Case Information
*1 RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit Rule 206
File Name: 12a0300p.06
UNITED STATES COURT OF APPEALS
FOR THE SIXTH CIRCUIT _________________
EJS P ROPERTIES , LLC, X - - - -
Plaintiff-Appellant,
v. > , - - -
C ITY OF T OLEDO ; R OBERT M C C LOSKEY , an
individual,
Defendants-Appellees. N Appeal from the United States District Court for the Northern District of Ohio at Toledo.
No. 3:04-cv-7312—James G. Carr, District Judge.
Argued: April 19, 2012 Decided and Filed: September 5, 2012 Before: MOORE, GIBBONS, and ALARCÓN, [*] Circuit Judges.
_________________
COUNSEL ARGUED: Timothy M. Rastello, HOLLAND & HART LLP, Denver, Colorado, for Appellant. Adam W. Loukx, CITY OF TOLEDO DEPARTMENT OF LAW, Toledo, Ohio, Jay E. Feldstein, KALNIZ, IORIO & FELDSTEIN, CO., LPA, Toledo, Ohio, for Appellees. ON BRIEF: Timothy M. Rastello, Peter C. Houtsma, HOLLAND & HART LLP, Denver, Colorado, Cary Cooper, COOPER & WALINSKI, LPA, Toledo, Ohio, for Appellant. Adam W. Loukx, CITY OF TOLEDO DEPARTMENT OF LAW, Toledo, Ohio, Jay E. Feldstein, Edward J. Stechschulte, KALNIZ, IORIO & FELDSTEIN, CO., LPA, Toledo, Ohio, for Appellees.
_________________
OPINION
_________________
KAREN NELSON MOORE, Circuit Judge. In 2002, EJS Properties, LLC (“EJS”) wanted to build a charter school at a commercial site on the east side of Toledo. To do this, however, the site first needed to be re-zoned. After initial support for re- zoning from Robert McCloskey, the region’s city council representative, McCloskey eventually changed his mind and the Toledo City Council voted against re-zoning the site. But according to EJS, McCloskey did more than just change his mind. EJS claims that McCloskey’s sudden reversal occurred only after EJS refused to acquiesce to McCloskey’s demand that EJS donate $100,000 to a local retirement fund, a demand McCloskey does not deny that he made.
EJS sued the City of Toledo (“City”) and Robert McCloskey under 42 U.S.C. § 1983, claiming violations of EJS’s rights to substantive and procedural due process, its right to equal protection, and its right to petition under the First Amendment, and asserting a state-law claim of tortious interference with a business expectancy. The district court granted summary judgment for the defendants on all of the constitutional claims. The district court also granted summary judgment to the City on the state-law claim and EJS has since dropped its state-law claim against McCloskey. The district court then denied EJS’s motion for reconsideration. EJS appeals with respect to the constitutional claims only. For the following reasons, we AFFIRM .
I. BACKGROUND
On April 3, 2002, EJS entered into a written agreement with Pilkington Corporation (“Pilkington”) to purchase a twenty-acre parcel from a forty-three-acre lot that Pilkington owned on the east side of Toledo, including an existing technical center that EJS intended to convert into a charter school. The agreement was expressly contingent on obtaining a zoning change away from M-2 (industrial district), which could not house a school. J.A. at 69-70 (Purchase Agreement). EJS also entered into a fifteen-year lease agreement with Lake Erie Academy to open a charter school on the Pilkington site. The lease had no express conditions.
In May 2002, EJS filed its re-zoning petition with the Toledo-Lucas County Plan Commission (“Plan Commission”) seeking to change the zone from M-2 to C-2 for restricted offices. The staff of the Plan Commission recommended instead a change to M-3 for a planned industrial district, which would accommodate both a school and light industry. EJS accepted, and on June 13, 2002, the Plan Commission held a public hearing during which support for a charter school was mixed. J.A. at 6-19 (Comm’n Hr’g Tr.). Nonetheless, the Plan Commission recommended re-zoning the site to M-3 and passed the request to the Toledo City Council.
The City Council’s Zoning and Planning Committee held a public hearing on the zoning request on July 17, 2002. J.A. at 20-40 (Comm. Hr’g Tr.). Concerns were raised about losing industrial options on the remainder of the lot, and everyone agreed to re- zone only the portion of the Pilkington property needed for the school to M-3 and to keep the remainder of the lot at M-2 for future industrial use. Id. at 33-36. The Committee, which consisted of seven City Council members, voted unanimously to recommend the request proceed to a full vote by the City Council. Id. at 337 (Committee Vote). Per the Toledo City Charter, the re-zoning request was drafted into Ordinance 643-02 and placed on the City Council’s agenda for August 13, 2002. at 832-35 (Ordinance).
Prior to the meeting, two executives from Pilkington, John Keil and Randy Berg, had a lunch meeting with Robert McCloskey, who represented the city council district containing the Pilkington lot. McCloskey allegedly asked Pilkington to contribute $100,000 to a local community center to assist retirees from Pilkington (formerly Libby Owens Ford) with prescription drug issues. [1] The executives declined. The parties debate whether the request was perceived as a quid pro quo exchange for his vote, but there is no dispute that the request for money was at one point made. See Appellant Br. at 10-11; City Appellee Br. at 7; McCloskey Appellee Br. at 9. Meanwhile, during the re-zoning process, EJS began work on the site. EJS applied for and obtained an “early start building permit” to begin preliminary repairs on the building. EJS claims that it spent $200,000 on repairs and improvements during this time.
At the City Council meeting on August 13, 2002, council member Peter Gerken moved to table consideration of the matter for two weeks. EJS claims that prior to this meeting, McCloskey lobbied the other members to reverse their vote, and when he could not get enough to defeat the measure, McCloskey asked his “close friend” Peter Gerken to table the matter. Appellant Br. at 13. The defendants dispute these facts. J.A. at 745-47 (Gerken Dep.) (indicating desire to obtain information about an “industrial corridor”); id. at 844-45 (Toledo Blade Article) (same). Regardless of the reason, the matter was tabled to August 27, 2002.
The defendants concede that McCloskey then called Keil, Berg, and Erich Speckin, the owner of EJS, and left voicemails with each “seeking a monetary contribution to the retirees’ fund in connection with the pending re-zoning Ordinance.” McCloskey Appellee Br. at 9. In one call to Keil, McCloskey states:
I am still looking to receive a check for $100,000 to the East Toledo Family Center and I have decided that, no punch line or anything, uh, that I really do not wish to get involved with. We brought this up at our agenda review meeting. We have decided to do a first reading on this. Then it will be heard at the Economic Development Committee sometime in November. Uh, if you want to see the budget goes, if you don’t . . . hey that’s cool. We’ll allow it to die. Uh . . . please contact me. Thank you.
J.A. at 87 (voicemail transcription) (omissions in original). [2] In another to Keil, he states:
I have not heard anything from Mr. Berg or anybody else but, uh, as far as I’m concerned, uh, I will not move the project out of committee. I’ve talked to the majority of council members and they agree with me. And when I explain the whole situation, and uh, I’m sure that City Council, if there are any questions about it, that when they hear the testimony in committee from all the retirees at LOF and how they’ve been treated, I think there will be a majority, er, uh at least 100% of the Council will say “forget it.” So, you guys . . . need to do what you need to do.
J.A. at 89 (voicemail transcription) (omissions in original). The call to Speckin states:
This project is probably not going to happen. Pilkington & Libby Owens Ford are not coming to the table with anything to help. I have the votes on council to stop the project. I don’t wish to do this but Pilkington is not cooperating so, therefore, I would be very reluctant to put up any signs at this particular time and also you do need some kind of sign permit to put up signs. Talk to you later.
J.A. at 91 (voicemail transcription). On August 20, 2002, the City Council held its bi- weekly agenda review meeting, during which it reviewed the ordinance. Nine council members were present, including McCloskey. Robert Williams, an assistant chief operating officer for the City attended to relay Mayor Jack Ford’s position regarding the site. According to Williams, the Mayor indicated that he wanted the site to “remain zoned for industrial and commercial use,” but he did not state that he opposed the re- zoning. J.A. at 646-48 (Williams Dep.).
On August 22, 2002, Keil sent a letter to all members of the City Council and Mayor Ford seeking support for the request and adding that “[c]onsideration should also be given to unrelated issues that may exist between [Pilkington and McCloskey]. Such issues have the potential for exploitation to the detriment of the zoning request . . . .” J.A. at 96 (Keil Letter). At no point did Pilkington or EJS notify the police or other members of the City Council about McCloskey’s request for $100,000; however, at one point Keil informed someone at the Mayor’s office of the request.
On August 27, 2002, the City Council voted 7-4 against Ordinance 643-02 to re- zone the Pilkington parcel sought by EJS. Of the seven, four had changed their vote from Committee:
Against For Peter Ujvagi (Chair) - changed Betty Schultz - unchanged Robert McCloskey - changed Rob Ludeman - unchanged Tina Skeldon-Wozniak - changed George Sarantou - unchanged Wilma Brown - changed Gene Zmuda Wade Kapszulkiewicz Absent (not voting): Michael Ashford Louis Escobar Peter Gerken
Only Sarantou, who voted in favor of the ordinance, recalled being approached by McCloskey about the $100,000 request to Pilkington and that McCloskey indicated he “would like [Sarantou] to vote against this.” J.A. at 586-87 (Sarantou Dep.). The remaining testimony by the council members was a mix of deference to McCloskey as the representative for the region where the site would be located, general interest in an industrial corridor, and occasionally knowledge of the request, but the testimony was generally inconclusive as to what exactly each member knew at the time of the vote.
EJS did not appeal the re-zoning denial. [3] Two months later, the voters of Toledo passed a levy for the Toledo Public Schools (“TPS”) mandating the building of two new middle schools in the east side of Toledo. TPS initiated and by November 2003 had won an eminent domain lawsuit against Pilkington for the entire forty-three-acre site. TPS then applied to the Plan Commission to re-zone the lot from M-2 to R-3 to use the entire site as a campus. The Plan Commission approved, the City Council’s Zoning and Planning Committee approved, and the full City Council unanimously approved by vote on January 27, 2004. There is now a TPS middle school on the property.
EJS filed its complaint in May 2004 against the City and Robert McCloskey in his individual capacity. EJS raised five claims all stemming from the treatment of EJS’s zoning request: (1) deprivation of substantive due process; (2) deprivation of procedural due process; (3) deprivation of equal protection; (4) deprivation of its property rights in violation of 42 U.S.C. § 1983; and (5) wrongful interference with a business expectation in violation of state law. R. 1 (Compl.). [4] EJS was permitted to amend the complaint to add another claim under 42 U.S.C. § 1983 for impeding EJS’s First Amendment right to petition. R. 184 (11/30/07 Dist. Ct. Order).
Following various delays [5] and lengthy discovery, the defendants filed motions for summary judgment in early 2008. The district court granted summary judgment to the City and McCloskey on all of the federal constitutional claims. R. 336 (Dist. Ct. Order at 26). EJS’s procedural and substantive due-process claims failed as a matter of law because each required a property interest, and the district court held that EJS had none at stake. [6] EJS’s equal protection claim failed because EJS did not show that it was “similarly situated in all material respects” to TPS, the entity treated differently. And EJS’s right to petition claim failed because EJS’s right to petition the government was not impeded; how the government responded was irrelevant. After finding no underlying constitutional violations, the district court declined to address the defendants’ arguments relating to qualified or municipal immunity. Id. at 22. The district court also granted summary judgment to the City on EJS’s state-law claim of tortious interference in a business relationship on the basis of state-law immunity, which EJS does not appeal, but denied McCloskey summary judgment on that claim. at 23-25.
EJS then moved for reconsideration, which the district court denied. R. 352
(9/2/2010 Dist. Ct. Order). With only one claim remaining—EJS’s state-law claim
against McCloskey for tortious interference—the district court granted EJS’s unopposed
motion to certify the August 27, 2009, order as final under Federal Rule of Civil
Procedure 54(b) and stay the proceedings. R. 356 (10/13/2010 Dist. Ct. Order). EJS
filed its timely notice of appeal on November 9, 2010. After we dismissed the appeal
due to certain jurisdictional defects in the district court’s certification under Rule 54(b),
EJS Properties, LLC v. City of Toledo
, — F.3d —, No. 10-4471,
II. STANDARD OF REVIEW
We review de novo a district court’s grant of summary judgment.
Int’l Union v.
Cummins, Inc.
,
III. PROCEDURAL AND SUBSTANTIVE DUE-PROCESS CLAIMS
The Fourteenth Amendment of the United States Constitution protects
individuals from the deprivation “of life, liberty, or property, without due process of
law.” U.S. C ONST . amend. XIV, § 1. The clause has both a substantive and a procedural
component. Procedural due process is traditionally viewed as the requirement that the
government provide a “fair procedure” when depriving someone of life, liberty, or
property; substantive due process “protects individual liberty against certain government
actions regardless of the fairness of the procedures used to implement them.”
Collins
v. City of Harker Heights
,
To make out a claim for a violation of procedural due process, the plaintiff has
the burden of showing that “(1) he had a life, liberty, or property interest protected by
the Due Process Clause; (2) he was deprived of this protected interest; and (3) the state
did not afford him adequate procedural rights prior to depriving him of the property
interest.”
Women’s Med. Prof’l Corp. v. Baird
,
Based on these principles, the district court held that both substantive and procedural due-process claims require the deprivation of a liberty or property interest. Because the district court could identify no such interest, both of EJS’s due-process claims failed as a matter of law. EJS disputes that it lacked a liberty or property interest, and EJS also disputes that such an interest is required for certain kinds of substantive due-process claims.
A. Property Interest
Whether a person has a “property” interest is traditionally a question of state law.
Logan v. Zimmerman Brush Co.
,
EJS argues that it had property interests in (1) its “previously approved” re- zoning ordinance; (2) its contracts, including the land purchase contract with Pilkington and its lease agreement with Lake Erie Academy; and (3) its early-start building permit.
1. Expectation of Re-Zoning
“[A] party cannot possess a property interest in the receipt of a benefit when the
state’s decision to award or withhold the benefit is wholly discretionary.”
Med Corp.,
Inc. v. City of Lima
,
EJS attempts to avail itself of these principles by suggesting that the re-zoning
ordinance here was “previously approved.” Appellant Br. at 26. However, EJS
concedes that the City Council had never approved the ordinance, as is required; only
the Planning Commission and the Committee had approved it. Thus, to establish a
property interest in the re-zoning ordinance, EJS must demonstrate that the City Council
lacked “discretion to deny [EJS’s] use of the land [as a school] if [it] complied with
certain, minimum, mandatory requirements.”
Silver v. Franklin Twp., Bd. of Zoning
Appeals
,
Ohio law states that “the legislative authority of such municipal corporation
may
amend or change the . . . [zoning] regulations of or within any district.” Ohio Rev. Code
§ 713.10 (emphasis added). The Toledo Municipal Code also provides purely
discretionary authority with respect to these decisions: “Council
may
, after public notice
and hearings as provided in this section and after report by the City Plan Commission
. . . amend, supplement or change the text or District Map herein or subsequently
established.” Toledo Mun. Code § 1111.01(a), available at City Appellee Br. at 60. The
word “may” establishes “sufficient discretion to undercut any argument that the language
of the zoning regulations vested in [EJS] an entitlement to the [re-zoning ordinance]
once the [minimum requirements] were fulfilled.”
Triomphe Investors v. City of
Northwood
,
EJS does not dispute these provisions; rather, EJS argues that in practice, the
Toledo City Council’s approval of an ordinance was “pro forma” such that EJS had a
legitimate expectation of receiving approval. Alternatively, EJS argues that even if the
City Council had discretion, such discretion “must be exercised free of corruption and
illicit motives.” Appellant Br. at 27. We do not agree that a benefit ceases to be
discretionary depending on whether the discretion is exercised free of corruption. The
law is clear that a party cannot have a property interest in a discretionary benefit, even
if that discretion had never been exercised previously.
See Mich. Envtl. Res. Assocs.,
Inc. v. Cnty. of Macomb
, No. 87-2029,
2. Contracts
The right to contract is a property right under Ohio law.
Mertik v. Blalock
,
Consistent with many states, Ohio has held that the purchaser in an executory
contract for the sale of land, prior to conveyance, “has an equitable interest in the realty
equal to the amount of the purchase money paid. When full payment is made, the
vendee acquires a completed equity which may entitle him to a conveyance of the legal
title.”
Butcher v. Kagey Lumber Co.
,
The lease agreement is unusual because the validity of the contract itself depended on EJS’s ability to acquire title to the land it was attempting to lease. Although the lease agreement was not explicitly contingent upon obtaining re-zoning, EJS’s ownership of the property was an implied condition precedent to the validity of the lease because the contract could not be fulfilled without it. “[A] contract, fulfillment of which, by express or implied agreement , is made to depend on act or consent of third person, over whom neither party has any control, cannot be enforced, unless such act is performed or consent given, and reasons given for third person’s failure or refusal to act or give consent are immaterial , except for fault of promisor.” Kandel v. Gran , No. CA-5475, 1981 WL 6324, at *4 (Ohio Ct. App. June 17, 1981). Thus, the lease agreement conferred on EJS only the right to rent the property to Lake Erie Academy upon obtaining satisfactory title. The actions of the defendant in this case may have amounted to tortious interference under state law for wrongful defeat of the condition precedent, but the lease agreement did not create a constitutionally protected interest in having the implied condition fulfilled. A property owner cannot create an interest in discretionary re-zoning simply by conveying his land to another party contingent upon obtaining re-zoning.
EJS points to one of our prior opinions and argues it reaches the opposite
conclusion. In
G.M. Engineers and Associates, Inc. v. West Bloomfield Township
,
3. Early-start building permi t
The district court did not address the building permit in either its order on
summary judgment or on reconsideration. We agree with the defendants that EJS never
asserted the building permit as an independent property interest below. However, even
were we to consider the building permit, EJS’s claim still lacks merit. EJS likely has a
property interest in its early-start building permit,
see Chandler v. Vill. of Chagrin Falls
,
B. Liberty Interest
EJS argues that it has two liberty interests that were violated by the defendants: (1) a liberty interest in a government decision free from corruption; and (2) a liberty interest in the pursuit of business contracts without unlawful interference. The district court held that there was no independent liberty interest in corruption-free government action; corruption bears on whether an individual with a liberty or property interest received procedural due process. R. 352 (Dist. Ct. Order at 5-9). The district court dismissed the contract argument for the same reason it dismissed the argument that the contracts were property, holding the defendants did not interfere with EJS’s contracts because they were contingent on the discretionary zoning. Id. at 5 n.3. We address EJS’s right-to-contract argument first.
The right to contract is a long-recognized liberty interest. The “Fourteenth
Amendment liberty includes the right . . . to enter into all contracts which may be proper,
necessary and essential” to a citizen’s needs.
Washington v. Glucksberg
,
EJS’s first asserted liberty interest in the right to corruption-free government
action is more complicated. The right to liberty means “more than the absence of
physical restraint.”
Glucksberg
,
We have found no support for the proposition that a citizen has a fundamental
right or liberty interest in having the government make discretionary decisions free from
corruption independently from whether the citizen has a separate property or liberty
interest at stake. EJS relies almost exclusively on
Hammond v. Baldwin
,
C. “Shocks the Conscience” Claim
In a variation of its liberty-interest argument on corruption, EJS argues that corrupt zoning decisions that “shock the conscience” violate substantive due process regardless of whether a property or liberty interest is at stake. The district court held that even in such instances, the plaintiff must show as a predicate the deprivation of a liberty or property interest. R. 336 (Dist. Ct. Order at 16). [12]
There is ample support for the district court’s conclusion in our case law.
See
Braun
,
Other cases, however, discuss substantive due-process claims independently from
the identification of any liberty or property interest. In
Valot
, the plaintiffs conceded that
they were not deprived of a property right.
Valot v. S.E. Local School Dist. Bd. of Educ.
,
In
Pearson,
What these cases tell us is that substantive due process is not a rigid conception,
nor does it offer recourse for every wrongful action taken by the government.
“Substantive due process affords only those protections so rooted in the traditions and
conscience of our people as to be ranked as fundamental.”
Charles v. Baesler
, 910 F.2d
1349, 1353 (6th Cir. 1990) (internal quotation marks and citation omitted). We recently
clarified that although “plaintiff[s] must demonstrate a deprivation of a constitutionally
protected liberty or property interest in order to establish a due process violation based
on discretionary conduct of government officials, such a showing is not necessary to
establish that a state law is unconstitutional.”
Am. Express Travel Related Servs. Co. v.
Kentucky
, 641 F.3d 685, 688-89 (6th Cir. 2011) (citation omitted). We have also
distinguished between constitutionally protected interests and garden-variety interests.
“Most, if not all, state-created contract rights, while assuredly protected by procedural
due process, are not protected by substantive due process.”
Charles
,
Finally, we note that even if such an interest is not required, the behavior against
EJS in this case does not “shock the conscience.” Perhaps it is unfortunate that the
solicitation of a bribe by a public official does not shock our collective conscience the
way that pumping a detainee’s stomach does. But, although we can condemn
McCloskey for his misconduct, we simply cannot say that his behavior is so shocking
as to shake the foundations of this country. “While appellees’ alleged conduct was
reprehensible, it was not that type of conduct which so ‘shocks the conscience’ that it
violates appellant’s substantive due process rights. A citizen does not suffer a
constitutional deprivation every time he is subject to the petty harassment of a state
agent.”
Vasquez
,
IV. RIGHT TO PETITION CLAIM
The First Amendment protects “the right of the people . . . to petition the
Government for a redress of grievances.” U.S. C ONST . amend. I. This right “extends to
all departments of the Government.”
Cal. Motor Transp. Co. v. Trucking Unlimited
, 404
U.S. 508, 510 (1972). However, “[n]othing in the First Amendment or in this Court’s
case law interpreting it suggests that the rights to speak, associate, and petition require
government policymakers to listen or respond to individuals’ communications on public
issues.”
Minn. State Bd. for Cmty. Colls. v. Knight
,
“The threshold question in a right-to-petition case . . . is . . . whether the
plaintiff’s conduct deserves constitutional protection.”
Holzemer v. City of Memphis
,
The district court focused on traditional First Amendment doctrine from the
right-to-speech cases and held that EJS must show that the defendants’ actions “might
have chilled” EJS’s right to petition. This is consistent with our general instruction that
right-to-petition claims are viewed in kind with right-to-speech claims,
Campbell
, 509
F.3d at 789, and is consistent with how other circuits approach right-to-petition claims,
see, e.g.
,
O’Keefe v. Van Boening
,
EJS does not argue that its rights were “chilled” in the traditional sense; rather,
EJS argues that its right to
meaningful
access was infringed by the defendants’ actions.
The right to meaningful access to the courts is also protected by the Petition Clause,
among other provisions.
John L. v. Adams
,
We therefore do not focus only on the narrow question of whether EJS
established that the defendants’ actions “might have chilled” EJS’s right to petition. R.
336 (Dist. Ct. Order at 22). However, in all of the cases addressing meaningful access,
the focus is on the
access
to the court, not the court’s response or behavior upon
receiving the petition.
See John L.
,
Access is generally defined as “[a]n opportunity or ability to enter, approach,
pass to and from, or communicate with.” B LACK ’ S L AW D ICTIONARY (9th ed. 2009).
Process is traditionally a Fifth and Fourteenth Amendment consideration, which as
discussed above, requires the deprivation of a property interest before rising to the level
of a constitutional violation. This distinction is consistent with the Supreme Court
jurisprudence establishing that the right to petition does not “require government
policymakers to listen or respond.”
Minn. State Bd.
,
V. EQUAL-PROTECTION CLAIM
The Equal Protection Clause of the Constitution provides that “[n]o State shall
. . . deny to any person within its jurisdiction the equal protection of the laws.” U.S.
C ONST . amend. XIV, § 1. The clause is “essentially a direction that all persons similarly
situated should be treated alike.”
City of Cleburne v. Cleburne Living Ctr.
, 473 U.S.
432, 439 (1985). The parties agree with the district court that rational-basis review is
appropriate here because there are “no suspect classifications or fundamental rights” at
issue. R. 336 (Dist. Ct. Order at 19). A “class of one” may bring an equal-protection
claim, “where the plaintiff alleges that the state treated the plaintiff differently from
others similarly situated and that there is no rational basis for such difference in
treatment.”
Warren v. City of Athens
,
To prevail, EJS must show that (1) the government treated EJS differently from
a similarly situated party, and (2) the government had no rational basis to do so.
Id.
When evaluating whether parties are similarly situated, “courts should not demand exact
correlation, but should instead seek relevant similarity.”
Perry v. McGinnis
, 209 F.3d
597, 601 (6th Cir. 2000). Regarding rational basis, a plaintiff can establish the lack of
a rational basis if it either (1) “negat[es] every conceivable basis which might support
the government action or [(2)] demonstrat[es] that the challenged government action was
motivated by animus or ill-will.”
Warren
,
Starting with the issue of a rational basis for the government’s actions, the district court presented several conceivable bases for supporting the decision to grant a license to TPS but not EJS. Unlike EJS, TPS owned the relevant property when it applied for re-zoning. R. 336 (Dist. Ct. Order at 20). As a result, the piece of land was “lost to the City for future industrial purposes” and “the City had no practical alternative to granting the necessary rezoning to enable its use for educational purposes.” Id. Another difference was that TPS “intended to use the entire site,” whereas EJS had plans to split the lot, and TPS’s plan to build a large public school would be more financially stable than a potential charter school. [16] These are all rational bases for treating TPS differently. The district court therefore correctly held that EJS failed to “negate every conceivable basis supporting the City Council’s action.” Id. EJS is correct that its failure to negate every conceivable basis for the government’s action does not defeat an equal-protection claim if EJS can demonstrate animus or ill-will. We need not reach that issue, however, because the district court also correctly held that EJS and TPS were not similarly situated, the first element of an equal-protection claim. [17]
The district court relied on these same differences to find that TPS and EJS were
not similarly situated.
Id.
The first element of a class of one equal-protection claim is
that the two applicants who were treated differently were “similarly situated in all
relevant respects.”
TriHealth, Inc. v. Bd. of Commissioners
,
EJS claims the differences are immaterial, but materiality “cannot be evaluated
in a vacuum.”
TriHealth
, 430 F.3d at 790. Whether these differences are material
depends on whether disparate treatment would be justified based on these
attributes—i.e., would the city have a rational reason for voting differently due to these
traits. And as already discussed, the city had a rational basis for treating the more
stable proposal of TPS to use the entire lot differently from the riskier proposal of EJS
to use only a portion of the lot. Gaps in time and context may suggest a change in policy
rather than differential treatment.
Taylor Acquisitions
, 313 F. App’x at 836 (citing
Cordi-Allen v. Conlon
,
VI. CONCLUSION
For the aforementioned reasons, we AFFIRM the district court’s decision granting summary judgment to the defendants on all of EJS’s constitutional claims.
Notes
[*] The Honorable Arthur L. Alarcón, Senior Judge for the United States Court of Appeals for the Ninth Circuit, sitting by designation.
[1] McCloskey was a former Pilkington/Libby Owens Ford union negotiator who had helped negotiate a labor agreement that capped healthcare benefits for retirees. Upon being elected to City Council, he apparently faced significant criticism for his part in the union agreement.
[2] Keil asked his secretary to transcribe the contents of the voicemails. J.A. at 517 (Keil Dep.). The accuracy of the transcriptions and the identity of the speaker are not contested.
[3] Instead, EJS entered into a purchase agreement in January 2003 with Pilkington to acquire the entire forty-three-acre lot. Speckin explained that EJS pursued the purchase after the re-zoning denial due to potential interest in having other parts of the lot leased. J.A. at 809-10 (Speckin Dep.). When Speckin started experiencing health problems and did not feel capable of “running down the lease,” he backed out of the agreement. at 810. Pilkington did not pursue legal action. Id. at 811.
[4] Somewhat confusingly, the plaintiff’s first three claims were all brought under the Constitution generally and only the fourth claim raises a violation under 42 U.S.C. § 1983. The district court treated all of the constitutional claims as § 1983 claims and did not treat the fourth claim separately, focusing on the alleged deprivation to property as part of the substantive and procedural due-process claims. See R. 336 (Dist. Ct. Order). The plaintiff has not objected to this characterization of his claims.
[5] In early 2006 McCloskey was indicted on federal criminal corruption charges and the district court stayed the proceedings pending the outcome of that case. R. 112 (3/13/2006 Dist. Ct. Order). McCloskey pleaded guilty and was sentenced to twenty-seven months in prison. He was released in July 2008. The civil case was re-opened in January 2007 and motions re-filed anew. The facts of the criminal case, however, appear distinct from the present facts.
[6] The district court suggested at oral argument that it would allow the procedural due-process claim, but granted summary judgment upon realizing that it “had overlooked the predicate requirement” of a property interest on that claim as well. R. 336 (Dist. Ct. Order at 18 n.5).
[7]
The defendants do not argue that EJS’s failure to appeal the City Council’s zoning decision
should defeat its claim under
Parratt v. Taylor
,
[8] Nor does EJS allege injury to its claim for discretionary benefits. Indeed, EJS fully controlled the contents of its application, which was accurately and fully presented to the City Council, even if it alleges improper consideration by the individual council members.
[9] We ultimately did not decide whether the plaintiffs in G.M. Engineers had a property interest for their due-process claim because we held that if approval was not discretionary, the plaintiff was functionally arguing that the board acted illegally under state law, and plaintiffs had failed to demonstrate the state’s corrective procedures were inadequate as required under Parratt . See G.M. Eng’rs , 922 F.2d at 332.
[10]
EJS relies only on
Wilson v. Trustees Union Township
, No. CA-98-06-036,
[11]
EJS also cites
Wilkerson v. Johnson
,
[12]
The district court also held that EJS’s “shocks the conscience” argument was equally unavailing
because that standard “applies to executive, not legislative action.” R. 336 (Dist. Ct. Order at 16). We
have found no support for this statement, and it is not necessary to decide whether the zoning action in this
case should be categorized as legislative or administrative because under either standard EJS’s claims fail.
See Pearson
,
[13] The defendants do not argue that a request for re-zoning is not a petition to the government for redress; rather, they argue that EJS’s rights were not violated by their acts. See McCloskey Br. at 47 (acknowledging right to petition for zoning changes); City Br. at 36.
[14]
The only case offered by EJS,
Hampton Bays Connections, Inc. v. Duffy
,
[15]
The Supreme Court recently held that class-of-one equal-protection claims cannot be raised in
the public-employment context,
Engquist v. Or. Dep’t of Agric.
,
[16]
These reasons are not merely speculative either, because they were specifically discussed at
the Plan Commission hearing after one member raised the concern about treating the TPS proposal equally
to the charter school proposal. J.A. at 161-63 (Comm’n Hr. Tr.). Regardless, the decision “may be based
on rational speculation unsupported by evidence or empirical data.”
TriHealth, Inc. v. Bd. of
Commissioners
,
[17] It is therefore of no consequence that the district court did not address the ill-will argument.
[18] The composition of the City Council had changed somewhat by the time of TPS’s application, but not significantly.
