74 F.4th 1042
9th Cir.2023Background
- Hitoshi Yoshikawa, a Japanese national and lawful permanent resident, bought waterfront property near Honolulu and engaged in renovations beginning in 2014.
- Honolulu building inspector Troy Seguirant issued stop-work orders, cited code violations, and allegedly used a racial epithet while enforcing the code; Yoshikawa alleges discriminatory enforcement based on race.
- Yoshikawa sued asserting federal claims under 42 U.S.C. § 1981 and § 1983 and state-law claims; the district court dismissed Yoshikawa’s § 1983 claims against Seguirant with prejudice but allowed the § 1981 claim to proceed.
- Seguirant appealed the district court’s denial of qualified immunity; the Ninth Circuit retained jurisdiction over the interlocutory appeal to resolve whether an underlying cause of action exists.
- The Ninth Circuit held en banc that § 1981 does not provide an implied private cause of action against state actors (overruling Ninth Circuit precedent in Federation), and instructed the district court to allow Yoshikawa to replead his § 1981 theory as a § 1983 claim.
- A concurrence/dissent argued the court should have simply reclassified the pleaded § 1981 claim as a § 1983 claim and proceeded to decide qualified immunity, rather than remanding.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 1981 (as amended 1991) creates an implied private cause of action against state actors | § 1981(c) codifies protection against impairment by state actors and thus creates a remedy against state actors | Jett remains controlling; Congress did not clearly create a private remedy in § 1981 and left remedies against state actors to § 1983 | § 1981 does not create an implied cause of action against state actors; plaintiffs must sue under § 1983 to enforce § 1981 rights |
| Whether Federation v. City of Oakland correctly held § 1981(c) superseded Jett and authorized direct § 1981 suits against state actors | Federation correctly inferred congressional intent from § 1981(c) to provide parallel remedies against private and state actors | Federation misreads § 1981(c); subsequent Supreme Court guidance focuses solely on congressional intent and other circuits reject Federation | The court overruled Federation to the extent it recognized an implied § 1981 remedy against state actors |
| Proper procedural remedy when a plaintiff pleaded § 1981 against a state actor but not an adequate § 1983 claim | Yoshikawa: permit repleading so the substantive claim can proceed under § 1983 | Seguirant: (through appeal) argued qualified immunity and contested the underlying cause of action; some judges argued reclassification is appropriate | Court remanded and instructed the district court to allow Yoshikawa to replead the § 1981 claim as a § 1983 claim; a concurrence/dissent would have reclassified and decided the merits here |
| Effect on qualified immunity appeal and need for further proceedings | Yoshikawa would need leave to amend; the merits of qualified immunity were not resolved en banc | Seguirant sought adjudication of qualified immunity; dissent urged immediate resolution to avoid relitigation | The en banc majority declined to decide qualified immunity and remanded for repleading; concurrence/dissent objected to remand as inefficient |
Key Cases Cited
- Alexander v. Sandoval, 532 U.S. 275 (interpretation of when courts may infer implied private rights of action)
- Jett v. Dallas Indep. Sch. Dist., 491 U.S. 701 (§ 1983 is the exclusive federal remedy for violations of § 1981 by state actors)
- Runyon v. McCrary, 427 U.S. 160 (§ 1981 reaches private and governmental conduct; codified by Congress in § 1981(c))
- Cort v. Ash, 422 U.S. 66 (four-factor test historically used to infer private remedies)
- Monell v. Dep’t of Social Servs., 436 U.S. 658 (municipal liability requires policy or custom)
- Federation of African Am. Contractors v. City of Oakland, 96 F.3d 1204 (9th Cir. 1996) (previous Ninth Circuit panel holding § 1981(c) superseded Jett; overruled here)
- Brown v. Sessoms, 774 F.3d 1016 (D.C. Cir. 2014) (rejected Federation and reclassified § 1981 claim as § 1983 claim for purposes of review)