MARSHA J. PECHMAN, District Judge.
THIS MATTER comes before the Court on Defendant's Motion for Judgment on the Pleadings. (Dkt. No. 25.) Having considered the Motion, the Response (Dkt. No. 29), the Reply (Dkt. No. 31), and all related papers, the Court GRANTS the Motion. The Court declines to hear oral argument on the matter.
Plaintiff Carl Haglund is a real estate developer and landlord who owns residential properties throughout Seattle, Washington. (Dkt. No. 23 at ¶ 1.5.) Defendants are the City of Seattle (the "City") and Seattle City Councilmember Kshama Sawant ("Councilmember Sawant"). (
In July 2015, Plaintiff purchased the Charles Street Apartments. (
Plaintiff contends that he "did not achieve widespread public notoriety as a `slumlord' until Councilmember Sawant and the City named a law after him and began paying to advertise protest rallies calling [him] the `notorious slumlord.'" (
On July 12, 2017, Plaintiff served the City with a Notice of Tort Claim and Request for Timely Correction. (
Defendants now move for judgment on the pleadings as to Plaintiff's claims for tortious interference, misappropriation, and violation of equal protection and due process. (
On a motion for judgment on the pleadings under Federal Rule of Civil Procedure 12(c), the Court "must accept all factual allegations in the complaint as true and construe them in the light most favorable to the non-moving party."
Plaintiff contends that by naming Ordinance No. 125054 the "Carl Haglund Law" and referring to him as a "slumlord," Defendants interfered with his "business expectancy" in "conduct[ing] business in the City of Seattle as a landlord, as well as a developer and redeveloper of property," including at the Charles Street Apartments. (Dkt. No. 23 at ¶ 3.2.) In particular, Plaintiff claims that Defendants solicited tenants of the Charles Street Apartments to "speak out against him" and that their interference caused Plaintiff to "back off on the rent increases" he had planned. (
A claim for tortious interference has five elements: (1) the existence of a valid contractual relationship or business expectancy; (2) the defendant's knowledge of that relationship or expectancy; (3) the intentional interference inducing or causing a breach or termination of the relationship or expectancy; (4) the interference was for an improper purpose or used improper means; and (5) resultant damage.
The Court finds that Plaintiff has not plead sufficient facts to support his tortious interference claim. First, Plaintiff has not identified any lost profits, increased costs, or lost financing; has not identified a single investor or lender who declined to enter into a real estate venture or extend him a loan; and has not identified a single tenant who refused to pay rent, comply with existing lease terms, or enter into a prospective lease. Second, Plaintiff has not identified any mandatory action that Defendants took to force any lease concessions. Indeed, Plaintiff concedes that he "back[ed] off on rent increases" himself, instead of "letting the code enforcement process play out" on the violations. (Dkt. No. 23 at ¶ 3.5; Dkt. No. 29 at 12.) Plaintiff's claim for tortious interference fails, as liability cannot be imposed based on his "voluntary business decisions" nor premised on his "independent unsubstantiated decision . . . that it would be unavailing to seek a possible administrative remedy accorded him under the law."
Therefore, the Court GRANTS Defendants' motion with respect to the tortious interference claim.
Plaintiff contends that Defendants "appropriated his name and identity for their own use or benefit" and brings claims for common law misappropriation and violation of his right of publicity under RCW 63.60.050. (Dkt. No. 23 at ¶¶ 4.1-4.6.)
To state a claim for misappropriation, Plaintiff must allege facts showing that Defendants appropriated his name or likeness to their advantage, commercially or otherwise.
The Court finds that Plaintiff has not plead sufficient facts to establish a claim for misappropriation or violation of his right of publicity. First, Plaintiff's own allegations establish that Defendants used his name in connection with matters of public interest. In particular, Plaintiff alleges that Councilmember Sawant used his name (1) to "publicize[] the 225 violations found at the Charles Street building"; (2) to bring publicity to "her proposed rent control ordinance"; and (3) to "solicit donations for her political campaign." (Dkt. No. 23 at ¶¶ 1.10, 1.13, 4.4.) Certainly, Plaintiff's decision to increase rents following the discovery of code violations at the Charles Street Apartments—and his tenants' decision to protest these rent increases—are matters of public interest. Indeed, Plaintiff concedes that Defendants' statements were "widely distributed publically [sic] to a large number of people and news reporters, and . . . redistributed repeatedly by a large number of people through news accounts and via the internet." (
Second, Plaintiff has failed to allege that Defendants "use[d] or authorize[d] the use of [his] name . . . or likeness on or in goods, merchandise, or products entered into commerce in this state, or for purposes of advertising products, merchandise, goods, or services, or for purposes of fund-raising or solicitation of donations . . ." RCW 63.60.050. While Plaintiff alleges that Councilmember Sawant used his name to raise money for her political campaign, the statute by its terms does not apply to use of an individual's "name, voice, signature, photograph, or likeness in . . . any political campaign when the use does not inaccurately claim or state an endorsement by the individual." RCW 63.60.070(2)(b) (emphasis added). Plaintiff does not allege that Councilmember Sawant's campaign solicitations could reasonably be understood to claim or state his endorsement. To the contrary, these solicitations evince unambiguous antipathy between landlord and politician. (
Therefore, the Court GRANTS Defendants' motion with regard to the misappropriation and right of publicity claims.
Plaintiff contends that other "similarly situated" local landlords with outstanding code violations—namely, Hugh Sisley, Ken Cederstrand, and James Boyd, Jr.—were not subjected to additional inspections or singled out as "slumlords," and claims that by singling him out for such treatment, Defendants violated his Fourteenth Amendment right to Equal Protection for which they are liable under 42 U.S.C. § 1983. (Dkt. No. 23 at ¶¶ 9.1-9.7.)
"When an equal protection claim is premised on unique treatment rather than on a classification, the Supreme Court has described it as a `class of one' claim.
The Court finds that Plaintiff has not plead sufficient facts to support his equal protection claim. First, Plaintiff claims that Sisley, Cederstrand, and Boyd "own buildings with numerous outstanding code violations" and "have had similar violations with respect to their rental properties." (Dkt. No. 23 at ¶ 1.15.) However, Plaintiff fails to establish an "extremely high degree of similarity" to these landlords, as he does not claim that Sisley, Cederstrand, or Boyd raised rents following code violations or that their tenants protested such rent increases. Second, Plaintiff fails to allege that the City's decision to enforce its codes was irrational, or that it was merely pretext for an impermissible motive, as required under a "class-of-one" theory.
Therefore, the Court GRANTS Defendants' motion with regard to the equal protection claim.
Plaintiff contends that he had a "property right in the use of his name and identity under RCW 63.60.010" and "in his real properties and in his right to his business expectancies" which Defendants deprived him of by "misappropriating his name and identity for the purposes of naming a City ordinance after [him], without first giving [him] notice and an opportunity for a fair hearing on whether he was in fact a `slumlord' or the `notorious slumlord' . . ." (Dkt. No. 23 at ¶¶ 10.1-10.7.)
The Court finds that Plaintiff has not plead sufficient facts to support his due process claim. First, Plaintiff has failed to establish his claims for right of publicity or tortious interference for the reasons discussed,
Therefore, the Court GRANTS Defendants' motion with regard to the due process claim.
Because the allegations in Plaintiff's Amended Complaint, even if accepted as true and viewed in the light most favorable to Plaintiff, do not support his claims for tortious interference, misappropriation and violation of his right of publicity, equal protection, or due process, the Court GRANTS Defendants' Motion for Judgment on the Pleadings as to each of these claims.
The clerk is ordered to provide copies of this order to all counsel.