Opinion ID: 687590
Heading Depth: 2
Heading Rank: 1

Heading: The Existence of a Protected Property Right

Text: 13 The district court held that there is a fundamental right to water supply protected by the Due Process Clause. This is a novel ruling. We may take judicial notice of the fact that a multitude of local governments do not supply water to their residents, and there is no authority suggesting that these governmental units are in violation of the Constitution. To be sure, a denial of water supply to one resident while providing it to others in similar circumstances, or, as here, an exacting in the case of one applicant of onerous and extortionate conditions that were unrelated to the merits of the application, might give rise to an Equal Protection claim, see Cleburne v. Cleburne Living Center, Inc., 473 U.S. 432, 439, 105 S.Ct. 3249, 3254, 87 L.Ed.2d 313 (1985) (Equal Protection clause is essentially a direction that all persons similarly situated should be treated alike.), but no such claim was pleaded in this action. 14 However, we need not address this issue. Whether the Walzes had a property right was resolved as a matter of law, and the special interrogatories submitted to the jury focused upon Dowling's conduct in voiding the original excavation permit and refusing later to issue an unconditional permit. 3 See Note 1, supra. If the Walzes had, as a matter of law, a property interest in the issuance of an excavation permit, the district court's reliance upon a supposed property right in water supply would not affect the jury's verdict, although the deprivation of water supply would be relevant to damages. Because we believe that the Walzes had a property right in an excavation permit, we need not reach the issue of a right to water supply. 15 When an unsuccessful applicant for a governmental permit claims that an official or regulatory body has violated due process, the framework for evaluating the claim is the well-developed property interest analysis, which has its origins in the Supreme Court's decision in Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972). The focus of this analysis is on the nature of the applicant's interest in the approval being sought, specifically whether the applicant has a clear entitlement to the approval sought from the government official or administrative body. See, e.g., RRI Realty Corp. v. Incorporated Village of Southampton, 870 F.2d 911 (2d Cir.) (analyzing whether applicant possessed property interest in building permit), cert. denied, 493 U.S. 893, 110 S.Ct. 240, 107 L.Ed.2d 191 (1989); Sullivan v. Town of Salem, 805 F.2d 81, 84-85 (2d Cir.1986) (analyzing whether applicant possessed property interest in certificate of occupancy); Yale Auto Parts v. Johnson, 758 F.2d 54, 58-60 (2d Cir.1985) (analyzing whether applicant possessed property interest in permit to use property as automobile junkyard). 16 In Yale Auto Parts, 758 F.2d at 59, we stated that a legitimate claim of entitlement exists where, absent the alleged denial of due process, there is either a certainty or a very strong likelihood that the application would have been granted. This test focuses on the amount of discretion committed to the issuing authority, not the estimated probability that the authority would act favorably in a particular case. See RRI Realty, 870 F.2d at 918. As we observed in RRI Realty, [t]he 'strong likelihood' aspect of Yale Auto Parts comes into play only when the discretion of the issuing agency is so narrowly circumscribed that approval of a proper application is virtually assured; an entitlement does not arise simply because it is likely that broad discretion will be favorably exercised. Id. Put another way, [t]he fact that the permit could have been denied on non-arbitrary grounds defeats the federal due process claim. Id. 17 The standards governing the granting of permits for street excavations is set forth in Article IV of Chapter 245 of the Smithtown Code. Section 245-16 provides, in relevant part: 18 A. Applications, in writing, shall be filed with the Superintendent of Highways upon application blanks which he shall provide or in such other manner as he shall prescribe, which applications shall state the nature, location, extent and purpose of the proposed excavations. 19 B. Applications by public service companies, excluding municipal districts, must be accompanied by a general undertaking in such form as may be approved by the Town Board. Said general undertaking is tendered to assure that, after completing the excavation, said applicant leaves the street, highway or sidewalk, pavement, curb or gutter in the same condition it was prior to excavation. 20       21 D. Upon compliance with the foregoing requirements, a permit shall be issued in the name of the Superintendent of Highways of the Town of Smithtown. 22 We believe the discretion of the Superintendent of Highways to deny an excavation permit is so circumscribed that the Walzes possessed an entitlement to a permit. So long as an application form states the nature, location, extent and purpose of the proposed excavations, the Superintendent of Highways has no discretion to decline to issue a permit. The Smithtown Code thus states, a permit shall be issued. The only apparent ground for declining an excavation permit to a public utility is that the application did not provide all the designated information. Under such circumstances, the denial is not an exercise of discretion but the result of the fact that the applicant has not fulfilled the express requirements of the Code. In sum, no discretion existed for Dowling to void the permit, or to refuse to issue another permit. We therefore conclude that the Walzes had a property right in receiving an excavation permit from Dowling. 23 B. Substantive Due Process and Property Rights 24 We turn now to the question of whether property rights in governmental permits are subject to substantive, as well as procedural, due process. The Walzes make no claim that New York fails to provide procedural safeguards for their right to an excavation permit. Indeed, they availed themselves of those safeguards by bringing an Article 78 proceeding. Rather, they claim that they have a substantive due process right not to be subject to an arbitrary and capricious denial of an excavation permit. Appellants argue that the Walzes' sole due process rights lie in the guaranty of procedural safeguards. 25 Although not yet addressed by the Supreme Court, see Regents of Univ. of Michigan v. Ewing, 474 U.S. 214, 222-23, 106 S.Ct. 507, 511-12, 88 L.Ed.2d 523 (1985), the issue of whether substantive due process protects state-created property rights is resolved by precedents in this circuit that must be followed by a panel of this court. In Brady v. Town of Colchester, 863 F.2d 205 (2d Cir.1988), we expressly recognized with regard to the rights of landowners the distinction between procedural due process and substantive due process. We held that the landowner in question in that case was accorded adequate procedural safeguards, id. at 211, but that a remand was necessary to determine whether a local zoning board denied a permit because of arbitrary or irrational reasons, id. at 216. The remand was thus based on substantive due process. Id. at 211-16. There is some suggestion in RRI Realty that Brady and our earlier decision in Sullivan might be more properly based on the owner's indisputable property interest in the land rather than on a Roth analysis. See RRI Realty, 870 F.2d at 917. Nevertheless, Brady employed Roth in remanding, and, even if what is at stake is the Walzes' property interest in their land, that analysis would not, given the jury's answers to the special interrogatories, see Note 1 supra, alter the outcome in the instant matter. As landowners, the Walzes surely had a right not to be compelled to convey some of their land in order to obtain utility service. See Dolan v. City of Tigard, --- U.S. ----, ----, 114 S.Ct. 2309, 2317, 129 L.Ed.2d 304 (1994) (absence of nexus between permit condition and legitimate state interest converts valid land regulation into an out-and-out plan of extortion). C. Qualified Immunity 26 Appellants challenge also the district court's ruling that Dowling was not entitled to qualified immunity. The argument is entirely without merit. 27 Qualified immunity shields government officials from liability for damages on account of their performance of discretionary official functions. Ying Jing Gan v. City of New York, 996 F.2d 522, 531 (2d Cir.1993). However, by conditioning the issuance of a permit on the conveyance of land, Dowling was not exercising a discretionary function but simply refusing to perform a ministerial act until a demand with absolutely no basis in legal authority was met. 28 Qualified immunity exists  'to protect officials who are required to exercise their discretion'  and to encourage  'the vigorous exercise of official authority.'  Harlow v. Fitzgerald, 457 U.S. 800, 807, 102 S.Ct. 2727, 2732, 73 L.Ed.2d 396 (1982) (quoting Butz v. Economou, 438 U.S. 478, 506, 98 S.Ct. 2894, 2911, 57 L.Ed.2d 895 (1978)). Regardless of any doubts as to whether his conduct violated due process, Dowling could not have believed, as a matter of equal protection or simply of the laws of the town, that he had discretion to deny an excavation permit to the Walzes as a means of extorting land from them. Indeed, appellants offer no authority whatsoever that might have led Dowling to believe otherwise. He is, therefore, as a matter of law not entitled to qualified immunity. See Harlow, 457 U.S. at 816, 102 S.Ct. at 2737 (observing that qualified immunity is unavailable for ministerial tasks); Kaminsky v. Rosenblum, 929 F.2d 922, 925 (2d Cir.1991) (holding that qualified immunity doctrine applies where government official performs discretionary function, as distinct from ministerial function); see also Davis v. Scherer, 468 U.S. 183, 196 n. 14, 104 S.Ct. 3012, 3020 n. 14, 82 L.Ed.2d 139 (1984) (discussing ministerial duty exception to qualified immunity). D. Damages 29 Appellants next contend that the district court erred by allowing the jury to award compensatory damages based upon emotional distress and pain and suffering. However, [i]t is settled that a court may award damages for emotional suffering in a Sec. 1983 case. See Miner v. City of Glens Falls, 999 F.2d 655, 662 (2d Cir.1993); see also Ragin v. Harry Macklowe Real Estate Co., 6 F.3d 898, 907 (2d Cir.1993) (It is axiomatic that civil rights plaintiffs may recover compensatory damages for emotional distress.). The Walzes presented evidence of emotional distress to the jury. Mrs. Walz testified that she was shocked by her telephone conversation with Dowling on January 17, 1992. Mr. Walz testified that he became so upset when he found out about Dowling's threat that he started shaking. The jury was entitled to credit this testimony. See Miner, 999 F.2d at 662-63 (upholding jury award for emotional distress based upon testimony of plaintiff and his spouse). Furthermore, the jury was entitled to award damages for the Walzes' distress and discomfort at being without water for a protracted period. 30 Appellants further contend that the jury awards are excessive. However, [i]t is well settled that calculation of damages is the province of the jury. Ismail v. Cohen, 899 F.2d 183, 186 (2d Cir.1990). [T]he standard of appellate review of damage awards, whether compensatory or punitive, is whether the award is so high as to shock the judicial conscience and constitute a denial of justice. Id. (citations omitted). The jury awarded compensatory damages in the amount of $40,800 to Robert Walz, $40,800 to Lana Sue Walz, and $20,400 to Robert Walz, Jr. We do not find these amounts to be excessive. We have upheld larger awards for mental distress stemming from a constitutional tort, see id. at 187, and these awards include compensation for the inconvenience and hardship suffered by the Walzes because their home lacked running water. Nor do we find the punitive damage award of $9,500 to be excessive. See id. (upholding $150,000 punitive damage award). E. Attorney's Fees 31 Finally, appellants challenge the award of attorney's fees pursuant to the Civil Rights Attorney's Fees Award Act, 42 U.S.C. Sec. 1988. We review the district court's award for abuse of discretion, see Hensley v. Eckerhart, 461 U.S. 424, 437, 103 S.Ct. 1933, 1941, 76 L.Ed.2d 40 (1983), bearing in mind the high degree of deference owed to the district court, see Mautner v. Hirsch, 32 F.3d 37, 39 (2d Cir.1994). 32 We believe that the fee award of $48,276 was reasonable, both in terms of the hourly rate and the number of hours expended on the litigation. Moreover, the application in support of the fee request contained adequate documentation. We note that the district court properly excluded compensation for work performed in connection with litigating against the defendant Water Authority, which the jury found not liable. 33 Appellants contend that the district court's failure to hold an evidentiary hearing before making a fee award of this magnitude violated their right to due process. However, awards of comparable size are routinely made without an evidentiary hearing, cf. Hensley, 461 U.S. at 437, 103 S.Ct. at 1941 (A request for attorney's fees should not result in a second major litigation.), and we are informed of nothing that would be developed in such a hearing that would alter the outcome. 34 Affirmed.