H&O Food Warehouse, Inc. v. Virgin Islands Public Finance Authority

70 F. App'x 611
CourtCourt of Appeals for the Third Circuit
DecidedJune 17, 2003
DocketNo. 02-2947
StatusPublished

This text of 70 F. App'x 611 (H&O Food Warehouse, Inc. v. Virgin Islands Public Finance Authority) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
H&O Food Warehouse, Inc. v. Virgin Islands Public Finance Authority, 70 F. App'x 611 (3d Cir. 2003).

Opinion

OPINION

COWEN, Circuit Judge.

H&O Warehouse, Inc. (“H&O”) is a Virgin Islands corporation operating a warehouse and distribution business. The Virgin Islands Public Finance Authority (the “PFA”) is an instrumentality of the Government of the Virgin Islands (the “Government”) created to assist the Government in public projects by securing financing through the issuance of bonds and notes. H&O alleges that the Government contracted for the purchase of food, goods, and wares in the amount of $3,932,706.15 which H&O delivered without payment. The PFA disputes the existence of a contract, and denies that any demand for payment have been made. The merits of these arguments, however, are not raised in this appeal. Instead, this appeal centers on an appropriations bill directing the PFA to pay H&O the alleged outstanding amount.

On January 16, 1998 the Virgin Islands Legislature passed Act No. 6197 authorizing the PFA to borrow funds totaling $106 million for a loan to the Government. On March 18, 1998, the Legislature passed Act No. 6222 which amended Act No. 6197(l)(a) by qualifying the borrowing authorization with a provision that “the sum of $3,932,706.15 shall be paid to H&O Warehouse, Inc. of St. Croix.” SuppApp. 1, Ex. B. Both Acts were signed into law by the Governor of the Virgin Islands. The parties do not dispute that the PFA has not paid H&O any of the amount authorized by Acts Nos. 6197 and 6222.

On February 20, 1998 H&O filed a complaint in the Territorial Court against the Government alleging a breach of contract. While the Territorial Court action proceeded, H&O filed a separate complaint in the District Court of the Virgin Islands on October 31, 2001 captioned as an “Original Mandamus Action.” App. at 4. An “Amended Complaint for Original Mandamus Action” followed on February 19, 2002. The Amended Complaint cited the passing of Acts Nos. 6197 and 6222 into law, alleged that the PFA and the Government had failed to pay the sum due, and sought a writ of mandamus. The PFA moved to dismiss the mandamus action for lack of subject matter jurisdiction. The District Court granted the motion to dismiss and this appeal followed.

Finally, on August 19, 2002 H&O returned to the Territorial Court and moved for leave to amend its contract action to request mandamus relief. The status of that motion is not indicated in the record.

[613]*613This court exercises plenary review over the District Court’s dismissal of H&O’s petition for lack of subject matter jurisdiction, and the District Court’s interpretation and application of Virgin Islands law. Brow v. Farrelly, 994 F.2d 1027, 1081 (3d Cir.1993); see also BA Props., Inc. v. Gov’t of the United States Virgin Islands, 299 F.3d 207, 211 (3d Cir.2002).

II.

A. The Original Jurisdiction of the District Court

This Court has explained the jurisdiction of the District and Territorial Courts on numerous occasions. See, e.g., Club Comanche, Inc. v. Gov’t of the Virgin Islands, 278 F.3d 250, 255-56 (3d Cir. 2002); Brow v. Farrelly, 994 F.2d 1027, 1032-35 (3d Cir.1993); Estate Thomas Mall, Inc. v. Territorial Court of the Virgin Islands, 923 F.2d 258 (3d Cir.1991). Congress established the jurisdiction of the District Court of the Virgin Islands in The Revised Organic Act (the “ROA”), 48 U.S.C. §§ 1541-1645. In 1984, Congress amended the ROA to provide the District Court of the Virgin Islands the entire jurisdiction of a District Court of the United States, and general original jurisdiction in all causes in the Virgin Islands not vested by law in the local courts. 48 U.S.C. §§ 1612(a), (b). In 1991, the Virgin Islands Legislature exercised its power to vest local civil actions in the Territorial Courts, 4 V.I.C. § 76(a), and thereby divested the District Court of jurisdiction over all local civil suits. Brow, 994 F.2d at 1034; Estate Thomas, 923 F.2d at 261. With the enactment of 4 V.I.C. § 76(a), the District Court of the Virgin Islands now has exclusive jurisdiction over all purely federal matters, and concurrent federal question and diversity jurisdiction. Local civil actions, in contrast, are within the exclusive jurisdiction of the Territorial Courts. Club Comanche, 278 F.3d at 256.

In the present case, H&O cannot invoke either the District Court’s diversity or federal question jurisdiction under 48 U.S.C. § 1612(a). H & O’s well-pleaded complaint raises no issues of federal law, and there is no complete diversity as both parties are citizens of the Virgin Islands. As jurisdiction is improper under 48 U.S.C. § 1612(a), H&O’s claim must be filed in the Territorial Court pursuant to 48 U.S.C. § 1612(b) and 4 V.I.C. § 76(a).

H&O argues that this Court’s decision in Brow holds that the District Court of the Virgin Islands may exercise jurisdiction over a mandamus action pursuant to 5 V.I.C. § 1361. In Brow, the plaintiff obtained a favorable judgment from the Territorial Court in an employment dispute, and sought to enforce the judgment by filing a petition for a writ of mandamus in the District Court. In holding that the District Court lacked subject matter jurisdiction, this Court construed the plaintiffs pro se filing as an action to enforce a judgment (albeit in the wrong court), and thus not a petition for mandamus. Brow, 994 F.2d at 1036. As part of an extensive explanation of jurisdiction in the Virgin Islands, this Court also noted that had the plaintiff “brought a true mandamus action, the District Court would possess the subject matter jurisdiction to hear the petition.” Id. at 1036 n. 9.

This statement, however, merely explained that both the District and Territorial Courts “possess the authority to issue mandamus orders in aid of their jurisdiction.” Id. (emphasis added). The illustrative purpose of this comment is made clear by the Court’s discussion of the sources of mandamus power, including 28 U.S.C. § 1651(a), the All Writs Act. It is well-settled that § 1651(a) only conferred authority to issue writs if an independent basis for subject matter jurisdiction exists. See United States v. Christian, 660 F.2d [614]*614892, 894 (3d Cir.1981) (“The principle [that] the Supreme Court has no original jurisdiction to issue the writ of mandamus has historically applied as well to lower federal courts.... The current authorization for mandamus, embodied in the All Writs Act ... preserves this restraint.”).

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70 F. App'x 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ho-food-warehouse-inc-v-virgin-islands-public-finance-authority-ca3-2003.