Home Depot, Inc. v. Louisiana Ex Rel. Guste

589 F. Supp. 1258, 1984 U.S. Dist. LEXIS 16036
CourtDistrict Court, E.D. Louisiana
DecidedJune 8, 1984
DocketCiv. A. 84-1589
StatusPublished
Cited by3 cases

This text of 589 F. Supp. 1258 (Home Depot, Inc. v. Louisiana Ex Rel. Guste) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Depot, Inc. v. Louisiana Ex Rel. Guste, 589 F. Supp. 1258, 1984 U.S. Dist. LEXIS 16036 (E.D. La. 1984).

Opinion

ORDER AND REASONS

CHARLES SCHWARTZ, Jr., District Judge.

This matter came before the Court on the motion of defendant, William ,J. Guste, Jr., Attorney General of the State of Louisiana (State), to dismiss or in the alternative to stay, and the motion of plaintiffs, Home Depot, Inc. (Home Depot) and Gay-lord’s National Corporation (Gaylord’s) for *1260 preliminary injunction. Following oral argument, the Court denied the State’s motion for the reasons set forth below. The motion of plaintiffs for preliminary injunction was taken under submission; considering the memoranda, the record and the law applicable to plaintiff’s motion, the Court grants the motion for the following reasons.

I. COURSE OF PROCEEDINGS.

Home Depot and Gaylord’s filed this suit for declaratory judgment and injunctive relief, seeking a declaration that the Louisiana Sunday Closing Law, L.S.A.-R.S. 51:194 and its enforcement by the State are unconstitutional under the Constitutions of the United States and the State of Louisiana, and seeking to enjoin the State from enforcing that statute, and L.S.A. 51:1405 in conjunction therewith, against plaintiffs. In their complaint, plaintiffs allege that the Attorney General has threatened to bring, and has brought, legal actions pursuant to L.S.A.-R.S. 51:194 and 1405 against plaintiffs in state court, seeking preliminary and permanent injunctive relief to prevent plaintiffs from violating those laws. Plaintiffs specifically refer to the consolidated actions entitled “State of Louisiana, ex rel. William J. Guste, Jr., Attorney General vs. Home Depot, Inc., et al.,” and “State of Louisiana, ex rel. William J. Guste, Jr., Attorney General vs. Gaylord National Corporation, et al.,” which were filed in state court and were subsequently removed to this Court by Home Depot and Gaylord’s. By Order and Reasons of this date, we have remanded those consolidated cases back to state court upon the determination that this Court lacked subject matter jurisdiction. 1

II. THE STATE’S MOTION TO DISMISS

The State moves to dismiss, or in the alternative to stay, this action on the following grounds: (1) The Court lacks subject matter jurisdiction. (2) Declaratory relief is inappropriate in view of the pending state court proceedings. (3) Injunctive relief is barred by the Anti-Injunction Act. (4) The instant case is barred by the doctrine of abstention. (5) Equitable considerations require dismissal of this action. We address each of the State’s contentions individually.

The State contends that diversity jurisdiction does not exist in this matter, and we agree for the reasons contained in the Order and Reasons remanding the State’s respective actions against Home Depot and Gaylord’s. However, we disagree with the State’s contention that the Court does not have federal question jurisdiction over the instant case. The Fifth Circuit’s decision in the case of Braniff International, Inc. v. Florida Public Service Commission, 576 F.2d 1100 (5th Cir.1978) is dispositive of the issue. That case involved the enactment by the Florida legislature of a statute regulating air carriers operating in the state. Several carriers filed suit in the federal district court, asserting federal jurisdiction under 28 U.S.C. §§ 1331 and 1337, and seeking injunctive and declaratory relief relative to the constitutionality of the state regulatory scheme. The Court considered the question, which was one of first impression in this Circuit, of “the extent to which the Supreme Court’s decision in Public Service Commissioner of Utah v. Wycoff Co., 344 U.S. 237, 73 S.Ct. 236, 97 L.Ed. 291 (1952), circumscribes the power of a federal district court to entertain a constitutional challenge to a state statute,” 576 F.2d at 1101, concluding as follows:

“That appellants’ constitutional claim is or may be a defense to the Commission’s actions states a mere truism; it is not, under the circumstances, a limitation upon the power of the district court to entertain the controversy before it. In *1261 summary, we hold that where a party seeks injunctive and declaratory relief based upon the unconstitutionality of a state statute, and where there are no other concrete impediments to a proper exercise of federal-question jurisdiction, the mere fact that the constitutional claims might be raised before a state administrative body charged with enforcement of the statute does not alone deprive the court of jurisdiction.” 576 F.2d at 1106.

Based upon the Fifth Circuit’s holding in this regard, we find that the instant case is properly within the Court’s federal question jurisdiction.

As further grounds for its motion, the State suggests that declaratory relief would be inappropriate in view of pending state court proceedings. It is clear that this case arises out of the same controversy as is at issue in the cases which this Court has remanded to state court for adjudication. However, the mere existence of another adequate remedy does not preclude a judgment for declaratory relief. Rule 57, Fed.R.Civ.P. In an equity suit, the federal district court has discretionary power to stay its hand pending the outcome of a parallel state action. PPG Industries, Inc. v. Continental Oil Company, 478 F.2d 674 (5th Cir.1973). The factors to be considered in the exercise of that discretion include (1) that duplicate litigation abrades to some extent the spirit of federal-state comity, (2) that there should be a concern for economy of judicial time and a disinclination to encourage duplication of efforts, (3) the undesirability of imposing on litigants and witnesses the double burdens of two trials, and (4) the undesirability of a race by each party to obtain a decision from the particular court reacting most favorably to its position. Id. Summarily, “if a case can be settled most expeditiously in the federal court, that court should exercise its jurisdiction.” Wright, Miller & Kane, Federal Practice and Procedure: Civil 2d § 2759 at 657-658.

We find that under the circumstances of the instant case, this Court clearly should exercise its discretion in adjudicating the matter. The parties were previously before the Court in the parallel proceeding brought by the State with the same issues in controversy. The record in that proceeding was fully developed, and the matter was heard by the Court on the record. Neither party objected to the Court’s jurisdiction until the issue was raised by the Court, sua sponte. We note that, although we have determined otherwise, both parties, in good faith, were operating under the presumption that the federal court did, in fact, have jurisdiction to hear the matter. Should we dismiss this matter, the parties would in effect be required to begin the litigation all over again in state court. This would be wasteful of the litigants’ time and money, and would derogate principles of judicial economy.

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589 F. Supp. 1258, 1984 U.S. Dist. LEXIS 16036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-depot-inc-v-louisiana-ex-rel-guste-laed-1984.