Skagway JewelryCo LLC v. Westmark Hotels Inc., 1:16-cv-00005

Plaintiff Indresh Chawla, owner of Skagway Jewelry Co., leased retail space in a Westmark-owned building; a March 2012 fire destroyed the space and Westmark did not restore or terminate the lease.
Chawla alleges Westmark/Holland America representatives promised him a right of first refusal and that his cash offers to buy the property were rejected.
The property was listed publicly in fall 2014; Chawla made a final $551,000 offer via agent Ryan Williams on Oct. 27, 2014.
Defendant David Brena (and his company Alyeska Realty Advisors) submitted a competing offer; Westmark accepted Brena’s offer for $552,000 on Oct. 28, 2014.
Chawla sued multiple defendants asserting claims including breach of contract, § 1982 racial-discrimination in property transactions, tortious interference with prospective business advantage, fraud, and related state-law broker claims; Brena moved to dismiss the claims against him.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Brena intentionally interfered with Chawla's prospective economic advantage	Chawla: Brena colluded with agent Smith to block Chawla’s right of first refusal and caused loss by submitting a competing offer and conspiring with the agent	Brena: He lawfully submitted a competing bid on a publicly listed property and acted in his own economic interest; no special expectancy or wrongful conduct alleged	Court: Dismissed — Chawla failed to plead a superior contract expectancy, knowledge of a special expectancy by Brena, wrongful conduct beyond a competing bid, or causation
Whether Brena violated 42 U.S.C. § 1982 (racial discrimination in property transactions)	Chawla: As an Indian by descent, he was denied property rights enjoyed by white citizens when the sale went to Brena despite his offer	Brena: A competing buyer is not the actor who ‘rejected’ the buyer under § 1982; no allegation Brena knew of or acted because of Chawla’s race	Court: Dismissed — § 1982 claim not properly pleaded against a competing bidder and no facts showing race-based conduct

Hishon v. King & Spalding, 467 U.S. 69 (legal conclusions must be supported by factual allegations)
Ashcroft v. Iqbal, 129 S. Ct. 1937 (pleading standard requires factual content plausibly showing entitlement to relief)
Gilligan v. Jamco Dev. Corp., 108 F.3d 246 (Rule 12(b)(6) review focuses on whether plaintiff may offer evidence supporting claims)
J & S Servs., Inc. v. Tomter, 139 P.3d 544 (Alaska 2006) (elements of intentional interference with prospective economic advantage)
Powercorp Alaska LLC v. Alaska Energy Authority, 290 P.3d 1173 (Alaska 2012) (limitations on what constitutes a protected contract expectancy)
Phiffer v. Proud Parrot Motor Hotel, Inc., 648 F.2d 548 (prima facie § 1982 elements)
Sullivan v. Little Hunting Park, Inc., 396 U.S. 229 (party who ‘rejected’ must be actionable defendant under discrimination claims)