748 F.3d 21
1st Cir.2014Background
- Parties included Suiza Dairy, Inc., Vaquería Tres Monjitas, Inc., PR government officials, and ORIL;
- Settlement Agreement Oct. 29, 2013 implemented Regulation 12 and created a Special Fund for milk market efficiency;
- Agreement provided for regulatory accruals to Suiza and VTM and a study within 12 months;
- District court approved the Agreement, incorporated its covenants, and retained jurisdiction through 2017 for compliance;
- A third paragraph stated that the court’s view was that the Commonwealth’s voluntary signatures constituted an Eleventh Amendment waiver, which became the focus of dispute;
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Eleventh Amendment waiver was necessary to the judgment | Suiza argues waiver language was not essential to judgment. | ORIL contends there was no unequivocal waiver; language was not necessary. | Waiver statement was dicta and not required. |
| Whether the district court violated constitutional avoidance by addressing Eleventh Amendment issues | Avoidance principle requires not deciding constitutional issues if other grounds exist. | The court's statement could address waiver though not essential. | Court should have avoided addressing Eleventh Amendment issues. |
| Whether the appeal is properly before the court given the district court’s order | Appeal challenges the order’s waiver language. | Walter: lack of appellate jurisdiction as issue is dicta. | Appeal dismissed for want of appellate jurisdiction. |
Key Cases Cited
- Frew ex rel. Frew v. Hawkins, 540 U.S. 431 (U.S. 2004) (enforceability under Ex parte Young; waiver not necessary to decide)
- Edelman v. Jordan, 415 U.S. 651 (U.S. 1974) (stringent waiver standard for Eleventh Amendment)
- New Hampshire v. Ramsey, 366 F.3d 1 (1st Cir. 2004) (waiver by consent or participation in a federal program)
- Hess v. Port Authority Trans-Hudson Corp., 513 U.S. 30 (U.S. 1994) (Eleventh Amendment protection of state sovereignty)
- Sony BMG Music Entm't v. Tenenbaum, 660 F.3d 487 (1st Cir. 2011) (constitutional avoidance doctrine applied to unnecessary constitutional questions)
- Watchtower Bible & Tract Soc'y v. Colombani, 712 F.3d 6 (1st Cir. 2013) (distinguish non-final district court language from final judgment)
- San Juan v. Rullan, 318 F.3d 26 (1st Cir. 2003) (principle of avoiding unnecessary constitutional rulings)