Lilley ex rel. Missouri Defense Bonds v. Missouri

920 F. Supp. 1035, 1996 U.S. Dist. LEXIS 7509, 1996 WL 143642
CourtDistrict Court, E.D. Missouri
DecidedFebruary 27, 1996
DocketNo. 4:95-CV-0187 CAS
StatusPublished
Cited by1 cases

This text of 920 F. Supp. 1035 (Lilley ex rel. Missouri Defense Bonds v. Missouri) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lilley ex rel. Missouri Defense Bonds v. Missouri, 920 F. Supp. 1035, 1996 U.S. Dist. LEXIS 7509, 1996 WL 143642 (E.D. Mo. 1996).

Opinion

MEMORANDUM AND ORDER

SHAW, District Judge.

This matter is before the Court on pretrial motions. Plaintiff filed his four-count Complaint on January 27, 1995 against the State of Missouri, the Missouri Board of Fund Commissioners (the “Board”), and in their individual and official capacities, Board members Dick Hanson, Missouri Commissioner of Administration; Bob Holden, Missouri Treasurer; Margaret Kelly, Missouri State Auditor; Keith Thornburg, legal representative of the Missouri State Auditor; Jeremiah W. Nixon, Missouri Attorney General; Mel Carnahan, Governor of the State of Missouri; and Roger W. Wilson, Lieutenant Governor of the State of Missouri.

The Complaint asserts claims for payment of principal and interest on certain bonds (Count I), conspiracy (Count II), and deprivations of civil rights under 42 U.S.C. § 1983 (Count III), and 42 U.S.C. §§ 1985 and 1986 (Count TV). Plaintiff also seeks certification of this matter as a class action under Rule 23, Federal Rules of Civil Procedure.

The defendants filed a motion to dismiss the complaint on March 28, 1995. Thereafter, on April 6, 1995, plaintiff sought leave to file his First Amended Complaint (“Amended Complaint”), which appears to differ from the original complaint only by the addition of another named party plaintiff, Donna M. Ho-back. Defendants have not opposed plaintiffs motion for leave to amend, but instead move to dismiss the proposed Amended Complaint.

Motion for Leave to Amend. Leave to amend is to be freely granted under Federal Rule of Civil Procedure 15(a). Nonetheless, the Court has discretion whether or not to grant leave to amend. Zenith Radio Corp. v. Hazeltine Research, Inc., 401 U.S. 321, 330-32, 91 S.Ct. 795, 802-03, 28 L.Ed.2d 77 (1971). Factors to consider in determining whether leave to amend should be granted include but are not limited to (i) whether the motion was filed in bad faith or with dilatory motive; (ii) whether the motion was filed with undue delay; (iii) whether leave to amend would be unduly prejudicial to the opposing parties; and (iv) whether the proposed amendment would be futile. See Williams v. Little Rock Municipal Water Works, 21 F.3d 218, 224 (8th Cir.1994). The Court finds that the general rule of liberal amendment should apply here. Plaintiffs motion for leave to amend will be granted, and defendants’ motion to dismiss the original complaint will be denied as moot.

Background. Plaintiffs assert the existence of federal jurisdiction on the basis of diversity of citizenship and federal question jurisdiction. Plaintiffs allege they are the owners and holders of certain Defense Bonds (the “Bonds”) issued by the lawful government of the State of Missouri during the Civil War. (Amended Complaint, ¶ 1.) Plaintiffs seek to recover the principal and interest due and owing under the Bonds from the date of issue to the present, which would exceed several million dollars per Bond. (Id., ¶2.) Plaintiffs assert that the Bonds are valid and that “the State of Missouri is legally responsible to pay ... the principal and compounded interest due thereunder.” (Id., ¶ 3.) Plaintiffs contend that defendants, acting in their official and individual capacities, inter alia, violated plaintiffs’ civil rights by refusing to honor the Bonds when submitted for payment. (Id., ¶ 4.)

[1039]*1039Defendants move to dismiss the Amended Complaint on the grounds that plaintiffs’ claims (i) are barred by the Eleventh Amendment; (ii) fail to state a claim upon which relief can be granted; (iii) are subject to defendants’ right to qualified immunity; (iv) are improperly based on a respondeat superior theory; and (v) are barred by the applicable statute of limitations. Plaintiffs oppose the motion.

Standard of Review. When ruling on a motion to dismiss, this Court must take the allegations of the complaint as true. Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-02, 2 L.Ed.2d 80 (1957). The complaint must be liberally construed in a light most favorable to the plaintiff. Coleman v. Watt, 40 F.3d 255, 258 (8th Cir.1994); Morton v. Becker, 793 F.2d 185, 187 (8th Cir.1986). Therefore, a motion to dismiss a complaint should not be granted unless it appears beyond doubt that the plaintiff can prove no set of facts which would entitle him or her to relief. Coleman, 40 F.3d at 258; Kohl v. Casson, 5 F.3d 1141, 1148 (8th Cir.1993). With this standard in mind, the Court turns to the merits of defendants’ motion.

I.

Defendants initially contend that the State of Missouri is the real party in interest to this action, and plaintiffs’ ultimate goal is to recover payment on the Bonds. Thus, defendants argue this action is barred by the Eleventh Amendment to the United States Constitution, which prohibits any suit that would have the effect of imposing retroactive monetary liability against a State’s treasury. Defendants rely on Pennhurst State School and Hospital v. Halderman, 465 U.S. 89, 100-01, 104 S.Ct. 900, 908, 79 L.Ed.2d 67 (1984) (Pennhurst II); Edelman v. Jordan, 415 U.S. 651, 661-69, 94 S.Ct. 1347, 1354-59, 39 L.Ed.2d 662 (1974); and Ford Motor Co. v. Dept. of Treasury of State of Indiana, 323 U.S. 459, 464, 65 S.Ct. 347, 350-51, 89 L.Ed. 389 (1945). Defendants assert that federal courts have determined they lack jurisdiction over cases asserting similar claims, citing Ex parte Ayers, 123 U.S. 443, 8 S.Ct. 164, 31 L.Ed. 216 (1887); State of Louisiana ex rel. Elliott v. Jumel, 107 U.S. 711, 2 S.Ct. 128, 27 L.Ed. 448 (1883); and Barry v. Fordice, 814 F.Supp. 511 (S.D.Miss.1992), aff'd, 8 F.3d 1 (5th Cir.1993).

Plaintiffs respond that defendants have mischaracterized their lawsuit, which predominantly seeks declaratory and injunctive relief and not monetary damages. Plaintiffs argue that because their complaint principally seeks a declaration that Article 4, Section 52 of the Missouri Constitution is unconstitutional,1 the Eleventh Amendment bar does not apply. Plaintiffs rely in large part on Ex parte Young, 209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714 (1908).

, This Court is obligated to review the allegations of the Amended Complaint to determine if its jurisdiction over this suit is barred by the Eleventh Amendment. See Pennhurst II, 465 U.S. at 121, 104 S.Ct. at 919.

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Related

Lilley v. State of Mo.
920 F. Supp. 1035 (E.D. Missouri, 1996)

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920 F. Supp. 1035, 1996 U.S. Dist. LEXIS 7509, 1996 WL 143642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lilley-ex-rel-missouri-defense-bonds-v-missouri-moed-1996.