Martin Gross v. R.T. Reynolds , 487 F. App'x 711 ( 2012 )


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  •                                                    NOT PRECEDENTIAL
    UNITED STATES COURT OF APPEALS
    FOR THE THIRD CIRCUIT
    _____________
    No. 11-3917
    _____________
    MARTIN GROSS, Individually and t/d/b/a The Art I Do,
    Appellant,
    v.
    R.T. REYNOLDS, INC.; HARRISBURG UNIVERSITY OF SCIENCE AND
    TECHNOLOGY; D.E. GIMMELL, INC.; GRAYSTONE BANK; IKE SHOLLEY;
    WAYNE SPAHR; RON WHISKER; TODD BUZARD; ERIC DARR;
    DELLANOR YOUNG; DAVE ANGLE,
    Appellees.
    _______________
    On Appeal from the United States District Court
    for the Middle District of Pennsylvania
    (D.C. No. 10-cv-2380)
    District Judge: Hon. Lawrence F. Stengel
    _______________
    Submitted Under Third Circuit LAR 34.1(a)
    June 29, 2012
    Before: SLOVITER, CHAGARES, and JORDAN, Circuit Judges.
    (Filed: July 6, 2012)
    _______________
    OPINION OF THE COURT
    _______________
    JORDAN, Circuit Judge.
    Martin Gross appeals the order of the United States District Court for the Middle
    District of Pennsylvania dismissing his civil rights claims under 
    42 U.S.C. §§ 1981
     and
    1983, as well as his state law claims alleging breach of contract and breach of the duty of
    good faith and fair dealing. Although Gross‟s Amended Complaint fails to satisfy the
    pleading standards set forth in Federal Rule of Civil Procedure 8, we will remand to
    allow the District Court to determine in the first instance whether it should grant Gross
    leave to further amend, or whether such amendment would be futile or inequitable.
    I.     Background
    A.     Facts1
    Defendant Harrisburg University of Science and Technology (“the University”) is
    a private institution registered with the Pennsylvania Department of Education.          It
    receives public funding and is subject to state and federal regulation. Defendant Eric
    Darr is the President of the University. Defendant R.T. Reynolds, Inc. (“Reynolds”) is a
    Pennsylvania corporation and the general contractor for a construction project at the
    University. Defendants Ike Sholley, Wayne Spahr, Ron Whisker, Todd Buzard, and
    Dave Angle are Reynolds‟s officers, employees, or agents. The University‟s construction
    project “received extensive federal, state, and/or local funding, was subject to public
    procurement requirements and standards, and reporting requirements, including …
    1
    In reviewing a district court‟s decision to grant a motion to dismiss under Federal
    Rule of Civil Procedure 12(b)(6), we “accept as true all well-pled factual allegations in
    the complaint, and view them in the light most favorable to the plaintiff.” Marcavage v.
    Nat’l Park Serv., 
    666 F.3d 856
    , 858 (3d Cir. 2012).
    2
    [reporting pertinent to] the City of Harrisburg‟s disadvantaged business program for
    minority and women owned businesses.”2 (Amend. Compl. ¶ 13.)
    Gross (doing business as “The Art I Do”3) and his colleague James White, both of
    whom are African-American, submitted a proposal to Reynolds to perform painting in
    connection with Reynolds‟s construction work at the University. Defendants Whisker
    and Spahr allegedly solicited Gross to work on the construction project, negotiated with
    him on behalf of Reynolds, and were “involved in the contract management matters
    throughout the performance of the contract.” (Amend. Compl. ¶ 17.)
    According to Gross, Reynolds was initially apprehensive about doing business
    with him and White, based on its past dealings with them. Specifically, Reynolds was
    hesitant to work with Gross and White because it had worked with them on a mold-
    abatement project in 2005 and, during that project, Gross and White had “refused to
    become complicit in an effort to conceal the … scope of the mold problem.” (Id. ¶ 22.)
    As Gross tells it, when he and White refused to conceal that problem, “Reynolds was
    forced to make significant additional expenditures” on the 2005 project. (Id.)
    Despite Reynolds‟s initial hesitance, however, it entered a subcontracting
    agreement with Gross and White on May 7, 2007. Reynolds hired Dellanor Young, a
    consultant, to oversee “the disadvantaged business provisions of … [that] contract.” (Id.
    2
    Under the City of Harrisburg‟s (“the City”) disadvantaged business program,
    contractors who submitted bids for general construction projects in the City received
    points for soliciting and using businesses owned by minorities and women.
    3
    The Amended Complaint alleges that The Art I Do is a certified disadvantaged
    business under the City‟s disadvantaged business program.
    3
    ¶ 15.) Under the agreement,4 Gross and White promised to provide Reynolds with
    painting services. The agreement also stated that Reynolds could reduce the scope of
    Gross‟s duties under the contract and require Gross to subcontract with other vendors to
    perform some of his contractual duties.         It also provided that Reynolds was not
    responsible for any unexpected delays in the construction project. Gross claims that the
    agreement also required him to secure financing from Defendant Graystone Bank
    (“Graystone”), to ensure that The Art I Do could satisfy its payroll expenses and other
    costs associated with performing under the contract while Reynolds was in the process of
    making payments.      Gross alleges that, unlike other similarly situated non-minority
    contractors who entered into financing agreements with Graystone, he was required “to
    grant Graystone a mortgage on [his] personal residence … .” (Id. ¶ 37.)
    Gross points to a series of events during the formation and performance of the
    agreement which, according to him, demonstrate that Reynolds intended to discriminate
    against him on the basis of race. First, he claims that, at the time he executed the
    agreement with Reynolds, “Reynolds knew that it would not perform certain aspects of
    [the] contract … but proceeded to” execute the agreement in order to enhance its position
    in the bidding process for construction work at the University. (Id. ¶ 19.) Second, he
    4
    Although Gross did not attach a copy of the agreement to the Amended
    Complaint, Reynolds attached a copy of it to its motions to dismiss. Because there is no
    dispute as to the authenticity of the agreement, and the precise terms are integral to our
    analysis, we may consider it in assessing the merits of Gross‟s appeal. See Pension
    Benefit Guaranty Corp. v. White Consol. Indus., Inc., 
    998 F.2d 1192
    , 1196 (3d Cir. 1993)
    (“We … hold that a court may consider an undisputedly authentic document that a
    defendant attaches as an exhibit to a motion to dismiss if the plaintiff‟s claims are based
    on the document.”).
    4
    claims that “[e]arly in the performance of the contract, it became apparent that work
    delays would not permit [Reynolds] to be able to commence and end its work as
    contemplated by the contract” (id. ¶ 24), and that Reynolds‟s employees “sabotaged” his
    work schedule “by showing favoritism and granting preferences to other non-minority
    contractors.” (Id. ¶ 33.) Third, he alleges that, although his duties under the agreement
    included installing wood veneer in a building at the University, “Reynolds arbitrarily
    decided to remove the veneer job from the scope of [Gross‟s] work … and to give it to
    another contractor … .” (Id. ¶ 39.) Fourth, Gross alleges that, on January 17, 2008, Ike
    Sholley, a Reynolds employee, sent him a letter demanding that he remove White from
    the University construction project, and that Sholley made that demand for
    “discriminatory and retaliatory reasons[] relating to Mr. White‟s race … .” (Id. ¶ 28.)
    Finally, Gross claims that Reynolds demonstrated its “favoritism … to … non-minority
    contractors,” by selecting D.E. Gimmell, Inc. (“Gimmell”), another subcontractor, to
    perform parking lot line painting for the construction project even though he originally
    bid on that work, and that Reynolds required him to compensate Gemmill when it
    completed the painting. (Id. ¶ 33.)
    On several occasions, White complained to Reynolds or the University about the
    allegedly discriminatory behavior of Reynolds and its employees. In early 2008, White
    wrote a letter to an official at the University complaining that minority contractors
    received unequal treatment during the performance of their duties in connection with the
    construction project at the University, and Gross made several written and oral
    complaints to Reynolds about the work delays. Although those letters and complaints did
    5
    not fix his predicament with Reynolds and its employees, Gross alleges that his working
    relationship with the company improved in March 2008, after he hired a non-minority
    foreman.
    Gross asserts that, although he completed all of his contractual obligations by
    April 2009, Reynolds failed to pay him from $88,000 to $120,000 it owed him under the
    terms of the agreement.5
    B.     Procedural History
    Based on the conduct described above, Gross initiated this lawsuit against
    Reynolds, the University, Darr, Young, Graystone, Gimmell, Sholley, Spahr, Whisker,
    Buzard, and Angle (collectively, “Defendants”), asserting claims under 
    42 U.S.C. §§ 1981
     and 1983, as well as state law claims of breach of contract and breach of the
    implied duty of good faith and fair dealing.     All Defendants moved to dismiss the
    Amended Complaint. On September 22, 2011, the District Court issued an opinion and
    order dismissing Gross‟s federal claims against each of the Defendants.6       Having
    dismissed the federal claims, the Court declined to exercise supplemental jurisdiction
    over Gross‟s state law claims under 
    28 U.S.C. § 1367
    (c)(3).
    This timely appeal followed.
    5
    Although the Amended Complaint states that Reynolds failed to “Reynolds is …
    obligated to pay the Art I Do … $88,000 - $120,000,” (Amend. Compl. ¶ 50), Gross‟s
    appellate brief states that “Reynolds is … obligated to pay the Art I Do … $90,000,”
    (Appellant‟s Br. at 12.)
    6
    The District Court also dismissed Eloise Gross as a Plaintiff. We affirm that
    dismissal as the Amended Complaint contains no allegations indicating that Eloise Gross
    was involved in any of the transactions or occurrences giving rise to this lawsuit.
    6
    II.    Discussion7
    On appeal, Gross argues that the District Court erred by dismissing the Amended
    Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). Our review of that
    decision is plenary. Fowler v. UPMC Shadyside, 
    578 F.3d 203
    , 206 (3d Cir. 2009). We
    take as true all the factual allegations in the Amended Complaint and the reasonable
    inferences that can be drawn from those facts, Sheridan v. NGK Metals Corp., 
    609 F.3d 239
    , 262 n.27 (3d Cir. 2010), but we disregard legal conclusions and “[t]hreadbare
    recitals of the elements of a cause of action, supported by mere conclusory statements,”
    Ashcroft v. Iqbal, 
    556 U.S. 662
    , 678 (2009).         “To survive a motion to dismiss, a
    complaint must contain sufficient factual matter, accepted as true, to state a claim to relief
    that is plausible on its face.” Sheridan, 
    609 F.3d at
    262 n.27 (citation and internal
    quotation marks omitted). “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.” 
    Id.
     (citations and internal quotation marks omitted).
    A.     Gross’s § 1981 Claims Against Reynolds and Its Employees
    We begin by addressing Gross‟s § 1981 claims against Reynolds and its
    employees. The District Court held that the Amended Complaint failed to allege facts
    sufficient to state a plausible § 1981 claim against any of those Defendants. We agree.
    Section 1981 provides that:
    All persons within the jurisdiction of the United States shall
    have the same right in every State and Territory to make and
    7
    The District Court had jurisdiction pursuant to 
    28 U.S.C. §§ 1331
     and 1367. We
    have jurisdiction under 
    28 U.S.C. § 1291
    .
    7
    enforce contracts, to sue, be parties, give evidence, and to the
    full and equal benefit of all laws and proceedings for the
    security of persons and property as is enjoyed by white
    citizens, and shall be subject to like punishment, pains,
    penalties, taxes, licenses, and exactions of every kind, and to
    no other.
    
    42 U.S.C. § 1981
    (a). To state a claim under § 1981, a party must allege facts sufficient to
    show: “(1) [he] is a member of a racial minority; (2) intent to discriminate on the basis of
    race by the defendant; and (3) discrimination concerning one or more of the activities
    enumerated in the statute[,] which includes the right to make and enforce contracts … .”
    Brown v. Philip Morris, Inc., 
    250 F.3d 789
    , 797 (3d Cir. 2001) (citation and internal
    quotation marks omitted).
    Accepting as true the averments in the Amended Complaint, we conclude that
    Gross has failed to allege a plausible claim of intentional discrimination on the basis of
    race against Reynolds and its employees under § 1981. While the Amended Complaint
    alleges an abundance of wrongdoing by Reynolds and its employees, it fails to allege any
    facts supporting the conclusion that those acts were motivated by discrimination on the
    basis of race.   Instead, it alleges a series of unfortunate events and then states, in
    conclusory fashion, that the reason for those events is that Reynolds harbored
    discriminatory animus towards Gross or White.           For example, Gross alleges that
    Reynolds‟s employees “sabotaged” his work schedule “by showing favoritism and
    granting preferences to other non-minority contractors,” and delayed the construction
    project. (Amend. Compl. ¶ 33.) However, Gross fails to allege how Reynolds treated
    non-minority contractors any differently than it treated him, or how delays in the
    8
    construction project were motivated by or related to Gross‟s race.8 Gross also claims that
    Sholley sent him a letter demanding that he remove White from the University
    construction project, and that Sholley did so for “discriminatory and retaliatory reasons[]
    relating to Mr. White‟s race … .” (Id. ¶ 28.) But, once again, Gross alleges no facts
    supporting that conclusion. So too with Gross‟s averments that Reynolds removed the
    veneer work from the agreement and required him to retain and compensate Gemmill for
    work which Gross “originally bid on but was deleted from the scope of work.” (Id. ¶ 42.)
    Even if that conduct constituted a breach of the agreement, Gross fails to allege facts
    supporting the inference that Reynolds took those actions for discriminatory reasons.9
    8
    It is not immediately apparent why the hiring of a white foreman by a minority
    subcontractor would make a racist contractor more inclined to treat the minority
    subcontractor better, but even if that were true, Rule 8 requires more than mere
    speculation. A plaintiff must plead facts sufficient to “raise a right to relief above the
    speculative level.” Bell Atl. Corp. v. Twombly, 
    550 U.S. 544
    , 555 (2009). Thus, without
    more, the fact that Gross‟s and Reynolds‟s relationship improved after Gross hired a non-
    minority foreman does not give rise to a reasonable inference that Reynolds intended to
    discriminate against Gross on the basis of race.
    9
    The agreement expressly gives Reynolds the authority to take those actions, and
    Gross fails to allege any facts suggesting that Reynolds exercised that authority for
    discriminatory reasons. (See App. at 112 (providing “[t]he Subcontractor may be ordered
    in writing by the Contractor, without invalidating this Subcontract, to make changes in
    the Work within the general scope of this Subcontract consisting of additions, deletions
    or other revisions … .”); 
    id. at 107
     (providing that “[t]he Contractor may require the
    Subcontractor to enter into agreements with Sub-subcontractors performing portions of
    the Work of this Subcontract by which the Subcontractor and the Sub-subcontractor are
    mutually bound, to the extent of the Work to be performed by the Sub-subcontractor …
    .”).)
    9
    Therefore, because the Amended Complaint fails to allege facts sufficient to state
    a plausible § 1981 claim against Reynolds and its employees, the District Court properly
    dismissed Gross‟s § 1981 claims against those defendants.10
    B.     Gross’s § 1981 Claims Against the University and Darr
    The District Court also dismissed the § 1981 claims against the University and
    Darr because they were not parties to a contract with Gross, and the factual allegations in
    the Amended Complaint did not support a reasonable inference that they interfered with a
    contract between Reynolds and Gross. We agree with that considered judgment.
    Section 1981 prohibits discrimination on the basis of race in the “mak[ing] and
    enforc[ing][of] contracts.” 
    42 U.S.C. § 1981
    (b). The statute defines the “mak[ing] and
    enforc[ing] [of] contracts” as “the making, performance, modification, and termination of
    contracts, and the enjoyment of all benefits, privileges, terms, and conditions of the
    contractual relationship.” 
    Id.
     Consistent with that language, the Supreme Court has held
    that “Section 1981 offers relief when racial discrimination blocks the creation of a
    contractual relationship, as well as when racial discrimination impairs an existing
    contractual relationship, so long as the plaintiff has or would have rights under the
    existing or proposed contractual relationship.” Domino’s Pizza, Inc. v. McDonald, 
    546 U.S. 470
    , 476 (2006).
    Here, the Amended Complaint does not allege that Gross “has or would have
    rights under [an] existing or proposed contractual relationship” with the University or
    10
    On August 15, 2011, the District Court issued an order dismissing with
    prejudice all claims against Gemmill based on Gross‟s stipulation to that effect.
    10
    Darr. 
    Id.
     Thus, in order to state a claim against the University and Darr, Gross must
    allege that they blocked him from creating a contractual relationship with Reynolds or
    another third party, or impaired a contractual relationship that existed between him and a
    third party. The Amended Complaint contains no such allegations. With respect to Darr,
    the Amended Complaint alleges that he “approached [Gross] and made inquiries into the
    nature of [Gross‟s] relationship with Reynolds,” and that Gross had the impression that,
    based on Darr‟s inquiries, “[he] was trying to learn things from [Gross] surreptitiously …
    .” (Amend. Compl. ¶ 26.) As to the University, the Amended Complaint alleges vaguely
    that, along with all of the other Defendants, it “knowingly subjected [Gross] to disparate
    treatment in the management of his subcontract because he is a minority.” (Id. ¶ 48.)
    None of those allegations supports a reasonable inference that, for reasons related
    to race, the University or Darr impaired the creation or performance of a contract to
    which Gross was a party. First, the vague allegation that Darr was “trying to learn things
    surreptitiously” provides no indication that his inquiries were racially motivated or
    designed to interfere with Gross‟s contract with Reynolds. Moreover, Gross‟s assertion
    that the University “knowingly subjected him to disparate treatment … because he is a
    minority” is nothing more than a legal conclusion couched as a factual allegation, which,
    under Rule 8, is insufficient to defeat a motion to dismiss. See Baraka v. McGreevey,
    
    481 F.3d 187
    , 195 (3d Cir. 2007) (noting that on motion to dismiss court is “not
    compelled to accept unsupported conclusions and unwarranted inferences, or a legal
    conclusion couched as a factual allegation” (citations and internal quotation marks
    omitted)). Therefore, we agree with the District Court‟s decision to dismiss Plaintiff‟s
    11
    § 1981 claims against the University and Darr.
    C.     Gross’s § 1981 Claims against Young and Graystone Bank
    We also agree with the District Court‟s determination that Gross failed to allege
    facts sufficient to state a plausible § 1981 claim against Young and Graystone. With
    respect to Young, the Amended Complaint alleges in conclusory fashion that, although
    Young was “charged with the responsibility of monitoring the disadvantaged business
    provisions of the bid documents and the contract” (Amend. Compl. ¶ 15), she
    “knowingly worked with Reynolds to conceal the” fact that “Reynolds was failing to
    meet its commitments to [Gross] and perhaps other minority contractors,” and did not
    “work toward contractual or extra-contractual remedies for [those] failures,” (id. ¶ 31.)
    However, as the District Court correctly noted, the Amended Complaint fails to allege
    anything Young did to conceal those problems or how she monitored the project in a
    manner that gives rise to the reasonable inference that she intended to discriminate
    against Gross on the basis of race.11
    The Amended Complaint also fails to state a § 1981 lending discrimination claim
    against Graystone. To make a prima facie lending discrimination claim, Gross must
    show
    (1) that he belongs to a protected class, (2) that he applied and
    was qualified for credit that was available from the defendant,
    (3) that his application was denied or that its approval was
    made subject to unreasonable or overly burdensome
    11
    Indeed, even assuming that Young was negligent by failing to adequately
    monitor the construction project, and concealed the fact that Reynolds failed to meet its
    contractual obligations, Gross does not allege facts supporting the inference that Young
    acted for reasons related to race.
    12
    conditions, and (4) that some additional evidence exists that
    establishes a causal nexus between the harm suffered and the
    plaintiff‟s membership in a protected class, from which a
    reasonable juror could infer, in light of common experience,
    that the defendant acted with discriminatory intent.
    Anderson v. Wachovia Mortg. Corp., 
    621 F.3d 261
    , 275 (3d Cir. 2010). The Amended
    Complaint does not allege that Gross was qualified for an unsecured line of credit, or that
    the requirement of a mortgage on his property was unreasonable or overly burdensome.
    Moreover, Gross‟s naked assertion that Graystone did not require other similarly situated
    non-minority customers to secure their loans with a home mortgage does not suffice to
    satisfy Rule 8‟s pleading standard. See Iqbal, 
    556 U.S. at 678
     (“Nor does a complaint
    suffice if it tenders „naked assertion[s]‟ devoid of „further factual enhancement.‟”
    (quoting Twombly, 550 U.S. at 557)). Accordingly, we agree with the District Court‟s
    conclusion that the Amended Complaint fails to state a § 1981 lending discrimination
    claim against Graystone.
    D.        Gross’s § 1983 Claims Against All Defendants
    Finally, the District Court dismissed Gross‟s § 1983 claims based on its
    determination that the Amended Complaint failed to allege that any of the Defendants
    acted under the color of state law. We find no error in that determination. Section 1983
    provides that:
    Every person who, under color of any statute, ordinance,
    regulation, custom, or usage, of any State or Territory or the
    District of Columbia, subjects, or causes to be subjected, any
    citizen of the United States or other person within the
    jurisdiction thereof to the deprivation of any rights,
    privileges, or immunities secured by the Constitution and
    13
    laws, shall be liable to the party injured in an action at law,
    suit in equity, or other proper proceeding for redress … .
    
    42 U.S.C. § 1983
    . It is well-settled that, “to state a claim of liability under § 1983, [the
    plaintiff] must allege that [he] was deprived of a federal constitutional or statutory right
    by a state actor.” Leshko v. Servis, 
    423 F.3d 337
    , 339 (3d Cir. 2005).
    That requirement is fatal to Plaintiff‟s § 1983 claim. The Amended Complaint
    contains no facts supporting a reasonable inference that Graystone, Reynolds, Reynolds‟
    employees, Gemmill, or Young are state actors. With respect to the University, the
    Amended Complaint suggests that because the University “was funded in large part by
    public monies” and is subject to “state … laws governing public procurement,” it is a
    state actor under § 1983. (Amend. Compl. at 2.) However, a private entity does not
    become a state actor for the purpose of § 1983 simply because it is subject to state
    regulations or receives funding from the state. See Rendell-Baker v. Kohn, 
    457 U.S. 830
    ,
    840 (1982) (holding that nonprofit, private “school‟s receipt of public funds does not
    make [its] discharge decisions acts of the State”); Blum v. Yaretsky, 
    457 U.S. 991
    , 1011
    (1982) (rejecting claim that nursing home was state actor even though state subsidized
    the operating and capital costs of the nursing home facilities, paid the medical expenses
    of more than 90% of the patients in the home, and licensed the nursing home‟s facilities).
    Instead, in determining whether conduct is attributable to the state or a private entity, we
    ask “whether there is such a close nexus between the State and the challenged action that
    seemingly private behavior may be fairly treated as that of the State itself.” Leshko, 
    423 F.3d at 339
     (citations and internal quotation marks omitted).        Here, aside from the
    14
    allegations that the University receives “public monies” and is subject to state regulation,
    the Amended Complaint is devoid of any factual allegations supporting a reasonable
    inference that the University is a state actor.           And because the University is not
    adequately alleged to be a state actor, it is not subject to liability under § 1983. Finally,
    because the University is not a state actor, and the Amended Complaint provides no
    indication that Darr is a state actor, he is not subject to liability under § 1983.
    In sum, because the Amended Complaint fails to allege that any of the Defendants
    are state actors, the District Court appropriately dismissed Plaintiff‟s § 1983 claims.12
    D.     Leave to Amend
    Gross also argues that the District Court erred by dismissing the Amended
    Complaint without granting him leave to amend. That may be true, but it is difficult to
    discern what happened in the District Court in this regard. We cannot tell from the
    parties‟ submissions what, if anything, was communicated to Gross to show either that he
    had leave to file a second amended complaint or to say that amendment would be futile.
    The District Court dismissed the Amended Complaint without commenting on whether
    the dismissal was with prejudice. Nevertheless, the parties have treated the dismissal at
    issue here as being with prejudice, and, since the case appears to have been closed on the
    District Court‟s docket, we will treat it that way too.
    12
    Because Plaintiff does not argue that the District Court abused its discretion by
    dismissing their pendent state law claims, we do not consider that issue on appeal. See
    Nagle v. Alspach, 
    8 F.3d 141
    , 143 (3d Cir. 1993) (noting that “[w]hen an issue is either
    not set forth in the statement of issues presented or not pursued in the argument section of
    the brief, the appellant has abandoned and waived that issue on appeal”).
    15
    Under our precedent, “if a complaint is subject to a Rule 12(b)(6) dismissal, a
    district court must permit a curative amendment unless such an amendment would be
    inequitable or futile.” Phillips v. Cnty. of Allegheny, 
    515 F.3d 224
    , 245 (3d Cir. 2008).
    Here, it appears that amendment may be futile with respect to at least some of the claims
    against some of the Defendants. For example, Graystone asserts in its brief that Gross‟s
    claims against it are barred by the statute of limitations. If true, that would render
    amendment futile with respect to the claims against it. Also, the Amended Complaint
    acknowledges that the University is a “private educational institution” (Amend. Compl.
    at 2), and it is not at all clear that Gross can say anything to show that the University had
    the kind of relationship with the state that would give rise to an inference that the
    University should be considered a state actor under § 1983.           It thus may be that
    amendment of that claim as to the University and its President would be futile.
    The futility or inequitableness of amendment may affect more than those two
    examples, but we will not endeavor to determine that now. Those are questions for the
    District Court to address in the first instance. As we said in Phillips, “even when [a]
    plaintiff does not seek leave to amend his complaint after a defendant moves to dismiss it,
    unless the district court finds that amendment would be inequitable or futile, the court
    must inform the plaintiff that he or she has leave to amend the complaint within a set
    period of time.” 
    515 F.3d at 245
    . The District Court does not appear to have done that
    here. Thus, we remand for the District Court to determine and explain in the first
    instance whether leave to amend should be granted or whether further amendment would
    be futile or inequitable.
    16
    III.   Conclusion
    For the foregoing reasons, we will vacate and remand.
    17