Emerado Public School District 127 v. Sanford

750 F. Supp. 418, 1990 U.S. Dist. LEXIS 14763, 1990 WL 166975
CourtDistrict Court, D. North Dakota
DecidedOctober 30, 1990
DocketCiv. No. A2-90-84
StatusPublished
Cited by1 cases

This text of 750 F. Supp. 418 (Emerado Public School District 127 v. Sanford) is published on Counsel Stack Legal Research, covering District Court, D. North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Emerado Public School District 127 v. Sanford, 750 F. Supp. 418, 1990 U.S. Dist. LEXIS 14763, 1990 WL 166975 (D.N.D. 1990).

Opinion

MEMORANDUM AND ORDER

BENSON, Senior District Judge.

Emerado Public School District No. 127 (Emerado) filed an action against Mark Sanford, Grand Forks Public School District No. 1 (Grand Forks), Kathryn Haltli and three other defendants 1 on May 23, 1990. Before the court is defendants’ motion to dismiss for lack of subject matter jurisdiction.2

The burden of establishing jurisdiction is on the plaintiff. Schmidt v. United States, 901 F.2d 680, 683 (8th Cir.1990); Butts Feed Lots, Inc. v. United States, 690 F.2d 669, 670 (8th Cir.1982). Plaintiffs complaint alleges this court has jurisdiction pursuant to 28 U.S.C. § 1331 because the action “arises under the provisions contained within Title One of Public Law, 81-874.” See 20 U.S.C. §§ 236-244 (providing federal assistance for local educational agencies in areas affected by federal activity). Plaintiff’s complaint alleges that the defendants fraudulently or negligently acted to deprive plaintiff of state tuition apportionment funds and federal impact aid funds.

Specifically, plaintiff alleges defendants Sanford and Grand Forks fraudulently or negligently completed inaccurate census reports; fraudulently or negligently solicited and accepted state and federal aid payments; and fraudulently or negligently educated children whom plaintiff was allegedly entitled to educate pursuant to state law.

Plaintiff alleges defendant Kathryn Halt-li knew Grand Forks submitted inaccurate census reports, but refused to correct or amend the reports. Plaintiff also alleges Haltli knew of Grand Forks’ alleged unlawful solicitation and acceptance of state and federal aid payments. Plaintiff alleges that Haltli’s refusal to correct or amend the census reports constituted concerted action to fraudulently or negligently solicit and receive state and federal aid payments.

Article III of the United States Constitution gives the federal courts jurisdiction over actions “arising under” federal statutes. See U.S. Const, art. Ill, § 2. An action arises under federal law if either (1) federal law creates the cause of action or (2) the cause of action poses a substantial question of federal law. See West 14th St. Commercial Corp. v. 5 West 14th Owners Corp., 815 F.2d 188, 192 (2nd Cir.1987), cert. denied, 484 U.S. 850, 108 S.Ct. 151, 98 L.Ed.2d 107 (1987).

Federal law does not create a cause of action for plaintiff in this case. The federal impact aid statutes, 20 U.S.C. §§ 236-244 (Public Law 81-874), do not expressly provide a private cause of action. Furthermore, upon hearing and review, the court finds the federal impact aid statutes do not impliedly create a private cause of action. The following factors are relevant in determining whether a federal statute impliedly creates a cause of action:

1) Whether plaintiffs are members of a class for whose special benefit the statute was enacted;
2) Whether indicia of legislative intent reveal a congressional purpose to provide a private cause of action;
[420]*4203) Whether a federal cause of action would further the underlying purposes of the legislative scheme; and
4) Whether the alleged cause of action is a subject traditionally relegated to-state law.

See California v. Sierra Club, 451 U.S. 287, 293, 101 S.Ct. 1775, 1779, 68 L.Ed.2d 101 (1981); Cort v. Ash, 422 U.S. 66, 78, 95 S.Ct. 2080, 2088, 45 L.Ed.2d 26 (1975). Plaintiff does not satisfy any of these criteria.

First, plaintiff is not a member of a class for whose special benefit the statute was enacted. The statute under which plaintiff claims entitlement to federal aid was designed to alleviate the burden placed on school districts which educate children of parents who reside or work on federal property. See 20 U.S.C. §§ 236(a)(2)-(3), 238. It is clear from the complaint that plaintiff did not educate children of parents who reside on the air base or other federal property maintained by the air base. Thus, plaintiff is not a school district for whose benefit the statute was enacted.

Second, no indicia of legislative intent reveal a congressional purpose to provide a private cause of action. It is significant that the statutory scheme provides local educational agencies which are adversely affected or aggrieved by actions of the Secretary of the Department of Education an opportunity for hearing and review. See 20 U.S.C. § 240(g). This administrative remedy is sufficient to effectuate the purposes of the legislative scheme and indicates Congress did not intend to create a private cause of action.

Third, a federal cause of action would not further the underlying purposes of the legislative scheme. The purpose of the statute is to provide relief for districts which educate children that reside on federal property. It is undisputed that Grand Forks educated the children at issue in this case. Grand Forks received the federal impact aid. The court finds that the statute’s purpose was fully satisfied when the district which educated the children received the impact aid. The statute’s purpose would not be furthered by providing a private cause of action for a school district which did not educate the children, but alleges it was entitled, pursuant to state law, to educate them.

Finally, because the alleged cause of action is a subject traditionally relegated to state law, it is obvious Congress did not intend to provide a private cause of action in this case. Plaintiffs complaint is replete with references to fraud and negligence. Plaintiffs asserted cause of action arises solely under the fraud and negligence theories of state tort law.

Federal courts may hear an action grounded in state law if the action poses a “substantial” question of federal law. See West 14th St., 815 F.2d at 192. However, if Congress has not provided a private cause of action for violation of a federal statute, a claimed violation of the statute is not sufficiently “substantial” to confer federal question jurisdiction. See Merrell Dow Pharmaceuticals, Inc. v. Thompson, 478 U.S. 804, 814, 106 S.Ct. 3229, 3235, 92 L.Ed.2d 650 (1986).

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Bluebook (online)
750 F. Supp. 418, 1990 U.S. Dist. LEXIS 14763, 1990 WL 166975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emerado-public-school-district-127-v-sanford-ndd-1990.