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Home Court filings Harlem Globetroters International, Inc. v. Small Business Administration case — U.S. District Court, D.D.C. Answer — Harlem Globetrotters International, Inc. v. Small Business Administration (Dkt…

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Answer — Harlem Globetrotters International, Inc. v. Small Business Administration (Dkt. 10)

Summary

The answer of the Small Business Administration and Administrator Isabella Casillas Guzman, in her official capacity, in Harlem Globetrotters International, Inc. v. Small Business Administration, et al., Civil Action No. 24-1164 (RBW), in the U.S. District Court for the District of Columbia, filed June 28, 2024 as Document 10. It responds paragraph by paragraph to the complaint (ECF No. 1), brought under the Administrative Procedure Act, 5 U.S.C. § 706, and denies any allegation not specifically admitted. The answer admits that the SBA began accepting applications on April 26, 2021 and responds to the complaint's background on the Shuttered Venue Operators Grant Program and the plaintiff's application for SVOG funding. It is signed by Assistant U.S. Attorney Bradley G. Silverman.

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Filed June 28, 2024 in Harlem Globetroters International, Inc. v. Small Business Administration; one of 1 filings from this case.

Record facts

CourtU.S. District Court for the District of Columbia
Filed2024-06-28

Cite this document

“Answer — Harlem Globetrotters International, Inc. v. Small Business Administration (Dkt. 10, D.D.C.).” U.S. District Court for the District of Columbia, No. 1:24-cv-01164, Doc. 10, filed 2024-06-28. Archived at Pandemic Darlings, https://pandemicdarlings.com/court-filings/full-docket-small-business-administration-dcd-267612/2024-06-28-gov-uscourts-dcd-267612-10-0-doc-10/, SHA-256 8a07161ea5534aee5e208eb4d6456004d18ba61ef04d0d913009652d7dc638fa.

Full text

Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 1 of 12




                               UNITED STATES DISTRICT COURT
                               FOR THE DISTRICT OF COLUMBIA


 HARLEM GLOBETROTERS
 INTERNATIONAL, INC.,

                 Plaintiff,
                                                            Civil Action No. 24-1164 (RBW)
         v.

SMALL BUSINESS
ADMINISTRATION, et al.,

                 Defendants.


                                               ANSWER

        Defendants Small Business Administration (“SBA”) and Isabella Casillas Guzman, in her

official capacity as SBA Administrator, by and through the undersigned counsel, respond as follows

to the separately numbered paragraphs and prayer for relief in Plaintiff Harlem Globetrotters

International, Inc.’s Complaint, ECF No. 1, in this case under the Administrative Procedure Act,

5 U.S.C. § 706. Any allegations not specifically admitted, denied, or otherwise responded to below

are hereby denied. To the extent the Complaint refers to or quotes from external documents, statutes,

or other sources, Defendants may refer to such materials for their complete and accurate contents,

but such references are not intended to be, and should not be construed as, an admission that the

cited materials are (a) correctly cited or quoted by Plaintiff, (b) relevant to this, or any other, action,

or (c) admissible in this, or any other, action. For ease of reference, this Answer replicates the

headings contained in the Complaint. Although Defendants believe that such headings require no

response, to the extent that a response is deemed required and those headings and titles could be

construed to contain factual allegations, those allegations are denied.

         Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 2 of 12




                                         INTRODUCTION

       1.      The first sentence of this paragraph consists of a quotation allegedly of Albert

Einstein. Defendants lack knowledge or information sufficient to form a belief as to whether the

quotation is authentic. The substance of the quotation is a statement of opinion, which requires no

response. The remainder of this paragraph consists of Plaintiff’s characterization of its alleged

actions, circumstances, and reasons for bringing suit, which require no response.

       2.      This paragraph consists of Plaintiff’s characterization of a federal statute and SBA’s

implementation of it. Defendants aver that the statute is the best evidence of its contents, respectfully

refer the Court to the statute for a complete and accurate statement of its contents and deny any

allegations inconsistent therewith. Defendants admit that SBA began accepting applications on

April 26, 2021.

       3.      Admitted except as to Plaintiff’s characterization of SBA’s decision as conclusory

and unreasoned, which are characterizations and legal conclusions that require no response.

       4.      Defendants dispute Plaintiff’s characterization of the Notice of Award as “executed,”

but otherwise admit.

       5.      Admitted.

       6.      Admitted.

       7.      Admitted.

       8.      Admitted.

       9.      This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants respectfully refer the Court to the transcript for a

complete and accurate statement of its contents and deny any allegations inconsistent therewith.




                                                   2

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 3 of 12




       10.     This paragraph consists of Plaintiff’s quotation from and characterization of a

hearing transcript, which is the best evidence of its contents. Defendants refer the Court to the

transcript for a complete and accurate statement of its contents and deny any allegations inconsistent

therewith.

       11.     This paragraph purports to quote from and characterize a treatise, which is the best

evidence of its contents. Defendants respectfully refer the Court to the treatise for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       12.     This paragraph consists of legal conclusions, which require no response, and

purports to quote from and characterize a treatise, which is the best evidence of its contents.

Defendants respectfully refer the Court to the treatise for a complete and accurate statement of its

contents and deny any allegations inconsistent therewith.

       13.     This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants refer the Court to the transcript for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       14 .    The first sentence of this paragraph consists of Plaintiff’s characterization of its

alleged actions, which requires no response. Defendants deny the second sentence, which contains

an embedded legal conclusion that requires no response.

       15.     This paragraph consists of legal conclusions, which requires no response.

       16.     This paragraph consists of legal conclusions, which requires no response.

       17.     This paragraph consists of legal conclusions, which requires no response. To the

extent a response is required, Defendants lack knowledge or information sufficient to form a belief

as to the truth of the allegations in this paragraph.




                                                 3

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 4 of 12




                                 JURISDICTION AND VENUE

       18.     This paragraph consists of legal conclusions, which require no response.

       19.     This paragraph consists of legal conclusions, which require no response.

       20.     This paragraph purports to quote from and characterize a statute, which is the best

evidence of its contents. Defendants respectfully refer the Court to the statute for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       21.     This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants refer the Court to the transcript for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       22.     This paragraph consists of legal conclusions, which require no response.

       23.     This paragraph consists of legal conclusions, which require no response.

       24.     This paragraph consists of legal conclusions, which require no response.

       25.     This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants refer the Court to the transcript for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       26.     This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants refer the Court to the transcript for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       27.     This paragraph consists of legal conclusions, which require no response.

       28.     This paragraph consists of legal conclusions, which require no response.

                                             PARTIES

       29.     Defendants lack knowledge or information sufficient to form a belief as to the truth

of the allegations in this paragraph.




                                                 4

         Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 5 of 12




       30.     Admitted.

       31.     Admitted.

                                          BACKGROUND

A. Shuttered Venue Operators Grant Program

       32.     This paragraph purports to characterize statutes, which are the best evidence of their

contents. Defendants respectfully refer the Court to the statutes for a complete and accurate

statement of their contents and deny any allegations inconsistent therewith.

       33.     This paragraph purports to characterize a statute, which is the best evidence of its

contents. Defendants respectfully refer the Court to the statute for a complete and accurate statement

of its contents and deny any allegations inconsistent therewith.

       34.     This paragraph purports to characterize a statute, which is the best evidence of its

contents. Defendants respectfully refer the Court to the statute for a complete and accurate statement

of its contents and deny any allegations inconsistent therewith.

       35.     This paragraph consists of legal conclusions, which require no response.

B. HGI Applies for SVOG Funding.

       36.     Admitted.

       37.     Admitted.

       38.     Defendants lack knowledge or information sufficient to form a belief as to the truth

of the allegations in the first sentence of this paragraph. The second sentence purports to characterize

the documents that Plaintiff submitted in support of its grant application, which are the best evidence

of their contents. Defendants respectfully refer the Court to the documents for a complete and

accurate statement of their contents and deny any allegations inconsistent therewith.

       39.     Admitted.




                                                  5

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 6 of 12




       40.     Admitted.

       41.     Admitted except as to Plaintiff’s characterization of the notice as conclusory, which

is a legal conclusion that requires no response.

C. HGI Files in This District Court Seeking Relief and SBA Agrees

       42.     This paragraph purports to characterize a complaint, which is the best evidence of

its contents. Defendants respectfully refer the Court to the complaint for a complete and accurate

statement of its contents and deny any allegations inconsistent therewith.

       43.     This paragraph purports to characterize a complaint, which is the best evidence of

its contents. Defendants respectfully refer the Court to the complaint for a complete and accurate

statement of its contents and deny any allegations inconsistent therewith.

       44.     This paragraph consists of legal conclusions, which require no response.

       45.     Admitted.

       46.     Defendants dispute Plaintiff’s characterization of the Notice of Award as “executed,”

but otherwise admit.

       47.     This paragraph purports to characterize a website, which is the best evidence of its

contents. Defendants respectfully refer the Court to the website for a complete and accurate

statement of its contents and deny any allegations inconsistent therewith.

       48.     This paragraph purports to quote from and characterize a Notice of Award, which is

the best evidence of its contents. Defendants respectfully refer the Court to the Notice of Award for

a complete and accurate statement of its contents and deny any allegations inconsistent therewith.

       49.     This paragraph purports to quote from and characterize a Notice of Award, which is

the best evidence of its contents. Defendants respectfully refer the Court to the Notice of Award for

a complete and accurate statement of its contents and deny any allegations inconsistent therewith.




                                                 6

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 7 of 12




       50.     Defendants admit the first sentence of this paragraph and lack knowledge or

information sufficient to form a belief as to the truth of the allegations in the second sentence.

       51.     Defendants lack knowledge or information sufficient to form a belief as to the truth

of the allegations in this paragraph.

       52.     This paragraph purports to characterize a website, which is the best evidence of its

contents. Defendants respectfully refer the Court to the website for a complete and accurate

statement of its contents and deny any allegations inconsistent therewith.

D. SBA Concedes Award to HGI But Refuses to Distribute Funds

       53.     Defendants deny that they informed Plaintiff that SBA had “awarded” it funds, but

otherwise admit the allegations in this paragraph.

       54.     This paragraph purports to characterize a statute, which is the best evidence of its

contents. Defendants respectfully refer the Court to the statute for a complete and accurate statement

of its contents and deny any allegations inconsistent therewith.

       55.     This paragraph purports to quote from and characterize a statute, which is the best

evidence of its contents. Defendants respectfully refer the Court to the statute for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       56.     This paragraph consists of legal conclusions, which require no response.

       57.     The first sentence of this paragraph purports to quote from and characterize a hearing

transcript, which is the best evidence of its contents. Defendants respectfully refer the Court to the

hearing transcript for a complete and accurate statement of its contents and deny any allegations

inconsistent therewith. The second sentence consists of legal conclusions, which require no

response.




                                                 7

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 8 of 12




E. HGI’s Jurisdictional Ping Pong

       58.     Defendants dispute Plaintiff’s characterization of its communication to Plaintiff, but

otherwise admit.

       59.     Defendants lack knowledge or information sufficient to form a belief as to the truth

of the allegations in this paragraph. To the extent a response is required, this paragraph purports to

quote from and characterize a judicial opinion, which is the best evidence of its contents. Defendants

respectfully refer the Court to the judicial opinion for a complete and accurate statement of its

contents and deny any allegations inconsistent therewith.

       60.     This paragraph purports to quote from and characterize a judicial opinion, which is

the best evidence of its contents. Defendants respectfully refer the Court to the judicial opinion for

a complete and accurate statement of its contents and deny any allegations inconsistent therewith.

       61.     Defendants dispute Plaintiff’s characterization of the Notice of Award as “executed,”

but otherwise admit.

       62.     This paragraph purports to characterize a complaint, which is the best evidence of

its contents. Defendants respectfully refer the Court to the complaint for a complete and accurate

statement of its contents and deny any allegations inconsistent therewith.

       63.     This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants refer the Court to the transcript for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       64.     This paragraph purports to quote from and characterize a judicial opinion, which is

the best evidence of its contents. Defendants respectfully refer the Court to the judicial opinion for

a complete and accurate statement of its contents and deny any allegations inconsistent therewith.

       65.     This paragraph purports to characterize this suit, which requires no response.




                                                 8

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 9 of 12




       66.     This paragraph consists of legal conclusions, which require no response.

       67.     This paragraph consists of legal conclusions and Plaintiff’s characterization of its

alleged actions and the relief required, which require no response.

COUNT I (AGAINST ALL DEFENDANTS): SBA’S DENIAL OF HGI’S ACCESS TO SVOG FUNDS IS
ARBITRARY, CAPRICIOUS, AN ABUSE OF DISCRETION, AND NOT IN ACCORDANCE WITH THE
                                     LAW.

       68.     Defendants reallege and incorporate their responses to each of the proceeding

paragraphs as if fully set forth herein.

       69.     This paragraph purports to quote from and characterize a statute, which is the best

evidence of its contents. Defendants respectfully refer the Court to the statute for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       70.     This paragraph consists of legal conclusions, which require no response.

       71.     This paragraph consists of legal conclusions, which require no response.

       72.     This paragraph consists of legal conclusions, which require no response.

   COUNT II: SBA’S DECISION TO WITHHOLD FUNDS BASED ON THE CAA IS ARBITRARY,
    CAPRICIOUS, AN ABUSE OF DISCRETION, AND NOT IN ACCORDANCE WITH THE LAW.

       73.     Defendants reallege and incorporate their responses to each of the proceeding

paragraphs as if fully set forth herein.

       74.     This paragraph consists of legal conclusions, which require no response.

       75.     Admitted.

       76.     This paragraph consists of legal conclusions, which require no response.

       77.     This paragraph consists of legal conclusions, which require no response.




                                                9

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 10 of 12




COUNT III: SBA’S INTERPRETATION OF “OBLIGATION” IS ARBITRARY, CAPRICIOUS, AN ABUSE
               OF DISCRETION, AND NOT IN ACCORDANCE WITH THE LAW.

       78.     Defendants reallege and incorporate their responses to each of the proceeding

paragraphs as if fully set forth herein.

       79.     This paragraph consists of legal conclusions, which require no response.

       80.     This paragraph purports to quote from and characterize a hearing transcript, which

is the best evidence of its contents. Defendants refer the Court to the transcript for a complete and

accurate statement of its contents and deny any allegations inconsistent therewith.

       81.     This paragraph consists of legal conclusions, which require no response.

       82.     This paragraph consists of legal conclusions, which require no response.

                               COUNT IV: PROMISSORY ESTOPPEL

       83.     Defendants reallege and incorporate their responses to each of the proceeding

paragraphs as if fully set forth herein.

       84.     This paragraph purports to quote from and characterize a Notice of Award, which is

the best evidence of its contents. Defendants respectfully refer the Court to the Notice of Award for

a complete and accurate statement of its contents and deny any allegations inconsistent therewith.

       85.     Defendants lack knowledge or information sufficient to form a belief as to the truth

of the allegations in this paragraph.

       86.     This paragraph consists of legal conclusions, which require no response.

       87.     Defendants lack knowledge or information sufficient to form a belief as to the truth

of the allegations in this paragraph.




                                                10

        Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 11 of 12




                                      PRAYER FOR RELIEF

       The remaining paragraphs consist of Plaintiff’s prayer for relief, which require no response.

To the extent a response is required, Defendants deny that Plaintiff is entitled to the relief requested

or to any relief whatsoever.

                                           *        *      *

       In further response to the Complaint, Defendants raise the following defenses. Defendants

respectfully request and reserve the right to amend, alter, and supplement the defenses contained in

this Answer as the facts and circumstances giving rise to the Complaint become known to

Defendants throughout the course of this litigation.

                                               First Defense

       Sovereign immunity bars a portion of Plaintiff’s requested relief.

                                           Second Defense

       Defendants have no clear, ministerial duty to disburse grant funds.

                                            Third Defense

       SBA’s decision was the product of reasoned decision making, supported by record evidence,

and consistent with the law.



                                           *        *      *




                                                   11

       Case 1:24-cv-01164-RBW Document 10 Filed 06/28/24 Page 12 of 12




                                         Fourth Defense

      Plaintiff is neither eligible for nor entitled to attorney’s fees or costs.

Dated: June 28, 2024                         Respectfully submitted,

                                             MATTHEW M. GRAVES, D.C. Bar No. 481052
                                             United States Attorney

                                             BRIAN P. HUDAK
                                             Chief, Civil Division

                                             By: /s/ Bradley G. Silverman
                                               BRADLEY G. SILVERMAN
                                               Assistant United States Attorney
                                               D.C. Bar No. 1531664
                                               601 D Street NW
                                               Washington, D.C. 20530
                                               (202) 252-2575
                                               bradley.silverman@usdoj.gov

                                             Attorneys for the United States of America




                                               12

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