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Simon v. Eastern Kentucky Welf. Rights. Org. (full text) :: 426 U.S. 26 (1976) :: Justia US Supreme Court Center Log In
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Simon v. Eastern Kentucky Welf. Rights. Org. 426 U.S. 26 (1976)
U.S. Supreme CourtSimon v. Eastern Kentucky Welf. Rights. Org., 426 U.S. 26 (1976)Simon v. Eastern Kentucky Welfare Rights OrganizationNo. 74-1124Argued December 10, 1975Decided June 1, 1976*426 U.S. 26CERTIORARI TO THE UNITED STATES COURT OF APPEALS
(a) When a plaintiff's standing is challenged the relevant inquiry is whether, assuming justiciability of the claim, the plaintiff Page 426 U. S. 27 has shown an injury to himself that is likely to be redressed by a favorable decision, and unless such a showing is made, a federal court cannot exercise its power consistent with the "case or controversy" limitation of Art. III of the Constitution. Pp. 426 U. S. 37-39.
POWELL, J., delivered the opinion of the Court, in which BURGER, C.J., and STEWART, WHITE, BLACKMUN, and REHNQUIST, JJ., Page 426 U. S. 28 joined. STEWART, J., filed a concurring statement, post, p. 426 U. S. 46. BRENNAN, J., filed an opinion concurring in the judgment, in which MARSHALL, J., joined, post, p. 426 U. S. 46. STEVENS, J., took no part in the consideration or decision of the cases.
The Code, in its original version and by subsequent amendment, accords advantageous treatment to several types of nonprofit corporations, including exemption of Page 426 U. S. 29 their income from taxation and deductibility by benefactors of the amounts of their donations. Nonprofit hospitals have never received these benefits as a favored general category, but an individual nonprofit hospital has been able to claim them if it could qualify as a corporation "organized and operated exclusively for . . . charitable . . . purposes" within the meaning of § 501(c)(3) of the Code, 26 U.S.C. § 501(c)(3). [Footnote 1] As the Code does not define the term "charitable," the status of each nonprofit hospital is determined on a case-by-case basis by the IRS.
In addition, the Ruling set out four "general requirements" that a hospital had to meet, "among other Page 426 U. S. 30 things," to be considered a charitable organization by the IRS. Only one of those requirements is important here, and it reads as follows:
Revenue Ruling 56-185 remained the announced policy with respect to a nonprofit hospital's "charitable" status for 13 years, until the IRS issued Revenue Ruling 69-545 on November 3, 1969. [Footnote 3] This new Ruling described two unidentified hospitals, referred to simply as Hospital A and Hospital B, which differed significantly in both Page 426 U. S. 31 corporate structure and operating policies. [Footnote 4] The description of Hospital A included the following paragraph:
Despite Hospital A's apparent failure to operate "to the extent of its financial ability for those not able to pay for the services rendered," as required by Revenue Ruling 56-185, the IRS in this new Ruling held Hospital A exempt as a charitable corporation under § 501(C)(3). [Footnote 5] Noting that Revenue Ruling 56-15 had set out requirements Page 426 U. S. 32 for serving indigents "more restrictive" than those applied to Hospital A, the IRS stated that
Each of the individuals described an occasion on which he or a member of his family had been disadvantaged in seeking needed hospital services because of indigency. Most involved the refusal of a hospital to admit the person because of his inability to pay a deposit or an advance fee, even though, in some instances, the Page 426 U. S. 33 person was enrolled in the Medicare program. At least one plaintiff was denied emergency room treatment because of his inability to pay immediately. And another was treated in the emergency room, but then billed and threatened with suit, although his indigency had been known at the time of treatment.
Plaintiffs made two principal claims. The first was that, in issuing Revenue Ruling 69545, the defendants had violated the Code, and that, in granting charitable corporation treatment to nonprofit hospitals that refused fully to serve indigents, the defendants continued the violation. Their theory was that the legislative history of the Code, regulations of the IRS, and judicial precedent had established the term "charitable" in the Code to mean "relief of the poor," and that the challenged Ruling and current practice of the IRS departed from that interpretation. Plaintiffs' second claim was that the issuance of Revenue Ruling 69-545 without a Page 426 U. S. 34 public hearing and an opportunity for submission of views had violated the rulemaking procedures of the APA, 5 U.S.C. § 553. The theory of this claim was that the Ruling should be considered a "substantive" rule, as opposed to the "interpretative" type of rule that is exempted from the requirements of § 553. [Footnote 9] Plaintiffs sought various forms of declaratory and injunctive relief. [Footnote 10]
By a motion to dismiss, defendants challenged plaintiffs' standing, suggested the nonjusticiability of the subject matter of the suit, and asserted that, in any event, the action was barred by the Anti-Injunction Act, [Footnote 11] the tax limitation in the Declaratory Judgment Act, [Footnote 12] and the Page 426 U. S. 35 doctrine of sovereign immunity. The District Court denied this motion without opinion. On subsequent cross-motions for summary judgment, the court considered, but rejected, each of defendants' arguments against its reaching the merits. The court then held that Revenue Ruling 69-545 was "improperly promulgated," and "without effect" insofar as it permitted nonprofit hospitals to qualify for tax treatment as charities without their offering "special financial consideration to persons unable to pay." 370 F.Supp. 325, 338 (1973). [Footnote 13]
Plaintiffs sought a writ of certiorari in No. 74-1110 to review the Court of Appeals' judgment on the merits. Defendants filed a cross-petition in No. 74-1124 seeking review of that court's decision on the jurisdictional issues if plaintiffs' petition should be granted. We granted both petitions and consolidated them. 421 Page 426 U. S. 36 U.S. 975 (1975). Since we deal with defendants' contentions in No. 74-1124 first, and find it unnecessary to reach the issues raised by plaintiffs in No. 74-1110, we shall refer to defendants below as petitioners, and to plaintiffs below as respondents.
In this Court, petitioners have argued that a policy of the IRS to tax or not to tax certain individuals or organizations, whether embodied in a Revenue Ruling or otherwise developed, cannot be challenged by third parties whose own tax liabilities are not affected. Their theory is that the entire history of this country's revenue system, including but not limited to the evolution of the Code, manifests a consistent congressional intent to vest exclusive authority for the administration of the tax laws in the Secretary and his duly authorized delegates, subject to oversight by the appropriate committees of Congress itself. It is argued that allowing third-party suits questioning the tax treatment accorded other taxpayers would transfer determination of general revenue policy away from those to whom Congress has entrusted it and vest it in the federal courts. [Footnote 14] Page 426 U. S. 37
No principle is more fundamental to the judiciary's proper role in our system of government than the constitutional limitation of federal court jurisdiction to actual cases or controversies. See Flast v. Cohen, 392 U. S. 83, 392 U. S. 95 (1968). The concept of standing is part of this limitation. Unlike other associated doctrines, for example, that which restrains federal courts from deciding Page 426 U. S. 38 political questions, standing "focuses on the party seeking to get his complaint before a federal court, and not on the issues he wishes to have adjudicated." Id. at 392 U. S. 99. As we reiterated last Term, the standing question, in its Art. III aspect,
Respondents brought this action under § 10 of the APA, 5 U.S.C. § 702, which gives a right to judicial review to any person "adversely affected or aggrieved by agency action within the meaning of a relevant statute." [Footnote 17] In Data Processing Service v. Camp, 397 U. S. 150 (1969), this Court held the constitutional standing requirement under this section to be allegations which, if true, would establish that the plaintiff had been injured in fact by Page 426 U. S. 39 the action he sought to have reviewed. Reduction of the threshold requirement to actual injury redressable by the court represented a substantial broadening of access to the federal courts over that previously thought to be the constitutional minimum under this statute. [Footnote 18] But, as this Court emphasized in Sierra Club v. Morton, 405 U. S. 727, 405 U. S. 738 (1972),
We note at the outset that the five respondent organizations, which described themselves as dedicated to Page 426 U. S. 40 promoting access of the poor to health services, could not establish their standing simply on the basis of that goal. Our decisions make clear that an organization's abstract concern with a subject that could be affected by an adjudication does not substitute for the concrete injury required by Art. III. Sierra Club v. Morton, supra; see Warth v Seldin, supra. Insofar as these organizations seek standing based on their special interest in the health problems of the poor, their complaint must fail. Since they allege no injury to themselves as organizations, and indeed could not, in the context of this suit, they can establish standing only as representatives of those of their members who have been injured in fact, and thus could have brought suit in their own right. Warth v. Seldin, supra at 422 U. S. 511. The standing question in this suit therefore turns upon whether any individual respondent has established an actual injury, [Footnote 20] or whether the respondent organizations have established actual injury to any of their indigent members.
The obvious interest of all respondents, to which they claim actual injury, is that of access to hospital services. In one sense, of course, they have suffered injury to that interest. The complaint alleges specific occasions on which each of the individual respondents sought but was denied hospital services solely due to his indigency, [Footnote 21] and, Page 426 U. S. 41 in at least some of the cases, it is clear that the needed treatment was unavailable, as a practical matter, anywhere else. The complaint also alleges that members of the respondent organizations need hospital services, but live in communities in which the private hospitals do not serve indigents. We thus assume, for purpose of analysis, that some members have been denied service. But injury at the hands of a hospital is insufficient, by itself, to establish a case or controversy in the context of this suit, for no hospital is a defendant. The only defendants are officials of the Department of the Treasury, and the only claims of illegal action respondents desire the courts to adjudicate are charged to those officials.
"'case or controversy' limitation of Art. III still requires that a federal court act only to redress injury that fairly can be traced to the challenged action of the defendant, and not injury Page 426 U. S. 42 that results from the independent action of some third party not before the court."
The complaint here alleged only that petitioners, by the adoption of Revenue Ruling 69-545, had "encouraged" hospitals to deny services to indigents. [Footnote 23] The implicit corollary of this allegation is that a grant of respondents' requested relief, resulting in a requirement that all hospitals serve indigents as a condition to favorable tax treatment, would "discourage" hospitals from denying their services to respondents. But it does not follow from the allegation and its corollary that the denial of access to hospital services in fact results from petitioners' new Ruling, or that a court-ordered return by petitioners to their previous policy would result in these respondents' receiving the hospital services they desire. It is purely speculative whether the denials of service Page 426 U. S. 43 specified in the complaint fairly can be traced to petitioners' "encouragement," or instead result from decisions made by the hospitals without regard to the tax implications.
It is equally speculative whether the desired exercise of the court's remedial powers in this suit would result in the availability to respondents of such services. So far as the complaint sheds light, it is just as plausible that the hospitals to which respondents may apply for service would elect to forgo favorable tax treatment to avoid the undetermined financial drain of an increase in the level of uncompensated services. It is true that the individual respondents have alleged, upon information and belief, that the hospitals that denied them service receive substantial donations deductible by the donors. This allegation could support an inference that these hospitals, or some of them, are so financially dependent upon the favorable tax treatment afforded charitable organizations that they would admit respondents if a court required such admission as a condition to receipt of that treatment. But this inference is speculative, at best. [Footnote 24] The Solicitor General states in his brief that, nationwide, private philanthropy accounts for only 40% of private hospital revenues. Respondents introduced in the District Court a statement to Congress by an official of a hospital association describing the importance to nonprofit hospitals of the favorable tax treatment they receive as charitable corporations. Such conflicting evidence supports the common sense proposition that the dependence upon special tax benefits may vary from hospital to hospital. Thus, respondents' allegation that Page 426 U. S. 44 certain hospitals receive substantial charitable contributions, without more, does not establish the further proposition that those hospitals are dependent upon such contributions.
The principle of Linda R.S. and Warth controls this case. As stated in Warth, that principle is that indirectness of injury, while not necessarily fatal to standing, Page 426 U. S. 45
422 U.S. at 422 U. S. 505. Respondents have failed to carry this burden. Speculative inferences are necessary to connect their injury to the challenged actions of petitioners. [Footnote 25] Moreover, the complaint suggests no substantial likelihood that victory in this suit would result Page 426 U. S. 46 in respondents' receiving the hospital treatment they desire. A federal court, properly cognizant of the Art. III limitation upon its jurisdiction, must require more than respondents have shown before proceeding to the merits.
I agree that, in this litigation as it is presently postured, respondents (herein used to refer to plaintiffs below) have not met their burden of establishing a concrete and reviewable controversy between themselves and the Government with respect to the disputed Revenue Ruling. That is, however, the full extent of my agreement with the Court in this case. I must dissent from the Court's reasoning on the standing issue, reasoning that is unjustifiable under any proper theory of standing and clearly contrary to the relevant precedents. The Court's further obfuscation of the law of standing is particularly unnecessary when there are obvious and reasonable alternative grounds upon which to decide this litigation. Page 426 U. S. 47
However, as noted by the Court, the disputed Ruling, on its face, applies only to a narrow category of nonprofit hospitals -- those fairly characterized by the factual and legal circumstances described in the Ruling as pertaining to "Hospital A." The Ruling does not indicate what treatment will be accorded hospitals not within the situation described in the hypothesis. [Footnote 2/1] The most hotly Page 426 U. S. 48 contested portion of the disputed ruling, that modifying the earlier Revenue Ruling 56-185 by "remov[ing] therefrom the requirements relating to caring for patients Page 426 U. S. 49 without charge or at rates below cost," is, at best, ambiguous regarding its application or effect respecting nonprofit hospitals not within the factual and legal situation Page 426 U. S. 50 of Hospital A. Accordingly, there is simply no ripe controversy with respect to a claim that the disputed ruling illegally "encourages" all nonprofit hospitals to withdraw the provision of indigent services by removing from all hospitals the requirement of such services as a prerequisite to tax-exempt status.
This was the position of the Secretary of the Treasury and the Commissioner of Internal Revenue with respect to the disputed Ruling at oral argument, [Footnote 2/2] and no representation Page 426 U. S. 51 to the contrary appears in the record. Moreover, no facts were alleged or introduced in the District Court that in any way indicated with more specificity that the disputed Ruling had or was intended to have application to all nonprofit hospitals. Respondents apparently made no attempt to clarify the meaning of the Ruling in this regard, as, for example, by filing with the IRS a petition for clarification of the Ruling pursuant to the Administrative Procedure Act, 5 U.S.C. § 555(e), see, e.g., Dunlop v. Bachowski, 421 U. S. 560, 421 U. S. 573 (1975), or by petitioning for a revision of the Ruling pursuant to that Act, 5 U.S.C. § 553(e), cf. Oljato Chapter of Navajo Tribe v. Train, 169 U.S.App.D.C.195, 207, 515 F.2d 654, 666-667 (1975), or by seeking clarification by means of discovery or an informal request. Accordingly, with respect to any claim that the Ruling illegally withdraws the requirement of the provision of indigent services from all hospitals seeking tax-exempt status under the "charitable" provisions of the Code, a
"lack of ripeness inhere[s] in the fact that the need for some further procedure, some further contingency of application Page 426 U. S. 52 or interpretation . . . serve[s] to make remote the issue which was sought to be presented to the Court."
"alleged such a personal stake in the outcome of the controversy as to assure that concrete adverseness which sharpens the presentation of issues upon which the [C]ourt so largely Page 426 U. S. 53 depends for illumination of difficult . . . questions."
App. 154. At this point in the litigation, it was clearly incumbent upon the respondents to make a showing sufficient to create a material issue of fact whether there was any connection between the hospitals affecting them and the Ruling alleged to be illegally "encouraging" tax-exempt hospitals to withdraw the provision of indigents' services, thereby injuring respondents' "opportunity and ability" for such services. Page 426 U. S. 54 See Barlow v. Collins, 397 U. S. 159, 397 U. S. 175, and n. 10 (1970) (opinion of BRENNAN, J.). [Footnote 2/5] No such showing was made. There is absolutely no indication in the record that the contested Ruling altered the operation of these hospitals in any way, or that the tax-exempt status of these hospitals was in any way related to the Ruling. Accordingly, the petitioners were entitled to judgment in their favor on their motion for summary judgment.
The Court today, however, wholly ignores the foregoing aspects of this case. Rather, it assumes that the governmental action complained of is encouraging the hospitals affecting respondents to provide fewer medical services to indigents. Ante at 426 U. S. 42, and n. 23. This is done in order to make the gratuitous and erroneous point that respondents, as a prerequisite to pursuing any legal claims regarding the Revenue Ruling, must allege and later prove that the hospitals affecting respondents Page 426 U. S. 55 "are dependent upon" their tax-exempt status, ante at 426 U. S. 44, that they would not, in the absence of the Ruling's assumed "encouragement," "elect to forgo favorable tax treatment," and that the absence of the allegedly illegal inducement would "result in the availability to respondents of such services," ante at 426 U. S. 43. In reaching this conclusion, the Court abjures analysis either of the Art. III policies heretofore assumed to inhere in the constitutional dimension of the standing doctrine, or of the relevant precedents of this Court. [Footnote 2/6]
First, the Court's treatment of the injury-in-fact standing requirement is simply unsupportable in the context of this case. The wrong of which respondents complain is that the disputed Ruling gives erroneous economic signals to nonprofit hospitals whose subsequent responses affect respondents; they claim the IRS is offering the economic inducement of tax-exempt status to such hospitals under terms illegal under the Internal Page 426 U. S. 56 Revenue Code. Respondents' claim is not, and by its very nature could not be, that they have been and will be illegally denied the provision of indigent medical services by the hospitals. Rather, if respondents have a claim cognizable under the law, it is that the Internal Revenue Code requires the Government to offer economic inducements to the relevant hospitals only under conditions which are likely to benefit respondents. The relevant injury in light of this claim is, then, injury to this beneficial interest -- as respondents alleged, injury to their "opportunity and ability" to receive medical services. Respondents sufficiently alleged this injury, and if, as the Court so readily assumes, they had made a showing sufficient to create an issue of material fact that the Government was injuring this interest, they would continue to possess standing to press the claim on the merits.
Furthermore, the injury of which respondents complain is of a continuing and continuous nature, and the additional allegations and showings that the Court requires would not be determinative of the hospitals' future conduct. Even if a given hospital affecting respondents had in the past made its determination regarding indigent Page 426 U. S. 57 services without regard to the tax consequences of that determination -- would have elected to forgo favorable tax treatment in the absence of the allegedly illegal "encouragement" -- such a choice presumably would be subject to continuous reevaluation in the future, as the hospital's circumstances, the economic climate, and expectations regarding donor contributions changed over time. Respondents complain of and seek relief from the threat of future policy determinations by the hospitals based on the allegedly illegal tax Ruling, not redress for past "encouragement." We have often found standing in plaintiffs to complain of such future harm irrespective of any showing of the realization of such threatened injuries in the past. E.g., Doe v. Bolton, 410 U. S. 179, 410 U. S. 188 (1973); Epperson v. Arkansas, 393 U. S. 97, 393 U. S. 101-102 (1968).
"[I]t would be difficult, if it would be possible, to fashion a precise test for determining in every case whether there is such a controversy. Basically, the question in each case is whether the facts alleged, under all the circumstances, show that there is a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality Page 426 U. S. 68 to warrant the issuance of a declaratory judgment."
"* * * *" "Where such state action or its imminence adversely affects the status of private parties, the courts should be available to render appropriate relief and judgments affecting the parties' rights and interests."
Second, the Court's treatment of the injury-in-fact requirement directly conflicts with past decisions. Respondents brought this action seeking general statutory review of administrative action under the provisions of the Administrative Procedure Act. Hence, the governing precedents respecting standing are those developed in Data Processing Service v. Camp, 397 U. S. 150 (1970); Barlow v. Collins, 397 U. S. 159 (1970); Sierra Club v. Morton, 405 U. S. 727 (1972); and United States v. SCRAP, 412 U. S. 669 (1973). See also Harding v. Kentucky Utilities Co., 390 U. S. 1 (1968). Any prudential, nonconstitutional considerations that underlay the Court's disposition of the injury-in-fact standing requirement in cases such as Linda R.S. v. Richard D., 410 Page 426 U. S. 59 U.S. 614 (1973), [Footnote 2/7] and Warth v. Seldin, 422 U. S. 490 (1975), are simply inapposite when review is sought under a congressionally enacted statute conferring standing and providing for judicial review. [Footnote 2/8] In such a case, considerations respecting "the allocation of power at the national level [and] a shift away from a democratic form of government," United States v. Richardson, 418 U.S. at 418 U. S. 188 (POWELL, J., concurring), are largely ameliorated, and such prudential limitations as remain are supposedly Page 426 U. S. 60 subsumed under the "zone of interests" test developed in Data Processing Service v. Camp, supra. [Footnote 2/9] See United States v. Richardson, supra at 418 U. S. 196 n. 18 (POWELL, J., concurring).
Our previous decisions concerning standing to sue under the Administrative Procedure Act conclusively show that the injury in fact demanded is the constitutional minimum identified in Baker v. Carr, 369 U.S. at 369 U. S. 204 -- the allegation of such a "personal stake in the outcome of the controversy as to assure" concrete adverseness. Sierra Club v. Morton, supra at 405 U. S. 732-733; Data Processing Service v. Camp, supra at 397 U. S. 151-152 . True, the Court has required that the person seeking review allege that he personally has suffered or will suffer the injury sought to be avoided, Sierra Club, supra at 405 U. S. 740. But there can be no doubt that respondents here, by demonstrating a connection between the disputed Ruling and the hospitals affecting them, could have adequately served the policy implicated by the pleading requirement of Sierra Club -- putting "the decision as to whether review will be sought in the hands of those who have a direct stake in the outcome." Ibid. In such a case, respondents would not be attempting merely to "vindicate their own value preferences through the judicial process." Ibid. See Albert, supra, n. 8, at 485-489. If such a showing were made, a real and recognizable harm to tangible interest would have been alleged, indeed more so than we have required in other circumstances. United States v. SCRAP, supra; Sierra Club v. Morton., supra; Page 426 U. S. 61 cf. Barlow v. Collins, supra at 397 U. S. 163. [Footnote 2/10] Moreover, the injury alleged would be a "distinctive or discriminating' . . . harm," id. at 397 U. S. 172 n. 5 (opinion of BRENNAN, J.), clearly a "particularized injury [setting respondents] apart from the man on the street." United States v. Richardson, supra at 418 U. S. 194 (POWELL, J., concurring).
Furthermore, our decisions regarding standing to sue in actions brought under the Administrative Procedure Act make plain that standing is not to be denied merely because the ultimate harm alleged is a threatened future one rather than an accomplished fact. United States v. SCRAP, supra; Sierra Club v. Morton, supra. Nor has the fact that the administrative action ultimately Page 426 U. S. 62 affects the complaining party only through responses to incentives by third parties been fatal to the standing of those who would challenge that action. United States v. SCRAP, supra; Barlow v. Collins, supra. And the ultimate harm to respondents threatened here is obviously much more "direct and perceptible," and the "line of causation" less "attenuated," than that found sufficient for standing in United States v. SCRAP, 412 U.S. at 412 U. S. 688.
Moreover, apart from the specificity required of the pleadings, it is not apparent why these "unalleged and unknown facts about the relevant hospitals" are required to establish injury in fact at all. As the Court notes, ante at 426 U. S. 42 n. 23, the earlier Revenue Ruling requires a hospital only to provide medical care "to the extent Page 426 U. S. 63 of its financial ability," and stated that a low charitable record was not conclusive on the point. Accordingly, in the absence of some showing to the contrary by the petitioners, it readily can be inferred that a hospital under the earlier Ruling would provide some indigent services, the maximum extent being the point at which the benefits received from the favorable tax status were exactly offset by the cost of the services conferred. If respondents had demonstrated at the summary judgment stage a connection between the disputed Ruling withdrawing this incentive and the hospitals affecting them, they would have certainly made a showing of injury to their "opportunity and ability" to receive medical care sufficient under SCRAP for standing to challenge the governmental action.
We may properly wonder where the Court, armed with its "fatally speculative pleadings" tool, will strike next. To pick only the most obvious examples, will minority schoolchildren now have to plead and show that, in the absence of illegal governmental "encouragement" of private segregated schools, such schools would not "elect to forgo" their favorable tax treatment, and that this will "result in the availability" to complainants of an integrated educational system? See Green v. Kennedy, 309 F.Supp. 1127 (DC 1970), later decision reported sub nom. Green v. Connally, 330 F.Supp. 1150, summarily aff'd sub nom. Coit v. Green, 404 U.S. 997 (1971). [Footnote 2/11] Or will black Americans be required to plead and show that, in the absence of illegal governmental encouragement, private institutions would not "elect to Page 426 U. S. 64 forgo" favorable tax treatment, and that this will "result in the availability" to complainants of services previously denied? See McGlotten v. Connally, 338 F.Supp. 448 (DC 1972); Pitts v. Wisconsin Dept. of Revenue, 333 F.Supp. 662 (ED Wis.1971). As perusal of these reported decisions reveals, the lower courts have not assumed that such allegations and proofs were somehow required by Art. III.
Of course, the most disturbing aspect of today's opinion is the Court's insistence on resting its decision' regarding standing squarely on the irreducible Art. III minimum of injury in fact, thereby effectively placing its holding beyond congressional power to rectify. Thus, any time Congress chooses to legislate in favor of certain interests by setting up a scheme of incentives for third parties, judicial review of administrative action that allegedly frustrates the congressionally intended objective will be denied, because any complainant will be required to make an almost impossible showing. Clearly the Legislative Branch of the Government cannot supply injured individuals with the means to make the factual showing in a specific context that the Court today requires. More specific indications of a congressional desire to confer standing upon such individuals would be germane not to the Art. III injury-in-fact requirement, but only to the Court's "zone of interests" test for standing, that branch of standing lore which the Court assiduously avoids reaching. Ante at 426 U. S. 39 n.19. [Footnote 2/12] Page 426 U. S. 65
In our modern-day society, dominated by complex legislative programs and large-scale governmental involvement in the everyday lives of all of us, judicial review of administrative action is essential both for protection of individuals illegally harmed by that action, Flast v. Cohen, 392 U. S. 83, 392 U. S. 111 (1968) (Douglas, J., concurring), and to ensure that the attainment of congressionally mandated goals is not frustrated by illegal action, Barlow v. Collins, 397 U.S. at 397 U. S. 173-175, and n. 9 (opinion of BRENNAN, J.). See Albert, 83 Yale L.J., supra, n. 8, at 451-456. In dissenting from the Court's earlier creation of the "zone of interests" test applicable to standing for review under the Administrative Procedure Act, an inquiry that confuses standing with aspects of reviewability and the merits, I said:
"[I]n my view, alleged injury in fact, reviewability, and the merits pose questions that are largely distinct from one another, each governed by its own considerations. To fail to isolate and treat each inquiry independently of the other two, so far as possible, is to risk obscuring what is at issue in a given case, and thus to risk uninformed, poorly reasoned decisions that may result in injustice. Too often these various questions have been merged into one confused inquiry, lumped under the general rubric of 'standing.' The books are full of opinions that dismiss a plaintiff for lack of 'standing' when dismissal, if proper at all, actually rested either upon the plaintiff's failure to prove on the merits the existence of the legally protected interest that he claimed or on his failure to prove that the challenged agency action Page 426 U. S. 66 was reviewable at his instance."
"* * * *" "To qualify for exemption from Federal income tax under section 501(c)(3) of the Code, a nonprofit hospital must be organized and operated exclusively in furtherance of some purpose considered 'charitable' in the generally accepted legal sense of that term, and the hospital may not be operated, directly or indirectly, for the benefit of private interests."
"* * * *" "Accordingly, it is held that Hospital A is exempt from Federal income tax under section 501(c)(3) of the Code."
"* * * *" "Even though an organization considers itself within the scope of Situation 1 of this Revenue Ruling, it must file an application on Form 1023, Exemption Application, in order to be recognized by the Service as exempt under section 501(c)(3) of the Code."