Opinion ID: 385725
Heading Depth: 1
Heading Rank: 2

Heading: Abstention and Equitable Restraint

Text: 14 The district court indicated, and appellee Curtiss-Wright contends, that the federal court should abstain from reaching the merits of the claim for preliminary injunctive relief under the doctrine of Railroad Comm'n of Texas v. Pullman Co., 312 U.S. 496, 61 S.Ct. 643, 85 L.Ed. 971 (1941). In view of the rationale for Pullman abstention, however, we do not believe that this is an appropriate case for deferring to a state court. The Pullman doctrine is derived from the policy that whenever possible the judiciary should resolve a matter on state law grounds if such bases for decision would obviate the need to reach a federal constitutional question. Cf. Hagans v. Lavine, 415 U.S. 528, 545-50, 94 S.Ct. 1372, 1383, 39 L.Ed.2d 577 (1974); Siler v. Louisville & Nashville R. R. Co., 213 U.S. 175, 193, 29 S.Ct. 451, 455, 53 L.Ed. 753 (1909); Rath Packing Co. v. Becker, 530 F.2d 1295, 1307 (9th Cir. 1975), aff'd sub. nom. Jones v. Rath Packing Co., 430 U.S. 519, 97 S.Ct. 1305, 51 L.Ed.2d 604 (1977). When it is necessary to resort to construction of an ambiguous or unsettled state provision to determine whether state law will enable a court to avoid a constitutional issue, Pullman admonishes federal courts to abstain from resolving the state question. In such circumstances the state courts should be given the opportunity to construe their own laws. See D'Iorio v. County of Delaware, 592 F.2d 681, 686 (3d Cir. 1978). The type of state question that usually triggers Pullman abstention is presented when the unsettled issue of state law principally concern(s) the applicability of the challenged (state) statute to a certain person or a defined course of conduct, whose resolution in a particular matter would eliminate the constitutional issue and terminate the litigation. Baggett v. Bullitt, 377 U.S. 360, 376-77, 84 S.Ct. 1316, 1325, 12 L.Ed.2d 377 (1964) (emphasis added). 15 The case at hand involves no such unsettled question of state law. It is undisputed that the challenged New Jersey provisions apply to Kennecott's takeover bid. Moreover, the New Jersey statute is clear on its face, and it is not susceptible of being construed in a way that would render it unnecessary to examine its impact on the purposes of the federal Williams Act. 2 In a preemption case, once it is evident that both a federal and a state law apply to a given situation, resolution of the case turns on an analysis of the policies of federal law. As the Supreme Court has made clear, the preemption doctrine involves more than a comparison of the letter of each law. It requires determination whether the state's law stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress. Jones v. Rath Packing Co., 430 U.S. 519, 525-26, 97 S.Ct. 1305, 1309, 51 L.Ed.2d 604 (1977); Hines v. Davidowitz, 312 U.S. 52, 67, 61 S.Ct. 399, 404, 85 L.Ed. 581 (1940) (emphasis added). 3 16 It would be inconsistent with our paramount duty to interpret and protect federal policies to invoke Pullman abstention in this preemption case. As the Supreme Court has recognized in the analogous context of pendent jurisdiction, supremacy clause claims are essentially one(s) of federal policy, so that the federal courts are particularly appropriate bodies for the application of preemption principles. Hagans v. Lavine, 415 U.S. 528, 550, 94 S.Ct. 1372, 1385, 39 L.Ed.2d 577 (1974); United Mine Workers v. Gibbs, 383 U.S. 715, 729, 86 S.Ct. 1130, 1140, 16 L.Ed.2d 218 (1966). 17 Curtiss-Wright suggests, however, that the recent decision by the Seventh Circuit to abstain in a securities case presenting a claim of preemption indicates that we, too, should defer to the state courts. In City Investing Co. v. Simcox, 633 F.2d 56 (current) Fed.Sec.L.Rep. (CCH) P 97,661 (7th Cir., Oct. 17, 1980), the plaintiffs sought to have a certain provision of the Indiana takeover law declared invalid under the Williams Act, the Supremacy Clause, and the Commerce Clause. Simcox involved open market purchases rather than a tender offer, so it was uncertain whether the state law even applied to plaintiff's conduct. If the state law was found to be inapplicable, there would be no conflict with federal law, and the preemption and supremacy clause issues would be obviated. Simcox therefore presented a classic situation for Pullman abstention, see Baggett v. Bullitt, supra, and the federal court properly chose to defer to Indiana courts to enable them to decide whether the state law applied. Simcox is clearly distinguishable from this case, because here the applicability of the New Jersey statute is clear, compelling the federal court to examine the constitutional issues.
18 The district court also indicated reluctance to grant the preliminary relief requested by Kennecott in light of the abstention doctrine enunciated in Younger v. Harris, 401 U.S. 37, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971). Under the Younger doctrine, a federal court should not enjoin pending state proceedings, or state proceedings commenced after the filing of the federal action but prior to proceedings of substance on the merits in the federal suit. Hicks v. Miranda, 422 U.S. 332, 95 S.Ct. 2281, 45 L.Ed.2d 223 (1975). At the time the district court entertained the merits of Kennecott's motion for a preliminary injunction, there were no extant state proceedings in any form. Thus, there were no Younger considerations involved in the case. Therefore, when the district court reasoned that were it not for the institution of this (federal) action, state proceedings undoubtedly would have been instituted, the court incorrectly made reference to the Younger doctrine. (Transcript of bench opinion, reprinted in Appendix to Brief of Plaintiffs-Appellant at A34-35 (hereinafter referred to as App. )). Where, as here, the district court considered affidavits and briefs, heard extensive oral arguments, and analyzed and ruled on the merits of a motion for preliminary injunctive relief, Younger does not compel the federal courts to stay their hands. Cf. Morial v. Judiciary Comm'n, 565 F.2d 295 (5th Cir. 1977) (en banc); Housworth v. Glisson, 485 F.Supp. 29 (N.D.Ga.1978); Graham v. Breier, 418 F.Supp. 73 (E.D.Wis.1976). 4 Although state proceedings have now been brought, this Court is reviewing the question whether the district court should have granted relief on November 25, before any state proceedings were in any way initiated. Because Younger was not a viable issue before the district court, we may fulfill our appellate review function free of the constraints of the abstention doctrine. Our attention has not been called to any authority holding that the Younger principle is meant to deprive a litigant who received a ruling from the federal court before any state proceedings began, of the right to appeal.
19 The third contention advanced by the defendants to suggest that this Court is precluded from granting the relief sought by Kennecott is the anti-injunction statute, 28 U.S.C. § 2283. It provides: 20 A court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments. 21 This statute is inapplicable here for several reasons. First, actions brought under § 1983, such as this case, are explicit exceptions to the anti-injunction act. Mitchum v. Foster, 407 U.S. 225, 92 S.Ct. 2151, 32 L.Ed.2d 705 (1972). 5 Moreover, in Mitchum the Supreme Court repeatedly referred to § 2283 as barring only the issuance of a federal injunction against pending state proceedings. 407 U.S. at 226, 228-31, 92 S.Ct. at 2154. See also Dombrowski v. Pfister, 380 U.S. 479, 484 n.2, 85 S.Ct. 1116, 1119 n.2, 14 L.Ed.2d 22 (1965); Barancik v. Investors Funding Corp., 489 F.2d 933 (7th Cir. 1973); Moore's Federal Practice P 0.229(1). As we previously emphasized in the discussion of the Younger doctrine, no state proceedings were pending at the time the district court ruled on the motion for injunctive relief. 6 A grant of the request would have enjoined the commencement of actions to enforce the New Jersey law, but it would not have involved enjoining any state proceedings already underway. Section 2283, the Supreme Court has explained, does not preclude injunctions against the institution of state proceedings, but only bars stays of suits already instituted. Dombrowski v. Pfister, supra, 380 U.S. at 484 n.2, 85 S.Ct. at 1119 n.2. 22 On this appeal we must decide whether the district court should have granted injunctive relief on November 25. We are not foreclosed from reversing the district court simply because the federal defendants raced to the state courts after the federal court acted. The anti-injunction act is not designed to deprive a federal plaintiff of the right to an appeal. Indeed, the statute expressly contemplates enjoining pending state proceedings when necessary in aid of the jurisdiction of the federal court. In this instance, we must preserve our appellate jurisdiction and review function. Since there were no state proceedings to be enjoined at the time the district court acted, the anti-injunction statute does not foreclose relief. 23 Accordingly, we conclude that there are no barriers to consideration of the merits of appellant's request for a preliminary injunction.