United States v. State of North Carolina

192 F. Supp. 3d 620, 2016 U.S. Dist. LEXIS 82738, 2016 WL 3561726
CourtDistrict Court, M.D. North Carolina
DecidedJune 23, 2016
Docket1:16cv425
StatusPublished
Cited by2 cases

This text of 192 F. Supp. 3d 620 (United States v. State of North Carolina) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. State of North Carolina, 192 F. Supp. 3d 620, 2016 U.S. Dist. LEXIS 82738, 2016 WL 3561726 (M.D.N.C. 2016).

Opinion

MEMORANDUM ORDER

Thomas D. Schroeder, United States District Judge

Before the court is a joint motion to enjoin the automatic suspension of certain federal funds made available to Defendants pursuant to the Violence Against Women Reauthorization Act of 20Í3, 42 U.S.C. § 13925(b)(13) (“VAWA”), pending further judicial determination in this litigation. (Doc. 37.) Specifically, the parties seek “an order ... relieving the United States Department of Justice of its obligation” under 42 U.S.C. § 13925(b)(13)(A) [622]*622and (C) to suspend the payment of VAWA funds used by the State for a variety of rape prevention and domestic violence programs. (Id. at 1.) For the reasons set forth below, while entertaining serious concerns about the positions taken by the parties and the court’s authority to enter an injunction under the circumstances of this case, the court finds that, in the absence of clear authority to the contrary and in light of the substantial harm that suspension of the funding in question would inflict on wholly innocent third parties, the court will grant the motion preliminarily.

I. BACKGROUND

On March 23, 2016, the North Carolina General Assembly passed the Public Facilities Privacy & Security Act, 2016 N.C. Sess. Laws 3, commonly known as House Bill 2 (“HB2”). Among other things, HB2 states that multiple occupancy bathrooms and changing facilities managed by public ágencíes and local boards of education must be “designated for and only used by persons based on their biological sex.” 2016 N.C. Sess. Laws 3. The law also sets statewide nondiscrimination standards, preempting local and municipal ordinances that conflict with these standards. Id.

Almost immediately, HB2 sparked multiple overlapping federal lawsuits, of which three are particularly pertinent here. On May 9, 2016, the United States filed a lawsuit in this court against the State, Governor McCrory (in his official capacity), the North Carolina Department of Public Safety (“NCDPS”), and the University of North Carolina and its Board of Governors (collectively, “UNC”) seeking a declaration that compliance with HB2’s provisions. relating to multiple occupancy bathrooms and changing facilities constitutes sex discrimination in violation of Ti-tlelX of the Education Amendments of 1972, 20 U.S.C. § 1681 et seq. (“Title IX”), Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e et seq. (“Title VII”), and VAWA. (Doc. 1.)

That same day, State officials filed two separate declaratory judgment actions in the United States District Court for the Eastern District of North Carolina. Governor McCrory and NCDPS filed an action against the United States and the United States Department of Justice (“DOJ”), seeking a declaration that HB2 does not violate Title VII or VAWA (case no. 5:16cv238). Meanwhile, the President Pro Tempore of the North Carolina Senate and the Speaker of the North Carolina House of Representatives, acting in their official capacities, filed their own lawsuit against DOJ, seeking a declaration that HB2 does not violate Title VII, Title IX, or VAWA, as well as declarations that DOJ had violated both the Administrative Procedure Act and various constitutional provisions (case no. 5:16cv240).1

UNC and NCDPS receive funding from several federal grants authorized by VAWA. (Doc. 48-1 ¶6.) NCDPS receives funding that supports rape crisis centers and other nongovernmental programs designed to assist victims of sexual assault, aids law enforcement and prosecution strategies that combat crimes against women, and provides services for female victims of violent crimes'. (See Doc. 47-1 ¶¶ 6-7,11, 14-15.) HNC and its constituent institutions receive' funding for services provided to victims of sexual assault, domestic violence, dating violence, and stalking, as well as for various other services related to these' crimes.' (See Doc. 46-11 ¶¶ 6-7, 10-11, 13-14, 16-18.) NCDPS and UNC collectively stand to l-eceive nearly [623]*623five million dollars from these grants over the next few months. (See Doc. 48-1 ¶ 6-7.) Many of these grants are administered on a monthly cost-reimbursement basis. (See Doc. 46-11 ¶ 3; Doc. 47-1 ¶ 12.) As a result, if funding were to be suspended, many of these programs would likely be forced to reduce operations, abandon ón-going projects, lay off staff, and deny the public access to critical resources that are currently in high demand. (See Doc. 48-1 ¶¶ 25-26; Doc. 47-1 ¶ 12; Doc. 46-11 ¶¶ 4, 8, 12, 15, 19.) Moreover, suspension of funding is likely to have long-term consequences which would continue to harm these organizations and the public even if funding were subsequently restored and the Defendants reimbursed for missed payments. (See Doc. 48-1 ¶ 26.)2

On June 10, 2016—thirty-two days after initiating their reciprocal lawsuits—the parties filed the instant motion. (Doc. 37.) Citing a provision in VAWA that requires DOJ to automatically suspend funding within forty-five days of commencing an action, the parties ask the court to “issue an order, not later than June 23, 2016, relieving the United States Department of Justice of its obligation ... to automatically suspend payment .of federal funds” to UNC and NCDPS.-Od. at 1.) .The court held emergency telephonic . hearings on June 16, 22, and 23, .2016, in an effort to address the time-critical issues.

II. ANALYSIS

VAWA prohibits discrimination on the basis of actual or perceived “sex, gender identity ... [or] sexual orientation” in “any program or activity funded in whole or in part” by VAWA. 42 U.S.C. § 13925(b)(13)(A). Congress requires that this provision be enforced in the same manner prescribed for other nondiscrimination statutes. Id. §■ 13925(b)(13)(C). As a result,’

Whenever the Attorney General files a civil action alleging a pattern or practice of discriminatory conduct on the basis of ... sex in any program or activity of a State government or unit of local government which ... receives funds made available under [VAWA], and the conduct allegedly violates the provisions of [VAWA] and neither party within forty-five days after such filing has been granted such preliminary relief with regard to the suspension or payment of funds as may be otherwise available by law, the Office of Justice Programs shall cause to have suspended further payment, of any funds under this chapter to that specific program or activity alleged by the Attorney General to be in violation of the provisions of [VAWA] until such time as the court orders resumption of payment.

Id. § 2789d(c)(2)(E).

Multiple courts, including most importantly the Fourth Circuit, have held that the “preliminary relief’ contemplated by the statute must take the form of a preliminary injunction. United States v. Virginia, 569 F.2d 1300, 1302 (4th Cir. 1978); United States v.

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192 F. Supp. 3d 620, 2016 U.S. Dist. LEXIS 82738, 2016 WL 3561726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-state-of-north-carolina-ncmd-2016.