Opinion

Cleveland Communications, Inc. v. Lorain County Board of Commissioners

Court
District Court, N.D. Ohio
Filed
Aug 20, 2024
Cited by
0 cases
Authority
More cited than 31.7%

The opinion

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF OHIO

EASTERN DIVISION

CLEVELAND COMMUNICATIONS, INC., ) CASE NO. 1:23-cv-1561

)

Plaintiff, ) JUDGE CHARLES E. FLEMING

)

v. )

)

LORAIN COUNTY BOARD OF ) MEMORANDUM OPINION AND

COMMISSIONERS, et al., ) ORDER

)

Defendants. )

Before the Court are two motions: (i) Defendants’ motion to dismiss the first amended

complaint pursuant to Fed. R. Civ. P. 12(b)(1) and 12(b)(6) (“Motion to Dismiss”) (ECF No. 12);

and (ii) Plaintiff’s motion for leave to file a second amended complaint pursuant to Fed. R. Civ.

P. 15(a)(2) (“Motion to Amend”) (ECF No. 13). For the reasons discussed below, the Motion to

Amend is GRANTED and the Motion to Dismiss is DENIED AS MOOT.

I. PROCEDURAL BACKGROUND

On November 16, 2023, Plaintiff Cleveland Communications, Inc. (“CCI”) filed a first

amended complaint against Defendants Lorain County Board of Commissioners (the “Board”),

Jeffrey Armbruster, David J. Moore, and Jeffrey Riddell (collectively, “Defendants”). (ECF

No. 10). The pleadings generally alleged that, after CCI and the Board had entered into a valid

contract for CCI to upgrade a countywide emergency radio communications system for Lorain

County (the “Contract”), the Defendants conspired together, rescinded the Contract, and worked

to exclude CCI from expanding and servicing radio systems in Lorain County. (Id. at PageID

#189–204). CCI asserted six claims for relief: (i) a violation of the Racketeer Influenced and

Corrupt Organizations (“RICO”) Act, 18 U.S.C. §§ 1962(b) and (c), against Moore and

Armbruster (Count One); (ii) a violation of the RICO Act, 18 U.S.C. § 1964, against Moore and

Armbruster (Count Two); (iii) denial of substantive due process, in violation of the Fourteenth

Amendment, against Moore and Armbruster (Count Three); (iv) denial of procedural due process,

in violation of the Fourteenth Amendment, against the Board, Moore and Riddell (Count Four);

(v) denial of equal protection, in violation of the Fourteenth Amendment, against the Board,

Moore, and Riddell (Count Five); and (vi) breach of contract, against the Board (Count Six). (Id.

at PageID #205–17).

On November 30, 2023, Defendants filed the Motion to Dismiss. (ECF No. 12).

Defendants argue that CCI cannot sustain: (i) a RICO claim because the first amended complaint

contains insufficient, conclusory allegations against the defendants and Moore is otherwise entitled

to legislative immunity, (id. at PageID #258–63); (ii) substantive and procedural due process

claims because the state-law breach of contract claim provides an adequate remedy, (id. at PageID

#264–66); and (iii) an equal protection claim because there are insufficient allegations to support

a “class of one” theory, (id. at PageID #266–69). Defendants further argue that the breach of

contract should be dismissed because the Contract lacks a statutorily required fiscal certificate and

the Court should otherwise decline to exercise supplemental jurisdiction over this state-law claim.

(Id. at PageID #269–72).

Shortly thereafter, Plaintiff filed the pending Motion to Amend. (ECF No. 13). Plaintiff

asserts that it is seeking to amend the pleadings to add an additional claim and amend the factual

allegations to demonstrate the sufficiency of its claims; it also contends that justice and efficiency

support granting leave to amend and there is no bad faith, futility, or undue prejudice. (Id. at

PageID #274–75). As a result of granting leave to amend, Plaintiff argues that Defendants’ motion

to dismiss should be denied as moot. (Id. at PageID #276–77). Notably, the motion does not

address Defendants’ arguments for dismissal in the Motion to Dismiss. Plaintiff attached a

proposed second amended complaint to the Motion to Amend. (ECF No. 13-1).

Plaintiff subsequently filed a supplement to the Motion to Amend (“Supplement”), seeking

to add a second additional claim and further amend the factual pleadings. (ECF No. 19). The

Supplement contains an updated proposed second amended complaint. (ECF No. 19-1). The

updated second amendment complaint asserts two additional claims: (i) a First Amendment

retaliation claim against Defendant Armbruster, (id. at PageID #428); and (ii) a malicious

prosecution claim against Defendant Moore, (id. at PageID #428–30). Plaintiff also added new

and amended factual allegations throughout the proposed second amended complaint, including

within the “introduction,” “parties,” and “facts common to all claims” sections, as well as under

Count One. (Id. ¶¶ 1–2, 4, 8, 12, 15, 32, 48–52, 79, 97, 121–24, 126–28, 134, 137).

Defendants filed opposition to both the Motion to Amend and the Supplement. (ECF

Nos. 15, 21). Defendants argue that leave to amend should be denied because the amendments are

futile, given that: (i) the claims in the first amended complaint are still subject to dismissal; and

(ii) the proposed malicious prosecution and retaliation claims are facially deficient. (ECF No. 15,

PageID #354–60; ECF No. 21, PageID #466–73).

II. MOTION TO AMEND

A. Legal Standard

Pleading amendments are governed by Federal Rule of Civil Procedure 15(a)(2). Rule

15(a)(2) provides that, in instances of amendment other than amending within 21 days of service

of the initial complaint, “a party may amend its pleading only with the opposing party's written

consent or the court’s leave,” and that “[t]he court should freely give leave when justice so

requires.” “Rule 15 reinforces the principle that cases should be tried on their merits rather than

the technicalities of pleadings, and therefore assumes a liberal policy of permitting amendments.”

Inge v. Rock Fin. Corp., 388 F.3d 930, 937 (6th Cir. 2004) (internal citations and quotation marks

omitted). The Supreme Court has clarified that absent “any apparent or declared reason—such as

undue delay, bad faith or dilatory motive on the part of the movant, repeated failure to cure

deficiencies by amendments previously allowed, undue prejudice to the opposing party by virtue

of allowance of the amendment, futility of the amendment, etc.—the leave sought should, as the

rules require, be ‘freely given.’” Foman v. Davis, 371 U.S. 178, 182, 83 S. Ct. 227, 9 L. Ed. 2d

222 (1962). The Sixth Circuit has emphasized that “case law in this Circuit manifests ‘liberality

in allowing amendments to a complaint.’” Newberry v. Silverman, 789 F.3d 636, 645 (6th Cir.

2015) (quoting Janikowski v. Bendix Corp., 823 F.2d 945, 951 (6th Cir. 1987)). The party

opposing a motion to amend the pleadings bears the burden of establishing that the proposed

amendments would be futile. See White v. Emergency Med. Billing & Coding Co., No. 11-14207,

2013 U.S. Dist. LEXIS 122293, 2013 WL 4551919, at *4 (E.D. Mich. Aug. 28, 2013) (collecting

cases).

B. Discussion

As an initial matter, the Court finds that there is no evidence of undue delay, bad faith or

dilatory motive, or undue prejudice to support denying leave to amend in this instance; nor have

Defendants raised any such argument in their opposition briefing. Defendants’ main argument in

opposition is that the proposed amendments are ultimately futile. (See ECF No. 15, PageID

#354–60; ECF No. 21, PageID #466–73).

Although Rule 15 encourages leave to amend be freely granted, “a request may be denied if

it would be futile, i.e., if the amended complaint would not withstand a motion to dismiss for

failure to state a claim.” Doe v. Mich. State Univ., 989 F.3d 418, 427 (6th Cir. 2021) (citing Rose

v. Hartford Underwriters Ins. Co., 203 F.3d 417, 420 (6th Cir. 2000)). To survive a Fed. R. Civ.

P. 12(b)(6) motion to dismiss, a complaint must “contain sufficient factual matter, accepted as true,

to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129

S. Ct. 1937, 173 L. Ed. 2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127

S. Ct. 1955, 167 L. Ed. 2d 929 (2007)). A claim is plausible on its face when “the plaintiff pleads

factual content that allows the court to draw the reasonable inference that the defendant is liable

for the misconduct alleged.” Id. at 678. Rule 8(a)(2) provides that the complaint should contain

a short and plain statement of the claim, but that it should be more than a “the-defendant-

unlawfully-harmed-me” accusation. Id. at 677–78 (citing Twombly, 550 U.S. at 555). A plaintiff

is obligated to provide sufficient grounds to show entitlement to relief; “labels, conclusions, and a

formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555

(citing Papasan v. Allain, 478 U.S. 265, 286, 106 S. Ct. 2932, 92 L. Ed. 2d 209 (1986)). Although

a complaint need not contain detailed factual allegations, its “factual allegations must be enough

to raise a right to relief above the speculative level on the assumption that all the allegations in the

Complaint are true.” Id. When reviewing a complaint, a court must construe the pleading in the

light most favorable to the plaintiff. Bibbo v. Dean Witter Reynolds, Inc., 151 F.3d 559, 561 (6th

Cir.1998).

First, the Court is not convinced by Defendants’ argument that the proposed amendments

are facially deficient and therefore futile. Defendants’ briefs in opposition do not particularly

address the large number of amended or new factual allegations throughout the updated second

amended complaint. As for the new claims, Defendants contend, in part, that the proposed

retaliation claim is facially deficient because there is no constitutional protection for filing

frivolous federal lawsuits. (ECF No. 15, PageID #359). The Court disagrees with Defendants’

framing of the matter. Even if Plaintiff’s claims are ultimately dismissed on the merits for failure

to state a claim, that does not necessarily mean that the claims were frivolous or entirely baseless.

Although it is unclear based on the various submissions before the Court whether Plaintiff has

stated viable claims for relief against Defendants, the Court finds that Defendants have not met

their burden of establishing that the proposed amendments would be futile in their entirety.

Second, even if the Court were to find that all the proposed amendments were futile, the

Court is not required to deny leave to amend. “Though futility is a permissible basis for denying

a motion to amend a pleading, the Supreme Court in Foman v. Davis did not mandate that a

court must deny a proposed amendment if it is futile.” All Pro Brace, LLC v. United States HHS,

No. 1:21-cv-00896, 2022 U.S. Dist. LEXIS 209091, at *9 (N.D. Ohio Nov. 17, 2022) (citing

Aladdin Temp-Rite, LLC v. Carlisle FoodService Prods. Inc., No. 3:13-0650, 2014 WL 12774872,

at *2 (M.D. Tenn. June 16, 2014)) (emphasis in original). “Rather, even if a claim may be futile,

the Court is not required to disallow the amendment.” Id. (citation and internal quotation marks

omitted) (emphasis in original).

In light of the lack of undue prejudice, undue delay, and bad faith, the Court finds that

granting leave to amend is in the best interests of justice. Moreover, the Court finds the interests

of efficiency are best served by granting leave to amend. The parties’ arguments for and against

dismissal of the claims in the first amended complaint are crisscrossed and interspersed throughout

the parties’ opposition and reply briefs addressing Defendants’ motion to dismiss, Plaintiff’s

Motion to Amend, and Plaintiff’s Supplement. Under these circumstances, whether the proposed

amendments are futile and whether Plaintiff’s claims are subject to dismissal under Rule 12(b)(6)

would be best handled in a single motion to dismiss, where the arguments are cleanly and plainly

presented before the Court. Accordingly, the Court GRANTS the Motion to Amend.

“Tt is well-settled that motions to dismiss are rendered moot upon the filing of an amended

complaint.” Doe v. Oberlin Coll., No. 1:17cv1335, 2018 U.S. Dist. LEXIS 237046, at *6 (N.D.

Ohio Feb. 23, 2018) (citing cases); see also Crawford v. Tilley, 15 F 4th 752, 759 (6th Cir. 2021)

(“The general rule is that filing an amended complaint moots pending motions to dismiss.”); He/ms

Aramark Corr. Servs., No. 3:22-cv-1557, 2022 U.S. Dist. LEXIS 231412, at *2 (N.D. Ohio Dec.

21, 2022) (citing Doe, 2018 U.S. Dist. LEXIS 237046, at *6). As a result, Defendants’ Motion to

Dismiss is DENIED AS MOOT. The Court notes that Plaintiff has now been given several

opportunities to amend the pleadings, twice in the face of a pending motion to dismiss. The Court

therefore cautions Plaintiff that any future requests for leave to amend will be denied absent

extraordinary circumstances.

I. CONCLUSION

For the foregoing reasons, Plaintiff’s motion for leave to file a second amended complaint

(ECF No. 13) is GRANTED. The Clerk of Court is DIRECTED to enter the second amended

complaint (Doc. No. 19-1) as a separate docket entry. Defendants’ Motion to Dismiss (ECF

No. 12) is DENIED AS MOOT. Defendants shall answer or otherwise respond by September 10,

2024.

IT ISSO ORDERED.

Date: August 20, 2024 Have

CHARLES E.FLEMING

U.S. DISTRICT COURT JUDGE

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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