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Rockville Cars, LLC v. City of Rockville
891 F.3d 141
4th Cir.
2018
Read the full case

Background

  • Rockville Cars leased property owned by Robin Tang to convert an existing storefront building into an auto showroom.
  • Rockville Cars submitted a Minor Site Plan Application (stating renovation of the existing building; owner listed correctly) and later a Commercial Building Permit Application (stating demolition/rebuild and incorrectly listing Priority 1 as owner).
  • The City issued a building permit in Tang’s name; Rockville Cars demolished the building leaving the slab.
  • Tang later revoked his permission; the City suspended the permit by Stop Work Order, citing misalignment with the Minor Site Plan and a local "build-to" zoning provision triggered by demolition.
  • Rockville Cars sued under 42 U.S.C. § 1983 alleging violation of procedural due process; the District Court dismissed, holding no protected property interest vested because the permit was obtained by material misrepresentations and, alternatively, that Rockville Cars failed to pursue available administrative and state remedies.
  • The Fourth Circuit affirmed: no property interest vested in a permit obtained by material misrepresentations; even if it had, Rockville Cars failed to seek available post-deprivation remedies (Board of Appeals, state courts).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the permit conferred a constitutionally protected property interest Rockville Cars: permit created an entitlement to stay that triggers due process City: permit void ab initio because it was obtained by material misrepresentations and violated zoning; no vested interest Held: No protected property interest vested because permit was obtained via material misrepresentations and zoning violation
Whether Rockville Cars was deprived of any property interest without due process Rockville Cars: suspension deprived it without adequate process City: even if there was deprivation, available administrative and state remedies were sufficient and were not pursued Held: Alternate ground for dismissal — Rockville Cars failed to pursue available post-deprivation remedies, so § 1983 claim fails
Whether the District Court improperly relied on extrinsic documents in dismissing Rockville Cars: court relied on materials outside the complaint City: documents were authentic and integral; dismissal proper Held: Court found reliance unnecessary to decide merits; Fourth Circuit did not need to reach this issue
Whether remand to a different judge was required Rockville Cars: procedural error warranted remand City: no error requiring remand Held: Not addressed as unnecessary once dismissal affirmed

Key Cases Cited

  • Bd. of Regents v. Roth, 408 U.S. 564 (property interests are created by state law)
  • Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532 (recognition that property interest can exist despite false application statements)
  • Marzullo v. Kahl, 783 A.2d 169 (Md. 2001) (permit improperly issued does not create vested rights)
  • Tri Cty. Paving, Inc. v. Ashe County, 281 F.3d 430 (4th Cir. 2002) (evaluate full panoply of state pre- and post-deprivation remedies)
  • Mora v. City of Gaithersburg, 519 F.3d 216 (4th Cir. 2008) (state remedies relevant to § 1983 procedural due process claims)
Read the full case

Case Details

Case Name: Rockville Cars, LLC v. City of Rockville
Court Name: Court of Appeals for the Fourth Circuit
Date Published: May 24, 2018
Citation: 891 F.3d 141
Docket Number: 17-1175
Court Abbreviation: 4th Cir.