I. INTRODUCTION
Plaintiffs-appellants, consisting mainly of businesses and property owners in and around the Colorado city of Central City, sued the neighboring city of Black Hawk; Black Hawk’s mayor, city attorney, and city manager; and several casinos, associations, and individuals primarily in and around Black Hawk. Plaintiffs allege that defendants engaged in a conspiracy to restrain and monopolize trade in the limited gaming industry
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in Gilpin County, Colorado, in violation of federal and state antitrust laws. The United States District Court for the District of Colorado granted defendants’ motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6). This court has jurisdiction under 28 U.S.C. § 1291. Because plaintiffs’ claims for injunctive and declaratory relief became moot after the district court entered judgment in this case and defendants are immune from the remaining claims for damages, this court concludes that the complaint fails to state a claim on which relief can be granted.
II. BACKGROUND 2
Pursuant to the Colorado constitution, limited gaming is permitted in the state of Colorado only in the cities of Central City, Black Hawk, and Cripple Creek. Colo. Const, art. XVIII, § 9(1). Central City and Black Hawk are neighboring towns located approximately twenty-five miles west of Denver. At the time the complaint was filed, visitors could reach Central City only by taking Highways 119 and 279 through Black Hawk. Plaintiffs allege that casino customers passing through Black Hawk on their way to Central City often faced highway construction and detours engineered by Black Hawk in an attempt to divert passengers away from Central City and into its own casinos.
To avoid the continuing loss of business to Black Hawk, Central City began planning a new highway known as the “southern access road” that would bypass Black Hawk and provide direct access to Central City from Interstate 70. A substantial portion of the area necessary for construction of the road was owned by Proland Management, LLC (“Proland”), which desired to annex its property to Central City in order to obtain municipal services. Central City began negotiating an agreement with Proland under which the property would be annexed and Proland would in turn pay for construction of the portion of the road crossing its property.
Under the Colorado constitution, municipalities may not annex land without the agreement of more than fifty percent of the landowners in the area to be annexed. Colo. Const, art. II, § 30(l)(b).
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Proland acquired sufficient signatures to satisfy the requirements of the constitution and submitted its annexation petition to Central City. In an attempt to block Proland’s petition, Black Hawk allegedly conspired with the other defendants to purchase with public funds four mining claims located within the area of the proposed annexation. Shortly before Central City’s scheduled hearing on the petition, Black Hawk then sold undivided one-percent interests in the mining claims to fourteen individuals and business entities for $500 each. These conveyances were styled as “open space preservation agreements,” but plaintiffs allege that then- actual purpose was to create enough landowners in the
The complaint further alleges that Black Hawk pressured landowner H. Thomas Winn to drop his petition to include a portion of his property in the annexation by threatening not to issue a certificate of occupancy for a casino Winn was planning to open in Black Hawk. When Winn withdrew his petition, the contiguity necessary for annexation was destroyed. Winn’s withdrawal, combined with the defeat of Proland’s annexation proposal, led Proland to abandon its annexation efforts and its offer to fund construction of the road.
Plaintiffs contend that once the road had been blocked, Black Hawk grew to dominate the limited gaming market in Gilpin County while casinos and related business in Central City fell into serious decline. A grand jury investigating the conveyances of the undivided interests in the mining claims concluded that Black Hawk’s actions violated the spirit of the Colorado constitution and election laws. The grand jury’s report also concluded that the actions of Black Hawk city officials constituted “misfeasance or malfeasance” and “misuse or misapplication of public funds.” Because the practices were not specifically prohibited by state law, however, the grand jury did not return an indictment.
Plaintiffs filed suit in the District of Colorado, raising a variety of claims under the Sherman Act, 15 U.S.C. §§ 1, 2; the Colorado Antitrust Act, Colo.Rev.Stat. §§ 6-4-104, 6-4-105; the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962; the Colorado Organized Crime Control Act, Colo.Rev.Stat. § 18-17-104; and Colorado contract and tort law. Plaintiffs requested declaratory and injunctive relief, compensatory damages, treble damages, punitive damages, costs, and attorneys’ fees. Through a series of procedural rulings by the district court and voluntary withdrawal of some of the claims by plaintiffs, the district court dismissed all of plaintiffs’ claims except those based on federal and state antitrust law. The court then held a hearing on the remaining issues and granted defendants’ motion to dismiss the Sherman Act claims pursuant to Rule 12(b)(6). The court elected not to exercise supplemental jurisdiction over the Colorado Antitrust Act claims and dismissed these claims without prejudice. On appeal, plaintiffs challenge only the dismissal of their Sherman Act and Colorado Antitrust Act claims. 4
III. STANDARD OF REVIEW
This court reviews de
novo
the dismissal of a complaint under Rule 12(b)(6).
S. Disposal, Inc. v. Tex. Waste Mgmt.,
IV. DISCUSSION
Section 1 of the Sherman Act prohibits “[ejvery contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States.” 15 U.S.C. § 1. Section 2 of the Sherman Act prohibits “monopolizing], or attempting] to monopolize, or combining] or conspiring] with any other
This court can affirm the district court’s dismissal on any ground sufficiently supported by the record.
Issa v. Comp USA
A. Injunctive and Declaratory Relief
This court need not reach the merits of plaintiffs’ claims for injunctive and declaratory relief because those claims became moot after the district court entered judgment in this case. Plaintiffs acknowledged at oral argument that Central City completed building the southern access road after the district court dismissed the case, and that their claims for injunctive relief have therefore become moot. In addition, the claims for declaratory relief have also become moot because a declaratory judgment would no longer have any effect on defendants’ behavior.
See Utah Animal Rights Coalition v. Salt Lake City
B. Noerr-Pennington Immunity
In addition to their claims for in-junctive and declaratory relief, plaintiffs also request monetary relief including compensatory damages, treble damages, punitive damages, costs, and attorneys’ fees. To the extent these claims are based on allegations that the non-governmental defendants 7 conspired with Black Hawk officials to block the proposed annexation, the claims are barred by the Noerr-Pen-nington doctrine.
The
Noerr-Pennington
doctrine was established by the Supreme Court in a line of cases beginning with
E. R.R. Presidents Conference v. Noerr Motor Freight, Inc.,
Aside from the allegations that certain defendants purchased interests in mining claims from the city, 8 there are no allegations in the complaint that non-governmental defendants engaged in any anticompeti-tive act other than the act of conspiring with Black Hawk officials. The complaint alleges that it was the city of Black Hawk, not the private defendants, that acquired the mining claims, divided them, and sold them with the purpose of blocking the proposed annexation. In addition, the complaint alleges that the decision whether to issue a certificate of occupancy to Winn “rested exclusively with Defendant Black Hawk” and that it was “Black Hawk, through its elected and/or appointed officials” that pressured Winn to pull out of the proposed annexation.
Standing alone, plaintiffs' allegations that the non-governmental defendants conspired with Black Hawk officials to block the southern access road is essentially an allegation that defendants met with city officials and urged them to take anticom-petitive action. For purposes of
Noerr-Pennington,
there is no distinction between petitioning government officials and conspiring with them.
City of Columbia,
Plaintiffs’ argument that defendants’ alleged conspiracy was undertaken solely for the purpose of restraining trade is irrelevant, because
“Noerr
shields from the Sherman Act a concerted effort to influence public officials regardless of intent or purpose.”
United Mine Workers v. Pennington,
C. Local Government Antitrust Act
a. The Black Hawk Officials
Although the
Noerr-Pennington
doctrine establishes that the non-governmental defendants are not liable for requesting that Black Hawk engage in anti-competitive activities, it does not resolve the question whether city officials Kathryn Eccker, Lynnette Hailey, and James Maloney are liable for acceding to these requests.
10
Defendants’ claims for monetary relief against Black Hawk officials, howev
Congress passed the LGAA in response to “an increasing number of antitrust suits, and threatened suits, that could undermine a local government’s ability to govern in the public interest.”
See Tarabishi v. McAlester Reg’l Hosp.,
Plaintiffs nevertheless argue the city officials were not “acting in an official capacity” within the meaning of the LGAA because they acted beyond the scope of their authority and pursuant to their personal interests when they entered into a conspiracy to block the southern access road. The legislative history of the LGAA, however, demonstrates that Congress intended the phrase “acting in an official capacity” to be given broad meaning encompassing all “lawful actions, undertaken in the course of a defendant’s performance of his duties, that reasonably can be construed to be within the scope of his duties and consistent with the general responsibilities and objectives of his position.”
Sandcrest Outpatient Svcs., P.A. v. Cumberland County Hosp. Sys., Inc.,
For these reasons, this court concludes that the Black Hawk officials are immune from monetary liability for Sherman Act violations.
b. The Private Defendants
Although the
Noerr-Pennington
doctrine establishes that the non-governmental defendants are not liable for their lobbying of Black Hawk, it does not establish whether these defendants are also immune to claims for monetary relief based on allegations that they purchased the undivided interests in mining claims for the purpose of blocking the proposed annexation.
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The purchase of these mining
The LGAA precludes monetary damages “in any claim against a person based on any official action directed by a local government.” 15 U.S.C. § 36(a). In determining whether the action of a private individual constitutes “official action directed by a local government” for purposes of the LGAA, other circuits have applied by analogy the Supreme Court’s precedents on the question whether a private individual’s action is entitled to state-action immunity under
Parker v. Brown,
The Conference Report to the LGAA, explicitly agreed to by both houses of Congress, explains that the phrase “official action directed by” found in
Parker
and subsequent cases interpreting it “shall apply by analogy to the conduct of a local government in directing the actions of nongovernmental parties, as if the local government were a state.” H.R. Conf. Rep. No. 98-1158,
reprinted in
1984 U.S.C.C.A.N. 4602, 4627;
see also Sandcrest,
The “clear articulation” requirement of
Midcal’s
first prong is satisfied if the provisions in question “plainly show that the legislature contemplated the kind of action complained of.”
Town of Hallie v. City of Eau Claire,
As with the city officials, plaintiffs’ allegations that the private defendants were engaged in a conspiracy to further private interests is irrelevant to the question whether they are entitled to immunity under the LGAA.
See City of Columbia,
D. Colorado Antitrust Act
Because the district court properly dismissed all of plaintiffs’ federal claims, it was within its discretion in declining to exercise supplemental jurisdiction over plaintiffs’ state-law claims under the Colorado Antitrust Act.
See
28 U.S.C. § 1367(c)(3);
Exum v. United States Olympic Comm.,
E. State-Law Tort Claims
As a final matter, plaintiffs argue the district court erred in dismissing with prejudice its state-law claims for intentional interference with prospective business advantage, civil conspiracy, and intentional interference with contractual relations. Plaintiffs explicitly withdrew these claims with prejudice as to defendants David Spellman, Haller Midcap, Tom Kerr, Kathryn Eccker, James Malo-ney, and Lynnette Hailey. As to the remaining defendants, plaintiffs withdrew the claims without stating whether the withdrawal was to be with or without prejudice. The district court ordered the claims dismissed with prejudice. Plaintiffs then filed a motion for “clarification” of the district court’s order. The district court denied the motion and reasserted that the dismissal was with prejudice.
Plaintiffs argue that voluntary dismissal of a claim by a plaintiff is without prejudice “[ujnless otherwise stated in the notice of dismissal.” Fed.R.Civ.P. 41(a)(1). As defendants correctly point out, however, Rule 41(a)(1) applies only to a voluntary dismissal by a plaintiff that was filed “at any time before service by the adverse party of an answer or of a motion for summary judgment,” or that is “signed by all parties who have appeared in the ac
When a party seeking to voluntarily dismiss a claim pursuant to Rule 41(a)(2) is silent as to whether the dismissal should be with or without prejudice, the district judge is required to interpret the motion one way or the other.
United States ex rel. Stone v. Rockwell Int’l Corp.,
y. CONCLUSION
Because plaintiffs’ claims for injunctive and declaratory relief became moot after the district court entered judgment in this case, this court DISMISSES those claims for lack of jurisdiction and VACATES the judgment of the district court as to those claims. This court AFFIRMS the judgment of the district court as to the claims for monetary relief and the dismissal with prejudice of plaintiffs’ claims for intentional interference with prospective business advantage, civil conspiracy, and intentional interference with contractual relations.
Notes
. Limited gaming is defined as "the use of slot machines and the card games of blackjack and poker, each game having a maximum single bet of five dollars.” Colo. Const, art. XVIII, § 9(4)(b).
. Plaintiffs’ claims were dismissed by the district court pursuant to Fed.R.Civ.P. 12(b)(6), and this court therefore "must take as true all well-pleaded allegations in the plaintiff's complaint."
Curtis Ambulance of Fla., Inc. v. Bd. of County Comm'rs,
. The Colorado constitution provides:
No unincorporated area may be annexed to a municipality unless one of the following conditions first has been met:
(a)The question of annexation has been submitted to the vote of the landowners and the registered electors in the area proposed to be annexed, and the majority of such persons voting on the question have voted for the annexation; or
(b) The annexing municipality has received a petition for the annexation of such area signed by persons comprising more than fifty percent of the landowners in the area and owning more than fifty percent of the area, excluding public streets, and alleys and any land owned by the annexing municipality; or
(c) The area is entirely surrounded by or is solely owned by the annexing municipality.
Colo. Const, art. II, § 30(1).
. Plaintiffs also argue the district court erred in declining to dismiss certain state-law tort claims without prejudice. See infra Section IV.E.
. The complaint also contains allegations that Black Hawk’s Las Vegas-style casinos violate a provision of the Colorado constitution requiring limited gaming to be conducted in structures conforming to the architectural styles of the state’s historic gambling towns. Colo. Const, art. XVIII, § 9(3)(b). Plaintiffs, however, explicitly disavowed reliance on these allegations in the district court. Plaintiffs similarly disavowed reliance on allegations that Black Hawk frequently engaged in road construction and detours in an effort to deter prospective Central City customers. Although they attempt to revive these allegations on appeal, this court will not consider arguments waived or abandoned in the district court.
O’Connor v. City & County of Denver,
Furthermore, plaintiffs did not argue before the district court and do not argue on appeal that their antitrust claims are supported by allegations in the complaint that defendants threatened other unnamed property owners with "adverse consequences” if they did not assist the effort to defeat the annexation, interfered with city council elections, threatened Central City with protracted litigation if the annexation was completed, presented "sham” objections in opposition to the proposed annexation, and interfered with the sale of municipal bonds. Accordingly, this court will hot consider these allegations in deciding whether the complaint can survive a motion to dismiss under Rule 12(b)(6).
. Plaintiffs argue the district court erred in failing to consider the contents of the grand jury report attached to the complaint in deciding whether the complaint stated an antitrust claim. Written documents attached to a complaint are properly treated as part of the pleadings for purposes of ruling on a motion to dismiss.
Hall v. Bellman,
. The non-governmental defendants are the Black Hawk Casino Owners Association; Horseshoe Casino, LLC d/b/a Canyon Casino; Black Hawk Brewery and Casino, LLC d/b/a Mardi Gras Casino; Black Hawk Gaming and Development Co., Inc.; Black Hawk Development North, LLC; BH Gateway, LLC d/b/a Jackpot Springs; Prospector 141, LLC; Woodmont Development Co., Inc.; Susan Barnes; Medill Barnes; Lary Brown; Phyllis Brown; and Herbert Bowles.
. These claims are discussed in Section IV. C.b, infra.
. Plaintiffs’ citation to
FTC v. Superior Court Trial Lawyers Ass’n
is inapposite.
. In addition to Eccker, Hailey, and Maloney, the city of Black Hawk was also named as a defendant in the initial complaint but was later dismissed as a party on plaintiffs' initiative. The trial court also dismissed claims against Aldermen David Spellman, Haller Midcap, and Tom Kerr, who were identified in the original complaint as agents of defendant Black Hawk Development North, LLC. Without supporting argument, plaintiffs ask this court to reinstate the claims asserted against these three defendants as agents of Black Hawk. This court declines the invitation to reinstate these defendants in light of its conclusion that Black Hawk officials are in any event immune from liability under the Local Government Antitrust Act of 1984.
. The complaint alleges that the following defendants purchased undivided one-percent interests in the mining claims in exchange for payments of $500: Susan Barnes; Medill
