Safe Streets Alliance v. Hickenlooper

859 F.3d 865, 2017 WL 2454359
CourtCourt of Appeals for the Tenth Circuit
DecidedJune 7, 2017
Docket16-1048, 16-1095, 16-1266
StatusPublished
Cited by235 cases

This text of 859 F.3d 865 (Safe Streets Alliance v. Hickenlooper) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Safe Streets Alliance v. Hickenlooper, 859 F.3d 865, 2017 WL 2454359 (10th Cir. 2017).

Opinions

BRISCOE, Circuit Judge.

These three appeals arise from two cases that concern the passage, implementation, and alleged effects of Amendment 64 to the Colorado Constitution, Colo. Const, art. XVIII, § 16. Amendment 64 repealed many of the State’s criminal and civil proscriptions on “recreational marijuana,” 1 and created a regulatory regime designed to ensure that marijuana is unadulterated and taxed, and that those operating marijuana-related enterprises are, from the State’s perspective, licensed and qualified to do so. Of course, what Amendment 64 did not and could not do was amend the United States Constitution or the Controlled Substances Act (CSA), 21 U.S.C. §§ 801-904, under which manufacturing, distributing, selling, and possessing with intent to distribute marijuana remains illegal in Colorado. See U.S. Const, art. VI, cl. 2. The three appeals at issue and two related motions to intervene raise four principal disputes stemming from the alleged conflict between the CSA and Colorado’s new regime.

Two of the appeals were brought in Safe Streets Alliance v. Alternative Holistic Healing, LLC. First, in No. 16-1266, two Colorado landowners challenge the district court’s dismissal of their claims brought under the citizen-suit provision of the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1964(c), against certain affiliates of a State- and county-licensed marijuana manufactory that allegedly has injured the landowners’ [877]*877adjacent property. We conclude that the landowners have plausibly alleged at least one § 1964(c) claim against each of those defendants. We therefore reverse, in part, the dismissal of those claims and remand for further proceedings.

Second, in No. 16-1048, those landowners and an interest group to which they belong appeal the district court’s dismissal of their purported causes of action “in equity” against Colorado and one of its counties for ostensibly also having injured the landowners’ property by licensing that manufactory. The landowners and the interest group allege that Amendment 64’s regime is preempted by the CSA, pursuant to the Supremacy Clause, U.S. Const, art. VI, cl. 2; and the CSA’s preemption provision, 21 U.S.C. § 903.2 We conclude that neither the landowners nor the interest group purport to have any federal substantive rights that have been injured by Colorado or the county’s actions. And because they have no substantive rights in the CSA to vindicate, it follows inexorably that they cannot enforce § 903 “in equity” to remedy their claimed injuries. We therefore affirm the dismissal of their preemption claims.

The third appeal, No. 16-1095, was filed in Smith v. Hickenlooper. In that case, a group of Colorado, Kansas, and Nebraska sheriffs and county attorneys sued Colorado on similar theories that Amendment 64’s regime is preempted by the CSA. The district court dismissed their claims, and we consolidated the appeal with No. 16-1048. Because those plaintiffs also do not claim injuries to their federal substantive rights, we likewise affirm.

Finally, the States of Nebraska and Oklahoma moved to intervene in Safe Streets Alliance and Smith while they were pending on appeal. Those States claim that Amendment 64 injures their sovereign interests and those of their citizens, and that its enforcement is preempted by the CSA. We granted their motion in No. 16-1048 and heard their arguments, which confirmed that their controversy is with Colorado. Given that fact, we must confront 28 U.S.C. § 1251(a), which forbids us from exercising jurisdiction over controversies between the States. We therefore cannot permit Nebraska and Oklahoma to intervene, or even confirm that they have a justiciable controversy that may be sufficient for intervention. Consequently, we vacate the order granting intervention in Safe Streets Alliance and deny the States’ motions in both cases.

I. Standards of Review

Before addressing each of those issues, we first discuss the applicable standards of review. The district court dismissed the claims before it on the basis of Federal Rules of Civil Procedure 12(b)(1) and (6). Rule 12(b)(1) “allows a court to dismiss a complaint for lack of subject matter jurisdiction. If the district court did so without taking evidence, as the court did here, our review is de novo.” Pueblo of Jemez v. United States, 790 F.3d 1143, 1151 (10th Cir. 2015) (citing Becker v. Ute Indian Tribe, 770 F.3d 944, 946 (10th Cir. 2014)). Such a “facial attack on the complaint’s allegations as to subject matter jurisdiction questions the sufficiency of the [878]*878complaint,” and the “district court must accept the allegations in the complaint as true.” Id. at 1148 n.4 (citation omitted). We also accept those factual allegations as true in conducting our de novo review. Id.

“Federal courts are courts of limited jurisdiction, possessing only that power authorized by Constitution and statute.” Id at 1151 (quoting Gunn v. Minton, 568 U.S. 251, 133 S.Ct. 1059, 1064, 185 L.Ed.2d 72 (2013)). “[FJederal subject matter jurisdiction is elemental,” and “must be established in every cause under review in the federal courts.” Id. (quoting Firstenberg v. City of Santa Fe, 696 F.3d 1018, 1022 (10th Cir. 2012)). The “burden of establishing” a federal court’s subject matter jurisdiction “rests upon the party asserting jurisdiction.” Id. (citation omitted). “A court lacking jurisdiction cannot render judgment but must dismiss the cause at any stage of the proceedings in which it becomes apparent that jurisdiction is lacking.” Id. (quoting Full Life Hospice, LLC v. Sebelius, 709 F.3d 1012, 1016 (10th Cir. 2013)). For that reason, “[w]e also review” a district court’s rulings on Article III “standing de novo.” Niemi v. Lasshofer, 770 F.3d 1331, 1344 (10th Cir. 2014) (citation omitted).

Further, “[w]e review a Rule 12(b)(6) dismissal de novo.” George v. Urban Settlement Servs., 833 F.3d 1242, 1247 (10th Cir. 2016) (citation omitted). “A pleading is required to contain ‘a short and plain statement of the claim showing that the pleader is entitled to relief.’ ” SEC v. Shields, 744 F.3d 633, 640 (10th Cir. 2014) (quoting Fed. R. Civ. P. 8(a)(2)). “We accept as true all well-pleaded factual allegations in the complaint and view them in the light most favorable to the” plaintiff. Id. (quoting Burnett v. Mortg. Elec. Registration Sys., Inc., 706 F.3d 1231, 1235 (10th Cir. 2013)). We then “determine whether the plaintiff has provided ‘enough facts to state a claim to relief that is plausible on its face.’ ” George, 833 F.3d at 1247 (quoting Hogan v. Winder, 762 F.3d 1096, 1104 (10th Cir. 2014)).

“In determining the plausibility of a claim, we look to the elements of the particular cause of action, keeping in mind that the Rule 12(b)(6) standard [does not] require a plaintiff to ‘set forth a prima facie case for each element.’ ” Id. (quoting Khalik v. United Air Lines, 671 F.3d 1188, 1192-93 (10th Cir. 2012)).

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859 F.3d 865, 2017 WL 2454359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safe-streets-alliance-v-hickenlooper-ca10-2017.