107 F.4th 693
7th Cir.2024Background
- Indiana Land Trust #3082 owns property in Hammond, Indiana, operated by the Abuzir brothers as a lucrative fireworks and tobacco business, mainly due to its proximity to Illinois.
- The City of Hammond initiated eminent domain proceedings in 2018 to acquire the property for building a road connecting Water Gardens neighborhood to Indianapolis Boulevard.
- Indiana’s eminent domain procedures allow property owners to object, but not file counterclaims, in state court condemnation actions.
- The Abuzirs objected in state court, alleging the taking was pretextual—motivated by animus and to benefit political allies, and not truly for public use.
- Unable to proceed with counterclaims in state court, the Abuzirs filed suit in federal court, claiming constitutional violations and a conspiracy under 42 U.S.C. § 1983; their claims were repeatedly dismissed by the district court, ultimately with prejudice.
- On appeal, the Abuzirs challenged dismissals of their equal protection (class-of-one), substantive due process, and conspiracy claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Equal Protection: Class-of-One | City treated Abuzirs differently from similarly situated property owners without rational basis—motivated by political animus. | City had rational basis (building a road); complaint itself provides rational basis. | Dismissed; rational basis apparent on complaint's face. |
| Substantive Due Process | City’s action was arbitrary, violated Abuzirs’ property rights, and bore no substantial relation to public welfare. | No deprivation of property yet (state proceedings ongoing); proposed amendment futile. | Dismissal affirmed; no protectable interest deprived and rational basis exists. |
| Conspiracy under § 1983 | City and others conspired to unlawfully take property because Abuzirs were political opponents. | No underlying constitutional violation pled to support conspiracy. | Dismissal affirmed; must plead underlying violation, which is absent here. |
| Monell Claim | Dismissal of municipality liability claim improper. | No arguments advanced in appeal. | Waived for lack of development. |
Key Cases Cited
- Proft v. Raoul, 944 F.3d 686 (7th Cir. 2019) (standard for motion to dismiss; complaint must be construed in light most favorable to plaintiff)
- 145 Fisk, LLC v. Nicklas, 986 F.3d 759 (7th Cir. 2021) (standard for class-of-one equal protection claims)
- Chicago Studio Rental, Inc. v. Ill. Dep’t of Comm., 940 F.3d 971 (7th Cir. 2019) (rational basis need not be actual basis; conceivable basis suffices)
- Zorzi v. Cnty. of Putnam, 30 F.3d 885 (7th Cir. 1994) (substantive due process requires deprivation of protected interest)
- Starnes v. Capital Cities Media, Inc., 39 F.3d 1394 (7th Cir. 1994) (conspiracy under §1983 requires deprivation of constitutional right)
