Plaintiff J. Randolph Lipscomb initiated this class action in federal district court, seeking a declaration as to the validity of certain leases of Mississippi sixteenth section land. In light of the state law issues involved in the case, the district court abstained from decision. We conclude that the district court abused its discretion in declining to exercise its proper jurisdiction.
I.
In 1816, the United States purchased for $130,000 from the Chickasaw Nation title to land that now comprises parts of northern Alabama and Mississippi.. In 1817, following a pattern that had been in place since before the ratification of the U.S. Constitution,
see Papasan v. Allain,
Responding to the Congressional direction, Mississippi included in its 1817 Constitution a provision mandating that sixteenth section lands were never to be sold and that all funds *241 acquired by the state through the rental or lease of such lands were to be set aside “for the use of schools.” See Miss. Const, of 1817, art. 6, § 20. In 1821, the Mississippi legislature authorized the incorporation of the town of Columbus, which was located at an important crossing of the Tombigbee River. Intending to promote the development of Columbus, the legislature also established the Franklin Academy, the first public school in Mississippi. The legislature authorized the president and trustees of the Academy to lease certain lots in the Columbus sixteenth section “for the term of ninety-nine years, reserving an annual rent therefor.” See 1821 Miss. Laws Ch. XLVT, p. 73-74. The initial annual rent was to be determined by public auction. In 1830, concerned about the problem of lessees forfeiting their leases, thé legislature amended the 1821 statute and ordered the insertion of the phrase “renewable forever” in all past and future Columbus sixteenth section leases. See Act of December 13, 1830, 1830 Miss. Laws 14th Sess. Ch. II, pp. 9-10.
In 1890, Mississippi adopted a new constitution, parts of which are still in force today. The 1890 Constitution placed a new condition on all sixteenth section lands in the state, directing that “[l]and belonging to, or under control of the state, shall never be donated, directly or indirectly, to private corporations or individuals.” Miss. Const, of 1890, art. IV, § 95. Moreover, the 1890 Constitution limited the duration of leases of sixteenth section lands to twenty-five years. See id. art. VIII, § 211. In 1913, fears arose among the Columbus leaseholders that the constitution’s twenty-five year leasing limit might invalidate their pre-existing leases. Mindful of the Contracts Clause of the United States Constitution, see U.S. Const, art. I, § 10 (“No State shall ... pass any ... law impairing the obligation of contracts .... ”), the Mississippi legislature in 1914 responded to the Columbus lessees’ concerns by passing a law authorizing the renewal of the Columbus leases in 1920 at their original terms. See 1914 Miss. Laws Ch. 462. The leases were so renewed.
In 1989, however,, the Columbus leaseholders again became concerned following a Mississippi Supreme Court decision. In
Hill v. Thompson,
In 1988, after surveying Mississippi’s ease law, counsel for the Department of Housing and Urban Development in Jackson, Mississippi, determined that the 1890 Constitution rendered leaseholds of sixteenth section land in Columbus “virtually uninsurable.” In 1990, responding to Hill and unhappy with the revenues generated by the Columbus leases, the president of the Columbus School Board announced that the Columbus sixteenth section leases were invalid and would have to be renegotiated. Various leaseholders responded by filing suit in Chancery Court in Lowndes County, Mississippi, seeking a confirmation of title. On January 16, 1992, however, the suit was voluntarily dismissed, to permit the filing of this complaint in federal court.
A few days later, on January 24, 1992, Randolph Lipscomb 2 filed a putative class action in the United States District Court for the Northern District of Mississippi against the Columbus School District, the Mississippi Secretary of State (who is statutorily authorized to administer sixteenth section lands), and HUD. His suit sought a declaration that the Columbus leases were valid and that the lessees possessed the right to renew the leases in 2019 at their original terms. On July 31, 1992; recognizing that at least 1,473 *242 lessees had similar interests , in Lipscomb’s suit, the district court certified a class pursuant to Fed.R.Civ.P. 23. Lipscomb moved for summary judgment, and the Secretary of State moved 1) to decertify the class and 2) for the district court to abstain.
From February 1993 until July 1996, the district court held the case under advisement. On July 23, 1996, the court granted the Secretary of State’s motion to abstain, citing
Railroad Comm’n v. Pullman Co.,
II.
We review a district court’s decision to abstain for an abuse of discretion.
See Allen v. Louisiana State Bd. of Dentistry,
Á.
One of the two bases for abstention relied upon by the district court was Burford abstention. As the Supreme Court has de- ' fined the Burford doctrine:
Where timely and adequate state court review is available, a federal court sitting in equity must decline to interfere with the proceedings or orders of state administrative agencies: (1) when there are “difficult questions of state law bearing on policy problems of substantial public import whose importance transcends the result in the case then at bar;” or (2) where the “exercise of federal review of the question in a case -and in similar cases would be disruptive of state efforts to establish a coherent policy with respect to a matter of substantial public concern.”
New Orleans Pub. Serv., Inc. v. Council of New Orleans,
The district court erred in invoking
Burford
abstention. As we have stressed,
Burford
abstention requires the existence of a state administrative proceeding to which the federal court could defer.
See St. Paul Ins. Co. v. Trejo,
B.
The other abstention rationale cited by the district court was the
Pullman
doctrine. As the Supreme Court has explaihed
Pullman,
“federal courts should abstain from decision when difficult and unsettled questions of state law must be resolved before a substantial federal constitutional question
*243
can be decided. By abstaining in such eases, federal courts will avoid both unnecessary adjudication of federal questions and ‘needless friction with state policies....’”
Hawaii Hous. Auth. v. Midkiff,
Here, the district court abstained under Pullman after determining that a potential conflict between the 1914 Mississippi statute and the Mississippi Constitution of 1890 was a substantial question of state law that might moot the federal constitutional issue. This was error.
The district court’s
Pullman
rationale for abstention essentially ignored the bite of Lipscomb’s argument. Lipscomb contends that prior to 1890, lessees in Columbus obtained pursuant to statutory authorization ninety-nine year leases on Columbus property that were renewable at their original terms forever. Lipscomb argues that the School District cannot employ the 1890 Constitution’s prohibition against the donation of public lands to invalidate the Columbus leases, because doing so would impair the obligations of a contract in violation of the federal Contracts Clause. As Lipscomb asserts, the 1914 legislation, which confirmed that the leases could be renewed in 1920 at their original terms, is irrelevant to his argument. If the lessees enjoyed before 1890 a contractual right to renew their leases in perpetuity, they did not need a statute in 1914 to restate that right for them.
Cf. Read v. Plattsmouth,
107 U.S. (17 Otto) 568, 575-76,
The district court, however, focused solely on the.legality of the 1914 statute in deciding to abstain under
Pullman.
The court reasoned that since the leases were apparently renewed under the authority of the 1914 statute, it would take a Mississippi court to determine whether the 1914 statute conflicted with the 1890 Constitution.
Pullman
abstention is appropriate only when there exists an ambiguous issue of state law, the resolution of which by a state court might help a federal court to avoid a constitutional decision.
See Hawaii Hous. Auth.,
*244 Perhaps acknowledging the irrelevance of the 1914 statute, the Secretary of State advances an alternate basis for finding that this litigation implicates unsettled questions of state law. The Secretary of State argues that the 1830 statute granting the trustees of Franklin Academy the right to issue renewable-forever leases was later repealed by statutes in 1830 and 1833. Lipscomb’s own leases, along with many others that purportedly contain the renewable-forever terms, were crafted after 1830. Thus, argues the Secretary of State, there is an unsettled question of state law regarding the legality of the renewable-forever terms in the Columbus leases, which requires adjudication in the first instance in a Mississippi court.
The statute authorizing the Columbus trustees to issue renewable-forever leases was enacted' on December 13, 1830, and reads, in pertinent part:
[T]he Trustees of said Franklin Academy be, and they are hereby authorized to lay off and lease lots, not to consist of more than ten acres each, for the same time, and in like manner, and on like condition with those in the present plan of the town of Columbus, throughout the section; and that said Trustees be, and are hereby authorized to make out all leases for the lots of said section, for ninety nine years, dating from the first leasing of lots in said town of Columbus, renewable forever. Providing, always, that the payment of leases on said lots be made annually in advance, as before;' and that all leases heretofore made of lots, by the said Trustees, be renewable at the expiration of the time for which these were leases, in like manner as above, provided for, in cases of lots to be leased hereafter.
Act of December 13, 1830, 1830 Miss. Laws 14th Sess. Ch. II, pp. 9-10. The Secretary of State notes, however, -that three days later the Mississippi legislature passed a new law. This statute, dated December 16, 1830, directed the trustees of schools in a variety of counties, including Lowndes (the county containing Columbus), to lease sixteenth section lands for fixed ninety-nine year terms, whenever a “majority of the heads of families in any township” requested them to do so. Act of December 16, 1830, 1830 Miss. Laws 14th Sess. Ch. II, pp. 330-31. The December 16 statute also contained a repealing clause providing that “all acts and parts of acts coming within the meaning and purview of this act be, and the same are hereby repealed.” Id. 5 Furthermore, in 1833, the Mississippi legislature passed another sixteenth section statute, with substantially the same provisions as the December 16, 1830 statute. See Act of February 27, 1833, 1833 Miss. Laws pp. 452-54. 6 *245 Like the second 1830 act, the 1833 statute contained a clause dictating that “all acts and parts of acts contravening the provisions of this act be and the same are hereby repealed." Id.
The Secretary of State contends that there is a substantial question whether the second 1830 statute and the 1833 statute both repealed the first 1830 statute, which permitted renewable-forever leases. Accordingly, argues the Secretary of State, the federal constitutional question regarding the conflict between the 1890 Constitution and the preexisting Columbus leases is preceded by a state law question concerning the authority of the school trustees to enter into renewable-forever leases before 1890. If the trustees lacked such authority, contends the Secretary of State, the federal constitutional question would be mooted, thereby justifying Pullman abstention.
We disagree, for we find that the statutory scheme involved here is not so ambiguous as to require
Pullman
abstention.
See City of Houston,
The
Street
opinion made no mention of the two statutes cited by the Secretary of State, in all likelihood because no party thought them relevant to the Columbus leases. Indeed, no Mississippi authority has ever suggested that the two statutes affect the renewable-forever nature of the Columbus leases.
Cf. City of Houston,
Although the Street opinion alone removes most doubt about the validity of the perpetual terms in the Columbus- leases, we are confident that even if the Street Court had confronted the Secretary of State’s two statutes, it would have found them inapplicable to Columbus. By their terms, the December 16, 1830 and February 27, 1833 statutes did not dissipate any pre-existing leases nor were they self-executing. Rather; the two statutes provided that the trustees of school districts in Lowndes county were to lease sixteenth section lands for ninety-nine year terms only when the majority of households in a community requested them to do so. There is no evidence to suggest that the *246 households in Columbus ever voluntarily invoked those statutes. Indeed, it would have been absurd for them to have done so. Both the December 16, 1830 and February 27, 1833 statutes mandated a minimum lot size of eighty acres. The eighty-acre minimum indicates that the legislature was contemplating rural lots. By 1830, however, the Columbus sixteenth section was urban. In accordance with its urban nature, the December 13,1830 statute that specifically empowered the Columbus school trustees to authorize renewable-forever leases permitted lots of no more than ten acres each. The Mississippi legislature in enacting the general December 16, 1830 statute could not possibly have intended to repeal its more specific December 13,1830 law, passed just three days earlier. If the December 16, 1830 statute was a mandatory, overriding provision, it would have allowed only eight lots on the 640-aere Columbus sixteenth section, thereby depopulating the city of Columbus. The Secretary of State perhaps should be commended for his creativity, if not his nineteenth-century legal research, but the two statutes he has located have failed to create a substantial ambiguity in state law.
Finally, the Secretary of State contends that the December 13, 1830 statute authorizing renewable forever Columbus leases 1) was invalid under the 1817 Mississippi Constitution, which prohibited the “sale” of sixteenth section land, and 2) violated the trust under which Mississippi held the land. While a renewable-forever lease may in practical effect resemble a “sale,” the United States Supreme Court has acknowledged that in legal effect such instruments are leases.
See Bosley v. Wyatt,
Even assuming, for the sake of argument, that some uncertainty exists in these uneonstrued nineteenth century statutes, the presence of a minute degree of ambiguity does not in and of itself demand
Pullman
abstention.
Cf. Baggett v. Bullitt,
The district court’s stated reasons for abstention were erroneous. Moreover, despite the Secretary of State’s suggestions, the legality of the Columbus leases under pre-1890 law is not so ambiguous as to require deference to a state court pursuant to Pullman. Even assuming that some minor degree of state-law ambiguity exists with respect to the leases, other factors in this ease argue in favor of the exercise of federal jurisdiction.
hi.
The Secretary of State has advanced a variety of other arguments against our granting of relief to the class. He notes that the price terms of Lipscomb’s own leases have changed throughout the years, perhaps suggesting that Lipscomb’s leases were not renewals but were in fact new leases. The Secretary of State also argues that tax sales appear in the chain of title of a number of the Columbus leases, thereby terminating those leasehold interests. Neither of these contentions, however, identifies an ambiguity in state law sufficient to justify abstention. Rather, the Secretary of State suggests complications that the district court will have to surmount in ruling on the merits of this case and/or fashioning class relief. 7
We conclude that the district- court abused its discretion in declining to exercise its proper jurisdiction. This litigation does not implicate any issue of state law that is so ambiguous as to justify abstention. Similarly, certification to the Mississippi Supreme Court would be inappropriate here: “[Absent genuinely unsettled matters of state law, we are reluctant to certify.”
Jefferson v. Lead Indus. Ass’n, Inc.,
REVERSED AND REMANDED.
Notes
. Previous Mississippi cases had questioned the validity of sixteenth section leases under the 1890 Constitution, but none went as far as
Hill
in striking down those instruments.
See, e.g., Keys v. Carter,
. Lipscomb holds two Columbus leases, the first originally granted in 1839 and the second in 1843. The rentals for his leases are $.ll/year and $.93/year.
. Apparently, lessees in Columbus petitioned the Mississippi legislature in 1913 to pass the statute in order to remove a cloud over their title created by the 1890 Constitution. The Columbus City Attorney, E.T. Sykes, wrote a brief to the legislature requesting the enactment of the statute. The brief strongly stated that the 1890 Constitution could not impair the vested rights of the lessees to renew their leases forever, but it requested the legislation anyway "as a matter of security” to silence various "Doubting Thom-ases" who had questioned the leases.
. The district court also relied on our opinion in
Frazier v. Lowndes County, Miss. Bd. of Educ.,
. The December 16 statute reads, in pertinent part:
Sec. 1. Be it enacted by the Senate and House of Representatives of the state of Mississippi, in General Assembly convened, That hereafter whenever a majority of the heads of families in any township in the counties of Madison, Jefferson, Claiborne, Monroe, and Lowndes, shall deem it expedient, and shall in writing, direct the trustees for schools in said township to lease for the term of ninety-nine years, the sixteenth section, or other lands reserved in lieu thereof, it shall be their duty to do so on their giving thirty days notice in the nearest newspaper and at three of the most public places in said county of the time and place of leasing the same.
Sec. 3. And be it further enacted, That said land shall be offered for lease in lots of not more than a quarter of a section, not less than an eighth of a section....
Sec. 6. And be it further enacted, That all acts and parts of acts coming with the meaning and purview of this act be, and the same are hereby repealed.
Act of December 16, 1830, 1830 Miss. Laws 14th Sess. Ch. II, pp. 330-31.
. The 1833 statute reads, in pertinent part:
Section 1. Beit enacted by the Legislature of the state of Mississippi, That whenever a majority of the resident heads of families, (minors excepted,) in each township, or fractional township, containing section No. 16. or such section as may be reserved for the use of *245 schools in lieu thereof, within this state, shall request the same, it shall be the duty of the trustees now in office, or who may hereafter be in office, to lease the said section of their respective townships to the highest bidder, for the term of ninety-nine years, ... Provided, that said trustees may divide and lease such section in lots of not less than eighty acres, if they should deem the same most advanta-geous____
Sec. 8. And be it further enacted, That this act shall not be construed as to affect any prior disposition, which may have been made of any of the sections of any township within this state; and that all acts and parts of acts contravening the provisions of this act be and the same are hereby repealed.
Act of February 27, 1833, 1833 Miss. Laws pp. 452-54.
. Lipscomb points us to certain exceptional cases in which our court has addressed the merits of a claim after finding that the district court below erred in abstaining.
See, e.g., Snap-on Tools Corp. v. Mason,
