to Set a Rule 16 Initial Scheduling Conference for the reasons described herein.

I. BACKGROUND

A. Factual Background

By way of background, the Court shall briefly set out the facts as alleged in Plaintiffs’ First Amended Complaint, reserving further presentation of the facts alleged in WHRL’s First Amended Counterclaim for the discussion of the individual issues below. This case concerns the Municipal Fish Market located at 1100 Maine Avenue, S.W., Washington, D.C. (“Municipal Fish Market” or “the Market”). Compl. ¶ 1. Plaintiffs, Wharf, Inc. (“The Wharf’), BRW, Inc. (“Captain White”), and Salt Water Seafood, Inc. (“Salt Water”), run three seafood businesses in the Municipal Fish Market and bring this action as lessees of property located within the Market. Id. ¶ 2. Each of the Plaintiffs’ businesses is owned and operated by members of the White family. Id. ¶ 34. Defendants are the District of Columbia (“the District”), the original lessor of the property at issue, and the Developer Defendants HMW and WHRL, the private entities to which the District assigned its rights to the leases in question in 2014. Id. ¶¶ 1, 44.

The commercial leases at issue are: the agreement entered into by The Wharf and the District dated July 12, 2000, id. ¶ 35; the agreement entered into by Captain White and the District dated July 12, 2000, id. ¶ 37; and the agreement originally entered into by Pruitt’s Seafood, Inc., and the District dated April 1, 2001, and subsequently assumed by Salt Water (allegedly then doing business as W.D., Inc.) from DNM Seafood, Inc. on March 20, 2014, with the consent of then-lessor, the District, id. ¶ 40, Ex. D. The term of the lease agreements at issue is defined as “[t]he period that begins on the Commencement Date and ends thirty (30) Lease Years after the New Rent Commencement Date, unless sooner terminated pursuant to this Lease.” 2 Id., Ex. A at 7; id., Ex. C at 6; id., Ex. D at 16. 3 On April 23, 2014, the District assigned the leases at issue to Developer Defendants. Id. ¶ 44. Plaintiffs allege that Developer Defendants breached the terms of their lease agreements and otherwise interfered with'their use of the leased property. See generally id. ¶¶ 91-160.

*13 In their Complaint, Plaintiffs raise one claim against the District, a Fifth Amendment Takings Clause claim (Count I), related to access to the leased property. Plaintiffs also raise eight state and common law claims against the Developer Defendants: declaratory judgment (Count II); specific performance and injunctive relief based on breach of lease (Count III); damages based on breach of lease (Count IV); breach of the covenant of good faith and fair dealings (Count V); trespass and conversion (Count VI); nuisance (Count VII); tortious interference with prospective business advantage (Count VIII); and unjust enrichment (Count IX). Plaintiffs “request a jury trial for the appropriate claims for which a jury is permissible.” Compl. at 38. Defendants now move the Court to strike Plaintiffs’ jury demand on the grounds that the lease agreements contain a binding waiver of jury trial.

Defendant WHRL filed its First Amended Counterclaim against Plaintiffs. Specifically, WHRL seeks to recover from Plaintiffs on the ground of unjust enrichment and quantum, meruit. Defendant WHRL also asserts that it is entitled to immediate possession of the leased premises either on the grounds of breach of contract or because Plaintiffs are tenants at sufferance. Plaintiffs now seek to dismiss all of WHRL’s counterclaims against them.

B. Procedural Background

On August 12, 2015, Plaintiffs filed a Motion for Preliminary Injunction against Developer Defendants based on the Developer Defendants’ alleged breaches of the parties’ lease agreements. Specifically, Plaintiffs sought an order from the Court directing Developer Defendants to: (1) cease further construction and encroachments onto the Common Area of the Municipal Fish Market without meeting the conditions precedent in the Lease Agreements; and (2) to leave Plaintiffs to quietly enjoy their leased property by ending their wrongful efforts to evict Plaintiffs through proceedings in the Superior Court of the District of Columbia and otherwise harass Plaintiffs. Plaintiffs also requested that this Court stay the pending eviction proceedings in the Superior Court of the District of Columbia. 4

On August 13, 2015 and August 19, 2015, respectively, Developer Defendants and the District filed motions to dismiss Plaintiffs’ First Amended Complaint. Defendants asserted that Plaintiffs did not hold valid leases to the property in question because the leases were terminated. As such, the Developer Defendants contended that the Court should dismiss Plaintiffs’ claims against them in their entirety. Developer Defs.’ Mot. to Dismiss at 6, ECF No. [20-1]. The District also asserted that Plaintiffs did not have legally enforceable interests in the property and, consequently, could not establish that the District had taken their property without just compensation. Def. D.C.’s Mot. to Dismiss at 6, ECF No. [25-1].

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Bluebook (online)
232 F. Supp. 3d 9, 2017 WL 123720, 2017 U.S. Dist. LEXIS 4366, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wharf-inc-v-district-of-columbia-dcd-2017.