LYLE E. STROM, Senior District Judge.
This matter is before the Court on the motion of defendants, City of Lincoln, Nebraska, a municipal corporation, Tom Casady, Jim Peschong, and Russell Fosler, individually, and in their official capacities as employees of the City of Lincoln (collectively "defendants") to dismiss (Filing No.
In this action, plaintiff Shane Harrington and his business, Kali Records, LLC (herein after referred to as "plaintiff" singular) allege various constitutional and state law violations against defendants. Plaintiff's claims arise from the denial of his liquor license.
Determining whether a complaint states a plausible claim for relief is "a context-specific task" that requires a court "to draw on its judicial experience and common sense." Braden v. Wal-Mart Stores, Inc., 588 F.3d 585, 594 (8th Cir. 2009) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 677-78, 129 S.Ct. 1937, 173 L. Ed. 2d 868 (2009)). Federal Rule of Civil Procedure 8 requires a complaint to present "a short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2). "[A] complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face." Braden, 588 F.3d at 594 (quoting Iqbal, 556 U.S. at 677-78) (citing Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L. Ed. 2d 929 (2007)). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 678.
When considering a motion to dismiss under Rule 12(b)(6), well-pled allegations are considered to be true and are viewed in the light most favorable to the plaintiff. Braden, 588 F.3d at 591, 595. In viewing the facts in this light, the Court must determine whether the complaint states any valid claim for relief. Jackson Sawmill Co. v. United States, 580 F.2d 302, 306 (8th Cir. 1978). Recitations of elements of a cause of action with mere conclusory statements fail to meet Rule 8's pleading requirements. Iqbal, 556 U.S. at 678. However, plaintiff may use legal conclusions to provide the framework of a complaint, so long as factual allegations support those legal conclusions. Id. at 678-79. Thus, a dismissal is likely "only in the unusual case in which a plaintiff includes allegations which show on the face of the complaint that there is some insuperable bar to relief." Jackson Sawmill, 589 F.2d at 306.
Plaintiff's Third Amended Complaint asserts six causes of action, presumably against each of the four defendants. The Court concludes that plaintiff's Second Cause of Action for Violations of Due Process under the Fourteenth Amendment and Fifth Cause of Action for Tortious Interference with Business Relationships should be dismissed as to all defendants under Federal Rule of Civil Procedure 12(b)(6) as discussed below.
Plaintiff's second cause of action alleges "Fourteenth Amendment Due Process Violations." (Filing No.
"`To establish a violation of procedural due process, a plaintiff must show that he has been deprived of a constitutionally protected life, liberty, or property interest.'" Mulvenon v. Greenwood, 643 F.3d 653, 657 (8th Cir. 2011) (quoting Davenport v. Univ. of Ark. Bd. of Trs., 553 F.3d 1110, 1114 (8th Cir. 2009)); see also Richardson, 2008 WL 3823716 at *1 (explaining "claims regarding the right to either procedural or substantive due process must begin with identification of a protected liberty or property interest.") (emphasis added). Nothing within the Third Amended Complaint reveals that plaintiff is claiming a depravation of either life or liberty. Plaintiff must therefore show he was deprived of a constitutionally protected property interest. When a constitutionally protected property interest is lacking, a due process violation cannot be established. See Mulvenon, 643 F.3d at 657. Protected property interests are "`determined with reference to state law.'" Brian v. Westside Community School District, No. 8:05CV484, 2006 WL 2375482 at *6 (D. Neb. Aug. 14, 2006) (quoting Bishop v. Wood, 426 U.S. 341, 344, 96 S.Ct. 2074, 48 L. Ed. 2d 684 (1976)); see also Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 33 L. Ed. 2d 548 (1972) ("Property interests, of course, are not created by the Constitution. Rather, they are created and their dimensions are defined by existing rules or understandings that stem from an independent source such as state law rules or understandings that secure certain benefits and that support claims of entitlement to those benefits.").
Turning then to the issue of whether a liquor license creates a protected property interest under Nebraska state law, the Nebraska Supreme Court has conclusively held that "a liquor license is a purely personal privilege, does not constitute property, and vests no property rights in a licensee." Bali Hai', Inc. v. Nebraska Liquor Control Commission, 236 N.W.2d 614, 618 (Neb. 1975), see also Neb. Rev. St. § 53-149 (2015). Thus, Nebraska law leaves plaintiff without an argument concerning a property interest in a liquor license. Because plaintiff cannot assert a constitutionally protected property interest in a liquor license, his due process claim, whether procedural or substantive, will be dismissed.
Plaintiff's fifth cause of action alleges tortious interference with business relationships. See Filing No.
2. REMAINING CAUSES OF ACTION
Other than the causes of action dismissed above, the Court finds that the allegations contained in the Third Amended Complaint satisfy the procedural requirements to overcome a motion to dismiss with respect to the City of Lincoln, Chief Tom Casaday, and Chief Jim Peschong. Defendants claim qualified immunity should be applied, relieving the police officers of liability. The Court disagrees at this time and finds that plaintiff's Third Amended Complaint satisfies Rule 8's standard and sufficiently pleads a violation of clearly established statutory or constitutional rights of which a reasonable person would have known. See Mathers v. Wright, 636 F.3d 396, 399 (8th Cir. 2011) (quoting Harlow v. Fitzgerald, 457 U.S. 800, 102 S.Ct. 2727, 73 L. Ed. 2d 396 (1982)). The Court likewise disagrees with defendants that the Third Amended Complaint "fails to show that the alleged constitutional violations were the result of an unconstitutional policy or custom of the city." (Filing No.
As indicated above, it is unclear from the face of plaintiff's Third Amended Complaint whether every cause of action alleged applies to every and all named defendants. See generally Filing No.
IT IS ORDERED:
1) Defendants' motion to dismiss plaintiff's first cause of action is denied as to all defendants.
2) Defendants' motion to dismiss plaintiff's second cause of action is granted. Plaintiff's Fourteenth Amendment Due Process Violations are dismissed as to all defendants.
3) Defendants' motion to dismiss plaintiff's third cause of action is denied as to all defendants.
4) Defendants' motion to dismiss plaintiff's fourth cause of action is denied as to all defendants.
5) Defendants' motion to dismiss plaintiff's fifth cause of action is granted. Plaintiff's allegations of tortious interference with business relationships are dismissed as to all defendants.
6) Defendants' motion to dismiss plaintiff's sixth cause of action is denied as to the City of Lincoln, Nebraska, Chief Tom Casaday, and Chief Jim Peschong and granted as to Officer Russell Fosler. Plaintiff's allegations of negligent hiring, training and supervision, are dismissed as to Officer Fosler.