EJS Properties, LLC v. City of Toledo

In 2002, EJS wanted to build a charter school at a commercial site in Toledo. The site needed to be re-zoned. After initially supporting rezoning, McCloskey, the region’s city council representative, changed his mind. The city denied re-zoning. EJS claims that McCloskey’s reversal occurred only after EJS refused to acquiesce to McCloskey’s demand that EJS donate $100,000 to a local retirement fund. McCloskey does not deny making the demand. EJS sued the city and McCloskey under 42 U.S.C. 1983, claiming violations of its rights to substantive and procedural due process, to equal protection, and to petition under the First Amendment, and asserting a state-law claim of tortious interference with a business expectancy. The district court granted summary judgment for the defendants. The Sixth Circuit affirmed. Approval was a discretionary matter, so that EJS had no property interest. A property owner cannot create an interest in discretionary re-zoning simply by conveying his land to another party contingent upon obtaining re-zoning. Although “a compelling proposition,” the court declined to recognize a liberty interest in corruption-free decision making. The decision not to re-zone passes rational-basis review in light of the clearly expressed desire to maintain the area for future industrial use. View "EJS Properties, LLC v. City of Toledo" on Justia Law