Rover Pipeline LLC v. Amy Zwick ( 2022 )


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  •                          NOT RECOMMENDED FOR PUBLICATION
    File Name: 22a0486n.06
    Case No. 22-3370
    UNITED STATES COURT OF APPEALS
    FOR THE SIXTH CIRCUIT
    FILED
    Nov 30, 2022
    )
    ROVER PIPELINE LLC,                                                     DEBORAH S. HUNT, Clerk
    )
    Plaintiff-Appellant,                           )
    )
    ON APPEAL FROM THE
    v.                                                     )
    )        UNITED STATES DISTRICT
    )        COURT FOR THE SOUTHERN
    AMY M. ZWICK, Monroe County, Ohio                      )        DISTRICT OF OHIO
    Engineer, in her official capacity, et al.,            )
    Defendants-Appellees.                          )                             OPINION
    )
    Before: CLAY, GIBBONS, and McKEAGUE, Circuit Judges.
    McKEAGUE, Circuit Judge.              Plaintiff-Appellant Rover Pipeline LLC (“Rover”)
    contracted with Defendant-Appellee Monroe County, Ohio, to access county roads with its
    equipment and vehicles. When the county engineer believed Rover violated that contract by
    excessively damaging the roads, she issued a cease-work order. Rover alleges that the issuance
    and enforcement of that order violated its constitutional rights. Rover also appeals the district
    court’s dismissal of its state-law claims without prejudice after declining to exercise supplemental
    jurisdiction.   At bottom, this is a breach of contract dispute that has spawned numerous
    complicated constitutional challenges, none of which has merit. We affirm.
    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    I.
    Rover is an interstate natural gas pipeline company. The issues that give rise to this suit
    occurred during the construction of an approximately 4.2-billion-dollar pipeline project traversing
    multiple states and counties, including Monroe County, Ohio.
    Natural gas projects often require the use of heavy construction vehicles and equipment,
    which can damage roads. Rover’s representatives met with Defendant-Appellee Monroe County
    Engineer’s Department in an attempt to obtain hauling and crossing permits to enable it to use the
    roads. Rover alleges that the county engineer refused to issue permits unless Rover signed the
    County’s Road Use Maintenance Agreement.              A Road Use Maintenance Agreement is an
    agreement between a local government and private party that provides for road repair and
    maintenance when the private party damages a political subdivision’s roads.
    At the time of the events in this case, Monroe County had entered into nearly 180 road use
    maintenance agreements with other private companies, and Rover had entered road use
    maintenance agreements with “dozens” of cities, counties, and townships for this pipeline project.
    Additionally, Rover submitted a Residential Access and Traffic Mitigation Plan as part of its
    application to the Federal Energy Regulatory Commission to begin the pipeline project, in which
    Rover agreed to “enter into Road Use and Management Agreements with all state, county, and
    municipal regulatory entities to ensure that the roadways utilized during construction of the Project
    are returned to an as good as or better condition than they were prior to construction.” Nonetheless,
    Rover maintains that it entered the Road Use Maintenance Agreement with Monroe County under
    duress because it had to keep the pipeline project on schedule.
    Months after the parties signed the Road Use Maintenance Agreement, Defendant-
    Appellee County Engineer Amy Zwick determined that four roads were excessively damaged, due
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    in part to Rover’s use.1 She discussed the damaged roads with Rover. Monroe County Oil and
    Gas Coordinator and Highway Supervisor, Defendant-Appellee Brian Kress, even drove a Rover
    representative through the county to examine the roads. According to Zwick, there was “a lot of
    talk, but little action.”
    On October 27, 2017, Kress emailed Rover to let it know that one of the roads had
    worsened to emergency conditions. A few days later, Zwick emailed Rover an Emergency Repair
    Notification, and sought legal advice about the situation from the Monroe County Prosecuting
    Attorney. The Road Use Maintenance Agreement provides in relevant part:
    If during the pipeline construction, road damage becomes excessive in nature, as
    reasonably determined by the County or Township, the applicant will make
    additional improvements to strengthen the road base and surface immediately upon
    written notice from the County Engineer or Township Trustees. All work accessed
    by said road will cease until repairs are done to correct the problem.
    R. 80-2, PID 5079. The Prosecuting Attorney advised Zwick that under the agreement “the
    County has the right to, and should, immediately prevent the companies’ access to the affected
    roadways.” R. 69-1, PID 3427. Zwick then emailed a cease-work letter to Rover.
    The next day, Zwick sent Kress and Defendant-Appellee Monroe County Sheriff’s Deputy
    Russell Blamble to four of Rover’s worksites with a copy of the cease-work order. Deputy
    Blamble was told he was there to make sure Kress did not get hurt during the process, and to keep
    the peace. The two visited the four designated work sites, two of which were unoccupied.
    At the Ozark Eddy Bridge site, Kress told a foreman that the workers needed to leave the
    site. Deputy Blamble reports that he did not speak with anyone directly, but that he did tell
    everyone generally that they needed to “move along” because things were taking too long.
    1
    Rover and two other companies, EQT Corporation and TransCanada Corporation, were all held jointly liable for the
    damage to the road.
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    At the next stop, the Boltz Hill Road site, Kress similarly shared the cease-work news in
    an attempt to clear the site. At that site, Deputy Blamble also reports that, when asked by workers
    what would happen if they did not leave, he responded that they risked a charge of disorderly
    conduct, but that the ultimate decision on whether they would be charged would be left with his
    supervisor. One of the workers recalls the Boltz Hill Road site events differently, and testified that
    at the site:
    [Deputy Blamble] just told me that we had to vacate the right-of-way; that someone
    hadn’t secured the permits or a permit had expired or something and that we could
    not be there. We had to vacate the premises, and if he caught any of us on that road
    again that day, he was going to arrest us.
    Rager Dep., R. 62, PID 1291. Ultimately the site was cleared and no one was arrested.
    Rover filed suit and a motion for a temporary restraining order (TRO) the day after Kress
    and Deputy Blamble visited the construction sites. The district court granted the TRO four days
    later, enjoining Appellees from “interfering with or otherwise obstructing Rover, its agents,
    contractors and/or representatives from accessing and/or driving on the Public Roads, and . . . from
    forcibly removing, or otherwise causing to be removed, Rover from its own private property and/or
    barring Rover’s access to the same.” Then the parties settled that action and filed a stipulation of
    dismissal without prejudice. But, following that dismissal, Appellees moved for a TRO, alleging
    that Rover never furnished agreed upon funds. The district court granted Appellees’ TRO.
    Rover then filed the suit giving rise to this appeal. Rover alleges that Appellees violated
    its constitutional rights and the rights of its workers and breached the Road Use Maintenance
    Agreement. Both parties filed motions for summary judgment. The district court denied Rover’s
    motion for summary judgment and granted in part Appellees’ motion. The district court denied
    Appellees’ motion insofar as it required ruling on the breach of contract claims, as it chose not to
    exercise supplemental jurisdiction over those claims, and instead dismissed those claims without
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    prejudice. Appellees had numerous qualified immunity arguments that the district court chose not
    to address because it found “substantial other grounds to grant [Appellees] summary judgment.”
    R. 94, PID 5369. The district court similarly “[set] aside [Appellees’] arguments on standing.” Id.
    at 5388. Rover appealed.
    II.
    We review a district court’s grant of summary judgment de novo, viewing the evidence in
    the light most favorable to the non-movant. Fisher v. Nissan N. Am., Inc., 
    951 F.3d 409
    , 416 (6th
    Cir. 2020) (citing Anderson v. Liberty Lobby, Inc., 
    477 U.S. 242
    , 255 (1986)). Summary judgment
    is appropriate when there are no genuine issues of material fact and a party must prevail as a matter
    of law. Id.; Fed. R. Civ. P. 56(a). Because the parties have filed cross-motions for summary
    judgment, we “evaluate each motion on its own merits and view all facts and inferences in the light
    most favorable to the nonmoving party.” Appoloni v. United States, 
    450 F.3d 185
    , 189 (6th Cir.
    2006) (citing Westfield Ins. Co. v. Tech Dry, Inc., 
    336 F.3d 503
    , 506 (6th Cir.2003)).
    Before turning to address each of Rover’s claims, a note about standing is warranted. For
    its Fourth Amendment, false arrest, and Equal Protection claims,2 Rover details injury suffered by
    the violation of the workers’ rights, not its own. It was Rover’s workers, not Rover itself, who
    were allegedly seized in violation of the Fourth Amendment/subjected to false arrest when they
    were forced to leave the property by the deputy. It was Rover’s workers who were allegedly
    discriminated against in violation of equal protection when they were barred from using the public
    2
    Appellees explicitly challenge only the prudential standing of Rover to bring its Fourth Amendment claim. But that
    argument applies with equal force to these other claims, which are claims of its workers, not Rover itself. While there
    is a circuit split on this issue, see Potter v. Cozen & O’Connor, 
    46 F.4th 148
    , 155 (3d Cir. 2022) (detailing split), under
    the rule of this circuit we may address prudential standing issues sua sponte. See Fair Elections Ohio v. Husted, 
    770 F.3d 456
    , 461 n.2 (6th Cir. 2014). We see no reason not to do so here, as the issue is already briefed regarding the
    Fourth Amendment claim and there are no material differences between that claim and the rest of the listed claims in
    terms of the third-party standing analysis.
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    roads to travel to Rover, not Rover as an entity. In its Reply Brief, Rover attempted to clarify that
    the civil rights claims are its own, “as the possessor and titleholder of the affected private property
    and commercial construction sites,” not its employees’. Reply Br. at 5. But Rover’s Fourth
    Amendment seizure, false arrest, 3 and Equal Protection4 claims are not related to property rights.
    They are individual rights belonging to the employees. And Rover has not pointed to any authority
    stating that an employer may assert the individual constitutional claims/rights of its employees as
    its own claims, rather than via third-party standing.
    Rover also argues that it can bring claims of third parties, specifically its workers who are
    its “guests and business licensees.” Id. at 8. This is problematic, because a party “generally must
    assert his own legal rights and interests, and cannot rest his claim to relief on the legal rights or
    interests of third parties.” Warth v. Seldin, 
    422 U.S. 490
    , 499 (1975). Section 1983 specifically
    grants a cause of action “to the party injured,” Jaco v. Bloechle, 
    739 F.2d 239
    , 241 (6th Cir. 1984)
    (quoting 
    42 U.S.C. § 1983
    ), and ordinarily standing does not exist to vindicate the constitutional
    rights of a third-party. Smith v. Jefferson Cnty. Bd. of Sch. Comm’rs, 
    641 F.3d 197
    , 208 (6th Cir.
    2011) (en banc). Third party standing is limited to cases where (1) “the party asserting the right
    has a ‘close’ relationship with the person who possesses the right” and (2) “there is a ‘hindrance’
    to the possessor’s ability to protect his own interests.” Kowalski v. Tesmer, 
    543 U.S. 125
    , 130
    3
    Rover does not allege that the officer’s entry onto its land was an unconstitutional search or seizure of its
    land/property, only an unconstitutional seizure/false arrest of its employees. And employees, of course, are not
    property, and Rover does not argue that they are. Cf. Seale v. Peacock, 
    32 F.4th 1011
    , 1028 (10th Cir. 2022) (“[T]o
    the extent [the plaintiff] argues he lost clients and employees, people are not property or things that can be the subject
    of a civil theft claim.” (citing Property, BLACK’S LAW DICTIONARY (11th ed. 2019))). Rover speaks only in terms of
    the employees’ individual Fourth Amendment rights to not be “removed from Rover’s private property by a show of
    authority . . . against their will.” Appellant’s Br. at 30. Thus, there is no sound argument that Rover may assert the
    employees’ individual constitutional claims as its own simply because of the employer-employee relationship.
    4
    Rover argues that its “employees, agents, representatives, contractors, and workers were unlawfully barred from
    using the public roadways of the State of Ohio to travel to their place of employment by Appellees” in violation of
    “their right to equal protection under the law.” Appellant’s Br. at 35, 37 (emphasis added).
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    (2004) (quoting Powers v. Ohio, 
    499 U.S. 400
    , 411 (1991). The Supreme Court has been reluctant
    to recognize third-party standing claims outside of the First Amendment context and contexts
    where “enforcement of the challenged restriction against the litigant would result indirectly in the
    violation of third parties’ rights,” id. at 130 (quoting Warth, 
    422 U.S. at 510
    ), neither of which is
    relevant here.
    We assume without deciding that Rover has a “close” relationship with its workers. Cf. id.
    at 139 (Ginsburg, J., dissenting) (explaining that the Court has found a close relationship “when
    nothing more than a buyer-seller connection was at stake”)5; but see Region 8 Forest Serv. Timber
    Purchasers Council v. Alcock, 
    993 F.2d 800
    , 810 (11th Cir. 1993) (“In cases allowing third-party
    standing, the relationship between the party asserting the right and the third party has been
    characterized by a strong identity of interests which is absent in an employer/employee
    relationship.”).
    But the hindrance prong defeats Rover’s argument. Rover relies solely on the allegation
    that the workers who were allegedly unconstitutionally seized/subjected to false arrest are
    financially disincentivized from suing themselves due to the “absence of damages and the costs of
    vindicating their rights.” Reply Br. at 8–9. Specifically, Rover points to the fact that, due to
    contractual obligations, those workers were paid anyway, despite being forced to leave their
    jobsite. In other words, those workers “may actually have obtained an inadvertent pecuniary
    benefit from Appellees’ unlawful actions because they were paid for more days than it would have
    otherwise taken to complete their work had Appellees’ [sic] not detained and removed them from
    Rover’s private property and construction sites.” Id. at 10. But Rover points to no affirmative
    5
    However, we note that this statement comes from a case involving direct regulation of the litigant, a posture in which,
    as stated, the Supreme Court has been much more receptive to third-party standing. See Kowalski, 
    543 U.S. at 130
    .
    This is not the posture of this case.
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    obstacle preventing the workers from suing on their own behalf, and none is apparent from the
    record. Typically, third-party standing has been found appropriate in the face of concerns such as
    “deterrence from filing suit due to privacy concerns, imminent mootness of a case, or systemic
    practical challenges to pursuing one’s own rights.” Moody v. Mich. Gaming Control Board, 
    847 F.3d 399
    , 402 (6th Cir. 2017). There is no evidence that the workers’ claims involve any of those
    issues. See Smith, 
    641 F.3d at 209
    .
    The cases in which the Supreme Court has recognized third-party standing are thus vastly
    different from this one and involve more than just potential financial disincentive. In Singleton v.
    Wulff, doctors challenged the exclusion of abortions from Medicaid coverage; the third parties
    whose rights were actually affected by that restriction (pregnant women) faced deterrents to suit
    including a desire for privacy regarding such a sensitive medical procedure and mootness due to
    the end of pregnancy. 
    428 U.S. 106
    , 117 (1976). The issue was much the same in Eisenstadt v.
    Baird, which involved a contraceptive seller’s challenge to a restriction on contraceptives. 
    405 U.S. 438
    , 445–46 (1972). The seller was allowed to assert the rights of potential contraceptive
    users, in large part because “[t]he rights of husband and wife . . . are likely to be diluted or adversely
    affected unless those rights are considered in a suit involving those who have this kind of
    confidential relation to them,” and because under the challenged restriction the users were “not
    themselves subject to prosecution and, to that extent, [were] denied a forum in which to assert their
    own rights.” 
    Id. at 446
    . And in Powers, the Supreme Court found that criminal defendants have
    third party standing to bring potential jurors’ equal protection claims when race-based peremptory
    strikes are made. 
    499 U.S. at 414
    . The Court explained that this was proper because:
    The barriers to a suit by an excluded juror are daunting. Potential jurors are not
    parties to the jury selection process and have no opportunity to be heard at the time
    of their exclusion. Nor can excluded jurors easily obtain declaratory or injunctive
    relief when discrimination occurs through an individual prosecutor’s exercise of
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    peremptory challenges . . . . And, there exist considerable practical barriers to suit
    by the excluded juror because of the small financial stake involved and the
    economic burdens of litigation . . . . The reality is that a juror dismissed because of
    race probably will leave the courtroom possessing little incentive to set in motion
    the arduous process needed to vindicate his own rights.
    
    Id.
     at 414–15 (citations omitted).
    Rover points us to no case where a party was allowed to assert a third-party claim on the
    sole basis of financial disincentive of the third party to bring suit. Although Powers did mention
    lack of financial incentive as a reason why improperly excluded jurors are hindered in bringing
    suit, it was merely one in a long list of factors that together culminated in the conclusion that
    excluded jurors faced so many barriers that third-party suits were appropriate. See id.; see also
    Smith, 
    641 F.3d at 209
     (indicating that Powers concerned “systemic practical challenges to filing
    suit”).6 But financial disincentive alone appears far less of a hindrance than other hindrances found
    insufficient to justify third-party standing. See, e.g., Kowalski, 
    543 U.S. at
    132–33 (indigent
    litigants needing to proceed pro se face an insufficient obstacle). Many claims do not involve great
    financial compensation in comparison to the costs of litigation, but litigants bring them anyway—
    ostensibly to vindicate their rights. To allow mere financial disincentive—especially where, as
    here, there is no indication that bringing suit would be inordinately difficult or expensive—to
    justify third-party standing would open the floodgates where the Supreme Court has been careful
    to limit access. See Crawford v. United States Dep’t of the Treasury, 
    868 F.3d 438
    , 455 (6th Cir.
    2017) (noting that the third-party standing exception is “rare”).
    Further, the financial disincentive issue here is different than the one at issue in Powers,
    where the disincentive stemmed solely from the fact that the suits, due to their complicated context,
    6
    The same is true for the case cited by Rover, United States v. De Gross, 
    960 F.2d 1433
    , 1437 (9th Cir.1992), which
    involved “numerous procedural difficulties” such that the third party, “the improperly excluded juror[,] effectively
    lacks a remedy for his unconstitutional exclusion from the trial.”
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    would likely be expensive to bring and result in very little damages. Here, Rover makes no
    argument about this suit being inherently prohibitively expensive, and its financial incentive
    argument revolves around the fact that the workers may have actually obtained a financial benefit
    due to the alleged violation of their rights.
    As the Supreme Court has noted, “third parties themselves usually will be the best
    proponents of their own rights,” and it simply “may be that in fact the holders of those rights . . .
    do not wish to assert them . . . .” Singleton, 
    428 U.S. at
    113–14. The balance between financial
    gain and vindication of one’s rights, without more, is a personal choice for the right-holder to
    make. Cf. Friedman v. Harold, 
    638 F.2d 262
    , 265–66 (1st Cir. 1981) (“The bankrupt wife whose
    alleged rights are being asserted by the trustee is specifically asking this court that those ‘rights’
    not be granted to her. She not only does not wish to assert any rights she may have regarding
    discrimination on the basis of her sex, but she could be economically injured if the challenged
    aspect of the tenancy by the entirety were struck down as invalid. This is a classic example of the
    Supreme Court’s principle preventing a litigant from asserting the third-party rights of those who
    do not want such rights asserted.”); Sessions v. Morales-Santana, 
    137 S. Ct. 1678
    , 1689 (2017)
    (indicating that mere “disinterest” is not a sufficient hindrance). The kind of relatively minor
    financial disincentive alleged by Rover is simply not a “genuine obstacle,” Singleton, 
    428 U.S. at 116
    , to bringing a claim such that third-party standing—and potentially overriding the desires of
    the workers regarding their own rights—is warranted. Rover therefore does not have standing to
    bring the Fourth Amendment, false arrest, or Equal Protection claims on behalf of the workers
    whose rights were allegedly violated.
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    Having addressed those standing issues, we move to each of Rover’s remaining claims in
    turn.
    A. Procedural Due Process
    We turn first to Rover’s procedural due process claim. The Fourteenth Amendment
    provides, in relevant part, that “[n]o State shall . . . deprive any person of life, liberty, or property,
    without due process of law . . . .” U.S. Const. amend. XIV, § 1. This Due Process Clause generally
    requires notice and an opportunity to be heard before depriving a person of a property or liberty
    interest, but it is “flexible and calls for such procedural protections as the particular situation
    demands.” Garcia v. Fed. Nat’l Mortg. Ass’n, 
    782 F.3d 736
    , 740–41 (6th Cir. 2015) (quoting
    Armstrong v. Manzo, 
    380 U.S. 545
    , 552 (1965)). To determine whether the right has been violated,
    courts first consider whether a plaintiff was deprived of a protected property or liberty interest.
    Warren v. City of Athens, Ohio, 
    411 F.3d 697
    , 708 (6th Cir. 2005) (citing Hamilton v. Myers, 
    281 F.3d 520
    , 529 (6th Cir. 2002)). If the plaintiff was, courts consider whether the deprivation
    violated due process rights. 
    Id.
    Rover alleges that it had a protected interest in owning and peacefully enjoying property,
    in moving freely in public spaces, and in the freedom to work and pursue economic opportunities.
    Appellant’s Br. at 15. But even assuming Rover has an interest in each of these things, Rover
    repeatedly overlooks the fact that it entered into a contract restricting those interests in certain
    circumstances. Zwick and Kress believed that the road conditions warranted a cease-work order
    pursuant to the contract. And “[a] plaintiff may not bring a § 1983 action ‘when the deprivation
    is a simple breach of contract and there is [an] adequate state breach of contract action available
    as a remedy.’” See Machisa v. Columbus City Bd. of Educ., 563 F. App’x 458, 462–63 (6th Cir.
    2014); see also Shoemaker v. City of Howell, 
    795 F.3d 553
    , 559 (6th Cir. 2015) (explaining
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    procedural due process requirements are “fluid and fact dependent” (citation omitted)). Because
    Ohio provides for a breach of contract claim, “that process is due process” in this case. Lujan v.
    G & G Fire Sprinklers, Inc., 
    532 U.S. 189
    , 197 (2001).
    We acknowledge, however, that the action did not stop with the issuance of the cease-work
    order, because Rover alleges that Deputy Blamble enforced that order by threatening to arrest the
    workers if they drove on the at-issue roads. Assuming that Deputy Blamble did in fact threaten to
    arrest the workers, as we must at this stage, we still find no procedural due process violation,
    because such actions were “random and unauthorized” and there are available state remedies to
    compensate Rover. See Warren, 
    411 F.3d at
    709–10 (citation omitted); see also Daily Servs., LLC
    v. Valentino, 
    756 F.3d 893
    , 907 (6th Cir. 2014).
    Rover itself alleges that Deputy Blamble lacked authority to threaten arrest. Reply Br. at
    25. And there is no evidence that any deputy, let alone Deputy Blamble, has ever threatened arrest
    in a similar situation. Finally, Rover has not alleged, let alone shown, inadequate state remedies
    to compensate it for any abuse of process that Deputy Blamble’s actions may represent. Cf. GEFT
    Outdoors, LLC v. City of Westfield, 
    922 F.3d 357
    , 367 (7th Cir. 2019) (finding no likelihood of
    success on due process claim when a city attorney showed up at a worksite and told workers they
    would be arrested if they did not leave). Thus, summary judgment was properly granted.
    B. Substantive Due Process
    Rover also alleges that Appellees violated its substantive due process rights by requiring it
    to sign the Road Use Maintenance Agreement before it could begin its work and then creating an
    arbitrary procedure wherein the county ignored the causation requirement of the agreement and
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    shut down work based on only a presumption that Rover damaged the roads, rather than the other
    companies also working on the pipeline. Appellant’s Br. at 22–23.7
    The Due Process Clause “contains a substantive component that bars certain arbitrary,
    wrongful government actions ‘regardless of the fairness of the procedures used to implement
    them.’” Zinermon v. Burch, 
    494 U.S. 113
    , 125 (1990) (quoting Daniels v. Williams, 
    474 U.S. 327
    ,
    331 (1986)). To establish a violation of this substantive due process right, a plaintiff must allege:
    (1) a constitutionally protected property interest that (2) was deprived by arbitrary and capricious
    state action. MSI Regency, Ltd. v. Jackson, 433 F. App’x 420, 429 (6th Cir. 2011). This second
    requirement is that the state’s action “either lacks a rational basis or is willful and unreasoning.”
    GMS Dev. Holding Co. 3, LLC v. Bloomfield Twp., 740 F. App’x 495, 496–97 (6th Cir. 2018)
    (quotation and citations omitted).
    As a preliminary matter, a “state-created contractual right is not a proper subject of federal
    protection under the doctrine of substantive due process.” Taylor Acquisitions, L.L.C. v. City of
    Taylor, 313 F. App’x 826, 834 (6th Cir. 2009) (quotation and citations omitted). But even if we
    assume that there was a constitutionally protected property interest outside of the interest created
    by the contract, Rover’s claim fails, because Rover has not established that the state’s action was
    arbitrary and capricious.
    The county determined that the road damage was excessive and accordingly shut down
    Rover’s work.           This action was contemplated by the contract, which seemingly left the
    determination to the county’s discretion. See Road Use Maintenance Agreement, R. 80-2, PID
    5079 (“If during the pipeline construction, road damage becomes excessive in nature, as
    reasonably determined by the County or Township, the applicant will make additional
    7
    Rover did not argue that Deputy Blamble’s actions constituted a substantive due process violation.
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    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    improvements to strengthen the road base and surface immediately upon written notice from the
    County Engineer or Township Trustees.” (emphasis added)); see also Systematic Recycling LLC
    v. City of Detroit, 635 F. App’x 175, 183 (6th Cir. 2015) (“Non-renewal of the HCA was a result,
    moreover, that was expressly contemplated by the terms of the contract itself, which allowed for
    the possibility that the city would not renew it. It does not ‘shock the conscience’ for Detroit to
    do something that the contract between the parties had previously contemplated.”). This does not
    rise to the level of a substantive due process violation. Cf. GMS Dev. Holding Co. 3, LLC, 740 F.
    App’x at 497 (“Local governments make that sort of judgment every day, and nothing about the
    Township’s reasoning here allows us to deem its decision constitutionally arbitrary. This is simply
    a dispute about which the federal Constitution has nothing to do.” (internal citation omitted)); see
    also Hussein v. City of Perrysburg, 
    617 F.3d 828
    , 833 (6th Cir. 2010) (“The asphalt driveway
    incident did not implicate specific constitutional guarantees, denial of a driveway does not shock
    the conscience, and an asphalt driveway is not an interest so rooted in the traditions and conscience
    of our people as to be fundamental.”).
    Rover pushes back, arguing that the actions were arbitrary because the county ignored the
    “causation” requirement of the contract. Appellant’s Br. at 22–23. Further, Rover disagrees with
    the characterization of the road damages as “excessive” as required by the contract. 
    Id.
     But these
    are breach of contract arguments. The district court therefore did not err in rejecting Rover’s
    substantive due process claim.
    C. Taking
    Rover alleges that Appellees violated its right to access its property by public roadways,
    which amounted to “deprivation of sacrosanct property rights by a state actor without just
    compensation.” Appellant’s Br. at 32.
    - 14 -
    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    The Fifth Amendment’s Takings Clause, applicable to states through the Fourteenth
    Amendment, prohibits taking “private property . . . for public use, without just compensation.”
    U.S. Const. amend. V; Palazzolo v. Rhode Island, 
    533 U.S. 606
    , 617 (2001).
    Again, Rover’s arguments repeatedly overlook the fact that the cease-work order was
    issued pursuant to a contract, and the right to use the property at issue was granted by the contract.
    As such, the proper remedy lies in a breach of contract suit. See Laborers’ Int’l Union of N. Am.,
    Loc. 860 v. Neff, 
    29 F.4th 325
    , 335 (6th Cir. 2022) (“But we have not found a case, as an initial
    matter, in which a government official merely breached a contract and a cognizable Takings Clause
    claim arose from the breach.”); B & B Trucking, Inc. v. U.S. Postal Serv., 
    406 F.3d 766
    , 769 (6th
    Cir. 2005) (“Additionally, if the truckers contend correctly that the contracts do not validly restrict
    their right to control their fuel supply, and USPS nevertheless abridged that right, then the proper
    recourse would be a breach-of-contract claim, not a takings claim.”). The district court properly
    granted Appellees summary judgment on Rover’s takings claim.
    D. Monell Claim
    As Rover has failed to establish a constitutional violation, its Monell claim also fails. See
    McQueen v. Beecher Cmty. Schs., 
    433 F.3d 460
    , 471 (6th Cir. 2006); Scott v. Clay Cnty., Tenn.,
    
    205 F.3d 867
    , 879 (6th Cir. 2000) (“Nevertheless, our conclusion that no officer-defendant had
    deprived the plaintiff of any constitutional right a fortiori defeats the claim against the County as
    well.”).
    E. State Law Claims
    Finally, Rover argues that the district court erred by declining to exercise supplemental
    jurisdiction over its state law claims. We review a district court’s decision to decline to exercise
    supplemental jurisdiction over state law claims for abuse of discretion. Veneklase v. Bridgewater
    - 15 -
    No. 22-3370, Rover Pipeline LLC v. Amy M. Zwick et al.
    Condos, L.C., 
    670 F.3d 705
    , 709 (6th Cir. 2012) (citing Gamel v. City of Cincinnati, 
    625 F.3d 949
    ,
    951 (6th Cir. 2010)). We reverse only if “we are left with the definite and firm conviction that the
    district court made a clear error of judgment in its conclusion upon weighing relevant factors.” 
    Id.
    (quotation omitted).
    If a district court has dismissed all claims over which it has original jurisdiction, it may
    decline to exercise supplemental jurisdiction. 
    28 U.S.C. § 1367
    (c)(3). As such, we have explained
    that “declining to exercise supplemental jurisdiction over an action with no remaining federal
    claims is not an abuse of discretion.” Southard v. Newcomb Oil Co., LLC, 
    7 F.4th 451
    , 453 (6th
    Cir. 2021). That is especially true in this case, where the state breach of contract outcome could
    have important local consequences. See Oberer Land Devs. Ltd. v. Sugarcreek Twp., Ohio, No.
    21-3834, 
    2022 WL 1773722
    , at *6 (6th Cir. June 1, 2022). Accordingly, we affirm the district
    court’s decision not to retain jurisdiction over Rover’s state law claims.
    III.
    For these reasons, we AFFIRM the district court’s judgment.
    - 16 -
    

Document Info

Docket Number: 22-3370

Filed Date: 11/30/2022

Precedential Status: Non-Precedential

Modified Date: 11/30/2022

Authorities (27)

Henry Friedman, Trustee in Bankruptcy of Janice Ann Marie ... , 638 F.2d 262 ( 1981 )

Region 8 Forest Service Timber Purchasers Council v. Alcock , 993 F.2d 800 ( 1993 )

Hussein v. City of Perrysburg , 617 F.3d 828 ( 2010 )

Veneklase v. Bridgewater Condos, L.C. , 670 F.3d 705 ( 2012 )

Patricia Scott v. Clay County, Tennessee Chinn Anderson ... , 205 F.3d 867 ( 2000 )

Charles W. Warren Ruth Warren v. City of Athens, Ohio , 411 F.3d 697 ( 2005 )

Veronica McQueen v. Beecher Community Schools , 433 F.3d 460 ( 2006 )

Jamie Hamilton v. Gary T. Myers, Executive Director of the ... , 281 F.3d 520 ( 2002 )

Westfield Insurance Co. v. Tech Dry, Inc. Gayle Williamson , 336 F.3d 503 ( 2003 )

Gamel v. City of Cincinnati , 625 F.3d 949 ( 2010 )

Leanna Jaco, Individually and as Administratrix of the ... , 739 F.2d 239 ( 1984 )

Smith v. JEFFERSON COUNTY BD. OF SCHOOL , 641 F.3d 197 ( 2011 )

b-b-trucking-inc-causley-trucking-inc-cliff-blackburn-fedrizzi-inc , 406 F.3d 766 ( 2005 )

donald-f-appoloni-sr-russell-c-bergemann-and-charles-bryce-engle-v , 450 F.3d 185 ( 2006 )

Geft Outdoors, LLC v. City of Westfield , 922 F.3d 357 ( 2019 )

Warth v. Seldin , 95 S. Ct. 2197 ( 1975 )

Armstrong v. Manzo , 85 S. Ct. 1187 ( 1965 )

Singleton v. Wulff , 96 S. Ct. 2868 ( 1976 )

Palazzolo v. Rhode Island , 121 S. Ct. 2448 ( 2001 )

Eisenstadt v. Baird , 92 S. Ct. 1029 ( 1972 )

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