Layman Lessons, Inc. v. City of Millersville, Tn, Civil Action No. 3:06-cv-0588.
| Decision Date | 07 March 2008 |
| Docket Number | Civil Action No. 3:06-cv-0588. |
| Citation | 636 F.Supp.2d 620 |
| Parties | LAYMAN LESSONS, INC., Plaintiff, v. CITY OF MILLERSVILLE, TENNESSEE, Defendant. |
| Court | U.S. District Court — Middle District of Tennessee |
Larry Lamont Crain, Brentwood, TN, for Plaintiff.
Beth Lee Frazer, Heather C. Stewart, William N. Bates, Farrar & Bates, Nashville, TN, for Defendant.
Plaintiff Layman Lessons, Inc. filed its complaint in this matter seeking injunctive and declaratory relief as well as compensatory damages arising under 42 U.S.C. § 1983 from the Defendant City of Millersville's alleged violation of the United States Constitution; Plaintiff also claims violations of the Religious Land Use and Institutionalized Persons Act of 2000, 42 U.S.C. § 2000cc et seq. ("RLUIPA"), and the Tennessee Constitution. Both parties have now filed cross-motions for summary judgment.
In its motion, Plaintiff asserts that it is entitled to a declaratory judgment that the Defendant's various actions constituted an illegal and unconstitutional deprivation of Plaintiff's constitutional and statutory rights, a permanent injunction enjoining the Defendant from further violation of said rights, and nominal damages, which would potentially also entitle it, as a "prevailing party" in either a § 1983 or an RLUIPA action, to attorney's fees under 42 U.S.C. § 1988(b).
In response to Plaintiff's motion and in support of its own, the Defendant argues first that this Court lacks jurisdiction over Plaintiff's claims. Alternatively, the Defendant argues that even if this Court determines that the exercise of jurisdiction is proper, the only issue remaining in this case is whether Plaintiff is entitled to attorney's fees, based on Magistrate Judge Griffin's Orders entered December 26, 2006 and September 6, 2007, the first stating that the only remaining issues were damages and attorney's fees (Doc. No. 30), and the second noting that Plaintiff had withdrawn its claim for monetary relief (Doc. No. 53, at ¶ 4) and therefore striking, with the parties' agreement, the paragraph on page 12 of Plaintiff's amended complaint requesting compensatory damages in the amount of $100,000. The Defendant argues that Plaintiff is not entitled to attorney's fees because it cannot be considered the "prevailing party" in this action. Finally, the Defendant argues that even if Plaintiff is considered the "prevailing party," it achieved no more than a "moral victory" which does not entitle it to recover attorney's fees.
The Court, having considered the applicable law and the undisputed facts, the parties' arguments and the entire record in this matter, finds that each motion must be granted in part and denied in part, as set forth below, resulting in the resolution of all pending claims. Plaintiff will, however, be deemed the "prevailing party" and will be entitled to attorney's fees commensurate with its degree of success.
Summary judgment is appropriate where no genuine issue of material fact exists and the moving party is entitled to judgment as a matter of law. Fed. R.Civ.P. 56(c). The moving party has the burden of showing an "absence of a genuine issue of material fact as to an essential element of the nonmovant's case." Street v. J.C. Bradford & Co., 886 F.2d 1472, 1479 (6th Cir.1989). The moving party may do this by providing affidavits or other proof or by showing lack of evidence on an issue for which the non-moving party will have the burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The non-moving party must then present specific facts showing that there is a genuine issue for trial. Fed.R.Civ.P. 56(e). In essence, the inquiry is "whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).
The standard of review for cross-motions for summary judgment does not differ from the standard applied when only one party files a motion, but simply requires a determination of whether either party deserves judgment as a matter of law on the material undisputed facts. Taft Broad. Co. v. United States, 929 F.2d 240, 248 (6th Cir.1991). The reviewing court must consider each motion on its own merits, resolving all reasonable inferences against the party whose motion is under consideration. Westfield Ins. Co. v. Tech Dry. Inc., 336 F.3d 503, 506 (6th Cir.2003); Taft Broad. Co., 929 F.2d at 248. Accordingly, when a court denies summary judgment to one party on the ground that it is granting summary judgment to another party, the denial of summary judgment is based on a legal conclusion rather than the district court's finding of a genuine issue of material fact. Black v. Roadway Express, Inc., 297 F.3d 445, 448 (6th Cir.2002).
The following facts are undisputed unless otherwise indicated.
Plaintiff Layman Lessons, Inc. is a non-profit, faith-based religious institution classified for tax purposes as a church. Layman Lessons seeks to provide food, clothing, shelter, transportation and Christian training to those in need. In 2005, Layman Lessons started Blessingdales Charity Store ("Blessingdales") as a branch of its ministry. Blessingdales was formed to serve as a storage and distribution center for donated clothing and personal items pending distribution to the needy as well as a retail store selling donated items to raise money to support Layman Lessons' programs. (Doc. No. 57 (Aff. of L. Johnston).)
On April 11, 2006, Layman Lessons entered into an Exclusive Lease Agreement ("Lease") with local businessman Chad Ray, pursuant to which Ray agreed to lease to Layman Lessons the upstairs portion of a building located at 1267 Louisville Highway in Millersville, Tennessee (the "Property"). (Doc. No. 66-1.) Layman Lessons' intent was to use the space as a retail thrift store and as headquarters for Blessingdales. Within a few days of executing the Lease, Louie Johnston, on behalf of Layman Lessons, met with Millersville Codes Administrator Karen Smith to begin the process of obtaining a Certificate of Occupancy (to which the parties also refer as a "Use and Occupancy Permit"). (Doc. No. 57, at ¶ 10.)
The Millersville Zoning Code requires that a new occupant obtain a Certificate of Occupancy prior to any alteration in the use of a building, and provides that a Certificate of Occupancy will be issued by a building inspector once "the building . . . or part thereof is found to conform with provisions of this chapter [the Zoning Ordinance of Millersville, Tennessee]." (Doc. No. 66-3, at 9 (Millersville Mun.Code § 90-55).) According to Smith, when presented with a proposed change in use, she will generally arrange for a building inspection and permit review. (Doc. No. 80, at 2.) The parties agree that if a new business moving into an existing property constitutes a change in use and certain zoning issues are present, the application for a Certificate of Occupancy must be presented to and approved by the Planning Commission.
In this case, it is undisputed that the Property is located within Millersville, Tennessee in an area that has at all times relevant to this dispute been zoned commercial and classified as C-1. Uses permitted as of right in this zoning district include retail stores and churches; as well as other types of businesses, pursuant to the Millersville Zoning Ordinance that went into effect on July 15, 2003. Millersville Mun.Code § 90-182(b)(1) (Doc. No. 66-3, at 10); Millersville Mun.Code § 03-429 (Doc. No. 71-1) (adopting the "Code of Ordinances"). Defendant, the City of Millersville (hereinafter, the "City"), nonetheless argues that a proposed zoning change pending at the time of Layman Lessons' application for a Certificate of Occupancy, as discussed below, meant that the application would have to be reviewed by the Planning Commission.
A building inspection took place on April 17, 2006, and a business review was held on June 22, 2006. (See 6/26/06 Letter from K. Smith to L. Johnston (Doc. No. 68).) In the meantime, Smith had initially been confused about the type of business activity Layman Lessons planned to conduct at the Property—specifically, she thought Layman Lessons intended to house and feed the homeless there and was not sure whether such a use would require review by the Planning Commission. (See Doc. No. 80-1, at 2 (Smith Dep. at 32:16-22).) Either for that reason or because of time constraints, she asked City Planner James Lech to assist her with Layman Lessons' application process, and to determine if Layman Lessons' intended use of the Property raised zoning issues that required Planning Commission approval.1 It is not clear when Smith first spoke with Lech, but Lech and Smith together met with Johnston in mid-April and asked Johnston to submit a written description of Layman Lessons' proposed use of the Property. Johnston submitted the requested information in the form of a document titled "Use and Occupancy Activities Statement" dated May 5, 2007, in which he specifically stated that "no persons, homeless or otherwise will stay in or on the property overnight." (Doc. No. 80-2.) Instead, the Property would be used as a collection and distribution center for donated items, as a retail store where donated items would be sold to the public to raise funds for Layman Lessons' programs and as storage space of out-of-season donated items. (Id.)
James Lech's role as City requires that he recommend to the Planning Commission, during Planning Commission meetings, whether to grant or decline applications for Certificates of Occupancy that go before the ...
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