City of Kenosha v. Bruno

412 U.S. 507, 93 S. Ct. 2222, 37 L. Ed. 2d 109, 1973 U.S. LEXIS 58
Supreme Court of the United States·Decided June 11, 1973·No. 72-658·Published·Cited by 748 cases

Opinions

Mr. Justice Rehnquist

delivered the opinion of the Court.

Appellees, owners of retail liquor establishments, were holders of tavern liquor licenses1 issued under Wisconsin law by appellants, the cities of Racine and Kenosha. Acting pursuant to Wis. Stat. Ann. §§ 176.05 (1), (8) (1957 and Supp. 1973), the cities denied appellees’ applications for renewal of their one-year licenses after holding public “legislative” hearings. Alleging, inter alia, deprivations of their Fourteenth Amendment procedural due process rights in such denials and, by amended complaints, the unconstitutionality of §§ 176.05 (1), (8), appellees brought these federal civil rights actions for declaratory and injunctive relief naming in each case only the appropriate municipality as a defendant. The District Court entered temporary restraining orders commanding the immediate issuance of licenses and convened a three-judge district court pursuant to 28 U. S. C. § 2281 to rule on the constitutionality of the statutory licensing procedure. Thereafter, the Attorney General of Wisconsin was allowed to intervene as a party defendant on his own motion. On cross-motions for summary judgment, the [509]*509District Court declared the statute unconstitutional and enjoined its enforcement. This direct appeal followed.

Under the Wisconsin local licensing scheme, the governing bodies of municipalities are authorized to grant liquor licenses “to such persons entitled to a license under this chapter as they deem proper to keep places within their respective towns, villages, or cities for the sale of intoxicating liquors. . . .” Wis. Stat. Ann. § 176.05 (1) (1957).2 The statutory scheme has been interpreted by the Wisconsin Supreme Court to require a “legislative type of hearing wherein one is given notice of the hearing and a fair opportunity to state his position on the issue,” in situations where municipalities have denied an application for renewal of a license. Ruffalo v. Common Council, 38 Wis. 2d 518, 524, 157 N. W. 2d 568, 571 (1968). Such applications may not be rejected “without a statement on the clerk’s minutes as to the reasons for such rejection,” Wis. Stat. Ann. § 176.05 (8) (Supp. 1973),3 and the state courts have certiorari jurisdiction to [510]*510review whether such refusals by the councils are arbitrary, capricious, or discriminatory. Ruff alo v. Common Council, supra.

In the case of the Racine denials,4 it was stipulated that the question of the appellees’ applications for licenses was referred to the License and Welfare Committee of the Common Council and that at public hearings conducted by that Committee, appellees were present and heard oral objections to the renewal of the licenses for their taverns.5 After holding a public hearing, the Common Council followed the Committee’s recommendation and voted to deny the applications, apparently because of the adverse effects on the community of nude dancing in the bars.

It was also stipulated that at all meetings, all persons including appellees were given an opportunity to speak, but no speaker was sworn. None of the testimony was recorded and no verbatim transcript was made. Appellees were not advised that they could cross-examine any of the speakers, and they did not request [511]*511such an opportunity. And there was no advance written specification of the charges against any of the bars.

Relying on two Seventh Circuit decisions,6 the three-judge court (as had the single judge) held that “in light of the equitable nature of this action” it had jurisdiction pursuant to 28 U. S. C. § 1343 (3).7 Concluding that Racine’s interest in being able to deny the renewal of liquor licenses with no other safeguard than a legislative hearing is “minimal,” the court balanced that interest against that of appellees, assertedly their occupations and their investments, and determined that the Due Process Clause of the Fourteenth Amendment requires municipalities to grant an “adversary-type hearing in which the applicant is given timely notice of the reasons urged for denial [of renewal of his license] and an opportunity to present, confront, and cross-examine witnesses under oath with a verbatim transcript.” 346 F. Supp. 43, 51.

I

Neither party to the appeal has questioned the jurisdiction of the District Court, but “it is the duty of this court to see to it that the jurisdiction of the [district court], which is defined and limited by statute, is not exceeded.” Louisville ><&• Nashville R. Co. v. Mottley, 211 U. S. 149,152 (1908). Appellees alleged that they brought [512]*512their action under 42 U. S. C. § 1983,8 and that the District Court therefore had jurisdiction under 28 U. S. C. § 1343. The District Court agreed. The only defendants named in the complaints, however, were the municipalities of Kenosha and Racine. In considering the reach of § 1983 in Monroe v. Pape, 365 U. S. 167 (1961), this Court examined the legislative history surrounding its enactment and said:

“The response of the Congress to the proposal to make municipalities liable for certain actions being brought within federal purview by the Act of April 20, 1871, was so antagonistic that we cannot believe that the word ‘person’ was used in this particular Act to include them.” Id., at 191.

The District Court relied on Schnell v. City of Chicago, 407 F. 2d 1084 (CA7 1969), and Adams v. City of Park Ridge, 293 F. 2d 585 (CA7 1961), in holding that Monroe was limited to actions for damages, and that cities were proper defendants under § 1983 where equitable relief was sought. Adams, supra,9 in turn, relied on this Court's per curiam opinion in Holmes v. City of Atlanta, 350 U. S. 879 (1955). But in none of the three opinions in Holmes was the issue of whether or not a municipality is a “person” within the meaning of § 1983 discussed. The authority of that case as support for [513]

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City of Kenosha v. Bruno, 412 U.S. 507, 93 S. Ct. 2222, 37 L. Ed. 2d 109, 1973 U.S. LEXIS 58 (1973).

412 U.S. 507 (City of Kenosha v. Bruno) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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