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2:16-cv-10291-AC-MKM Doc # 56 Filed 12/01/17 Pg 1 of 3 Pg ID 877

UNITED STATES DISTRICT COURT


EASTERN DISTRICT OF MICHIGAN
SOUTHERN DIVISION

UNITED STATES OF AMERICA,


ex rel BEVERLY TRAN, Civil No. 16-cv-10291
Hon.: Avern Cohn
Plaintiff, Mag. Mona K. Majzoub
vs.
DETROIT LAND BANK AUTHORITY, a Michigan public
body corporate, et al.

Defendants.
____________________________________________________________________________________/

DEFENDANTS DETROIT LAND BANK AUTHORITY AND DETROIT LAND BANK


COMMUNITY DEVELOPMENT CORPORATIONS REPLY BRIEF IN SUPPORT OF
THEIR MOTION TO DISMISS THE AMENDED COMPLAINT

DISCUSSION
The Relators response to Defendants Detroit Land Bank Authority (DLBA) and Detroit

Land Bank Community Development Corporations Motion to Dismiss, filed November 16, 2017,

offers no new arguments to bolster her contention that Defendants have violated the False Claims

Act (FCA) therefore this matter should survive. Defendants have articulated in their Motion to

Dismiss that Relator 1) has failed to establish a prima facie case under the FCA and is thus subject

to dismissal in accordance with Fed. R. Civ. P. 12(b)(6), 2) has failed to plead with particularity

as to the claim, subject to Fed. R. Civ. P.9(b), 3) fails to state a plausible claim subject to Rule

12(b)(6) and 4) the Court lacks subject matter jurisdiction as to the claim because the Relator

cannot as a matter of law represent any persons other than herself subject to Fed. R. Civ. P.

12(h)(3).
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The Relator has failed to address the distinct and numerous grounds for dismissal in her

Response, filed on November 16, 2017, thus acknowledging the lack of substantive ability to

withstand even the most lenient scrutiny. Instead, she asserts that this Court must accept all the

Relators allegations set forth as true. Unfortunately, her reliance on Tellabs, Inc v Makor Issues

& Rights, Ltd, 551 US 308 (2007) is misplaced and distinguishable. In Tellabs the court analyzed

the sufficiency of the plaintiffs pleadings under the Private Securities Litigation Reform Act of

1995 (PSLRA) and Rule 12 (b)(6). Moreover, the Court held that Third, in determining whether

the pleaded facts give rise to a "strong" inference of scienter, the court must take into account

plausible opposing inferences. Id at 313. Simply put, Tellabs does not ask the Court to set aside

reason simply because a plaintiff has enough imagination to make an allegation. Defendants posit

that the Courts holding in Bell Atlantic Corp v. Twombly is directly relevant as it sets the

fundamental requirements to survive a 12(b)(6) motion, on a motion to dismiss, the courts are not

bound to accept as true a legal conclusion couched as a factual allegation. Bell Atlantic Corp v

Twombly, 550 US 544, 555; 127 S Ct 1955; 167 L Ed 2d 929 (2007).

Moreover, taking the Relators claims as well plead factual allegations does not give rise

to any violation under the FCA. The Relators claims, despite the numerous and publicly accessible

information to the contrary, continue to assert that Defendant DLBA is not a lawfully organized

governmental entity. See Ex. 1- Defendant DLBA s Official Copy of its Intergovernmental

Agreements. Yet, she has not because she cannot - produce any specific claim against Defendants

in violation of the FCA. The Relator continues to only offer her unreasonable suspicion that some

vague and vast conspiratorial wrong doing has occurred.


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The Relator has not responded with a single reason as to why this case should survive. The

Relator does not attempt to refute any of the analysis provided in Defendants Motion to Dismiss

nor to provide any supporting authority which does not exist. The Relators failure to make a

substantive response to Defendants Motion to Dismiss but instead cling to her bare allegations is

a tacit acknowledgment of the lack of sustainability of this matter. In light of the multiple fatal

flaws in the Relators claim and her failure to oppose the motion with any meritorious arguments,

Defendants submit that their dispositive motion should be granted.

Respectfully submitted,

/s/ J. Gabriel Guerrero____________________


J. GABRIEL GUERRERO (P72691)

/s/ Tere M. McKinney____________________


TERE M. MCKINNEY (P71567)
Attorneys for Detroit Land Bank Authority and
Detroit Land Bank Community Development
Corporation
500 Griswold Street, Suite 1200
Detroit, MI 48226
(313) 261-9926
gguerrero@detroitlandbank.org
tmckinney@detroitlandbank.org

CERTIFICATE OF SERVICE:

I hereby certify that on December 1, 2017, I electronically filed DEFENDANTS DETROIT


LAND BANK AUTHORITY AND DETROIT LAND BANK COMMUNITY
DEVELOPMENT CORPORATIONS REPLY BRIEF IN SUPPORT OF THEIR MOTION
TO DISMISS THE AMENDED COMPLAINT with the Clerk of the Court using the ECF
System, which provides electronic copies to counsel of record.

Respectfully submitted,

/s/ Tere M. McKinney


TERE M. MCKINNEY (P71567)