WAKLEY v. SUSTAINABLE LOCAL FOODS LLC
1:16-cv-00884
S.D. Ind.May 19, 2017Background
- Plaintiffs Victor and Julie Wakley sued multiple defendants, including Sustainable Local Foods LLC (Ohio) and the City of Indianapolis, arising from events in Indiana related to eviction of Save Our Veterans, Inc. from a leased property.
- Plaintiffs served and named an Ohio LLC (SLF Ohio) owned/registered to Nicholas Bloom; service was effected in Waterville, Ohio.
- Evidence showed the entity that operated in Indianapolis was a separate Indiana LLC also called Sustainable Local Foods LLC (SLF Indiana) with an Indianapolis registered agent and address.
- The Plaintiffs alleged a § 1983 due-process conspiracy claim (Tenth Cause) based on deprivation of the leasehold, but the Amended Complaint identified Save Our Veterans, Inc. — not the Wakleys — as the party holding the lease for the property.
- The Court allowed Plaintiffs leave to replead certain claims (including constitutional claims) by June 1, 2017, and dismissed SLF Ohio for lack of personal jurisdiction and dismissed the City claim for lack of standing (without prejudice).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction over SLF Ohio | SLF Ohio was served in Ohio and associated individuals (James Bloom) connect it to events | SLF Ohio is an Ohio entity not involved in the Indiana events; SLF Indiana is the operative entity | Dismissed SLF Ohio for lack of personal jurisdiction; plaintiff failed to make a prima facie showing |
| Nature of plaintiff's property interest for § 1983 claim | Wakleys asserted deprivation of lease interest; later claimed Victor personally leased the property | City: the lease belonged to Save Our Veterans, Inc., so Wakleys lack standing (derivative injury) | Dismissed § 1983 claim for lack of standing (without prejudice); plaintiffs may replead if they can show personal interest |
| Sufficiency of Amended Complaint for constitutional claim (Twombly/Iqbal) | Plaintiffs argued facts in opposition supplement pleadings (e.g., alternate lease) | City: complaint fails to plead facts showing Wakleys were real parties in interest or what due process was owed | Complaint fails to state a plausible constitutional claim; dismissal warranted unless repleaded with facts |
| Repleading and scope of Second Amended Complaint | Plaintiffs sought to preserve multiple claims against various defendants | Court required a single Second Amended Complaint containing all claims to be pursued and barred naming SLF Ohio again | Plaintiffs may file Second Amended Complaint by deadline; failure to replead results in dismissal with prejudice for constitutional claim |
Key Cases Cited
- Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773 (7th Cir. 2003) (prima facie showing suffices to survive personal-jurisdiction motion without evidentiary hearing)
- Helicopteros Nacionales de Colombia, S.A. v. Hall, 466 U.S. 408 (1984) (distinguishes general and specific personal jurisdiction)
- Doermer v. Callen, 847 F.3d 522 (7th Cir. 2017) (shareholder may not pursue derivative corporate injury as personal claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (plausibility standard for pleadings under Rule 8)
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (complaint must state a plausible claim to survive dismissal)
- LinkAmerica Corp. v. Albert, 857 N.E.2d 961 (Ind. 2006) (Indiana permits jurisdiction to the full extent allowed by federal due process)