Lincoln v. Danner et al

Filing 46

ORDER AND REASONS granting 22 Motion to Dismiss Plaintiff's RICO claim; granting 25 Motion for Summary Judgment; granting in part 26 Motion for Summary Judgment on Counterclaim. All of Plaintiff's claims are DISMISSED WITH PREJUDICE. Only Defendant's counterclaim remains pending. Signed by Judge Jane Triche Milazzo. (ecm)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
CHARLES LINCOLN, III

CIVIL ACTION

VERSUS

NO: 14-393

BOBBY DANNER ET AL.

SECTION: “H”

ORDER AND REASONS
Before the Court are Defendants' Motion to Dismiss Plaintiff's RICO claim
(R. Doc. 22), Motion for Summary Judgment (R. Doc. 25), and Motion for
Summary Judgment on Counterclaim (R. Doc. 26). For the following reasons,
the Motion to Dismiss and Motion for Summary Judgment are GRANTED. The
Motions for Summary Judgment on Counterclaim is GRANTED IN PART.
BACKGROUND
Plaintiff alleges that he entered into a verbal agreement with Defendant
Bobby Danner to become a long-term tenant at a set daily rate at the Defendant
Olivier House Hotel ("the Hotel") in the French Quarter of New Orleans. He
alleges that during his three-month stay, the agreed upon rate was increased
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significantly and without warning during holiday weekends such as the Super
Bowl and Mardi Gras. He further contends that these increases prevented him
from paying the full amount owed on the room. On February 22, 2013, Plaintiff
alleges that Bobby Danner demanded that Plaintiff leave the Hotel immediately
and refused to allow him to take any of his personal belongings unless he paid
his outstanding bill in full. Plaintiff was unable to do so and therefore left the
Hotel without his belongings. As a result of the incident, Plaintiff has brought
claims for state law conversion, improper ejection of a guest from a hotel, price
gouging, and improper eviction of a leasee. Plaintiff further contends that the
Defendants violated the Racketeer Influence and Corrupt Organizations Act
("RICO") by conspiring to dramatically increase the rate of rooms during holiday
weekends.

Defendants subsequently filed a counterclaim against Plaintiff

alleging that he owes $6,556.25 in unpaid hotel rental fees and asserting a
privilege on the property that Plaintiff left at the Hotel.
Defendants have filed three motions presently before the Court. First,
Defendants request the dismissal of Plaintiff's RICO claims in light of his failure
to timely file a RICO case statement. Second, Defendants request summary
judgment on both Plaintiff's claims and their counterclaim. This Court will
discuss each Motion in turn.

2

LEGAL STANDARD
A. Motion to Dismiss
To survive a Rule 12(b)(6) motion to dismiss, a plaintiff must plead enough
facts "to state a claim to relief that is plausible on its face."1 A claim is "plausible
on its face" when the pleaded facts allow the court to "[d]raw the reasonable
inference that the defendant is liable for the misconduct alleged."2 A court must
accept the complaint's factual allegations as true and must "draw all reasonable
inferences in the plaintiff's favor."3 The Court need not, however, accept as true
legal conclusions couched as factual allegations.4
To be legally sufficient, a complaint must establish more than a "sheer
possibility" that the plaintiff's claims are true.5 "A pleading that offers 'labels
and conclusions' or 'a formulaic recitation of the elements of a cause of action'"
will not suffice.6 Rather, the complaint must contain enough factual allegations
to raise a reasonable expectation that discovery will reveal evidence of each
element of the plaintiffs' claim.7
B. Motion for Summary Judgment
Summary judgment is appropriate "if the pleadings, depositions, answers
1

Ashcroft v. Iqbal, 556 U.S. 662, 667 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550
U.S. 544, 547 (2007)).
2

Id.

3

Lormand v. U.S. Unwired, Inc., 565 F.3d 228, 232 (5th Cir. 2009).

4

Iqbal, 556 U.S. at 667.

5

Id.

6

Id. at 678 (quoting Twombly, 550 U.S. at 555).

7

Lormand, 565 F.3d at 255–57.

3

to interrogatories, and admissions on file, together with affidavits, if any, show
that there is no genuine issue as to any material fact and that the moving party
is entitled to a judgment as a matter of law."8 A genuine issue of fact exists only
"if the evidence is such that a reasonable jury could return a verdict for the
nonmoving party."9
In determining whether the movant is entitled to summary judgment, the
Court views facts in the light most favorable to the non-movant and draws all
reasonable inferences in his favor.10 "If the moving party meets the initial
burden of showing that there is no genuine issue of material fact, the burden
shifts to the non-moving party to produce evidence or designate specific facts
showing the existence of a genuine issue for trial."11 Summary judgment is
appropriate if the non-movant "fails to make a showing sufficient to establish the
existence of an element essential to that party’s case."12 "In response to a
properly supported motion for summary judgment, the non-movant must
identify specific evidence in the record and articulate the manner in which that
evidence supports that party’s claim, and such evidence must be sufficient to
sustain a finding in favor of the non-movant on all issues as to which the nonmovant would bear the burden of proof at trial."13 "We do not . . . in the absence
8

Fed. R. Civ. P. 56(c) (2012).

9

Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986).

10

Coleman v. Houston Indep. Sch. Dist., 113 F.3d 528, 533 (5th Cir. 1997).

11

Engstrom v. First Nat’l Bank of Eagle Lake, 47 F.3d 1459, 1462 (5th Cir. 1995).

12

Celotex Corp. v. Catrett, 477 U.S. 317, 324 (1986).

13

John v. Deep E. Tex. Reg. Narcotics Trafficking Task Force, 379 F.3d 293, 301 (5th Cir.
2004) (internal citations omitted).

4

of any proof, assume that the nonmoving party could or would prove the
necessary facts."14

Additionally, "[t]he mere argued existence of a factual

dispute will not defeat an otherwise properly supported motion."15
LAW AND ANALYSIS
A. Motion to Dismiss RICO Claims
On January 19, 2015, this Court issued its RICO standing order, directing
Plaintiff to file a RICO case statement within 20 days of the order. Plaintiff
failed to do so, and Defendants filed the instant Motion to Dismiss on that
ground shortly thereafter. Because his former attorney failed to file the RICO
case statement, Plaintiff fired him and has proceeded in this action pro se. On
July 16, 2015, Plaintiff filed a pro se RICO case statement. On that date, he also
filed a pro se response to Defendants' Motion to Dismiss explaining the delay and
his difficulty with former counsel.
Rule 41(b) of the Federal Rules of Civil Procedure provides that a court
may in its discretion dismiss any action based on the failure of the plaintiff to
prosecute or comply with any order of the court.16 In addition, Federal Rule of
Civil Procedure 16(f) allows the Court to sanction a party for failing to obey a
pretrial order. The Fifth Circuit has instructed that when considering
involuntary dismissal, a court should examine "'aggravating factors,' such as (1)
14

Badon v. R J R Nabisco, Inc., 224 F.3d 382, 394 (5th Cir. 2000) (quoting Little v.
Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994)).
15

Boudreaux v. Banctec, Inc., 366 F. Supp. 2d 425, 430 (E.D. La. 2005).

16

Hulsey v. State of Texas, 929 F.2d 168, 171 (5th Cir. 1991); McCullough v. Lynaugh,
835 F.2d 1126, 1127 (5th Cir. 1988); Brinkmann v. Dallas County Deputy Sheriff Abner, 813
F.2d 744, 749 (5th Cir. 1987).

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the extent to which the plaintiff, as distinguished from his counsel, was
personally responsible for the delay, (2) the degree of actual prejudice to the
defendant, and (3) whether the delay was the result of intentional conduct."17
In this case, it is apparent that Plaintiff's counsel was responsible for the
delay and failure to comply with the court's order.18 Plaintiff took necessary
action to move his case forward by filing the required statement after he
experienced difficulty finding new counsel. Defendants have made no showing
of prejudice caused by this delay or that the delay was intentional on Plaintiff's
part. Accordingly, this Court does not feel that the harsh sanction of involuntary
dismissal is warranted in this case.
After Plaintiff filed his RICO case statement, however, Defendants filed
a reply in which they pointed out several deficiencies in Plaintiff's allegations.
Specifically, Defendants allege that Plaintiff's allegations fail to meet the
plausibility standard set forth by Twombly.19 "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. 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."20
17

Ford v. Sharp, 758 F.2d 1018, 1021 (5th Cir. 1985); Markwell v. County of Bexar, 878
F.2d 899, 902 (5th Cir. 1989); Price v. McGlathery, 792 F.2d 472, 474–75 (5th Cir. 1986).
18

That said, this Court does not endorse Plaintiff's unsupported assertions of collusion
between his former counsel and counsel for Defendants. Plaintiff is strongly advised to resist
making such allegations in future pleadings without supporting evidence.
19

See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S. Ct. 1955, 167 L. Ed. 2d 929

20

Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009).

(2007).

6

Plaintiff alleges that the Defendants violated RICO through their
involvement in a conspiracy to fix hotel prices in the French Quarter during the
Super Bowl and Mardi Gras. In order to state a RICO claim, there must be "(1)
a person who engages in (2) a pattern of racketeering activity, (3) connected to
the acquisition, establishment, conduct, or control of an enterprise."21 Plaintiff's
case statement does not, however, sufficiently establish the Defendants
involvement in an enterprise.
"In order to avoid dismissal for failure to state a claim, a plaintiff
must plead specific facts, not mere conclusory allegations, which
establish the existence of an enterprise. . . . If the enterprise alleged
is an “association in fact” enterprise, the plaintiff must show
evidence of an ongoing organization, formal or informal, that
functions as a continuing unit over time through a hierarchical or
consensual decision-making structure. . . . Finally, the plaintiff must
plead specific facts which establish that the association exists for
purposes other than simply to commit the predicate acts.22
Plaintiff makes only the conclusory allegation that Defendants made agreements
"in illegal restraint of trade for price gouging and illegal billing with other New
Orleans hotels and competitors in the hotel management and guest services
industries." Plaintiff provides no factual support for this allegation. In addition,
his case statement explicitly states that the "Danner Family Enterprise or
association-in-fact . . . does not appear to have any existence separate and apart
from its pattern of racketeering activity." He also repeatedly refers to the LLC
Defendants as "shams, having no real operative existence."
21

Accordingly,

S. Snow Mfg. Co. v. SnoWizard Holdings, Inc., 912 F. Supp. 2d 404, 420 (E.D. La.
2012) aff'd, 567 F. App'x 945 (Fed. Cir. 2014).
22

Elliott v. Foufas, 867 F.2d 877, 881 (5th Cir. 1989).

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Plaintiff has failed to state a claim under the RICO Act against Defendants.
In light of Plaintiff's pro se status, this Court informed Plaintiff at a status
conference on July 16, 2015 that it had doubts regarding the viability of his
RICO claims and granted him an additional 30 days to amend his pleadings.23
Plaintiff failed to make any amendments or file any additional memoranda to
support his claims. Because the Court has already provided Plaintiff with the
opportunity to amend his pleadings, his RICO claims are dismissed with
prejudice.
B. Motion for Summary Judgment
Defendants have also moved for summary judgment on all of the claims
made in Plaintiff's Complaint, and Plaintiff has failed to respond to that Motion.
This does not, however, mean that the Court may grant the Motion as
unopposed.

Rather, the Fifth Circuit approaches the automatic grant of

dispositive motions with considerable aversion.24

Indeed, on a motion for

summary judgment, the moving party still "has the burden of establishing that
there is no genuine dispute of material fact; and, unless that party does so, a
court may not grant the motion, regardless [of] whether any response is filed."25
23

Courts should ordinarily grant a plaintiff at least one opportunity to amend before
dismissing a complaint with prejudice for failure to state a claim. Hart v. Bayer Corp., 199
F.3d 239, 248 n.6 (5th Cir. 2000).
24

See, e.g., Servicios Azucareros de Venezuela, C.A. v. John Deere Thibodeaux, Inc., 702
F.3d 794, 806 (5th Cir. 2012) ("[The] failure to oppose a 12(b)(6) motion is not in itself grounds
for granting the motion. Rather, a court assesses the legal sufficiency of the complaint.");
Johnson v. Pettiford, 442 F.3d 917, 918 (5th Cir. 2006) (per curiam); John v. State of La. Bd.
of Trs. for State Colls. & Univs., 757 F.2d 698, 709 (5th Cir. 1985).
25

Davis–Lynch, Inc. v. Moreno, 667 F.3d 539, 550 (5th Cir. 2012) (citing Hibernia Nat'l
Bank v. Admin. Cent. Sociedad Anonima, 776 F.2d 1277,1279 (5th Cir. 1985)).

8

In this District, the failure to file an opposition requires the Court to deem the
moving party's statements of uncontested material facts admitted.26
Nonetheless, the moving party must still make a prima facie showing of its
entitlement to judgment.27 This Court will address each of Plaintiff's allegations
in turn.
1. Conversion
Plaintiff's Complaint alleges that Defendants converted his property when
they retained it after he was evicted from the Hotel for failure to pay his bill.
"[T]he tort of conversion is an act in derogation of a plaintiff's possessory rights,
and any wrongful exercise or assumption of authority over another's goods,
depriving him of the possession, permanently or for an indefinite time."28
Defendants correctly argue, however, that their retention of Plaintiff's property
was not unlawful because they had a right to retain it as a result of the
innkeeper's privilege. Indeed, Louisiana Civil Code articles 3232 through 3236
provide that a hotel has a privilege on the property of anyone who stays at the
hotel and that the hotel may "retain property, and have it sold, to obtain
payment of what such persons may owe them."29 Clearly, then, Defendants were
authorized in retaining Plaintiff's property when he failed to pay his hotel bill,
and therefore, Plaintiff's claims for conversion are dismissed.

26

See L .R. 56.2.

27

See Eversley v. Mbank Dallas, 843 F.2d 172, 174 (5th Cir. 1999).

28

Birch v. Birch, 55 So. 3d 796, 800 (La. App. 2 Cir. 2010) (internal quotation marks

omitted).
29

La. Civ. Code art. 3233.

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2. Notice to Vacate
Plaintiff next contends that Defendants violated Louisiana Revised
Statute sections 21:75 and 76 by improperly ejecting him from the Hotel.
Plaintiff alleges that because there was no agreed upon departure date, he
should have been given at least one hour's notice prior to being evicted from the
Hotel. Defendants agree that Louisiana Revised Statute section 21:75 stands for
the proposition that a hotel tenant is entitled to one hour's notice before ejection
but argue that Plaintiff was not ejected. Defendants contend that Plaintiff
voluntarily left the premises.
Louisiana Revised Statute section 21:75 states that:
No person shall remain in a hotel or motel, or in or on a campsite,
where his term or stay has expired if the person has been given
written notice of his agreed departure date and checkout time at the
time he registered at the motel, hotel, or campground, and the
person has been given verbal or written notice to leave the hotel or
motel room, or campsite at least one hour prior to the time required
to leave.
Section 21:76 states that:
The person and other occupants, and their personal belongings, may
be removed by the appropriate lawful authority, provided the
conditions of R.S. 21:75 have been met. No action for damages or
otherwise shall be allowed in a court of law against the owners,
operators, or managers of the hotel, motel, or campground or an
appropriate lawful authority for reasonable exercise of rights
pursuant to the provisions of this Chapter.
When read together, these statutes clearly stand for the proposition that
a hotel must give a tenant written notice of departure time at the time he checks
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into the hotel and an hour's advance notice to leave before the "appropriate
lawful authority" is called to forcibly remove him or her from the hotel. Plaintiff
does not allege that any lawful authority was used to remove him from the
Hotel. Indeed, his Complaint states that Danner threatened to call the police
but that Plaintiff subsequently left the hotel on his own accord. Accordingly,
Louisiana Revised Statutes sections 21:75 and 76 are inapplicable to the
situation at hand, and Plaintiff's claims are dismissed.
3. Price Gouging
Plaintiff next contends that Defendants violated Louisiana Revised
Statute section 21:21(A)(7) by charging a hotel rental rate during holiday
weekends in excess of 30% over the regular rate. Defendants contend that §
21:21 does not apply to a hotel, but instead, applies to third parties seeking to
resell a room at the hotel .
Revised Statute § 21:21(A)(7) states that no person shall:
Sell or offer to sell accommodations at any hotel during the weekend
of the National Football League Superbowl game, Bayou Classic
game, Sugar Bowl game, and during the period of the National
Collegiate Athletic Association Final Four Tournament, in excess of
thirty percent more than the highest advertised rack rate charged
by the hotel, inn, or boarding house.
By its plain language, this statute prohibits guests from reselling a hotel room
for 30% more than was advertised by the hotel during certain events. This
interpretation is supported by the fact that the statute is located in Chapter 2
of Title 21 (Hotels and Lodging Houses), entitled "Offenses by Guests." The
remainder of the statute prohibits guests from various offenses aimed at
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defrauding a hotel. Plaintiff's claims under § 21:21 are therefore dismissed.
4. Improper Eviction of Leasee
Plaintiff also contends that his arrangement with the Hotel was a lease
and that, therefore, his lease was improperly terminated. He alleges that
according to Louisiana Civil Code articles 2727 through 2729, a month-to-month
lease must be terminated by ten-day-advanced, written notice. While true,
Plaintiff has made no showing that his tenancy at the Hotel was on a month-tomonth basis. Notably, his initial stay was to be for 22 days and was thereafter
extended. At all times, Plaintiff was charge a daily rate. Even assuming,
without deciding, that Plaintiff's arrangement with the Hotel was a lease, his
initial 22-day lease would have reconducted on a day-to-day basis pursuant to
Civil Code article 2723. Article 2728 states that notice of termination "[i]n a
lease whose term is measured by a period shorter than a week, [shall be given]
at any time prior to the expiration of that period." Accordingly even if his
arrangement with the Hotel was a lease, Plaintiff was given ample notice of
termination, and his claims based on the violation of lease law are dismissed.
C. Motion for Summary Judgment on Defendant's Counterclaim
Defendants contend that Plaintiff has an outstanding balance of $6,556.25
for his stay at the Hotel. They allege that pursuant to Louisiana's law on open
accounts Defendant Oliver House Property Management, LLC is owed this
amount plus judicial interest, the cost of storing Plaintiff's personal belongings,
and attorney's fees and costs. They also ask this Court to recognize their
inkeeper's privilege on the property left at the Hotel by Plaintiff. They have
12

moved for summary judgment on this claim.
Plaintiff primarily contests that Defendants support their Motion with
unauthenticated and unsworn evidence, including a billing log and photocopies
of receipts accompanied by handwritten explanations. The log, a form document
containing handwritten notations, purports to keep track of the each day that
Plaintiff stayed at the Hotel and the rate charged on that day. The exhibit does
not indicate by whom the document was created, from where the data in the
document was collected, or whether this information was kept in the regular
course of business. The log is not accompanied by any affidavit attesting to its
authenticity.

The photocopied receipts are accompanied by handwritten

explanations and the initials "BD," presumably Defendant Bobby Danner. The
receipts are likewise unauthenticated, and the handwritten notations are
unsworn.
"[O]n a motion for summary judgment, the evidence proffered by the
plaintiff to satisfy his burden of proof must be competent and admissible at
trial."30 "It is well-settled that, to be admissible as summary judgment evidence,
documents must be authenticated by and attached to an affidavit that meets the
requirements of Federal Rule of Civil Procedure 56(e) and the affiant must be a
person through whom the exhibits could be admitted into evidence."31 "Unsworn
30

Roucher v. Traders & Gen. Ins. Co., 235 F.2d 423, 424 (5th Cir. 1956); Bellard v.
Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012).
31

Haynes v. Pennzoil Co., 141 F.3d 1163 (5th Cir. 1998) (internal quotations and
alterations omitted); 10A ALAN WRIGHT & ARTHUR MILLER, FEDERAL PRACTICE AND PROCEDURE,
§ 2722 (3d ed.). See Johnson v. Spohn, 334 F. App'x 673, 678 (5th Cir. 2009) (holding that
Hospital's notes, letters, and committee minutes were admissible when properly authenticated
by an affidavit of the Vice President of Medical Affairs attesting that "the documents were

13

documents are . . . not appropriate for consideration.32 Accordingly, this Court
declines to consider the aforementioned exhibits in considering Defendants'
Motion for Summary Judgment.
That said, Plaintiff's opposition to this Motion is devoid of any assertion
that (1) he did not stay at the Hotel from December 9, 2012 to February 22,
2013, or (2) he has fully paid the amounts owed for those nights. It appears that
the only point of disagreement between the parties is the rate at which Plaintiff
was charged. Plaintiff asserts that he never agreed to pay the inflated rates
charged by the Hotel during Superbowl Weekend or Mardi Gras. Defendants
contend that Plaintiff was advised in advance of these weekends that he would
be charged a higher rate and was given the option to either vacate the suite or
move to a less expensive room; he declined both options and remained in his
suite. In short, Plaintiff disputes the amount he owes to Defendant on open
account, and Defendant has provided no authenticated or sworn evidence to
prove that amount. "In order to prevail in a suit on an open account, the creditor
must first prove the account by showing that the record of the account was kept
in the course of business and by introducing evidence regarding its accuracy."33
business records compiled at the time of the hearings during the regular course of business by
individuals with personal knowledge of the information contained therein.").
32

Martin v. John W. Stone Oil Distrib., Inc., 819 F.2d 547, 549 (5th Cir. 1987).

33

CACV of Colorado, LLC v. Spiehler, 11 So. 3d 673, 675 (La. App. 3 Cir. 2009) ("In this
case, there was no evidence regarding the accuracy of the account. CACV bought the
indebtedness. No evidence was introduced regarding the purchases underlying the debt, no
receipts, invoices, billing statements, or statements of account were introduced to support the
accuracy of the amount claimed. There was no way for the court to verify the accuracy of the
amount claimed. At the close of Plaintiff's case, there was insufficient data to determine
whether the amount claimed was accurate. Accordingly, the trial court correctly found that

14

Defendants have failed to do so. Accordingly, a material dispute of fact exists,
and Defendants are not entitled to summary judgment of this claim.
This Court has no trouble, however, holding that Defendants are entitled
to a privilege on the personal belongings that Plaintiff left at the Hotel. As
discussed above, Louisiana Civil Code articles 3232 through 3236 provide that
a hotel has a privilege on the property of anyone who stays at the hotel and that
the hotel may "retain property, and have it sold, to obtain payment of what such
persons may owe them."34 Because Plaintiff does not dispute that he stayed at
the hotel and failed to pay his bill, this Court holds that Defendants satisfy the
requirements for the innkeeper's privilege. Accordingly, Defendants' Motion for
Summary Judgement on Counterclaim is granted to the extent that this Court
recognizes their privilege on Plaintiff's personal belongings.
CONCLUSION
For the foregoing reasons, the Motion to Dismiss and Motion for Summary
Judgment are GRANTED.

The Motion for Summary Judgment on

Counterclaim is GRANTED IN PART. All of Plaintiff's claims are DISMISSED
WITH PREJUDICE. Only Defendant's counterclaim remains pending.
New Orleans, Louisiana, this 10th day of September, 2015

___________________________________
JANE TRICHE MILAZZO
UNITED STATES DISTRICT JUDGE
CACV failed to prove the account.").
34

La. Civ. Code art. 3233.

15