DECISION AND ORDER
INTRODUCTION
This lawsuit -centers around the provision of natural gas to the Western New
Plaintiff National Fuel Gas Distribution Corporation (“NFG” or “Plaintiff’), a natural gas distributor which has been providing natural gas to the site for decades, has brought this lawsuit against NYSERDA, the DOE, the Secretary of Energy, Rick Perry, and West Valley (collectively, “Defendants”), seeking injunctive relief that, in essence, would allow NFG to cease supplying gas to the site and relieve NFG of any responsibility with respect to the site.
Initially Plaintiff filed its claims in New York State Supreme Court, Erie County, on May 5, 2017, at which time Plaintiff also sought .preliminary injunctive relief. See Nat’l Fuel Gas Distribution Co. v. The N.Y. Energy Research & Dev. Auth., et al., 1:17-cv-00447, Dkt. 1 (W.D.N.Y. May 22, 2017). On May 22, 2017, the. DOE removed, that state court litigation to this Court, see id., and then filed a motion to dismiss on various jurisdictional grounds. Id. at Dkt. 6 (May 23,2017). Ultimately, NFG agreed to voluntarily discontinue that lawsuit, see id, at Dkt. 31 (June 19, 2017), and it commenced- the present litigation, asserting constitutional and state law claims, (Dkt. 1). NFG seeks a preliminary injunction allowing it to engage in a controlled shutdown of the natural gas service and cease gas service to the site, and allowing it to essentially abandon the pipeline and related facilities.. (Dkt. 2).
Defendants not only oppose ’Plaintiffs motion for a preliminary injunction, but they have also moved to dismiss the complaint pursuant to Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6). (Dkt. 16; Dkt. 18; Dkt. 21). Alternatively, DOE and the Secretary of Energy move for summary judgment under Federal Rule of Civil Procedure 56. (Dkt. 16).
As expressed by the Court during the oral argument of this matter on August 3, 2017, there appears to be a legitimate basis for Plaintiffs concerns about the integrity of the pipeline infrastructure and the potential future dangers that it poses. In fact, all parties appear to agree that the pipeline should be replaced — but they cannot agree on who should pay for that cost. However, this Court is not the appropriate forum — at least at this time — for a resolution of the parties’ disputes. As a result, for the reasons stated below, the motions to dismiss are granted.
FACTUAL BACKGROUND
The factual allegations in the complaint are as follows: Plaintiff is a gas corporation which owns'property in New York for the transmission and distribution of natural gas. (Dkt. 1 at ¶¶ 1-2). Plaintiff supplies gas through approximately 10,300 feet of pipe to the Western New York Nuclear Service Center at West Valley in Cattaraugus, New York (“the Property”)
In the 54 years since the installation of the pipeline, Plaintiff “has conducted regular leakage surveys and performed repairs and maintenance in the areas of the Property where it could.” (Id. at ¶ 30). In June 2016, Plaintiff found a “Type I leak” in the pipeline on the Property in an area containing radioactive contamination. (Id. at ¶ 31). After Plaintiff refused to repair the pipe due to the radioactivity, “Defendants hired a qualified third-party contractor ... to repair the Type I leak.” (Id. at ¶¶ 33-34). The contractor installed a temporary fix. (Id. at ¶ 34). Plaintiff asserts that there are other leaks in the pipeline “that cannot be accessed for repair.... ” (Id. at ¶ 35).
Plaintiff claims that as the pipeline ages, it could “fail” and “suffer a major breach” that would require an immediate shutdown of gas service. (Id. at ¶ 38). Such a shutdown “could” allow ground water to flow into the pipeline, “and the pipe could act as a conduit for the distribution of radioactive contaminants.” (Id. at ¶ 39). Plaintiff also asserts “[u]pon information and belief’ that a sudden shutdown could drain areas of the property that NYSERDA classifies as “wetlands,” and could prevent Defendants from maintaining proper storage temperatures of the radioactive waste at the facility. (Id. at ¶¶ 40-41). Plaintiff seeks a “controlled and stable cessation of gas. service..which requires Defendants’ cooperation. (Id. at ¶ 42).
Plaintiff brings four causes of action: (1) breach of contract against all Defendants; (2) a takings claim against NYSERDA, DOE, and. the DOE Secretary; (3) a due process claim against NYSERDA, DOE, and the DOE Secretary; and (4) a request for declaratory judgment against all Defendants. (Id. :at ¶¶ 51-87).
DISCUSSION
Defendants raise a series of arguments supporting dismissal of the complaint.' The Court first • addresses whether Plaintiffs constitutional claims are ripe for review.
I. Plaintiffs Constitutional Claims are Not Ripe for Adjudication in this Court
A. Standard of Review
“Failure of subject matter jurisdiction ... is not waivable and may be raised at any time by a party or by the court sita, sponte.” Oscar Gruss & Son, Inc. v. Hollander,
B. Plaintiffs Takings Claim is Not Ripe for Adjudication
Plaintiff contends that its constitutional rights have been violated because its property rights were taken without just compensation. (Dkt. 1 at ¶¶ 60-79). Defendants argue that Plaintiffs takings claim is not ripe for adjudication because Plaintiff has not availed itself of the required prerequisites for bringing a Takings Clause claim in this Court. (Dkt. 16-1 at 20-22; Dkt. 25 at 8-13). The Court agrees with Defendants that Plaintiffs takings claim is not ripe for adjudication.
1. Takings Generally
The Fifth Amendment’s Takings Clause provides that no private property “shall... be taken for public use, without just compensation.” U.S. Const, art. V. “The Fifth Amendment does not proscribe the taking of property; it proscribes taking without just compensation.” Williamson Cty. Reg'l Planning Comm’n v. Hamilton Bank of Johnson City,
The Supreme Court has recognized two types of takings: physical takings and regulatory takings. See Tahoe-Sierra Preservation Council, Inc. v. Tahoe Reg’l Planning Agency,
A regulatory taking, in contrast, occurs when government regulation causes economic injuries so severe that compensation is required. See Penn Cent.,
Whichever form the alleged taking assumes, to succeed in establishing a constitutional violation claimants must demonstrate: (1) that they have a property interest protected by the Fifth Amendment, (2) that they were deprived of that interest by the government for public use, and (3) that they were not afforded just compensation.
Ganci v. N.Y.C. Transit Auth.,
2. Ripeness
Plaintiff elucidates two different takings in its motion for a preliminary injunction. (See Dkt. 2-11). First, Plaintiff claims that NYSERDA, DOE, and Perry have “destroyed [Plaintiff’s] contractual rights [under New York law] to safely access its pipeline and terminate service.” (Id. at 16). Second, Plaintiff asserts that NYSERDA, DOE, and Perry have effectuated a taking by refusing Plaintiff access to the pipeline, thereby “destroy[ing] [Plaintiffs] right to ‘possess, use and dispose of the pipeline .... ” (Id.). Plaintiff has not alleged the existence of any law, rule, or regulation which has effectuated a taking. Therefore, Plaintiffs claims are interpreted as physical taking claims. See Cablevision Sys.,
Compensation for a physical taking need not be paid “in advance of or even contemporaneously with the taking.” Preseault v. Interstate Commerce Comm’n,
“[A] Fifth Amendment claim is premature until it is clear that the Government has both taken property and denied just compensation.” Horne v. Dep’t of Agric.,
Williamson .County first requires that the government reach “a final decision regarding... the property at issue.” Id. at 186,
Under the second prong:
[i]f the government has provided an adequate process for obtaining compensation, and if resort to that process “yield[s] just compensation,” then the property owner.“has no claim against the Government” for a taking. Thus, [the Supreme Court has] held that taking claims against the Federal Government are premature until the property owner has availed itself of the process provided by the Tucker Act, 28 U.S.C. § 1491. Similarly,. if a State provides an adequate procedure for seeking just compensation, the property owner cannot claim a violation of the Just Compensation Clause until it has used the procedure and been denied just compensation.
Williamson Cty.,
Here, the complaint does not explain whether á taking has already occurred or whether Plaintiff merely worries that a taking is imminent. (See Dkt. 1). Indeed, the thrust of Plaintiffs suit seems to ask this Court to force Defendants to complete the taking of Plaintiffs pipeline. Even assuming that Plaintiff could show that a taking has already occurred, thereby satisfying the Williamson County finality requirement, it has not pursued a claim under the Tucker Act against the DOE and Perry, nor a claim under state law against NYSERDA. As such, Plaintiffs takings claims are not ripe under Williamson County.
Plaintiff asserts that because it seeks only equitable relief, (see Dkt. 1 at ¶74), Williamson County’s ripeness requirement does not apply. (Dkt. 34 at 12-14). However, “[e]quitable relief is not available to enjoin an alleged taking, of private property for a public use, duly authorized by law when a suit for compensation can be brought against the sovereign subsequent to the taking.” Ruckelshaus v. Monsanto Co.,
Plaintiff argues that “a suit for compensation would not be available in this case to adequately resolve the parties’ dispute.” (Dkt. 34 at 13). Plaintiff complains of the loss of its property rights over the pipeline, the loss of its contractual rights, and potential liability. (See Dkt. 1 at ¶¶ 39-40). The claim for liability presumably flows from Plaintiffs assertion that an uncontrolled shutdown of the pipeline would allow for migration of radioactive waste or an unresolvable leak, and the potential dangers posed by the suspect pipeline.
Plaintiff fails' to elucidate how money damages would be inadequate to' compensate it for the loss of the pipeline and any potential liability to third parties. These issues can be remedied by after-the-fact damages assessments against Defendants. This is not a case where “delayed resolution of these issues would foreclose' any relief from the present injury suffered .... ” See Duke Power Co. v. Carolina Envtl. Study Grp., Inc.,
Plaintiff argues that Eastern Enterprises allows for equitable relief. (Dkt. 34 at 12). Plaintiff is incorrect for at least two reasons. First, as Plaintiff recognizes, Eastern Enterprises is a plurality decision. (See id.). “When a fragmentéd Court decides a case and no single rationale explaining the result enjoys the assent of five Justices, ‘the holding of the Court may be viewed as that position'taken by those Members who concurred in the judgments on the narrowest grounds.’” Marks v. United States,
Second, even if its takings analysis was controlling, Eastern Enterprises is inapplicable.
[The] longstanding distinction between acquisitions of property for public usé, on the one hand, and regulations prohibiting private uses, on the other, makes it inappropriate to treat cases involvingphysical takings as controlling precedents for the evaluation of a claim that there has been a ‘regulatory taking,’ and vice versa.
Tahoe Sierra Preservation Council,
Plaintiff also errs in arguing that, pursuant to a footnote in Duke Power, the Declaratory Judgment Act allows for equitable relief in this case. (See Dkt. 34 at 13). The Supreme Court noted that because the plaintiffs in Duke Power were “not seeking compensation for a taking ... but [were] requesting a declaratory judgment,” the dissent’s assertion that there was no jurisdiction under 28 U.S.C. § 1331(a) was incorrect. Duke Power,
This case is distinguishable. Plaintiff does not assert any challenge to federal or state law. Instead, it seeks a declaration that a physical taking has occurred, and an injunction against Defendants. Plaintiff fails to cite any analogous situation in which declaratory relief was permitted, and the Court has found none.
The ripeness requirement is prudential, “not, strictly speaking, jurisdictional.” Horne I,
In Sherman, the plaintiff sought to gain approval from a local zoning board to develop a piece of property. Id. at 558. For nearly a decade, the zoning board changed regulations and erected hurdles in a systemic fashion to prevent the plaintiff from developing the land. Id. at 557. The Second Circuit, finding that the board had prevented the plaintiff from ever receiving a final decision such that his takings claim might be ripe under Williamson County, held that it would be futile for the plaintiff to again seek a final decision. Id. at 563 (“Seeking a final decision would be futile because the Town used — and wilí in all likelihood continue to use — repetitive and unfair procedures, thereby avoiding a final decision.”).
Here, Plaintiff has not alleged nor presented any evidence that it sought any final decision of Defendants as to its contractual or property rights. The parties noted at oral argument that they had attempted to find a workable solution to the problem before any suit was.filed, but that they failed to reach a final agreement. (See Dkt. 41). Plaintiff has not established that Defendants’ actions are “so unreasonable, duplicative, or unjust as to make the conduct farcical,” relieving Plaintiff of its duty to seek a final decision under Williamson County. See Sherman,
Therefore, because Plaintiff’s takings claim is not ripe for purposes of adjudication before this Court, the claim must be dismissed without prejudice. See, e.g., Kurtz,
C. Plaintiffs Procedural Due Process Claim is Not Ripe for Adjudication
Plaintiffs third cause of action raises a procedural due process claim. (Dkt. 1 at ¶¶ 75-79). The due process claim arises from the same circumstances as Plaintiffs takings claim — ie., the alleged taking of Plaintiffs “contractual and general property rights to possess, use and dispose its pipeline.... ” (Id. at ¶ 77). “[T]he Williamson County ripeness requirement (finality and exhaustion) applies to all procedural due process claims arising from the same circumstances as a taking claim.” Kurtz,
II. Plaintiff’s Remaining Causes of Action Must Be Dismissed
Defendants move to dismiss Plaintiffs remaining causes of action pursuant to Rule 12(b)(6). (See Dkt. 16-1 at 14-24; Dkt. 25 at 19-21).
A. Standard of Review
“A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) tests the legal sufficiency of the party’s claim for relief.” Zucco v. Auto Zone, Inc.,
“While a complaint attacked .by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations, a plaintiffs obligation to provide the ‘grounds’ of his ‘entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Id. at 555,
B. Plaintiffs Claims against DOE and Perry Must Be Dismissed
1. Breach of Contract
Plaintiffs first cause of action alleges a breach of contract against all Defendants. (Dkt. 1 at ¶¶ 51-60). Plaintiff asks that the Court “find that the contract: of gas supply service between the parties may be terminated,” hold that' Defendants have breached the contract, and “grant an injunction requiring Defendants to affect a controlled shutdown” of the pipeliné. (Id. at ¶¶ 58-59).
Under New York law,, a breach of contract claim'has four elements: “(1) a contract; (2) performance of the contract by one party; (3) breach by. the other party; and (4) damages.” First Inv’rs Corp. v. Liberty Mut. Ins. Co.,
To recover against the [federal] government for an alleged breach of contract, there must be, in the first place, a binding agreement. To form an agreement binding upon the government, four basic requirements must be met: (1) mutuality of intent to contract; (2) lack of ambiguity in offer and acceptance; (3) consideration; and (4) a government representative having actual authority to bind the United States- in contract,
Anderson v. United States,
Plaintiff argues that West Valley “was acting on behalf of the Federal Defendants, thereby entering the contract on the Federal Defendants’ behalf.”
2. Declaratory Judgment
As to DOE and Perry, all that remains is Plaintiffs declaratory judgment claim. (See Dkt. 1 at ¶¶ 80-87). The Declaratory Judgment Act is only procedural, and does not change any substantive right. Medtronic, Inc. v. Mirowski Family Ventures, LLC, — U.S. -,
III. The Court Declines to Exercise Jurisdiction Over Plaintiffs Remaining Claims
Having dismissed both federal defendants and all federal causes of action, the Court declines to exercise supplemental jurisdiction under 28 U.S.C. § 1367. When a district court has “dismissed all claims over which it had original jurisdiction,” then “the district court may, at its discretion, exercise supplemental jurisdiction over state law claims .... [even though] it cannot exercise supplemental jurisdiction unless there is first a proper basis for original federal jurisdiction.” Nowak v. Ironworkers Local 6 Pension Fund,
[I]n any civil action of which the district courts have original jurisdiction, the district courts shall have supplemental jurisdiction over all other claims that are so related to claims in the action within such originál jurisdiction that they form part of the same case or controversy under Article III of the United States Constitution. Such supplemental jurisdiction shall include claims that involve the joinder or intervention of additional parties.
28 U.S.C. § 1367(a). Under § 1367(c):'
The district courts' may decline to exercise supplémental jurisdiction ' over a claim under subsection (a) if—
(1) the claim raises a novel or complex issue of State law,
(2) the claim substantially predominates over the claim or claims over which the district court has original jurisdiction,
(3) the district court has dismissed all claims over which it has original jurisdiction, or
(4) in exceptional circumstances, there are other compelling reasons for declining jurisdiction.
28 U.S.C. § 1367(c). “[T]he discretion implicit in the word ‘may’ in subdivision (c) of § 1367 permits the district court to weigh and balance several factors.” Purgess v. Sharrock,
the dismissal of the federal claim occurs “late in the action, after there has been substantial expenditure in time, effort, and money in preparing the dependent claims, knocking them down with a belated rejection of supplemental jurisdiction may not be fair. Nor is it by any means necessary.”
Purgess,
Here, the Court has dismissed the federal causes of action and the federal defendants. There is not complete diversity between the remaining parties, as Plaintiff and NYSERDA are citizens of New York.
Judicial economy weighs in favor of dismissing the state law claims. This case is in the very early stages. NYSERDA and West Valley have not yet answered the complaint, and no discovery has occurred. Thus, the parties have not expended substantial time, money, or effort in preparing the state law claims. See Purgess,
No factor weighs in favor of supplemental jurisdiction. Therefore, the Court declines to exercise such jurisdiction over Plaintiffs state law and declaratory judgment claims.
CONCLUSION
For the foregoing reasons, Defendants’ motions to dismiss (Dkt. 16; Dkt. 18; Dkt. 21) are granted.
SO ORDERED.
Notes
. Congress passed the West Valley Demonstration Project' Act in 1980, directing the Secretary of the Department of Energy, to carry out the clean up and disposal activities, See Pub. L. No. 96-368, § 2(a), 94 Stat. 1347 (1980).
. Plaintiff further claims .that monetary relief is unavailable because "the governments intrusion has been continuous and will continue into the future,” (Dkt. 34 at 12). The entire physical takings doctrine presupposes continued government intrusion into private property. The "intrusion” here, if one occurred, can be remedied by monetary damages.
. For this reason, Plaintiff’s attempt to discount Defendants’ arguments "that certain' cases may be distinguishable on the basis that they involve regulatory, rather than physical takings” as not being supported by caselaw, (see Dkt. 34 at 12 n.2), is incorrect.
. Even if Plaintiff is correct that recent Supreme Court cases "demonstrate a clear trend towards allowing equitable relief, even when the prongs of Williamson County are not met,” (see Dkt. 34 at 13-14), Plaintiff cites no analogous case to this one. Each of the cases Plaintiff relies on involves either a regulatory taking or a facial challenge to a law. {See id.).
. The Court did not consider Plaintiffs additional factual allegations referenced in its opposition to the motions to dismiss in deciding this issue. (See Dkt. 34 at 32). Such information is neither integral to nor relied on in the complaint, and, therefore, is not properly before the Court in deciding the Rule 12(b)(6) motion. See Pani v. Empire Blue Cross Blue Shield,
. It is not clear whether West Valley is a citizen of New York. The complaint alleges that West Valley is a Delaware limited liability company (Dkt. 1 at ¶ 6), but its members’ citizenship is not identified. See Carter v. HealthPort Techs., LLC,
