United States Ex Rel. Long v. SCS Business & Technical Institute, Inc.

173 F.3d 890, 43 Cont. Cas. Fed. 77,461, 335 U.S. App. D.C. 351, 15 I.E.R. Cas. (BNA) 32, 1999 U.S. App. LEXIS 8269, 1999 WL 252644
Court of Appeals for the D.C. Circuit·Decided April 30, 1999·No. 98-5133, 98-5149 and 98-5150·Published·Cited by 26 cases

Opinion

Opinion for the Court filed by Circuit Judge SILBERMAN.

Supplemental Opinion

SILBERMAN, Circuit Judge:

In the same week that our opinion issued, the Fifth Circuit held that the Eleventh Amendment bars a False Claims Act qui tam suit against a state in federal court. See United States ex rel. Foulds v. Texas Tech University, 171 F.3d 279 (5th Cir.1999). The court thought it was obliged to decide that issue before reaching the question we decided — whether the statute provides for a qui tam action against a state — because the Eleventh Amendment issue is jurisdictional. Although we certainly discussed the serious nature of the Eleventh Amendment issue as it bore on our order of decision, we did not consider whether, as a matter of judicial authority, we too were obliged to decide that issue. Since our sister circuit implicitly challenged our jurisdiction— even though no party before us did — and our mandate has not issued, under these unusual circumstances, we think it appropriate to issue this supplemental opinion to explain why we believe we should stick with the order of decision we adopted.

The Fifth Circuit reasoned as follows: since the question whether a relator can sue a state under the Act is a cause of action or merits question, and since the question whether a federal court can hear such a suit under the Eleventh Amendment is a jurisdictional one, the latter must be resolved before the former. See id. at 286. The principal authority that the Fifth Circuit relied on is Steel Co. v. Citizens for a Better Environment, 523 U.S. 83, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998), in which the Supreme Court held that a question of Article III standing must be decided before the statutory question whether a cause of action exists. See id. at -, 118 S.Ct. at 1012-16. In so holding, the Court rejected the doctrine of “hypothetical jurisdiction,” under which lower courts — including this one, see, e.g., Cross-Sound Ferry Servs., Inc. v. ICC, 934 F.2d 327, 333 (D.C.Cir.1991) — had assumed jurisdiction in order to reach the merits, where the merits question was easier and the prevailing party on the merits would be the same as the prevailing party were jurisdiction denied. See Steel Co., 523 U.S. at -, 118 S.Ct. at 1012 (disapproving of Cross-Sound and other lower court decisions). The doctrine, the Court said, is *892 flatly inconsistent with core principles limiting the role of Article III courts: “For a court to pronounce upon the meaning or the constitutionality of a state or federal law when it has no jurisdiction to do so is, by very definition, for a court to act ultra vires.” Id. at -, 118 S.Ct. at 1016.

We did not address this Steel Co. question in our opinion, we confess, because we did not focus on it. Indeed, New York— whose immunity from suit is at stake— specifically urged us, apparently unlike Texas in Foulds, to decide the statutory question first on the ground that noncon-stitutional grounds should be considered before constitutional ones. Admittedly, we ordinarily are obliged to raise jurisdictional questions on our own, so the parties’ litigating tactics would not excuse our oversight. Still, the Eleventh Amendment bar on suits against the states in federal court is not a garden variety jurisdictional issue. Although the Amendment speaks in terms of the limits of the judicial power, see U.S. Const. Amend. XI (“The Judicial power of the United States shall not be construed to extend....”), a state can waive its Eleventh Amendment defense and consent to suit in federal court, and the Supreme Court has held that there is no obligation for the Court to raise the issue sua sponte. See Wisconsin Dep’t of Corrections v. Schacht, 524 U.S. 381, -, 118 S.Ct. 2047, 2052-53, 141 L.Ed.2d 364 (1998) (citing Atascadero State Hsp. v. Scanlon, 473 U.S. 234, 241, 105 S.Ct. 3142, 87 L.Ed.2d 171 (1985) and Patsy v. Board of Regents of Fla., 457 U.S. 496, 515 n. 19, 102 S.Ct. 2557, 73 L.Ed.2d 172 (1982)).

To be sure, the Court has also held that the “Eleventh Amendment defense sufficiently partakes of the nature of a jurisdictional bar so that it need not be raised in the trial court,” Edelman v. Jordan, 415 U.S. 651, 678, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974); see Burkhart v. Washington Metropolitan Area Transit Authority, 112 F.3d 1207, 1216 (D.C.Cir.1997), and indeed can be raised for the first time in the Supreme Court, see Ford Motor Co. v. Department of Treasury, 323 U.S. 459, 467, 65 S.Ct. 347, 89 L.Ed. 389 (1945). Given these somewhat conflicting rules, see Schacht, 524 U.S. at -, 118 S.Ct. at 2055 (Kennedy, J., concurring), the Court has frankly recognized that the Eleventh Amendment is a rather peculiar kind of “jurisdictional” issue. See Calderon v. Ashmus, 523 U.S. 740, - n. 2, 118 S.Ct. 1694, 1697 n. 2, 140 L.Ed.2d 970 (1998) (“While the Eleventh Amendment is jurisdictional in the sense that it is a limitation on the federal court’s judicial power, and therefore can be raised at any stage of the proceedings, we have recognized that it is not coextensive with the limitations on judicial power in Article III.”); Idaho v. Coeur d’Alene Tribe of Idaho, 521 U.S. 261, 267, 117 S.Ct. 2028, 138 L.Ed.2d 438 (1997) (“The Amendment, in other words, enacts a sovereign immunity from suit, rather than a nonwaivable limit on the federal judiciary’s subject-matter jurisdiction.”). The Court’s most recent opinion noted that the question whether Eleventh Amendment immunity is a matter of subject matter jurisdiction is an open one. See Schacht, 524 U.S. at -, 118 S.Ct. at 2054.

New York’s explicit request that we first decide the statutory question could therefore be seen as a kind of agreement to assert its Eleventh Amendment defense only if it loses on the statutory one (a “springing” defense, as it were). As the Supreme Court has recently made clear, “[t]he Eleventh Amendment ... does not automatically destroy original jurisdiction,” but instead “grants the State a legal power to assert a sovereign immunity defense should it choose to do so.” Schacht, 524 U.S. at -, 118 S.Ct. at 2052 (emphasis added). A state can waive its immunity from suit in the context of a litigation, see, e.g., Ford Motor Co., 323 U.S. at 467-69, 65 S.Ct. 347, as long as it does so unequivocally, see Atascadero, 473 U.S. at 246-47, 105 S.Ct. 3142. Although there are difficult questions about whether *893

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United States Ex Rel. Long v. SCS Business & Technical Institute, Inc., 173 F.3d 890, 43 Cont. Cas. Fed. 77,461, 335 U.S. App. D.C. 351, 15 I.E.R. Cas. (BNA) 32, 1999 U.S. App. LEXIS 8269, 1999 WL 252644 (D.C. Cir. 1999).

173 F.3d 890 (United States Ex Rel. Long v. SCS Business & Technical Institute, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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