Defendants-appellants the Town of East Hampton (the “Town”), the Town Board of the Town of East Hampton (the “Town Board”) and Thomas Knobel, Nancy McCaffrey and Leonard Bernard, individually and as members of the Town Board (the “Town Board members” or “members”) appeal from a portion of an order entered in the United States District Court for the Eastern District of New York (Platt, J.) in an action brought against them and others by plaintiffs-ap-pellees Sound Aircraft Services, Inc. (“Sound Aircraft”), Shoreline Aviation, Inc. (“Shoreline”), and JIB, Inc. d/b/a Action Airlines (“Action”) (collectively, “Sound”). The action arises out of the award of a long-term hangar lease at the Town of East Hampton Airport (the “Airport”). The portion of the order appealed from rejects the defense of qualified' immunity raised in a motion under Federal Rule of Civil Procedure 12(b)(6) for failure to state claims. The Town Board members contend that the district court improperly considered the members’ intent as relevant to their qualified immunity defense. Sound argues that the Town Board members’ conduct violated clearly established rights of Sound to equal protection of the laws and to the benefit of the protection of an anti-discrimination provision of the Airport and Airway Improvement Act of 1982, 49 U.S.C. § 47107(a).
For the reasons that follow, we vacate the order and remand for further proceedings consistent with this opinion.
BACKGROUND
According to the allegations of the complaint, the East Hampton Airport is a commercial service airport owned by the Town, and its operations are governed by the Town Board. Plaintiff-appellee Sound Aircraft is a “fixed base operator” that provides a broad range of services to owners and operators of aircraft at the Airport, including aircraft ramp services, parking space rental, aircraft maintenance and repair and fuel sales. Plaintiffs-appel-lees Shoreline and Action are passenger carriers serving the Airport that exclusively utilize Sound as their fixed base operator.
Defendants Myers Aero Fuel, Inc. and Myers Aero Service Inc. (collectively, “Myers”) compete with Sound for fuel sales and other fixed base operator services at the Airport. Defendant Bernard Krupinski is a principal in Myers Aero Fuel. Defendant Aviation Resources, Inc. (“Aviation Resources”), also owned or controlled by Krupinski or members of his family, operates a passenger carrier service that competes with Shoreline and Action.
In early 1996, the Town solicited bids for a proposed long-term lease of hangar space at the Airport. Factors to be considered in awarding the bid included the amount of rent offered, the degree of proposed aeronautical usage of the hangar and the experience of the bidders. Shoreline and Sound joined in a bid (the “Shoreline/Sound Aircraft bid”), which proposed that Sound would provide fixed base operator services at the hangar to Shoreline and others. Aviation Resources also submitted a bid. Plaintiffs allege that, of the bids submitted to the Town, the Shoreline/Sound Aircraft bid offered the highest amount of rent, the most extensive use of the hangar and more experienced operators.
After the bid submission deadline passed, the Town Board allegedly permitted Aviation Resources to amend its bid to increase the offered amount of rent and to propose a broader array of operating services to mirror the Shoreline/Sound bid. Although Sound Aircraft and Shoreline were not offered an opportunity to amend their bid or respond to the revised Aviation Resources bid, the amended bid fell short of the Shoreline/Sound Aircraft bid in terms of the offered amount of rent, the bidders’ qualifications and experience and the anticipated aeronautical use of the han
In connection with Airport renovations and improvements funded under a grant from the Federal Aviation Administration (the “FAA”), the Town Board required a reallocation of Sound’s allotted commuter ramp space at the Airport. Under the provisional plan, the Town Board drastically reduced Sound’s ramp space and correspondingly increased Myers’ ramp space. The proposed permanent reallocation would similarly decrease Sound’s ramp space and increase that of Myers.
The complaint also alleges that at the direction of the Town and the Board, the Airport manager discriminated in favor of Myers and Aviation Resources by repeatedly permitting them to use official airport radio frequencies to advertise their business. Additionally, the manager advised one airline to use Myers’ fixed base services.
In November of 1997, Sound filed a complaint in the United States District Court for the Eastern District of New York asserting six claims against various defendants. Sound’s primary claim was based on 42 U.S.C. § 1983 and asserted violations of its rights to substantive due process, equal protection and the benefits of the Airport and Airway Improvement Act of 1982, 49 U.S.C. § 47107(a). This claim was predicated on allegations that the Town, the Town Board and the three Town Board members, who constitute the Republican majority of the Town Board, engaged in a course of conduct that was intended to advance the business interests of the defendants, to injure or destroy the plaintiffs’ ability to compete and to drive Sound out of business. Sound further claimed that this course of conduct was influenced personally and politically by Krupinski.
Sound alleged that the Town and the Town Board members acted on the basis of “political and personal favoritism” by (1) permitting Aviation Resources to amend its bid, (2) awarding the lease to Aviation Resources despite the superior bid of Shoreline/Sound Aircraft, (3) reallocating commuter ramp space to Sound’s detriment, (4) diverting business away from Sound based on the reallocated ramp space, and (5) encouraging the Airport manager, a cousin of Krupinski’s wife, to implement and enforce rules and policies at the Airport resulting in disparate treatment of plaintiffs.
The complaint also contained five ancillary state claims. In its second claim, Sound Aircraft asserted that by reallocating the commuter ramp space at the Airport, the Town and the Town Board breached Sound Aircraft’s lease of ramp space and space adjacent to the hangar. Sound Aircraft’s third claim sought recompense from Krupinski, Aviation Resources, and Myers Aero Fuel for their allegedly tortious role in interfering with Sound Aircraft’s lease of ramp space.
In their fourth claim, Sound Aircraft, Shoreline, and Action sued for breach of a contract between the FAA and the Town and the Town Board under the theory that the plaintiffs were third-party beneficiaries of the contract and that the Town and the Town Board breached the contract through their discriminatory conduct. The fifth claim alleged that Krupinski, Aviation Resources and Myers Aero Fuel had tor-tiously interfered with the contract between the Town, the Town Board and the FAA. The sixth and final count of the complaint asserted a claim on behalf of Sound Aircraft and Shoreline against Kru-pinski, Aviation Resources, and Myers Aero Fuel for the loss of the business opportunities occasioned by the award of the hangar lease to Aviation Resources.
In a Memorandum and Order dated September 10, 1998, the district court addressed two motions to dismiss pursuant
The court began by addressing the motions to dismiss the first count of the complaint for failure to state a claim. The court granted the motion to dismiss the § 1983 claim to the extent that it was grounded in a violation of substantive due process because Sound, as a bidder, had no protected property right in receiving the award of the contract. With regard to the other two asserted bases of § 1983 liability, however, the district court determined that a material issue of fact existed as to violations alleged pursuant to the Equal Protection Clause and 49 U.S.C. § 47107(a) and consequently declined to dismiss those claims.
As to the state law claims, the court ruled that Sound Aircraft had sufficiently stated a claim for breach of the lease. It determined that Sound Aircraft, Shoreline, and Action were not third-party beneficiaries of the contract between the Town, the Town Board and the FAA, however, and thus dismissed the fourth claim.
The only rulings germane to this appeal are the district court’s determinations on the issue of qualified immunity. After reciting the principle that government officials in them personal capacities are immune from suits for money damages where “their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known,” the court denied the motion to dismiss on the basis of qualified immunity. With respect to the viability of the qualified immunity defense to plaintiffs’ § 1983 Equal Protection theory, the court reasoned as follows:
In the instant case, plaintiffs contend that their constitutional right to equal protection was violated because the Town Defendants allowed the Private Defendants to amend their bid but did not allow plaintiffs the same opportunity and plaintiffs were not afforded an opportunity to be heard with respect to the amendment. An issue of fact exists with respect to Knobel’s, McCaffrey’s, and Bernard’s motivation and whether their actions were reasonable in light of Kru-pinski’s alleged political influence.
This appeal followed.
DISCUSSION
I. Qualified Immunity
“A district court’s denial of a claim of qualified immunity, to the extent that it turns on an issue of law, is an appealable ‘final decision’ within the meaning of 28 U.S.C. § 1291 notwithstanding the absence of a final judgment.” Mitchell v. Forsyth,
The sole issue presented for review is whether the Town Board members are entitled to qualified immunity on appellants’ § 1983 Equal Protection claim. The district court concluded that an issue of fact existed with regard to the motives of the Town Board members and whether their actions relating to the amended bid were reasonable in light of Krupinski’s alleged political influence. The Town Board members contend that the district court erroneously looked to the intent of the members in assessing their qualified immunity defense, asserting that the prop
Qualified immunity serves important interests in our political system. It protects government officials from liability they might otherwise incur due to unforeseeable changes in the law governing their conduct. See Crawford-El v. Britton,
Qualified immunity shields “‘government officials performing discretionary functions ... from liability for civil damages insofar as their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known.’ ” Id. at 1592 (quoting Harlow,
Because of this error in the district court’s disposition, we vacate the order of the district court to the extent that it rejects the defense of qualified immunity and remand for further proceedings. For the guidance of the district court, we comment briefly on the nature of the proceedings that the district court should undertake on remand.
II. Matters to be Considered on Remand
A. Order of Consideration
If the district court deems it appropriate, it may first “determine whether the plaintiff has alleged the deprivation of an actual constitutional right at all, and if so, proceed to determine whether that right was clearly established at the time of the alleged violation.” Wilson v. Layne, — U.S. —, —,
B. Equal Protection
Sound alleges a denial of equal protection actionable under § 1983 because the Town Board members treated Sound differently from a similarly-situated fixed base operator. Specifically, Sound argues that the Town Board’s award of the hangar lease, allocation of commuter ramp space and enforcement of Airport regulations were motivated by political favoritism toward Sound’s business competitors and thereby violated Sound’s rights to equal protection of the laws.
A state and its instrumentalities may not deny “any person within its jurisdiction the equal protection of the laws.” U.S. Const. Amend. XIV. At its core, equal protection prohibits the government from treating similarly situated persons differently. See City of Cleburne v. Cleburne Living Ctr.,
Although Sound alleges that it was treated differently from another fixed base operator, generalized allegations do not make out an equal protection claim. See Crawford-El,
Various factors relating to the Town Board members’ decisionmaking process should be considered in the equal protection inquiry. For example, the Town Board may have had discretion to award the contract to a party other than the lowest bidder. In Curtis Ambulance of Florida, Inc. v. Board of County Commissioners,
Similarly, it is conceivable that the Town Board may have made a reasonable assessment in awarding the contract to a party with whom it had prior dealings. In Buckley Construction, Inc. v. Shawnee Civic & Cultural Development Authority,
Alternatively, this case may be governed by our decision in Brady v. Colchester,
the Republican-controlled Town of Col-chester and interested town officials had conspired to deny them a building permit, a zoning permit, and the necessary certificates of occupancy to which they were legally entitled, solely in order to prevent them from renting the first floor of the subject property to the Democratically-controlled Borough of Colchester.
Id. at 209.
The district court in Brady granted summary judgment to defendants, dismissing all of the plaintiffs’ claims, but we reversed on the plaintiffs’ substantive due process and equal protection claims. See id. at 211-17. With regard to the equal protection claim, we noted that the plaintiffs had presented sufficient evidence to survive a summary judgment motion, “in light of the record evidence ... suggesting] that ... [defendant’s] actions may have been wholly unwarranted under the law.” Notably, plaintiffs in Brady specified the laws which had been improperly enforced against them, namely state building codes and town zoning regulations. Additionally, at the summary judgment stage, the record contained specific facts from which constitutional malice could be inferred. Id. at 208, 216-17.
Of course, in the current procedural stance and on the present record, we cannot ascertain whether plaintiffs’ allegations rise to the level of a denial of Equal Protection. Accordingly, we leave this question for the district court on remand.
C. 49 U.S.C. § 47107(a)
Sound alleges a violation of their right, pursuant to 49 U.S.C. § 47107(a), to be free from disparate treatment because the Town Board members discriminated against Sound during the bidding process. The district court concluded that the alleged violations, if proved, may constitute unfair' discrimination giving rise to a § 1983 claim.
Section 47107(a) of Title 49 prohibits certain forms of discrimination among competing fixed base operators and air carriers at airports receiving federal funds and requires recipients of federal funds to furnish contractual assurances that they will refrain from such discrimination. Although the statute mandates that the Secretary of Transportation may approve grants to federally funded airports only upon written assurance that the airport operator will comply with non-discrimination provisions, we have previously concluded that no private right of action existed under similar provisions. Western Air Lines v. Port Auth. of N.Y. & NJ,
D. Clearly Established Law
Only after determining “whether the plaintiff has alleged the deprivation of an actual constitutional right at all” should the district court “proceed to determine whether that right was clearly established at the time of the alleged violation.” Wilson,
CONCLUSION
The portion of the order of the district court denying defendants’ motion to dismiss on the basis of qualified immunity is vacated, and the case is remanded for further proceedings in accordance with this opinion.
