Lead Opinion
I. Introduction
The City of Hugo, Oklahoma, and the Hugo Municipal Authority, a public water trust, (collectively “Hugo”) have contracted with the City of Irving, Texas, (“Irving”) for the sale of water Hugo has been or
II. Background
The Board oversees Oklahoma’s permitting process for appropriating water within the state. Okla. Stat. tit. 82, § 105.9. Hugo, a longstanding holder of two permits issued by the Board, contracted to sell water to Irving for use in Texas. In conjunction with that agreement, Hugo applied for a third permit to appropriate additional water and, later, sought to modify its two existing permits to include Irving as a place of use.
Before the Board acted on its application for a third permit, Hugo filed suit seeking a declaratory judgment that certain Oklahoma laws
III. Discussion
Under the doctrine of political subdivision standing, federal courts lack jurisdiction over certain controversies between political subdivisions and their parent states. Branson Sch. Dist. RE-82 v. Romer,
A. Hugo’s Standing
1. Analysis
The political subdivision standing doctrine dates back at least as far as the Supreme Court’s decision in City of Trenton v. New Jersey, which concerned the city’s challenge, brought under the Contract and Due Process Clauses, to its parent state’s imposition of a fee for diverting water.
The Court later applied the Trenton rule to hold that a political subdivision lacks standing to bring in federal court a Fourteenth Amendment equal protection challenge to its parent state’s actions. Williams v. Mayor & City Council of Balt.,
Despite the broad language in these early cases, the Supreme Court and courts of appeals have shied away from erecting an absolute bar to political subdivisions asserting rights against their parent states in federal court. In Gomillion v. Light-foot, the Supreme Court explained that these early cases stood for the limited proposition that “the State’s authority is unrestrained [as against political subdivisions] by the particular prohibitions of the Constitution considered in those cases,” rather than granting the states “plenary power to manipulate in every conceivable way ... the affairs of municipal corporations.”
Examining the nature of the type of Supremacy Clause claim at issue in Branson reveals a fundamental difference between those claims and claims brought under a substantive provision of the Constitution. The Supreme Court has described the Supremacy Clause as “not a source of any federal rights” but rather operating to “secure federal rights by according them priority whenever they come in conflict with state law.” Chapman v. Hous. Welfare Rights Org.,
This court’s cases considering political subdivision standing are illustrative. In Branson, the school district alleged the Colorado Enabling Act entitled it to management of school trust lands solely for
The dormant Commerce Clause, unlike the Supremacy Clause, itself provides substantive rights. See Dennis v. Higgins,
Although the Constitution gives Congress the power to regulate commerce among the States, many subjects of potential federal regulation under that power inevitably escape congressional attention because of their local character and their number and diversity. In the absence of federal legislation, these subjects are open to control by the States so long as they act within the restraints imposed by the Commerce Clause itself. The bounds of these restraints appear nowhere in the words of the Commerce Clause, but have emerged gradually in the decisions of this Court giving effect to its basic purpose.
The parties have not identified, and this court has not found, a single case in which the Supreme Court or a court of appeals has allowed a political subdivision to sue its parent state under a substantive provision of the Constitution. Instead, courts have allowed such suits only when Congress has enacted statutory law specifically providing rights to municipalities. See supra n. 5. This court’s decisions in Branson and Kaw Tribe are entirely consistent with this great weight of precedent. Because the claims at issue here are based on a substantive provision of the Constitution,
2. The Dissent
The dissent asserts the “modern trend [is] to limit the scope of the political subdivision standing doctrine,” and this court’s decision in Branson must be read within that context. Dissenting Op. at 1266. So read, the dissent contends Branson fully supports the conclusion that Hugo has standing to sue its parent state. Id. at 1265, 1271-75. For those reasons set out below, the dissent’s reading of Branson is simply not tenable.
The dissent begins with the broad supposition that the modern judicial trend is to limit the scope of the Supreme Court’s decisions in Trenton and Williams. Id. at 1266. In particular, the dissent relies on the decisions in Gomillion v. Lightfoot,
Furthermore, the cases cited by the dissent do not support the broad assertion that the Supreme Court has strayed from its historic understanding of the Constitution as not contemplating political subdivisions as protected entities vis-a-vis their parent states. The dissent relies heavily on dicta from Gomillion to support its assertion that “state legislative control of municipalities is subject to constitutional limitations.” Dissenting Op. at 1268. The problem with the dissent’s reliance on Gomillion is that the case does not involve a suit by a municipality against its parent state. Instead, Gomillion involves a suit by individual citizens of Tuskegee, Alabama to enjoin, as violative of the Fourteenth and Fifteenth Amendments, a state redistricting law that changed the shape of the city.
Nor does the Court’s decision in Allen support the dissent’s novel assertion that the dormant Commerce Clause confers rights on Hugo. In Allen, an Establishment Clause case, the sole discussion of the municipal entity’s standing was contained in a footnote, which said, in its entirety:
Appellees do not challenge the standing of appellants to press their claim in this Court. Appellants have taken an oath to support the United States Constitution. Believing [the relevant state law] to be unconstitutional, they are in the position of having to choose between violating their oath and taking a step— refusal to comply with [state law] — that would be likely to bring their expulsion from office and also a reduction in state funds for their school districts. There can be no doubt that appellants thushave a ‘personal stake in the outcome’ of this litigation. Baker v. Carr, 369 U.S. 186 , 204 [82 S.Ct. 691 ,7 L.Ed.2d 663 ] (1962).
Having set out its vision of a modern jurisprudential trend toward the broad availability of suits by political subdivisions to vindicate constitutional interests, the dissent then proceeds to read Branson as fully supportive of this purported trend. See Dissenting Op. at 1269-72. The dissent’s expansive reading of Branson, which completely unhinges the case from its factual moorings, is ultimately unconvincing.
The dissent begins its analysis of Bran-son by focusing largely on the following language from that decision: “Despite the sweeping breadth of [the opinions], both Williams and Trenton stand only for the limited proposition that a municipality may not bring a constitutional challenge against its creating state when the constitutional provision that supplies the basis for the complaint was written to protect individual rights, as opposed to collective or structural rights.” Branson,
Branson simply will not bear the weight the dissent seeks to place upon it. Branson did not involve in any way the question whether political subdivisions can sue their parent states to enforce substantive provisions of the Constitution. Instead, the case involved the far more limited question whether a political subdivision could enforce against its parent state, through the Supremacy Clause, rights accorded it by the Colorado Enabling Act, a federal statute. Branson,
Having broadly interpreted Branson as validating suits by political subdivisions against their parent states to enforce substantive constitutional provisions granting collective rights, the dissent proceeds to
Not only does the dormant Commerce Clause, unlike the Supremacy Clause, provide substantive restraints on state action, it also concerns rights that are properly characterized as guaranteed to individuals. As the Court has said, the doctrine “invalidate^] local laws that impose commercial barriers or discriminate against an article of commerce by reason of its origin or destination out of State.” C & A Carbone, Inc. v. Town of Clarkstown,
The existence of what is referred to as the “market participant” exception to the dormant Commerce Clause doctrine reinforces the view that the rights protected are individual in nature.
the relevant comparison is not between a Supremacy Clause claim and a dormant Commerce Clause claim. It is between a preemption claim based on a federal statute and a dormant Commerce Clause claim....
The Supremacy Clause plays the same role in either case because it requires that the federal law, whether a federal statute or the dormant Commerce Clause, will prevail if it conflicts with state law.
Dissenting Op. at 1271. The thrust of the dissent’s argument is less than clear. “[A]ll federal actions to enjoin a state enactment rest ultimately on the Supremacy Clause.” Swift & Co. v. Wickham,
The Supreme Court made clear in Trenton and Williams that the Constitution does not confer upon the political subdivisions rights as against their parent states. Ysursa,
B. Irving’s Standing
Irving, unlike Hugo, is suing not its parent state, but another state. The political subdivision standing doctrine has no applicability in such a circumstance. Nonetheless, Irving must still meet the traditional standing requirements. Under Article III, a plaintiff must demonstrate standing to sue by showing an injury-in-fact, that the injury is fairly traceable to the defendant’s conduct, and that the injury is likely to be redressed by the relief sought. Bennett v. Spear,
Here, Irving, a plaintiff-intervenor in the district court, based its claims of injury solely on the contract between it and Hugo for the sale of water. Its complaint explained the broad terms of the agreement,
Even assuming Irving could demonstrate an injury-in-fact and causation, Irving’s standing arguments fail on the third constitutional prong, redressability. To demonstrate redressability, a party must show that a favorable court judgment is likely to relieve the party’s injury. Coll v. First Am. Title Ins. Co.,
The circumstances here are analogous. If a federal court were to declare, as Irving urges, the challenged Oklahoma laws unconstitutional under the dormant Commerce Clause, the dormant Commerce Clause still would not constrain the Board’s actions with respect to Hugo’s permit applications. As explained above, Hugo’s “power to hold and manage” water rights “rests in the absolute discretion of the state.” City of Trenton,
The cases cited by Hugo and Irving for the proposition that political subdivisions of one state may sue another state under the dormant Commerce Clause over allegedly discriminatory water permitting laws are inapposite because they do not involve a political subdivision of one state whose claim is premised on a contract with a political subdivision of the defendant state. Rather, those cases concern political subdivisions attempting to access the private market or obtain a permit directly from the defendant state. See, e.g., City of El Paso v. Reynolds,
IV. Conclusion
For the foregoing reasons, the district court’s order is VACATED and the case is REMANDED to the district court to dismiss for lack of federal jurisdiction.
Notes
. At a minimum, the parties agree the applications to modify existing permits are still pending, although whether the application for an additional appropriation is still pending or has been "deemed withdrawn” is in dispute.
. Initially, the suit challenged Okla. Stat. tit. 82, § IB, a five-year moratorium on export of water out of state; Okla. Stat. tit. 74, § 122l.A, a five year moratorium on the creation of any water compact or agreement exporting water out of state; Okla. Stat. tit. 82, § 1085.2(2), which prohibits conveying water out of state without legislative authorization; Okla. Stat. tit. 82, § 105.16(B), which exempts from a requirement that permitted water be put to beneficial use within seven years only those water permits that, inter alia, "promote the optimal beneficial use of water in the state”; and Okla. Stat. tit. 82, § 1085.22, which prohibits permitting for the sale or resale of water for use outside Oklahoma. Thereafter, the legislature enacted reforms to the permitting process, and, separately, the five-year moratorium expired. The complaint was amended to add challenges to four of the newly enacted provisions: Okla. Stat. tit. 82, § 105.12(A)(5), which requires the Board in deciding permit applications for out-of-state water use to consider whether water can be feasibly transported to alleviate shortages within Oklahoma; Okla. Stat. tit. 82, § 105.12A(B)(1), which provides no permit for out-of-state water use can issue if it will impair the ability of Oklahoma to meet its obligations under any water compact; Okla. Stat. tit. 82, § 105.12(F), which requires review of any permit for out-of-state water use every ten years; and Okla. Stat. tit. 82, § 105.12A(D), which forbids issuing a permit for out-of-state water use without legislative approval if that water is subject to a water compact.
. This principle applies equally to suits against state officials in their official capacity, such as the members of the Board in this case. See Will v. Mich. Dep't of State Police,
. For those reasons set out at length by the Fifth Circuit in Rogers v. Brochette,
. A majority of other courts to consider the question of whether a political subdivision may bring a Supremacy Clause claim against its parent state have agreed. See S. Macomb Disposal Auth. v. Twp. of Washington,
. It is noteworthy that there is an almost complete lack of cases reaching the merits of a dormant Commerce Clause claim brought by a political subdivision against its parent state. See City of New Bedford v. Woods Hole, No. 00-12049,
. The dissent asserts it is unsurprising there is a dearth of dormant Commerce Clause cases by municipalities against their parent states because the type of state regulation implicating the dormant Commerce Clause would typically favor local governments. Dissenting Op. at 1271 n. 10. The problem for the dissent, however, is not limited to the complete absence of appellate cases involving dormant Commerce Clause claims of the type at issue here. There is a complete absence of appellate cases involving any type of claim by a political subdivision against its parent state based on a substantive provision of the Constitution.
. Notably, the Fifth Circuit's decision in Rogers fully supports the majority's reading of
[The school district's] claim is that Congress, exercising its power under Article I [of the Constitution], has interfered with Texas’s internal political organization, at least to the extent of allowing a school district to ignore the state’s mandate to decide for itself whether to accept the breakfast program. There is every reason to think that Congress may interfere with a state's internal political organization in ways that the Constitution itself does not interfere; the Supreme Court has never said otherwise.
Id. (emphasis added).
. According to the dissent, "the majority ... incorrectly denies that Branson set the stage to decide the question presented here: whether the dormant Commerce Clause was written to protect an individual right or a structural right. Branson anticipated this question and foreshadowed the answer.” Dissenting Op. at 1266. The problem with the dissent’s assertion, of course, is that Branson offers no such foreshadowing. As set out at length above, Branson did not involve in any way the question whether substantive provisions of the Constitution afford rights to political subdivisions vis-a-vis their parent states. See supra at 1260. Instead, it merely held, consistent with our prior decision in Kaw Tribe and the Fifth Circuit’s decision in Rogers, that when Congress provides statutory rights to municipalities, municipalities can enforce those rights through the Supremacy Clause against their parent states. Branson,
If Branson meant to restrict political subdivision standing to certain preemption claims, its distinction between individual and structural rights would be superfluous. Under the majority’s reading, only preemption claims count as a structural right. But Branson did not distinguish between claims based on a constitutional provision and a federal statute. It distinguished between claims based on individual and structural rights.
Dissenting Op. at 1271. What would truly be odd is for Branson to announce a rule that political subdivisions can sue their parent states to enforce some undefined class of substantive constitutional provisions when the issue was not before the court, none of the cases cited by Branson involved such a question, and no other appellate court had ever so held.
. Because ultimately this court concludes Hugo and Irving lack standing to sue the Board under the dormant Commerce Clause, there is no occasion to pass on whether the market participant exception would apply to Oklahoma’s actions at issue in this case.
. As a result, whether Hugo is "substantially independent” from the state as to allow it to
. The state is free, of course, as a matter of state law, to give rights to its political subdivisions and give the power to enforce those rights in state court. Whether Hugo possesses rights under any law other than the dormant Commerce Clause is not presented in this case.
Dissenting Opinion
dissenting.
I would reach the merits because Hugo and Irving have standing. I therefore respectfully dissent.
Hugo has standing based on Branson School District RE-82 v. Romer,
As part of that trend, Branson granted political subdivision standing in a preemption case and formulated a test that allows standing when the plaintiff makes a structural constitutional claim and the plaintiff is sufficiently independent of the parent state. Hugo alleged such a structural claim when it challenged Oklahoma water statutes as unconstitutional under the dormant Commerce Clause. Hugo therefore should receive a decision on the merits.
Irving has standing even if Hugo does not. The political subdivision standing doctrine does not apply to Irving. Apart from Hugo, Irving has asserted a justiciable claim because the Oklahoma water statutes block implementation of its contract to import water from Hugo and because a favorable ruling on its dormant Commerce Clause challenge will remove that barrier.
A. Hugo
I part ways with my colleagues on how to read Branson. The majority reads Branson as allowing a political subdivision to sue its parent state when it claims that a federal statute preempts state law. I read Branson as allowing a political subdivision to sue its state for a dormant Commerce Clause violation.
My basic disagreement with the majority is its failure to recognize that Branson set the terms for future consideration of political subdivision standing in this circuit. Branson canvassed the early Supreme Court cases that prohibited standing and found them to establish only the “limited proposition” that political subdivisions lack standing when a claim is based on a “constitutional provision ... written to protect individual rights.”
The majority is correct that Branson did not resolve the “exceedingly important issue” of whether a dormant Commerce Clause claim can support political subdivision standing. See Maj. Op. at 1261. And although the majority correctly reminds us that Branson allowed standing for a preemption claim, it incorrectly denies that Branson set the stage to decide the question presented here: whether the dormant Commerce Clause was written to protect an individual right or a structural right. Branson anticipated this question and foreshadowed the answer.
The answer is that the dormant Commerce Clause protects a structural right and thereby supports political subdivision standing. The rationale for my position will be presented by (1) describing how broad language in early Supreme Court cases that prevented political subdivision suits has been interpreted more narrowly over time; (2) explaining the Branson court’s analysis of the scope of political subdivision standing; (3) addressing whether the constitutional claim in this case is a structural or an individual right claim; and (4) having concluded that Hugo is alleging a structural claim, showing that Hugo is sufficiently independent of its parent state to litigate that claim.
1. Limiting Broad Dicta of Early Cases
Branson should be read in the context of the modern trend to limit the scope of the political subdivision standing doctrine. Branson interpreted two early Supreme Court decisions, Trenton v. New Jersey,
In Trenton, the city claimed that a New Jersey statute imposing a fee on the city for withdrawing water from the Delaware River violated the Contract Clause and the Fourteenth Amendment’s Due Process Clause. See
Trenton relied on an earlier precedent, Hunter v. City of Pittsburgh,
In Williams, the Court rejected an equal protection challenge to a Maryland statute exempting a railroad from local taxes.
It would be difficult to square Branson’s allowing a political subdivision to sue its parent state with the sweeping dicta of these cases. But the legal landscape changed between 1933 and 1998, and Branson was decided after the Supreme Court had taken a narrower view of these earlier decisions.
The Supreme Court did not address political subdivision standing after Williams until Gomillion v. Lightfoot,
Id. at 342,
the cases that have come before this Court regarding legislation by States dealing with their political subdivisions fall into two classes: (1) those in which it is claimed that the State, by virtue of the prohibition against impairment of the obligation of contract (Art. I, s 10) and of the Due Process Clause of the Fourteenth Amendment, is without power to extinguish, or alter the boundaries of, an existing municipality; and (2) in which it is claimed that the State has no power to change the identity of a municipality whereby citizens of a pre-existing municipality suffer serious economic disadvantage.
Id. at 343,
The Court determined that the earlier cases’ precedent should be limited to the specific constitutional provisions that those cases addressed. See id. at 344,
a correct reading of the seemingly unconfined dicta of Hunter and kindred cases is not that the State has plenary power to manipulate in every conceivable way, for every conceivable purpose, the affairs of its municipal corporations, but rather that the State’s authority is unrestrained by the particular prohibitions of the Constitution considered in those cases.
Id.
The Court summarized its position:
This line of authority conclusively shows that the Court has never acknowledged that the States have power to do as they will with municipal corporations regardless of consequences. Legislative control of municipalities, no less than otherstate power, lies within the scope of relevant limitations imposed by the United States Constitution.
Id. at 344-45,
Gomillion was not a suit between a municipality and its parent state. But its interpretation of the cases that created the political subdivision standing doctrine is telling. The Court said that state legislative control of municipalities is subject to constitutional limitations. Under the Gomillion analysis, Hunter, Trenton, and Williams prevent political subdivision standing only when a municipality attempts to sue its parent state under the Fourteenth Amendment or the Contract Clause. Some of the circuits also have limited the broad dicta of the earlier cases.
The majority argues that the Supreme Court’s language in Gomillion expressing skepticism about the political subdivision standing doctrine is dicta. But so is much of the language from Hunter, Trenton and Williams that created the political subdivision standing doctrine. With their dicta stripped, those cases hold that a municipality cannot bring suits against its parent state on Contract Clause, Due Process Clause, or Equal Protection Clause grounds. In determining whether a municipality may bring a dormant Commerce
Consistent with the trend reflected in Gomillion, in Board of Education of Central School District v. Allen,
The foregoing cases inform the different readings of Branson in this case. The majority reads Branson as a narrow exception to a broad prohibition of political subdivision standing. The dicta in early Supreme Court cases support this reading. But, as the majority acknowledges, courts have retreated from the “absolutist” gloss of the early cases.
When Branson granted political subdivision standing on a federal preemption claim, it never declared that a political subdivision could sue its parent state only for a preemption claim.
In Branson, school districts brought a preemption challenge against a voter-approved amendment to the Colorado Constitution, alleging that the amendment violated a federal land trust established by Congress in the Colorado Enabling Act. See
Addressing the scope of political subdivision standing, we held that, “[djespite the sweeping breadth of [their] language,” the earlier cases rejecting standing for municipalities raising constitutional challenges against their parent states “stand only for the limited proposition that a municipality may not bring a constitutional challenge against its creating state when the constitutional provision that supplies the basis for the complaint was written to protect individual rights, as opposed to collective or structural rights.” Id. We concluded that “a political subdivision has standing to bring a constitutional claim against its creating state when the substance of its claim relies on the Supremacy Clause and a putatively controlling federal law.” Id.
Branson did not carve out from Trenton and its progeny an exception to political subdivision standing doctrine just to allow judicial review of preemption claims. Instead, Branson read Trenton as establishing a “limited proposition” that blocks judicial review only when “the constitutional provision that supplies the basis for the complaint was written to protect individual rights, as opposed to collective or structural rights.” Id.
In this case, the City of Hugo, an Oklahoma political subdivision, sued members of the OWRB, an Oklahoma state agency, in their official capacities.
Branson explains that “a political subdivision has standing to bring a constitutional claim against its creating state when the substance of its claim relies on the Supremacy Clause and a putatively controlling federal law.” Id. (emphasis added). Federal law includes, of course, not only statutes but also constitutional provisions. And Branson did not say that a political subdivision may only sue a parent state when its claim relies' on the Supremacy Clause and a federal statute.
Applying Branson to Hugo, the relevant comparison is not between a Supremacy Clause claim and a dormant Commerce Clause claim. It is between a preemption claim based on a federal statute and a dormant Commerce Clause claim. When either is the basis for a challenge to a state law, the Supremacy Clause is essential to the challenge. The majority is correct that “a plaintiff alleging a Supremacy Clause claim is actually alleging a right under some other federal law, which trumps a contrary state law by operation of the Supremacy Clause.” Maj. Op. at 1256 (emphasis in original). But that is exactly what Hugo is doing — alleging a claim under the dormant Commerce Clause, which is the “other federal law [that] trumps a contrary state law by operation of the Supremacy Clause.”
The Supremacy Clause plays the same role in either case because it requires that the federal law, whether a federal statute or the dormant Commerce Clause, will prevail if it conflicts with state law. All claims alleging a conflict between state law and federal law rely upon the Supremacy Clause priority rule that the “Constitution, and Laws of the United States ... and all Treaties ... shall be ... supreme.” U.S. Const. Art. VI, cl. 2.
If Branson meant to restrict political subdivision standing to certain preemption claims, its distinction between individual and structural rights would be superfluous. Under the majority’s reading, only preemption claims count as a structural right. But Branson did not distinguish between claims based on a constitutional provision and a federal statute. It distinguished between claims based on individual and structural rights. We should therefore decide whether a dormant Commerce Clause claim is based on an individual or structural right.
3. Hugo’s Dormant Commerce Clause Claim Is Structural
Branson divides political subdivision constitutional claims into two categories: structural rights claims, which support standing, and individual rights claims, which do not.
Branson does not elaborate on its distinction between structural and individual rights. But Branson’s allowing a political subdivision to bring a preemption claim provides a clue to understanding the distinction. A preemption claim alleges that a federal statute is supreme relative to conflicting state law. Such a claim is structural because it concerns the relative authority of federal and state government. An individual right claim, by contrast, concerns the limits of government authority over the individual. Dormant Commerce Clause claims are more like preemption than individual rights claims because they concern the relative power of federal and state government. They ask whether state law improperly interferes with an area of federal concern — interstate commerce.
An additional clue to understanding Branson’s distinction between individual and structural rights are the words “written to protect” in Branson’s key passage that political subdivision standing is forbidden only when “the constitutional provision that supplies the basis for the complaint was written to protect individual rights, as opposed to collective or structural rights.”
The Bill of Rights, the Contract Clause (at issue in Hunter and Trenton), the Due Process Clause (at issue in Hunter and Trenton), and the Equal Protection Clause (at issue in Williams) were “written to protect” individual rights. By contrast, the enumerated powers of Article I, Section 8 both authorize and limit what Congress can do, and, from the standpoint of limiting power, were “written to protect” states’ rights. The Commerce Clause, therefore, was “written to protect” the allocation of power between the federal
Hugo’s dormant Commerce Clause claim, like the preemption claim in Bran-son, addresses structural issues. “[Tjhere is widespread acceptance of our authority to enforce the dormant Commerce Clause, which we have but inferred from the constitutional structure as a limitation on the power of the States.” United States v. Lopez,
Both dormant Commerce Clause claims and preemption claims based on federal laws enacted pursuant to the Commerce Clause concern the relationship between federal and state governments and the relative scope of federal and state power. These claims represent the two situations where Article I of the Constitution restrains state regulation of commerce. See Kathleen M. Sullivan & Gerald Gunther, Constitutional Law 175 (17th ed.2010). Congressional intent on the relation between state and federal law is a critical issue when a preemption claim is based on Congress’s exercise of its Commerce Clause power and also when a dormant Commerce Clause claim may be resolved based on whether Congress authorized state regulation. These are “techniques Congress may employ in the ordering [of] relations between the nation and the states.” Id. at 243.
One leading commentator understood the dormant Commerce Clause to be exactly the sort of structural right that Branson meant to allow political subdivision standing: “The Fifth and Tenth Circuits, for example, have limited cities’ standing to cases that involve claims under the Supremacy Clause and other structural restrictions on state power, such as the Dormant Commerce Clause.” David J. Barron, Why (and When) Cities Have a Stake in Enforcing the Constitution, 115 Yale L.J. 2218, 2250 (2006) (emphasis in original).
The conceptual affinity of the preemption doctrine and the dormant Commerce Clause is reflected in cases where both types of challenges are raised against the same statute. For example, in City of Philadelphia v. New Jersey,
The resemblance between preemption and dormant Commerce Clause arguments is especially clear in cases addressing whether a federal statute gives congressional consent to state regulation and therefore insulates a state law from dormant Commerce Clause challenge. In Sporhase v. Nebraska, ex rel. Douglas,
In this case, as in Branson, Congress has spoken. A central question is whether the Red River Compact authorizes the Oklahoma statutes that limit interstate commerce in water. Whether the issue is congressional preemption in Branson or congressional consent in this case, both are hinged to structural analysis and determining congressional intent.
The majority correctly indicates that Hugo and Irving have their own economic interests in the outcome of the litigation. But it does not follow that their claim is correctly characterized as based on “constitutional provisions ... written to protect individual rights.” Branson,
Given our Article III standing requirements calling for a plaintiff to show a redressable individual injury in all federal cases, individual interests are virtually always at stake irrespective of the legal basis for the claim. It does not follow that all such claims except for preemption cases fit Branson’s category of individual rights claims. Dormant Commerce Clause claims fit Branson’s structural category.
The scope of analysis presented here is narrow and does not envision, as the ma
4. Hugo’s Independence
According to Branson, in addition to making a claim based on a structural right, a political subdivision must be “substantially independent” from its parent state to have standing. See Branson,
The City of Hugo is substantially independent of Oklahoma. Hugo can hold property in its own name, enter into contracts, and sue and be sued in its own name. See Okla. stat. tit. 11, 22-101, 22-104, 37-117. Because Hugo is raising a claim based on a constitutional provision that protects structural rights and is substantially independent from the State of Oklahoma, I would hold that Hugo has standing.
B. Irving
Even if the City of Hugo lacks political subdivision standing, this case should proceed to the merits because the City of Irving has standing to raise the dormant Commerce Cause claim. As the majority notes, Irving, a Texas municipality, faces no political subdivision standing bar. The majority holds that Irving does not meet the redressability requirement of Article III standing.
“Standing under Article III of the Constitution requires that an injury be concrete; particularized, and actual or imminent; fairly traceable to the challenged action; and redressable by a favorable ruling.” Monsanto Co. v. Geertson Seed Farms, — U.S. -,
Irving’s alleged injury is its inability to import water from Oklahoma pursuant to its contract with Hugo. Irving claims that certain Oklahoma water statutes cause this injury because they restrict interstate water transfers compared to intrastate water transfers. The injury is redressable because a successful dormant Commerce Clause challenge to these statutes will remove a major barrier to Irving’s plan to use Hugo’s water.
The majority argues that Irving’s contract with Hugo makes Irving’s Article III standing' dependent on Hugo’s standing and that dismissal of Hugo under the political subdivision standing doctrine eliminates redressability for Irving. But in my view, the contract cuts the other way. By entering the contract, Hugo as seller and Irving as buyer of water have an equal and mutual stake in performance of the contract and the transfer of the water. Hugo, not Irving, is the applicant to the OWRB for approval of the water transfer. But even if Hugo is dismissed from this case
Irving has as much stake in the application as Hugo does by virtue of their contract, and Irving’s dormant Commerce Clause claim, if successful, would declare the Oklahoma water statutes unconstitutional and thereby help pave the way for approval of the application. The contract ties Irving to the OWRB’s decision on the application and enables Irving to meet the elements of Article III standing. It is reasonable to expect that the OWRB would respect and follow a decision of this court that the Oklahoma water laws restricting interstate transfer of water from Hugo to Irving are unconstitutional under the dormant Commerce Clause.
For its redressability analysis, the majority relies on Wyoming Sawmills Inc. v. U.S. Forest Service,
Wyoming Sawmills has not shown that a timber lease would ‘likely’ become available on the lands within the area of consultation if plaintiff were to have the HPP set aside ... the federal agency has complete discretion as to whether to offer the opportunity sought by the plaintiff, and accordingly the courts do not have the power to grant the only relief that would rectify the alleged injury.
Id. at 1249.
Wyoming Sawmills’ injury was not redressable because the relief it sought— securing a timber lease in the protected area — was too speculative and remote even if the timber company prevailed on its Establishment Clause claim against the Forest Service. Even if it lost the case on the merits, the Forest Service would still have had complete discretion on whether to offer timber leases in the area at issue. Even if leasing opportunities were offered, Wyoming Sawmills would need to qualify for and apply to receive one, and then the company might be competing with others for the lease. Finally, the Forest Service would need to select the company from among the lease applicants.
Wyoming Sawmills is sufficiently different from this case that it supports standing redressability here by comparison. Hugo holds Oklahoma water permits. Hugo and Irving have entered a contract for Irving to use Hugo’s water in Texas. Hugo has applied to the OWRB for approval to implement the contract. Irving alleges that the Oklahoma water laws on out-of-state water use block performance of the contract. With or without Hugo, a successful dormant Commerce Clause challenge would redress this problem by removing a major state statutory obstacle to securing Irving’s contractual water rights through Hugo’s application.
Irving’s situation resembles the plaintiffs in City of Altus v. Carr,
Because invalidation of the Oklahoma statutes under the dormant Commerce Clause would redress Irving’s alleged injury, I would hold that Irving, like Hugo, has standing to raise its dormant Commerce Clause claim.
. The issue here differs from our contemporary understanding of Article III standing, which focuses on a plaintiff's personal stake in redressing an injury through federal litigation. In Rogers v. Brochette,
This principle appears to be based on implied federalism limits. If the political subdivision standing doctrine blocks federal court interference with the “internal political organization of states,” neither the preemption claim in Branson nor Hugo’s claim here undermines that principle. We must, of course, analyze Hugo's suit under our circuit’s precedent, which is the analytical framework developed in Branson. That framework allows political subdivision standing "when the constitutional provision that supplies the basis for the complaint was written to protect ... structural rights.”
. Hugo's claim is not based on the Contract Clause or the Due Process Clause, and it has nothing to do with Hugo's "boundaries'' or "identity.” Gomillion,
. Compare Gomillion,
. There is a circuit split on the political subdivision standing doctrine. The Ninth Circuit appears to be alone in adopting a per se rule against a political subdivision having standing to sue its parent state. See City of S. Lake Tahoe v. Cal. Tahoe Reg’l Planning Agency,
The Fifth and Eleventh Circuits join the Tenth Circuit in rejecting a per se rule. See Rogers v. Brockette,
Other circuits have expressed skepticism about a per se rule without definitively resolving the issue. See City of Charleston v. Pub. Serv. Comm’n of W. Va.,
Even the Ninth Circuit’s rule has been called into question. See Palomar,
. This is not to suggest that Allen erased the political subdivision standing doctrine sub silencio. The Supreme Court has cautioned that "[wjhen a potential jurisdictional defect is neither noted nor discussed in a federal decision, the decision does not stand for the proposition that no defect existed." Ariz. Christian Sch. Tuition Org. v. Winn, - U.S. 1255,
. One reason for courts to be skeptical about a blanket standing prohibition is that the early cases failed to specify clearly the constitutional basis for the doctrine. For example, the majority notes "there is serious reason to doubt whether 'standing' in the Article III context is at issue.” Maj. Op. at 1255 n. 4. Given the doctrine's uncertain foundation, courts such as Branson have regarded the TrentonfWilliams precedent as limited to certain constitutional provisions. With the early cases standing for such a "limited proposition,” Branson,
.The majority refers to Ysursa v. Pocatello Educ. Ass'n,
legislative action is of course subject to First Amendment and other constitutional scrutiny whether that action is applicable at the state level, the local level, both, or some subpart of either.” Id. at 1100. The Court said it was "aware of no case suggesting that a different analysis applies under the First Amendment depending on the level of government affected, and the unions have cited none.” Id. Ysursa says nothing about whether local gov-
. The majority quotes from Rogers that "[tjhere is every reason to think that Congress may interfere with a state's internal political organization in ways that the Constitution itself does not interfere; the Supreme Court has never said otherwise.”
. As Branson explained, "a suit against a state official in his representative capacity is considered a suit against the official’s office, which is no different from a suit against the
. Neither the Supreme Court nor a circuit court has addressed this specific question. We should expect a paucity of dormant Commerce Clause cases of this type. State regulation to benefit local interests rarely disadvantages local governments.
. This dissent compares preemption claims and dormant Commerce Clause Claims. It also analyzes the Branson distinction between constitutional provisions that protect individual rights with those that protect structural rights. Nowhere does it address what the majority calls a “false dichotomy” between "preemption claims” and “individual rights” claims. Maj. Op. at 1262-63. The majority,
. Instructive analysis comes from an unlikely source. In Star-Kist Foods, Inc. v. County of Los Angeles,
. The few district court cases from other circuits that involved dormant Commerce Clause claims and the political subdivision standing doctrine do not tell us much. In City of New Bedford v. Woods Hole, No. Civ. A 00-12049-DPW,
