City of Oakland v. Holder

961 F. Supp. 2d 1005, 2013 WL 3357887, 2013 U.S. Dist. LEXIS 93883
District Court, N.D. California·Decided July 3, 2013·No. No. C 12-05245 MEJ·Published·Cited by 4 cases

Opinion

ORDER GRANTING THE CITY OF OAKLAND’S MOTION TO STAY FORFEITURE PROCEEDINGS [Dkt. No. 56]

Concurrently filed in: No C. 12-03566 MEJ, No. C 12-03567 MEJ

Maria-Elena James, United States Magistrate Judge

I. BACKGROUND

On October 10, 2012, the City of Oakland filed this lawsuit challenging the Federal Government’s initiation of a civil forfeiture action against property located at 1840 Embarcadero, Oakland, California, which is also currently pending before this Court.1 Harborside Health Center leases the property at 1840 Embarcadero, where it operates a medical cannabis dispensary. Compl. ¶ 1, Dkt. No. 1. According to Oakland, the Government’s attempt to seize the property — and ultimately stop Harbor-side’s operation at that location — not only impinges on the regulatory framework [1009]*1009Oakland has developed to oversee medical cannabis dispensaries in compliance with California law, but more significantly, presents a threat to the health and safety of Oakland’s citizens by cutting off their access to an established medical marijuana supplier. Compl. ¶¶ 32-35. In its Complaint, Oakland sought a declaratory judgment and injunctive relief pursuant to the Declaratory Judgment Act, 28 U.S.C. §§ 2201-02, and the Administrative Procedures Act, 5 U.S.C. §§ 702, 706, challenging the forfeiture action on two grounds: (1) it is untimely under the statute of limitations applicable to civil forfeiture actions; and (2) the Government is equitably estopped from seeking forfeiture of the defendant property based on the Government’s past representations and conduct. Compl. at 13-15. Oakland’s lawsuit, however, came to a halt on February 14, 2013, when the Court granted the Government’s Motion to Dismiss for lack of subject matter jurisdiction. Dkt. No. 53. Specifically, the Court agreed with the Government that Oakland had failed to demonstrate that the forfeiture proceeding against the 1840 Embarcadero property constitutes “final agency action for which there is no other adequate remedy in court,” pursuant to § 704 of the Administrative Procedure Act. Id. at 5-9. As a result, there is no waiver of the Government’s sovereign immunity under the APA for Oakland’s action, mandating dismissal. Id.

On February 29, 2013, Oakland appealed this Court’s dismissal order to the Ninth Circuit Court of Appeals. Oakland v. Holder, Case No. 13-15391, Dkt. No. 1. Concurrently, Oakland filed the instant Motion to Stay Forfeiture Proceedings Pending Appeal. Dkt. No. 56. In its Motion, Oakland requests that the Court stay all proceedings in the 1840 Embarcadero action until the Ninth Circuit has ruled on its appeal.2 It asserts that a stay is necessary to protect its ability to litigate the claims it asserted in its Complaint should the Ninth Circuit reverse this Court’s dismissal, as well as to prevent irreparable harm to its citizens in the interim period. The Government opposes Oakland’s Motion, arguing that Oakland cannot stay an action to which it is not a party; that the Court lacks jurisdiction to stay the 1840 Action because it would change the status quo; and that even if jurisdiction exists, Oakland has failed to satisfy the applicable standard for a stay or an injunction. Ana Chretien (the owner and landlord of the 1840 Embarcadero property) and Harbor-side have joined in Oakland’s Motion. Dkt. Nos. 58, 59.

On June 20, 2013, the Court held a hearing on this matter. Having carefully considered the parties’ arguments and controlling authorities, the Court now GRANTS Oakland’s Motion.

II. DISCUSSION

A. Preliminary Considerations

In its Motion, Oakland requests that the Court stay the 1840 Embarcadero forfeiture proceeding while it pursues its appeal before the Ninth Circuit. Neither party disputes that this Court possesses the power to stay entry of a judgment in a matter pending before it, whether sua sponte or at the request of a party to that action. Here, however, because the Court terminated Oakland’s lawsuit, there is no judgment or proceeding remaining for the Court to stay. What Oakland seeks— which differentiates the instant Motion from the typical stay request — is to suspend an action to which it is not a party, but in which it purports to have an interest [1010]*1010which may be affected while it pursues its appeal. The Government maintains that Oakland is overreaching with its request. Citing Nken v. Holder, 556 U.S. 418, 421, 129 S.Ct. 1749, 173 L.Ed.2d 550 (2009), the Government contends that a stay pending appeal is for the purpose of “holdfing] [the district court’s] ruling in abeyance to allow an appellate court the time necessary to review it.” Opp. at 2, Dkt. No. 46. According to the Government, Oakland is attempting to intrude into a proceeding in which the Court has already held it has no legal standing to participate, and the Court should therefore deny its request so the forfeiture action can proceed.

Although case law on whether a stay is appropriate in this scenario is thin, Oakland has identified at least one decision recognizing that courts may consider a movant’s request to stay a separate proceeding. In Sisters of Mercy Health System v. Kula, 2006 WL 2090090, at *1 (W.D.Okl. July 25, 2006), the district court confronted the same issue before this Court: whether a stay is appropriate “where the movant asks a court to enter an order in an action which is currently on appeal, and where that order would then stay a different but related action which is pending before the same judge involving some but not all of the same parties, and where the movant asks that such a stay remain in place until the appeal of the action in which the movant brought the motion is determined.” Although it ultimately denied the request on its merits, the court addressed jurisdictional and standing issues pertinent to this matter.

As to its authority to entertain the stay request, the court noted that after the appeal was filed, it retained jurisdiction to rule on matters collateral to the appeal, including the stay request. Id. at *2. With respect to the plaintiff-insurer’s standing to seek a stay of a related case to which it was not a party, the court found that standing existed because the plaintiff had a stake or interest in the subject matter of that case, namely, its obligation to defend and indemnify the defendant-insured in that litigation. Id.

Here, Oakland’s lawsuit focused on the legality of the 1810 Embarcadero forfeiture action. Thus, there is a sufficient nexus between this action and the 1810 Embarcadero action to make Oakland’s request reasonable. Put another way, like the plaintiff in Sisters of Mercy Health, Oakland has demonstrated that it has a stake or interest in the action that is the target of its stay request.

Nevertheless, the Government contends that the stay Oakland seeks is more appropriately categorized as a request for an injunction pursuant Federal Rule of Civil Procedure 62(c).3

Free access — add to your briefcase to read the full text and ask questions with AI

City of Oakland v. Holder, 961 F. Supp. 2d 1005, 2013 WL 3357887, 2013 U.S. Dist. LEXIS 93883 (N.D. Cal. 2013).

961 F. Supp. 2d 1005 (City of Oakland v. Holder) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related