Forest City Residential Mgmt., Inc. v. Beasley
Decision Date | 03 December 2014 |
Docket Number | Case No. 13–14547. |
Citation | 71 F.Supp.3d 715 |
Parties | FOREST CITY RESIDENTIAL MANAGEMENT, INC., on behalf of Plymouth Square Ltd. Dividend Housing Association and Monroe Township Assoc. Ltd. Dividend Housing Association, Plaintiff, v. Lashawn BEASLEY and Eugene Kenyon, Defendants. |
Court | U.S. District Court — Eastern District of Michigan |
Mark K. Wasvary, Becker and Wasvary, Troy, MI, for Plaintiff.
Robert M. Day, Legal Aid and Defender Association of Detroit, Detroit, MI, for Defendants.
This is a declaratory judgment action. Plaintiff Forest City Residential Management, Inc. (“Plaintiff” or “Forest City”) filed a Complaint for Declaratory Judgment on October 31, 2013, seeking to have this Court declare that, among other things, Defendants Lashawn Beasley (“Beasley”) and Eugene Kenyon (“Kenyon”) are not entitled to a reasonable accommodation under the Fair Housing Act and/or Rehabilitation Act to use medical marijuana in their rental units at Plaintiff's Section 8 federally assisted housing facilities. (Doc. # 1; Doc. # 16).
This matter is before the Court on Defendant Beasley's Motion to Dismiss Pursuant to Federal Rules of Civil Procedure 12(b)(1) and (6) (Doc. # 30) and Plaintiff's Motion for Summary Judgment (Doc. # 19). The motions have been fully briefed by the parties and the Court heard oral argument on November 13, 2014. For the reasons set forth below, the Court shall DENY Defendant Beasley's Motion to Dismiss and GRANT IN PART and DENY IN PART Plaintiff's Motion for Summary Judgment.
Forest City filed this action against Defendants Beasley and Kenyon on October 31, 2013. Beasley, who is represented by counsel, filed an Answer to the Complaint on January 16, 2014. (Doc. # 13). Forest City filed a First Amended Complaint for Declaratory Judgment and Injunctive Relief on February 4, 2014. (Doc. # 16).
Defendant Kenyon has not answered or appeared in this action. On December 11, 2013, Forest City obtained a Clerk's Entry of Default as to Kenyon. Forest City has not yet sought entry of a default judgment as to Kenyon.
On May 29, 2014, this Court issued another Order requiring Forest City to show cause why Kenyon should not be dismissed for failure to prosecute. (Doc. # 26). The response was due by June 12, 2014, and no response was filed. A footnote in Forest City's Motion for Summary Judgment makes clear, however, that this lawsuit is now moot as to Kenyon because he has since vacated the apartment he occupied following eviction proceedings for assaultive behavior. (Pl. Mo. at 2, fn 1).
Forest City manages several apartment complexes for their owners, including complexes that participate with federally-subsidized housing programs. Beasley, a resident of an apartment managed by Forest City, holds a medical marijuana card and has been smoking marijuana in her apartment. She has requested, as a reasonable accommodation under the Fair Housing Act, that she be allowed to use marijuana in her apartment. In this action, Forest City seeks the following relief:
(First Am. Compl. at 10–11). On February 4, 2014, the parties stipulated to withdrawing the jury demand in this action. (Doc. # 17).
On March 24, 2014, Forest City filed the instant Motion for Summary Judgment. (Doc. # 19). That motion was fully briefed by the parties and oral arguments were scheduled to be heard on October 9, 2014. However, on October 6, 2014, Defendant filed a Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(1) and (6), challenging Plaintiff's standing to maintain this suit, arguing that the Court should decline to intervene in what she characterizes as a landlord-tenant issue, and arguing that Plaintiff has failed to state a claim upon which relief may be granted. The motion cut-off date in this case was March 24, 2014. Nonetheless, because standing is an issue touching upon subject matter jurisdiction and can be raised at any time, the Court found it appropriate to consider Defendant's motion on the merits.
The underlying facts of this case are largely undisputed.
Beasley was diagnosed with Multiple Sclerosis
in April of 2009. (Beasley Affidavit, attached as Ex. D to Pl.'s Br.). Her income is Supplemental Security Income (“SSI”) based on her disability of Multiple Sclerosis. (Pl. Br. at Ex. D).
Beasley's physician prescribed medicinal marijuana to help with her symptoms of Multiple Sclerosis. (Pl. Br. at Ex. D). Beasley obtained a Medical Marijuana card issued by the State of Michigan pursuant to the Michigan Medical Marihuana Act. (Pl. Br. at Ex. D; see also Ex. 3 to Pl.'s Br.).
Forest City is a management company that manages apartment complexes. Beasley entered into a Lease Agreement with Forest City on February 6, 2013 to occupy a townhome apartment at Plymouth Square Village in the City of Detroit. .
Plymouth Square is a project-based, Section 8, federally assisted housing complex. Plymouth Square receives a portion of Beasley's monthly rent in the form of a subsidy from the United States Department of Housing and Urban Development (“HUD”) via the Michigan State Housing and Development Authority. (Lake Affidavit, attached as Ex. C to Pl. Br.; Lease Agreement, Ex. A to Pl. Br., at ¶ 3).
The Lease Agreement and Lease Addendum are regulated by HUD. (Pl. Br. at 1). The Lease Agreement provides that the landlord, Forest City, “may” terminate the agreement for various reasons, including:
(Pl. Br., Ex. A at ¶ 23) (bolding in original).
On the same day that Beasley executed her lease, she also signed a “Tenancy Termination Addendum For HUD Housing Programs,” which stated that the landlord “may” terminate the lease agreement for various reasons, including the following reasons that Beasley acknowledged by placing her initials next to them:
(Pl. Br. at Ex. E) (emphasis added).
In July of 2013, Forest City filed a Complaint in the 36th District Court, Wayne County, Michigan, seeking to terminate Beasley's tenancy. In responding to the Complaint, Beasley stated that she has Multiple Sclerosis, and that her physician had prescribed medical marijuana to help with her symptoms. Beasley requested, in connection with that proceeding, that Forest City grant her a reasonable accommodation under the Fair Housing Act and allow her to use medical marijuana in her own rental unit. (Pl.'s Br. at Ex. D).
Thereafter, Forest City dismissed the state court action and filed this declaratory action in this court. Plaintiff Forest City now seeks Summary Judgment in its favor (Doc. # 19). Defendant Beasley has filed a response in opposition to Plaintiff's motion (Doc. # 22), and Plaintiff has replied. (Doc. # 25).
Defendant has also moved for dismissal of this action on the following bases: 1) that Plaintiff lacks standing because it has suffered no injury in fact; 2) that this Court should decline to exercise jurisdiction to avoid involvement in a state-law landlord-tenant dispute; and 3) Plaintiff has failed to state a claim upon which relief...
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