Investment Realty et. al. v. City of Garden City

2019 WL 4017142 (E.D. Mich. 2019). Plaintiffs filed a putative class action alleging that the City’s rental property inspection ordinance authorized warrantless inspections in violation of the 4th amendment, and that fees collected under the inspection program constituted an unconstitutional condition for obtaining a rental certificate of occupancy.  Plaintiffs also challenged the City’s tall grass abatement ordinance as imposing excessive fees without proper notice.  The Court granted the City’s motion to dismiss and for judgment on the pleadings, finding that the plaintiff challenging the rental property ordinance lacked standing because the ordinance did not facially authorize warrantless searches, and plaintiff had not shown that it had suffered a warrantless search.  In addition, the plaintiff challenging the grass abatement fee lacked standing because the abatement fee accrued before the plaintiff took ownership of the property.  The rental property ordinance challenge in this case resembled numerous others that had been decided by the Eastern District of Michigan, but this was the first to acknowledge the facial constitutionality of an ordinance and result in an unqualified full grant of a municipality’s dispositive motion.