Ernеst B. FENTON and Law Office of Ernest B. Fenton, P.C., Plaintiffs-Appellees, v. Kelli DUDLEY; Law Office of Kelli Dudley; Andrew Sidea; and Law Office of Andrew Sidea, P.C., Defendants-Appellants.
No. 14-1067.
United States Court of Appeals, Seventh Circuit.
Argued May 28, 2014. Decided Aug. 1, 2014.
761 F.3d 770
The United States Code is jam-packed with imperative language. Rules of law tell litigants, and courts, what must be done. These rules are enforced when their beneficiaries invoke them. If they are also treated as jurisdictional, however, then courts must raise the subject on their own, even when litigants choose to waive or forfeit their rights. Declaring a rule to be “jurisdictional” not only makes extra work for judges but also creates a prospect that the time and energy invested in a case will prove to be wasted, when an appellate court dismisses the suit or directs the litigants to start over. Curtailing the need for judges to resolve issues on their own initiative, and the risk that both private and judicial efforts will be squandered, are the principal reasons why the Supreme Court has insisted in recent years that very few rules be treated as jurisdictional. See, e.g., Gonzalez, 132 S.Ct. at 647-48.
The text of
AFFIRMED
Ernest B. Fenton, Attorney, Homewood, IL, pro se.
Robert Brand Newman, Attorney, Newman & Meeks, Cincinnati, OH, for Defendants-Appellants.
Before FLAUM, MANION, and TINDER, Circuit Judges.
This appeal concerns the conditions under which a defendant may remove a case to federal court pursuant to the civil rights removal statute,
I. Background
In 2010, Tonya Davis retained Ernest Fenton to represent her in connection with a home foreclosure proceeding. Davis later sued Fentоn for malpractice. Davis claimed that, although she paid Fenton several thousand dollars for legal assistance, he did virtually nothing to help her keep her home. She also claimed that he targeted her for inferior service based on her race, in violation of the Fair Housing Act,
The complaint in the Davis case was filed in 2013. Shortly thereafter, Fenton brought his own lawsuit in state court, not against Davis but against Davis‘s lawyers: Kelli Dudlеy and Andrew Sidea. Fenton alleged that Dudley and Sidea had intentionally spread false information about him to his clients and business associates. Fenton also alleged that Sidea, who had previously worked at Fenton‘s law office, had improperly obtained confidential information about Fenton‘s clients and shared it with Dudley. The complaint advanced claims of conversion, tortious interference with a business relationship, and defamation, and it sought damages and an injunction.
After learning of Fenton‘s state-court complaint, Dudley and Sidea filed a notice of removal in federal district court. They asserted as bases for removal both the general removal statute,
Back in federal court, Fenton filed a motion to remand the Fenton v. Dudley case to state court. The district court found that the case did not meet the removal requirements under either
II. Discussion
As a preliminary matter, we note that the Cook County Circuit Court‘s decision to enter an injunction after the case had been removed to federal court is clearly contrary to
A.
The civil rights removal statute provides for the removal from state court of any civil action or criminal prosecution “[a]gainst any person who is denied or cannot enforce in the courts of such State a right under any law providing for the equal civil rights of citizens of the United States.”
Dudley and Sidea argue that Fenton‘s lawsuit is calculated to deny them their rights under section 818 of the Fair Housing Act. That section makes it “unlawful to coerce, intimidate, threaten, or interfere with any person ... on account of his having aided or encouraged any other person in the exercise or enjoyment of[] any right granted or protected by” the Act.
Dudley and Sidea further argue that they have been denied or cannot enforce their federal aid-or-encourage right in Illinois state courts. In particular, they argue that the state court‘s injunction—which prohibits them from contacting “any former or current client and/or employee of the Law Offices of Ernest B. Fenton“—makes it impossible for them to exercise their (or their client‘s) Fair Housing Act rights. Read literally, the injunction would prevent Dudley and Sidea from speaking to their client, since Davis is Fenton‘s former client; to any other of Fenton‘s clients, in order to substantiate Davis‘s claim; and even to each other, since Sidea was briefly Fenton‘s employee. The result, they say, is a complete inability to prosecute Davis‘s case.
B.
To evaluate these arguments, we first turn to a pair of Supreme Court decisions issued on the same day in 1966: Georgia v. Rachel, 384 U.S. 780, 86 S.Ct. 1783, 16 L.Ed.2d 925 (1966), and City of Greenwood v. Peacock, 384 U.S. 808, 86 S.Ct. 1800, 16 L.Ed.2d 944 (1966). The defendants in both cases sought to remove state criminal prosecutions to federal court under
A defendant who seeks to remove a case under
In addition to identifying a civil-equality right, a defendant seeking to remove under
But Rachel recognized an exception to this rule: “even in the absence of a discriminatory state enactment,” thе Court held, removal could be proper if “an equivalent basis could be shown for an equally firm prediction that the defendant would be ‘denied or cannot enforce’ the specified federal rights in the state court.” 384 U.S. at 804, 86 S.Ct. 1783 (emphasis added). The Court reasoned that this limited exception was consistent with the purposes behind the “formal expression” requirement—allowing removal only where it was clear before trial that the defendant would be denied his federal equality rights, and avoiding the “unseemly” task of federal judges assessing the “likely disposition of particular federal claims” by the state judiciary. Id. at 803, 86 S.Ct. 1783.
The Court proceeded to explain why the Rachel defendants met this new equivalent-basis exception. Section 203(a) of the Civil Rights Act of 1964 gave the defendants the right to equal enjoyment of any place of public accommodation without discrimination because of race. Id. at 793, 86 S.Ct. 1783. Moreover, just the previous term, the Supreme Court had construed section 203(c) of the Act to prohibit not only the conviction, but also the “prosecution of any person for seeking service in a covered establishment, because of his race or color.” Id. (quoting Hamm v. City of Rock Hill, 379 U.S. 306, 311, 85 S.Ct. 384, 13 L.Ed.2d 300 (1964)). If the defendants’ allegations proved true, then the “mere pendency of the [criminal trespass] prosecutions” deprived them of their federal right “to be free of any attempt to punish them for protected activity.” Id. at 805, 86 S.Ct. 1783 (internal quotation marks omitted). The basis for the clear prediction that the defendants could not еnforce their federal-equality rights in state court was thus plain: “The burden of having to defend the prosecutions is itself the denial of a right explicitly conferred by the Civil Rights Act of 1964.” Id.
The equivalent-basis exception announced in Rachel is quite narrow, however, as City of Greenwood v. Peacock made clear. The defendants in Peacock had been charged with disturbing the peace and obstructing the streets while registering black voters. They brought suit under a variety of provisions, including
To qualify for removal under
C.
Returning to the case before us, the defendants briefly suggest that the state court‘s preliminary injunction is itself a “formal expression of state law” justifying removal. The injunction is indeed troubling, as we have indicated. But the Suprеme Court has made clear that a “formal expression” of state law means “a law of general application,” Rachel, 384 U.S. at 800, 86 S.Ct. 1783—something like “a state legislative or constitutional provision, rather than a denial first made manifest in the trial of the case,” Johnson v. Mississippi, 421 U.S. 213, 219, 95 S.Ct. 1591, 44 L.Ed.2d 121 (1975) (internal quotation marks omitted). Whatever we may think of the injunction‘s merits, it purportedly applies only to the parties before the court; it is not a law of general application. So if Dudley and Sidea are to remаin in federal court, they must show that their case fits into Rachel‘s exception—that is, that federal law both (1) “confers an absolute right” on them to engage in the conduct Fenton accuses them of, and (2) “confers immunity” from being hauled into court on such grounds. Peacock, 384 U.S. at 826-27, 86 S.Ct. 1800.
We conclude that their argument founders at the first step. While the Civil Rights Act gave the defendants in Rachel an absolute right to remain in a place of public accommodation when asked to leave on the basis of race, the Fair Housing Act gives Dudley and Sidea no comparable right to commit defamation or interfere with a business relationship, even in service of their Fair Housing Act claim. Indeed, at oral argument counsel for the defendants admitted that the Act does not immunize the conduct at issue. In Rachel‘s terms, section 818 of the Fair Housing Act does not “substitute[] a right for a crime.” 384 U.S. at 805, 86 S.Ct. 1783; see also Hill v. Pennsylvania, 439 F.2d 1016, 1021 (3d Cir.1971). Of course, it may very well be that Dudley and Sidea did none of the things Fenton alleges; at this stage we are merely reading Fenton‘s complaint. But
Because we conclude that federal law does not give Dudley and Sidea a right to engage in the conduct Fenton alleges—defamation, tortious interference with a business relationship, and conversion—there is no need to decide whether the Fair Housing Act gives them immunity even from being brought to trial on these claims as well. Nevertheless, because the district court indicated that it thought the defendants had not satisfied the second
D.
The Civil Rights Act has an anti-retaliation provision, section 203(b), that closely corresponds to section 818 of the Fair Housing Act, which Dudley and Sidea invoke. Compare
In light of Rachel‘s focus on section 203(c) of the Civil Rights Act, some courts—most prominently, the Second Circuit in Emigrant Savings Bank v. Elan Management Corp., 668 F.2d 671 (1982)—have concluded that only cases involving a statute with explicit anti-prosecution language are removable under
Dеscribing the parameters of this dispute requires a circuitous tour through two cryptic footnotes in Peacock. As we said, the defendants in Peacock specifically cited
In a footnote describing the basis of the defendants’ claim for removal, the Peacock Court quoted the text of
Section 203(c) of the Civil Rights Act of 1964, the provision involved in Georgia v. Rachel, explicitly provides that no person shall “punish or attempt to punish any person for exercising or attempting to exercise any right or privilege” secured by the public accommodations
section of the Act. None of the federal statutes invoked by the defendants in the present case contains any such provision. See note 3 and note 7, supra.
Id. at 827 n. 25, 86 S.Ct. 1800 (emphasis added and citations omitted).2
It is unclear what inference lower courts should draw from Peacock‘s footnote 25 and its cross-reference to footnote 3. On the one hand, the Peacock defendants did not “invoke” section 11(b) of the Voting Rights Act in their removal petition; if they had, perhaps the Court would have found its “intimidate, threaten, or coerce” language broad enough to warrant removal. On the other hand, the Court singled out the “punish or attempt to punish” language in section 203(c) of the Civil Rights Act. And the Court was undoubtedly aware that section 11(b) at least arguably applied, for it cited that section along with
In Whatley, the Fifth Circuit adopted the former interpretation. Whatley, like Peacock, involved a state prosecution of defendants registering African-Americans to vote. This time, however, the defendants specifically invoked section 11(b) of the Voting Rights Act in their removal petition. The Fifth Circuit concluded that Peacock did not bar removal under
About a decade later, in a case (like ours) involving section 818 of the Fair Housing Act, the Second Circuit rejected Whatley‘s reading of Peacock. Emigrant Savings, 668 F.2d at 675 n. 4. In the Second Circuit‘s view, the Peacock footnotes and the fact that Rachel relied only on the “punish or attempt to punish” language in section 203(c) of the Civil Rights Act—and not the more generic anti-retaliation language in section 203(b)—showed that “the permissible range of removal ... was limited to statutes containing explicit anti-prosecution language.” Id. at 675. As a result, removal was not appropriate where the defendant merely alleged that the plaintiff brought an action to intimidate or coerce the defendant for exercising his federal rights. Id. at 676.
Although we do not decide, it may well be that the Second Circuit has the better interpretation. In particular, we note that the Rachel defendants’ removal petition did not invoke the provision on which the Supreme Court ultimately relied, either. See Rachel, 384 U.S. at 793 n. 21, 86 S.Ct. 1783 (“Since the petition predated the enactment of the Public Accommodations Title of the Civil Rights Act of 1964, it could not have explicitly alleged coverage under that Act. It recites facts, however, that invoke application of that Act on appeal.“). This makes the Fifth Circuit‘s basis for distinguishing Whatley from Peacock—that the Peacock defendants did not specifically advance a section 11(b) theory before the Court—less convincing. Surely the Peacock defendants also recited facts that “invoked the application of” the Voting
That said, the question is a close one, and plumbing the depths of the Court‘s infrequent pronouncements on this issue is unlikely to produce a totally satisfying answer.3 As even Judge Friendly, the author of Emigrant Savings, admitted, “it is arguable that citation in a footnote would be a rather elliptical way to decide such an important question.” New York v. Horelick, 424 F.2d 697, 702-03 n. 4 (2d Cir. 1970).
At least in the courts of appеals, the debate has cooled after Whatley and Emigrant Savings. Cf. Davis v. Glanton, 107 F.3d 1044, 1050-51 (3d Cir.1997) (noting that
III. Conclusion
In Johnson v. Mississippi, Justice Marshall stated that “[t]he line between Rachel and Peacock is that between prosecutions in which the conduct necessary to constitute the state offense is specifically protected by a federal equal rights statute under the circumstances alleged by the petitioner, and prosecutions where the only grounds for removal are that the charge is false and motivated by a desire to discourage the petitioner from exercising ... a federal right.” 421 U.S. at 234, 95 S.Ct. 1591 (Marshall, J., dissenting) (internal quotation marks omitted). Even if Dudley and Sidea are correct that Fenton has a retaliatory motivation, this case falls into the latter category and is not removable under
If the defendants’ Fair Housing Act rights have indeed been violated in this
AFFIRMED.
Notes
The dissent rejected the majority‘s distinction for removal purposes between statutes that prohibit “punishment” versus merely “injury, intimidation, or interference.” Id. at 235-36, 95 S.Ct. 1591 (Marshall, J., dissenting). It apparently agreed with Whatley that that Peacock‘s holding did not involve section 11(b). Id. at 236 n. 6, 95 S.Ct. 1591. Nevertheless, the dissent also indicated—analogously to what we hold today in Part II.C—that even if that provision had applied, removal still would have been inappropriate in Peacock because the defendants’ alleged conduct was not federally protected. Id.
