Vulcan Materials Co. v. City of TehuacanaVulcan Materials Co. v. City of Tehuacana
Plаintiff-Appellant Vulcan Materials Company (“Vulcan”), a New Jersey corporation with its principal place of business in Birmingham, Alabama, brought this action against Defendant-Appellee the City of Tehuacana (“the City”), a municipality in Limestone County, Texas, alleging that a 1998 ordinance passed by the City Council forbidding certain quarrying or mining activities violates Vulcan’s rights under both the United States and Texas Constitutions. Vulcan appeals the district court’s refusal to exercise jurisdiction over its state constitutional and federal declaratory judgment claims as well as the dismissal of its federal substantive due process and equal protection claims. We affirm in part and reverse and remand in part.
Facts and Proceedings Below,
In October 1997, Vulcan leased the single limestone quarry that is the subject of this action. The quarry consists of mining areas, reserves, and processing facilities. Part of the quarry lies within the Tehuaca-na city limits. Vulcan claims it made a substantial investment in acquiring the right to operate the quarry, reasonably expecting to mine the entire quarry, including that part within the City limits. On December 8, 1998, the City adopted an ordinance 1 that prohibits Vulcan from conducting certain mining or quarrying operations within the City limits.
On December 15, 1998, Vulcan brought this action against the City, seeking a declaratory judgment pursuant to
The City filed a motion to dismiss Vulcan’s complaint for want of subject matter jurisdiction and for failure to state a claim upon which relief can be granted under
Vulcan now appeals the district court’s refusal to exercise jurisdiction over its state constitutional and federal declaratory judgment claims as well as the dismissal of its federal substantive due process and equal protection claims. Vulcan does not aрpeal the dismissal of its federal takings claim or its federal procedural due process claim.
Discussion
I. Inverse-Condemnation
The district court refused to exercise diversity jurisdiction over Vulcan’s Texas law inverse-condemnation claim, reasoning that our decision in
Samaad v. City of
Dallas,
The
Samaad
plaintiffs claimed that grand prix automobile racing in a public park owned by the City of Dallas was so disruptive that it еffected a taking of their property without just compensation.
Id.
at 928. The
Samaad
district court granted defendants’ motion for summary judgment as to the federal takings claim and dismissed the state law inverse-condemnation claim, asserted under
The Supreme Court established in Williamson
County Reg’l Planning Comm’n v. Hamilton Bank of Johnson City,
We do not think
Samaad
prevents district courts from exercising diversity jurisdiction over state takings claims.
Samaad
was not a diversity case.
Samaad
apparently involved an appeal only of the district court’s disposition of the federal takings claim. In contrast, Vulcan appeals only the dismissal of its state law inverse-condemnation claim.
Samaad
only stands for the proposition that the
Williamson County
ripeness requirement for a federal takings claim is not satisfied by simultaneously bringing a state law takings claim. Vulcan’s position on appeal is not that it is entitled to ripen a federal takings claim by simultaneously bringing a state law takings claim. It does not appeal the dismissal of the federal takings claim. Vulcan only asks that the same rules of diversity jurisdiction apply to its state law inverse-condemnatiоn claim as apply to any other state law claim a plaintiff might bring in
This holding is consistent with
Searl v. School-Dist. No. 2, in Lake Co., Colorado,
The City argues that to allow a district court to hear a state takings claim in diversity is to risk the danger of a district court reviewing its own decision regarding the state claim to determine if
that
decision denied the plaintiff just compensation. We think that this would almost never be a problem. Assume that, to
prevent res ju-dicata
from impairing its rights, a plaintiff in diversity pleads both state and federal law takings claims. The district court, properly following
Samaad,
dismisses the federal takings claim. Then, following our holding today, proceeds to try the state law takings claim. If the plaintiff wins, no difficulty is presented because, under the doctrine of collateral estoppel, the issue of damages may not be relitigated. If the state remedy is inadequate,
Williamson County
and
Samaad
allow the plaintiff to bring the fеderal law takings claim without first bringing the state claim. If the plaintiff loses, the doctrine of collateral estoppel prevents relitigation of any issues determined in the first proceeding. It would only be in the rarest of cases wherein the denial of compensation was due to some issue peculiar to state law that there could ever be a second trial.
3
This faint possibil
Finally, it аppears that under Texas law Vulcan’s inverse-condemnation claim is ripe for adjudication.
Trail Enterprises, Inc. v. City of Houston,
II. Federal Substantive Due Process
Vulcan’s complaint alleges the City violated its rights under the Due Process Clause of the Fourteenth Amendment in that the 1998 ordinance is arbitrary and unreasonable and that the means employed by the ordinance lack a real and substantial relation to the goal the City seeks to achieve. The district court dismissed this claim pursuant to
Vulcan argues that its pleadings properly allege a due process violation under
Shelton v. City of College Station,
Finally, Vulcan contends that it is entitled to discovery to uncover evidence revealing the City’s motivation for enacting the ordinance. Essential to this position is thаt the enactment of the ordinance be reviewed as an adjudicative, rather than a legislative, decision.
See Shelton v. City of College Station,
III. Federal Equal Protection
Vulcan’s complaint also alleges that, in enacting the ordinance, the City arbitrarily singled out its activities in violation of the Equal Protection Clause of the Fourteenth Amendment. The district court dismissed this claim pursuant to
It is well-established that, as a general matter, the Equal Protection Clause of the Fourteenth Amendment requires that all similarly situated persons
Vulcan is correct that the ordinance only prohibits the utilization of heavy equipment in connection with quarrying or mining. However, we believe a more reasonable characterization of the ordinance is that it bans only that quarrying involving the use of blasting, explosives, surface mining, or heavy equipment. The focus of the ordinance is to proscribe only those aspects of quarrying that are likely to implicate the public’s health, safety, morals, or general welfare. The ordinance applies to all actors within the city limits, not just Vulcan. That everyone is forbidden to engage in certain activities is not the same as treating similarly situated actors differently. Even if the ordinance could be construed as
classifying
between those who use heavy equipment for quarrying and those who use heavy equipment for other purposes, Vulcan’s complaint still would not have stated an equal protection claim. It is well-settled that “as long as a classification is rationally related to a legitimate state objective, a legislature is allowed to attack a perceived problem piecemeal.”
Jackson Court Condominiums,
IV. Remaining Claims
After dismissing most of Vulcan’s federal claims and its state law inverse-condemnation claim, the district court summarily dismissed Vulcan’s 1981 ordinance declaratory judgment claim as well as all of Vulcan’s remaining state law claims. The only stated reason for these dismissals was that the claims involved “a determination of state law and/or causes of action which the Court declines to review as there are no remaining federal claims.” It is not clear if the district court was overlooking the section 1332 allegatiоns and the obvious diversity of the parties or if it believed that its refusal to hear Vulcan’s claims was somehow justified by reasons not appearing in the opinion.
A. State Law Claims
The district court abused its discretion when it dismissed Vulcan’s state law substantive due process, procedural due process, and equal protection claims merely because they involved state law causes of action. The purpose of
“(1) Pullman-type abstention, to avoid decision of a federal constitutional question where the case may be disposed of on questions of state law; (2) Burford-type abstention, to avoid needless conflict with the administration by a state of its own affairs; (3) аbstention to leave to the states the resolution of unsettled questions of state law; and (4) abstention to avoid duplicative litigation, now frequently referred to as Colorado River-type abstention.”
Wright, Miller
&
Cooper,
Federal Practice and Procedure: Jurisdiction 2d
§ 4241. We elaborated on the
Burford
and
Colorado River
abstention doctrines in
St. Paul Ins. Co. v. Trejo,
B. 1981 Ordinance Declai'atory Judgment Claim
court should not dismiss ... [a] declaratory judgment suit simply because it does not involve a question of federal law.”
Id.
at 591 n. 10. This appears to be exactly what the court below did.
Trejo
confirmed and restated the test for the discretionary dismissal of declaratory judgment actions set forth in
Travelers Ins. Co. v. Louisiana Farm, Bureau Fed’n,
“[1)] whether there is a pending state action in which all of the matters in controversy may be fully litigated, 2) whether the plaintiff filed suit in anticipation of a lawsuit filed by the defendant, 3) whether the plaintiff engaged in forum shopping in bringing the suit, 4) whether possible inequities in allowing the declaratory plaintiff to gain precedence in time or to change forums exist, 5) whether the federal court is a convenient forum for the partiеs and witnesses, ... 6) whether retaining the lawsuit in federal court would serve the purposes of judicial economy, ... [and 7)] whether the federal court is being called on to construe a state judicial decree involving the same parties and entered by the court before whom the parallel state suit between the same parties is pending.”
Trejo,
We AFFIRM the district court’s dismissal of Vulcan’s federal substantive due process and federal equal protection claims for failure to state a claim upon which relief can be granted under Federal Rule of Procedure 12(b)(6). 8 We VACATE the district court’s dismissal of Vulcan’s state constitutional claims and its federal declaratory judgment claim regarding the 1981 ordinance. We REMAND for proceedings consistent with this opinion.
AFFIRMED in part; REVERSED and REMANDED in part.
Notes
. Ordinance No. 12898 states, in relevant part:
Section I. It shall be unlawful for any person, company, entity, or corporation to engage in the following activities within the city limits of the City of Tehuacana, Limestone County, Texas:
A. the quarrying or mining of rock utilizing blasting operations or use of explosives, or surface mining;
B. the use of explosives for the purpose of blasting rock, or in connection with mining or quarrying operations;
C. the use of heavy equipment in connection with quarrying or mining operations within the city limits of Tehuaca-na, Limestone County, Texas;
D. the use of explosives for any commercial or industrial activity or for any other reason except the use of fireworks in connection with celebrations as may be allowed by law from time to time.
. In
Ankenbrandt v. Richards,
In contrast, there is no long tradition of excepting state takings claims from diversity jurisdiction. Thus, no similar argument can be made that Congress intended to exclude such causes of action when it enacted
. We are not unmindful of our dictum in
Samaad
that "[t]he local entity from which a plaintiff seeks recovery should be the one to deny just compensation.”
Samaad,
. We do not deny the theoretical abstract possibility that a state law takings claim, though "ripe” for state law purposes, might conceivably nevertheless actually be so unripe, speculative and contingent as not to present an Article III case or сontroversy. Such a case would presumably not be within the district court’s jurisdiction, under either
. The plaintiffs alleged that, after declaring a financial emergency, the defendant Board of Trustees “terminated the contracts of eighty-eight employees without regard to any uniform policy.” Russell, 736 F.2d at 288.
. Vulcan does not allege, or allege any facts tending to suggest, any particular motive on the part of the City Council. There is no allegation of any facially unconstitutional motive.
We also note the cases Vulcan cites for the proposition that a motive inquiry should be part of rational basis review do not concern legislative decisions, but rather administrative actions enforcing existing laws against a specific landowner.
See Acierno v. New Castle County,
. We also note that Vulcan appears to (properly) concede that the purposes listed in the preamble of the ordinance (avoiding a detrimental impact on the lives of citizens from the vibration & noise of blasting, noise from heavy equipment, injury or death from overfly of rock, etc.) are legitimate and consistent with the public's health, safety, morals, or general welfare. But Vulcan asserts that, after recognizing the legitimacy of the City's goals, the district court failed to consider the extent to which the 1998 ordinance advances them. Notwithstanding the district court’s silence on this issue, we think it is sufficiently obvious that the ordinance’s prohibition of mining or quarrying activities involving blasting, explosives, surface mining, or the use of heavy equipment within the City limits is rationally related to the City's stated objectives. As discussed in Part II, supra, Vulcan failed to plead any facts that tend to diminish the obviousness of this rational relationship.
. We likewise affirm the dismissal of Vulcan's federal takings claim and its federal procedural due process claim, without reaching the merits of the dismissal of those claims, because Vulcan has not on this appeal challenged the dismissal of either of those claims.