Embassy Realty Investment, LLC v. City of Cleveland
877 F. Supp. 2d 564
N.D. Ohio2012Background
- Embassy Realty Investments bought the disputed Cleveland property from Barnes, who previously acquired it from the Church; Barnes is an Embassy shareholder.
- A 1998 City of Cleveland notice condemned the property for housing violations and the notice was served on the Church with appeal rights.
- Plaintiffs allege the 1998 notice was defective and the City took no action through 2007, resulting in Barnes’s title search missing the condemned status.
- In 2007 Barnes pursued permits; a 2007 building permit was issued then revoked due to the 1998 notice; Captain Buffalo Foods was contracted to remodel and operate a coffeehouse.
- In 2007–2009, the City denied permits, issued stop-work orders, and hearings occurred before the local Building Standards and Building Appeals (BBS/BA); Captain Buffalo was criminally fined $25,000 in 2007 for a building code violation.
- In 2009 the City demolished the building despite ongoing appeals, and in 2011 Embassy, Barnes, and Captain Buffalo filed suit alleging constitutional violations and a Monell claim against the City.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Rooker-Feldman jurisdictional bar | Embassy argues no bar because injury stems from third-party actions, not state judgments. | Defendants contend the relief seeks review of state judgments, barred by Rooker-Feldman. | Rooker-Feldman does not bar where injury source is independent of state orders. |
| Heck v. Humphrey applicability | Cap. Buffalo’s fine does not bar §1983 claims since no custody/habeas issue. | Defendants argue Heck bars §1983 claims arising from criminal convictions. | Heck does not bar the claims; Buffalo was not in custody and habeas review was unavailable. |
| Absolute immunity for Denk | Denk participated in the administrative appeal and should face §1983 liability. | Denk acted in a quasi-judicial capacity during the local BBS/BA appeal and is absolutely immune. | Denk is absolutely immune for participation in the administrative appeal; immunity extends to that conduct but not necessarily to all alleged actions. |
| Scope of dismissal and striking attached documents | Pls seek to strike or convert to summary judgment to permit discovery. | Documents are central/public records integral to claims; may be considered without conversion. | Ruling: court may consider attached documents; motion to strike/convert denied. |
Key Cases Cited
- Exxon Mobil Corp. v. Saudi Basic Indus. Corp., 544 U.S. 280 (U.S. 2005) (Rooker-Feldman source-of-injury doctrine framework)
- Kovacic v. Cuy. County Dep’t of Children & Family Servs., 606 F.3d 301 (6th Cir. 2010) (source-of-injury approach to Rooker-Feldman)
- Lawrence v. Welch, 531 F.3d 364 (6th Cir. 2008) (source-of-injury standard applied to Rooker-Feldman)
- McCormick v. Braverman, 451 F.3d 382 (6th Cir. 2006) (distinguishing independent claims from state-judgment-injury)
- Powers v. Hamilton County Pub. Defender Comm’n, 501 F.3d 592 (6th Cir. 2007) ( Heck-related analysis for monetary penalties without custody)
- Todd v. Weltman, Weinberg & Reis Co., 434 F.3d 432 (6th Cir. 2006) (no jurisdictional bar where injury arose from third-party conduct)
- Dotzel v. Ashbridge, 438 F.3d 320 (3d Cir. 2006) (adversarial nature and writings as part of quasi-judicial immunity factors)
- Irshad Learning Ctr. v. Cnty. of DuPage, 804 F.Supp.2d 697 (N.D.Ill. 2011) (supports quasi-judicial immunity analysis for board members)
- Forrester v. White, 484 U.S. 219 (U.S. 1988) (foundation for functional approach to immunity)
- Heyde v. Pittenger, 633 F.3d 512 (7th Cir. 2011) (immunity considerations and quasi-judicial function)
