VANCE, Circuit Judge:
Appellant T. J. Fountain, Jr. appeals from the district court order dismissing his complaint. The district court dismissed for lack of subject matter jurisdiction two counts of appellant’s complaint alleging denial of his federal constitutional rights. Additionally, the court dismissed a third count of the complaint alleging denial of a federal statutory right for failure to state a claim upon which relief can be granted and declined to exercise jurisdiction over several pendent state claims. We affirm the dismissal of Fountain’s statutory claim but we reverse the district court’s decision as to subject matter jurisdiction over the constitutional claims. At the same time, we believe that the district court should abstain from hearing this case pending the resolution of a parallel claim in state court. Accordingly, we vacate in part the judgment of the district court and remand.
I.
Appellant owns a gasoline service station located at the northeastern corner of the intersection of Howard Avenue and East Lake Drive in Decatur, Georgia. Howard Avenue runs from east to west and is parallel to a nearby railroad track; East Lake Drive runs from north to south, crossing both Howard Avenue and the railroad track at street level. The Metropolitan Atlanta Rapid Transit Authority (MARTA), a state created agency,
proposed to extend the east line of its subway system through Decatur, running between Howard Avenue and the railroad track, slightly to the north of appellant’s service station. MARTA also planned to build a subway station in the vicinity of East Lake Drive.
It became apparent that MARTA’s trains would not be able to stop at the intersection of East Lake Drive and MARTA’s east line due to problems with the grade of the land there. Consequently, during construction of the east line MARTA built the station a short distance to the west of East Lake Drive. In doing so, MARTA also relocated East Lake Drive to the west, away from appellant’s service station, and permanently closed the old East Lake Drive north of the service station. According to the complaint, MARTA blocked off both Howard Avenue and East Lake Drive throughout the period of construction and prevented all vehicular access to appellant’s service station. Appellant also alleges that after the completion of the new East Lake Drive and the nearby portion of the east line, the old East Lake Drive remained closed to through traffic, partially impairing access to the service station.
MARTA lowered the new East Lake Drive to run beneath Howard Avenue and the subway and railroad tracks, necessitating a change in the area’s surface water drainage patterns. Specifically, MARTA determined that it had to construct a dam and a new drainage retention pond in the area. MARTA selected a pond location that included the northern portion of appellant’s property.
MARTA does not have any statutory power of eminent domain.
See
1985 Ga. Laws 2243, 2266 (uncodified).
To implement any of its plans, therefore, MARTA must rely on the county or municipality involved to exercise its powers of eminent domain on behalf of MARTA.
See Metropolitan Atlanta Rapid Transit Authority v. Dairy,
235 Ga. 568, 572-73, 220 S.E.2d 905, 909 (1975). Accordingly, in January 1976 DeKalb County brought a condemnation action in state court on behalf of MARTA seeking a permanent easement to construct and maintain the dam and drainage retention pond on appellant’s property, as well as a temporary construction easement. MARTA did not deem it necessary to seek condemnation of appellant’s property for the alleged impairment of access to the service station during construction of the subway line or thereafter. Appellant counterclaimed in the condemnation suit, however, for damages resulting from the street closings. After extensive legal proceedings, the state court awarded $7,020 in damages for the easements, but dismissed the counterclaim.
The state court determined that the counterclaim was independent of the condemnation action and could only be heard in a separate lawsuit.
While the condemnation case was pending on a second appeal from final judgment, appellant instituted the present action in the United States District Court for the Northern District of Georgia. Appellant’s complaint was essentially one for inverse condemnation. Specifically, the complaint alleged that the street closings amounted to a taking of appellant’s property for a public use without just compensation, in violation of the fifth and fourteenth amendments.
The complaint further alleged that MARTA’s actions deprived him of due process and equal protection of the laws, in violation of the fourteenth amendment.
Appellant’s final federal claim alleged a denial of his rights under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
Additionally, appellant raised pendent state claims, alleging parallel violations of the state constitution and common law trespass. Appellant sought compensatory damages, punitive damages, and attorneys fees.
MARTA moved to dismiss the suit for lack of subject matter jurisdiction or for failure to state a claim upon which relief can be granted. The district court dismissed the suit and this appeal followed. While this appeal was pending, appellant filed an inverse condemnation action in state court asserting the same claims raised in this federal lawsuit. As of the date of oral argument in this case, pleadings had been filed in the state case, but the lawsuit had not yet gone to trial.
II.
The district court dismissed the just compensation claim for lack of subject matter jurisdiction. The court held that an inverse condemnation action could not lie against MARTA because that state agency did not have the power of eminent domain, and that the just compensation claim against MARTA was therefore frivolous.
It is by now axiomatic that the federal courts are tribunals of limited jurisdiction.
See, e.g., Owen Equipment & Erection Co. v. Kroger,
437 U.S. 365, 374, 98 S.Ct. 2396, 2403, 57 L.Ed.2d 274 (1978);
Aldinger v. Howard,
427 U.S. 1, 15, 96 S.Ct. 2413, 2420, 49 L.Ed.2d 276 (1976);
Maxwell v. First National Bank,
638 F.2d 32, 35 (5th Cir. 1981). Both the Constitution and various statutes limit the subject matter of cases that may be heard by the federal courts, and the federal courts should be scrupulous in confining their use of judicial power to the precise limits set by the Constitution and Congress.
Victory Carriers, Inc. v. Law,
404 U.S. 202, 212, 92 S.Ct. 418, 425, 30 L.Ed.2d 383 (1971). Consequently, it is incumbent upon the party seeking to avail himself of federal court jurisdiction to demonstrate the existence of jurisdiction.
See Pettinelli v. Danzig,
644 F.2d 1160, 1162 (5th Cir. 1981).
In this case, appellant has asserted a claim under 42 U.S.C.
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VANCE, Circuit Judge:
Appellant T. J. Fountain, Jr. appeals from the district court order dismissing his complaint. The district court dismissed for lack of subject matter jurisdiction two counts of appellant’s complaint alleging denial of his federal constitutional rights. Additionally, the court dismissed a third count of the complaint alleging denial of a federal statutory right for failure to state a claim upon which relief can be granted and declined to exercise jurisdiction over several pendent state claims. We affirm the dismissal of Fountain’s statutory claim but we reverse the district court’s decision as to subject matter jurisdiction over the constitutional claims. At the same time, we believe that the district court should abstain from hearing this case pending the resolution of a parallel claim in state court. Accordingly, we vacate in part the judgment of the district court and remand.
I.
Appellant owns a gasoline service station located at the northeastern corner of the intersection of Howard Avenue and East Lake Drive in Decatur, Georgia. Howard Avenue runs from east to west and is parallel to a nearby railroad track; East Lake Drive runs from north to south, crossing both Howard Avenue and the railroad track at street level. The Metropolitan Atlanta Rapid Transit Authority (MARTA), a state created agency,
proposed to extend the east line of its subway system through Decatur, running between Howard Avenue and the railroad track, slightly to the north of appellant’s service station. MARTA also planned to build a subway station in the vicinity of East Lake Drive.
It became apparent that MARTA’s trains would not be able to stop at the intersection of East Lake Drive and MARTA’s east line due to problems with the grade of the land there. Consequently, during construction of the east line MARTA built the station a short distance to the west of East Lake Drive. In doing so, MARTA also relocated East Lake Drive to the west, away from appellant’s service station, and permanently closed the old East Lake Drive north of the service station. According to the complaint, MARTA blocked off both Howard Avenue and East Lake Drive throughout the period of construction and prevented all vehicular access to appellant’s service station. Appellant also alleges that after the completion of the new East Lake Drive and the nearby portion of the east line, the old East Lake Drive remained closed to through traffic, partially impairing access to the service station.
MARTA lowered the new East Lake Drive to run beneath Howard Avenue and the subway and railroad tracks, necessitating a change in the area’s surface water drainage patterns. Specifically, MARTA determined that it had to construct a dam and a new drainage retention pond in the area. MARTA selected a pond location that included the northern portion of appellant’s property.
MARTA does not have any statutory power of eminent domain.
See
1985 Ga. Laws 2243, 2266 (uncodified).
To implement any of its plans, therefore, MARTA must rely on the county or municipality involved to exercise its powers of eminent domain on behalf of MARTA.
See Metropolitan Atlanta Rapid Transit Authority v. Dairy,
235 Ga. 568, 572-73, 220 S.E.2d 905, 909 (1975). Accordingly, in January 1976 DeKalb County brought a condemnation action in state court on behalf of MARTA seeking a permanent easement to construct and maintain the dam and drainage retention pond on appellant’s property, as well as a temporary construction easement. MARTA did not deem it necessary to seek condemnation of appellant’s property for the alleged impairment of access to the service station during construction of the subway line or thereafter. Appellant counterclaimed in the condemnation suit, however, for damages resulting from the street closings. After extensive legal proceedings, the state court awarded $7,020 in damages for the easements, but dismissed the counterclaim.
The state court determined that the counterclaim was independent of the condemnation action and could only be heard in a separate lawsuit.
While the condemnation case was pending on a second appeal from final judgment, appellant instituted the present action in the United States District Court for the Northern District of Georgia. Appellant’s complaint was essentially one for inverse condemnation. Specifically, the complaint alleged that the street closings amounted to a taking of appellant’s property for a public use without just compensation, in violation of the fifth and fourteenth amendments.
The complaint further alleged that MARTA’s actions deprived him of due process and equal protection of the laws, in violation of the fourteenth amendment.
Appellant’s final federal claim alleged a denial of his rights under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970.
Additionally, appellant raised pendent state claims, alleging parallel violations of the state constitution and common law trespass. Appellant sought compensatory damages, punitive damages, and attorneys fees.
MARTA moved to dismiss the suit for lack of subject matter jurisdiction or for failure to state a claim upon which relief can be granted. The district court dismissed the suit and this appeal followed. While this appeal was pending, appellant filed an inverse condemnation action in state court asserting the same claims raised in this federal lawsuit. As of the date of oral argument in this case, pleadings had been filed in the state case, but the lawsuit had not yet gone to trial.
II.
The district court dismissed the just compensation claim for lack of subject matter jurisdiction. The court held that an inverse condemnation action could not lie against MARTA because that state agency did not have the power of eminent domain, and that the just compensation claim against MARTA was therefore frivolous.
It is by now axiomatic that the federal courts are tribunals of limited jurisdiction.
See, e.g., Owen Equipment & Erection Co. v. Kroger,
437 U.S. 365, 374, 98 S.Ct. 2396, 2403, 57 L.Ed.2d 274 (1978);
Aldinger v. Howard,
427 U.S. 1, 15, 96 S.Ct. 2413, 2420, 49 L.Ed.2d 276 (1976);
Maxwell v. First National Bank,
638 F.2d 32, 35 (5th Cir. 1981). Both the Constitution and various statutes limit the subject matter of cases that may be heard by the federal courts, and the federal courts should be scrupulous in confining their use of judicial power to the precise limits set by the Constitution and Congress.
Victory Carriers, Inc. v. Law,
404 U.S. 202, 212, 92 S.Ct. 418, 425, 30 L.Ed.2d 383 (1971). Consequently, it is incumbent upon the party seeking to avail himself of federal court jurisdiction to demonstrate the existence of jurisdiction.
See Pettinelli v. Danzig,
644 F.2d 1160, 1162 (5th Cir. 1981).
In this case, appellant has asserted a claim under 42 U.S.C. § 1983.
Specifically, he claims that MARTA, a state agency acting under color of state law, deprived him of the beneficial use of his property for
a public purpose during the construction of the east line and thereafter without providing just compensation. He therefore contends that MARTA deprived him of his constitutional rights while acting under col- or of state law. We hold that this claim meets the threshold jurisdictional requirements of 28 U.S.C. § 1343(3) because it is well established that “where the complaint, as here, is so drawn as to seek recovery directly under the Constitution or laws of the United States, the federal court ... must entertain the suit.”
Bell v. Hood,
327 U.S. 678, 681-82, 66 S.Ct. 773, 775-76, 90 L.Ed. 939 (1946).
See also Hagans v. Lavine,
415 U.S. 528, 538-39, 94 S.Ct. 1372, 1379-80, 39 L.Ed.2d 577 (1974);
Silva v. Vowell,
621 F.2d 640, 645-46 (5th Cir. 1980),
cert. denied,
449 U.S. 1125, 101 S.Ct. 941 (1981);
Southpark Square Ltd. v. City of Jackson,
565 F.2d 338, 341 (5th Cir. 1977),
cert. denied,
436 U.S. 946, 98 S.Ct. 2849, 56 L.Ed.2d 787 (1978).
There are two exceptions to the general rule of
Bell v. Hood.
Even if a complaint alleges injury to federal rights, the courts should not entertain the lawsuit “where the alleged claim under the Constitution or federal statutes clearly appears to be immaterial and made solely for the purpose of obtaining jurisdiction or where such a claim is wholly insubstantial and frivolous.”
Bell v. Hood,
327 U.S. at 682-83, 66 S.Ct. at 776;
accord, Wohlfahrt v. Memorial Medical Center,
658 F.2d 416, 417 (5th Cir. 1981).
MARTA argues that appellant’s claim under the just compensation clause is immaterial to the underlying dispute. MARTA contends that this suit is really an inverse condemnation action under state law and that the federal issues raised are merely “lurking in the background.”
See Johnston v. Byrd,
354 F.2d 982, 984 (5th Cir. 1965). This argument is without merit, for appellant has flatly alleged that an unconstitutional taking of his property has occurred. Whatever rights appellant may have under state law, it is obvious that the federal Constitution protects him from official takings of property for public use without just compensation.
See Webb’s Fabulous Pharmacies, Inc. v. Beckwith,
449 U.S. 155, 160, 101 S.Ct. 446, 450, 66 L.Ed.2d 358 (1980) (just compensation clause is incorporated into the fourteenth amendment). The constitutional claim in this case is “not merely a background issue but instead constitute[s] not only the gist but the whole foreground of the lawsuit.”
Creel v. City of Atlanta,
399 F.2d 777, 778 (5th Cir. 1968).
We think that it is equally apparent that the just compensation claim is not “insubstantial and frivolous.” For jurisdictional purposes, a complaint is wholly insubstantial and frivolous only when “its unsoundness so clearly results from the previous decisions of [the Supreme Court] as to foreclose the subject and leave no room for the inference that the questions sought to be raised can be the subject of controversy.”
Goosby v. Osser,
409 U.S. 512, 518, 93 S.Ct. 854, 858, 35 L.Ed.2d 36 (1973),
quoted in Hagans v. Lavine,
415 U.S. at 538, 94 S.Ct. at 1379.
See also Curtis v. Taylor,
625 F.2d 645, 649-50 (5th Cir.),
modified,
648 F.2d 946 (5th Cir. 1980);
Bussey v. Harris,
611 F.2d 1001, 1006-07 (5th Cir. 1980). Neither the Supreme Court nor this court has handed down any decision stating that a person whose property is allegedly taken for public use cannot raise objections under the federal Constitution in federal court. Indeed, a host of cases proclaim the contrary.
See, e.g., Lake County Estates, Inc. v. Tahoe Regional Planning Agency,
440 U.S. 391, 99 S.Ct. 1171, 59 L.Ed.2d 401 (1979) (attack on land use ordinance cognizable in federal court);
Penn Central Transportation Co. v.
City of New York,
438 U.S. 104, 98 S.Ct. 2646, 57 L.Ed.2d 631 (1978) (federal constitutional attack on local zoning ordinance as uncompensated taking heard in federal court);
Chicago, Burlington & Quincy R.R. v. City of Chicago,
166 U.S. 226, 17 S.Ct. 581, 41 L.Ed. 979 (1897) (just compensation clause restricts states from taking private property for public use without just compensation);
Hernandez v. City of Lafayette,
643 F.2d 1188 (5th Cir. 1981) (federal court entertains damages action under 42 U.S.C. § 1983 and the just compensation clause),
appeal
dismissed,-U.S.-, 102 S.Ct. 1242, 71 L.Ed.2d 440 (1982).
The district court nonetheless held that this particular claim was frivolous and insubstantial because it named as defendant an official entity that lacked eminent domain power. Initially, the district court cited no apposite authority from either this circuit or the Supreme Court to substantiate its position.
Consequently, we fail to see how it could have concluded that the issue was foreclosed by prior binding authority as is required before an otherwise colorable federal claim may be dismissed on jurisdictional grounds.
See Curtis v. Taylor,
625 F.2d at 649-50 (jurisdiction of district court properly invoked when constitutional issue raised is not clearly foreclosed, even if issue does not appear to be of serious moment).
More importantly, however, we disagree with the basic premise of the district court that an inverse condemnation action will not lie against MARTA because it does not have the power of eminent domain. A taking occurs whenever a public entity substantially deprives a private party of the beneficial use of his property for a public purpose.
Pumpelly v. Green Bay Co.,
80 U.S. (13 Wall.) 166, 177-78, 20 L.Ed. 557 (1872);
Richmond Elks Hall Association v. Richmond Redevelopment Agency,
561 F.2d 1327, 1330 (9th Cir. 1977). Normally, an official taking of private property occurs when a governmental body exercises its eminent domain power in a condemnation proceeding. The state can, however, deprive an individual of his property without instituting formal condemnation proceedings to force the transfer of title. In those instances the party deprived of his property may bring an inverse condemnation action to compel payment of just compensation for the property seized or impaired.
See San Diego Gas & Electric Co. v. City of San Diego,
450 U.S. 621, 651, 101 S.Ct. 1287, 1303, 67 L.Ed.2d 551 (1981) (Brennan, J., dissenting). Definitionally, the concept of an unconstitutional taking does not turn on which public agency deprived a private party of the use of his property, but rather, turns on the fact of deprivation for public use. Cf.
Lac Courte Oreilles Band of Lake Superior Chippewa Indians v. Federal Power Commission,
510 F.2d 198, 207 n.36 (D.C. Cir.1975) (“public use” turns on actual purpose for which property is taken, not on identity of operator). If official authorities act on behalf of the state so as to take private property for public use without just compensation, even if they are acting outside of the scope of their official powers, they have violated the fifth and fourteenth amendments and are subject to an inverse condemnation suit.
Katz
v.
State of Connecticut,
307 F.Supp. 480, 482 (D.Conn. 1969),
aff’d,
433 F.2d 878 (2d Cir. 1970). As long as the state acts through one of its
arms in such a way as to deprive an individual of his property for public use, it is irrelevant whether the state arm doing the actual taking has eminent domain power. The party deprived of his property may challenge the constitutionality of the uncompensated deprivation by bringing an inverse condemnation action in federal court.
The district court cited a number of cases to support its theory that an official entity that does not have eminent domain power may not be sued for inverse condemnation. Most of them are clearly distinguishable from this case.
Only one case cited by the district court directly supports its decision. In
Jacobson v. Tahoe Regional Planning Agency,
566 F.2d 1353, 1358 (9th Cir. 1977),
aff’d in part, rev’d in part sub nom Lake County Estates, Inc. v. Tahoe Regional Planning Agency,
440 U.S. 391, 99 S.Ct. 1171, 59 L.Ed.2d 401 (1979), the court dismissed an inverse condemnation claim against the Agency because it lacked eminent domain powers.
We cannot agree with the ninth circuit’s decision in
Jacobson
because we believe that application of the rule in that case would undermine the force of the just compensation clause. If a private party were unable to seek redress under the just compensation clause when an official agency acts outside its statutory powers and takes property for public use, the state would be able to escape liability under the just compensation clause by taking property through agencies without statutory powers of eminent domain. We think that the threat of this kind of shell game ought to be avoided, and we are not particularly worried about the niceties of payment for the alleged taking. It is enough for our purposes that MARTA has allegedly deprived appellant of his property for public use without just compensation.
See Le
noir v. Porters Creek Watershed District,
586 F.2d 1081, 1085, 1096 (6th Cir. 1978).
In this case, MARTA is an official agency invested with many official powers. Its conduct is state action. Appellant alleges that MARTA has taken his property for public use without just compensation. This allegation suffices to provide the federal court with jurisdiction to hear his case, notwithstanding MARTA’s lack of statutory authority to condemn private property.
III.
Having concluded that the district court has jurisdiction to hear this case, we nonetheless believe that the district court should abstain from holding any further proceedings pending the outcome of the parallel action now before the state court. As has been noted many times before, a suit involving state condemnation of private property is primarily a local matter that is best left to the state courts.
See, e.g., Martin
v.
Creasy,
360 U.S. 219, 224-25, 79 S.Ct. 1034, 1037-38, 3 L.Ed.2d 1186 (1959);
Louisiana Power & Light Co.
v.
City of Thibodaux,
360 U.S. 25, 28, 79 S.Ct. 1070, 1072-73, 3 L.Ed.2d 1058 (1959);
Madisonville Traction Co. v. St. Bernard Mining Co.,
196 U.S. 239, 257, 25 S.Ct. 251, 258, 49 L.Ed. 462 (1905);
Creel v. City of Atlanta,
399 F.2d at 779. However, the federal courts should not abstain merely because local condemnation is involved. Only in those instances in which other exceptional circumstances exist should the federal court abstain once its jurisdiction is properly invoked.
County of Allegheny v. Frank Mashuda Co.,
360 U.S. 185, 188-89, 79 S.Ct. 1060, 1062-63, 3 L.Ed.2d 1163 (1959).
This case presents several such unusual circumstances. By filing a parallel inverse condemnation action in state court, appellant has raised the possibility of inconsistent judgments as to the basic issue whether a taking occurred. Additionally, should both suits proceed and plaintiff prevail in each, insuperable difficulties might arise over the proper remedy. Presumably the plaintiff would be entitled to relief in both suits, but each court would have difficulty implementing its decision absent some control over the actions of the other court. Finally, it appears from oral argument that this particular case involves novel questions of state law regarding the nature of a taking when vehicular access to property is only impaired. Resolution of those issues of Georgia law bears upon important public policies of that state which “transcend[ ] the result of the case ... at bar.”
Colorado River Water Conservation District v. United States,
424 U.S. 800, 814, 96 S.Ct. 1236, 1244, 47 L.Ed.2d 483 (1976) (citing
Louisiana Power & Light Co. v. City of Thibodaux,
360 U.S. at 28, 79 S.Ct. at 1072-73).
See also Cox v. Planning District I Community Mental Health and Mental Retardation Services Board,
669 F.2d 940, 942 (4th Cir. 1982) (abstention appropriate when parallel state lawsuit implicating issues of extraordinary importance to state policies is pending). In short, we believe that these issues are better resolved in a single proceeding in state court. This court has previously determined that abstention is appropriate in a case factually indistinguishable from this one.
See Creel v. City of Atlanta,
399 F.2d at 779;
accord, Luedtke v. County of Milwaukee,
521 F.2d 387, 390 (7th Cir. 1975);
cf. Shamrock Development Co. v. City of Concord,
656 F.2d 1380,1384-85 (9th Cir. 1981) (district court’s explicit refusal to abstain in similar setting is not abuse of discretion, although abstention would have been warranted). We believe abstention is equally appropriate here.
IV.
We conclude that the district court erred in dismissing this lawsuit for want of subject matter jurisdiction. Nonetheless, we believe that the district court should abstain from hearing this case on the merits. We therefore vacate the judgment of the district court and remand with instructions to abstain and to retain jurisdiction until it becomes apparent that appellant cannot obtain an adjudication on the merits of his claims in state court.
AFFIRMED IN PART, VACATED IN PART, AND REMANDED WITH INSTRUCTIONS.