United States v. Marion County School District

625 F.2d 607
Court of Appeals for the Fifth Circuit·Decided October 23, 1980·No. 78-3510·Published·Cited by 39 cases

Opinion

FRANK M. JOHNSON, Jr., Circuit Judge:

This is an appeal by the United States from the dismissal of its complaint against the Marion County school district and school board, the members of the school board, and the school district superintendent.

When reviewing the sufficiency of a complaint against a motion to dismiss, the allegations of the complaint are to be taken as true. No citation of authority is necessary to sustain this basic proposition. Thus, from the allegations of the government’s complaint, the defendants have followed and continue to follow a policy of racial discrimination against blacks in the assignment of students in the Marion County public schools. 1 As further appears, the *609 defendants, in exchange for the substantial amount of financial assistance the school district receives from the federal government each year, furnished assurances to the Department of Health, Education and Welfare (HEW) that in operating the school district they would comply with Title YI of the Civil Rights Act of 1964 and thus, not discriminate on the basis of race, color or national origin. 2 There is no question but that the discriminatory practices engaged in by the defendants, as the United States alleges in its complaint, constitute violations of these assurances.

The United States sought redress in the form of a court order compelling specific performance of the assurances by the defendants. 3 The district court held that the United States had no authority to maintain such a suit and for this reason dismissed the complaint.

We reverse. It is settled law that the United States has authority to fix the terms and conditions upon which its money' allotments to state and other governmental entities should be disbursed. Lau v. Nichols, 414 U.S. 563, 569, 94 S.Ct. 786, 789, 39 L.Ed.2d 1 (1974); King v. Smith, 392 U.S. 309, 333, 88 S.Ct. 2128, 2141, 20 L.Ed.2d 1118 (1968); Ivanhoe Irrigation District v. McCracken, 357 U.S. 275, 295, 78 S.Ct. 1174, 1185, 2 L.Ed.2d 1313 (1958); Oklahoma v. Civil Service Commission, 330 U.S. 127, 143, 67 S.Ct. 544, 553, 91 L.Ed. 794 (1947). As the Supreme Court has long recognized, the United States may attach conditions to a grant of federal assistance, the recipient of the grant is obligated to perform the conditions, and the United States has an inherent right to sue for enforcement of the recipient’s obligation in court. E. g., Rex Trailer Co. v. United States, 350 U.S. 148, 151, 76 S.Ct. 219, 221, 100 L.Ed. 149 (1956); United States v. San Francisco, 310 U.S. 16, 31, 60 S.Ct. 749, 757, 84 L.Ed. 1050 (1940); Cotton v. United States, 52 U.S. (11 How.) 229, 231, 13 L.Ed. 675 (1850); Dugan v. United States, 16 U.S. (3 Wheat.) 172, 181, 4 L.Ed. 362 (1818). 4 Such suits are not new to the area of ‘civil rights.’ See, e. g., United *610 States v. Harrison County, Mississippi, 399 F.2d 485 (5th Cir. 1968), cert. denied, 397 U.S. 918, 90 S.Ct. 925, 25 L.Ed.2d 99 (1970); United States v. Sumter County School District, 232 F.Supp. 945 (E.D.S.C.1964); United States v. County School Board, 221 F.Supp. 93 (E.D.Va.1963). See also Halderman v. Pennhurst State School & Hospital, 612 F.2d 84 (3d Cir. 1979) (en banc), cert. granted limited to other issues, - U.S. -, 100 S.Ct. 2984, 65 L.Ed.2d-(1980); United States v. Mattson, 600 F.2d 1295 (9th Cir. 1979); United States v. Solomon, 563 F.2d 1121 (4th Cir. 1977); Drennon v. Philadelphia General Hospital, 428 F.Supp. 809 (E.D.Pa.1977). 5

*611 The basis of the district court’s decision not to recognize the United States’ right to sue on its contract in this case was the court’s conclusion that Congress has deliberately nullified the right where, as here, the contractual obligations the United States seeks to enforce are assurances of nondiscrimination in the operation of public schools.

This conclusion was mistaken. As noted, it is well established that the government’s right to sue to enforce its contracts exists as a matter of federal common law, without necessity of a statute. E. g., United States v. Tingey, 30 U.S. (5 Pet.) 115, 127-28, 8 L.Ed. 66 (1831) (Story, J.) (calling the right “an incident to the general right of sovereignty”). See United States v. Kearns, 595 F.2d 729, 732 (D.C.Cir. 1978); Hart & Wechsler’s The Federal Courts and The Federal System 1301-02 (2d ed. 1973) (citing cases). Congress may nullify the right, but, as the Supreme Court has repeatedly emphasized, courts are entitled to conclude that Congress has done so only if the evidence of Congress’ intent is extremely, even unmistakably, clear. See, e. g., United States v. United Mine Workers, 330 U.S. 258, 272, 67 S.Ct. 677, 686, 91 L.Ed. 884 (1947) (“old and well-known rule that statutes which in general terms divest pre-ex-isting rights or privileges will not be applied to the sovereign without express words to that effect’’). 6

Contrary to the determination of the district court, and to the arguments of the defendants on appeal, there is no persuasive, much less unmistakable, evidence that Congress intended to eradicate or even restrict the United States’ right to sue to enforce contractual assurances of nondiscrimination in the operation of public schools.

It is true, as the district court found, that the Civil Rights Act of 1964 — the legislative expression on which the defendants and the district court place principal reliance — expressly establishes a number of alternative means by which the government may act to eliminate discrimination in the operation of federally-funded public schools. These include, as the district court noted, (1) informal administrative efforts to achieve voluntary compliance with Title Vi’s prohibition of discrimination in the operation of programs receiving federal as *612 sistance, 7 (2) formal administrative fund termination proceedings under Title VI, 8 (3) suits by the Attorney General under Title IV in response to private complaints, 9

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United States v. Marion County School District, 625 F.2d 607 (5th Cir. 1980).

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