INTRACOASTAL TRANSPORTATION, INC., and Anderson Marine Construction, Inc., Plaintiffs-Appellees, v. DECATUR COUNTY, GEORGIA, et al., Defendants, Department of Transportation, Defendant-Appellant.
No. 72-2700
United States Court of Appeals, Fifth Circuit
June 29, 1973
Rehearing and Rehearing En Banc Denied Aug. 28, 1973.
482 F.2d 361
Ben Kirbo, Bainbridge, Ga., for plaintiffs-appellees.
Harold Lambert, Bainbridge, Ga., for Decatur County.
Before WISDOM, GEWIN and COLEMAN, Circuit Judges.
In this admiralty action, the State of Georgia appeals pursuant to
The appellees countered that the Flint River was a navigable waterway and structures built over it were subject to federal regulation.4 They asserted that Georgia waived the defense of sovereign immunity by entering this federally regulated sphere of activity. The district court denied Georgia‘s motion to dismiss and we now review the propriety of that ruling.
We begin with the general observation that in a suit in admiralty, a state is entitled to the defense of sovereign immunity granted by the eleventh amendment. The Supreme Court has stated:
We repeat, the immunity of a state from suit in personam in the admiralty, brought by a private citizen without its consent, is clear.5
The appellees argue, however, that Georgia has impliedly consented to this suit by building a bridge over a navigable waterway, which is subject to plenary control by federal statutes.
Appellees place primary reliance on Parden v. Terminal Railway of the Alabama State Docks Department.6 In Parden, railroad employees sued an Alabama owned railroad under the
A State‘s immunity from suit by an individual without its consent has been fully recognized by the Eleventh Amendment and by subsequent decisions of this Court. But when a State leaves the sphere that is exclusively its own and enters into activities subject to congressional regulation, it subjects itself to that regulation as fully as if it were a private person or corporation.8
Appellees claim that their suit against Georgia falls within the Parden waiver exception to the sovereign immunity doctrine. We cannot agree with this conclusion.
The appellees have placed in proper focus the issue before this court:
The sole issue before this Court is one of jurisdiction. It is Defendant‘s [Georgia‘s] contention that this Court has no jurisdiction because of sovereign immunity. It is Plaintiffs’ contention that Defendant, by the operation and maintenance of a drawbridge over a navigable waterway of the United States, has waived sovereign immunity and thus the Court does have jurisdiction. The question then boils down to whether or not there has been a waiver of sovereign immunity. Appellees’ Brief at 2-3.
We thus address ourselves to this “boiled down” issue.
At least one circuit has upheld a state‘s sovereign immunity defense even where Congress has created a private cause of action under a federal regulatory scheme. See, Employees of the Department of Public Health & Welfare v. Department of Public Health & Welfare, State of Missouri, 452 F.2d 820 (8th Cir. 1971) (en banc). The Eighth Circuit rejected a simplistic reading of the Parden decision, correctly recognizing that many policy considerations must be weighed before a State can be said to have “waived” its immunity by conducting activities subject to federal regulation. The Employees case involved an action by state hospital workers against Missouri for overtime compensation provided by the
The hospital workers based their waiver claim on
Moreover, the Court was concerned with the effect a holding of implied waiver would have on the viability of the eleventh amendment. The Court noted that it is one thing to subject a State to suit when it enters into the rather unusual activity of operating a railroad “for profit” but quite another when the State operates a hospital which is widely recognized as a proper state function if not a compelled duty. All States operate hospitals and the burden created by holding a State amenable to private suits would have a greater impact on the financial resources of states than the particularly limited holding of Parden. This problem was accentuated by the fact that the Act provided for double recovery and attorney‘s fees for the successful private litigants.12
Apparently the crucial factor which must have weighed most heavily in the Court‘s reasoning was the absence of any express intent by Congress to subject the States to private suits. In face of the express limitations on a federal court‘s jurisdiction by the eleventh amendment, the court refused to expand the implied waiver theory or even entertain such a sensitive constitutional issue, without at least an express congressional provision which made a State amenable to such a suit. Justice Douglas stated:
It is not easy to infer that Congress in legislating pursuant to the Commerce Clause, which has grown to vast proportions in its applications, desired silently to deprive the States of an immunity they have long enjoyed under another part of the Constitution. Thus, we cannot conclude that Congress conditioned the operation of these facilities on the forfeiture of immunity from suit in a federal forum. 411 U.S. at 285.
*
But we decline to extend Parden to cover every exercise by Congress of its commerce power, where the purpose of Congress to give force to the Supremacy Clause by lifting the sovereignty of the States and putting the States on the same footing as other employers is not clear. 411 U.S. 286.
Thus, the Employees decision added an additional requirement to the Parden test for determining whether a private party may successfully invoke a federal court‘s jurisdiction in his suit against a State. It is no longer sufficient merely to show that a State has entered a federally regulated sphere of activity and that a private cause of action is created for violating the applicable federal provision, but in addition the private litigant must show that Congress expressly provided that the private remedy is applicable to the States.13
It is apparent that appellees have met the first requirement of Parden because Georgia has entered a field of activity extensively regulated by federal statute. However a careful reading
We cannot concur in the result reached by the Fourth Circuit in Chesapeake Bay Bridge & Tunnel District v. Lauritzen,15 where the court held that the Act did create a cause of action in private parties. We feel that a careful reading of the cases relied upon will not sustain the conclusion reached by that court, particularly in view of the recent Supreme Court decision in the Employees case.16
The conclusion reached today is in accord with recent pronouncements of this Court. We have previously stated that:
Further we do not deem a mere entry into an area regulated by international treaty as an automatic waiver of sovereign immunity. As long as the sovereign immunity claim does not prevent federal relief which would otherwise be attainable, we see no virtue in invoking federal jurisdiction. Here no relief is possible because no discrimination is evidenced.17
The “Bridge Act of 1906” does not create a cause of action in private parties and hence sustaining the state‘s claim to sovereign immunity will not deny appellees relief to which they would otherwise be entitled.18
Additionally, we discern a new approach to a private litigant‘s attempt to sue a state under federal regulatory acts. Many students of constitutional law often question the purpose and focus of the eleventh amendment in light of several recent court decisions which have made its provisions a shallow and meaningless command. However we are not ready to cast aside the clear meaning of that provision without definite directives from Congress to do so.
Against the unambiguous prohibitions of the eleventh amendment, we deem it constitutionally insufficient for a court merely to conclude that Congress by enacting a federal regulatory scheme implied that a state would be amenable to its provision in a suit by a private party. If Congress wishes a state to be amenable to a private suit then we think it is up to that branch to take the proper action necessary for such a result. We believe it is an improper function of the federal judiciary to whittle away at the scope of a constitutional amendment under the guise of such slogans as “common sense” or “implicit purposes.” Common sense tells us that the eleventh amendment has viability today as it did in 1906. Until Congress directs us otherwise, we refuse to do by judicial fiat what is properly within Congress’ power to do under the commerce clause.
Reversed and remanded with directions.
WISDOM, Circuit Judge (dissenting):
I respectfully dissent.
Today, the Court holds that even though a state has waived its immunity at common law and under the eleventh amendment by entering a federally regulated sphere of activity, it is still not amenable to suit by a private person for violating a federal statute unless Congress has expressly provided that the private enforcement remedy is applicable in suits against the states. The majority relies on Employees of the Department of Public Health and Welfare of Missouri v. Department of Public Health and Welfare of Missouri, 1973, 411 U.S. 279, 93 S.Ct. 1614, 36 L.Ed.2d 251 (April 18, 1973), to support its holding. I think, however, that a fair reading of that case discloses no such requirement. Furthermore, the Court‘s holding is in direct conflict with Parden v. Terminal R. Co., 1964, 377 U.S. 184, 84 S.Ct. 1207, 12 L.Ed.2d 233, a case which the Supreme Court did not purport to overrule in Employees.
In Parden the plaintiffs, citizens of Alabama, sued the defendant state-owned railroad in federal district court to recover damages under the
In so holding, the Court rejected the argument of the dissenting justices that immunity should be disallowed “only when Congress has clearly considered the problem and expressly declared that any state will be deemed thereby to have waived its immunity. . . .” 377 U.S. at 198-199.
Employees presented a materially different situation. There, the plaintiffs, employees of state health facilities, sought to recover overtime compensation due under section 16(b) of the
Where employees in state institutions, not conducted for profit, have such a relation to interstate commerce that national policy, of which Congress is the keeper, indicates that their status should be raised, Congress can act. And when Congress does act, it may place new or even enormous fiscal burdens on the States. Congress acting responsibly would not be presumed to take such action silently. The dramatic circumstances of the Parden case, which involved a rather isolated state activity, can be put to one side. We deal here with problems that may well implicate elevator operators, janitors, charwomen, security guards, secretaries and the like in every office building in a State‘s governmental hierarchy. Those who follow the teachings of Kirschbaum v. Walling, [1942, 316 U.S. 517, 62 S.Ct. 1116, 86 L.Ed. 1638] and see its manifold applications will appreciate how pervasive such a new federal scheme of regulation would be. 411 U.S. at 284.
Furthermore, section 16(b) allowed the employees to recover both the compensation due them and an equal amount as liquidated damages and attorneys fees. The Court said:
It is one thing, as in Parden to make a state employee whole; it is quite another to let him recover double against a State. Recalcitrant private employers may be whipped into line in that manner. But we are reluctant to believe that Congress in pursuit of a harmonious federalism desired to treat the States so harshly. The policy of the Act so far as the States are concerned is wholly served by allowing the delicate federal-state relationship to be managed through the Secretary of Labor. 411 U.S. at 286.
With respect to alternate avenues for enforcement of the plaintiffs’ statutory rights, the Court noted that sections 16(c) and 17 of the Act authorized the Secretary of Labor to enjoin violations and to obtain restitution in behalf of employees. Also, section 16(b) authorized employee suits in “any court of competent jurisdiction“. Arguably, the Court said, this would permit the plaintiffs to sue in a state court to enforce their rights under the Act. In these circumstances, the Court was unwilling to infer that Congress intended to lift the states’ immunity from suit.
The teaching of Employees may be stated as follows: Where (1) the fiscal burdens that would be placed on the states by the applicable federal statute are great and the new federal scheme of regulation pervasive and (2) there are alternate avenues for the enforcement of the private party‘s rights under the statute, a congressional intent to lift the states’ immunity will not be inferred absent some indication to that effect in ei
Applying this standard to the present case, I think it clear that Congress has lifted the states’ veil of sovereign immunity. The
Furthermore, unlike the plaintiffs in Employees, the plaintiff in the present case is not able to enforce his statutory rights by alternate means. There is no provision in the Act permitting the federal government to sue to recover the compensation due a private party for violations; nor does the Act specify that a private party may sue in state courts to enforce his rights. Rather than simply being relegated to another forum, as in Employees, here the plaintiff is presumably foreclosed from obtaining any relief in any forum.
I would conclude, therefore, that the plaintiff‘s suit is not barred by sovereign immunity. The majority would require express statutory language that private enforcement remedies are applicable in suits against the states. To me, however, such a rule is contrary to the case law, to common sense, and to the usual presumption that when Congress acts it is deemed to exercise its power to its utmost extent. Under the commerce clause, Congress had the authority to enact the present legislation. For the reasons previously stated, the Act should be construed as applying to private enforcement suits against the states. As the majority acknowledges, Georgia, by entering a federally regulated sphere of activity, waived whatever immunity it had at common law or under the eleventh amendment. There the matter should end.
I also disagree with the majority‘s holding that the
The Lumber Company, being the user of the navigable stream which was obstructed in violation of the statute, was a beneficiary of the statute, forbidding its obstruction, and the remedy given by the statute was available
in behalf of the Lumber Company. The suit was maintainable in the court below as one arising under the laws of the United States, as a right asserted and a remedy sought by the amended bill were based on acts of Congress. 24 F.2d at 765.
In Lauritzen v. Chesapeake Bay Bridge and Tunnel Authority, E.D.Va.1966, 259 F.Supp. 633, aff‘d 4 Cir. 1968, 404 F.2d 1001, the Fourth Circuit held that the
It is true that the federal navigation regulations do not expressly provide a cause of action for injured parties . . . but such liability is clearly implied. Even though it be conceded that the statutes pertaining to the protection of navigable waters,
33 U.S. C. § 401 et seq. , are penal in nature, it is clear that civil liability may be derived therefrom, both in favor of the United States, United States v. Perma Paving Co., 332 F.2d 754 (2 Cir. 1964), and private parties, Morania Barge No. 140, Inc. v. M. & J. Tracy, Inc., 312 F.2d 78 (2 Cir. 1962). Violation of the navigation laws gives rise to a presumption of negligence, which, if not rebutted, may result in liability to the negligent party. Reading Co. v. Pope & Talbot, Inc., 192 F. Supp. 663 (E.D.Penn.1961), aff‘d 295 F.2d 40 (3 Cir. 1961). We think it is evident that the regulations pertaining to the obstruction of navigable waters were manifestly intended for the protection of private parties such as the libelant here, even though the enforcement of these provisions was vested in the United States. 259 F.Supp. at 638. A similiar result was reached in Adams v. Harris County, Texas, S.D.Tex.1970, 316 F.Supp. 938.
The majority has not attempted to distinguish Lauritzen but is satisfied instead to dismiss it perfunctorily. Private civil remedies have been implied from federal statutes beginning in 1916 with Texas & Pacific Ry. Co. v. Rigsby, 241 U.S. 33, 36 S.Ct. 482, 60 L.Ed. 874, where the Court held that an employee could recover damages under the
The present case is sui generis. The
For the reasons stated, I would affirm the decision of the district court.
ON PETITION FOR REHEARING AND PETITION FOR REHEARING EN BANC
PER CURIAM:
The Petition for Rehearing is denied and no member of this panel nor Judge in regular active service on the Court
WISDOM, Circuit Judge, (dissenting):
I would grant the rehearing for the reasons stated in my dissent to the majority opinion.
