Lead Opinion
Aрpellant Bobby Watts, a physician licensed to practice medicine in Tennessee, filed this action pursuant to 42 U.S.C. § 1983, seeking to enjoin a pending state administrative proceeding initiated by the Tennessee Division of Health Related Boards (Division) for the purpose of summarily suspending Watts’ license to practice medicine. Watts also sought damages on the grounds that the Division and the members of the Tennessee Board of Medical Examiners (Board) had violated the due process and equal protection clauses of the fourteenth amendment. The district court declined to grant an injunction and dismissed Watts’ action, finding that the action was subject to the rule enunciated in Parratt v. Taylor,
Watts raises several challenges to the dismissal of his action. He first contends that the Parratt rule is inapplicable because the deprivation in this case occurred pursuant to an established state procedure rаther than by random and unauthorized conduct. Watts secondly argues that even if Parratt applies, the available state remedies are inadequate to satisfy due process. Watts lastly asserts that regardless of whether the district court acted properly with regard to his section 1983 due process claim, it erred in dismissing his equal protection claim also brought under section 1983. At oral argument, the issue of abstention was raised and the parties were requested to submit supplemental briefs addressing the issue of the applicability of the principles of abstention to the instant case. For the following reasons, we affirm the dismissal of appellant’s equitable claims and reverse the dismissal of his claims for monetary relief and attorney’s fees.
I.
The vast majority of Watts’ practice as a physician has involved administering weight-loss programs through which he has prescribed federally-controlled drugs. Watts possessеs an authorization number issued by the Federal Drug Enforcement Agency (DEA), permitting him to prescribe controlled substances.
On October 21, 1985, the Division, a Tennessee administrative agency, issued a “Notice of Charges” against Watts, charging him with violating various provisions of Title 63, Chapter 6, of the Tennessee Revised Code, §§ 63-6-101 et seq. The Division specifically alleged that Watts had violated sections 63-6-214(a)(l)-(4), (12)-(14), by prescribing or otherwise distributing controlled substances when they are not medically indicated, by prescribing or otherwise distributing controlled substances in a manner constituting gross negligence, and by prescribing or otherwise distributing controlled substances to persons addicted to the habit of taking such substances. The Division notified Watts that it would present these charges to the Board at a hearing on October 30, 1985, and would request the Board at that time to summarily suspend Watts’ license to practice medicine pending further inquiry into whether his license should be permanently revoked. The Division also informed Watts that he was entitled, if he desired, to be represented by counsel at the initial hearing.
On December 7, 1985, the Board issued an order concerning the October 30, 1985 hearing. The order clarified that since Watts had signed a “voluntary surrender” of his federal prescription privileges, the original motion for summary suspension of his license to practice medicine was “not taken up for ruling by the Board” at the hearing.
In response to Watts’ communication of his desire to withdraw his “voluntary surrender” of his DEA authorization number, the Division filed a motion with the Board to summarily suspend Watts’ license to practice medicine in Tennessee. Watts received notice on December 19, 1985, that the Division had filed the motion. A hearing on the motion to suspend Watts’ license was set for January 14, 1986.
Before the summary suspension hearing was held, Watts filed the instant action under 42 U.S.C. § 1983, naming as defendants the Division and individual members of the Board. Watts alleged violation of his due process and equal protection rights as protected by the fourteenth amendment and sought damages and attorney’s fees. He also sought to enjoin the pending administrative proceedings, alleging that the Division and the Board intended to proceed in the same “vague” manner as they had at the hearing on October 30, 1985. Watts contended that the original notice issued by the Division was insufficient and that the manner in which the October 30 hearing was held failed to meet minimum requirements of due process and state administrative law.
The district court initially denied Watts’ request for a temporary restraining order, but only upon receiving the parties’ stipulation to maintain the status quo until the court could hold a hearing. In a subsequent order, dated February 28, 1986, the court denied Watts’ request for a preliminary injunction. The court later amended that order in part in order to grant Watts’ request to prohibit the defendants from enforcing the “voluntary surrender” which he had signed.
On April 8, 1986, the district court issued an order granting the defendants’ motion to dismiss Watts’ action. The court preliminarily observed that Watts had stated a cause of action under section 1983, since the conduct complained of was taken under color of state law and Watts had alleged thе deprivation of a right, privilege, or immunity protected by the Constitution or laws of the United States. The court then dismissed the Division from the law suit on the ground that it was immune from Watts’ damages claims as a state agency. Watts had expressly agreed to the dismissal of the Division.
The remainder of Watts’ action was dismissed pursuant to the rule developed in Parratt v. Taylor,
At oral argument before this court, the parties were requested to file supplemental briefs addressing the аpplicability of the abstention principles of Younger v. Harris,
This case presents two issues. The first issue involves the propriety of the district court’s dismissal based on Parratt v. Taylor,
II.
A.
Watts asserts that the district court erred in dismissing his equal protection claims, since Parratt only applies in the procedural due process setting. Watts’ assertion is well taken, since Parratt is not applicable to claims based on a right, privilege, or immunity secured by the Constitution or federal laws other than the due process clause of the fourteenth amendment. See Hayes v. Vessey,
As to Watts’ other claims, the district court recognized that Watts seems to at least facially raise a sufficient section 1983 action. The actions taken by the Division and the Board were undisputably done under color of state law. Also, the conduct allegedly deprived Watts of constitutionally protected rights. The conduct jeopardized Watts’ license to practice medicine and impinged upon his right to practice medicine. This circuit has recognized that the freedom to pursue a career is a protected liberty interest, and that state regulation of occupations through a licensing process gives rise to protected property interеsts. See, e.g., Wilkerson v. Johnson,
In Parratt, the court held that procedural due process is not violated when a state employee negligently deprives an individual of property if the state provides an adequate postdeprivation remedy. The Court reasoned that in situations where predepri-vation process is not feasible, such as where quick state action is essential, or where the loss of property is caused by random and unauthorized conduct, postde-privation state remedies will satisfy due process concerns.
This circuit has even further extended Parratt’s limitation on section 1983 actions by applying it to claims of deprivation of a liberty interest without procedural due process. See Wilson v. Beebe,
As a result of Parratt, this circuit in Vicory v. Walton,
Watts argues that application of Parratt in this case was improper because the state was in a position to provide, аnd in fact did provide, predeprivation process. The rule of Parratt and Vicory is clearly inapplicable “where a deprivation of property is caused by conduct pursuant to established state procedure, rather than random and unauthorized conduct.” Hudson,
Since any predeprivation actions taken in the instant case were done pursuant to established state procedures, the district court erred in applying Parratt. In reaching this conclusion, we are not swayed by the appellees’ argument that any conduct by the state actors which violated due process was necessarily random and not authorized since the state procedures on their face comport with due process. The relevant state action in the instant case is the state agency’s deliberate decision to obtain either the voluntary surrender of Watts’ DEA authorization or the summary suspension of Watts’ license, which was done under established state procedure; the focus is not on the possibly random actions taken in carrying out the state procedures. Furthermore, we are unconvinced that the instant case presents
Our conclusion that the district court erred in dismissing Watts’ claims under Parratt does not end the analysis, however, since we are left with the question of abstention.
B.
In Younger v. Harris,
The Court subsequently recognized in Huffman v. Pursue, Ltd.,
The Court has also approved application of Younger abstention to situations involving state administrative proceedings. Thus, in Middlesex County Ethics Committee v. Garden State Bar Association,
The Court recently discussed Younger abstention in Ohio Civil Rights Commission v. Dayton Christian Schools,
In Deakins v. Monaghan, — U.S. -,
The Court granted certiorari to consider whether the district court was required to abstain from adjudicating the plaintiff’s claim for injunctive relief, and whether the court had the discretion to dismiss, rather than stay, plaintiff’s additional claims for damages and attorney's fees. While the case was pending, the plaintiffs expressed a willingness to withdraw their equitable claims, thereby rendering moot the ques
The Court reached the second issue, however, and found the Third Circuit’s rule to be sound and held that the district court has no discretion to dismiss rather than stay claims that are not cognizable in the parallel state proceeding. Deakins,
We find that the principles enunciated in the cases discussed above govern the instant case, since the three pertinent factors emphasized in Middlesex are present, and the extraordinary circumstances under which Younger abstention should not apply are not present.
The first predicate for applying the Younger principles is met here, since the state administrative action brought by the Division of Health Related Boards is still pending. The Division first initiated the proceedings when it filed on October 21, 1985, the notice of charges against Watts, notifying him of the initial hearing in which the Division planned to request the Board of Medical Examiners to summarily suspend Watts’ license to practice medicine. The notice was filed and the ensuing preliminary hearing was held pursuant to Tenn.Code Ann. § 4-5-320(c), which governs proceedings affecting licenses. Section 4-5-320(c) provides:
No revocation, suspension, or withdrawal of any license is lawful unless, prior to the institution of agency proceedings, the agency gave notice by mail to the licensee of facts or conduct which warrant the intended action, and the licensee was given an opportunity to show compliance with all lawful requirements for the retention of the license. If the agency finds that public health, safety, or welfare imperatively requires emergency action, and incorporates a finding to that effect in its order, summary suspension of a license may be ordered pending proceedings for revocation or other action. These proceedings shall be promptly instituted and determined.
Grounds upon which the Board can suspend a physician’s license to practice in a proceeding brought under section 4-5-320(c) are set forth in Tenn.Code Ann. § 63-6-214.
In the instant case, the Board did not initially suspend Watts’ license; Watts instead signed the “voluntary surrender” of his DEA authorization number in lieu of having his license suspended. Once Watts did so, the charges leveled against him were held in abeyance pending a subsequent, final determination concerning revocation of his license as contemplated by section 4-5-320(c). However, when Watts revoked his surrender of his DEA authorization number, it again became necessary for the Division to seek summary suspension of his license to practice. To do so, the Division did not need to file new charges against Watts, since it had already filed the notice of the charges required by section 4-5-320(c), but instead merely had to notify Watts that it had filed a motion with the Board to summarily suspend Watts’ license on the grounds set forth in the initial notice. Upon receiving a copy of the Division’s motion, Watts filed the instant action seeking to enjoin the license suspension and revocation proceedings. While the district court declined to enjoin those proceedings, it did receive the parties’ stipulation that they would maintain the status quo; that is, that the proceedings would be held in abeyance. Thus, the license suspension and revocation proceedings, which are directly related to the initial notice of charges brought against Watts, are still pending.
The second factor for applying Younger abstention is also met in this case, since a vital state interest is clearly involved. The charges brought against Watts alleged that he was improperly distributing or prescribing controlled substances in violation of the provisions of Tenn.Code Ann. § 63-6-214. It is readily apparent that the State of
In light of these pronouncements and principles, we believe that the State of Tennessee’s interest in regulating the prescription and distribution of controlled substances by licensed physicians is as important as a state’s interest in ensuring the professional conduct of licensed attorneys. The Supreme Court in Middlesex recognized that states have an important interest in, and have traditionally exercised extensive control over, the professional conduct of attorneys.
We finally turn to the third pertinent inquiry governing whether the principles of Younger should apply — whether there exists an adequate opportunity for Watts to raise his constitutional claims in the state proceedings. Pursuant to Tenn.Code Ann. § 63-6-216, any proceeding for disciplinary action taken against licensed physicians under Tennessee law must be conducted in accordance with Tennessee’s Uniform Administrative Procedures Act, Tenn.Code Ann. §§ 4-5-101, et seq. The provisions of that statute show that Watts may have two alternative avenues of state judicial review open to him. First, pursuant to Tenn.Code Ann. § 4-5-322(a)(l), Watts could seek judicial review of a final decision of the Board of Medical Examiners revoking his license to practice medicine.
Watts contends that he will not be permitted to assert his constitutional claims in the administrative proceedings before the Board. This contention is supported by the record, which shows that after Watts аsserted his constitutional claims as affirmative defenses to the Division’s motion to summarily suspend his license, the Division successfully brought a motion to strike those defenses on the ground that they were not within the scope of review of proceedings before the Board of Medical Examiners. This fact alone does not, however, establish that Watts will be deprived of an opportunity to present his constitutional claims. In Dayton Christian Schools, the Supreme Court stated that “it is sufficient ... that constitutional claims may be raised in state court judicial review of the administrative proceeding.”
Having found that all three of the predicates for application of Younger abstention are present in this case, we are led to the conclusion that absent a showing of bad faith, harrassment, or flagrant unconstitutionality, the district court should not have exercised jurisdiction over this case. Watts has made no showing that the type of extraordinary circumstances which render Younger abstention inappropriate exist in this case. We therefore hold that the district court should have abstained from exercising jurisdiction under the principles of Younger v. Harris.
A review of the decisions in analogous Supreme Court cases reveals the correctness of our conclusion. In Geiger v. Jenkins,
We are not swayed from our convictions by the Fifth Circuit’s recent decision in Thomas v. Texas State Board of Medical Examiners,
Thomas is inaрposite to the instant ease, however, because neither of the above distinctions are present. As we have previously noted, the state proceedings initiated against Watts are pending
Based on our conclusion that the principles of abstention are applicable to this case, we hold that the district court did not err in dismissing Watts’ equitable claims. However, the dismissal of his claims for monetary relief and attorney’s fees should have been stayed rather than dismissed unless they can be redressed in the state proceeding. See Deakins,
Accordingly, we AFFIRM the district court’s dismissal of Watts’ equitable claims, REVERSE the dismissal of his claims for monetary relief and attorney’s fees, and REMAND to the district court for further proceedings consistent with this opinion.
Notes
. In Daniels, the Court held that the "due process clause is simply not implicated by a negligent act of an official causing unintended loss of or injury to life, liberty or property.” Daniels,
. Since Watts does not complain that he was deprived of his license without due process as the result of a random and unauthorized act by the Board, we do not find the Second Circuit’s opinion in Marino v. Ameruso,
. One of the appellees argues that the process afforded Watts comported with the minimum requirements of the due process clause and that Watts therefore cannot maintain his section 1983 action. This argument is not properly before this court, however, since it goes to the merits of Watts’ due process claims and not to whether the claims were properly dismissed pursuant to Parratt. See Lanier v. American Bd. of Endodontics,
. In their most recently filed supplemental briefs, the parties dispute the existence of an ongoing state proceeding. Given the previous stipulations of the parties, we will proceed with the presumption that there is a pending state proceeding. We leave the ultimate determination of this factual question to the district court.
. Section 4 — 5—322(a)(1) provides in full:
A person who is aggrieved by a final decision in a contested case is entitled to judiciаl review under this chapter, which shall be the only available method of judicial review.
. Section 4-5-322(a)(2) provides in full:
A preliminary, procedural or intermediate agency action or ruling is immediately reviewable if review of the final agency decision would not provide an adequate remedy.
. See supra pp. 846-48 & note 3.
. Appellees argue that Watts could have maintained his section 1983 action in state court. See Poling v. Goins,
Concurrence Opinion
concurring in part and dissenting in part.
I agree that the district court erred in dismissing Dr. Watts’ equal protection claim. The amended complaint avers, in essence, that the members of the Tennessee Board of Medical Examiners required the doctor to give up his federal license to prescribe controlled substances not because he was dispensing such substances with too liberal a hand, but because he is black. For purposes of the motion to dismiss — a motion filed under Rule 12(b) of the Federal Rules of Civil Procedure — the allegations of the complaint must be аccepted as true. To turn the laws against a person because of his race, as the board members are said to have done here, is to deny that person the equal protection of the laws; and it was to redress precisely such conduct by persons acting under color of state law that the reconstruction Congress of 1871, re
I have difficulty, however, with the majority’s conclusion that the district court erred in dismissing Dr. Watts’ claim that he was entitled to redress under § 1983 for the alleged deprivation of property without due process of law. It is well settled that “in section 1983 damage suits for deprivation of property without procedural due process the plaintiff has the burden of pleading and proving the inadequacy of state processes, including state damage remedies to redress the claimed wrong.” Vicory v. Walton,
Dr. Watts alleged, in his amended complaint, that he had no adequate remedy under state law, but the district court held that this was not so. I am not prepared to say that the district court’s reading of Tennessee law was erroneous.
In his original complaint, Dr. Watts made no allegation that he lacked an adequate remedy under state law. The defendants, in their motion to dismiss, pointed out that under Hudson v. Palmer, supra, and Parratt v. Taylor,
“The plaintiff has no adequate remedy pursuant to state law. He has attempted to assert constitutional defenses in administrative proceedings regarding his license and has been denied. He seeks injunctive relief and punitive damages not readily available. His remedy, if any, would be before the defendant Board Members who are alleged to have violated his constitutional rights.”
The district court granted the motion to amend, but held that the remedies available under Tennessee law barred the § 1983 action. Insofar as the § 1983 action was based on an alleged violation of the Due Process Clause, I think the district court was correct.
As to Dr. Watts’ plea that the Board of Medical Examiners forced him to surrender his license without allowing him to assert constitutional defenses, the district court pointed out thаt Tennessee’s Uniform Administrative Procedures Act, Tenn.Code Ann. §§ 4-5-101, et seq., made the Board’s action “immediately reviewable” in a state chancery court. Tenn.Code Ann. § 4-5-322(a)(2). Chancery court review, as the district court noted, “allows for the court to ‘reverse or modify’ the agency’s
As to Dr. Watts’ suggestion that injunc-tive relief is not “readily available” under state law, the statute provides that the chancery court not only has the power to “reverse or modify” the action of the Board of Medical Examiners, but that it has “all the powers, privileges, and jurisdiction properly and rightfully incident to a court of equity.” Tenn.Code Ann. § 16-11-101. The power to grant injunс-tive relief is, of course, a power that courts of equity — or chancery courts, to use the nomenclature that Tennessee borrowed from England by the way of North Carolina — have possessed for centuries.
As far as the power to award damages is concerned, Dr. Watts has invited our attention to Chamberlain v. Brown,
“In the very proceeding filed by plaintiff for mandamus to compel defendants to renew plaintiffs [sic] license a Chancery Court could go further and decree to plaintiff damages to which he might be entitled by reason of any unlawful conduct on the part of defendants.”223 Tenn. at 35 ,442 S.W.2d 252 .
As the district court pointed out, moreover, “under Tennessee’s Equal Access to Justice Aсt of 1984, Tenn.Code Ann. §§ 29-37-101, et seq., a ‘court having jurisdiction ... over an action for judicial review brought pursuant to § 4-5-322, may award reasonable and actual fees and other expenses not to exceed ten thousand dollars ($10,000) to the prevailing party.’ ”
I do not know whether Dr. Watts is correct in his contention that the chancery court lacks power to award punitive damages, but the United States Supreme Court has made it clear that the unavailability of punitive damages under state law “does not mean that the state remedies are not adequate to satisfy the requirements of due process.” Parratt v. Taylor, supra,
Dr. Watts has pleaded, finally, that his state remedy is inadequate because the remedy “would be before the defendant Board Members who are alleged to have violated his constitutional rights.” With regard to the deprivation that is alleged to have occurred already, however, the remedy lies in the Tennessee courts, not the Board of Medical Examiners. With regard to any future suspension or revocation of Dr. Watts’ license, an opportunity to be heard by the board is mandated by statute, absent a finding “that public health, safety or welfare imperatively requires emergency action,” Tenn.Code Ann. § 4-5-320(c), and some opportunity to address the board would seem to be required by the very constitutional provision on which Dr. Watts relies. Cleveland Board of Education v. Loudermill,
It remains to me only to say that I have seen nothing in the Tennessee statutes or in the record of this case that would authorize the members of the Board of Examiners or anyone else to deprive Dr. Watts of his license other thаn by due process of law. I do not believe this case is governed by Logan v. Zimmerman Brush Company,
Dr. Watts does not contend that there is anything wrong with the administrative scheme Tennessee has established for policing the medical profession; on the contrary, his complaint sets forth a long list of specifics in which the requirements of the established state procedure are alleged to have been violated. If a rogue board of medical examiners deliberately abused established procedures in forcing Dr. Watts to give up his license, Tennessee has hardly deprived Dr. Watts of his property “without due process of law” if it allows the doctor to call the members of the board to account in the Tennessee courts.
I cannot reconcile the majority opinion in this case with the opinion Judge Winter, of the Second Circuit, wrote in Marino v. Ameruso,
