Russel K. WILLIAMS, et ux., Petitioners-Appellees, v. IMMIGRATION AND NATURALIZATION SERVICE, Respondent-Appellant.
No. 84-4186
United States Court of Appeals, Ninth Circuit
July 24, 1986
795 F.2d 738
Argued and Submitted June 3, 1986.
This method of analyzing ambiguous Code provisions applies with equal force here. While the record does not indicate whether the right of redemption belonged to the Rigdens individually or RN & S Development Corp., the issue is a critical one unless the standard of care to which bankruptcy trustees are held is the same in the context of both individual and corporate debtors.6 Bankruptcy trustees have been held uniformly to that measure of care and diligence that an ordinary prudent person would exercise under similar circumstances. While this standard is most certainly appropriate in the context of an individual debtor where the trustee is in a position similar to an owner of the debtor‘s assets charged with the duty of distributing them under the Code according to the nonbankruptcy entitlements of each investor, see Comment, Waiver of the Attorney-Client Privilege by the Trustee in Bankruptcy, 51 U.Chi.L.Rev. 1230, 1258-59 (1984), in the context of a corporate debtor such a standard is wholly inappropriate.
The Code contains no provision delineating the duty to which trustees are to be held. My quarrel with majority opinion is simply that it did not undertake the inquiry that Weintraub requires, namely analogizing to nonbankruptcy law when the Code is ambiguous or silent, in the absence of a “bankruptcy reason” for doing otherwise. Using the Weintraub analysis and analogizing to nonbankruptcy law, I conclude that the same standard of care should be imposed upon bankruptcy trustee as that imposed upon nonbankruptcy management because of the similarities shared by bankruptcy corporate management and bankruptcy trustees for corporate debtors. Under this approach, the trustee‘s decisions for corporate debtors concerning estate assets should be reviewed under the deferential business judgment rule.
Consequently, I would remand for a determination of whether the right of redemption was owned by the corporate debtor or instead by the Rigdens individually. If owned by the corporate debtor, the trial court should dismiss the action against Aldrich if his failure to redeem was a valid exercise of business judgment.
Robert J. Crotty, Spokane, Wash., for petitioners-appellees.
SNEED, Circuit Judge:
The Immigration and Naturalization Service (INS) appeals from the district court‘s grant of a writ of habeas corpus reinstating the privilege of voluntary departure for the Williams‘s. We reverse.
I.
FACTS
On September 19, 1974, Mr. and Mrs. Williams (hereafter referred to in the singular) entered the United States from Canada with a nonimmigrant visa. On April 14, 1981, because Williams had not complied with the terms of his visa, he conceded deportability before an immigration judge in Deportation Proceedings. He was granted three months voluntary departure. On December 2, 1981, the Board of Immigration Appeals (BIA) affirmed. On February 26, 1982, the period for voluntary departure expired, but Williams did not leave the country. On April 22, 1982, Williams secured a five-day temporary restraining order from a federal district judge in the Eastern District of Washington, preventing the INS from arresting him, and enabling him to file a petition for review with the Ninth Circuit and thus to avoid deportation. On April 27, 1982, Williams filed a petition for review by the Ninth Circuit of the BIA‘s affirmance of the Deportation Proceedings.
On October 7, 1982, Williams filed with the BIA a motion to reopen for suspension of deportation (Motion to Reopen # 1). The BIA denied that motion on December 17, 1982, and Williams appealed to the Ninth Circuit on February 16, 1983. On February 28, 1984, the Ninth Circuit affirmed, 730 F.2d 769, by memorandum disposition, the BIA‘s decisions on the Deportation Proceedings and on Motion to Reopen # 1.
Meanwhile, in October of 1982, Williams had applied to the Department of Labor for a labor certification. The Department of Labor issued such a certification on April 12, 1984, with a priority date of October 5, 1982. The May 1984 State Department bulletin established that Williams’ priority date qualified him for the immediate issuance of an immigrant visa. At this point, Williams resembled Tantalus. To receive the immigrant visa he was required to leave the country and return to Canada, his country of origin; but his leaving the country under the recently affirmed order of deportation would have destroyed his right to obtain the immigrant visa, because such visas cannot be issued to persons who have been deported within the preceding five years.
Anticipating this frustrating development, on April 2, 1984, Williams filed a second motion to reopen his deportation proceedings to obtain reinstatement of the privilege of voluntary departure (Motion to Reopen # 2). This reinstatement would have extricated Williams. If he received voluntary departure, he could leave this country, receive his immigrant visa in Canada, and return directly to this country. But this avenue of escape was threatened by closure. On May 2, 1984, on the basis of the Ninth Circuit‘s affirmance of the BIA‘s decisions on the Deportation Proceedings and Motion to Reopen # 1, the INS issued a notice to report for deportation on May 10. On May 7, the District Director stayed these notices until June 21 so as to allow Williams’ children to complete the school year. And on May 24, the BIA further clogged Williams’ escape route by denying Motion to Reopen # 2. The BIA based its denial on defects in the petition, as well as on its own underlying discretion. At this point, Williams appeared trapped. He had no pending challenge to the notice to report for deportation on June 21, 1984. The INS, as if to lower the fruit for which Tantalus yearned, on June 13 approved the immigrant visa. Being scheduled for deportation shortly, Williams knew
One more route was possibly open. On June 19, Williams filed a petition for a writ of habeas corpus in the federal district court for the Eastern District of Washington. It worked. Williams broke free. That court granted the writ, reversing the BIA‘s denial of Motion to Reopen # 2 and giving Williams the privilege of voluntary departure. Williams and his family returned to Canada, received the immigrant visa, and are now residing in this county as permanent resident aliens. Frustration now besets the INS. It can only appeal to us and does so with some spirit. The appeal, as the INS stoutly insists, raises some difficult jurisdictional issues that we must address before any consideration of the merits.
II.
MOOTNESS
Although Williams did not raise the argument in his brief and the INS rejects it, we must consider initially whether this case has become moot. See Canez v. Guerrero, 707 F.2d 443, 446 (9th Cir.1983). Because Williams has reentered this country as a permanent resident alien, it is not clear that the INS will have any remedy against him even if we should reverse the writ of habeas corpus entered by the district court. Because Williams did not contend that the case is moot, the government‘s brief does not detail the steps the government intends to take against Williams if it prevails on this appeal. At oral argument, however, the government firmly indicated its intention to attempt to deport Williams while he, belatedly, asserted mootness.
In deciding this question, we start with the basic question “whether decision of a once living dispute continues to be justified by a sufficient prospect that the decision will have an impact on the parties.” 13A C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure § 3533, at 212 (2d ed. 1984). We are also mindful that the “burden of demonstrating mootness is a heavy one.” County of Los Angeles v. Davis, 440 U.S. 625, 631, 99 S.Ct. 1379, 1383, 59 L.Ed.2d 642 (1979) (quoting United States v. W.T. Grant Co., 345 U.S. 629, 633, 73 S.Ct. 894, 897, 97 L.Ed. 1303 (1953)).
For several reasons, we do not accept Williams’ assertion of mootness made at oral argument. First of all, the government‘s continuing desire to deport Williams makes this controversy real for both parties. An order affirming the district court‘s order of habeas corpus would put an end to the government‘s efforts; an order reversing the writ would open the way for further government action. We need not know what that action might be,1 nor need we evaluate the likelihood that the government will succeed in deporting Williams to recognize that he still has a stake in this appeal.2
Our conclusion is bolstered, although not controlled, by our statements that a continuing dispute as to jurisdiction is sufficient to prevent a finding of mootness. See Brown v. Board of Bar Examiners, 623 F.2d 605, 608-09 (9th Cir.1980); United States ex rel. Cobell v. Cobell, 503 F.2d 790, 794 (9th Cir.1974) (noting that “there is a public interest in having the issue now before the court resolved” because “it also directly involves the vital jurisdictional harmony of two sovereign entities“), cert. denied, 421 U.S. 999, 95 S.Ct. 2396, 44 L.Ed.2d 666 (1975); cf. United States v. Trans-Missouri Freight Association, 166 U.S. 290, 309-10, 17 S.Ct. 540, 546-47, 41 L.Ed. 1007 (1897) (relying on the government‘s interest in determining the legality of an agreement though the defendants voluntarily dissolved the association).
For these reasons, we do not believe the case is moot. Accordingly, we proceed to discuss the district court‘s jurisdiction.
III.
JURISDICTION
The jurisdictional provisions of the Immigration and Nationality Act are not models of clarity. Resolution of the question presented by this case requires examination of two separate questions: first, the reach of the circuit court‘s exclusive jurisdiction under section 106(a) of the Immigration and Nationality Act,
A. Exclusive Jurisdiction Under Section 106(a)
In 1961, Congress amended the Immigration and Nationality Act to provide for exclusive judicial review in the courts of appeals of “all final orders of deportation ... made ... pursuant to administrative proceedings under section 242(b) of this Act.” Act of Sept. 26, 1961, Pub.L. No. 87-301, § 5(a), 75 Stat. 650, 651 (codified at
The order in this case—the denial of a motion to reopen to reinstate voluntary departure—is not, strictly speaking, a final order of deportation. The Supreme Court‘s interpretation of section 106(a) makes clear, however, that this order comes within the reach of the section 106(a) grant of exclusive jurisdiction. In Foti, the Court held that section 106(a) extended to denials of discretionary relief occurring during section 242(b) proceedings. Foti left open, however, the status of motions to reopen, which are decided by the BIA. That issue was apparently resolved the following term in Giova v. Rosenberg, 379 U.S. 18, 85 S.Ct. 156, 13 L.Ed.2d 90 (1964) (per curiam). Giova, a one-sentence disposition, reversed a Ninth Circuit decision that had refused to entertain an appeal from denial of a motion to reopen. See Giova v. Rosenberg, 308 F.2d 347 (9th Cir.1962) (per curiam). The Supreme Court‘s third statement on the reach of section 106(a) jurisdiction was Cheng Fan Kwok v. INS, 392 U.S. 206, 88 S.Ct. 1970, 20 L.Ed.2d 1037 (1968). In that case, the Court held that section 106(a) did not apply to a denial of a stay of deportation by an INS district director. Its precise holding is as follows:
We hold that the judicial review provisions of § 106(a) embrace only those determinations made during a proceeding conducted under § 242(b), including those determinations made incident to a motion to reopen such proceedings.
392 U.S. at 216, 88 S.Ct. at 1976.
The problem, then, is to determine whether the challenge in this case is gov-
Cheng Fan Kwok supports the INS’ argument in a number of places. First, its characterization of the Giova decision turned not on the consistency of the relief sought with eventual departure from the country. Rather it only noted that Giova involved a motion to reopen the deportation proceeding. See 392 U.S. at 211, 88 S.Ct. at 1974 (“[U]nlike the order in Giova, the order here did not deny a motion to reopen such a proceeding.“). Later in the opinion, the Court elaborated on the rationale for including motions to reopen deportation orders with the deportation orders themselves: “Petitions to reopen, like motions for rehearing or reconsideration, are, as the Immigration Service urged in Foti, ‘intimately and immediately associated’ with the final orders they seek to challenge.” Id. at 217, 88 S.Ct. 1976 (quoting INS Brief in Foti); see Ghorbani v. INS, 686 F.2d 784, 788-89 (9th Cir.1982). That is the essence of the Cheng Fan Kwok holding set out above.
Moreover, Williams’ argument that Motion to Reopen # 2 is consistent with the deportation order can be valid only in a very formal sense. In truth he sought to defeat the deportation order. Only by doing so could he remain indefinitely in this country. Williams’ object, voluntary departure, was to be the means to that end. We conclude that Williams’ motion would have fallen within our “exclusive” jurisdiction under section 106(a) were it not for his invocation of habeas jurisdiction. Whether that alters matters is the issue to which we now turn.
B. Habeas Jurisdiction Under Section 106(a)(9)
In the same statute that provided for “exclusive” review in the courts of appeals, Congress provided that “any alien held in custody pursuant to an order of deportation may obtain judicial review thereof by habeas corpus proceedings.” Act of Sept. 26, 1961, Pub.L. No. 87-301, § 5(a), 75 Stat. 650, 651-52 (codified at Immigration and Nationality Act § 106(a)(9),
One line of authority is best expressed in Daneshvar v. Chauvin, 644 F.2d 1248 (8th Cir.1981), in which it was decided that section 106(a)(9) granted district courts habeas corpus jurisdiction only “to review ... the denial of discretionary relief where deportability itself is not an issue.” Id. at 1251. Accordingly, the Eighth Circuit affirmed the district court‘s refusal to review a final deportation order. For other cases applying this approach, see Stevic v. Sava, 678 F.2d 401, 404 n. 5 (2d Cir.1982), rev‘d on other grounds, INS v. Stevic, 467 U.S. 407, 104 S.Ct. 2489, 81 L.Ed.2d 321 (1984); Kuei Liu v. INS, 483 F.Supp. 107, 109 (S.D.Tex.1980); United States ex rel. Parco v. Morris, 426 F.Supp. 976, 978 n. 4 (E.D.Pa.1977).
As neat as this approach is, it encounters problems nonetheless. For example, it
The most thorough examination of the scope of section 106(a)(9) jurisdiction appears in Judge Gee‘s opinion in United States ex rel. Marcello v. District Director, 634 F.2d 964 (5th Cir.), cert. denied, 452 U.S. 917, 101 S.Ct. 3052, 69 L.Ed.2d 421 (1981). Judge Gee recognized that the intent of Congress was to limit district court jurisdiction but pointed out that Congress, influenced by the provision for the writ of habeas corpus in Article I, § 9 of the federal Constitution, preserved that remedy.3 Judge Gee pointed out that in 1961 this was undoubtedly perceived as a narrow exception. The Supreme Court subsequently expanded the meaning of “in custody,” see Hensley v. Municipal Court, 411 U.S. 345, 348-49, 93 S.Ct. 1571, 1573-74, 36 L.Ed.2d 294 (1973) (holding that a person released on his own recognizance was “in custody“); Jones v. Cunningham, 371 U.S. 236, 243, 83 S.Ct. 373, 377, 9 L.Ed.2d 285 (1963) (holding that a paroled convict was “in custody“), and thereby, he argued, made the habeas jurisdiction applicable to virtually all the cases covered by section 106(a)‘s purportedly exclusive jurisdiction. Under this view, the section 106(a)(9) exception was narrow when passed, but has grown with the Supreme Court‘s expansion of habeas jurisdiction during the intervening decades.
Twice in this circuit we have found district court jurisdiction proper under section 106(a)(9). In each instance, however, the explanation of the holding has not been full and extensive. See Flores v. INS, 524 F.2d 627, 629 (9th Cir.1975) (per curiam); Sotelo Mondragon v. Ilchert, 653
In Mondragon, however, this court affirmed a district court‘s acceptance of jurisdiction, under section 106(a)(9), of an appeal from a final order of deportation. This result can be reconciled only with the Marcello viewpoint—that habeas jurisdiction exists whenever the petitioner is in custody, regardless of the reach of section 106(a)‘s exclusive jurisdiction. Although the INS argues that Mondragon is clearly wrong, we are bound by its authority. Accordingly, we accept the Marcello reasoning and affirm the district court‘s decision that it had jurisdiction over this petition for a writ of habeas corpus.4 We do this without the conviction that attends a holding deemed unquestionably correct. The Daneshvar v. Chauvin result has much to commend it. It is for others, however, to set us on that particular course.
IV.
THE MERITS OF THE HABEAS PETITION
We review the district court‘s grant of the habeas petition de novo. Roth v. United States Parole Commission, 724 F.2d 836, 839 (9th Cir.1984). Judicial review of a BIA‘s denial of a motion to reopen is limited to the abuse of discretion standard. E.g., Kaveh-Haghigy v. INS, 783 F.2d 1321, 1322 (9th Cir.1986) (per curiam). Denial was clearly appropriate if Williams did not establish a prima facie case for the underlying relief. E.g., id.; see
The district court‘s reversal was premised on the BIA‘s failure to address the prerequisites for voluntary departure in
More importantly, the BIA based its denial of relief on the exercise of its underlying discretion.5 We recognize that the performance of the INS in this case, viewed in its entirety, has a Kafkaesque quality. We are aware also that the actions of Williams do not reflect obedience to the law. For us to overlook this disobedience would require an invocation of discretion that rightfully belongs only to the BIA. To refuse to overlook this disobedience cannot be branded as an abuse of discretion by the BIA.
REVERSED.
SCHROEDER, Circuit Judge, dissenting.
I respectfully dissent because this case should be dismissed as moot.
The government appeals from a district court order which gave the petitioner the privilege of voluntarily departing the United States, rather than being deported. The government did not seek to stay that order, although there is no reason why it could not have done so.
The consequence of failing to obtain a stay “is that the prevailing party may treat the judgment of the district court as final, notwithstanding that an appeal is pending.” 9 J. Moore, Moore‘s Federal Practice ¶ 208.03 at 8-9 (2d ed. 1985). If irreversible action is taken pending the appeal the appeal will be dismissed as moot. Id. at 8-10.
Acting in reliance on that order and on the absence of a stay, Mr. Williams exercised his privilege of voluntary departure and left the country. He did not leave under an order of deportation. At that time, his Labor Certification permitted him to receive an immigrant visa immediately. He was not ineligible to receive the visa under
The test for mootness is whether events have occurred “which prevent the appellate court from granting any effective relief even if the dispute is decided in favor of the appellant.” Holloway v. United States, 789 F.2d 1372 (9th Cir.1986), quoting Matter of Combined Metals Reduction Co., 557 F.2d 179, 187 (9th Cir.1977); see also Dan Caputo Co. v. Russian River County Sanitation District, 749 F.2d 571, 574 (9th Cir.1984) (action to enjoin construction project moot where court could grant no effective relief due to completion of the work). The test is not a new one, nor did it originate with us. See Mills v. Green, 159 U.S. 651, 653, 16 S.Ct. 132, 133, 40 L.Ed. 293 (1895).
This court can give the government no effective relief, for the deportation order which gave rise to this action in district court is now irrelevant to the petitioner‘s status. The majority opinion cannot reverse the petitioner‘s actual voluntary departure and his subsequent lawful reentry.
The government acknowledges that an appealing party must obtain a stay pending appeal where action taken in reliance on the lower court‘s decree cannot be reversed by the court of appeals. See American Grain Association v. Lee-Vac, Ltd., 630 F.2d 245, 247 (5th Cir.1980); Fink v. Continental Foundry & Machine Co., 240 F.2d 369, 374-75 (7th Cir.1957).
The government fully recognizes its predicament; it offers only two theories in support of its position that it should be allowed to maintain this appeal. The majority rejects both.
The second theory is that the petitioner‘s departure pursuant to the district court‘s order should be regarded as a “self-deportation” under
As long as the district court had jurisdiction over the subject matter of the suit and the parties to it, both parties were bound to obey the order granting voluntary departure regardless of whether the order subsequently is determined to be legally incorrect. “An order issued by a court with jurisdiction over the subject matter and person must be obeyed by the parties until it is reversed by orderly and proper proceedings. This is true without regard even for the constitutionality of the Act under which the order is issued.” United States v. United Mine Workers of America, 330 U.S. 258, 293, 67 S.Ct. 677, 696, 91 L.Ed. 884 (1947).
The majority purports to reverse the order of the district court granting voluntary departure, but it cannot reverse events that occurred while the order was outstanding. Its announcement of its decision on the merits is no more than a hollow incantation. I therefore dissent.
Notes
The section clearly specifies that the right to habeas corpus is preserved to an alien in custody under a deportation order. In that fashion, it excepts habeas corpus from the language which elsewhere declares that the procedure prescribed for judicial review in circuit courts shall be exclusive. The section in no way disturbs the Habeas Corpus Act in respect to the courts which may issue writs of habeas corpus: aliens are not limited to courts of appeals in seeking habeas corpus.H.R.Rep. No. 1086, 87th Cong., 1st Sess. 29, reprinted in 1961 U.S.Code Cong. & Ad.News 2950, 2973. This understanding is obviously inconsistent with the Daneshvar court‘s conclusion that the habeas provision applied only to orders not within section 106(a) exclusive jurisdiction.
Congress attempted to limit the reach of the habeas provision by specifically prohibiting use of a habeas petition to reexamine the results of an earlier judicial proceeding. Act of Sept. 26, 1961, Pub.L. No. 87-301, § 5(a), 75 Stat. 650, 652 (codified at
Finally, as Judge Gee suggested, Congress’ preservation of the Great Writ for the benefit of aliens subject to deportation orders apparently assumed that such relief would be available only while an alien was in the physical custody of the government immediately before deportation. See H.R.Rep. No. 1086, 87th Cong., 1st Sess. 24, reprinted in 1961 U.S.Code Cong. & Ad.News 2950, 2968 (Letter from Byron R. White, Deputy Attorney General, to Hon. Emanuel Celler, Chairman, House Judiciary Comm., Apr. 18, 1961) (referring to habeas as available “only after [the alien] had been taken into custody“); id. at 28, reprinted in 1961 U.S.Code Cong. & Ad.News at 2971 (noting that the section “preserves the writ of habeas corpus to an alien detained in custody pursuant to a deportation order“).
The INS conceded at oral argument that we should apply to the immigration laws the Supreme Court‘s expansion of “custody” in the criminal context. We note that Congress obviously did not contemplate the jurisdictional result reached in this case, but feel that our conclusion is consistent with the statute and prior judicial precedents.