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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

SOUTHWEST METALS Inc., a 

Michigan Domestic Profit Corporation, 

and JOSEPH FAWAZ, an individual, 

Plaintiffs,

v. Case No.: 15-cv-11080

Hon. Marianne O. Battani

Mag. Anthony P. Patti

 

Defendants.

AYAD LAW, P.L.L.C.

NABIH H. AYAD (P59518)

Attorney for Plaintiffs

645 Griswold Street, Suite 2202

Detroit, MI 48226

Phone: (313) 983-4600

Email: nayad@ayadlaw.com

PLAINTIFFS’ RENEWED/SUPPLEMENTAL EMERGENCY EX PARTE 

MOTION FOR A TEMPORARY 

RESTRAINING ORDER AND PRELIMINARY INJUCTION 

CITY OF DETROIT, MICHAEL E. 

DUGGAN, Mayor of Detroit, in his 

official capacity, DETROIT POLICE 

DEPARTMENT, JAMES CRAIG, 

Detroit Police Chief, in his official 

capacity, SGT. REBECCA McKAY in 

her individual and official capacities, 

jointly and severally.

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NOW COMES Plaintiffs, by and through undersigned counsel, and 

respectfully submits this renewed/supplemental motion pursuant to Fed. R. Civ. P. 

65 for a temporary restraining order and preliminary injunction. As will be detailed 

in the attached brief in support, immediate harm has already occurred due to the City 

of Detroit’s improper and unlawful failure to renew Southwest Metal’s business 

license. Further, irreparable loss will occur if a temporary restraining is not entered 

before the adverse party can be heard in opposition. Plaintiff makes this motion on 

the grounds that: (1) Plaintiff is likely to prevail on the merits of his claim; (2) 

Plaintiff will suffer irreparable harm if preliminary relief is not granted; (3) third 

parties will not be harmed by the relief sought; and (4) the public interest will be 

served by granting the relief sought as noted in Plaintiffs’ original Motion. 

EXHIBIT A: March 25 Motion. Plaintiffs respectfully request that this Honorable 

Court grant this motion for a temporary restraining order and a preliminary 

injunction and restrain the City of Detroit from not renewing Southwest Metals 

business license renewal application and reinstate Southwest Metal’s business 

license until at least the hearing presently scheduled before this Court on April 9, 

2015, so that the status quo may be maintained. 

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Respectfully Submitted,

AYAD LAW, P.L.L.C. 

/s/ Nabih H. Ayad 

Nabih H. Ayad (P59518)

Attorney for Plaintiffs

645 Griswold Street, Suite 2202

Detroit, MI 48226

(313) 983-4600

Dated: April 6, 2015 nayad@ayadlaw.com

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UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF MICHIGAN

SOUTHERN DIVISION

SOUTHWEST METALS Inc., a 

Michigan Domestic Profit Corporation, 

and JOSEPH FAWAZ, an individual, 

Plaintiffs,

v. Case No.: 15-cv-11080

Hon. Marianne O. Battani

Mag. Anthony P. Patti

 

Defendants.

AYAD LAW, P.L.L.C.

NABIH H. AYAD (P59518)

Attorney for Plaintiffs

645 Griswold Street, Suite 2202

Detroit, MI 48226

Phone: (313) 983-4600

Email: nayad@ayadlaw.com

PLAINTIFFS’ BRIEF IN SUPPORT OF THEIR 

RENEWED/SUPPLEMENTAL EMERGENCY EX PARTE MOTION FOR 

A TEMPORARY 

RESTRAINING ORDER AND PRELIMINARY INJUCTION 

CITY OF DETROIT, MICHAEL E. 

DUGGAN, Mayor of Detroit, in his 

official capacity, DETROIT POLICE 

DEPARTMENT, JAMES CRAIG, 

Detroit Police Chief, in his official 

capacity, SGT. REBECCA McKAY in 

her individual and official capacities, 

jointly and severally.

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QUESTION PRESENTED

Whether this Court should temporary restrain and preliminary enjoin Defendant 

from denying Plaintiff Southwest Metal’s business license renewal application based 

on improper and unlawful action by the City of Detroit and order that the status quo 

be maintained until a hearing on the matter may be heard?

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CONTROLLING OR MOST APPROPRIATE AUTHORITY

Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532 (1985)

Hooters, Inc v. City of Texarkana, 897 F. Supp. 946 (E.D. Tx. 1995)

Mathews v. Eldridge, 424 U.S. 319 (1976)

Pro’s Sports Bar & Grill, Inc., v. City of Country Club Hills, 589 F.3d 865 (7th 

Cir. 2009)

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I. INTRODUCTION

On March 25, 2015, Plaintiffs filed a motion for a TRO and a preliminary 

injunction requesting a stay of administrative business license proceedings against 

Southwest Metals by the City of Detroit, a removal of Sgt. McKay from 

investigating Southwest Metals, a stay of any proceedings for criminal charges or 

citations against Joseph Fawaz and Southwest Metals, and suspending the 

prosecution of March 2015 warrants issued against Joseph Fawaz and Greg Aslinger. 

EXHIBIT A: March 25 Motion. This Court set the matter for hearing on April 9, 

2015. 

Recently, in a letter dated March 26, 2015, the City Detroit has informed 

Southwest Metals that Southwest Metal’s business license will not be renewed due 

to “pending” violations of the Michigan Scrap Metal Regulatory Act. EXHIBIT B: 

March 26 Letter. Due to this non-renewal, Southwest Metal’s business license for 

2014-2015 expired on March 31, 2015. This letter does not specify the alleged 

pending violations. As such, Southwest Metals and undersigned counsel must 

assume that these alleged pending violations refer to the warrants and citations 

issued in March 2015 against Joseph Fawaz and Greg Aslinger. EXHIBIT C: 

March 2015 Warrant/Citations. No other reason is given for the non-renewal of 

Southwest Metal’s business license. This Court should be reminded that these 

warrants and citations were issued based on the investigations of Defendant Sgt. 

Rebecca McKay, the individual who Plaintiffs’ have alleged to have planted 

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evidence, requested the issuance of unfounded warrants, lied to prosecutors in order 

to reopen closed cases and obtain new warrants against Southwest Metals and Joseph 

Fawaz, and reissued properly dismissed citations without any prior knowledge of the 

underlying facts in an attempt to shut down Southwest Metals. As such, such 

warrants and citations are tainted by Sgt. Mckay’s unlawful conduct and the nonrenewal of the business license based on such circumstances is simply unbelievable. 

II. DENIAL OF BUSINESS APPLICATION RENEWAL

Chapter 30 of the 1984 Detroit City Code provides specific circumstances when 

the City of Detroit can opt to not renew a business license. EXHIBIT D: Chapter 

30 Detroit City Code. Specifically, Section 30-1-16 provides that upon proof 

submitted to the Business License Center of the following acts may be cause to deny 

a renewal application:

a. The violation of any state statute or this Code relating, controlling, or in 

any way relating to the location, construction, maintenance, use, 

qualification for or operation of a business similar to or the same as that 

for which a license is being considered, or engaging in an illegal, unfair, 

dishonest, deceitful or fraudulent business practice, which evidences a 

willful and deliberate disregard for the health, safety or welfare of either 

the patrons, employees or persons residing or doing business nearby, or 

competing businesses; 

b. Engaging in the same or similar business for which a license is required 

without first having obtained such license or, having obtained a license, 

engaging in the same or similar business during the period of suspension 

or after revocation; 

c. Allowing another person to use one's license; or

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d. Making any false, misleading or fraudulent statement of fact in the 

license application or in any document required by the City in 

conjunction therewith. 

e. Failure to provide the City with a completed application, as defined in 

Section 30-1-1 of this Code. 

 The City of Detroit’s denial of Southwest Metal’s business license renewal 

application is outrageous and in clear violation of the City Code as there has been 

no proof of any violation of any state statute. As of now, there is only alleged 

“pending” state statute violations. However, there is no proof that any state statute 

has actually been violated nor any actual conviction of any state statute. Instead, 

there is only the mere allegation of a state statute violation based upon the 

investigation of Sgt. McKay, a person with a personal vendetta against Plaintiffs. 

Denying a license renewal based upon the mere allegation of a violation of a state 

statute, which is not a proper justification as provided by the City Code, is simply 

outrageous and tantamount to referring to somebody as a convicted criminal based 

upon the mere fact that a criminal charge had been issued. At the end of the day, the 

City of Detroit could not take away Southwest Metal’s business license without a 

revocation hearing. Now, the City has moved to circumvent this requirement, in a 

clear violation of due process, by not renewing Southwest Metal’s business license 

without any justifiable reason. Again, simply put, it is the same government body 

who has been sued for unlawfully attempting to revoke a business license that is now 

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attempting to circumvent due process by denying a renewal based upon the same 

unlawful conduct that spearheaded the government’s attempt to revoke the license. 

 Denying the renewal of Southwest Metal’s business license without a timely 

hearing (i.e. almost immediate) is a denial of procedural due process as it effectively 

puts the company out of business, causing irreparable harm. A hearing or appeal

after the fact, although still a hearing, is of no actual use if people have lost their jobs 

and the business has either folded or collapsed. In other words, an untimely hearing 

is not a real hearing at all as it does not provide adequate protection to the aggrieved 

party. When determining whether sufficient process has been afforded, courts 

consider (1) the private interest that will be affected by the official action; (2) the 

risk of an erroneous deprivation of such interest through the procedures used, and 

probable value, if any, of additional procedural safeguards; and (3) the Government's 

interest, including the fiscal and administrative burdens that the additional or 

substitute procedures would entail. Mathews v. Eldridge, 424 U.S. 319 (1976). 

Courts have recognized the importance of depriving a person of a means of 

livelihood when determining the process due and the requirement of a hearing prior 

to taking detrimental action against an individual. Cleveland Bd. of Educ. v. 

Loudermill, 470 U.S. 532, 543 (1985) (citing Fusari v. Steinberg, 419 U.S. 379, 389 

(1975)). In the present case, it is obvious that not renewing a business license will 

have the impact of depriving several individuals, including plaintiffs, of their 

livelihood as the business that provides jobs for several people will be forced out of 

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business. Further, the pecuniary loss for Southwest Metal’s employees and the 

business itself will be substantial. Hooters, Inc v. City of Texarkana, 897 F. Supp. 

946, 949 (E.D. Tx. 1995) (recognizing importance of loss of consumer goodwill and 

pecuniary loss with regard to irreparable injury when granting a preliminary 

injunction to permit a business to remain open during a business licensing dispute).

Additionally, courts have held that pre-deprivation hearings when interests in 

licenses for operating a business are at issue are a critical and necessary part of 

providing adequate due process. See Pro’s Sports Bar & Grill, Inc., v. City of 

Country Club Hills, 589 F.3d 865, 872 (7th Cir. 2009) (affirming grant of 

preliminary injunction where city did not provide a pre-deprivation hearing or any 

other protections of the revocation process before restricting plaintiff’s business 

liquor license).

 The risk of erroneous deprivation of non-renewal is high due to the nonrenewal decision being based upon the mere “pending” alleged violations of a state 

statute and not actual, concrete violations of any statute. The risk of erroneous 

deprivation is amplified by the fact that Southwest Metals has a superb record free 

from violations and has had citations dismissed in the past. Instead of providing 

adequate and constitutionally required procedures, the City of Detroit decided to 

simply deny Plaintiffs of their livelihoods without even an opportunity to be heard. 

A TRO maintaining the status quo until the hearing on this matter on April 9 will 

help to prevent an erroneous deprivation. Similar TRO’s have been granted by 

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courts. See Net Connection Hayward, LLC v. City of Hayward, No. 13-1212-SC,

2013 U.S. Dist. LEXIS 100800, *15 (N.D. Cal, July 18, 2013) (granting TRO to 

maintain status quo of business while parties prepared to present evidence at 

preliminary injunction hearing).

 The above action by the City of Detroit is but one more outrageous example of 

specifically targeting and disparately treating Plaintiffs. Despite Plaintiffs having a 

record clear of violations or criminal convictions, the City of Detroit continues to 

attempt to put Southwest Metals out of business. Further, the City of Detroit 

continues to take action based upon the meritless investigations of Sgt. McKay and 

therefore continues to condone the unlawful conduct of Sgt. McKay. 

III. CONCLUSION

Defendants continue to unlawfully and unconstitutionally target Plaintiffs. For 

all of the aforementioned reasons, including the severe harm Plaintiffs have already 

suffered and will continue to suffer if relief is not granted, Plaintiffs respectfully 

request that this Honorable Court grant this motion for a temporary restraining order 

and a preliminary injunction and restrain the City of Detroit from not renewing 

Southwest Metals business license renewal application and reinstate Southwest 

Metal’s business license until at least the hearing presently scheduled before this 

Court on April 9, 2015, so that the status quo may be maintained. 

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Respectfully Submitted,

AYAD LAW, P.L.L.C. 

/s/ Nabih H. Ayad 

Nabih H. Ayad (P59518)

Attorney for Plaintiffs

645 Griswold Street, Suite 2202

Detroit, MI 48226

(313) 983-4600

Dated: April 6, 2015 nayad@ayadlaw.com

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