Lead Opinion
OPINION OF THE COURT
This is an appeal from a final order of the district court dismissing the plaintiff’s discrimination claim, brought under Title VI of the Civil Rights Act of 1964, 42 U.S.C. § 2000d et seq. (1976) (Title VI), for failure to exhaust his administrative remedies. Chowdhury v. Reading Hospital and Medical Center,
“Plaintiff’s failure to seek administrative redress of his Title VI claims requires dismissal of the present complaint. ... If the parties cannot amicably resolve their differences and other administrative remedies prove ineffective, plaintiff may return to the courts for relief. Accordingly, defendant’s motion to dismiss will be granted.”
Id. at 135 (citations omitted). This court has jurisdiction under 28 U.S.C. § 1291 (1976).
Because we believe this conclusion to be inconsistent with expressions found in previous opinions of this court and the Supreme Court, we will reverse.
I.
These facts are alleged in the complaint:
The defendant is a non-profit corporation operating a hospital in West Reading, Pennsylvania. It has received various sorts of federal financial assistance within the meaning of section 601 of Title VI, 42
The plaintiff sought and was denied courtesy staff privileges at the defendant hospital. He alleges that this denial was based upon his race and thus violated section 601. As a result of this denial, and without contacting the hospital’s federal funding agency or otherwise seeking an administrative remedy, the plaintiff brought this action. As set forth above, the district court dismissed the complaint for failure to exhaust administrative remedies.
This appeal followed.
II.
Section 601 states a broad and sweeping rule of non-discrimination in any program receiving federal financial assistance:
“No person in the United States shall, on the ground of race, color or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistanee.”
42 U.S.C. § 2000d (1976). Its twin purposes are clear: “to avoid the use of federal resources to support discriminatory practices ... [and] to provide individual citizens effective protection against those practices.” Cannon v. University of Chicago,
Since the enactment of Title VI, the courts have found that Congress intended to protect the interests of individual discriminatees by implying a private cause of action for injunctive relief under section 601. Cannon v. University of Chicago,
“These considerations led to the enactment of sections 602 and 603. Congress was concerned with limiting the power of*321 federal agencies to bring about compliance with section 601, not with limiting private rights under section 601. That sections 602 and 603 are limits on agencies, and not on rights, is repeatedly made clear in the legislative proceedings.
“To imply a private cause of action, we must find that such a cause would be consistent with the underlying purposes of the legislative scheme. A private cause of action under Title VI to seek declaratory and injunctive relief is entirely consistent with the legislative scheme. We find it impossible to square the plaintiffs’ peripheral role in the section 602 and 603 process with their critical status as protected beneficiaries under section 601, unless section 601 is read to include a right of action distinct from the limitations of sections 602 and 603. The very fact that private parties are normally precluded from advancing their section 601 rights before the administrative agency makes more compelling the implication of a private remedy under Title VI. As the Supreme Court has noted, when there is a legal right without a legal remedy, the right has little meaning.”
Id. at 1254-55 (footnotes and citations omitted).
Thus, the argument in favor of an exhaustion requirement — potential interference with the administrative enforcement scheme of sections 602 and 603 — is precisely the argument rejected by this court in Wilmington Medical Center. Indeed, the court explicitly stated that “we hold that there exists a private cause of action under section 601 of Title VI which may be asserted without preliminary recourse to agency remedial procedures.... ”
“It has been suggested that, at least in the absence of an exhaustion requirement, private litigation will interfere with HEW’s enforcement procedures under § 902 of Title IX. The simple answer to this suggestion is that the Government itself perceives no such interference under the circumstances of this case, and argues that if the possibility of interference arises in another case, appropriate action can be taken by the relevant court at that time....
“In addition, Congress itself was apparently not worried about such interference when it passed Title IX.. . .
“True, this Court has sometimes refused to imply private rights of action where administrative or like remedies are expressly available.... But it has never withheld a private remedy where the statute explicitly confers a benefit on a class of persons and where it does not assure those persons the ability to activate and participate in the administrative process contemplated by the statute.... As the Government itself points out in this case, Title IX not only does not provide such a mechanism, but the complaint procedure adopted by HEW does not allow the complainant to participate in the investigation or subsequent enforcement proceedings. Moreover, even if those proceedings result in a finding of a violation, a resulting voluntary compliance agreement need not include relief for the complainant.... Furthermore, the agency may simply decide not to investigate — a decision that often will be based on a lack of enforcement resources, rather than on any conclusion on the merits of the complaint.... In that case, if no private remedy exists, the complainant is relegated to a suit under the Administrative Procedure Act to compel the agency to investigate and cut off funds....*322 But surely this alternative is far more disruptive of HEW’s efforts efficiently to allocate its enforcement resources under Title IX than a private suit against the recipient of federal aid could ever be.
“For these same reasons, we are not persuaded that individual suits are inappropriate in advance of exhaustion of administrative remedies. Because the individual complainants cannot assure themselves that the administrative process will reach a decision on their complaints within a reasonable time, it makes little sense to require exhaustion.”
III.
For the foregoing reasons, the judgment of the district court will be reversed and the
Notes
. On appeal from the dismissal of the plaintiffs action under Fed.R.Civ.P. 12(b)(6), the facts stated in his complaint must be accepted as true.
. The Cannon Court recognized that Title IX of the Civil Rights Act of 1964, which was at issue in that case, “was patterned after Title VI”
. Section 602 provides in pertinent part:
“Compliance with any requirement adopted pursuant to this section may be effected (1) by the termination of or refusal to grant or to continue assistance under such program or activity to any recipient as to whom there has been an express finding on the record, after opportunity for hearing, of a failure to comply with such requirement, but such termination or refusal shall be limited to the particular political entity, or part thereof, or other recipient as to whom such a finding has been made and, shall be limited in its effect to the particular program, or part thereof, in which such noncompliance has been so found, or (2) by any other means authorized by law: Provided, however, That no such action shall be taken until the department or agency concerned has advised the appropriate person or persons of the failure to comply with the requirement and has determined that compliance cannot be secured by voluntary means.”
42 U.S.C. § 2000d-l (1976).
. See 45 C.F.R. § 80.7(b) (1980). This section provides:
“(b) Complaints. Any person who believes himself or any specific class of individuals to be subjected to discrimination prohibited by this part may by himself or by a representative file with the responsible Department official or his designee a written complaint. A complaint must be filed not later than 180 days from the date of the alleged discrimination, unless the time for filing is extended by the responsible Department official or his designee.”
. See 45 C.F.R. § 80.9(d) (1980). The regulations state that the funding termination hearing shall be held “in conformity with section 5-8 of the Administrative Procedure Act” and that “the Department and the applicant or recipient shall be entitled to introduce all relevant evidence on the issues.... ” Id. (emphasis added). There is no provision for participation by an individual complainant.
. Compare 42 U.S.C. § 2000d-l (1976) (Title VI funding termination procedure) with 42 U.S.C. § 2000e-5 (1976) (Title VII enforcement provisions granting broad authority to the EEOC to seek individual remedies in employment discrimination cases).
. See 42 U.S.C. § 2000d-2 (1976). Section 603 provides:
“Any department or agency action taken pursuant to section 2000d-l of this title shall be subject to such judicial review as may otherwise be provided by law for similar action taken by such department or agency on other grounds. In the case of action, not otherwise subject to judicial review, terminating or refusing to grant or to continue financial assistance upon a finding of failure to comply with any requirement imposed pursuant to section 2000d-l of this title, any person aggrieved (including any State or political subdivision thereof and any agency of either) may obtain judicial review of such action in accordance with chapter 7 of Title 5, and such action shall not be deemed committed to unreviewable agency discretion within the meaning of that chapter.”
Although it is not clear from this language whether a decision not to terminate funding is reviewable or whether an individual beneficiary can ever be a “person aggrieved” within the meaning of this section, see Cannon v. University of Chicago,
. In Regents of the University of California v. Bakke,
. Although Wilmington Medical Center held that intended beneficiaries of a federally funded program have a private cause of action for declaratory and injunctive relief under section 601, it is not clear whether the plaintiff here stands in the position of an intended beneficiary. We note that other circuits that have addressed the question of whether section 601 provides a cause of action for employment discrimination have required proof that the primary purpose of the funding was to provide employment. See, e.g., Ass’n Against Discrimination v. City of Bridgeport,
. We note that our Wilmington Medical Center decision reversed the contrary decision of the district court, N.A.A.C.P. v. Wilmington Medical Center,
. See note 2 above.
. It also bolsters our conclusion that this result was anticipated by our Wilmington Medical Center decision which relied upon this precise language from Cannon. See
. Dr. Chowdhury sought courtesy staff privileges on the hospital’s medical staff, rather than “employment” as a member of the medical staff, as the dissent so indicates. Regardless, the equation made by the dissent between Title VII, a statute proscribing employment discrimination, and Title VI, a statute prohibiting discrimination with respect to participation in federally funded programs, is inapposite insofar as exhaustion requirements are concerned. The Title VII enforcement provisions include an explicit statutory requirement of exhaustion before a private litigant may bring a court action. See 42 U.S.C. § 2000e-5(f)(1). No such requirements were contemplated or enacted by Congress for application in the Title VI context. Cf. Cannon (Title IX). Moreover, unlike Title VI, Title VII explicitly provides administrative enforcement powers entirely suitable for resolving individual claims of discrimination. Under Title VII, the EEOC is empowered to bring civil suits seeking reinstatement, back pay, and injunctive relief. 42 U.S.C. § 2000e-5(g). In contrast, while certain regulations have been promulgated looking toward administrative resolution of disputes, see 45 C.F.R. § 80.7, the termination of federal funding, which is the only real administrative weapon under Title VI, is completely inadequate for providing relief to individual complainants. Indeed, we suggest that the very last sanction Dr. Chowdhury would encourage would be the cessation of federal funding which might shut down the hospital, thereby depriving him of any opportunity to join its staff.
. See Santiago v. City of Philadelphia,
. In Wilmington Medical Center, we held that “[s]ection 504 is virtually identical to Title VI and was consciously intended by Congress to track that statute.”
. We share the dissent’s perturbation about the floodtide of litigation in the federal courts which in turn has led to record caseloads in the courts of appeals. Nevertheless, we conclude that requiring administrative exhaustion would undermine, rather than further, the goal of efficient judicial administration. Little can be gained by compelling individual plaintiffs to engage in administrative procedures when the existing administrative remedies cannot provide the relief they seek and when the agency responsible for implementing those remedies has time and again insisted that its lack of appropriate powers and resources render it incapable of properly resolving such claims under either Title VI, Title IX, or section 504, see Cannon v. University of Chicago,
Even more fundamentally, the issue in this case is not whether we believe that an exhaustion requirement would serve a salutory purpose. The issue is whether Congress, in implying a cause of action, also implied an exhaustion requirement. Our conclusion is that the same rationale which first supported the recognition of this implied cause of action compels the conclusion that Congress did not intend it to be subject to administrative exhaustion.
Dissenting Opinion
dissenting.
Although I agree with the majority that whether appellant is entitled under Title VI to assert a private cause of action for employment discrimination was not settled by NAACP v. Medical Center, Inc.,
I cannot agree that this case is controlled by either Medical Center or Cannon v. University of Chicago,
I.
The majority would follow bare dictum set forth in this court’s first Medical Center decision. That case required us to decide whether individuals in a protected class, intended beneficiaries of a federal funding program aiding the hospital, possessed a private cause of action under Title VI and its analog in the Rehabilitation Act, 29 U.S.C. § 794. By the time that case reached this court, the plaintiffs had already exhausted their administrative remedies, as they were ordered to do by Chief Judge Latchum. See NAACP v. Wilmington Medical Center,
The essence of the common law doctrine of precedent or stare decisis is that the rule of the case creates a binding legal precept. The doctrine is so central to Anglo-American jurisprudence that it scarcely need be mentioned, let alone discussed at length. A judicial precedent attaches a specific legal consequence to a detailed set of facts in an adjudged case or judicial decision, which is then considered as furnishing the rule for the determination of a subsequent case involving identical or similar material facts and arising in the same court or a lower court in the judicial hierarchy.
Allegheny Gen. Hospital v. NLRB,
Litigants should not totally disregard dictum, of course, because it indicates the direction or framework of an opinion writer’s thought, and thereby serves as a tool for predicting what the court might do when the issue is properly presented. But dictum, unlike holding, does not have the strength of a decision “forged from actual experience by the hammer and anvil of litigation,”
[I]t is of particular importance to guard against the danger of stating propositions of law in wider terms than is necessary, lest essential factors be omitted in the wider survey and the inherent adaptability of ... law be unduly restricted. For this reason it is very necessary in considering reported cases in the law . .. that the actual decision alone should carry authority, proper weight, of course, being given to the dicta of the judges.
Donoghue v. Stevenson [1932] A.C. 562, 584. The common law tradition is one that depends for its stability on the gradual, case-by-case method of developing rules and from the rules, broader legal precepts. Although I can indulge a litigant for relying on dictum when he does not have an otherwise persuasive argument, a court that accords dictum controlling weight drains that tradition of its strength and undermines its legitimacy.
Applying the foregoing precepts to the Medical Center opinion leads inexorably to the conclusion that it does not control this case. It is not a precedent for the rule that a doctor who has been denied courtesy staff privileges in a hospital receiving federal financial assistance may sue the hospital in federal court without exhausting available Title VI administrative remedies; at most, Medical Center holds that intended beneficiaries of a federal program who have exhausted their administrative remedies have a private cause of action for discrimination under Title VI and its Rehabilitation Act analog. Statements in the majority opinion in the instant case indicating that Medical Center settled both issues are simply incorrect.
Nor can I conclude that footnote 41 of Cannon v. University of Chicago, the putative precedent on which the majority and the Medical Center dictum rely, is of greater legitimacy. I concede that Cannon, like Medical Center, includes language which, considered in vacuo, supports the majority’s assertion that non-exhaustion in this employment discrimination case is a “sound”
II.
Moreover, Cannon arose in a materially different factual context. There the plaintiff was a medical school applicant alleging that she was denied acceptance at the defendant schools because of her sex. Title IX, on which she premised her cause of action, deals explicitly with admissions to graduate programs receiving federal funds, 20 U.S.C. § 1681, and thus the statute explicitly extended its protection to her and to the interest she alleged the grantees had infringed. In the present case, it is yet to be determined if Dr. Chowdhury is an intended beneficiary of either Title VI or the federal financial assistance received by the hospital. As the majority observe:
We note that other courts that have addressed the question of whether 601 provides a cause of action for employment discrimination have required proof that the primary purpose of the funding was to provide employment.
Maj. op. at 320 n.9. Dr. Chowdhury would be in an entirely different position were he a patient alleging denial of services because of his race; instead, he is seeking employment as a member of the medical staff. Therefore, unlike Cannon, which implicated an express Congressional policy to protect applicants for admission to federally assisted graduate programs from sex discrimination, this case requires consideration of Congress’ policy regarding claims of employment discrimination. Congress has expressly prohibited federal agencies and departments from interfering with employment practices under the guise of Title VI “except where a primary objective of the Federal financial assistance is to provide employment.” 42 U.S.C. § 2000d-3. Every court of appeals that has considered the question has agreed that this section and its analogs bar private actions for employment discrimination as well. See, e.g., Ass’n Against Discrimination v. City of Bridgeport,
I reject the majority’s assertion that Dr. Chowdhury does not possess a meaningful remedy under 45 C.F.R. § 80.7. Indeed, congruent with the EEOC emphasis on administrative conciliation and persuasion, HHS Title VI regulations provide for institution of a complaint by any person who believes that he has been subjected to discrimination “not later than 180 days from the date of the illegal discrimination.” 45 C.F.R. 80.7(b).
My view in this case is consistent with what I have previously expressed regarding the relationship between employment discrimination cases brought under Title VII and those brought under 42 U.S.C. § 1981:
I believe that there will be more predictability and reckonability to the law of employment discrimination, more understanding and societal acceptability by the lay public, including putative employees, employees, and employers alike, if there is consistency in the judicial interpretation of the two statutes [implicating employment discrimination].
Croker v. Boeing Co.,
In their rush to let Dr. Chowdhury into court, the majority have unnecessarily
III.
For all the foregoing reasons I dissent, and would affirm the judgment of the district court.
. R. Cross, Precedent in English Law 80 (2d ed. 1968).
. Stone, The Common Law in the United States, 50 Harv.L.Rev. 4, 7 (1936).
. Footnote 41 of Cannon was written to support the discussion of whether a private remedy would frustrate the legislative scheme of Title IX, the third factor in the familiar test articulated in Cort v. Ash,
. For the same reasons I do not find persuasive either Pushkin v. Regents of the Univ. of Colorado,
. (b) Complaints. Any person who believes himself or any specific class of individuals to be subjected to discrimination prohibited by this part may by himself or by a representative file with the responsible Department official or his designee a written complaint. A complaint must be filed not later than 180 days from the date of the alleged discrimination, unless the time for filing is extended by the responsible Department official or his designee.
. (d) Resolution of matters. (1) If an investigation pursuant to paragraph (c) of this section indicates a failure to comply with this part, the responsible Department official or his designee will so inform the recipient and the matter will be resolved by informal means whenever possible. If it has been determined that the matter cannot be resolved by informal means, action will be taken as provided for in § 80.8.
(2) If an investigation does not warrant action pursuant to subparagraph (1) of this paragraph the responsible Department official or his designee will so inform the recipient and the complainant, if any, in writing.
. In the year I joined the court, 1968, there were 7,638 cases filed in the district courts in this judicial circuit, and 658 appeals to this court. Last year there were 15,041 and 2,013 filings respectively. See Annual Reports of Director, Administrative Office of U.S. Courts, tables C3, B1 (1968 & 1981).
