On September 28, 1972, plaintiff-appellant (“appellant”) filed in federal district court a complaint alleging that defendant-appellee city (“City”), through certain urban renewal activities from 1966 to 1971, had “taken” its leasehold interest. Because appellant’s lessor (“lessor”) refused to join as co-plaintiff, appellant joined lessor as co-defendant. On June 1, 1973, City filed its declaration of taking in Muskegon County circuit court. On June 13, 1973, appellant filed in federal district court an amended and supplemental complaint realleging the “taking” to have been without just compensation and alleging that City delayed in filing its state court condemnation proceedings in order to obtain a lower appraisal of appellant’s interest. 1 On September 28, 1973, the district judge dismissed appellant’s original complaint because allegations of lost profits and depreciated property value stemming from surrounding urban renewal failed to state a “taking” in the constitutional sense. On November 7, 1973, appellant, City, and lessor stipulated that title to the realty would vest in City, that City would pay into federal district court its estimate of just compensation, and that City would dismiss without prejudice its declaration of taking in state court. The parties reserved the right to prove the date of “taking” for valuation purposes.
On February 26, 1974, the district judge refused to accept the parties’ stipulation, characterizing it as “transfer[ring) the entire litigation, except so much as has been agreed to, from the Muskegon Circuit Court to this court for final disposition and . . . stipu-lat[ing] that this court has jurisdiction without an admission of same or a specific finding thereof by this court.” The judge found that federal-state comity dictates that parties cannot, by stipulation, remove state court proceedings to federal court; moreover, he found that he was unable to say that the state courts would fail to afford appellant its constitutional rights.
Appellant appeals the district court’s sua sponte dismissal of its amended and supplemental complaint. We hold that the district court had power to abstain from exercising jurisdiction, but should have retained jurisdiction pending state court proceedings.
Of course, parties cannot stipulate the subject matter jurisdiction of federal courts. Arenas v. United States,
*201
Even so, the district court could abstain from exercising such jurisdiction. Even if City’s entering into the stipulation is deemed as waiving City’s motion to dismiss for abstention reasons, the district court still properly raised the abstention issue because the propriety of a district court’s raising abstention
sua sponte
is well-settled. Louisiana Power & Light Co. v. City of Thibodaux,
Recently, this court
3
and the Supreme Court
4
have focused on “the oft-mentioned, but seldom fully understood, issue of abstention.”
5
Though abstention, being an equitable doctrine, often turns on case-by-case facts,
6
courts generally have recognized the purposes of abstention as including the avoidance of premature and unnecessary decisions of federal constitutional law
7
and of “any [unnecessary] possible irritant[s] in the federal-state relationship.” Reetz v. Boza-nich,
The Supreme Court several times has dealt with abstention in eminent domain
8
contexts. Martin v. Creasy,
“The circumstances which should impel a federal court to abstain from blocking the exercise by state officials of their appropriate functions are present here in a marked degree. Reflected among the concerns which have traditionally counseled a federal court to stay its hand are the desirability of avoiding unseemly conflict between two sover-eignties, the unnecessary impairment of state functions, and the premature determination of constitutional questions. All those factors are present here.”360 U.S. at 224 ,79 S.Ct. at 1037 [citations omitted].
Perhaps with a view toward federal judicial economy, the Court found an “additional reason” for abstention in the statute’s varying impact on different landowners.
“Some [landowners] may be completely deprived of access; others may have access to existing roads or service roads to be constructed; still others may have access to the highway itself through points of ingress and egress established under the statute. In the state court proceedings the case of each landowner will be considered separately, with whatever particular problems each case may present.”360 U.S. at 224-225 ,79 S.Ct. at 1037 .
In several reported opinions,
11
courts have abstained from exercising their federal question jurisdiction in eminent domain contexts. In Creel v. City of Atlanta,
Some federal courts, of course, have exercised their jurisdiction in eminent domain contexts.
12
Ballard Fish & Oyster Co. v. Glaser Const. Co.,
Town of East Haven v. Eastern Airlines, Inc.,
“the circumstances which would merit abstention are not present in the instant action. The constitutional question is not a novel one, . . . and the activities from which the plaintiffs seek relief have already occurred. Furthermore, a state statute is not under attack and the state courts have not, as they had in Martin, signified in
a related action that relief [would] be granted.”
We decline to follow
East Haven
for several reasons. First,
East Haven
also involved independent federally- and diversity-based claims against certain airlines, cf. footnote 1,
supra,
as to which the district court had no right to abstain. Consequently, the district court, in exercising the equitable doctrine of abstention, could properly consider that abstaining as to the city would fail to foster judicial economy. Second, we feel that the district court relied too heavily on
Mosher,
which predates Pullman
14
and
Martin.
Though neither
Pullman
nor
Martin
explicitly overruled
Mosher, Martin,
of course, favors a federal court “stay[ing] its hand” in order to avoid unnecessarily deciding federal constitutional issues and unnecessarily irritating federal-state relationships. The Supreme Court, particularly in the 1970s, has favored such policies.
15
Moreover,
Mosher
itself exclusively dealt with federal jurisdiction rather than abstention.
16
Third, the fact that the
East Haven
activities, like the instant ones, had already occurred, we feel, arguably favors federal abstention because a delay in exercising federal jurisdiction is less likely to irreparably harm the party asserting federal jurisdiction; the harm, where the underlying actions have occurred, has already been done. See Martin v. Creasy,
Pullman 19 abstention applies only where the party invoking federal court jurisdiction has state and federal claims so that
“[i]f the statute is struck down under [state law], resolution of the federal constitutional issue would, of course, be avoided. . . . [A] federal court should abstain from deciding the constitutionality of a state statute if that statute is attacked on alternative state law grounds and decision of the state law question might obviate the need for decision of the federal question.” Hill v. Brinegar,371 F.Supp. 1166 , 1170 (D.Del.1974) (citing Askew v. Hargrave,401 U.S. 476 ,91 S.Ct. 856 ,28 L.Ed.2d 196 (1971), and Reetz v. Bozanich,397 U.S. 82 ,90 S.Ct. 788 ,25 L.Ed.2d 68 (1970)).
Appellant’s amended and supplemental complaint, however, claims only that City has “taken” its leasehold in violation of the federal constitution. The failure to explicitly claim that the “taking” violated state statutory and constitutional law, however, is immaterial because, as the Second Circuit has recognized,
“[i]t is no answer to the contention that the district court should have abstained, that appellants did not raise their state claims in their complaint. Appellants cannot be allowed to frustrate the policies underlying the doctrine of abstention by this simple expedient.” Reid v. Board of Educ.,453 F.2d 238 , 242 n. 7 (2d Cir. 1971).
Moreover, appellant’s brief demonstrates that it has state claims.
“The Constitution and laws of the State of Michigan have always provided that private property may not be taken for public use without due process of law and compensation. A crucial question involved in the implementation of such provisions has been, when is property actually ‘taken’? The Michigan Supreme Court has been committed to a liberal interpretation of ‘taking.’ ” Appellant’s Brief at 11.
Indeed, the authority appellant cites for the proposition that City’s urban renewal activities amounted to an unconstitutional “taking” belies its claim in its complaint that it was asserting a claim that such activities violated the federal constitution. Of eight cases cited, six were Michigan state court cases.
Traditionally, the party asserting abstention has had to tread a narrow path by demonstrating that resort to state proceedings would be meaningful, Foster v. City of Detroit,
Neither the
Foster
series
21
nor Cheatham v. Carter County,
“Michigan had not by statute or clear decisional announcement provided a remedy whereby to compensate property owners for damages consequent upon the long pendency of an ultimately-discontinued condemnation proceeding.”405 F.2d at 141 .
One federal district court has recognized “the unmistakeable implication [that Foster] might have been dismissed under the doctrine of abstention had Michigan provided appropriate remedies in 1960 when the action was commenced.” Jim Young Development Corp. v. State Highway Comm’n,
Though federal court congestion alone, of course, is insufficient to require abstention, Weiss v. Doyle,
Though the district court’s dismissal without prejudice arguably would not harm appellant, Hill v. Victoria County Drainage District No. 3,
Accordingly, we vacate the judgment of the district court and remand the case for proceedings consistent with this opinion.
So ordered.
Notes
. The amended and supplemental complaint, as a pendent claim, alleged that the “taking” terminated appellant’s obligation to pay rent to. lessor. Appellant and lessor both being Michigan corporations, there was no independent diversity jurisdiction over that claim. 28 U.S.C. § 1332(c) (1970).
. Neither Sayre v. City of Cleveland,
. Palmer v. Columbia Gas of Ohio, Inc.,
. Prounier v. Martinez,
. Pennsylvania Ass’n for Retarded Children v. Commonwealth,
. Abstention has been characterized as a matter of discretion. Zwickler v. Koota,
. The policy of avoiding unnecessarily deciding federal constitutional issues, in fact, predates the Pullman abstention doctrine formulated in Railroad Comm’n v. Pullman Co.,
. Eminent domain, for purposes of this opinion, includes allegations of unconstitutional “takings,” or inverse condemnation.
. Kaiser Steel Corp. v. W. S. Ranch Co.,
. Creasy v. Lawler,
. Unfortunately, none are factually on-point with the instant claim. Hill v. Victoria County Drainage District No. 3,
. See cases cited in County of Allegheny v. Frank Mashuda Co.,
. Generally, there is no need to exhaust state judicial remedies. C. Wright, Law of Federal Courts 187 (1970).
. The Supreme Court, if not commentators, has characterized Railroad Comm’n v. Pullman Co.,
. See footnote 4, supra.
.
East Haven,
in fact, was the first time
Mosher
has been cited in reference to abstention. Generally,
Mosher
has been cited for the proposition that well-pleaded allegations, rather than later evidence, determine the existence of federal jurisdiction. E. g., Levering & Garringues Co. v. Morrin,
. City adopted an urban renewal ordinance on October 8, 1968.
. The record fails to show what enabling statute underlay City’s urban renewal activities. The enabling statute could have been the blighted area rehabilitation act, Mich. Comp.Laws Ann. § 125.71 et seq. (1967); Mich.Stat.Ann. § 5.3501 et seq. (1969).
. Railroad Comm’n v. Pullman Co.,
. Of course, the adequacy in itself of state proceedings is insufficient to require district court abstention. Lake Carriers’ Ass’n v. MacMullan,
. Foster v. Herley,
. One federal appellate judge has implied that the existence of federal constitutional issues in “almost every state criminal prosecution” contributed to the doctrine of Younger v. Harris,
