Chrebet v. County of Nassau
24 F. Supp. 3d 236
E.D.N.Y2014Background
- Chrebet owned Chrebet's Inc. and served as its president; he had a consulting agreement with Prince.
- Prince was alleged to have controlled Chrebet's operations; plaintiff claimed Prince’s involvement harmed business.
- June 14–15, 2007: fire marshal and police conducted overcrowding/permit checks, with contested counts and licensing postings.
- June 21–22, 2007: Soto cited license posting issues and arrested Prince on an open warrant; Prince was a central figure in enforcement actions.
- March 2008 raids and meetings involved Fitzgerald, Rothenberg, Szymanski, and others; discussions referenced Prince and his role.
- Chrebet’s closed in August 2008; plaintiff later sought damages and brought §1983 and state-law claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Chrebet had a protectable property interest | Chrebet asserts ownership and business interests were deprived. | No cognizable property interest in the business or future profits. | No protectable property interest established. |
| Whether Chrebet had a protectable interest in his relationship with Prince | Employer had a direct, independent property interest in continued relationship. | No such protected interest; contract allowed termination; no standing to sue for independent relationship. | No genuine issue of fact; no protectable interest. |
| Whether reputational loss constitutes stigma plus due process | Loss of reputation plus actions reduced his rights and business standing. | No false, actionable statement proven; stigma alone insufficient. | Stigma-plus claim failed; no due process violation. |
| Whether federal due process and parallel state claims were viable | Due process rights under federal and state constitutions were violated. | No federal due process violation; parallel NY claim also fails. | Both federal and state due process claims dismissed. |
| Whether supervisory/municipal liability could be established | Supervisory/municipal liability for widespread enforcement actions. | No underlying constitutional violation; no Monell/supervisor liability. | Claims dismissed. |
Key Cases Cited
- Bd. of Regents of State Colleges v. Roth, 408 U.S. 564 (1972) (property interests defined by state/independent sources)
- College Savings Bank v. Florida Prepaid Postsecondary Educ. Expense Bd., 527 U.S. 666 (1999) (business/assets not guaranteed as property; due process limits)
- San Jacinto Savings & Loan v. Kacal, 928 F.2d 697 (5th Cir.1991) (lost profits as measure of damages; due process context)
- Evac, LLC v. Pataki, 89 F. Supp. 2d 250 (N.D.N.Y.2000) (non-constitutional harms to business operations discussed)
- Stein v. Bd. of the City of N.Y., Bureau of Pupil Transp., 792 F.2d 13 (2d Cir.1986) (properties/entitlements derived from independent sources)
- Sadallah v. City of Utica, 383 F.3d 34 (2d Cir.2004) (defamation vs. stigma-plus due process distinction)
- Patterson v. City of Utica, 370 F.3d 322 (2d Cir.2004) (stigma-plus framework for due process claims)
- Kronos v. AVX Corp., 81 N.Y.2d 90 (1993) (injury accrual for tort claims under NY law)
- Doe v. Dept. of Pub. Safety ex rel. Lee, 271 F.3d 38 (2d Cir.2001) (false statements and due process implications in stigma context)
