Golf Village North LLC and Triangle Properties, Inc. (together, "Plaintiffs" or "Golf Village") move for a temporary restraining order ("TRO"), preliminary injunction, and permanent injunction against Defendants the City of Powell, Ohio (the "City"), David Betz in his official capacity as the City's Director of Development (the "Zoning Administrator"), and their agents (together, "Defendants"). Mot., ECF No. 2 ("Motion"). For the following reasons, Plaintiffs' Motion is GRANTED IN PART and DENIED IN PART . Specifically, the Court GRANTS Plaintiffs' request for a preliminary injunction, DENIES AS MOOT Plaintiffs' request for a TRO, and DENIES Plaintiffs' request for a permanent injunction.
I. FACTS
A. Background
In the late 1990s, Plaintiffs acquired more than 900 acres of property in Delaware County to develop a planned community known as the Golf Village Community. Plaintiffs seek to develop a residential hotel on a parcel of that property known as Subarea G (the "Hotel Property").
In 2004, Golf Village prepared a plat (the "Final Plat") for the Hotel Property, which the City approved in September 2004. Ver. Compl. ¶ 29, ECF No. 1. The Final Plat indicates that Lot 3155, a parcel located adjacent to the Hotel Property's east side, would be dedicated to the City for use as a public park. Id. at ¶ 30; Ex. C, ECF No. 1-3. The Final Plat also identifies two private roads-Sheridan and Moreland Streets-that provide ingress and egress from Seldom Seen Road and Sawmill Parkway to the privately-owned lots within the Golf Village Community, including the Hotel Property. Ver. Compl. ¶ 31; ECF No. 1. The eastern side of Sheridan Street as well as the northern and western sides of Moreland Street were constructed on the Hotel Property. Id. at ¶ 38-39.
In May 2010, Golf Village transferred Lot 3155 to the City through a Limited Warranty Deed. Id. at ¶ 40. It is undisputed, however, that Golf Village did not then, nor has it ever, granted Defendants an access easement over the Hotel Property or Sheridan and Moreland Streets for Defendants
On June 22, 2017, Defendant Betz, the City's Zoning Administrator, contacted Golf Village on behalf of the City to request an ingress/egress easement from Seldom Seen Road over Sheridan Street and the Hotel Property to create an entrance to the Park Property. Ver. Compl. at ¶ 44, ECF No. 1. Golf Village did not grant the request. Id. at ¶ 45.
The City revised and finalized its construction plans for the Park ("Construction Plans") in early 2018. The Title Sheet of the Construction Plans states the following in bold, capitalized font: "Approval of these plans is contingent upon the City securing an access easement to the park from Seldom Seen Road along Sheridan Street from the property owner." Ex. A at 1, ECF No. 1-1. The Title Sheet was executed by Defendants on February 9, 2018. Id. It is undisputed that the City approved the Construction Plans without securing an access easement from Golf Village to use the Hotel Property or to use Sheridan and Moreland Streets. Tr. 5, 9, ECF No. 25.
On March 14, 2018, despite not having secured an easement, the City informed its contractor that the City had "made arrangements" to use Golf Village's Hotel Property and Sheridan Street. Ver. Compl. ¶ 48, ECF No. 1; Ex. H, ECF No. 1-8. Shortly thereafter, in April 2018, the City and/or its agents destroyed the curb along the east side of Sheridan Street, built a construction entrance, and began using a portion of Golf Village's Hotel Property to access the Park Property. Ver. Compl. ¶ 52, ECF No. 1. Plaintiffs allege that this was done with no advance notice to Golf Village and without authorization.
Plaintiffs allege that the City will continue to enter and use Golf Village's Property if not enjoined. They further insist that the Construction Plans establish that, if not enjoined, the City will also: (1) construct a permanent entrance to the Park over Golf Village's Hotel Property, (2) clear trees and vegetation and fill certain wetlands on the Hotel Property, (3) dig a trench across Golf Village's Hotel Property and through Sheridan Street, and (4) convert Sheridan and Moreland Streets from private roads to public streets. Id. at ¶ 55-60.
On April 19, 2018, Golf Village contacted the City and requested that Defendants cease and desist their activities on Golf Village's Hotel Property. See Miller Deck, Exhibit A ¶ 3, ECF No. 2-1. The City responded, insisting that verbal representations and preliminary planning documents grant authorization allowing entry onto Plaintiffs' Property without an access easement. Id. at ¶ 4. Plaintiffs then filed this action seeking injunctive relief on April 23, 2018.
On May 2, 2018, this Court held an initial hearing on Plaintiffs' request for a TRO. Following the hearing, the parties agreed to a consent injunction order to be put in place for sixty days. Order, ECF No. 20; Order, ECF No. 22. Following a telephone status conference held before this Court on July 5, 2018, the parties agreed to extend the consent injunction for an additional thirty days. Order, ECF No. 27. On July 31, 2018, the parties filed a joint status report indicating, at bottom, that the parties have not and will not be able to resolve this dispute. ECF No. 28. Therefore, the Court will proceed to resolve
II. STANDARD OF REVIEW
The Court considers four factors when determining whether to grant a request for a preliminary injunction: (1) whether the movant has established a substantial probability of success on the merits; (2) whether the movant would suffer irreparable harm in the absence of an injunction; (3) whether an injunction would substantially harm third parties; and (4) whether an injunction would serve the public interest. Winnett v. Caterpillar, Inc. ,
Even so, "a district court is not required to make specific findings concerning each of the four factors ... if fewer factors are dispositive of the issue." Jones v. City of Monroe ,
Similarly, before the Court may issue a permanent injunction, a plaintiff must demonstrate the following:
(1) that it has suffered an irreparable injury; (2) that remedies available at law, such as monetary damages, are inadequate to compensate for that injury; (3) that, considering the balance of hardships between the plaintiff and defendant, a remedy in equity is warranted; and (4) that the public interest would not be disserved by a permanent injunction.
eBay Inc. v. MercExchange, L.L.C. ,
The decision whether to grant injunctive relief falls within the sound discretion of the district court. Friendship Materials, Inc. v. Mich. Brick, Inc. ,
III. ANALYSIS
A. Preliminary Injunction
1. Substantial Likelihood of Success on the Merits
Plaintiffs move for injunctive relief on three bases. They claim: (1) Defendants' use and destruction of the Hotel Property and Sheridan and Moreland Streets violates Golf Village's right against the unreasonable seizure of private property under the Fourth Amendment; (2) Defendants interfered with Golf Village's private property without providing Golf Village notice and an opportunity to be heard, violating Plaintiffs' right to procedural due process under the Fifth and Fourteenth Amendments; and (3) Defendants' entry onto Golf Village's private property without authorization constitutes trespass as a matter of law. Mot. 10-13, ECF No. 2. The Court will address the likelihood of success of each claim seriatim.
a. Plaintiffs' Fourth Amendment Claim
The Fourth Amendment, made applicable to the states by the Fourteenth Amendment, Ker v. California ,
The Fourth Amendment's protections can extend to real property, see United States v. James Daniel Good Real Property ,
Plaintiffs rely on two cases in an attempt to show that the Fourth Amendment's protections extend to their Property: the Sixth Circuit's decision in Bond v. Cox and the Fourth Circuit's decision in Presley v. City of Charlottesville . However, both cases are inapposite.
In Bonds , a property owner brought an action under
Likewise, Presley involved the plaintiff's home and surrounding curtilage, and is therefore distinguishable. There, plaintiff lived on a parcel that encompassed less than an acre of land along the river.
In reversing the district court's dismissal, the Fourth Circuit held that the plaintiff had stated a valid Fourth Amendment claim.
By contrast, Plaintiffs have not identified a single case extending the Fourth Amendment's protections to the kind of property at issue in this matter: undeveloped, commercial property. Indeed, the case law indicates that such an extension may not exist. Cf.
Given this, the Court finds that Plaintiffs' Fourth Amendment claim is not likely to succeed on the merits.
b. Plaintiffs' Procedural Due Process Claim
In general, to establish a procedural due process violation under
A plaintiff may prevail on a procedural due process claim if it: (1) demonstrates that it was deprived of a liberty or property interest as a result of an "established state procedure" which itself violates procedural due process rights; or (2) establishes that it was deprived of a liberty or property interest "pursuant to a random and unauthorized act" and available state remedies would not adequately compensate it for the loss that it suffered. See Wedgewood Ltd. P'ship I v. Twp. of Liberty, Ohio ,
Plaintiffs argue that they were deprived of their liberty and property interests pursuant to a random and unauthorized act and that any post-deprivation state law remedies are inadequate. Specifically, Plaintiffs assert that Defendants "randomly" took possession of their Hotel Property and are using their private roads (Sheridan and Moreland Streets) without any process or legal authority to do so. Mot. 12, ECF No. 2. In their Reply, Plaintiffs also contend, without elaboration, that state law remedies are inadequate because they would be unable to "restore Sheridan and Moreland Streets and the Hotel Property to their pre-deprivation condition." Reply 7, ECF No. 17. Defendants, on the other hand, insist that the parties had "long agreed" that access to the Park Property would be from Sheridan and Moreland Streets, and that either a state trespass action or an inverse condemnation action could adequately compensate plaintiffs for any loss suffered. Def. Resp. 12, ECF No. 16.
Here, Plaintiffs' Verified Complaint is devoid of any allegations regarding the adequacy of state remedies to redress Defendants' alleged wrongs. In fact, Plaintiffs' first discussion of state remedies at all is in their Reply brief. See Reply 7, ECF No. 17. The absence of such allegations is fatal to their procedural due process claim. See, e.g., Jefferson v. Jefferson Cty. Pub. Sch. Sys. ,
Therefore, because Plaintiffs have not sufficiently pled that available state remedies are inadequate, the Court finds that they have not shown a substantial likelihood of success on the merits for their due process claim.
c. Plaintiffs' Trespass Claim
Plaintiffs' remaining basis for injunctive relief is a state law claim of trespass. Under Ohio law, trespass is " 'the unlawful entry upon the property of another.' " Davis v. Widrnan ,
Here, Defendants do not dispute that they entered onto land in Plaintiffs' possession. See generally Def. Resp., ECF No. 16; see also Tr. 5, 9, ECF No. 25. The question, then, in determining whether Plaintiffs have a substantial likelihood of success on the merits is whether or not Defendants' entry was "an unauthorized intentional act." Brown ,
Defendants argue that Plaintiffs' trespass claim is not likely to succeed because the City "was and still is" authorized by Golf Village to use the Hotel Property and Sheridan Street. Def. Resp. 13, ECF No. 16. More specifically, Defendants assert that the parties previously agreed that Defendants' access to the Park Property would be "off Sheridan and Moreland Streets" but that "there was a mutual mistake in the platting and conveying process such that access was not expressly included."
At the May 2, 2018, hearing before this Court, and in their briefing, Defendants admitted that neither the Limited Warranty Deed nor the Final Plat grant them access to the Park Property via Sheridan and Moreland Streets or the Hotel Property. Tr. 5, 9, ECF No. 25; Def. Resp. 9, ECF No. 16. In addition, long before the hearing, Defendant Betz recognized that an access easement was necessary in June 2017. Ex. G, ECF No. 1-7. Moreover, as late as February 9, 2018, on the Title Sheet of the Construction Plans, Defendants acknowledged the need for an easement from Plaintiffs before they could use Sheridan Street to access the Park Property. Ex. A, ECF No. 1-1. In short, there is a strong likelihood that Defendants are and were aware that they were not authorized to enter or use Plaintiffs' Hotel Property or their private roads.
Even so, Defendants assert that the parties intended to authorize their use of the
A mutual mistake, even if one could be demonstrated, does not amount to consent or authorization to enter or use the property of another. To the contrary, the proper mechanism to rectify a mutual mistake under Ohio contract law is to seek rescission or reformation of the contract. See, e.g., Reilley v. Richards ,
In light of these facts, the Court finds that Plaintiffs have a substantial likelihood of success on the merits of their trespass claim under Ohio law.
2. Irreparable Harm
In general, "[p]laintiff's harm from the denial of a preliminary injunction is irreparable if it is not fully compensable by monetary damages." Overstreet v. Lexington-Fayette Urban Cty. Gov't ,
Plaintiffs are correct that courts have held "that a plaintiff can demonstrate that a denial of an injunction will cause irreparable harm if the claim is based upon a violation of the plaintiff's constitutional rights." Overstreet ,
As an alternative, Plaintiffs argue that "the deprivation of an interest in real property constitutes irreparable harm." Mot. 15, ECF No. 2 (quoting Third Church of Christ, Scientist, of New York City v. City of New York ,
Outside of this Circuit, a number of courts reviewing this issue have found that a continuing trespass or occupation of real property can, in and of itself, constitute irreparable harm, but the law is not uniform. Compare United States v. Wilson , No. 3:09-CV-166-ECR-RAM,
Here, Plaintiffs allege that Defendants' use of their private roads and the Hotel Property will continue to escalate if not enjoined. They point to Defendants' Construction Plans to demonstrate that Defendants intend to: (1) construct a permanent entrance to the Park over Golf Village's Hotel Property; (2) clear trees and vegetation and fill certain wetlands on the Hotel Property; (3) dig a trench across Golf Village's Hotel Property and through Sheridan Street; and (4) convert Sheridan and Moreland Streets from private roads to public streets. Id. at ¶ 55-60. In light of the continuing and permanent nature of Defendants' planned use of Plaintiffs' property, and the unique nature of real property, the Court finds that the facts and equities here warrant finding that Plaintiffs' have demonstrated irreparable harm from Defendants' use and possession of their property.
3. Harm to Third Parties
The Court finds that the issuance of an injunction will not cause harm to third parties. Defendants argue that the City, its contractors, and its citizens will be harmed by the delay to construction of the park and increased construction costs. However, Defendants have admitted that alternative access to the Park Property exists. Further, there are other mechanisms that would allow Defendants to legally access Plaintiffs' property, which Defendants have also admitted, such as
4. Public Interest
The final question is whether the public interest would be served by issuing the injunction. Plaintiffs' arguments focus on the public's interest in preventing violations of constitutional rights. Such an argument is unavailing here since Plaintiffs have not demonstrated a substantial likelihood of success on either of their constitutional claims.
Even if Plaintiffs had argued, for example, that an injunction would serve the public interest in allowing private companies to protect their private property from trespass, at least one court in this district has found that such an interest is private, not public. See Easterling v. Cassano's Inc. , No. 3:15-CV-032,
5. Conclusion on Plaintiffs' Request for a Preliminary Injunction
For the reasons stated above, the Court finds that the equities weigh in favor of granting Plaintiffs' request for a preliminary injunction.
B. Permanent Injunction
In addition to requesting a TRO and preliminary injunction, Plaintiffs also request a permanent injunction against Defendants. However, Plaintiffs have not shown "actual success" on the merits for any of their claims, nor could they do so at this stage of the proceedings. Such a showing is necessary to be entitled to permanent injunctive relief. See, e.g., Amoco Prod. Co. ,
IV. CONCLUSION
For the foregoing reasons, Plaintiffs' Motion, ECF No. 2, is GRANTED IN PART and DENIED IN PART . Defendants are hereby preliminarily enjoined from further use, occupation, or possession of Plaintiffs' Hotel Property and Sheridan and Moreland Streets until such time as this matter is resolved on the merits, Defendants provide the Court with grounds for relief from this Order, or a permanent injunction is granted.
IT IS SO ORDERED.
Notes
Given the procedural history of the case, the Court finds that Plaintiffs' request for a TRO is moot, and thus the request is denied.
The Court also notes that courts have found inverse condemnation proceedings to be an adequate state remedy in similar cases under Ohio law. See, e.g., Harris v. City of Akron ,
