City of Chicago v. International College of Surgeons

11 Fla. L. Weekly Fed. S 271, 139 L. Ed. 2d 525, 118 S. Ct. 523, 522 U.S. 156, 1997 Colo. J. C.A.R. 3342, 97 Cal. Daily Op. Serv. 9348, 97 Daily Journal DAR 15041, 1997 U.S. LEXIS 7502, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20612, 66 U.S.L.W. 4041
Supreme Court of the United States·Decided December 15, 1997·No. 96-910·Published·Cited by 5,961 cases

Opinions

Justice O’Connor

delivered the opinion of the Court.

The city of Chicago, like municipalities throughout the " country, has an ordinance that provides for the designation and protection of historical landmarks. Chicago Municipal Code, Art. XVII, §§2-120-580 through 2-120-920 (1990). The city’s Landmarks Ordinance is administered by the Commission on Chicago Historical and Architectural Landmarks (Chicago Landmarks Commission or Commission). Pursuant to the Illinois Administrative Review Law, Ill. Comp. Stat., ch. 735, §§5/3-103,5/3-104 (Supp. 1997), judicial review of final decisions of a municipal landmarks commission lies in state circuit court. In this case, we are asked to consider whether a lawsuit filed in the Circuit Court of Cook County seeking judicial review of decisions of the Chicago Landmarks Commission may be removed to federal district court, where the case contains both federal constitutional and state administrative challenges to the Commission’s decisions.

I

Respondents International College of Surgeons and the United States Section of the International College of Surgeons (jointly ICS) own two properties on North Lake Shore Drive in the city of Chicago. In July 1988, the Chicago Landmarks Commission made a preliminary determination that seven buildings on Lake Shore Drive, including two [160] mansions on ICS’ properties, qualified for designation as a landmark district under the city’s Landmarks Ordinance. In June 1989, the city council enacted an ordinance (the Designation Ordinance) designating the landmark district.

In February 1989, after the determination, ICS executed a contract for the sale and redevelopment of its properties. The contract called for the developer, whose interest has since been acquired by respondent Robin Construction Company, to demolish all but the facades of the two mansions and to construct a high-rise condominium tower. In October 1990, ICS applied to the Landmarks Commission for the necessary permits to allow demolition of a designated landmark. The Commission denied the permit applications, finding that the proposed demolition would “adversely affect and destroy significant historical and architectural features of the [landmark] district.” App. 49. ICS then reapplied for the permits under a provision of the Landmarks Ordinance allowing for exceptions in cases of economic hardship. The Commission again denied the applications, finding that ICS did not qualify for the hardship exception.

Following each of the Commission’s decisions, ICS filed actions for judicial review in the Circuit Court of Cook County pursuant to the Illinois Administrative Review Law. Both of ICS’ complaints raised a number of federal constitutional claims, including that the Landmarks and Designation Ordinances, both on their face and as applied, violate the Due Process and Equal Protection Clauses and effect a taking of property without just compensation under the Fifth and Fourteenth Amendments, and that the manner in which the Commission conducted its administrative proceedings violated ICS’ rights to due process and equal protection. The complaints also sought relief under the Illinois Constitution as well as administrative review of the Commission’s decisions denying the permits.

[161] The defendants (collectively City), who are petitioners in this Court, removed both lawsuits to the District Court for the Northern District of Illinois on the basis of federal question jurisdiction. The District Court consolidated the eases. After dismissing some of the constitutional claims and exercising supplemental jurisdiction over the state law claims, the court granted summary judgment in favor of the City, ruling that the Landmarks and Designation Ordinances and the Commission’s proceedings were consistent with the Federal and State Constitutions, and that the Commission’s findings were supported by the evidence in the record and were not arbitrary and capricious.1

The Court of Appeals for the Seventh Circuit reversed and remanded the ease to state court, concluding that the District Court was without jurisdiction. 91 F. 3d 981 (1996). The Seventh Circuit began its analysis by construing this Court’s decisions in Chicago, R. I. & P. R. Co. v. Stude, 846 U. S. 574 (1954), and Horton v. Liberty Mut. Ins. Co., 367 U. S. 348 (1961), which it read to suggest that “the character of the state judicial action” is significant when assessing whether proceedings to review state and local administrative decisions can be removed to federal court. 91 F. 3d, at 988. The court reasoned that, while Stude and Horton establish that proceedings to conduct de novo review of state agency action are subject to removal, the propriety of removing proceedings involving deferential review is still an open question. Relying on decisions from other Courts of Appeals that interpret the scope of a district court’s diversity jurisdiction, the court determined that deferential review of state agency action was an appellate function that was “ineonsist-[162] ent with the character of a court of original jurisdiction.” 91 F. 3d, at 990 (citing Fairfax County Redevelopment & Housing Authority v. W. M. Schlosser Co., 64 F. 3d 155 (CA4 1995), and Armistead v. C & M Transport, Inc., 49 F. 3d 43 (CA1 1995)). Accordingly, the court concluded, a proceeding to review state administrative action under a deferential standard is not a “civil action” within a district court’s “original jurisdiction” under the removal statute, 28 U. S. C. § 1441(a), and so cannot be removed. 91 F. 3d, at 990.

The court then applied those principles to this ease. The court began by observing that, under the Illinois Administrative Review Law, judicial review of local administrative decisions is deferential and not de novo, because the reviewing court must accept the agency’s findings of fact as presumptively correct and cannot hear new evidence. Id., at 991-992 (discussing Ill. Comp. Stat., ch. 735, § 5/3-110 (Supp. 1997)).2 Of the various claims raised in ICS’ complaints, the court explained, the as-applied constitutional challenges and the claims requesting administrative review of the Commission’s decisions are bound by the administrative record, but the facial constitutional challenges are independent of the record and so would be removable to federal court if brought alone. The court then addressed whether, “when the state action involves both claims that, if brought alone, would be removable to federal court [and] issues that clearly are grounded in the administrative record, removal of the entire state action to the district court is possible.” 91 F. 3d, at 993. The court ruled that, because some of the claims involve deferen[163] tial review, “the ease removed to the district court cannot be termed a ‘civil action ... of which the district courts . . . have original jurisdiction’ within the meaning of” the removal statute. Id., at 994 (quoting 28 U. S. C. § 1441(a)).

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City of Chicago v. International College of Surgeons, 11 Fla. L. Weekly Fed. S 271, 139 L. Ed. 2d 525, 118 S. Ct. 523, 522 U.S. 156, 1997 Colo. J. C.A.R. 3342, 97 Cal. Daily Op. Serv. 9348, 97 Daily Journal DAR 15041, 1997 U.S. LEXIS 7502, 28 Envtl. L. Rep. (Envtl. Law Inst.) 20612, 66 U.S.L.W. 4041 (U.S. 1997).

11 Fla. L. Weekly Fed. S 271 (City of Chicago v. International College of Surgeons) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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