Glazer's Wholesale Drug Co., Inc. v. Kansas

92 F. Supp. 2d 1228, 2000 U.S. Dist. LEXIS 4637, 2000 WL 365253
CourtDistrict Court, D. Kansas
DecidedApril 7, 2000
Docket99-2363-DJW
StatusPublished
Cited by3 cases

This text of 92 F. Supp. 2d 1228 (Glazer's Wholesale Drug Co., Inc. v. Kansas) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glazer's Wholesale Drug Co., Inc. v. Kansas, 92 F. Supp. 2d 1228, 2000 U.S. Dist. LEXIS 4637, 2000 WL 365253 (D. Kan. 2000).

Opinion

MEMORANDUM AND ORDER

WAXSE, United States Magistrate Judge.

This matter is before .the Court on Defendants’ Joint Motion To Dismiss (doc. # 11). More specifically, Defendants seek to dismiss Plaintiffs’ 42 U.S.C. § 1983 civil rights claims pursuant to Fed.R.Civ.P. 12(b)(1) and 12(b)(6). For the following reasons, the Court finds Defendants’ motion should be granted in part and denied in part.

FACTUAL BACKGROUND

Plaintiff Glazer’s Wholesale Drug Company, Inc. (“Glazer’s”) is a Texas corporation engaged in business as a wholesale distributor of wine, beer and distilled spirits. Plaintiffs A.B. Sales, Inc. (“A.B.Sales”) and Premier Beverage, Inc. (“Premier”) are Kansas corporations engaged in business as wholesale distributors of wine, beer and distilled spirits. Both A.B. Sales and Premier currently are licensed to do business in Kansas as wholesale distributors of beer, wine and distilled spirits.

On or around July 15, 1999, plaintiff corporations executed an Asset Purchase Agreement (“Agreement”) in which plaintiff Glazer’s agreed to purchase from plaintiffs A.B. Sales and Premier assets relating to the wholesale distribution of alcoholic liquor. Plaintiffs assert they are unable to consummate this Agreement, however, because the Kansas Liquor Control Act (“KLCA”) prohibits a nonresident person or entity such as Glazer’s from obtaining a license to do business in Kansas as a wholesale distributor of beer, wine or distilled spirits. As a result, Plaintiffs bring the instant cause of action seeking (a) a declaratory judgment finding the KLCA' licensing residency requirements invalid under the United States Constitution; and (b) injunctive relief which permanently will enjoin Defendants from enforcing the KLCA licensing residency requirements. The named defendants (“Defendants”) in this cause of action are (1) the State of Kansas; (2) the Kansas Department of Revenue; (3) Karla J. Pierce (in her official capacity as Secre *1230 tary of the Kansas Department of Revenue); and (4) Robert G. Longino (in his official capacity as Director of the Kansas Department of Revenue, Division of Alcoholic Beverage Control (“ABC”)). 1

In lieu- of answering the Complaint, Defendants filed a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(1) and 12(b)(6) on the grounds that (1) the Court lacks subject matter jurisdiction based on the immunity provision within the Eleventh Amendment to the United States Constitution; (2) Plaintiffs fail to state a claim upon which relief may be granted based on Eleventh Amendment immunity and on the fact that defendants the State of Kansas and the Kansas Department of Revenue are not “persons” under 42 U.S.C. § 1983; and (3) Plaintiffs fail to state a claim upon which relief may be granted because the Kansas Department of Revenue lacks capacity to be sued as a separate entity.

DISCUSSION

I. Fed.R.Civ.P. 12(b)(1): Lack of Subject Matter Jurisdiction

Defendants maintain this Court lacks subject matter jurisdiction over Plaintiffs cause of action because the Eleventh Amendment to the United States Constitution, as interpreted by the United States Supreme Court and the United States Court of Appeals for the Tenth Circuit, prohibits a plaintiff from bringing suit in federal court against the State of Kansas, Kansas state agencies or Kansas state officials. Plaintiffs, on the other .hand, argue the Court does have jurisdiction over their cause of action pursuant to an exception to Eleventh Amendment immunity, which specifically authorizes suits for prospective relief against state officers to prohibit conduct that violates federal law. Defendants contend the exception referenced by Plaintiffs is inapplicable. The issue presented, therefore, is whether the Eleventh Amendment divests this Court of subject matter jurisdiction over Plaintiffs’ cause of action.

Federal courts are courts of limited jurisdiction; they may exercise jurisdiction only when specifically authorized to do so. Castaneda v. I.N.S., 23 F.3d 1576, 1580 (10th Cir.1994). Given this limited authority, there is a presumption against federal jurisdiction. Scheideman v. Shawnee County Bd. of Cty. Comm’rs, 895 F.Supp. 279, 281 (D.Kan.1995) (citing Basso v. Utah Power & Light Co., 495 F.2d 906, 909 (10th Cir.1974)). Because the party invoking the jurisdiction of the court has the duty to establish that federal jurisdiction does exist, it is the plaintiff who bears the burden of showing why the case should not be dismissed when federal jurisdiction is challenged. Id; Jensen v. Johnson County Youth Baseball League, 838 F.Supp. 1437, 1439-40 (D.Kan.1993). A court lacking jurisdiction must dismiss the case at any stage of the proceeding in which it becomes apparent that jurisdiction is lacking. Laughlin v. Kmart Corp., 50 F.3d 871, 873 (10th Cir.), cert. denied, 516 U.S. 863, 116 S.Ct. 174, 133 L.Ed.2d 114 (1995); Fed.R.Civ.P. 12(h)(3). Challenges to jurisdiction under Fed.R.Civ.P. 12(b)(1) generally take two forms: facial attacks on the sufficiency of jurisdictional allegations and factual attacks on the accuracy of those allegations. Holt v. United States, 46 F.3d 1000, 1002-3 (10th Cir.1995). Defendants’ motion falls within the first category.

A. Eleventh Amendment Immunity in General

“The Eleventh Amendment generally bars suits against a state in federal *1231 court commenced by citizens of that state or citizens of another state.” Elephant Butte Irr. Dist. v. Department of Interior, 160 F.3d 602, 607 (10th Cir.1998), cert. denied, 526 U.S. 1019, 119 S.Ct. 1255, 143 L.Ed.2d 352 (1999). There are three primary methods, however, in which a plaintiff can circumvent the Eleventh Amendment. J.B. v. Valdez, 186 F.3d 1280, 1285-86 (10th Cir.1999) (citing Elephant Butte, 160 F.3d at 607; ANR Pipeline Co. v. Lafaver, 150 F.3d 1178, 1187-88 (10th Cir.) cert.

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Bluebook (online)
92 F. Supp. 2d 1228, 2000 U.S. Dist. LEXIS 4637, 2000 WL 365253, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glazers-wholesale-drug-co-inc-v-kansas-ksd-2000.