Opinion ID: 3064582
Heading Depth: 2
Heading Rank: 3

Heading: Equities and the Public Interest

Text: The district court did not reach the question of the equities and the public interest. Although the state argues that these factors weigh in its favor because an injunction will worsen the state’s budget crisis, the record reflects that the impact of a stay on the budget crisis will be minimal at most. Further, it is clear that it would not be equitable or in the public’s interest to allow the state to continue to violate the requirements of federal law, especially when there are no adequate remedies available to compensate the Hospital Plaintiffs for the irreparable harm that would be caused by the continuing violation. In such circumstances, the interest of preserving the Supremacy Clause is paramount. See Am. Trucking Ass’n v. City of Los Angeles, ___ F.3d ___, 2009 WL 723993, at  (9th Cir. Mar. 20, 2009) (considering the public interest represented by “the Constitution’s declaration that federal law is to be supreme”). 2 We observe that, although damages may become available to the Hospital Plaintiffs in state court, persuasive authority suggests that federal courts may consider only what federal remedies are available. See United States v. New York, 708 F.2d 92, 93-94 (2d Cir. 1983) (per curiam) (holding that “federal courts may consider only the available federal legal remedies”). But see Kan. Health Care Ass’n, 31 F.3d at 1543 (“Because the Eleventh Amendment bars a legal remedy in damages, and the court concluded no adequate state administrative remedy existed, the court held that plaintiffs’ injury was irreparable. We agree.” (emphasis added)). We find the reasoning of New York to be more persuasive, and consider only prospective federal remedies for the purpose of gauging whether the harm caused to the Hospital Plaintiffs and their members is irreparable. CALIFORNIA PHARMACISTS v. MAXWELL-JOLLY 4223 In light of the showing made by the Hospital Plaintiffs in this case, we grant their motion for an order staying the rate cuts in AB 1183 with respect to the specified hospital services pending their appeal to this court of the district court’s order denying the motion for preliminary injunction. MOTION FOR STAY PENDING APPEAL IS GRANTED. PRINTED FOR ADMINISTRATIVE OFFICE—U.S. COURTS BY THOMSON REUTERS/WEST—SAN FRANCISCO The summary, which does not constitute a part of the opinion of the court, is copyrighted © 2009 Thomson Reuters/West.