Villas at Parkside v. City of Farmers Branch

• Decision Date: 19 June 2007
• Docket Number: Civil Action No. 3:06-CV-2376-L.,Civil Action No. 3:06-CV-0061-L.,Civil Action No. 3:06-CV-2371-L.
• Citation: 496 F.Supp.2d 757
• Parties: VILLAS AT PARKSIDE PARTNERS d/b/a Villas at Parkside, et al., Plaintiffs, v. The CITY OF FARMERS BRANCH, Defendant.
• Court: U.S. District Court — Northern District of Texas

496 F.Supp.2d 757

VILLAS AT PARKSIDE PARTNERS d/b/a Villas at Parkside, et al., Plaintiffs, v. The CITY OF FARMERS BRANCH, Defendant.

Civil Action No. 3:06-CV-2371-L.

Civil Action No. 3:06-CV-2376-L.

Civil Action No. 3:06-CV-0061-L.

United States District Court, N.D. Texas, Dallas Division.

June 19, 2007.

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COPYRIGHT MATERIAL OMITTED

William A. Brewer, III, James S. Renard, Michael S. Gardner, Michael L. Smith, Bickel & Brewer, Dallas, TX, Marisol L. Perez, David G. Hinojosa, David H. Urias, Diego Manuel Bernal, Marisa Bono, Nina Perales, San Antonio, TX, David Broiles, Law Offices of David Broiles, Fort Worth, TX, David J. Healey, Weil Gotshal & Manges, Houston, TX, Jennifer C. Chang, San Francisco, CA, Lisa Graybill, Austin, TX, Omar C. Jadwat, New York, NY, for Plaintiffs.

Matthew C. G. Boyle, John Francis Boyle, Jr., Kristy Jocelyn Orr, Michael K. Kallas, Boyle & Lowry, Irving, TX, for Defendant.

MEMORANDUM OPINION AND ORDER GRANTING PRELIMINARY INJUNCTION

LINDSAY, District Judge.

Before the court are: (1) [Villas Plaintiffs'] Application for Temporary Restraining Order and Preliminary Injunction, filed May 16, 2007; and (2) Vasquez Plaintiffs' Motion for Preliminary Injunction, filed May 24, 2007. After considering the motions, responses, replies, supplemental briefs, amicus curiae brief, record, and applicable law, the court grants the Villas Plaintiffs' Application for Preliminary Injunction and grants the Vasquez Plaintiffs' Motion for Preliminary Injunction.

I. Procedural and Factual Background

Plaintiffs ask the court to preliminarily enjoin Farmers Branch Ordinance 2903 (the "Ordinance"), an ordinance adopted by the Farmers Branch City Council on January 22, 2007. The Ordinance was the second iteration of a law originally adopted by the City Council on November 13, 2006, Ordinance 2892. A state court issued a temporary restraining order enjoining implementation of Ordinance 2892 on January 9, 2007, finding that Ordinance 2892 "may have been approved and adopted in violation of the Texas Open Meetings Act." Villas App. 19. Thereafter, the City Council repealed Ordinance 2892 and adopted the Ordinance. The Ordinance called for an election to allow the voters of Farmers Branch to vote for or against it. Ordinance (hereinafter, "Ord.") § 5.

On May 12, 2007, the voters of Farmers Branch approved the Ordinance by a margin of 4,058 "for," and 1,941 "against." The Ordinance was to go into effect May 22, 2007. Id. § 7 On May 21, 2007, however, the court granted Plaintiffs' applications for temporary restraining order, temporarily restraining the effective date and enforcement of the Ordinance. See Mem. Op. and Order Granting TRO (May 21, 2007). After the court's ruling, the court allowed the parties to file supplemental briefing. The court held a preliminary injunction hearing on June 5, 2007, and extended the temporary restraining order until June 19, 2007. At the hearing, the city provided additional exhibits, including three versions of proposed changes to the Ordinance. The court allowed additional supplemental briefing by the parties after the preliminary injunction hearing.

The title of the Ordinance is:

An ordinance repealing Ordinance 2892; adopting revised apartment complex rental licensing standards, mandating a citizenship certification requirement pursuant to 24 [Code of Federal Regulations] 5 et seq.; repealing Ordinance 2900; calling an election for May 12, 2007, to consider this ordinance (for or against); providing for enforcement; providing a penalty clause; providing a severability clause; and providing an effective date.

Ord. Title (original in all capital letters). The preamble to the Ordinance states that "the City Council fords and determines that the benefits and protections provided through the HUD citizenship and immigration status certification processes would also benefit the City;" that "the City of Farmers Branch is authorized to adopt ordinances pursuant to its police power to protect the health, safely, and welfare of its citizens;" and that "the City of Farmers Branch has determined that it is a necessity to adopt citizenship and immigration certification requirements for apartment complexes to safeguard the public, consistent with the provisions of 24 CFR 5, et seq." Id. Preamble.¹ The Ordinance also states that "the purposes of this Ordinance are to promote the public health, safety, and general welfare of the public." Id.

The Ordinance amends Chapter 26, Article IV of the City's Code of Ordinances relating to apartment complex rental. Specifically, the Ordinance adds language to section 26-116(d)(3) and creates a new section 26-116(f) titled "Citizenship or Immigration Status Verification." Id. § 3(A)-(B).

Subsection (1) of the new section (1) defines various terms used in the section, and states that the definitions are consistent with 24 CFR 5.504. Id. § 3(B)(f)(l). The term "Evidence of citizenship or eligible immigration status" is defined as "the documents which must be submitted to evidence citizenship or eligible immigration status for residency in the United States." Id. "Citizen" is defined as "a citizen or national of the United States." Id. "National means a person who owes permanent allegiance to the United States, for example, as a result of birth in a United States territory or possession." Id. Noncitizen is defined as "a person who is neither a citizen nor national of the United States." Id.

Subsection (2) provides: "The owner and/or property manager shall require as a prerequisite to entering into any lease or rental arrangement, including any lease or rental renewals or extensions, the submission of evidence of citizenship or eligible immigration status for each tenant family consistent with subsection (3)." Id. § 3(B)(f)(2).

Subsection (3) relates to "Evidence of citizenship or eligible immigration status" and lists the evidence required to show tenants' citizenship or immigration status. Id. § 3(B)(f)(3). This section sets out the documentation that tenants must provide. Noncitizens must provide: (1) a signed declaration of "eligible immigration status;" (2) a "form designated by [United States Immigration and Customs Enforcement]² as acceptable evidence of immigration status;" and (3) a "signed verification consent form." Id. § 3(B)(f)(3)(ii)(a)-(c).

Subsection (4) outlines the owner and/or property managers' obligations with regard to the evidence of citizenship or "eligible immigration status:"

(i) The owner and/or properly manager shall request and review original documents of eligible citizenship or immigration status. The owner and/or properly manager shall retain photocopies of the documents for its own records and return the original documents to the family. Copies shall be retained by the owner and/or properly manager for a period of not less than two (2) years after the end of the family's lease or rental.

(ii) The owner and/or property manager shall require that each family member submit evidence of citizenship or immigration status only once during continuous occupancy. The owner and/or property manager is prohibited from allowing the occupancy of any unit by any family which has not submitted the required evidence of citizenship or eligible immigration status under this Section ....

Id. § 3(B)(f)(4)(i)-(ii).

Section 4 of the Ordinance provides both a clause regarding severability of portions of the Ordinance and a statement regarding the intent and effect of the Ordinance in relation to federal immigration law:

If any section, paragraph, subdivision, clause or phrase of this Ordinance shall be adjudged invalid or held unconstitutional, the same shall not affect the validity of this Ordinance as a whole or any part of any provision thereof other than the part so decided to be invalid or unconstitutional. The intention of this Ordinance and the exercise of the police power of the City is not an attempt or effort to promulgate new and additional Immigration Laws or to conflict in any manner with the Federal Government's promulgation and enforcement of Immigration Laws.

Id. § 4.

Finally, the Ordinance includes a section describing penalties for violation. Specifically, section 6 of the Ordinance provides: "any person violating any of the provisions of this ordinance shall be deemed guilty of a misdemeanor and upon conviction thereof shall be fined in a sum not to exceed $500 and a separate offense shall be deemed committed upon each day during or on which a violation occurs or continues." Id. § 6.

Two groups of plaintiffs³ now challenge the Ordinance and ask the court to preliminarily enjoin the effective date and enforcement of the Ordinance. Plaintiffs argue that the Ordinance is preempted by federal law, that the Ordinance violates the Contracts Clause of the United States Constitution, that the Ordinance violates procedural and substantive due process, that the Ordinance violates the Equal Protection Clause of the United States Constitution, and that the Ordinance violates the Texas Local Government Code.

II. Legal Standard — Application for Preliminary Injunction

There are four prerequisites for the extraordinary relief of a temporary restraining order or preliminary injunction. To prevail, a plaintiff must demonstrate: (i) a substantial likelihood of success on the merits; (ii) a substantial threat of immediate and irreparable harm for which it has no adequate remedy at law; (iii) that greater injury will result from denying the temporary restraining order than from its being granted; and (iv) that a temporary restraining order will not disserve the public interest. Clark v. Prichard, 812 F.2d 991, 993 (5th Cir.1987); Canal Authority v. Callaway, 489 F.2d 567, 572 (5th Cir.1974) (en banc). The party seeking such relief must satisfy a cumulative burden of proving each of the four elements enumerated before a temporary restraining order or preliminary injunction can be granted....