BOARD OF COMMISSIONERS OF LOWNDES COUNTY v. MAYOR AND COUNCIL OF THE CITY OF VALDOSTA et al.
S20G0472
Supreme Court of Georgia
September 28, 2020
309 Ga. 899
PETERSON, Justice.
FINAL COPY
PETERSON, Justice.
The
One narrow limitation on such claims is that the State cannot be the “real party in interest.” The Court of Appeals held that the relief sought here by a Georgia county against state officials would actually control the actions of the State and potentially affect state expenditures; the Court of Appeals thus concluded that the State is the real party in interest and that sovereign immunity bars the county‘s claims for injunctive and declaratory relief against the state officials in their individual capacities. See Bd. of Commrs. of Lowndes County v. Mayor and Council of the City of Valdosta, 352 Ga. App. 391, 395-396 (1) (834 SE2d 890) (2019). But the real-party-in-interest limitation is not so broad; our case law has applied it primarily when the claimed relief would control or take the State‘s real property or interfere with contracts to which the State is a party. No such relief is sought here, and applying the limitation as broadly as the State seeks would eviscerate Georgians’ well-established rights to seek redress against their government. We therefore reverse the Court of Appeals and hold that sovereign immunity does not bar the claims at issue in this case.
1. Background.
Lowndes County sued the commissioner of the
loan, or permit shall be issued to any local government or authority that is not included in a service delivery strategy “verified” by DCA. See
Lowndes County and the cities within the County (“the Cities“) operated under a service delivery strategy agreement implemented in 2008. The 2008 Strategy Agreement provided that it “shall become effective July 1, 2008 and shall remain in force and effect until reviewed and revised by the parties in accordance with the Act.” In June 2016, a new draft Strategy Agreement was circulated by Lowndes County to the Cities. On November 1, 2016, when DCA had not received communication from the County and Cities that they had agreed either to revise their Strategy Agreement or to extend the existing one, DCA notified the County and Cities that they would be ineligible for state-administered financial assistance, grants, loans, or permits until DCA could verify that Lowndes County and the Cities had done so.
The County sued the mayors and councils of the Cities, DCA, and DCA commissioner Camila Knowles, seeking declaratory, injunctive, and mandamus relief, as well as specific
Knowles and the DCA board members filed a motion to dismiss the amended complaint on the basis that sovereign immunity barred the claims for injunctive and declaratory relief. They argued that those claims actually seek to order Knowles and the DCA board members to take action in their official capacities. The trial court granted the motion to dismiss.
The Court of Appeals affirmed. See Lowndes County, 352 Ga. App. at 391. The Court of Appeals held that DCA, not Knowles and the DCA board members, “is the real party in interest,” and thus sovereign immunity barred the claims against them. Id. at 395 (1). The court reasoned that the relief sought would “control the actions of the State” and could “only be granted by the State,” whereas “Knowles and the DCA Board Members have no statutory authority in their individual capacities under the SDS Act to direct DCA to do anything.” Id. at 396 (1). We granted the County‘s petition for a writ of certiorari to address the sovereign immunity issue, and we now reverse.
2. Sovereign immunity generally does not apply to individual-capacity claims for prospective declaratory and injunctive relief against state officers and employees alleged to be acting without legal authority.
(a) Sovereign immunity bars claims against the State, its departments and agencies, and its officers and employees when sued in their official capacities.
As we recounted at length in Lathrop v. Deal, 301 Ga. 408 (801 SE2d 867) (2017), the doctrine of sovereign immunity “was imbedded in the common law of England” and adopted by Georgia as its own after the War for American Independence. Id. at 411-412 (II) (A) (citation and punctuation omitted). Understood “broadly as a principle derived from the very nature of sovereignty,” the doctrine at common law generally provided that “[t]he State could not, without its own express consent, be subjected to an action of any kind.” Id. at 412-413 (II) (A) (citations and punctuation omitted). At common law, the doctrine barred not only suits against the State in its own name, but also suits against the State‘s departments, agencies, and officers in their official capacities, “even when it was alleged that the officers had acted without legal authority.” Id. at 413 (II) (A). The doctrine of sovereign immunity was broad enough at common law “to bar some suits against public officers in their individual capacities, although only to the extent that the State itself could be said to be the real party in interest.” Id. at 413-414 (II) (A). “The doctrine sometimes worked to bar suits, for instance, in which the relief sought would tend to impair or affect the property or contractual interests of the State.” Id. at 414 (II) (A) (citing Linder v. Ponder, 209 Ga. 746, 747-748 (75 SE2d 814) (1953); Musgrove v. Ga. R. & Banking Co., 204 Ga. 139, 157 (49 SE2d 26) (1948); Printup v. Cherokee R. Co., 45 Ga. 365, 367 (1872)). “The doctrine of sovereign immunity at common law generally was inapplicable, however, in cases in which state officers in their individual capacities were alleged to have acted without legal authority, even if they acted under color of their offices.” Id. (emphasis added).
The common law doctrine of sovereign immunity has been enshrined in the
We strayed for a time from the understanding that sovereign immunity, now given constitutional status, was not subject to alteration by this Court. In 1995, purportedly to avoid “confusion” stemming from the use of “legal fictions and circular reasoning,” and “permit a more logical analysis,” we held that a suit against state officers in their official capacities for injunctive relief to restrain an illegal act fell within an “exception” to sovereign immunity. IBM Corp. v. Evans, 265 Ga. 215, 215, 216 (1) (453 SE2d 706) (1995). But we corrected course in 2014, reaffirming that “the clear language of our Constitution authorizes only the General Assembly to waive sovereign immunity,” without “exception.” Ga. Dept. of Natural Resources v. Center for a Sustainable Coast, 294 Ga. 593, 597 (2) (755 SE2d 184) (2014). We since have made clear that, absent some waiver by the Georgia Constitution itself or the statutory law, the doctrine of sovereign immunity bars suits for injunctive and declaratory relief against the State, its departments, and its officers in their official capacities, including suits for injunctive relief from the enforcement of allegedly unconstitutional laws. See Lathrop, 301 Ga. at 444 (IV); Olvera v. Univ. System of Ga. Bd. of Regents, 298 Ga. 425, 427-428 (782 SE2d 436) (2016); Sustainable Coast, 294 Ga. at 602-603 (2).
(b) Sovereign immunity generally does not bar individual-capacity claims against state officers and employees for prospective declaratory and injunctive relief.
Critically, however, we also have repeatedly made clear that sovereign immunity does not bar suits for injunctive and declaratory relief against state officials in their individual capacities. See Lathrop, 301 Ga. at 444 (IV) (“There are . . . prospective remedies that the plaintiff-physicians may pursue against state officers in their individual capacities.“); Sustainable Coast, 294 Ga. at 603 (2) (“Our decision today does not mean that citizens aggrieved by the unlawful conduct of public officers are without recourse. It means only that they must seek relief against such officers in their individual capacities.“); Olvera, 298 Ga. at 428 (same). As Presiding Justice Benham explained in his partial dissent from our opinion in IBM,
[i]t is a long-standing principle of Georgia law that sovereign immunity is not applicable where an injunction is sought to prevent the commission of an alleged wrongful act by an officer of the state acting under color of office but without lawful authority and beyond the scope of official power because such a suit is not against the state, but against an individual stripped of his official character.
265 Ga. at 220 (Benham, P.J., concurring in part and dissenting in part) (citation and emphasis omitted) (quoted in Lathrop, 301 Ga. at 423-424 (II) (C)). Presiding Justice Benham was right; that principle is longstanding in our law and is a part of the sovereign immunity that the Georgia Constitution now preserves. See, e.g., Undercofler v. Eastern Air Lines, Inc., 221 Ga. 824, 829 (1) (147 SE2d 436) (1966) (complaint for injunctive and declaratory relief alleging that defendant state officials
(c) Sovereign immunity still bars individual-capacity
claims when the State is the real party in interest, but that exception to the general rule is narrow.
As noted above, at common law the doctrine of sovereign immunity barred some suits against public officers in their individual capacities to the extent that the State itself could be said to be the real party in interest. See Lathrop, 301 Ga. at 413-414 (II) (A). The Court of Appeals held below that the State is the real party in interest here because the relief sought would “operate to control the action of the State or subject it to liability.” Lowndes County, 352 Ga. App. at 395-396 (1) (quoting Moore v. Robinson, 206 Ga. 27, 37 (2) (55 SE2d 711) (1949)).3 Although we have used such imprecise language before, see, e.g., Musgrove, 204 Ga. at 155, our more careful precedent makes clear that sovereign immunity applies to individual-capacity claims for injunctive or declaratory relief in only “limited” circumstances. Lathrop, 301 Ga. at 414 (II) (A). The limited circumstances in which we have held that sovereign immunity is
applicable under a real-party-in-interest theory primarily have included attempts to control the real property rights and contractual obligations of the State. See Linder, 209 Ga. at 746-748 (action against state agriculture commissioner in his individual capacity seeking to enjoin him from using state land for State Farmer‘s Market subject to demurrer; “[s]ince the grantee, the State, is not a party to this action, no cancellation of the State‘s deed can be decreed“); Musgrove, 204 Ga. at 158-159 (action against state revenue commissioner seeking declaration that plaintiff‘s railroad charter is binding upon the State and its officers in perpetuity and injunction against collection of ad valorem taxes on certain railroad properties is one against the State and therefore not maintainable, even if defendant is deemed to be named in his individual capacity); Roberts v. Barwick, 187 Ga. 691, 695-696 (2) (1 SE2d 713) (1939) (suit against state agriculture commissioner “not as individual” for cancellation of lease is barred by sovereign immunity because under relief sought “the State would thereby be dispossessed of property now in its possession“); Cannon v. Montgomery, 184 Ga. 588, 593-594 (2) (192 SE 206) (1937)
Applying the real-party-in-interest exception more broadly than this precedent supports would yield a rule wholly incompatible with our longstanding precedent allowing individual-capacity claims for injunctive and declaratory relief. Indeed, any injunction or declaration as to an employee or official of the State could be said to “control the actions of the State” to some extent, and when that employee or official is paid by state funds or administers state-funded programs, any such relief could, at least indirectly, involve the expenditure of State resources.
Knowles and the DCA board members (the “State Defendants“)
rely on Peters v. Boggs, 217 Ga. 471, 474-475 (123 SE2d 258) (1961), to argue that the State is the real party in interest when a claim seeks to control the disbursement of state funds, even when the claim names state officials in their individual capacities. In Peters, this Court concluded that an action seeking to enjoin state officers and agents sued in their individual capacities from providing state support to integrated public schools was barred by sovereign immunity. See id. at 472-473. But it appears that Peters involved a request for an injunction as to the use of some real property of the State, not merely state funds. See id. at 472 (noting action sought injunction forbidding the use of any state-owned “property or equipment” by any integrated school). Moreover, to the extent that Peters held that sovereign immunity barred an injunction against the state officials’ expenditure of state money, that decision stands for nothing more than the principle that sovereign immunity protects state officials from an injunction that prevents them from spending state funds specifically appropriated for the purpose in question.5 Id. at 474-475 (2) (distinguishing Ramsey v. Hamilton, 181 Ga. 365 (182 SE 392) (1935), “where there was no specific appropriation by the General Assembly of the funds involved“).6 Again, applying the real-party-in-interest exception as broadly as the State Defendants argue would swallow our precedent generally allowing claims for injunctive and declaratory relief against state officials sued individually.
3. Sovereign immunity does not bar the individual-capacity claims for prospective declaratory and injunctive relief asserted here.
Applying this principle to the allegations made by the County here, we conclude that the Court of Appeals erred by affirming the dismissal of the County‘s claims against the State Defendants in their individual capacities on sovereign immunity grounds. The County‘s amended complaint alleges that, under
(f) and the terms of the 2008 Strategy Agreement itself, the agreement remains in effect, and the County and Cities thus remain eligible for state-administered financial assistance, grants, loans, and permits. The amended complaint thus alleges that sanctions imposed against the County and the Cities were not imposed “by or in accordance with law.” The amended complaint seeks a declaration against the State Defendants in their individual capacities that the County and Cities remain eligible for state-administered financial assistance, grants, loans, and permits and that the sanctions have not been legally imposed. The amended complaint also seeks an injunction against Knowles and the DCA board members
The State Defendants and the Cities dispute the County‘s allegation that the State Defendants have acted without legal authority. But we need not consider whether the County is correct in its allegations about the legality of the State Defendants’ actions in order to determine that its claims are not barred by sovereign immunity at the pleading stage. The trial court dismissed the claims for injunctive and declaratory relief against the State Defendants based on its conclusion that they were really claims against the State, and the Court of Appeals agreed. See Lowndes County, 352 Ga. App. at 395-396 (1). Neither lower court concluded that dismissal of the claims for injunctive and declaratory relief was warranted on the basis that the County had not shown that the State Defendants were acting outside their lawful authority. That is a question to be decided on remand as the case goes forward.7
The State Defendants argue that the Court of Appeals properly concluded that sovereign immunity did bar the claims against them because the State is the real party in interest. The Court of Appeals concluded that sovereign immunity bars the County‘s claims for injunctive and declaratory relief against the State Defendants here because the relief sought would “control the action of the State[.]” Lowndes County, 352 Ga. App. at 395-396 (1). And the State Defendants argue that the State is the real party in interest because the relief sought by the County would directly impact the State “and its obligation to make financial disbursements.” But the relief the County seeks would not alter the title, possession, or usage of any real property of the State or interfere with any state contracts.
To the extent that an individual-capacity claim for injunctive or declaratory relief would ever fall within the real-party-in-interest exception because the relief sought would affect the expenditure of funds — a point we do not decide today — the County does not seek to block any disbursement of specifically appropriated funds. And the County does not seek to require any disbursement of funds, either. Rather, it asks for a declaration that it remains eligible for funds, and for an injunction to stop the State Defendants from broadcasting that the County is categorically ineligible. There is no indication in the complaint that such relief would entitle the County to specific funds automatically and without any other action by someone other than the State Defendants. Indeed, the injunction sought by the complaint would stop the State Defendants from informing other “departments and agencies of the State of Georgia” that the County is categorically ineligible for funds. The possibility that the relief sought might ultimately result in the expenditure of some state funds is not enough to bring this case within the real-party-in-interest exception.
The State Defendants also argue that the limited statutory roles of the DCA commissioner and members of the DCA board indicate that the County is seeking relief against the State itself, not any particular individual. The State Defendants emphasize that, by statute, DCA itself has the duty to “[d]evelop, promote, sustain, and assist local governments in the performance of their duties . . .
But by statute the DCA commissioner is the department‘s “chief executive officer and administrative head.”
The State Defendants suggest that the fact that a DCA staffer, and not Knowles or any of the DCA board members, sent the notice to the County and Cities informing them of sanctions means that the State is the real party in interest. Of course, “given that the purpose of an injunction is to restrain ‘a threatened . . . act of a private individual . . . which is illegal or contrary to equity and good conscience and for which no adequate remedy is provided at law[,]’
Judgment reversed. All the Justices concur, except McMillian, J., disqualified.
Decided September 28, 2020.
Certiorari to the Court of Appeals of Georgia — 352 Ga. App. 391.
Elliott, Blackburn & Gooding, James L. Elliott, Walter G. Elliott II, for appellant.
Coleman Talley, George T. Talley, Timothy M. Tanner; Smith, Welch, Webb & White, Andrew (Andy) J. Welch III, Warren M. Tillery, Brandon F. Palmer; Christopher M. Carr, Attorney General, Logan B. Winkles, Senior Assistant Attorney General, Julie A. Jacobs, Assistant Attorney General, for appellees.
Notes
The State Defendants also posit that the issue raised by this appeal may become moot following the November 2020 election, when Georgia voters will have the opportunity to amend the state Constitution to waive sovereign immunity for declaratory relief from state actions that are unconstitutional or outside the scope of lawful authority. See
