Louisiana Power & Light Co. v. City of Thibodaux
Louisiana Power & Light Co. v. City of Thibodaux
Opinion of the Court
delivered the opinion of the Court.
The City of Thibodaux, Louisiana, filed a petition for expropriation in one of the Louisiana District Courts, asserting a taking of the land, buildings, and equipment of petitioner Power and Light Company. Petitioner, a Florida corporation, removed the case to the United States District Court for the Eastern District.of Louisiana on the basis of diversity of citizenship. After a .pre-trial conference in which various aspects of the case were dis
In connection with the first decision in which a closely divided Court considered and upheld jurisdiction over an eminent domain proceeding removed to the federal courts on the basis of diversity of citizenship, Madisonville Traction Co. v. St. Bernard Mining Co., 196 U. S. 239, 257, Mr. Justice Holmes made the following observation:
“The fundamental fact is that eminent domain is a prerogative of the State, which on the one hand may be exercised in any way that the State thinks fit, and on the other may not be exercised except by an authority which the State confers.”
While this was said in the dissenting opinion, the distinction between expropriation proceedings and ordinary diversity cases, though found insufficient to restrict diversity jurisdiction, remains a relevant and important consideration in the appropriate judicial administration of such actions in the federal courts.
“Had we or they [the lower court judges] no choice in the matter but to decide what is the law of the state, we should hésitatVlong before rejecting their forecast of Texas law. But no matter how seasoned the judgment of the district court may be, it cannot escape being a forecast rather than a determination.”
On the other hand, we have held that the mere difficulty of state law does not justify a federal court’s relinquishment of jurisdiction in favor of state court action. Meredith v. Winter Haven, 320 U. S. 228, 236.
These prior cases have been cases in equity, but they did not apply a technical rule of equity procedure. They reflect a deeper policy derived from our federalism. We have drawn upon the judicial discretion of the chancellor to decline jurisdiction over a part or all of a case brought before him. See Railroad Comm’n v. Pullman Co., supra. Although an eminent domain proceeding is deemqd for certain purposes of legal classification a “suit at common, law,” Kohl v. United States, 91 U. S. 367, 375-376, it is of a special and peculiar nature. Mr. Justice Holmes set forth one differentiating characteristic of eminent domain: it is intimately involved with sovereign prerogative. And when, as here, a city’s power to condemn is challenged, a further aspect of sovereignty is introduced. A determination of the nature and extent of delegation of the power of eminent domain concerns the apportionment of governmental powers between City and State. The issues normally turn on legislation with much local variation interpreted in local settings. The considerations that prevailed in conventional equity suits for avoiding the hazards of serious disruption by federal courts of state government or needless friction between state and federal authorities are similarly appropriate in a state eminent domain proceeding brought in, or removed to, a federal court.
It would imply an unworthy conception of the federal judiciary to give weight to the suggestion that acknowledgment of this power will tempt some otiose or timid judge to shuffle off responsibility. “Such apprehension implies a lack of discipline and of disinterestedness on the part of the lower courts, hardly a worthy or wise basis for fashioning rules of procedure.” Kerotest Mfg. Co. v. C-O-Two Fire Equipment Co., 342 U. S. 180, 185. Procedures for effective judicial administration presuppose a .federal judiciary composed of judges well-equipped and of sturdy character in whom may safely be vested, as is already, a wide range of. judicial discretion, subject to appropriate review on appeal.
Caught between the language of an old but uninterpreted statute and the pronouncement of the Attorney General of Louisiana, the district judge determined to solve his conscientious perplexity by directing utilization of the legal resources of Louisiana for a prompt ascertainment of meaning through the only tribunal whose interpretation could be controlling — the Supreme Court of Louisiana. The District Court was thus exercising a fair and well-considered judicial discretion in staying proceedings pending the institution of a declaratory judgment action and subsequent decision by the Supreme Court of Louisiana.
The judgment of the Court of Appeals is reversed and the stay order of the district Court reinstated. We assume that both,parties will cooperate in taking prompt
Reversed.
In the petition for certiorari there was also raised the question of the appealability of the District Court’s order. In our grant of the writ we eliminated this question by limiting the scope of review. 358 U. S. 893.
The issue in Meredith v. Winter Haven, 320 U. S. 228, is, of course, decisively different from the issue now before 'the Court. Here the issue is whether an experienced district judge, especially conversant with Louisiana law, who, when troubled with the construction which Louisiana courts may give to a Louisiana statute, himself initiates the taking of appropriate measures for securing construction of this doubtful and unsettled statute, (and not at all in response to any alleged attempt by petitioner to delay a decision by that judge), should be jurisdictionally disabled from seeking the controlling light of the Louisiana Supreme Court. The issue in Winter Haven was not that. It was whether jurisdiction must be surrendered to the state court. At the very outset of his opinion Mr. Chief Justice Stone stated this issue:
“The question is whether the Circuit Court of Appeals, on appeal from the judgment of the District Court, rightly declined to exercise its jurisdiction on the ground that decision of the case on the merits turned on questions of Florida constitutional and statutory law which the decisions of the Florida courts had left in a state of uncertainty.” 320 U. S., at 229.
In Winter Haven the Court of Appeals directed the action to be dismissed. In this case the Court of Appeals .denied a conscientious exercise by the federal district judge of his discretionary power merely to stay disposition of a retained case until he could get controlling light from the state court.
Concurring Opinion
concurring.
In a conscientious effort to do justice the District Court deferred immediate adjudication of this controversy pending authoritative • clarification of a controlling state statute of highly doubtful meaning. Under the circumstances presented, I think the course pursued was clearly within the District Court’s allowable discretion. For that reason' I concur in the judgment:
This case is totally unlike County of Allegheny v. Mashuda Co., decided today, post, p. 185, except for the coincidence that both cases involve eminent domain proceedings. In Mashuda the.-Court holds that it was error for the District Court to dismiss the complaint. The Court further holds in that case that, since the controlling state law. is clear and oníy factual issues need be resolved, there is no occasion in the interest of justice to refrain from prompt adjudication.
Dissenting Opinion
Until today, the standards for testing this order of the District'Court sending the parties'to this diversity action to a state court for decision of a state law question might have been said to have been reasonably consistent with the imperative duty of a District Court, imposed by Congress under 28 U. S. C. §§ 1332 and 1441, to render
These exceptional circumstances provided until now a very narrow corridor through which a District Court could escape from its obligation to decide state law questions when federal jurisdiction was properly invoked. The doctrine of abstention originated in the area of the federal courts’ duty to avoid, if possible, decision of a federal constitutional question. This was Railroad Comm’n of Texas v. Pullman Co., 312 U. S. 496. There this Court held that the District Court should have stayed its hand while state issues were resolved in a state court when an injunction was sought to restrain the enforcement of the order of a state administrative body on the ground that the order was not authorized by the state law and was violative of the Federal Constitution. The Court reasoned that if the state courts held-that the order was not authorized under state law there could be avoided “the friction of a premature constitutional adjudication.” 312 U. S., at 500. Numerous decisions since then have sanctioned abstention from deciding cases involving a federal constitutional issue where a state court determination of state lawr might moot the issue or put the case in a
But neither of the two recognized situations justifying abstention is present in the case before us. The suggestion that federal constitutional questions lurk in the background is so patently frivolous that .neither the District Court, the Court of Appeals, nor this Court considers it to be worthy of even passing reference. The
The Court therefore turns the holding on the purported existence of the other, situation justifying abstention, stating the bald conclusion that: “The considerations that prevailed in conventional equity suits for avoiding the hazards of serious disruption by federal .courts of state government or needless friction between state and federal authorities are similarly appropriate in a state eminent domain' proceeding brought in, or removed to, a federal court.” But the fact of the matter is that this case does not involve the slightest hazard of friction with a State, the indispensable ingredient for upholding abstention on grounds of comity, and one which has been present in all of the prior cases in which abstention has been approved by this Court on that ground. First bf all, unlike all prior cases in which abstention has beemsanctioned on grounds of comity, the District Court has not been asked to grant injunctive relief which would, prohibit state officials from acting. This case involves an
The Court of Appeals, in my view, correctly considered, in reversing the action of the District Court, that there is not shown a semblance of a countervailing interest which meets the standards permitting abstention. The standard utilized by the Court of Appeals in reviewing the District Court’s order was not whether the district judge abused his discretion in staying the proceedings; rather it was-whether he had any discretion to abstain from deciding this case in which the federal court’s jurisdiction was properly invoked. This approach was correct in light of the teaching of all prior cases, which delimit the narrow area in which abstention is permissible and hold that jurisdiction must be exercised in all other situations. It would obviously wreak havoc with federal jurisdiction if the exercise of that jurisdiction was a matter for the ad hoc discretion of the District Court in each particular case.
Despite the complete absence of the necessary showing to justify abstention,. the Court supports its holding simply by a reference to a dissenting opinion in which it was said “that eminent domain is- a prerogative of the State.”
In the second place, the Court, in its opinion, omits ■ mention of the host of cases,.many in this Court, which
The first is that the only real issue of law in the case, the interpretation of Act 111, presents a "difficult question of state law. It is true that there are no Louisiana decisions interpreting Act 111, and that there is a confusing opinion of the State’s Attorney General on the question. But mere difficulty of construing the state statute is not justification for running away from the task. “Questions may occur which we would gladly avoid; but we cannot avoid them. All we can do is, to exercise our best judgment, and conscientiously to perform our duty.” Cohens v. Virginia, 6 Wheat. 264, 404. Difficult questions of state law to which the federal courts cánnot give' definitive answer's arise every day in federal courts
“But we are of opinion that the difficulties of ascertaining what the state courts may hereafter determine the state law to be do not in themselves afford a sufficient ground for a federal court to decline to exercise its jurisdiction to decide a case which is properly brought to it for decision.
“The diversity jurisdiction was not conferred for the benefit of the federal courts or to serve their convenience. Its purpose was generally to afford to suitors an opportunity in such cases, at their option, to assert their rights in the federal rather than in the state courts. In the absence of some recognized public policy or defined principle guiding.the exercise of the jurisdiction conferred, which would in exceptional cases warrant its non-exercise, it has from the first been deemed to be the duty of the federal courts, if their jurisdiction is properly invoked, to decide questions of state law whenever necessary to the rendition of a judgment. . . . When such exceptional circumstances are not present, denial of that opportunity by the federal courts merely because the answers to the questions of state law are difficult or uncertain or have not yet been given by the highest court of the state, would thwart the purpose of the jurisdictional act.” 320 U. S., at 234-235.
The cases are legion, since Erie R. Co. v. Tompkins, 304 U. S. 64, in which the federal cc.urts have adjudicated diversity cases by deciding issues of state law, difficult and easy, without relevant state court decisions on the point in issue. And this Court has many times, often over dissents urging abstention, decided doubtful questions of state law when properly before us. Propper v.
The second possible reason explaining the Court’s holding is that it reflects a distaste for the diversity jurisdiction. But distaste for diversity jurisdiction certainly cannot be reason to license district judges to retreat from their responsibility. The roots, of that jurisdiction are inextricably intertwined with the roots of our federal system. They stem from Art. HI, § 2 of the Constitution and the first Judiciary Act, the Act of 1789,1 Stat. 73, 78.
Not only has the Court departed from any precedential basis for its action, but the decision encourages inefficiency in administration of the federal courts and leads to unnecessary delay, waste and added expense for the parties. This is particularly the stark truth in the instant case. The City of Thibodaux brought this proceeding in a Louisiana court to expropriate lands of the Power and Light Company for public purposes. The Power and Light Company, a Florida corporation, removed the action to the District Court, as was its privilege under 28 U. S. C. § 1441. The crucial issue in the case is whether Louisiana Act 111 of 1900 empowers the City to exercise the State’s right of eminent domain.
I-would affirm the judgment of the Court of Appeals.
But when questions of state law are not cloudy the District Court should decide them, even though such a course necessitates decision of a federal constitutional issue. Chicago v. Atchison, T. & S. F. R. Co., 357 U. S. 77; Public Utilities Comm’n of California v. United States, 355 U. S. 534; Toomer v. Witsell, 334 U. S. 385.
Expropriation proceedings such as this one are recognized to be suits at law. Kohl v. United States, 91 U. S. 367, 376.
Madisonville Traction Co. v. St. Bernard Mining Co., 196 U. S. 239, 257. The District Court did not rest its actions on this theory, but relied upon Leiter Minerals, Inc., v. United States, 352 U. S. 220, as authority for the stay order, That decision, which came' down shortly before the District Court’s order in this case, modified an order of the same district judge and provided for a reference to the Louisiana courts of a question of Louisiana law because the state court’s interpretation of state law might well'have mooted a federal constitutional issue or cast it in a different posture. The simple fact that there is no constitutional question of any substance to avoid in this case makes Leiter inapposite.
It is true that this Court in Meredith v. Winter Haven was reviewing an order dismissing federal jurisdiction, whereas the District Court order in this case retains jurisdiction pending the state court determination. However, it is significant that the Court in Winter Haven, rather than remanding the.case with instructions that the District Court retain jurisdiction but abstain from deciding the state law issues, ordered the District Court to adjudicate those issues. It is perfectly clear that” Winter Haven did not turn on any difference between an abstention and a dismissal, nor on the fact that it was a Court of Appeals rather than a District Court which initially decided to refrain from adjudicating the state issues. Neither did it turn on this Court’s ideas about the competence or experience-of the judges below. Meredith v. Winter Haven rested squarely on the Court’s conclusion that, no matter how intimately related to a State’s sovereignty a case is, the District Court must adjudicate i't if jurisdiction is properly invoiced and that adjudication would not entail decision of a serious constitutional question or disruption of state policy.
See, for a discussion of this subject, Friendly, The Historic Basis of Diversity Jurisdiction, 41 Harv. L. Rev. 483; Yntema and Jaffin, • Preliminary Analysis of Concurrent Jurisdiction, 79 U. of Pa. L. Rev. 869, 873-876; Frank, Historical Basis of the Federal Judicial System, 13 Law & Contemp. Prob. 3, 22-28.
See Burford v. Sun Oil Co., 319 U. S. 315, 337-338 (dissenting opinion); Hart and Wechsler, The Federal Courts and the Federal System, 893-894.
The Act, naw § 101 of Part III of Title 19 of the Louisiana Revised Statutes of 1950, provides in pertinent part:
“Any municipal corporation of Louisiana may expropriate any electric light, gas, or waterworks plant or property whenever such a course is thought necessary for the public' interest by the mayor and council of the municipality. When the municipal council cannot agree with the owner thereof for its purchase, the municipal corporation through the proper officers may petition the judge, of the district court in which the property is situated, describing the property necessary for the municipal purpose, with a detailed statement of the buildings, machinery, appurtenances, fixtures, improvements, mains, pipes, sewers, .wires, lights, poles and property of every kind, connécted therewith, and praying that the property described be adjudged to the municipality upon payment to the owner of the value of the property plus all damages sustained in consequence of the expropriation. Where the same person is the owner of both gas, electric light, and water works plants, or of more than one of any one kind of plant, the munipipal corporation may not expropriate any one of the plants without expropriating all of the plants owned by the same person.”
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