New Page at 63 Main, LLC v. Incorporated Village of Sag Harbor

16-1078 New Page at 63 Main, LLC et al. v. Inc. Vill. of Sag Harbor et al. UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT SUMMARY ORDER RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN ELECTRONIC DATABASE (WITH THE NOTATION ‘SUMMARY ORDER’). A PARTY CITING A SUMMARY ORDER MUST SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL. 1 At a stated term of the United States Court of Appeals for 2 the Second Circuit, held at the Thurgood Marshall United States 3 Courthouse, 40 Foley Square, in the City of New York, on the 4 22nd day of December, two thousand sixteen. 5 6 PRESENT: DENNIS JACOBS, 7 JOSÉ A. CABRANES, 8 BARRINGTON D. PARKER, JR., 9 Circuit Judges. 10 11 - - - - - - - - - - - - - - - - - - - -X 12 13 NEW PAGE AT 63 MAIN, LLC, 63 MAIN LLC, 14 Plaintiffs-Appellants, 15 16 -v.- 16-1078 17 18 INCORPORATED VILLAGE OF SAG HARBOR, 19 BRIAN GILBRIDE, TIMOTHY PLATT, 20 Defendants-Appellees. 21 22 - - - - - - - - - - - - - - - - - - - -X 23 24 FOR APPELLANTS: Lawrence Ellis Kelly, Bayport, NY. 25 26 FOR APPELLEES: Anne C. Leahey, Devitt Spellman 27 Barrett, LLP, Smithtown, NY. 1 1 2 Appeal from a final order of the United States District Court 3 for the Eastern District of New York (Spatt, J.). 4 5 UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED AND 6 DECREED that the judgment of the district court be AFFIRMED. 7 8 New Page at 63 Main LLC and 63 Main LLC appeal from the final 9 order of the United States District Court for the Eastern 10 District of New York (Spatt, J.) dismissing all of their claims 11 against the Incorporated Village of Sag Harbor (“the Village”), 12 its mayor Brian Gilbride, and inspector Timothy Platt pursuant 13 to Rule 12(b)(6) of the Federal Rules of Civil Procedure. We 14 assume the parties’ familiarity with the underlying facts, the 15 procedural history, and the issues presented for review. 16 This case arises from disputes over the “occupancy load” 17 (apparently, the maximum seating capacity) of a restaurant 18 operated by plaintiffs, and from the defendants’ suspension of 19 a license agreement that permitted the restaurant to use outdoor 20 dining space. Plaintiffs’ action in state court, pursuant to 21 Article 78 of the New York Civil Practice Law and Rules, was 22 dismissed in August 2015. Plaintiffs then brought this action 23 pleading constitutional claims pursuant to 42 U.S.C. § 1983. 24 They contend that defendants’ revocation of plaintiffs’ license 25 for outdoor dining (or actions related thereto) constituted (1) 26 First Amendment retaliation, (2) a bill of attainder in violation 27 of Article I, § 10 of the U.S. Constitution, (3) a Fourteenth 28 Amendment Due Process violation, and (4) a Fourteenth Amendment 29 Equal Protection violation; and, additionally, that (5) Gilbride 30 and Platt entered plaintiffs’ property without consent in 31 violation of the Fourth Amendment. 32 We review de novo the district court’s dismissal of a 33 complaint pursuant to Rule 12(b)(6), accepting all factual 34 allegations in the complaint as true and drawing all reasonable 35 inferences in the plaintiff’s favor. Chambers v. Time Warner, 36 Inc., 282 F.3d 147, 152 (2d Cir. 2002). 37 1. Plaintiffs allege (with scarce details as to time or 38 circumstance) that they engaged in protected speech critical 39 of the Village’s slow processing of building permits and that 2 1 defendants retaliated by revoking their outdoor-dining license, 2 causing them monetary damages. 3 In order to state a § 1983 claim for First Amendment 4 retaliation, a plaintiff must plead facts sufficient to show 5 that “(1) he has a right protected by the First Amendment; (2) 6 the defendant’s actions were motivated or substantially caused 7 by his exercise of that right; and (3) the defendant’s actions 8 caused him some injury.” Dorsett v. County of Nassau, 732 F.3d 9 157, 160 (2d Cir. 2013). 10 Setting aside whether plaintiffs have satisfied the first 11 and third requirements of a retaliation claim by sufficiently 12 alleging protected speech and damages, they clearly failed to 13 plead facts to show that defendants’ actions “were motivated 14 or substantially caused” by plaintiffs’ protected speech. The 15 complaint alleges that Platt and Gilbride on separate occasions 16 each made a single negative comment directed toward the 17 plaintiffs, and evidently motivated by plaintiffs’ failure (in 18 Platt and Gilbride’s view) to abide by maximum occupancy limits. 19 Irrespective of the merits of the dispute over occupancy, neither 20 comment, as alleged, pertains to public criticisms (or other 21 protected speech) or implies retaliation for them, nor do 22 plaintiffs plead any other facts to support such an inference. 23 Accordingly, we agree with the district court that the First 24 Amendment retaliation claim must be dismissed. 25 2. Plaintiffs allege that “the Board of Trustees of the 26 [Village] publicly passed a resolution revoking the license 27 agreement between the [Village] and plaintiffs for dining in 28 the front space at” the restaurant. Compl. ¶ 106, J.A. 26. This 29 “resolution” is alleged to be a bill of attainder, prohibited 30 by Article I, Section 10 of the U.S. Constitution. 31 “[T]he Bill of Attainder Clause prohibits any ‘law that 32 legislatively determines guilt and inflicts punishment upon an 33 identifiable individual without provision of the protections 34 of a judicial trial.’” ACORN v. United States, 618 F.3d 125, 35 135-36 (2d Cir. 2010) (quoting Selective Serv. Sys. v. Minn. 36 Pub. Interest Research Grp., 468 U.S. 841, 846-47 (1984)). 37 The allegations in the complaint, accepted as true, do not 38 establish that the “resolution” revoking the outdoor-dining 3 1 “license agreement” constitutes a law or a legislative 2 determination of anything within the contemplation of Article 3 I, Section 10. Plaintiffs do not sufficiently plead (or 4 persuasively argue) that the Village Board of Trustees is a 5 legislature or that the resolution is more than a decision to 6 revoke or suspend an agreement by a party to that agreement. 7 Even if we assume that the Board of Trustees is a legislative 8 body and that the resolution was a bill within the meaning of 9 Article I, the revocation of the outdoor-dining license does 10 not “fall[] within the historical meaning of legislative 11 punishment.” ACORN, 618 F.3d at 136. The complaint therefore 12 does not plausibly plead a violation of the Bill of Attainder 13 Clause. 14 3. Plaintiffs appear to allege violations of their 15 substantive due process rights, and they argue on appeal that 16 the district court wrongly dismissed their substantive due 17 process claims. The nature of those alleged violations is 18 unclear. Plaintiffs aver that defendants “are involved in 19 criminal conduct, seizing and destroying relevant and material 20 records while under a mandatory state duty on records creation 21 and retention,” and that the revocation of plaintiffs’ 22 outdoor-dining license was “predicated on these illegal and 23 criminal acts.” Appellant Br. 23. But these conclusory 24 assertions are not supported by well-pleaded facts. “[T]he 25 threshold question” in a § 1983 substantive due process claim 26 “is whether the behavior of the governmental officer is so 27 egregious, so outrageous, that it may fairly be said to shock 28 the contemporary conscience.” County of Sacramento v. Lewis, 29 523 U.S. 833, 847 n.8 (1998). The plaintiffs do not plead 30 sufficiently specific facts to establish any conduct approaching 31 that high bar. 32 Nor is it plausibly alleged that defendants violated 33 plaintiffs’ procedural due process rights. In order for a 34 procedural due process claim to survive dismissal under Rule 35 12(b)(6), “a plaintiff must plead facts sufficient to give rise 36 to a claim that he was deprived of his property without 37 constitutionally adequate pre- or post-deprivation process.” 38 Ahlers v. Rabinowitz, 684 F.3d 53, 62 (2d Cir. 2012) (quotation 39 marks omitted). The only “property” deprivation that 40 plaintiffs allege is the license to serve customers on the 4 1 sidewalk in front of their restaurant. But to claim a protected 2 property interest in that license, plaintiffs must “have a 3 legitimate claim of entitlement to it”; that is, they “clearly 4 must have more than an abstract need or desire and more than 5 a unilateral expectation of it.” Town of Castle Rock v. 6 Gonzales, 545 U.S. 748, 756 (2005) (quotation marks omitted). 7 The Code of the Village of Sag Harbor provides for the 8 issuance of outdoor-dining licenses by the Board of Trustees. 9 See Village Code § 300-11.17(D)(1). Plaintiffs assert that the 10 Village “does not have unfettered discretion” in the regulation 11 of sidewalk dining. Appellant Br. 24. However, they have 12 identified no specific limitations on its discretion, nor have 13 they presented any persuasive argument that some such limitation 14 was violated. Plaintiffs therefore failed to plausibly allege 15 a legitimate claim of entitlement. Moreover, even if they were 16 entitled to an outdoor-dining license, they initiated an Article 17 78 proceeding challenging the revocation, and they present no 18 persuasive argument that this proceeding was insufficient 19 post-deprivation process to satisfy the Fourteenth Amendment. 20 The procedural due process claim therefore must be dismissed. 21 4. Plaintiffs contend that they were singled out for 22 differential treatment for which there is no rational basis, 23 in violation of the Equal Protection Clause of the Fourteenth 24 Amendment. In order to succeed on that claim, plaintiffs must 25 establish that “(i) no rational person could regard the 26 circumstances of the plaintiff[s] to differ from those of a 27 comparator to a degree that would justify the differential 28 treatment on the basis of a legitimate government policy; and 29 (ii) the similarity in circumstances and difference in treatment 30 are sufficient to exclude the possibility that the defendants 31 acted on the basis of a mistake.” Ruston v. Town Bd. for Town 32 of Skaneateles, 610 F.3d 55, 60 (2d Cir. 2010) (quotation marks 33 omitted). 34 Plaintiffs vaguely refer to other restaurants with outdoor 35 seating, but they identify no comparator with sufficient 36 specificity to meet this high standard. Plaintiffs’ conclusory 37 allegations identify no comparator similarly situated in all 38 material respects; they notably make no allegations about other 39 restaurants exceeding maximum occupancy loads or disputing 5 1 occupancy limits. The equal protection claim was therefore 2 appropriately dismissed. 3 5. Plaintiffs allege that Platt and other inspectors “made 4 [entry] onto the property” of the restaurant without consent, 5 compl. ¶ 132, J.A. 32, in violation of the Fourth Amendment. 6 Such entries were allegedly made on multiple, though 7 unspecified, occasions and were calculated “to intimidate 8 plaintiffs through unlawful entry and direct threats to the 9 livelihood of plaintiffs without lawful justification.” Id. ¶ 10 133. These spare and conclusory allegations do not specify 11 dates or times or circumstances. Such omissions are especially 12 significant considering that the allegations pertain to 13 inspectors visiting a restaurant: the reasonable expectation 14 of privacy on the premises of a restaurant is diminished relative 15 to, for instance, a private residence, and there is a legitimate 16 public interest in regulatory inspections. Diminished 17 expectations of privacy and the need for inspections do not 18 authorize any entry at any time and under any circumstances; 19 but plaintiffs do not plead facts with sufficient specificity 20 to establish impropriety. We agree with the district court that 21 defendants fail to plausibly allege a Fourth Amendment claim. 22 Accordingly, and finding no merit in appellants’ other 23 arguments, we hereby AFFIRM the final order of the district 24 court. 25 FOR THE COURT: 26 CATHERINE O’HAGAN WOLFE, CLERK 6