Taylor v. Cohen
Opinion of the Court
This appeal focuses on procedures for the termination of federal financial assistance under Title VI of the Civil Rights Act of 1964. It questions an injunction prohibiting the Department of Health, Education and Welfare from requiring a school district to assign pupils under any plan other than freedom of choice
I.
Richland County School District No. 1, which encompasses Columbia, South Carolina, and environs, receives approximately $2,000,000 of each year’s funds from the federal government. It operates ten high schools, nine junior high schools, and forty-four elementary schools. Its 40,000 pupils are nearly equally divided between white and Negro. In the fall of 1964, twenty-two Negro pupils were admitted to formerly white schools. Prior to that time, the district had a completely segregated dual system. In 1965 the school board adopted a freedom of choice desegregation plan, which was approved by HEW. In the 1967-68 school year, 1,927 Negro pupils attended formerly white schools, and 3,135 Negro pupils were expected to enroll in them for the 1968-69 term.
In September 1967, officials of HEW advised the school board that its freedom of choice plan was not effective in achieving desegregation and that a new plan was necessary. During the following months the school board and HEW attempted, without success, to agree on a new plan. On April 22, 1968, HEW commenced administrative proceedings for the termination of federal funds and deferred consideration of funds for new programs. After further conferences, HEW suggested a zoning and pairing plan which the school board finally accepted. Later, however, severe public criticism of the new plan caused the board to reject provisions calling for the pairing of four schools. With this exception and other minor modifications, the district prepared to operate under the new plan in 1968-69.
In August 1968, parents of children attending some of the schools instituted this class action against the school board, the Secretary of HEW, and the Commissioner of Education. The complaint, invoking federal question jurisdiction [28 U.S.C. § 1331], alleged that the dis
II.
Section 601 of Title VI of the Civil Rights Act of 1964 [42 U.S.C. § 2000d] provides:
“No person in the United States shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance.”
In order to secure rights found in § 601, while at the same time protecting state agencies from unwarranted federal intrusion, Congress enacted a comprehensive plan of enforcement. Section 602 of the Act [42 U.S.C. § 2000d-1] provides that compliance with § 601 may be effected by the termination of federal assistance.
The plaintiffs assert that the injunctive relief they seek can be obtained under the review provisions of the Administrative Procedure Act, 5 U.S.C. §§ 701-706. In Gardner v. State of Ala. for and in Behalf of Dept. of Pensions & Security, 385 F.2d 804 (5th Cir. 1967), cert. denied, 389 U.S. 1046, 88 S.Ct. 773, 19 L.Ed.2d 839 (1968), the relationship between the review under § 603
Similarly, equity affords no basis for restraining HEW’s intermediate actions. The exceptional nature of prior restraint is described in Wolf Corp. v. SEC, 115 U.S.App.D.C. 75, 317 F.2d 139, 142 (1963):
“Judicial power to impose prior restraint is not called an extraordinary remedy without reason. Even as between private parties the ordinary remedy is legal action after injury. Prior restraint is granted only upon a strong showing and is subject to definite and well established limitations. Prior restraint against governmental action, regular on its face and under color of authority, is even more cautiously exerted. Still higher hurdies stand in the way of prior restraint against the processes of a regulatory body exercising quasi-judicial powers which can be judicially reviewed as a matter of right before they become final. In this third category the jurisdiction of the regulatory or administrative body is exercised within the framework of a statutory scheme in which it acts as an arm of Congress; moreover it has established patterns of procedure and acts in a context where courts have long acknowledged a considerable deference to the specialized experience and competence of such a body. To exert judicial power to stop processes of this third category, which can always be judicially reviewed when the story is fully told and recorded, is an extraordinary step in the usual as well as the legally artful sense of that word. * * *
“* * * [S]uch relief is to be very sparingly applied and is limited to cases where on its face the contemplated hearing or other administrative process, if consummated, would be set aside on review on procedural grounds.”
The agency action set aside in Leedom v. Kyne, 358 U.S. 184, 79 S.Ct. 180, 3 L.Ed.
We conclude, therefore, that neither a statutory nor an equitable basis exists for enjoining HEW’s conduct at this stage of the proceedings. Judicial review must await the outcome of the administrative hearing.
III.
As an additional ground for the maintenance of this action, the plaintiffs urge that the injunction they seek is not directed against HEW, but only against the officials of the department who have exceeded their statutory power. By this argument they seek to lift the bar of sovereign immunity. In determining whether the officials’ acts were ultra vires, we apply the rule of Larson v. Domestic & Foreign Commerce Corp., 337 U.S. 682, 695, 69 S.Ct. 1457, 1464, 93 L.Ed. 1628 (1949): “[I]f the actions of an officer do not conflict with the terms of his valid statutory authority, then they are the actions of the sovereign * * *."
The main thrust of the plaintiffs’ argument is that HEW officials exceeded their statutory authority by requiring the establishment of a unitary school system as a standard of qualification for federal funds. They contend that § 601 of the Act does not require abolition of a dual school system and that, therefore, it is not coextensive with the equal protection clause of the Fourteenth Amendment. We do not agree with this reasoning. In § 601 Congress sought to ban wrongs that result from the denial of the equal protection of the laws. Nothing in the Civil Rights Act of 1964 or its legislative history shows that Congress intended to appropriate money for any program that violates the constitutional rights of a citizen of the United States.
IV.
HEW urges as an alternative defense the plaintiffs’ lack of standing. Standing is one of “the most amorphous [concepts] in the entire domain of public laws.”
Green Street Ass’n v. Daley, 373 F.2d 1 (7th Cir.), cert. denied, 387 U.S. 932, 87 S.Ct. 2054, 18 L.Ed.2d 995 (1967), involved the converse of the situation here. The Green Street Association, made up of individual homeowners and tenants, sought to enjoin the payment of federal money on the ground, among others, that the local agency was using the money in a discriminatory manner in violation of § 601 of the Act. In answer to this complaint, the court said:
“As to the federal defendants, the plaintiffs’ argument is erroneous in that it ignores the remaining sections of Title VI of the act. Sections 602 and 603 of the act, 42 U.S.C. §§ 2000*283 d-1, 2000d-2, establish the procedure to be followed by federal officials in enforcing the nondiscrimination requirements of section 601. Only after the appropriate federal agency has followed this procedure is judicial review permitted by section 603. If an individual suit for an injunction against the federal officials were permitted, the administrative procedure would be bypassed. We do not think that section 601 was intended to permit the termination of federal participation in a given program by this means.” 373 F.2d at 8.
Green Street and this case illustrate the tug of war that may arise over the grant or denial of federal financial assistance to the multitude of public programs to which § 601 applies. The merit in confining litigation to the public agencies was recognized in Johnson v. Chesapeake & Ohio Ry., 188 F.2d 458 (4th Cir.), cert. denied, 342 U.S. 833, 72 S.Ct. 43, 96 L. Ed. 630 (1951), where individuals sought to enjoin the abandonment of a ferry. There, after noting that the issue of abandonment had been committed by law to regulatory commissions subject to judicial review, the court denied the individuals standing and said:
“It [litigation by private interests] also would put upon the district courts the task of drawing fine lines in determining when a private claim is so special that it may be set apart from the general public interest and give the claimant power to litigate a public controversy. These inquiries are so harassing and unprofitable as to be avoided, unless Congress has explicitly cast the duty upon the courts.” 188 F.2d at 459.11
Finally, although this appeal was taken from an interlocutory injunction, this court has authority to decide the case, Myers v. Bethleham Shipbldg. Corp., 303 U.S. 41, 52, 58 S.Ct. 459, 82 L.Ed. 638 (1938); Smith v. Vulcan Iron Works, 165 U.S. 518, 17 S.Ct. 407, 41 L.Ed. 810 (1897); Wright, Federal Courts § 102 (1963), and dismiss it. It is clear that the exclusive procedure for judicial review prescribed by § 603, the defense of sovereign immunity, and the plaintiff’s lack of standing require dismissal of this action. Dismissal, of course, is without prejudice to the school board’s rights to pursue its administrative remedies and seek judicial review.
The order of the district court is vacated, and this action is remanded with the direction that it be dismissed.
. The freedom of choice plan allows pupils to choose annually among schools offering the grades for which they are qualified, subject to certain restrictions clue to overcrowding.
. Section 602 [42 U.S.C. § 2000d-1] directs each federal department to issue regulations to effectuate the provisions of § 601 and makes failure to comply with these regulations a ground for terminating federal assistance. Pertinent HEW regulations are found in 45 C.F.R. Part 80. The validity of these regulations is not at issue.
. Section 603 of the Civil Rights Act of 1964 [42 U.S.C. § 2000d-2] provides:
“Any department or agency action taken pursuant to section 2000d-1 of this title shall be subject to such judicial review as may otherwise be provided by law for similar action taken by such department or agency on other grounds. In the case of action, not otherwise subject to judicial review, terminating or refusing to grant or to continue financial assistance upon a finding of failure to comply with any requirement imposed pursuant to section 2000d-1 of this title, any person aggrieved (including any State or political subdivision thereof and any agency of either) may obtain judicial review of such action in accordance with section 1009 of Title 5 [now 5 U.S.C. §§ 701-706], and such action shall not be deemed committed to unreviewable agency discretion within the meaning of that section.”
. Even if review were allowed under the Administrative Procedure Act, it, too, would be premature. 5 U.S.C. §§ 551(13) and 704.
. Limitations on the authority to defer applications are set forth in 42 U.S.C. § 2000d-5:
“The Commissioner of Education shall not defer action or order action deferred on any application by a local educational agency for funds authorized to be appropriated by this Act, by the Elementary and Secondary Education Act of 1965, by the Act of September 30, 1950 (Public Law 874, Eighty-first Congress), by the Act of September 23, 1950 (Public Law 815, Eighty-first Congress), or by the Cooperative Research Act, on the basis of alleged noncompliance with the provisions of this sub-chapter for more than sixty days after notice is given to such local agency of such deferral unless such local agency is given the opportunity for a hearing as provided in section 2000d-1 of this title, such hearing to be held within sixty days of such notice, unless the time for such hearing is extended by mutual consent of such local agency and the Commissioner, and such deferral shall not continue for more than thirty days after the close of any such hearing unless there has been an express finding on the record of such hearing that such local educational agency has failed to comply with the provisions of this subchapter.
There has been no showing of a failure on the part of HEW to comply with this section. A timely hearing was scheduled for June 7, 1968. It was continued by stipulation.
Aside from the limitations contained in 42 U.S.C. § 2000d-5, here HEW’s authority to defer applications for new programs raises no issues different from its authority to terminate federal aid. For this reason, it is unnecessary to treat authority to defer separately.
. Larson also interdicts unconstitutional action by an official. No claim of this kind is made here.
. Proponents of the Civil Rights Act of 1964 held the view that “[T]itle VI is simply designed to insure that Federal funds are spent in accordance with the Constitution * * * .” 110 Cong.Rec. 6544 (1964) (remarks of Senator Humphrey) ; see 110 Cong.Rec. 7057, 7062, 13333 (1964) (remarks of Senators Ribicoff and Pastore).
. In New Kent 85% of the Negro pupils attended Negro schools. HEW’s evaluation of Richland’s freedom of choice plan was based on enrollment during the 1966-
. Flast v. Cohen, 392 U.S. 83, 98, 88 S.Ct. 1942, 1952, 20 L.Ed.2d 947 (1968) (quoting Prof. Paul A. Freund).
. The board, under circumstances not present in this case, could sue to prevent the withholding of funds to which it is entitled. See Wolf Corp. v. SEC, 115 U.S.App.D.C. 75, 317 F.2d 139, 143 (1963) (dictum). And nothing we say about the parents’ lack of standing is intended to foreclose their role as intervenors or amicus curiae in judicial review of HEW’s administrative action.
. Accord, Johnson v. Redevelopment Agency of Oakland, 317 F.2d 872, 874 (9th Cir.), cert. denied, 375 U.S. 915, 84 S.Ct. 216, 11 L.Ed.2d 154 (1963).
Reference
- Full Case Name
- Edmund S. TAYLOR, James H. Sikes, Ed Carter, and E. A. Hall, for themselves individually, and as parents and guardians of children attending the public schools in Richland County School District Number One, and for all other persons similarly situated v. Wilbur COHEN, as Secretary of the Department of Health, Education and Welfare and Harold Howe II, as United States Commissioner of Education
- Cited By
- 31 cases
- Status
- Published