Lead Opinion
These three appeals arise from two cases that concern the passage, implementation, and alleged effects of Amendment 64 to the Colorado Constitution, Colo. Const, art. XVIII, § 16. Amendment 64 repealed many of the State’s criminal and civil proscriptions on “recreational marijuana,”
Two of the appeals were brought in Safe Streets Alliance v. Alternative Holistic Healing, LLC. First, in No. 16-1266, two Colorado landowners challenge the district court’s dismissal of their claims brought under the citizen-suit provision of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1964(c), against certain affiliates of a State- and county-licensed marijuana manufactory that allegedly has injured the landowners’
Second, in No. 16-1048, those landowners and an interest group to which they belong appeal the district court’s dismissal of their purported causes of action “in equity” against Colorado and one of its counties for ostensibly also having injured the landowners’ property by licensing that manufactory. The landowners and the interest group allege that Amendment 64’s regime is preempted by the CSA, pursuant to the Supremacy Clause, U.S. Const, art. VI, cl. 2; and the CSA’s preemption provision, 21 U.S.C. § 903.
The third appeal, No. 16-1095, was filed in Smith v. Hickenlooper. In that case, a group of Colorado, Kansas, and Nebraska sheriffs and county attorneys sued Colorado on similar theories that Amendment 64’s regime is preempted by the CSA. The district court dismissed their claims, and we consolidated the appeal with No. 16-1048. Because those plaintiffs also do not claim injuries to their federal substantive rights, we likewise affirm.
Finally, the States of Nebraska and Oklahoma moved to intervene in Safe Streets Alliance and Smith while they were pending on appeal. Those States claim that Amendment 64 injures their sovereign interests and those of their citizens, and that its enforcement is preempted by the CSA. We granted their motion in No. 16-1048 and heard their arguments, which confirmed that their controversy is with Colorado. Given that fact, we must confront 28 U.S.C. § 1251(a), which forbids us from exercising jurisdiction over controversies between the States. We therefore cannot permit Nebraska and Oklahoma to intervene, or even confirm that they have a justiciable controversy that may be sufficient for intervention. Consequently, we vacate the order granting intervention in Safe Streets Alliance and deny the States’ motions in both cases.
I. Standards of Review
Before addressing each of those issues, we first discuss the applicable standards of review. The district court dismissed the claims before it on the basis of Federal Rules of Civil Procedure 12(b)(1) and (6). Rule 12(b)(1) “allows a court to dismiss a complaint for lack of subject matter jurisdiction. If the district court did so without taking evidence, as the court did here, our review is de novo.” Pueblo of Jemez v. United States,
“Federal courts are courts of limited jurisdiction, possessing only that power authorized by Constitution and statute.” Id at 1151 (quoting Gunn v. Minton,
Further, “[w]e review a Rule 12(b)(6) dismissal de novo.” George v. Urban Settlement Servs.,
“In determining the plausibility of a claim, we look to the elements of the particular cause of action, keeping in mind that the Rule 12(b)(6) standard [does not] require a plaintiff to ‘set forth a prima facie case for each element.’ ” Id. (quoting Khalik v. United Air Lines,
However, “when legal conclusions are involved in the complaint[,] ‘the tenet that’ ” we accept the allegations as true “is inapplicable to [those] conclusions.” Shields,
II. Safe Streets Alliance
In Safe Streets Alliance, the plaintiffs are Michael P. Reilly, Phillis Windy Hope Reilly, and Safe Streets Alliance (“Safe Streets”). Safe Streets is a “nonprofit organization devoted to reducing crime and illegal drug dealing,” No. 16-1048, Aplt. App. at 51,
The RICO claims
The Reillys own a parcel of land in Pueblo County, Colorado that is part “of the Meadows at Legacy Ranch, a development on the south side of Pickney Road.” Id. at 80. Safe Streets does not hold any property interest in that land. According to the Reillys, their land is a “beautiful rolling pasture with sweeping mountain vistas that include views of Pike’s Peak.” Id. The “Reillys do not live on their land,” and the only known structures there are “two agricultural buildings” of vague description. Id. However, the Reillys “often visit” the property “on weekends with their children to ride horses, hike, and visit with friends in the closely-knit neighborhood.” Id.
The allegations
To the “west and immediately adjacent to the Reillys’ property” is 6480 Pickney Road, id., the site of a recreational “marijuana grow” operating out of a newly constructed building located “just a few feet from the Reillys’ property line.” No. 16-1266, Aplt. App. at 129. The operation of the enterprise and the resultant noxious odors emanating from it are alleged to have caused harms of two general types.
First, the Reillys claim that the “publicly disclosed drug conspiracy” itself has “injured the value of [their] property.” Id. at 131. “People buy lots at the Meadows at Legacy Ranch because they want to keep horses or build homes in a pleasant residential area, and the Reillys’ land” allegedly “is less suitable for those uses due to the 6480 Pickney Road marijuana grow.” Id. For example, “the large quantity of drugs at marijuana grows” purportedly “makes them targets for theft, and a prospective buyer of the Reillys’ land would reasonably worry that the 6480 Pickney Road marijuana grow increases crime in the area.” Id.
Second, the Reillys aver that “[s]ince construction of the facility was completed, its operation has repeatedly caused a distinctive and unpleasant marijuana smell to waft onto the Reillys’ property, with the smell strongest on the portion of [their] property that is closest to [the] marijuana cultivation facility.” Id. at 130. “This noxious odor” allegedly “makes the Reillys’ property less suitable for recreational and residential purposes, interferes with the Reillys’ use and enjoyment of their proper
The Reillys thus contend that the recreational marijuana facility adjacent to their land has both interfered with their present use and enjoyment of the land and caused a diminution in its market value — e.g., by subjecting the land to the operation’s noxious emissions and by commencing that criminal enterprise nearby.
In Counts I through VI of their Second Amended Complaint, the Reillys brought civil RICO claims under § 1964(c) against a host of individuals and entities purportedly affiliated with that neighboring marijuana enterprise. On appeal, the remaining defendants to those claims are 6480 Pick-ney, LLC, Alternative Holistic Healing, LLC, Camp Feel Good, LLC, Jason M. Licata, Joseph R. Licata, and Parker Walton. We refer to them collectively as the “Marijuana Growers.”
According to the Reillys, the Marijuana Growers “all understood and agreed that the property” adjacent to the Reillys’ land “would be used to grow recreational marijuana for sale at Alternative Holistic Healing’s Black Hawk store, among other places.” Id. at 119. The Reillys therefore claim that 6480 Pickney, LLC and Alternative Holistic Healing, LLC are each unlawful enterprises. In addition, the Reillys allege that the Marijuana Growers “pooled their resources, knowledge, skills, and labor to achieve through [an] enterprise efficiencies in the cultivation and distribution of marijuana that none of them could have achieved individually.” Id. at 126. On that basis, the Reillys claim that the Marijuana Growers also formed a distinct “association-in-fact enterprise for the purpose of cultivating marijuana at 6480 Pickney Road.” Id.
Consequently, the Reillys allege that the Marijuana Growers are each subject to civil liability under § 1964(c) for the injuries they have caused to the Reillys’ property by operating their association-in-fact enterprise, which by definition flouts the CSA, and therefore violates RICO. See 18 U.S.C. § 1962(c). The Reillys note, for example, that “[l]easing or maintaining property for the cultivation of marijuana is a crime under” the CSA “and is racketeering activity” under RICO. No. 16-1266, Aplt. App. at 119. Likewise, “[d]ealing in marijuana is racketeering activity under RICO,” as is “conspiring] with racketeers by agreeing to assist them” in their unlawful endeavors. Id. at 101. “And because RICO defines most violations of the CSA as ‘racketeering activity,’ ” the Reillys assert, “any business engaged in the commercial cultivation and sale of recreational marijuana is a criminal enterprise for purposes of’ RICO. Id. at 108 (citation omitted). They therefore claim that all those who “conduct or conspire to assist such enterprises” are subject to “civil liability” under § 1964(c), such that the Marijuana Growers are liable for harming the Reillys’ property. Id.
In moving to dismiss, the Marijuana Growers argued that the “speculative injury to” the Reillys’ “property value” was no “proof of a concrete financial loss,” and was therefore insufficient “to allege an existing, concrete, financial injury,” which, in their view, is an element of a § 1964(c) claim. Id. at 25. They also vaguely suggested that the Reillys had not plausibly alleged that the Marijuana Growers were engaged in a RICO enterprise. Yet the Marijuana Growers also explicitly conceded that they each “agreed to grow marijuana for sale” at 6480 Pickney Road, adjacent to the Reillys’ land. Id. at 28.
The district court dismissed these RICO claims with prejudice, concluding that the Reillys had not pled a plausible injury to their property that was proximately caused by the Marijuana Growers’ activi
The district court underscored the Reil-lys’ purported failure to plead that their “land has been appraised for” less “than before the grow operation opened.” Id. And the district court remarked that the Reillys had “point[ed] to no concrete evidence (as opposed to mere inchoate fears) that potential purchasers have expressed concern about living near such a facility, much less declined to buy lots ... nearby.” Id. Continuing that theme, the district court determined that the complaint was deficient because the Reillys failed to “cite to any study or statistics that might demonstrate a causal relationship between the operation of such businesses and decreased property values” nearby. Id According to the district court, the Reillys therefore failed to make the “showing of damages that are clear and definite” required for “RICO standing,” counseling dismissal of their “wholly speculative” claims. Id at 207-08.
The Reillys timely appealed, which is before us as No. 16-1266.
Analysis
“RICO is to be read broadly.” Sedima, S.P.R.L. v. Imrex Co.,
The Reillys assert several theories under which the Marijuana Growers individually and collectively have violated § 1962, to the injury of the Reillys’ adjacent land. Here, we need only address one. The Reil-lys allege that the Marijuana Growers formed an association-in-fact enterprise that has and will continue to engage in a pattern of contravening the CSA through the manufacture of marijuana for distribution, an organizational mission that is a flagrant violation of § 1962(c). The Reillys also claim, inter alia, that neighboring illegal enterprise directly reduces the present value of their land by openly operating a criminal initiative; directly causes noxious odors to infiltrate their property, interfering with their present use and enjoyment of the land; and directly reduces the property’s present value by burdening it with those emissions. As we will explain, those alleged violations of § 1962(c) and direct injuries are sufficient for the Reillys to proceed on their RICO claims.
Congress has determined that “[i]t shall be unlawful for any person employed by or associated with any enterprise engaged in, or the activities of which affect, interstate or foreign commerce, to conduct or participate, directly or indirectly, in the conduct of such enterprise’s affairs through a pattern of racketeering activity....” 18 U.S.C. § 1962(c). Said more succinctly, § 1962(c) “makes it unlawful for a person employed by or associated with an enterprise to conduct the enterprise’s affairs through a pattern of racketeering activity.” RJR,
The Marijuana Growers forfeited any challenge to several of those elements here by failing to raise and argue them in the district court. See Richison v. Ernest Grp., Inc.,
1. Racketeering activity
“RICO is founded on the concept of racketeering activity. The statute defines ‘racketeering activity’ to encompass dozens of state and federal offenses, known in RICO parlance as predicates. These predicates include any act ‘indictable’ under specified federal statutes,” and among them is “drug-related activity that is ‘punishable’ under federal law.” RJR,
It follows, therefore, that operating a marijuana cultivation facility of the type the Reillys described in their Second Amended Complaint necessarily would involve some racketeering activity. As just one example, cultivating marijuana for sale — which the Marijuana Growers admit they agreed to do and they allegedly began and are continuing to do — is by definition racketeering activity. See id. We conclude the Reillys have adequately alleged that the Marijuana Growers are each engaged in racketeering activity.
2. Association-in-fact enterprise
Turning to the alleged affiliates of the facility at issue here, “RICO broadly defines ‘enterprise’ as ‘any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity.’ ” George,
Here, the Reillys alleged that for over a year the Marijuana Growers formed “an association-in-fact enterprise for the purpose of cultivating marijuana at 6480 Pickney Road and selling it at Alternative Holistic Healing’s Black Hawk store, among other places.” No. 16-1266, Aplt. App. at 126. To advance their aims, the Marijuana Growers purportedly “pooled their resources, knowledge, skills, and labor to achieve through th[at] enterprise efficiencies in the cultivation and distribution of marijuana that none of them could have achieved individually.” Id. The Reil-lys’ allegations of purpose, relationship, and longevity are sufficient for them to proceed on the basis that the Marijuana Growers together created an association-in-fact enterprise.
The Marijuana Growers appear to suggest that these allegations are insufficient because the Reillys also alleged that the corporate defendants were separate, smaller RICO enterprises. So far as it goes, they are correct that RICO “requires that the ‘person’ conducting the enterprise’s affairs be distinct from the ‘enterprise.’ ” George,
Specifically, the Reillys’ alternative enterprise theories do not undermine their well-supported allegations that the Marijuana Growers are each participating in a distinct, larger, association-in-fact enterprise. See Boyle,
3. Conducting the enterprise’s affairs
We now turn to each of the Marijuana Growers’ conduct in furtherance of their common goals. To maintain a § 1964(c) claim against any particular defendant, the Reillys need only to have alleged facts plausibly demonstrating that the defendant “conducted] or participate[d], directly or indirectly, in the conduct of [the] enterprise’s affairs.” 18 U.S.C. § 1962(c). “This, in turn, requires a showing that the defendant ‘participate^ in the operation or management of the enterprise itself.’” George,
However, “the defendant need not have ‘primary responsibility for- the enterprise’s affairs,’ ‘a formal position in the enterprise,’ or ‘significant control over or within [the] enterprise’ ” to be liable under RICO. Id. (citation omitted). The
But “a plaintiff can easily satisfy Reves’ operation and management test by showing that an enterprise member played some part — even a bit part — in conducting the enterprise’s affairs.” W. at 1252. The Marijuana Growers admit that they all “agreed to grow marijuana for sale” at the facility adjacent to the Reillys’ property, a facility at which they allegedly have been doing just that. No. 16-1266, Aplt. App. at 28. This plausibly alleges that the Marijuana Growers each conducted the enterprise’s affairs.
4. Pattern
For the first time on appeal, the Marijuana Growers suggest that the Reil-lys failed to plead sufficient facts to demonstrate that they engaged in a pattern of racketeering activity. “A predicate offense implicates RICO when it is part of a ‘pattern of racketeering activity’ — a series of related predicates that together demonstrate the existence or threat of continued criminal activity.” RJR,
As discussed, the Marijuana Growers admit that they all agreed to work together to cultivate marijuana for distribution and sale. The Reillys also allege that the Marijuana Growers began cultivating marijuana at their neighboring facility. Marijuana is a controlled substance under the CSA. 21 U.S.C. § 802(16). So the manufacture, distribution, and sale of that substance is, by definition, racketeering activity under RICO. 18 U.S.C. § 1961(1)(A), (D).
We need not decide whether the Marijuana Growers’ admitted agreement to take the related steps necessary to grow marijuana for distribution and sale is itself sufficient to establish a pattern of predicates that presents a threat of continuing criminal activity. Rather, we note that the Reillys alleged various actions each of the Marijuana Growers took to establish and operate the enterprise, an entity that is now purportedly pursuing those illegal ends. When coupled with the Reillys’ assertion that the Marijuana Growers began cultivating marijuana at their facility, we conclude these allegations plausibly state the requisite pattern of predicate acts that present a threat of ongoing criminal activity. As we will discuss, moreover, this pattern of illegal acts is the direct cause of the Reillys’ plausibly alleged injuries to their property.
5. The Reillys plausibly pled that the Marijuana Growers violated § 1962(c)
We conclude that the Reillys plausibly pled that the Marijuana Growers violated
B. Proximately caused injuries to the Reülys’ property
In light of our conclusion that the Reil-lys plausibly established that the Marijuana Growers violated § 1962(c), we must now determine whether they plausibly pled (1) injuries to their property (2) that were caused by those violations. IL § 1964(c); see RJR,
We conclude, however, that neither § 1964(c)’s text nor any ruling by the Supreme Court or this court establishes the novel statistical evidentiary pleading standard that the district court applied. In fact, the statute and applicable precedents compel the opposite conclusion with respect to the Reillys’ allegations that their property has been directly injured by their neighbors’ odorous and publicly-operating criminal enterprise.
1. Injuries
Section 1964(c)’s “reference to injury to ‘business or property’ ... cabin[s] RICO’s private cause of action to particular kinds of injury — excluding, for example, personal injuries — [by which] Congress signaled that the civil remedy is not coextensive with § 1962’s substantive [criminal] prohibitions,” which do not require proof of such injuries. RJR,
Among other things, the Reillys alleged that the noxious odors emanating from the Marijuana Growers’ criminal enterprise presently interfere with the use and enjoyment of their land. And they claimed that those odors are a direct result of the Marijuana Growers’ criminal cultivation of marijuana. They also averred that this ongoing, direct interference with their property diminishes its present market value — that property that smells foul is worth less than property that does not. The Reillys further claimed that their property has declined in value due to the Marijuana Growers’ publicly disclosed operation — in short, that when a crime syndicate openly sets up shop adjacent to one’s land, it reduces the value of that property. We address the alleged present nuisance and alleged di
a. Odorous nuisance injury
We have little difficulty concluding that the Reillys plausibly pled an injury to their property rights caused by the stench that the enterprise’s operations allegedly produce. “Congress meant to incorporate common-law principles when it adopted RICO.” Beck v. Prupis,
Under Colorado law, “the elements of a claim of nuisance are an intentional, negligent, or unreasonably dangerous activity resulting in the unreasonable and substantial interference with a plaintiffs use and enjoyment of her property.” Van Wyk,
The Marijuana Growers have not pointed us to any authority suggesting that a landowner’s complaints about a neighbor’s recurrent emissions of foul odors are conceptually unmoored from the owner’s property rights. Nor do they contend that Colorado’s recognition of odorous nuisances is any novel departure from the common law of property rights, which Congress incorporated into § 1964(c). See Beck,
The district court adopted that approach. But that was error, inter alia, because the Reillys’ claims were only at the pleading stage. See George,
b. Diminished property value
We now turn to the Reillys’ allegations that the market value of then-property has declined because the Marijuana Growers are publicly operating a
Of course, what we once called “RICO standing” or “statutory standing” we now properly characterize as the usual pleading-stage inquiry: whether the plaintiff has plausibly pled a cause of action under RICO. See Lexmark Int’l, Inc. v. Static Control Components, Inc., — U.S. —,
We are therefore puzzled by the district court’s suggestion that Gillmor’s relevant holding is distinguishable. That is, according to the district court, the Gillmor developers’ plans for their land were — in some unspecified fashion — more concrete than are the Reillys’ allegations here. But the Reillys aver that today their land is worth less than it was before, and that this diminution in value occurred because their new neighbors began their endeavors. Our holding in Gillmor plainly applies here; in fact, it does double duty.
First, as we have discussed, the Reillys pled ample facts to plausibly establish that the enterprise’s foul emissions interfere with the use and enjoyment of their property. We need only draw an eminently reasonable inference to conclude that it is plausible' that activities that interfere with one’s use and enjoyment of property diminish the value of that property. See George,
Second, the Reillys claim that the open operation of the Marijuana Growers’ criminal enterprise has caused the value of their land to decline, independent of the harms attending the nuisance. Specifically, they allege that, because a crime syndicate is publicly violating federal law adjacent to their property, that land is now less valuable. They suggest, for example, that if they were to attempt to sell their land today, it would be less attractive to a potential buyer — and is therefore presently worth less — because of the crimes being openly committed on the adjoining parcel. We conclude this is plausible.
We cannot countenance the district court’s digression that the Reillys’ claim was “speculative” and based on mere “inchoate fears” because they did not cite statistics, appraisals, attempts to sell, or other “concrete evidence” to “quantify” their “concrete financial loss” with “actual facts.” No. 16-1266, Aplt. App. at 206-08 & n.3 (citation omitted). Nor are we at liberty to disbelieve the Reillys by ratifying the Marijuana Growers’ speculation that the value of the Reillys’ land has, perhaps, increased because of the now-booming market in Colorado for land on which to cultivate marijuana. See George,
Moreover, the district court and the Marijuana Growers were mistaken to rely on Oscar v. University Students Co-operative Association and the cases citing it.
At this stage in the litigation, we conclude that it is reasonable to infer that a potential buyer would be less inclined to purchase land abutting an openly operating criminal enterprise than she would be if that adjacent land were empty or occupied by a lawfully-operating retailer. Based on the Reillys’ assertion that the Marijuana Growers’ operation is anything but clandestine, the Reillys’ land plausibly is worth less now than it was before those operations began. Therefore, we conclude that the Reillys pled a plausible diminution in the value of their property caused by the public operation of the Marijuana Growers’ enterprise. See Gillmor,
c. The Reillys’ other alleged “injuries”
In contrast, however, the Reil-lys claim to have suffered several other injuries that are not cognizable. For example, they claim to be injured each time they look to the west and observe the Marijuana Growers’ facility because the structure itself is a constant reminder of the crimes occurring therein. They also speculate that their land might further diminish in value in the future. But a plaintiff cannot recover for emotional, per
The scope of the Reillys’ presently plausible claims under § 1964(c) is therefore limited to the alleged injuries the Reillys have suffered or are suffering to their property rights from the Marijuana Growers’ violations of § 1962. See id. at 2096. We therefore conclude that the Reillys can, at most, presently recover only for three types of property injuries that were plausibly pled in their Second Amended Complaint: (1) the interference with the Reillys’ use and enjoyment of their land caused by the noxious odors emanating from the Marijuana Growers’ operation; (2) the diminution in the land’s value presently caused by those odors; and (3) the diminution in the land’s value presently caused by the existence of that publicly disclosed, ongoing criminal enterprise adjacent to the Reillys’ land. Consequently, we affirm the district court’s order dismissing the Reillys’ RICO claims premised on any other type of injury.
2. Proximate cause
We last turn to whether the Reillys plausibly alleged that any of the three classes of property injuries they sufficiently pled occurred or are occurring “by reason of’ the Marijuana Growers’ purported violations of the CSA, and thus § 1962(c). 18 U.S.C. § 1964(c); see RJR,
“[T]o establish the requisite element of causation” to maintain a § 1964(c) claim, a plaintiff must plausibly plead “that the defendant’s violation not only was a but for cause of his injury, but was the proximate cause as well.... ” Bridge,
In turn, “[w]hen a court evaluates a RICO claim for proximate causation, the central question it must ask is whether the alleged violation led directly to the plaintiffs injuries.” Anza,
a. Direct vs. indirect injuries
In Holmes, the Court confronted RICO claims premised on the alleged manipulation of stocks.
In Anza, the Court recognized two additional but related iterations of § 1964(c)’s bar to recovering for indirect injuries.
On the other hand, in Bridge, the Court considered whether “a plaintiff asserting a RICO claim predicated on mail fraud must plead and prove that it relied on the defendant’s alleged misrepresentations.”
b. The Reillys’ injuries plausibly were proximately caused by the § 1962(c) violations
None of the Supreme Court’s formulations of the term “indirect injury” bears any resemblance to the Reillys’ three plausibly alleged injuries caused by the Marijuana Growers’ violations of § 1962(c). The Reillys are suing to recover for injuries to their own land, not harms to third parties. See Holmes,
Further, no complex, external factors are at play, as the enterprise is the direct source of all of the alleged injuries to the Reillys’ land. See id. at 459,
Rather, it is sufficient that the property injuries that the Reillys allege are direct byproducts of the location and manner in which the Marijuana Growers are conducting their operations that purportedly violate the CSA. Therefore, we conclude that the Reillys have plausibly alleged that the Marijuana Growers’ violations of the CSA, and thus § 1962(c), proximately caused each of those three property injuries to the Reillys’ land. Consequently, we conclude that the Reillys have plausibly stated § 1964(c) claims against each of the Marijuana Growers for those three types of injuries.
Conclusions
In No. 16-1266, we reverse the district court’s order and its judgment dismissing the Reillys’ § 1964(c) claims against the Marijuana Growers, as pled in Counts I through VI of their Second Amended Complaint. We remand Safe Streets Alliance to the district court for further proceedings on the Reillys’ three plausibly alleged property injuries against each of the Marijuana Growers for conducting their association-in-fact enterprise in a manner that violates the CSA, and thus § 1962(c).
We also remand to the district court the balance of the Reillys’ RICO claims against the Marijuana Growers premised on other alleged violations of § 1962, but only to the extent that such violations are alleged to have caused one or more of those three types of injuries. Consequently, we do not decide what remedies are or are not available under RICO. We affirm the district court’s order and its judgment dismissing the RICO claims in all other respects.
Finally, we emphasize that our narrow holdings today do no more than apply the heavily fact-dependent standard Congress enumerated in § 1964(c) to the allegations in this case. We are not suggesting that every private citizen purportedly aggrieved by another person, a group, or an enterprise that is manufacturing, distributing, selling, or using marijuana may pursue a claim under RICO. Nor are we implying that every person tangentially injured in his business or property by such activities has. a viable RICO claim. Rather, we hold only that the Reillys alleged sufficient facts to plausibly establish the requisite elements of their claims against the Marijuana Growers here. The Reillys therefore must be permitted to attempt to prove their RICO claims.
The preemption claims
We now turn to the Reillys and Safe Streets’ asserted injuries and purported causes of action “in equity” against Colora
We first describe those putative causes of action, under which these plaintiffs neither claim that the State or the County is regulating their conduct, nor assert that the. Supremacy Clause or the CSA explicitly recognizes their property rights or, in fact, grants them any substantive rights. We then recount Supreme Court precedents explaining precisely why, in such circumstances, the conceded absence of any private substantive right in the CSA forecloses federal relief based on alleged violations of the CSA, in equity or otherwise.
The allegations
The Reillys and Safe Streets allege that Colorado and its municipalities have “facilitated the emergence of a billion dollar industry built upon the brazen commission of federal drug crimes.” No. 16-1048, Aplt. App. at 66. The Reillys and Safe Streets thus seek “to vindicate their” purported “federal rights under ... the Supremacy Clause.” Id. at 51. To that end, in Counts VII and VIII of their First Amended Complaint, the Reillys and Safe Streets assert that Amendment 64 conflicts with and is therefore preempted by the CSA, pursuant to the Supremacy Clause and § 903. They aver that “[fjederal courts sitting in equity have the power to set aside actions of state [and local] officials that are preempted under the Supremacy Clause,” and under § 903 as well. Id at 96.
Specifically, in the first of their “preemption counts,” the Reillys and Safe Streets seek “federal preemption of’ Colorado’s “marijuana licensing” regime. Id. at 95 (emphasis and capitalization omitted). They named as defendants the following State officers in their official capacities: John W. Hickenlooper, Jr., the Governor of Colorado; Barbara J. Brohl, the Executive Director of the Colorado Department of Revenue; and W. Lewis Koski, the Director of the Colorado Mari
In their second “preemption count[],” the Reillys and Safe Streets raised substantively identical claims with respect to Pueblo County, Colorado’s “local marijuana licensing” regime. No. 16-1048, Aplt. App. at 97 (emphasis and capitalization omitted). They named as defendants to those claims the Board of County Commissioners of the County of Pueblo and the Pueblo County Liquor and Marijuana Licensing Board. We refer to these defendants collectively as “Pueblo County.”
In support of those claims, Safe Streets referred to “injuries caused by the operation[] of the Colorado-licensed marijuana industry.” Id. at 52. However, it did not allege any particular injury that it or its other, unidentified members have suffered from Colorado’s “efforts to license and promote the commercial marijuana industry.” Id at 82. For example, although Safe Streets claimed that the “MED’s decision to license [a] recreational marijuana infused products manufacturer” in Denver “has substantially damaged the value of surrounding properties,” it did not assert that its members’ properties “near” that facility have been damaged. Id at 82-83.
In contrast, the Reillys alleged that Colorado and Pueblo County caused them to suffer specific, but discrete, injuries. In particular, ■ the Reillys alleged that the Marijuana Growers “applied for both state and local licenses to cultivate marijuana at 6480 Piekney Road.” Id. at 71. “On October 1, 2014, MED granted” the Marijuana' Growers “a state license, conditioned on [them] also obtaining a local license,” which they later were issued by Pueblo County. Id at 71-72. The Reillys thus claim that Colorado and Pueblo County’s “decisions to license those operations injure the Reillys’ property.” Id. at 80 (emphasis and some capitalization omitted).
More specifically, the Reillys contend that the Marijuana Growers “could not have located their marijuana grow operation at 6480 Piekney Road if they had not received authorization from” Colorado and Pueblo County “to do so.” Id. at 82. This is exemplified, the Reillys aver, by the fact that the Marijuana Growers “did not begin construction on the facilities at 6480 Piek-ney Road until the State” and the County issued the licenses that “authorized them to grow marijuana at that location.” Id. “Thus,” the Reillys claim that Colorado and Pueblo County “also caused the[m] to suffer injuries” to their property. Id.
For example, they claim that the “MED’s licenses ... affirmatively assist and promote the commercial cultivation and distribution of recreational marijuana by functioning as a state endorsement of licensed businesses and employees.” Id. at 96-97. In turn, those “endorsement[s]” purportedly “assistf ] potential recreational marijuana investors and customers by assuring them that [the] licensees have been investigated and approved by the State” and the County. Id. at 97. The Reillys and Safe Streets also claim that the United States has “adopted a policy of not bringing criminal charges against those who commit marijuana-related drug crimes in a manner that is consistent with state and local law.” Id at 73. Thus, the Reillys and Safe Streets suggest that the licenses Colorado and Pueblo County issued to the Marijuana Growers were, and are, “essential to” that enterprise’s “ability to openly violate the federal drug laws through large-scale cultivation and storefront sale of recreational marijuana.” Id.
The Reillys and Safé Streets also claim that Colorado and Pueblo County’s “issu-
Nevertheless, the Reillys and Safe Streets demand sweeping relief. They seek an “order” directing Colorado and Pueblo County “to withdraw” all of “the recreational marijuana licenses” they have “issued so far and not to issue any additional such licenses in the future.” Id. at 51-52. In similar fashion, the Reillys and Safe Streets request a declaratory judgment that Colorado and Pueblo County’s “issuance of marijuana business and occupational licenses is preempted by federal law.” Id. at 99. Accordingly, they also request an order “[vjacating” all of the “marijuana business and occupational licenses issued by” the State and the County, and an order “enjoining” Colorado and Pueblo County “from issuing additional” licenses. Id.
Finally, they demand an even more comprehensive declaratory judgment “that those portions of the Colorado Constitution and the [Colorado] Retail Marijuana Code that purport to authorize or facilitate violations of the federal drug laws are preempted by federal law.” Id. But we apparently are to discern for ourselves precisely which offending words are to be stricken from, inter alia, the Colorado Constitution. For the Reillys and Safe Streets did not plead — and they have never identified— precisely which provisions of the Colorado Constitution, the Colorado Retail Marijuana Code, the Pueblo County Code, or those alluded-to regulations conflict with specific provisions of the CSA and are therefore preempted by operation of § 903 and the Supremacy Clause.
In any event, at Colorado and Pueblo County’s request, the district court severed the preemption claims from the RICO claims. Colorado and Pueblo County then moved to dismiss the preemption claims. The Reillys and Safe Streets’ response advanced the same novel concepts that we will discuss below. It suffices here to make only two points.
First, the Reillys and Safe Streets confirmed that they were seeking “a decision invalidating the State’s [and the County’s] marijuana licensing and regulatory laws” in their entirety, untethered to any specifically alleged injuries. Id. at 182.
Second, relatedly, they did not directly address Colorado and Pueblo County’s argument that they cannot enforce the CSA because that federal statute does not grant private citizens any relevant substantive rights. Indeed, the Reillys and Safe Streets did not contend that § 903 or any other provision of the CSA, in fact, vests private citizens with any relevant substantive rights. Nor did they purport to identify any substantive rights recognized in the Constitution or established by any federal statute that serve as the foundation for their alleged causes of action in equity for sweeping injunctive relief. Rather, according to the Reillys. and Safe Streets, they are simply “invoking [the Article III courts’] equitable authority to enjoin actions by state officers that are preempted by the” CSA “and thus violate the Supremacy Clause....” Id. at 149.
The district court was unpersuaded. It determined — for reasons similar to but not the same as those undergirding our conclusions — that the Reillys and Safe Streets had not alleged viable causes of action, and
Analysis
The Reillys and Safe Streets assert that they do not need any constitutional or federal substantive rights to be entitled to remedy a State’s, a municipality’s, or any government officer’s violation of federal law. Rather, they claim to be able to enforce the CSA’s preemptive effects “in equity” so long as they have been injured — in any way — by official conduct that also violates a federal statute. Under their theory of equitably derived federal substantive rights, all such injuries give rise to causes of action to enforce federal law against any government officer, and for plenary injunc-tive relief.
More specifically, the Reillys and Safe Streets do not assert that their putative causes of action are based on any substantive rights created or even protected by the Constitution, § 903, any other provision of the CSA, or any federal statute.
For example, the Reillys claim that their property has been injured by Colorado and Pueblo County’s activities. But they do not assert that the CSA refers to a private citizen’s real property rights, let alone protects those rights.
Their remarkable vision of federal equitable relief in the absence of federal substantive rights is, apparently, premised on the notion that free-floating causes of action in equity exist unless “Congress has restricted the courts’ preexisting equitable authority to enjoin violations of federal law.” No. 16-1048, Aplt. Reply Br. at 5 n.l (emphasis omitted). According to the Reil-lys and Safe Streets, “equity” is “a standalone source of legal rights,” the “origin of a host of substantive rights not recognized at common law,” by which they argue that equity itself creates a substantive right permitting them to enforce the entire
The Reillys and Safe Streets next inform us that no principle holds “a plaintiff may not sue state officers who are injuring him by implementing a policy that conflicts with federal law unless a federal statute confers ‘enforceable legal rights’ or the suit is brought in anticipation of a state enforcement action.” Id at 14-15. The heart of their argument is that there is no “rationale for limiting suits in equity” in this way. Id at 17. That is, “other types of injuries, such as those [they] allege here” — i.e., not based on any federal substantive rights — “should be an equally valid basis for invoking the federal courts’ equitable powers.” Id. We are thus urged to ignore Article I.
Finally, the Reillys and Safe Streets hypothesize that once a private citizen has been injured by such an act, she or he has an equitable cause of action to enjoin the State’s or its officers’ conduct to the full extent of the statutory violation, without regard to the scope of the plaintiffs alleged injuries. For example, the Reillys request that we issue a declaratory judgment and an injunction barring enforcement of Amendment 64 statewide, inter alia, by invalidating not just the Marijuana Growers’ licenses, but all such licenses. The Reillys seek this far-flung relief even though their only alleged injuries concern property damage and emotional harms. Having cavalierly dispensed with Articles I and II, they at last encourage us to cast aside Article III.
A. Subject matter jurisdiction
These circumstances — plaintiffs purportedly bringing causes of action for federal “relief,” but failing to invoke federal rights — raise a threshold question whether we have subject matter jurisdiction over Safe Streets Alliance. See United States v. Ruiz,
The Reillys pled well-defined federal causes of action to vindicate federal substantive rights Congress enumerated in RICO. “[W]hen federal law creates a private right of action and furnishes the substantive rules of decision, the claim arises under federal law, and district courts possess federal-question jurisdiction under § 1331.” Mims v. Arrow Fin. Servs., LLC,
To the extent that the disparate nature of these claims vis-a-vis the RICO claims raises any doubts about this, cf. Fed. R. Civ. P. 20(a)(1), we conclude that the district court had an independent basis of subject matter jurisdiction over the preemption claims under 28 U.S.C. § 1331 for at least two distinct, but related, reasons.
Second, and only with that question answered, the Reillys and Safe Streets’ attempts to privately enforce the CSA in this manner raise, at minimum, “substantial question^] of federal law” on the merits that were sufficient for the district court to have exercised jurisdiction over the preemption claims in their entirety under § 1331. Franchise Tax Bd. v. Constr. Laborers Vacation Tr.,
It follows, therefore, that in No. 16-1048 we have appellate jurisdiction over the preemption claims in Safe Streets Alliance. 28 U.S.C. § 1291; see, e.g., Lexmark,
B. Background issues
We pause to note three related issues that frame our discussion.
First, none of the claims before us today are asserted on behalf of others similarly situated or on an alleged class-wide basis. Recall, for example, that the Reillys are the only identified members of Safe Streets.
Finally, the Reillys and Safe Streets argue that they must be able to enforce § 903 because if they cannot, then neither can the Attorney General. That follows, they claim, because just as private citizens are not mentioned in § 903, neither is the Attorney General. And they surmise that if private citizens lack the power to enforce § 903, that means the United States also must not be able to enforce federal law. We will highlight only two of the most glaring reasons why that notion is specious.
For one, the “assumption that if’ the Reillys or Safe Streets “ha[d] no standing to sue, no one would have standing, [would] not [be] a reason to find standing.” Clapper v. Amnesty Int’l USA,
The Supreme Court has reaffirmed time and again that the United States is empowered to enforce the supremacy of federal law against preempted State action, and that it may obtain an injunction to that effect. See, e.g., Arizona v. United States,
C. Private citizens without injuries to rights enumerated in the CSA cannot enforce § 903
The Reillys and Safe Streets rely on Armstrong v. Exceptional Child Center, Inc., — U.S. —,
In Armstrong, the Supreme Court conducted a familiar three-step analysis of whether the plaintiffs’ claims were viable. The Court: (1) discerned what alleged substantive rights the plaintiffs were seeking to vindicate; (2) decided what putative causes of action the plaintiffs were raising based on those rights; and (3) determined which, if any, of those causes of action were viable, and specifically with respect to the equitable relief requested. See id. at 1382-87; Davis v. Passman,
At the first step, the Court succinctly remarked that the plaintiffs were “providers of habilitation services to persons covered by Idaho’s Medicaid plan” who “claim[ed] that Idaho violates § 30(A)” of Medicaid “by reimbursing [them] at rates lower than § 30(A) permits.” Armstrong,
At the second step, the Court decided that the providers were pleading two supposed causes of action to vindicate those
At the third step, the Court determined whether each of those putative causes of action stated a viable claim for the equitable relief requested — i.e., an injunction requiring Idaho to compensate them with those federal funds at a higher rate. Id. at 1383-87.
With respect to the providers’ first claim, the Court reiterated that “the Supremacy Clause is not the ‘source of any federal rights,’ ” and held that the Clause “certainly does not create a cause of action.”
In Armstrong, the Court last turned to the providers’ putative causes of action in equity to vindicate their professed statutorily-created property rights. The Court began this analysis by invoking two related bedrock principles that apply whenever an Article III court sits in equity, as in law. “The power of federal courts of equity to enjoin unlawful executive action is subject to express and implied statutory limitations.”
Applying those principles, the Court adopted a two-pronged analytical framework to decide if the providers’ claims for injunctive relief were viable. Id. at 1385-87. Specifically, the Court concluded that “[t]wo aspects of § 30(A) establish Congress’s ‘intent to foreclose’ equitable relief’ for the alleged violations of the providers’ substantive right to federal funds. Id. at 1385. “First,” the Court explained, “the sole remedy Congress provided for a State’s failure to comply with Medicaid’s requirements ... is the withholding of Medicaid funds by the Secretary of Health and Human Services.” Id. (citation omitted). Second, that narrow available remedy foreclosed equitable relief “when combined with the judicially unadministrable nature of § 30(A)’s text.” Id. The Court thus held that, despite the providers’ claim that their federal rights were infringed, they could not recover. Id. at 1386-87.
The Reillys and Safe Streets devote near-singular attention to that inquiry: whether Congress foreclosed equitable relief for Colorado and Pueblo County’s purported violations of the CSA, including § 903.
That is, of course, “[t]he elements of, and the defenses to, a federal cause of action are defined by federal law.” Howlett v. Rose,
Critically, the Supreme Court has explained that “to invoke the” Article III courts’ equitable powers, a plaintiff asserting a cause of action to enforce a federal statute must have “a federal right that [he or she] possesses against” the defendant. Va. Office for Prot. & Advocacy v. Stewart,
The Reillys suggest otherwise. But “[t]his principle has deep roots in our jurisprudence.” Franklin v. Gwinnett Cty. Pub. Sch.,
In turn, “private rights of action to enforce federal law must be created by Congress.” Sandoval,
Most importantly here, this threshold inquiry into whether the plaintiff has a substantive right in the federal statute she or he seeks to enforce transcends the division between law and equity. The Supreme Court has held that a “[c]ourt of equity cannot, by avowing that there is a right but no remedy known to the law, create a remedy in violation of law....” Pangilinan,
The Supreme Court succinctly summarized these well-established principles in Stewart. Again, the Court stated that with respect to a plaintiffs suit in equity to enforce a federal statute, “[s]uch litigation cannot occur unless the” plaintiff “has been given a federal right of [their] own to vindicate ... under the ... statute at issue” in the case. Stewart,
If the Supremacy Clause includes a private right of action, then the Constitution requires Congress to permit the enforcement of its laws by private actors, significantly curtailing its ability to guide the implementation of federal law. It would be strange indeed to give a clause that makes federal law supreme a reading that limits Congress’s power to enforce that law, by imposing mandatory private enforcement....
Id. at 1384.
In sum, Congress, not the courts, creates federal statutory substantive rights, which are prerequisites to private suits to enforce federal statutes. Therefore, as these cases all explain, to determine whether a private plaintiff may enforce the CSA, we must first determine whether that' plaintiff has substantive rights in the CSA that he or she is seeking to vindicate. See, e.g., Stewart,
Consequently, to determine if the Reillys can enforce the CSA in equity, our threshold inquiry is whether § 903 creates new federal substantive rights or incorporates by reference a private citizen’s existing substantive rights, elevating them for federal protection. Cf., e.g., 18 U.S.C. § 1964(c) (incorporating private common-law property rights into RICO). “For a statute to create such private rights, its text must be ‘phrased in terms of the persons benefited.’ ” Gonzaga,
Here, however, no discerning inquiry is necessary because the Reillys and Safe Streets have never alleged that they have any substantive rights in § 903 or elsewhere in the CSA by which they can enforce the CSA’s preemptive effects. Where a federal statute “simply does not create substantive rights,” the Supreme Court has explained that it is “unnecessary to address [any] remaining issues” about a private citizen’s ability to enforce that statute or obtain relief. Pennhurst State Sch. & Hosp. v. Halderman,
Finally, we note that Article III courts “will not ... ‘entertain citizen suits to vindicate the public’s nonconcrete interest in the proper administration of the laws.’” Massachusetts v. EPA,
D. The Reillys and Safe Streets’ calls to equity do not alter this conclusion
The Reillys and Safe Streets attempt to avoid this result by drawing our attention to numerous cases in which the Supreme Court has held that equitable relief is available. But their fixation on federal equitable relief begs the question whether a private citizen has a federal substantive right to begin with. Perhaps in antiquity a private citizen could enter a judicial forum and demand equitable relief in the absence of any injury to a protected substantive right. But such incantations almost certainly ceased to hold any power in 1788. See U.S. Const, art. Ill, § 2.
After all, for federal question jurisdiction to exist today, a “right or immunity created by the Constitution or laws of the United States must be an element, and an essential one, of the plaintiffs cause of action.” Franchise Tax Bd.,
In any event, we need not explore the ancient roots of equity to be certain of our conclusion today. In Pennhurst State School & Hospital v. Halderman (Pennhurst II),
We have examined the cases they cited and numerous others both predating and postdating Pennhurst II. Many of those precedents explicitly state that an Article III court may vindicate federal rights in equity, with no mention of granting relief in their absence. See id. at 105-06,
Conclusions
In sum, we conclude that the Reillys and Safe Streets’ preemption claims against Colorado and Pueblq County fail to state plausible claims upon which relief can be granted. See Shields,
III. Smith
In Smith, a group of county attorneys and sheriffs from Colorado, Kansas, and Nebraska brought a complaint against Colorado alleging distinct injuries but assert
The allegations
More specifically, the plaintiffs in Smith are Sheriffs Justin E. Smith, Chad Day, Shayne Heap, Ronald B. Bruce, Casey Sheridan, and Frederick D. McKee of Colorado; Sheriff Burton Pianalto of Kansas; Sheriffs Scott DeCoste, John D. Jenson, and Mark L. Overman of Nebraska; County Attorney Charles F. Moser of Kansas; and County Attorney Paul B. Schaub of Nebraska. The Colorado Sheriffs assert their claims only in their individual capacities, whereas the other plaintiffs all sue in their individual capacities and purportedly on behalf of their respective municipal offices. We refer to them collectively as the “Law Enforcement Officers.”
The Colorado Sheriffs claim to have been harmed by the “enactment of Amendment 64” because their “oath[s] of office to uphold the United States Constitution” and the “Colorado Constitution” now “contradict each other.” No. 164095, Aplt. App. at 45. Specifically, where they discover individuals in possession of marijuana— in violation of the CSA but not in violation of Amendment 64 — they allegedly must “choose between violating” their oaths to one sovereign or the other. Id. at 46. They argue, for example, that they “violate their oath[s] to uphold the” Constitution “when they fail to take steps to enforce the CSA during” those “encounters and instead allow the illegal marijuana to remain in the possession of the holder for use or further distribution.” Id. at 47.
However, they also concede that each of them “is aware that the CSA authorizes him to seize ... all marijuana he encounters during the course of performing his duties, and to deliver such contraband” to the United States, “thereby both complying with and enforcing the CSA.” Id. Yet the Colorado Sheriffs claim that if they were to seize that marijuana, they would “be in violation of’ their oaths “to uphold the Colorado Constitution,” in some unspecified fashion. Id. They also allege that doing so would create “legal exposure” for them and their respective counties. Id. at 48. Yet they do not point to any feature of the CSA requiring them to seize marijuana they discover. Nor do they claim that any provision of Amendment 64 requires them to refrain from seizing marijuana, or that any order, policy, practice, or custom operates to similar effect. Like all of the other Law Enforcement Officers, therefore, the Colorado Sheriffs do not assert — and they certainly have never argued that they are asserting — federal defenses to enjoin Colorado from enforcing Amendment 64 against them.
Finally, although the Attorney General has authority “to deputize state and local law enforcement officers to” enforce the CSA, id. at 24 (citing 21 U.S.C. § 878), none of the Law Enforcement Officers allege that they have been deputized by the Attorney General to enforce § 903 against Colorado, or to enforce the CSA in any other respect. Therefore, designated authority to enforce the CSA does not bear on these claims.
To remedy their specific putative injuries, the Law Enforcement Officers instead claim to invoke the federal courts’ equitable power to enjoin Governor Hick-enlooper, in his official capacity, from enforcing Amendment 64. To that end, they allege two “causes of action” against Colorado. Id. at 54 (emphasis and capitalization omitted). First, they assert that “Sections 16(3)[ — ](5) of Amendment 64, taken in whole and in part,” are “drug-legalization and drug-regulation policies” that “legalize and commercialize” recreational marijuana. Id. at 54-55. Because those provisions of Amendment 64 allegedly “conflict with”
The district court dismissed those claims for substantively the sarnie reasons as it did the Reillys and Safe Streets’ preemption claims. The Law Enforcement Officers timely appealed, which is before us as No. 16-1095. At the parties’ request, we consolidated that appeal with the Reillys and Safe Streets’ appeal in No. 16-1048.
Analysis
The Law Enforcement Officers do not allege any specific substantive rights bestowed on them by the Supremacy Clause or the CSA that they seek to vindicate. More specifically, they concede that the Supremacy Clause creates no substantive rights and “does not give rise to a private right of action,” mooting their first purported claim for relief. Id at 95. And they do not invoke any substantive right found in the CSA, or elsewhere, that animates their second alleged cause of action. For example, the allegedly beleaguered Kansas and Nebraska Sheriffs do not contend that any provision of the CSA creates or even references a private citizen’s labor rights, professional development “rights,” or financial interests, or those of their respective law enforcement offices.
Instead, like the Reillys and Safe Streets, the Law Enforcement Officers seek to proceed on their claims merely by emphasizing that “an action may proceed in equity unless Congress implicitly or expressly excludes such an action.” Id at 96 (citation omitted). They have maintained that theme here, asserting that “a party may seek injunctive relief against a state for its failure to abide by federal law unless Congress implicitly or expressly excludes such an action.” No. 16-1095, Aplt. Br. at 25. Thus, they claim that “the enforcement of the CSA is not confined to a governing federal agency,” even in the absence of delegated authority to enforce that statute. Id at 33.
Subject matter jurisdiction
We again face a threshold question of subject matter jurisdiction. See Ruiz,
The Law Enforcement Officers’ claims fail as a matter of law
Like the Reillys and Safe Streets, the Law Enforcement Officers advance purported causes of action in equity to enforce the CSA’s preemptive effects, but in the absence of any claimed injury to their federal substantive rights. “On the merits,” the Law Enforcement Officers’ “case raises the same question” that we have already answered in the negative in Safe Streets Alliance: A private plaintiff has no substantive rights under, and cannot enforce, § 903. Norton v. Mathews,
Accordingly, in No. 16-1095, we affirm the district court’s order and its judgment dismissing the Smith case on the merits and with prejudice. See Mont.-D. Utils. Co. v. Nw. Pub. Serv. Co.,
IV. Nebraska and Oklahoma
One final wrinkle developed after these cases came before us. At the . same time that the underlying actions were proceeding in the district court, Nebraska and Oklahoma filed an original complaint against Colorado in the Supreme Court of the United States, pursuant to the Court’s “original and exclusive jurisdiction of all controversies between two or more States.” 28 U.S.C. § 1251(a). There, Nebraska and Oklahoma conceded that “[t]he Court’s jurisdiction” over their “case is exclusive,” and the Supreme Court “is the sole forum in which Nebraska and Oklahoma may enforce their rights” against Colorado “under the Supremacy Clause .... ” Complaint at 1, Nebraska v. Colorado, — U.S. —,
Like the private plaintiffs here, Nebraska and Oklahoma attempted to enjoin enforcement of Subsections 4 and 5 of Amendment 64. The States claimed those enactments conflict with the CSA and are therefore preempted by operation of the Supremacy Clause and § 903. The scope of relief they requested was thus narrower but overlapping with that demanded in the instant cases. Yet the theories by which the States sought to force Colorado to comply with the CSA were of a distinct order, premised on their alleged rights as separate sovereigns in our federal system. They claimed to be empowered to enforce federal law both for their own benefit, as sovereigns, and for the good of their citizens, in the States’ quasi-sovereign capacities as parens patriae.
The Supreme Court exercised its discretion ' to decline to hear such inter-state actions and consequently denied Nebraska
The allegations
Justice Thomas’ warning and Nebraska and Oklahoma’s own prior concessions apparently were soon forgotten. The States next moved to intervene on appeal in Safe Streets Alliance and Smith, urging us to exercise jurisdiction over their controversy with Colorado stemming from its implementation of Amendment 64. More specifically, they sought to intervene as of right under Federal Rule of Civil Procedure 24(a), and claimed to meet the additional burdens we have said a party must shoulder to intervene on appeal.
Nebraska and Oklahoma then recapitulated their previous concession that “[t]he Supreme Court is the only court with jurisdiction to hear suits of the sort brought by” them. Mot. to Intervene by States of Neb. & Okla. at 3. The “result,” they claimed, is “that there is no court with jurisdiction to hear Nebraska and Oklahoma’s suit directly against the State of Colorado.” Id Yet the States pointed to no statute, rule, or precedent preventing them from refiling their original complaint in the Supreme Court, pursuant to § 1251(a). We also have found none.
As to the controversy now before us, Nebraska and Oklahoma framed their interests as protective of their rights to “[a]n action” or “suit for declaratory and injunc-tive relief against the Colorado officials responsible for executing the challenged Colorado laws” — i.e., Amendment 64. Id. They suggested that they should be permitted to intervene in the appeals because if they were “to initiate such a suit in district court” on their own, we might “have in the interim decided the critical issue of whether there is a cause of action to challenge Colorado’s marijuana laws as preempted by the CSA,” and in their absence. Id. In doing so, however, Nebraska and Oklahoma ignored glaring distinctions between their putative causes of action— which are premised on their status as sovereigns — and the private citizens’ claims in Safe Streets Alliance and Smith.
Nebraska and Oklahoma next purported to circumvent § 1251(a)’s unambiguous command that this court is forbidden from exercising jurisdiction over their claims by framing their challenge to Amendment 64 as a controversy over Governor Hieken-looper’s enforcement of it. Yet Nebraska and Oklahoma repeatedly stated that the grievances they brought before us and claims they plan to file are exactly the same as those they asserted directly against Colorado in the Supreme Court. That concession is integral, for example, to their argument that their intervention on appeal is timely. What they are seeking to challenge is also undisputed: Colorado’s authority to enforce its Constitution, laws, and regulations. Moreover, even as Nebraska and Oklahoma obliquely avoided stating that their claims are against their sister sovereign, nowhere in their motions did they purport to deny that their contro
To assure ourselves that we lack jurisdiction to hear Nebraska and Oklahoma’s dispute, we allowed the States to fully ventilate their novel jurisdictional theory in briefing. The States additionally requested to participate in oral argument. To accommodate the States’ request despite their then neither being appellants, appel-lees, nor amici curiae, we granted the motion to intervene in No. 16-1048, which permitted them to participate in oral argument. See Fed. R. App. P. 27(e), 29(a)(8), 34; 10th Cir. R. 34.1(F).
Nebraska and Oklahoma have now said all that they wish to say on the subject of our jurisdiction over their grievances with Amendment 64. We now must decide whether § 1251(a) bars us from hearing their controversy. If so, that determination necessarily forbids their continued intervention. They cannot shoulder their burden under Rule 24(a) if we are barred from determining that they have any viable interests adverse to Colorado, nor can they meet the requirements to intervene on appeal. Moreover, the distinct nature of Nebraska and Oklahoma’s putative sovereign causes of action means that we must address these issues separately from our disposition of the private plaintiffs’ claims.
Analysis
Nebraska and Oklahoma seek to intervene to protect their avowed interests in enjoining the enforcement of Amendment 64 as allegedly preempted by the CSA. The States thus come before us positioned analogously to intervening defendants in a declaratory judgment action — requesting to enter the Article III courts for the purposes of defending an interest in an underlying controversy in which they are the plaintiffs. In turn, the underlying declaratory and injunctive relief the States seek to obtain largely mirrors — though is not as extensive as — the relief that the private plaintiffs demanded. Yet “States are not normal litigants for the purposes of invoking federal jurisdiction.” Massachusetts,
Our disposition of the private citizens’ preemption claims therefore does not— indeed, could not — affect Nebraska or Oklahoma’s putative sovereign claims, their sole stated interests supporting intervention on appeal here. See Mississippi v. Louisiana,
Further, Nebraska and Oklahoma are mistaken that limiting their putative sovereign claims to demands for prospective injunctive relief obtains a different result. “[A] suit against a state official in his or her official capacity is not a suit against the official but rather is a suit against the official’s office,” which “is no different from a suit against the State itself.” Will v. Mich. Dep’t of State Police,
The States invoke the caveat that “official-capacity actions for prospective relief are not treated as actions against the State” for the purposes of sovereign immunity. Kentucky v. Graham,
We also note that Rule 24(a)’s provisions cannot remove the Article III hurdle that anyone faces when voluntarily seeking to enter a federal court, see Wittman v. Personhuballah, — U.S.—,
Consequently, even though the private litigants’ preemption claims fail, our still extant order granting Nebraska and Oklahoma’s motion to intervene in Safe Streets Alliance necessarily implies that, at minimum, the States have some concrete, particularized, and redressable claim against Colorado, in turn permitting their intervention in this court to defend that interest. We have given the States exceptional leeway to advance counterarguments to this unavoidable conclusion. But the only authority the States point to is wholly unavailing. For the reasons stated in then-Judge Sotomayor’s dissent, we reject Connecticut v. Cahill’s unsupported declaration that the lower federal courts are vested with jurisdiction over interstate disputes naming State officers as defendants.
However, Section 1251(a) of Title 28 of the United States Code states: “The Supreme Court shall have original and exclusive jurisdiction of all controversies between two or more States.” The Court has held that the “plain meaning” of that “uncompromising language ... necessarily denies jurisdiction of such cases to any other federal court,” regardless of the consequences to a State’s claims. Mississippi,
V. Conclusions
The parties dispute whether Amendment 64 is preempted by the CSA. Our conclusions regarding the preemption claims do not require us to reach that question. We therefore do not decide whether the CSA preempts any aspect of Amendment 64, or Colorado and Pueblo County’s laws or regulations.
Rather, in No. 16-1266, the district court’s order and its judgment dismissing Counts I through VI of the Second Amended Complaint in Safe, Streets Alliance are AFFIRMED in part and REVERSED in part as follows:
• The dismissal of the Reillys’ RICO claims against the Marijuana Growers premised on one (or more) of the three types of injuries to the Reillys’ property that were plausibly pled is REVERSED, and those claims are reinstated.
• The dismissal of the Reillys’ RICO claims against the Marijuana Growers premised on any other injury is AFFIRMED.
• The dismissal of Safe Streets’ RICO claims and of the Reillys’ RICO claims against every other defendant is AFFIRMED.
In No. 16-1095, the district court’s order dismissing with prejudice the Law Enforcement Officers’ claims and its judgment in Smith are AFFIRMED.
Our order granting Nebraska and Oklahoma’s motion in No. 16-1048 to intervene in Safe Streets Alliance is VACATED. Nebraska and Oklahoma’s motions to intervene in Nos. 16-1048 and 16-1095 are DENIED.
Finally, therefore, Counts I through VI of the Second Amended Complaint in Safe Streets Alliance are REMANDED for further proceedings consistent with this opinion.
Notes
. Amendment 64 addresses a host of substances derived from plants of the Cannabis genus. Id. § 16(2)(f). The parties do not suggest any distinction between Cannabis derivatives is of import here. So we refer to these ■ substances collectively as ''marijuana.” The parties also agree that Colorado’s "medical marijuana” regime is not at issue in these suits. Id. § 16(7) (capitalization omitted). We therefore confine our discussion to what the parties term "recreational marijuana” — i.e., marijuana grown, processed, distributed, sold, possessed, or used other than for purportedly "medicinal” purposes.
. Section 903 of Title 21 of the United States Code states:
No provision of this subchapter shall be construed as indicating an intent on the part of the Congress to occupy the field in which that provision operates, including criminal penalties, to the exclusion of any State law on the same subject matter which would otherwise be within the authority of the State, unless there is a positive conflict between that provision of this subchapter and that State law so that the two cannot consistently stand together.
. The Reillys and Safe Streets filed two amended complaints. The First Amended Complaint is the operative pleading with respect to their preemption claims, while the Second Amended Complaint is relevant to their RICO claims. We refer to them as is appropriate to our discussion of the specific issue under consideration.
. Safe Streets is no longer appealing the dismissal of its RICO claims.
. The Concurrence states that we "declare[] that even if state and local law is preempted by the” CSA, "the plaintiffs cannot seek in-junctive relief against those laws under the federal courts’ equity powers because neither the CSA nor any other federal law bestows on them a substantive private right.” Concurrence at 914. That is not the full import of our ruling. As we will explain, the Supreme Court has repeatedly recognized that the Constitution itself forbids private plaintiffs from enforcing federal statutes in which they have no substantive rights. See, e.g., Va. Office for Prot. & Advocacy v. Stewart,
. If somewhere lurking in the record on appeal or the briefs is any reference to a relevant substantive right that Congress bestowed on private citizens or incorporated by reference in the CSA, we have not found it. In any event, the failure to adequately develop such an argument in the district court forfeited it, and it is waived, moreover, because no such argument was raised and developed on appeal. See Holmes v. Colo. Coal. for Homeless Long Term Disability Plan,
. Of course, we are aware that the CSA bestows specific substantive rights on particular classes of private citizens for certain types of activities. But those rights have not been invoked in these cases, and, in any event, none of them are even arguably relevant here. E.g., 21 U.S.C. § 830(c)(4) ("Any person who is aggrieved by a disclosure of” certain prescription records "may bring a civil action against the violator for appropriate relief.”).
. As described in our analysis of the Reillys' RICO claims, they have alleged redressable injuries purportedly caused in part by Colorado and Pueblo County's recreational marijuana licensing regime. This gives them Article III standing to assert at least some of their claims seeking to remedy their injuries by enforcing the CSA, in turn requiring us to reach whether any such claim is viable. See Spokeo, Inc. v. Robins, — U.S. —,
. The Concurrence quotes this statement and responds that "no language in” Armstrong "stat[es] that the Court should 'first' (or ever, when examining the federal courts' equity power) concern itself with whether the party seeking injunctive relief alleged any federal substantive right.” Concurrence at 916. According to the Concurrence, Armstrong did not "ever say that the providers possessed or even asserted such a right.” Id. These are two separate issues, and Armstrong addresses both of them. See Armstrong,
A majority of the Justices in Armstrong at least assumed arguendo that the providers had a right to be reimbursed, but denied equitable relief notwithstanding this. Id. at 1387 (majority opinion). Here, however, the Reillys admit they have no such rights.
. We note the Court's careful distinction between the "source of [a] federal right[]” and the "creat[ion of] a cause of action.” Id. Again, these are separate issues. See, e.g., Franklin,
. The Court’s remarks regarding the Supremacy Clause only serves to underscore how odd it is that the Reillys and Safe Streets are suggesting that they have a lingering right in equity to enforce every federal statute if they suffer any injury, and unless Congress withdraws that so-called right. See id. In any event, the Reillys and Safe Streets have abandoned any pretense that they raise causes of action under the Supremacy Clause.
.In Armstrong, these principles animated the Court’s discussion of whether, notwithstanding the providers’ claims of a right to funds, Congress intended that "[t]heir relief must be sought initially through” a federal agency "rather than through the courts.” Id. at 1387. Here, the "statutory limitation[]” at issue, icL at 1385, is a threshold matter: “where the text and structure of a statute provide no indication that Congress intends to create new individual rights, there is no basis for a private suit” to enforce the statute. Gonzaga Univ. v. Doe,
. The Concurrence states that we “rel[y] largely on” Armstrong for our analysis of these preemption claims. Concurrence at 914. In fact, we discuss Armstrong in detail because the plaintiffs primarily rely on it to suggest that a multi-step inquiry is required to determine whether Congress foreclosed private citizens from obtaining relief if a State violates the CSA. As we explain in detail below, that inquiry is irrelevant here.
As for the analysis of the actual issue before us, we rely largely on the Constitution itself and over thirty Supreme Court cases (a sample), many of which Armstrong cites. They explain, in short, that "where the text and structure of [the CSA] provide[s] no indication that Congress intend[ed] to create new individual rights, there is no basis for a private suit,” Gonzaga,
. "[T]he question of who may enforce a statutory right is fundamentally different from the question of who may enforce a right that is protected by the Constitution.” Davis,
. We will discuss in detail below the separate issue of preemption-based defenses to criminal, civil, and regulatory enforcement actions. See infra note 19; see also Armstrong,
. To the extent that the lower federal courts occasionally countenanced such putative claims for injunctive relief in the guise of "rightfs] of action under the Supremacy Clause,” the Supreme Court explicitly rejected such theories when it held in Armstrong that the Supremacy Clause "does not create a cause of action.”
. See, e.g., Michigan v. Bay Mills Indian Cmty., — U.S. —,
. The Law Enforcement Officers also claim that Colorado’s actions violate several international agreements, though again without purporting to have any substantive rights under those accords. See Medellin v. Texas,
. Of course, a "court may not convict a criminal defendant of violating a state law that federal law prohibits. Similarly, a court may not hold a civil defendant liable under state law for conduct federal law requires.” Armstrong,
But a person's constitutional defenses to extant or “threatened enforce[ment]” actions, or to regulatory "expos[ure]” or “liability,” are all predicated on existing or “threatened action by [the] government,” not by private actors. MedImmune, Inc. v. Genentech, Inc.,
None of these doctrines even conceivably applies to the Colorado Sheriffs' claims. See Printz v. United States,
. The Concurrence states that it "need not address the jurisdictional issue” because, in
Concurrence Opinion
concurring:
I join the disposition and discussion of the RICO claims on pages 10-35 of the panel opinion. It is my hope, however, that the Supreme Court will one day cast aside the confusing and discredited notion of proximate cause. A much sounder approach to addressing the same issues can be found in the discussions of factual cause and scope of liability in Chapters 5 and 6 of Restatement (Third) of Torts: Liability for Physical and Emotional Harm (2010).
Although I also agree with the panel majority to affirm the denial of injunctive relief, my reasoning is different.
First, I explain why I cannot join the majority’s approach. The majority declares that even if state and local law is preempted by the Controlled Substances Act (CSA), the plaintiffs cannot seek injunctive relief against those laws under the federal courts’ equity powers because neither the CSA nor any other federal law bestows on them a substantive private right. See Maj. Op. at 898-905. To determine whether a statute creates a private right, the majority adopts the same test used by the Supreme Court in determining whether to recognize an implied cause of action under the statute and whether the statute creates a private right necessary for a cause of action under 42 U.S.C. § 1983. See id. at 902-03 (quoting Alexander v. Sandoval,
In my view, however, Armstrong provides no support for the majority’s requirement of a private right created by federal law. The Court’s opinion never states that there is such a requirement. And if Armstrong itself or any earlier Supreme Court precedent had imposed that requirement, both the Court’s opinion in Armstrong and Justice Sotomayor’s dissent would have been written very differently. The following discussion of Armstrong is lengthy, but I think it shows that the opinions in that case, rather than adopting a substantive-right requirement, demonstrate its absence.
In Armstrong the Supreme Court considered the mandate in § 30(A) of the Medicaid Act that each State’s Medicaid plan “provide such methods and procedures relating to ... the payment for ... care and services ... as may be necessary ... to assure that payments ... are sufficient to enlist enough providers so that care and services are available under the
The only remedy explicitly set forth in the Medicaid statute permits the Secretary of Health and Human Services to withhold Medicaid funds from the State. See 42 U.S.C. § 1396c. Providers seeking more generous payments could try to persuade the Secretary to exercise that authority, but the Secretary’s decision not to take such a step could be successfully challenged in court under the Administrative Procedure Act (APA) “only when the denial of enforcement [was] ‘arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.’ 5 U.S.C. § 706(2)(A).” Pharm. Research & Mfrs. of Am., v. Walsh,
Another possible remedy would be to bring a civil-rights claim against state officials. Under the federal civil-rights statute, state officials could be liable to the providers if they deprived the providers “of any rights, privileges, or immunities secured by the [federal] Constitution and laws.” 42 U.S.C. § 1983. Relief could be obtained through “an action at law, suit in equity, or other proper proceeding for redress.” Id. Actions at law under § 1983 typically provide an injured party with damages, so the providers could sue for payments that should have been made if federal law had been followed. But relief under § 1983 is available only if the injured party was deprived of some personal “right,” not just a benefit, conferred by federal law. See Gonzaga,
A similar remedy would be a suit under a private right of action implied from a particular statute. Damages would also be a potential remedy under such a cause of action. But this cause of action, like one under § 1983, is available only if “Congress intended to create a federal right.” Id. at 283,
None of these three potential remedies (a suit under the APA against the Secretary, a suit under § 1983, or a private right of action implied under the Medicaid Act) was at issue in Armstrong. Rather, the Idaho providers sought only to enjoin state officials to increase those rates prospectively. See
[EJquitable preemption actions differ from suits brought by plaintiffs invoking 12 U.S.C. § 1983 or an implied right of action to enforce a federal statute. Suits for redress designed to halt or prevent the constitutional violation rather than the award of money damages*916 seek traditional forms of relief. By contrast, a plaintiff invoking § 1983 or an implied statutory cause of action may seek a variety of remedies — including damages — from a potentially broad range of parties. Rather than simply pointing to background equitable principles authorizing the action that Congress presumably has not overridden, such a plaintiff must demonstrate specific congressional intent to create a statutory right to these remedies. For these reasons, the principles that we have developed to determine whether a statute creates an implied right of action, or is enforceable through § 1983, are not transferable to [this] context.
Armstrong,
Although the Supreme Court majority denied the providers’ claim, it did not quarrel -with this summary by Justice So-tomayor. Much of the Supreme Court’s opinion was devoted to rejecting the argument that the Constitution’s Supremacy Clause gave the providers a cause of action to enjoin the imposition of state law on the ground that it was contrary to federal law. See id. at 1383-84; see also Planned Parenthood v. Moser,
The panel opinion describes Armstrong somewhat differently. It states that the Supreme Court first “discerned what alleged substantive rights the plaintiffs were seeking to vindicate,” and observed that the health-care providers were seeking “to vindicate their averred federal property rights to ... funds [reimbursing them for habilitation services], rights allegedly bestowed on them by § 30(A).” Maj. Op. at 899. But I can find no language in Armstrong stating that the Court should “first” (or ever, when examining the federal courts’ equity power) concern itself with whether the party seeking injunctive relief alleged any federal substantive right. Nor did the opinion ever say that the providers possessed or even asserted such a right. According to the panel opinion, the Supreme Court was engaged in this “first step” in its analysis when it noted that the plaintiffs were health-care providers “who ‘claim[ed] that Idaho violates § 30(A)’ of Medicaid ‘by reimbursing' [them] at rates lower than § 30(A) permits.’ ” Id. (quoting Armstrong,
Indeed, Justice Scalia, whose opinion was the opinion for the majority of the Court on the issues I have already discussed, said just the opposite in a portion of his opinion joined by three other Justices (Justice Breyer, who otherwise joined Justice Scalia’s opinion, did not join this portion of the opinion). He pointed out that the health-care providers did not — and could not — claim that they had a statutorily created right:
The last possible source of a cause of action for [the providers, once the Supremacy Clause and equity had been rejected as possible sources,] is the Medicaid Act itself. They do not claim that, and rightly so. Section 30(A) lacks the sort of rights-creating language needed to imply a private right of action. Sandoval, [532 U.S.] at 286-287 [121 S.Ct. 1511 ]. It is phrased as a directive to the federal agency charged with approving state Medicaid plans, not as a conferral of the right to sue upon the beneficiaries of the State’s decision to participate in Medicaid. The Act says that the “Secretary shall approve any plan which fulfills the conditions specified in subsection (a),” the subsection that includes § 30(A). 42 U.S.C. § 1396a(b). We have held that such language “reveals no congressional intent to create a private right of action.” Sandoval, supra at 289,121 S.Ct. 1511 .
[The providers] do not claim that Wilder [v. Virginia Hospital Assn.,496 U.S. 498 ,110 S.Ct. 2510 ,110 L.Ed.2d 455 (1990) ] establishes precedent for a private cause of action in this case. They do not assert a § 1983 action, since our later opinions plainly repudiate the ready implication of a § 1983 action that Wilder exemplified. See Gonzaga Univ. v. Doe,536 U.S. 273 , 283 [122 S.Ct. 2268 ,153 L.Ed.2d 309 ] (2002) (expressly “rejecting the notion,” implicit in Wilder, “that our cases permit anything short of an unambiguously conferred right to support a cause of action brought under § 1983”).
No Justice expressed any doubt about these statements in Justice Scalia’s opinion. In particular, as previously noted, Justice Sotomayor’s dissent on behalf of four Justices (who would have granted injunc-tive relief) did not dispute that the providers lacked a statutorily created private right. Rather, assuming that this was common ground with the majority, it explicitly distinguished “equitable preemption actions from suits brought by plaintiffs invoking 42 U.S.C. § 1983 or an implied right of action to enforce a federal statute,” on the ground that relief under “background equitable principles” is proper even when Congress did not create a statutory right. Id. at 1392 (Sotomayor, J., dissenting).
Moreover, if, as the panel opinion asserts, Armstrong was following long-standing Supreme Court precedent requiring a
Perhaps the Supreme Court one day will impose the same requirement that the majority in this case would impose before a party can obtain equitable injunctive relief on the ground that a state law is preempted by federal law. But that is not the law today.
Nevertheless, I agree with the majority that the plaintiffs are not entitled to an injunction against the Colorado statute.
The plaintiffs and intervenors argue that the licensing schemes of Colorado and Pueblo County must be enjoined because their facilitation and promotion of sales of marijuana are preempted by the Controlled Substances Act (CSA). That argument must be examined, however, in light of the Constitution’s anticommandeering principle established in Printz v. United States,
The plaintiffs concede, as they must, that under the anticommandeering principle the federal government cannot compel a State to enforce the CSA, much less to pass laws prohibiting the same conduct prohibited by the CSA. What if a State
This is not to say, however, that whatever Colorado law is, it could not be preempted by the CSA. The anticomman-deering principle does not preclude the federal government from prohibiting States from enacting legislation. See NCAA v. Governor of N.J.,
Finally, the panel opinion addresses the court’s jurisdiction to hear the claims by the States of Nebraska and Oklahoma as intervenors. But because the merits of their claims fall with those of the plaintiffs, I need not address the jurisdictional issue. See Carolina Cas. Ins. Co. v. Pinnacol
. Because the opinions in Armstrong make it clear that current Supreme Court doctrine does not require the plaintiff to have a federally created substantive right in order to bring an equitable preemption action, I think it unnecessary to review the errors in the panel opinion's analysis of earlier Supreme Court opinions.
. I note that the amicus brief of Law Professors in Support of the Respondent State of Colorado and Affirmance suggests that the U.S. Department of Justice (DOJ) has the exclusive authority to initiate preemption challenges under the CSA. I express no view on the propriety of an injunction sought by the DOJ. That prospect seems remote, however, since the DOJ could almost certainly accomplish as much by notifying the State that it planned to commence criminal prosecutions of licensed dealers in Colorado unless the State modified its licensing regime or other practices. Cf. James M. Cole, Memorandum for all U.S. Att'ys, Guidance Regarding Marijuana Enforcement (August 29, 2013) (conditioning the DOJ’s nonenforcement policy on the "expectation that states and local governments ... will implement strong and effective regulatory and enforcement systems”).
