Victor K. Williams v. Jacob LewVictor K. Williams v. Jacob Lew
Case Information
*1 United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued February 17, 2016 Decided April 22, 2016
No. 15-5065 V ICTOR K. W ILLIAMS , A PPELLANT v.
J ACOB J. L EW , IN HIS OFFICIAL CAPACITY AS S ECRETARY OF
THE U.S. T REASURY D EPARTMENT AND U NITED S TATES D EPARTMENT OF THE T REASURY ,
A PPELLEES Appeal from the United States District Court for the District of Columbia (No. 1:14-cv-00183) Justin G. Florence argued the cause for appellant. On the briefs was Victor Williams , pro se. Douglas Hallward- Driemeier , Edward F. Roche , and Jonathan Ference-Burke entered appearances.
Molly R. Silfen , Attorney, U.S. Department of Justice, argued the cause for appellees. With her on the brief were Benjamin C. Mizer , Principal Deputy Assistant Attorney General, and Mark B. Stern , Attorney.
Before: T ATEL and G RIFFITH , Circuit Judges , and S ENTELLE , Senior Circuit Judge .
Opinion for the Court filed by Senior Circuit Judge S ENTELLE .
S ENTELLE ,
Senior Circuit Judge
: Appellant Victor
Williams, as a holder of U.S. public debt, challenges the
constitutionality of the Debt Limit Statute,
I. BACKGROUND
This case is an outgrowth of the continuing debate
surrounding the statutory limit on U.S. debt. The Debt Limit
Statute,
Williams holds various Treasury-issued public debt
instruments, including “savings bonds and Treasury bills,
notes, bonds, and TIPS [Treasury Inflation Indexed
Securities] of various durations (4-weeks, 13-weeks, 26-
weeks, 52-week[s], 3-years, 5-years, 7-years, [and] 30-
years).” J.A. 20 ¶ 39. Seeking a judicial solution to what he
*4
views as the perpetual “political conflict regarding the
inevitable need to raise the debt limit,” J.A. 6 ¶ 2, on February
7, 2014, Williams filed suit, challenging the constitutionality
of the Debt Limit Statute, against the U.S. Department of the
Treasury and the Secretary of the U.S. Treasury (collectively,
the “Treasury Department”). Before the Treasury Department
lodged a responsive pleading or Rule 12(b) motion, Williams
filed a first amended complaint as-of-right on March 5, 2014.
Cf.
Williams asserted three alleged constitutional infirmities
in the Debt Limit Statute before the district court. First, he
claimed that the statute violates the Public Debt Clause,
The validity of the public debt of the United States, authorized by law, including debts incurred for payment of pensions and bounties for services in suppressing insurrection or rebellion, shall not be questioned.
See J.A. 21 ¶ 42(A); see also Amended Complaint Filed on Appeal Pursuant to 28 U.S.C. 1653 ¶¶ 65(A), 66, Williams v. Lew , No. 15-5065 (D.C. Cir. May 14, 2015) [hereinafter Pr. Am. Compl.]. Second, Williams alleged a violation of the Fifth Amendment’s Due Process Clause based on the Treasury Department’s “arbitrary enforcement” of the Debt Limit Statute. J.A. 21 ¶ 42(A); see also Pr. Am. Compl. ¶¶ 65(A), 66. Finally, Williams made a separation-of-powers *5 argument that the Debt Limit Statute “prevent[s] the Executive from carrying out sworn Article II § 3 duties to ‘take Care that the Laws be faithfully executed.’” J.A. 21 ¶ 42(B); see also Pr. Am. Compl. ¶ 65(B).
The Treasury Department moved to dismiss Williams’s
first amended complaint under Rule 12(b)(1) for lack of
standing. Williams then moved under
II. ANALYSIS
Williams makes only a fleeting reference in his opening
brief, within a section ostensibly discussing his Public Debt
Clause claim,
to his separation-of-powers argument.
Appellant’s Br. 15-16 (stating that the debt limit “traps the
Executive in an arbitrary ‘trilemna’ [sic] . . . [which] works a
structural constitutional violation”). Because he fails to
develop that argument, or his standing to assert it, Williams
has therefore forfeited the claim.
See Abdullah v. Obama
,
A. A NY E RROR IN THE D ENIAL OF W ILLIAMS ’ S
M OTION T O A MEND W AS H ARMLESS
Under
Governing law permits litigants to amend their pleadings
“in . . . appellate courts” to cure “[d]efective allegations of
jurisdiction . . . .”
B. W ILLIAMS L ACKS A RTICLE III S TANDING
1. Standard of Review
We review the district court’s standing determinations de
novo.
See Food & Water Watch, Inc. v. Vilsack
, 808 F.3d
905, 913 (D.C. Cir. 2015). “To survive a motion to dismiss
for lack of standing, a complaint must state a plausible claim
that the plaintiff has suffered an injury in fact fairly traceable
to the actions of the defendant that is likely to be redressed by
a favorable decision on the merits.”
Humane Soc’y v. Vilsack
,
2. Williams Does Not Allege a Cognizable
Injury-In-Fact
The operative complaint before the district court was
Williams’s first amended complaint.
See
J.A. 2. This
complaint clearly fails to allege a plausible basis for standing.
Williams asserts only that he holds United States public debt
and “avers direct, individual, concrete, and certainly
impending harm from the unconstitutional debt ceiling
statute.” J.A. 20 ¶ 39;
cf. id.
at 5-6 ¶ 1 (noting the “threat[]
[of] Defendants’ arbitrary default on Plaintiff’s securities”);
id.
at 27 ¶ 50 (alleging “concrete and certainly impending
harm”). Because such conclusory statements and legal
conclusions are insufficient to state a plausible basis for
standing,
Iqbal
, 556 U.S. at 663, Williams can only avoid
dismissal if the Proposed Amended Complaint accompanying
his
In that complaint, Williams alleges past, current, and future harms from the Debt Limit Statute to his public debt holdings. Specifically, Williams discusses how the market devalued public debt as a result of the 2013 “default crisis,” including, for example, how “[o]n October 15, 2013, interest rates on commercial interbank loans were lower than interest rates on Treasury bills.” Pr. Am. Compl. ¶¶ 30-35. As to current harms, Williams claims that the Debt Limit Statute degrades the low-risk profile of his investments and devalues those investments. Id. ¶¶ 2, 21, 30, 41, 44. Such harms supposedly worsen when the Treasury Department resorts to “extraordinary measures” following breach of the debt ceiling. Id. ¶¶ 4, 45. Williams also alleges that he suffered and continues to suffer noneconomic harms in the form of “increasing[] worry and concern” about his public debt *9 investments. Id. ¶¶ 2, 21. Finally, Williams avers to “certainly-impending” future economic and noneconomic harms from the full enforcement of the Debt Limit Statute— i.e., an actual default on United States debts. Id. ¶¶ 4, 45, 50.
Williams’s allegations of past injury are irrelevant to the
standing inquiry in this case. We stated in
Arpaio v. Obama
that, where a plaintiff “seeks prospective declaratory and
injunctive relief, he must establish an ongoing or future injury
that is ‘certainly impending’; he may not rest on past injury.”
Unfortunately for Williams, his claims of future injuries
are entirely conjectural. It is indisputable that the United
States has never defaulted on its debt obligations.
See
Williams v. Lew
,
Thus, in order to satisfy Article III’s standing requirements, Williams must put forth plausible allegations of current and ongoing injuries. An analysis of the Proposed Amended Complaint shows that Williams fails to meet this standard. The crux of Williams’s argument is that the Debt Limit Statute degrades the risk profile of his public debt holdings and devalues those investments. To support this position, Williams cites in his briefs, but not in the complaint, a July 2015 report from the Government Accountability Office (“GAO”) discussing the market effects of “debt limit impasses.” See U.S. Gov’t Accountability Office, DEBT LIMIT: Market Response to Recent Impasses Underscores Need To Consider Alternative Approaches (2015) [hereinafter GAO Report], http://www.gao.gov/assets/680/671286.pdf. The GAO Report admittedly details numerous effects that the 2011 and 2013 debt limit impasses had on U.S. financial markets. For example, investors avoided “at-risk” Treasury securities; interest rates on “at-risk” securities rose; the liquidity of “at-risk” securities declined; investors substituted “at-risk” Treasury securities for other investments; and investors refused to accept “at-risk” Treasury securities as collateral. Id. at 12-28.
The Court may take judicial notice of the GAO Report.
See
Furthermore, Williams’s alleged noneconomic injuries do not provide a plausible basis for standing. For the reasons stated above, any current harm to Williams’s investments is speculative, and he fails to allege future harms that are certainly impending. The Court cannot exercise jurisdiction based on “worr[ies] and concern[s]” that lack a reasoned basis. Pr. Am. Compl. ¶ 2; see Clapper , 133 S. Ct. at 1151 (“[R]espondents cannot manufacture standing merely by inflicting harm on themselves based on their fears of hypothetical future harm that is not certainly impending.”).
3. Williams Separately Lacks Standing To
Pursue His Due Process Claims
Williams asserts a Fifth Amendment due process
violation based on the Treasury Department’s “arbitrary”
enforcement of the Debt Limit Statute. Pr. Am. Compl. ¶¶ 5,
11, 21, 46. In particular, Williams alleges that the Treasury
Department cannot prioritize payments to holders of public
debt in the event of default,
id.
¶ 5, and it “has no rational
method to protect Treasury bondholders, insure Certificate of
Indebtedness liquidity, or honor promises to repay the TSP G
Fund in the certain event of default,”
id.
¶ 46. This claim
turns entirely on hypothetical future injury from the arbitrary
prioritization of Treasury funds and therefore fails plausibly
to allege a cognizable injury-in-fact.
Lujan
,
4. The Court Need Not Reach the Treasury Department’s Remaining Arguments The Treasury Department also argues that we should dismiss Williams’s claims as “generalized grievances” that “do not state an Article III case or controversy.” Lujan , 504 U.S. at 574. We need not parse the line between a “generalized grievance” and a “concrete, though widely shared” injury-in-fact. FEC v. Akins , 524 U.S. 11, 23-24 (1998). Williams fails to allege plausible facts to establish the “irreducible constitutional minimum of standing,” Lujan , 504 U.S. at 560, thereby obviating the generalized grievance issue. For the same reason, we find it unnecessary to revisit our prior cases discussing the availability, or lack thereof, of “bondholder standing.” See Reuss v. Balles , 584 F.2d 461, 469-70 n.29 (D.C. Cir. 1978); cf. Riegle v. FOMC , 656 F.2d 873, 876 (D.C. Cir. 1981); Comm. for Monetary Reform v. Bd. of Govs. of Fed. Reserve Sys. , 766 F.2d 538, 540 (D.C. Cir. 1985).
We therefore affirm the district court’s dismissal of Williams’s claims for lack of standing.
C. W ILLIAMS ’ S F ACIAL C HALLENGE TO THE D EBT L IMIT S TATUTE D OES N OT P ROVIDE AN I NDEPENDENT B ASIS FOR S TANDING In the alternative, Williams cryptically alleges that his facial challenge to the Debt Limit Statute is sufficient to confer Article III standing. Williams’s argument is itself facially suspect, and it is also unavailing under the Supreme Court’s and our case law.
As the Supreme Court stated explicitly in
Lujan
, the three
elements of standing—i.e., injury-in-fact, traceability, and
*14
redressability—encompass “the irreducible constitutional
minimum” under Article III. 504 U.S. at 560. Absent any
one of these requirements, federal courts lack jurisdiction to
adjudicate a plaintiff’s claims. As the Court stated in
Bond v.
United States
,
Because, as demonstrated above, Williams fails to allege
plausible facts to establish the “irreducible constitutional
minimum” requirements for Article III standing under
Lujan
,
We recognize that the contours of Article III standing
with respect to facial constitutional challenges may be
imprecise.
Compare Los Angeles Police Dep’t v. United
Reporting Pub. Corp.
,
But we know of no case stating that a facial challenge to
the constitutionality of a statute itself suffices to establish
standing, nor do we adopt such a holding. Unless there is an
actual Article III “Case[]” or “Controvers[y]” before us, we
lack jurisdiction.
See
III. CONCLUSION
We express no opinion on the merits of Williams’s
constitutional claims. For the reasons stated herein, the Court
affirms both the district court’s order denying Williams’s
motion to amend his complaint and the order dismissing
Williams’s claims for lack of standing. Williams’s motion
under
So ordered.