Muskegon Theatres, Inc., a Michigan Corporation v. City of Muskegon, a Municipal Corporation, and the Amazon Company, a Michigan Corporation

507 F.2d 199, 1974 U.S. App. LEXIS 5782
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 5, 1974
Docket74-1447
StatusPublished
Cited by36 cases

This text of 507 F.2d 199 (Muskegon Theatres, Inc., a Michigan Corporation v. City of Muskegon, a Municipal Corporation, and the Amazon Company, a Michigan Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Muskegon Theatres, Inc., a Michigan Corporation v. City of Muskegon, a Municipal Corporation, and the Amazon Company, a Michigan Corporation, 507 F.2d 199, 1974 U.S. App. LEXIS 5782 (6th Cir. 1974).

Opinion

JOHN W. PECK, Circuit Judge.

On September 28, 1972, plaintiff-appellant (“appellant”) filed in federal district court a complaint alleging that defendant-appellee city (“City”), through certain urban renewal activities from 1966 to 1971, had “taken” its leasehold interest. Because appellant’s lessor (“lessor”) refused to join as co-plaintiff, appellant joined lessor as co-defendant. On June 1, 1973, City filed its declaration of taking in Muskegon County circuit court. On June 13, 1973, appellant filed in federal district court an amended and supplemental complaint realleging the “taking” to have been without just compensation and alleging that City delayed in filing its state court condemnation proceedings in order to obtain a lower appraisal of appellant’s interest. 1 On September 28, 1973, the district judge dismissed appellant’s original complaint because allegations of lost profits and depreciated property value stemming from surrounding urban renewal failed to state a “taking” in the constitutional sense. On November 7, 1973, appellant, City, and lessor stipulated that title to the realty would vest in City, that City would pay into federal district court its estimate of just compensation, and that City would dismiss without prejudice its declaration of taking in state court. The parties reserved the right to prove the date of “taking” for valuation purposes.

On February 26, 1974, the district judge refused to accept the parties’ stipulation, characterizing it as “transfer[ring) the entire litigation, except so much as has been agreed to, from the Muskegon Circuit Court to this court for final disposition and . . . stipu-lat[ing] that this court has jurisdiction without an admission of same or a specific finding thereof by this court.” The judge found that federal-state comity dictates that parties cannot, by stipulation, remove state court proceedings to federal court; moreover, he found that he was unable to say that the state courts would fail to afford appellant its constitutional rights.

Appellant appeals the district court’s sua sponte dismissal of its amended and supplemental complaint. We hold that the district court had power to abstain from exercising jurisdiction, but should have retained jurisdiction pending state court proceedings.

Of course, parties cannot stipulate the subject matter jurisdiction of federal courts. Arenas v. United States, 95 F.Supp. 962, 972 (S.D.Cal.1951), aff’d, 197 F.2d 418 (9th Cir. 1952). See United States v. Anderson, 503 F.2d 420 (6th Cir. 1974), Mill Owners Mut. Fire Ins. Co. v. Kelly, 141 F.2d 763, 766 n. 1 (8th Cir. 1944), Commonwealth ex rel. Woods v. Cavell, 157 F.Supp. 272, 276-277 (W.D. Pa.1957), aff’d, 254 F.2d 816 (3rd Cir. 1958). But an alleged “taking” in violation of the Fifth and Fourteenth Amendments presents a “serious constitutional question,” Foster v. Herley, 330 F.2d 87 (6th Cir. 1964), Eleopoulos v. Richmond Development Agency, 351 F.Supp. 63, 64 (N.D.Cal.1972), clearly within the district court’s “federal question jurisdiction.” 28 U.S.C. § 1331 (1970). 2

*201 Even so, the district court could abstain from exercising such jurisdiction. Even if City’s entering into the stipulation is deemed as waiving City’s motion to dismiss for abstention reasons, the district court still properly raised the abstention issue because the propriety of a district court’s raising abstention sua sponte is well-settled. Louisiana Power & Light Co. v. City of Thibodaux, 360 U.S. 25, 79 S.Ct. 1070, 3 L.Ed.2d 1058 (1959); Empire Pictures Distributing Co. v. City of Fort Worth, 273 F.2d 529 (5th Cir. 1960); Mitchell Family Planning, Inc. v. City of Royal Oak, 335 F.Supp. 738, 740 (E.D.Mich.1972).

Recently, this court 3 and the Supreme Court 4 have focused on “the oft-mentioned, but seldom fully understood, issue of abstention.” 5 Though abstention, being an equitable doctrine, often turns on case-by-case facts, 6 courts generally have recognized the purposes of abstention as including the avoidance of premature and unnecessary decisions of federal constitutional law 7 and of “any [unnecessary] possible irritant[s] in the federal-state relationship.” Reetz v. Boza-nich, 397 U.S. 82, 87, 90 S.Ct. 788, 790, 25 L.Ed.2d 68 (1970).

The Supreme Court several times has dealt with abstention in eminent domain 8 contexts. Martin v. Creasy, 360 U.S. 219, 79 S.Ct. 1034, 3 L.Ed.2d 1186 (1959), rev’g 160 F.Supp. 404 (W.D.Pa. 1958), is the closest to being on-point because it, like the instant complaint, invoked the district court’s federal question jurisdiction. 9 In Martin, plaintiffs claimed that a state statute unconstitutionally limited compensable “takings.” Though the district court originally stayed its exercise of jurisdiction pend *202 ing plaintiffs’ resort to state courts, 10 it later exercised its jurisdiction because of its view that continuing its stay would irreparably harm plaintiffs. The Supreme Court found that such exercise was error.

“The circumstances which should impel a federal court to abstain from blocking the exercise by state officials of their appropriate functions are present here in a marked degree. Reflected among the concerns which have traditionally counseled a federal court to stay its hand are the desirability of avoiding unseemly conflict between two sover-eignties, the unnecessary impairment of state functions, and the premature determination of constitutional questions. All those factors are present here.” 360 U.S. at 224, 79 S.Ct. at 1037 [citations omitted].

Perhaps with a view toward federal judicial economy, the Court found an “additional reason” for abstention in the statute’s varying impact on different landowners.

“Some [landowners] may be completely deprived of access; others may have access to existing roads or service roads to be constructed; still others may have access to the highway itself through points of ingress and egress established under the statute. In the state court proceedings the case of each landowner will be considered separately, with whatever particular problems each case may present.” 360 U.S. at 224-225, 79 S.Ct. at 1037.

In several reported opinions, 11 courts have abstained from exercising their federal question jurisdiction in eminent domain contexts. In Creel v. City of Atlanta, 399 F.2d 777 (5th Cir.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Barr v. Galvin
755 F. Supp. 2d 293 (D. Massachusetts, 2010)
Coles v. City of Philadelphia
145 F. Supp. 2d 646 (E.D. Pennsylvania, 2001)
National Solid Waste Management Ass'n v. Voinovich
763 F. Supp. 244 (S.D. Ohio, 1991)
Gingerich v. White Pigeon Community Schools
736 F. Supp. 147 (W.D. Michigan, 1990)
Bieneman v. City of Chicago
662 F. Supp. 1297 (N.D. Illinois, 1987)
Harllel B. Jones v. Robert Shankland
800 F.2d 77 (Sixth Circuit, 1986)
Philman's, Inc. v. City of West Carrollton
577 F. Supp. 1380 (S.D. Ohio, 1983)
Hayes v. Ohio Department of Public Welfare
556 F. Supp. 58 (S.D. Ohio, 1982)
Land Associates v. Metropolitan Airport Authority
547 F. Supp. 1128 (M.D. Tennessee, 1982)
Coley v. Clinton
635 F.2d 1364 (Eighth Circuit, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
507 F.2d 199, 1974 U.S. App. LEXIS 5782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muskegon-theatres-inc-a-michigan-corporation-v-city-of-muskegon-a-ca6-1974.