# Petitioners Brief — Chicago v. International College of Surgeons

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Petitioners Brief
- **Published:** January 1, 1997
- **Citation:** 522 U.S. 156

## Text

IN THE
Supreme Court of the United States

OCTOBER TERM, 1996

CITY OF CHICAGO, et al.,
Petitioners,
Vv.

INTERNATIONAL COLLEGE OF SURGEONS, et al.,
Respondents.

On Writ of Certiorari to the
United States Court of Appeals
for the Seventh Circuit

BRIEF FOR PETITIONERS

PATRICIA T. BERGESON
Acting Corporation Counsel
of the City of Chicago
LAWRENCE ROSENTHAL *
Deputy Corporation Counsel
BENNA RUTH SOLOMON
Chief Assistant Corporation
Counsel
ANNE BERLEMAN KEARNEY
Assistant Corporation Counsel
City Hall, Room 610
Chicago, Illinois 60602
(312) 744-5337

Attorneys for Petitioners

** Counsel of Record

WILSON - Eras Printine Co., Inc. - 789-0096 - WASHINGTON, D.C. 20001

Wo pP

QUESTION PRESENTED

Whether a lawsuit containing claims that a local ad-
ministrative agency’s decision violates federal law, but also
containing state-law claims that are not reviewed de novo,
is a civil action within the original jurisdiction of the

ii

PARTIES TO THE PROCEEDING
Petitioners are the City of Chicago, the Commission on

* One petitioner—Christopher R. Hill—was not named as a peti-
tioner in the petition for certiorari, but has since succeeded peti-
tioner Joseph F. Boyle, Jr., in office and accordingly is automatically
substituted as a petitioner by virtue of this Court’s Rule 35.3.

TABLE OF CONTENTS

QUESTION PRESENTED .............----------c-ceseecemrenevenees

PARTIES TO THE PROCEEDING ...........

TABLE OF AUTHORITIES .................--.----.--ec-cceceeeeeoee

I Eee

FUN cersnecenseenenasscnemessemenessetmnnreseesenmsemmnsnseeanenannnt

CE RPO UPCEED cxtscesnmasssccesssecusasnccempemeumasemensas

ITS ceenesetnemecnnensgsemmcemomeceees can seumpasentamuseedmns

I,

Il.

ICS’S COMPLAINTS ALLEGE FEDERAL
QUESTIONS AND WERE THEREFORE
SR cxcrecanpensesecammnecqresersnnccsemessemessecnaseanee

A. A State-Court Complaint Alleging Federal
And State Claims Is Removable ............______.

B. The Complaints At Issue Here Allege Claims
That Arise Under The Federal Constitution..

C. ICS’s Complaints Invoked Federal Juris-

THE PRESENCE OF A STATE ADMINIS-
TRATIVE REVIEW CLAIM IN A STATE-
COURT COMPLAINT DOES NOT DEFEAT
OE

A. ICS’s State Administrative Review Claims
Fall Within Supplemental Jurisdiction ._._...

B. Administrative Review Claims Can Be Heard
By The District Courts ...................................

13

17

iv
TABLE OF CONTENTS—Continued

C. Even The Presence Of State-Law Claims Not

Within Original Or Supplemental Jurisdic-
tion Does Not Defeat Removal —....................

D. There Is No Policy Reason To Overcome The
Plain Statutory Language And Its History...

i

Page

40

Vv

TABLE OF AUTHORITIES

CASES: Page
Agg v. Flanagan, 855 F.2d 336 (6th Cir. 1988) _.... 44
Alabama v. Pugh, 438 U.S. 781 (1978) (per

curiam) . 41-42
Aldinger v. Howard, 427 U.S. 1 (1976) 14
Allegheny Pittsburgh Coal Co. v. County Commis-

sion, 488 U.S. 336 (1989) ............................ 21
American Well Works Co. v. Layne & Bowler Co.,

241 U.S. 257 (1916) _ 20
Ames v. Kansas, 111 U.S. 449 (1884) 36, 37
Ammerman v. Sween, 54 F.3d 423 (7th Cir. 1995) .. 15
Ankenbrandt v. Richards, 504 U.S. 689 (1992)... 43
Armistead v. C & M Traneport, Inc., 49 F.3d 43

(ist Cir. 1995) 39
Barber v. Barber, 62 U.S. (21 How.) 582 (1859)... 43
Barrow v. Hunton, 99 U.S. 80 (1879) —................ 23, 32
Bell v. Hood, 327 U.S. 678 (1946) ........................ 20, 24
Bickerstaff Clay Products Co. v. Harris County, 89

PBd 1481 (11th Cir. 1906) n....ncc-nccnceeneeene-a-- 16
Borough of West Mifflin v. Lancaster, 45 F.3d 780

(3d Cir. 1995) 28
Branson v. Department of Revenue, 168 Ill. 2d 247,

Se 38, 46
Bray v. Alezandria Women’s Health Clinic, 506

SN A SS 23

Burford v. Sun Oil Co., 319 U.S. 315 (1943) __... 44-45, 46
Califano v. Sanders, 430 U.S. 99 (1977) ..11, 29, 30, 39, 48
Camp v. Pitts, 411 U.S. 138 (1973) (per curiam). 11, 29
Carnegie-Mellon University v. Cohill, 484 U.S. 343
(1988) es ea eee 9, 14, 15-16, 28
Caterpillar Inc. v. Williams, 482 U.S. 386 (1987)... 13, 19
Chicago, RI. & P.R. Co. v. Stude, 346 U.S. 574

re 7, 10, 11, 31-32, $3, 38
Christianson v. Colt Industries Operating Co., 486

Ff ee ee 18, 22
Citizens to Preserve Overton Park, Inc. v. Volpe,

CK 29
City of Houston v. Hill, 482 U.S. 451 (1987) ._.... 46

Clark v. Barnard, 108 U.S. 436 (1883) .............. 42

vi

TABLE OF AUTHORITIES—Continued

Colorado River Water Conservation District v.
United States, 424 U.S. 800 (1976) .. a 45
Commissioner v. Lundy, 116 8S. Ct. 647 (1996) ........ 15
Commissioners of Road Improvement District No.
2 v. St. L. Sw. Ry. Co., 257 U.S. 547 (1922) ..23, 33, 38
County of Allegheny v. Frank Mashuda Co., 360

U.S. 185 (1959) -. iin $1
County of Upshur v. Rich, 135 U.S. 467 (1890) ....34-35, 37
Degge v. Hitchcock, 229 U.S. 162 (1913) ~............. 37
Duke Power Co. v. Carolina Environmental Study

Group, Inc., 488 U.S. 59 (1978) —......................~... 23-24
Edelman v. Jordan, 415 U.S. 651 (1974) —............... 41
England v. Louisiana State Board of Medical Ex-

aminers, 375 U.S. 411 (1964) ~............................... 46
Envirite Corp. v. IUinois Environmental Protection

Agency, 158 Ill. 2d 210, 632 N.E.2d 1035 (1994) .. 38
Fairfax County Redevelopment & Housing Author-

ity v. W.M. Schlosser Co., 64 F.3d 155 (4th Cir.

yy ee 39
Federated Department Stores, Inc. v. Moitie, 452

U.S. 394 (1981) scieatnlinct lilt iittala emyicesiliaain 20
Finley v. United States, 490 U.S. 545 (1989) saa 36
First National Bank v. Turnbull, 83 U.S. (16

DF ey 32
Flournoy v. Wiener, 321 U.S. 253 (1944) ............. 21
Frances J. v. Wright, 19 F.3d 337 (7th Cir.), cert.

denied, 115 S. Ct. 204 (1994) —.................... 9, 26, 40, 42

Franchise Tax Board v. Construction Laborers
Vacation Trust, 463 U.S. 1 (1983) ..13, 18, 19, 20-21, 22

Franks v. Smith, 717 F.2d 183 (5th Cir. 1983) ..._... 44
Grubbs v. General Electric Credit Corp., 405 U.S.

699 (1972) 2
Gully v. First National Bank, 299 U.S. 109 (1986) . 18, 21
Gustafson v. Alloyd Co., 115 S. Ct. 1061 (1995) ..... 15
Hagans v. Lavine, 415 US. 528 (1974) -................... 23
Hanrahan v. Williams, 174 Ill. 2d 268, 673 N.E.2d

| _ Se 37

or” ~\enemaamnaatendie Midkiff, 467 U.S. 229
(1984) ............. sczenqutesuscenaunsvenecestIsEseteseaSesenSIsOaa® 46

vii
TABLE OF AUTHORITIES—Continued

Page

Henry v. Metropolitan Sewer District, 922 F.2d
NE eee 42
Hopkins v. Walker, 244 U.S. 486 (1917) .............. 20, 22

Horton v. Liberty Mutual Insurance Co., 367 U.S.
ll RP CETTE 7-8, 11, 32-33, 38, 47

Howard v. Lawton, 22 Ill. 2d 331, 175 N.E.2d 556
TERR AEE ASIEN A AEP eT 19
Hurn v. Oursler, 289 U.S. 238 (193838) 00. 14
Kruse v. Hawai'i, 68 F.3d 331 (9th Cir. 1995)... 42

Landmarks Preservation Council v. City of Chi-
cago, 125 Ill. 2d 164, 581 N.E.2d 9 (1988) ........... 4

Linwood v. Board of Education, 463 F.2d 763 (7th
Cir.), cert. denied, 409 U.S. 1027 (1972) —......... 39

Logan v. Zimmerman Brush Co., 455 U.S. 422
EE ee ee ae ee 21

Louisiana Power & Light Co. v. City of Thibodauz,
ESAT IITA EE 46

Madisonville Traction Co. v. St. Bernard Mining

a I I i 23
Markham v. Allen, 326 U.S. 490 (1946) —..000000... 43
McCartin v. Norton, 674 F.2d 1317 (9th Cir.

EE A eS a Sn 29
McKay v. Boyd Construction Co., 769 F.2d 1084

(5th Cir. 1985) 42

22
2

Merrell Dow Pharmaceuticals Inc. v. Thompson,

SE a ae 21,
Mesa v. California, 489 U.S. 121 (1989) 0...
Metropolitan Life Insurance Co. v. Taylor, 481 U.S.

EE 19, 20
Milwaukee County v. M.E. White Co., 296 U.S. 268

EE Ee Se eT ee 35-36
Mississippi and Rum River Boom Co. v. Patterson,

TEE TES A AT OOD 33, 35
Monsanto Co. v. Pollution Control Board, 67 Til.

2d 276, 367 N.E.2d 684 (1977) 2.000. 37-38

Motor Vehicle Manufacturers Association v. State
Farm Mutual Automobile Insurance Co., 463 U.S.
eS ae A TET sa Oe ee 29

viii
TABLE OF AUTHORITIES—Continued

Page
Mount Healthy City School District v. Doyle, 429

FE i yxy 41
New Orleans Public Service, Inc. v. Council of City

of New Orleans, 491 U.S. 350 (1989) ........... 43-44, 48-49
Nollan v. California Coastal Commission, 483 U.S.

ee 21
O’Leary v. Brown-Pacific-Mazon, 340 U.S. 504

) |) ae 29
Ortega Cabrera v. Municipality of Bayamon, 562

FD EEE 16
Pennhurst State School & Hospital v. Halderman,

GE TE, Ge GD coctesenensenteniemninetinitinseitninnsece 40, 42
Phillips Petroleum Co. v. Texaco, Inc., 415 U.S. 125

I ————————————————————— 18
Quackenbush v. Allstate Insurance Co., 116 8. Ct.

ed ... 45, 46
Railway Commission v. Pullman Co., 312 U.S. 496

CRED. ccciinctsensenscannseenrestenctsiaaniiinigninatnitaditiimemiates 45, 46
Range Oil Supply Co. v. Chicago, RI. & P.R. Co.,

248 F.2d 477 (8th Cir. 1957) .........................-..... 88-39
Ratzlaf v. United States, 510 U.S. 135 (1994)........ 15
Rodriguez v. Pacificare of Texas, Inc., 980 F.2d

1014 (5th Cir.), cert. denied, 508 U.S. 956

OO —————————— ee 15
Schmidt v. Oakland Unified School District, 457

U.S. 594 (1982) (per curiam) ............................. 44

Siler v. Louisville & N.R. Co., 218 U.S. 175 (1909)... 13-14
Smith v. Department of Public Aid, 67 Ill. 2d 529,

Pil ) 2) 7 a 37
Smith v. Kansas City Title & Trust Co., 255 ™'..
|. a ee 22

Stratton v. Wenona Community Unit District No.
1, 133 Til. 2d 413, 551 N.E.2d 640 (1990) ..18, 19, 38, 46
Thermtron Products, Inc. v. Hermansdorfer, 423

FE, ) ee 48

Things Remembered, Inc. v. Petrarca, 116 8. Ct.

en 2

Thomas Jefferson University v. Shalala, 512 U.S.

BBG CIGD ccececessesenccsccncnsscesncscesssssessnsncencsnsannemsessesses 29

ix
TABLE OF AUTHORITIES—Continued
P

Union Pacific Ry. Co. v. Meyers, 115 U.S. 1 sat

RE enh Ls eS 33
United Mine Workers v. Gibbs, 388 U.S. 715

IE > PE a 14
Weston v. City Council, 27 U.S. (2 Pet.) 449

ARI es pet SR Oe 34
Wilcox v. Consolidated Gas Co., 212 U.S. 19

PRN ERRN S t aa a 49
Winston v. Zoning Board of Appeals, 407 Ill. 588,

96 N.E.2d 864 (1960) 22.0... ccc cc ccccecceecceeeceee 19
Zuniga v. Blue Cross and Blue Shield of Michigan,

52 F.3d 1395 (6th Cir. 1995) 00 28

CONSTITUTIONAL PROVISIONS, STATUTES,
AND RULES:

i eee 43
ae 5, 17
AT 40, 41, 42
U.S. Const. amend. XIV 0.00. 5,17
TLE TA Se 28
a 29
REE a a 29
CE Cee 2
28 rr ES es 2
Ee a ee
ETE ae a, ee —_ 30
a i 18
EE passim
ES 24, 27
a passim
I 17, 48
iS 25, 41
ES RS ee 2
i 16, 28
Act of Sept. 24, 1789,§ 11,1Stat.78 33-34, 35
Act of Sept. 24, 1789, § 12,1 Stat.79 33-34, 35
Act of March 3, 1875, § 1, 18 Stat.470.... 35
1948 Judicial Code and Judiciary Act, 62 Stat. 930.. 36
1948 Judicial Code and Judiciary Act, 62 Stat. 937. 36

TABLE OF AUTHORITIES—Continued

65 ILCS para. 6/11-48.3-S ...... ...................200....00000200-000
65 ILCS para. 5/11-48.2-4 ......-....---ecceeceecneneenenenennees
735 ILCS paras. 5/3-101 to 5/3-112 .......................-..-.
TE A I BIO sence ccscccnecrcenesnssesesccesssceccusscece
ee
SS EE ee
Ue

MISCELLANEOUS:

H.R. Rep. No. 308, at App. 1701 (1947) (Reviser’s

RI wvcsctersinnietenttrenninnincenesemnnnenamagnaniapestanpenenmasingen ;

H.R. Rep. No. 101-374 (1990), reprinted in 1990
EPS f ee
1A James W. Moore, MOoRE’s FEDERAL PRACTICE
{ 0.157 [4.-8] (2d ed. 1996) ...............................:..
14 Charles A. Wright, Arthur R. Miller & Edward
H. Cooper, FEDERAL PRACTICE AND PROCEDURE
QE, ye
14A Charles A. Wright, Arthur R. Miller & Edward
H. Cooper, FEDERAL PRACTICE AND PROCEDURE
TR CED cicccccsesnensnestensttenennncticnnsescsenentiansenrenen

Page

IN THE
Supreme Court of the United States

OCTOBER TERM, 1996

No. 96-910

City OF CHICAGO, et al.,
¥. Petitioners,

INTERNATIONAL COLLEGE OF SURGEONS, ef all,

Respondents.

On Writ of Certiorari to the
United States Court of Appeals
for the Seventh Circuit

BRIEF FOR PETITIONERS

The City of Chicago, its Commission on Chicago His-
torical and Architectural Landmarks, Peter C.B. Bynoe,
Joseph A. Gonzales, John W. Baird, Kein L. Burton,
Marian Despres, Albert M. Friedman, Seymour Persky,
Larry Parkman, Christopher R. Hill, and Cherryl Thomas
(collectively “the City”) submit this brief as petitioners.

OPINIONS BELOW

The opinion of the court of appeals (Pet. App. 1a-25a)
is reported at 91 F.3d 981 (7th Cir. 1996). The opinions
of the district court (Pet. App. 26a-96a; J.A. 129-41) are

unreported
JURISDICTION

The judgment of the court of appeals was entered on
August 1, 1996. A timely petition for rehearing was
denied on November 4, 1996. Petitioners’ petition for
writ of certiorari was filed on December 4, 1996. This

2

Court granted the petition on April 14, 1997. The Court
has jurisdiction under 28 U.S.C. § 1254(1).’

STATUTES INVOLVED

Three statutory grants of jurisdiction to the federal
courts are relevant here. The federal question statute,
28 U.S.C. § 1331, provides:

The district courts shall have original jurisdiction
of all civil actions arising under the Constitution,
laws, or treaties of the United States.

The supplemental jurisdiction statute, 28 U.S.C. § 1367,
provides in pertinent part: )

(a) Except as provided in subsections (b) and
(c) or as expressly provided otherwise by Federal
statute, in any civil action of which the district courts
have original jurisdiction, the district courts shall have
supplemental jurisdiction over all other claims that
are so related to claims in the action that they form
part of the same case or controversy under Article III
of the United States Constitution. Such supplemental
jurisdiction shall include claims that involve the
joinder or intervention of additional parties. .. .

(c) The district courts may decline to exercise
supplemental jurisdiction over a claim under subsec-
tion (a) if—

1 Under 28 U.S.C. § 1447(d), orders of a district court remanding
a case to the state court from which it was removed for lack of
federal jurisdiction are not subject to any form of appellate review.
E.g., Things Remembered, Inc. v. Petrarca, 116 S. Ct. 494, 497-98
(1995). In this case, the district court did not remand the consoli-
dated cases before it to state court but instead entered a final
judgment on the merits. See Pet. App. 90a-9la. Accordingly, this
case was properly “in” the court of appeals within the meaning of
Section 1254(1) as an appeal from a final judgment under 28 U.S.C.
§ 1291. This Court, in turn, has consistently exercised jurisdiction
under Section 1254(1) over cases in which the district court did not
order a remand and the court of appeals held that it should have.
See, e.g., Mesa v. California, 489 U.S. 121 (1989); Grubbs v.
General Electric Credit Corp., 405 U.S. 699 (1972).

3

(1) the claim raises a novel or complex issue of
State law,

(2) the claim substantially predominates over
the claim or claims over which the district court
has original jurisdiction,
(3) the district court has dismissed all claims
over which it has original jurisdiction, or
(4) in exceptional circumstances, there are
other compelling reasons for declining jurisdic-
tion.
The removal statute, 28 U.S.C. § 1441, provides in
pertinent part:
(a) Except as otherwise expressly provided by
Act of Congress, any civil action brought in a State
court of which the district courts of the United States
have original jurisdiction, may be removed by the
defendant or the defendants, to the district court of
the United States for the district and division embrac-
ing the place where such action is pending. . . .

(b) Any civil action of which the district courts
have original jurisdiction founded on a claim or right
arising under the Constitution, treaties or laws of the
United States shall be removable without regard to
the citizenship or residence of the parties. . . .

(c) Whenever a separate and independent claim
or cause of action within the jurisdiction conferred by
section 1331 of this title is joined with one or more
otherwise non-removable claims or causes of action,
the entire case may be removed and the district court
may determine all issues therein, or, in its discretion,
may remand all matters in which State law predomi-
nates. ...

STATEMENT

The International College of Surgeons and the United
States Section of the International College of Surgeons
(collectively “ICS”), respondents in this Court, own two
parcels of land on North Lake Shore Drive in the City
of Chicago. Pet. App. 2a. One parcel is located at 1516

4

North Lake Shore Drive and is improved with a four-
story mansion, called the Edward T. Blair House to reflect
its historical significance. Pet. App. 2a. The other parcel
is located at 1524 North Lake Shore Drive and is improved
with a three-story mansion of historical significance, the
Eleanor Robinson Countiss House. Jbid. In July 1988,
the Commission on Chicago Historical and Architectural
Landmarks (the “Landmarks Commission”), an agency
of the City of Chicago created by the Chicago Landmarks
Ordinance, made a preliminary determination that a dis-
trict comprising seven buildings in that area, including the
properties at issue, satisfied the criteria for designation as
a landmark district under the Landmarks Ordinance. Pet.
App. 3a.* In June 1989, the Chicago City Council fol-
lowed this recommendation and enacted an ordinance
creating the landmark district. Ibid.

In February 1989, after the Landmarks Commission’s
preliminary determination, but before the City Council
had acted, ICS signed a contract for the sale and re-
development of the property. Pet. App. 3a. The contract
called for the demolition of all but the facades of the two

2 Under the ordinance, the Commission is empowered to make a
preliminary determination that an area should be designated as
a landmark. J.A. 163. After a public hearing, the Commission
makes its final determination whether to recommend that the area
should be designated. Jd. at 165-67. The Chicago City Council
then acts on the Commission’s recommenda ion. /d. at 167-68.
Once an area has received a preliminary landmark determination
from the Landmarks Commission or a final determination from the
City Council, no permit for any alteration, construction, demolition,
relocation, or other work in the landmarked area may issue without
the approval of the Commission. /d. at 169-70.

3 The State of Illinois has granted authority to its municipalities
to enact ordinances providing for the creation of landmark dis-
tricts. See 65 ILCS para. 5/11-48.2-2. The City of Chicago also
has authority to enact and enforce its Landmarks Ordinance under
the home-rule power granted by the Illinois Constitution. See Land-
marks Preservation Council v. City of Chicago, 125 Ill. 2d 164,
178-81, 531 N.E.2d 9, 15-16 (1988).

5

mansions and, behind the facades, the construction of a
forty-one story, high-rise building. Pet. App. 3a. The
sale was contingent on ICS’s ability to obtain all necessary
permits and approvals. /bid. Respondent Robin Construc-
tion Corp. acquired the developer's interest in late 1989.
Ibid. ICS applied for demolition permits in late 1990, and
after a public hearing, the Landmarks Commission dis-
approved the demolition permits in January 1991. Pet.
App. 3a; J.A. 20, 148.*

In February 1991, ICS filed suit in the Circuit Court
of Cook County, Illinois, seeking judicial review of the
Landmarks Commission’s decision. Pet. App. 3a; J.A.
17-56." The complaint alleged both state and federal
claims, including claims that the Landmarks Commission’s
decision denied ICS its due process rights under the Fifth
and Fourteenth Amendments, violated its right to equal
protection under the Fourteenth Amendment, and consti-
tuted an uncompensated taking of property in violation
of the Fifth and Fourteenth Amendments. J.A. 24-33.
The complaint also alleged that the Landmarks Ordinance
itself was facially unconstitutional under the Due Process
and Equal Protection Clauses. Id. at 22-24. The City
removed the case to the United States District Court for
the Northern District of Illinois, where it was docketed as
case number 91 C 1587. Id. at 11-16. In August 1991,
the district court denied ICS’s motion to remand the case
to state court, concluding that ICS’s complaint raised fed-
eral constitutional questions cognizable under 28 U.S.C.
§ 1331 and accordingly was within the scope of federal
removal jurisdiction under 28 U.S.C. § 1441. Pet. App.
94a-96a.

Also in February 1991, ICS filed an application with
the Landmarks Commission seeking demolition permits

* The procedures in the Landmarks Ordinance governing permit
applications are found at J.A. 169-74.

5 Under Illinois law, decisions of a municipal landmarks commis-
sion are “subject to judicial review pursuant to the provisions of
the Administrative Review Law... .” 65 ILCS para. 5/11-48.2-4.

6

on grounds of economic hardship. Pet. App. 4a; J.A. 72.°
Following public hearings, the Landmarks Commission
denied this request. Pet. App. 4a; J.A. 73. ICS then
filed a second action in state court seeking judicial review,
again alleging the same federal constitutional violations
as in its first complaint, along with certain statelaw
claims. J.A. 73-79. The City removed this action as well
to the district court, where it was docketed as case num-
ber 91 C 5564. Id. at 57-64."

After ICS’s two district court actions were consolidated,
the City moved to dismiss the complaints. J.A. 129. The
district court granted the motions in part, dismissing some
of ICS’s federallaw claims with prejudice and some with-
out prejudice, and denied the motions in part. /d. at 129-
41.

In February 1992, ICS filed an amended consolidated
complaint in federal court. J.A. 142. The complaint
alleged that the court had jurisdiction over the consoli-
dated actions because they fell within the district court's
federal-question jurisdiction under 28 U.S.C. § 1331. Id.

6 This procedure was permissible under the Landmarks Ordinance
which provides that if a permit application has been disapproved,
the applicant may then seek an economic hardship exception.
J.A. 174-77.

7ICS also submitted an application for approval of its redevelop-
ment plan by the Chicago Plan Commission, as required under
Chicago’s Lakefront Protection Ordinance, but after a public hear-
ing, the Plan Commission denied the application. Pet. App. 4a,
92a. ICS then sought an amendment to the Chicago Zoning Ordi-
nance permitting the proposed development, but the Chicago City
Council refused to approve the amendment. /d. at 4a. ICS filed
a third suit, this time in federal district court (case number 91 C
7849), seeking review of these determinations under both federal
and state law. Ibid. The district court stayed this third action
pending its disposition of the two actions that had been removed
from state court (ibid.) and later dismissed the case as moot (id.
at 92a-‘8a). This third action is not at issue here.

7

at 143. The complaint included federal due process, equal
protection, takings, and statelaw claims. /d. at 149-56.

In December 1994, the district court granted summary
judgment for the City. Pet. App. 89a. That court held
that the Landmarks Ordinance was constitutional under
both the United States and Illinois Constitutions and that
the Landmarks Commission's decisions denying ICS’s
demolition permit and economic hardship applications
were lawful under both Constitutions and under the Ordi-
nance itself. Jbid. ICS appealed.

The court of appeals reversed and ordered the case
remanded to the district court with instructions to remand
it to state court. Pet. App. 2a. The court of appeals
any “ ‘civil action brought in a State court of which
district courts of the United States have original jurisdic-
tion.” ” Id. at 6a-7a (quoting 28 U.S.C. § 1441(a)). The
inquiry under Section 1441(a) accordingly depends on
whether “the action originally could have been brought in
the district court.” Jd. at 7a. In this case, the district
court had ruled that ICS’s complaints were within federal-

County and removed to the district court contain facial
attacks [under the United States Constitution and] allega-
tions of unfairness of a federal constitutional dimension

___ The complaints also i State-law claims that were
grounded in the administrative record.” Pet. App. 20a.
The court of appeals recognized that under Chicago, R.I.
& P.R. Co. v. Stude, 346 U.S. 574 (1954), and Horton

v. Liberty Mutual Insurance Co., 367 U.S. 348 (1961),
“a state judicial proceeding to conduct de novo review of
a state administrative decision is a ‘civil action[{] . . . of
which the district court has original jurisdiction’ within
the meaning of 28 U.S.C. § 1441(a).” Pet. App. lla
(brackets and 2!!'psis in original). The court nevertheless
rejected this reswv'. for cases in which “the state administra-
tive review scheme provides for deferential review of a
state agency's decision.” Ibid. As the court of appeals
saw it, in such cases, deferential review “would require
the district court to perform an appellate role.” Jd. at
l4a. This “function . . could {not} be described as a
‘civil action’ within its original jurisdiction,” because “an
appellate function . . . is inconsistent with the character
of a court of original jurisdiction.” Ibid.

To determine whether this case was a “civil action”
within the district court’s “original jurisdiction,” the court
of appeals turned to Illinois law to analyze the type of
review a state court would give to ICS’s claims. Judicial
review of nonconstitutional questions is a statutory proce-
dure under the Illinois Administrative Review Law, which
requires courts to confine their review to the record of
proceedings before the administrative agency and to apply
a “deferential standard of review” to challenged agency
decisions. Pet. App. 18a-19a. In addition, [linois law
recognizes that an action seeking review of an agency's
decision can include “facial attacks on the constitutionality
of a statute or ordinance [that] are not dependent on the
factual record developed at the administrative hearing.”
Id. at 18a. Finally, Ilinois law recognizes that a plaintiff
aggrieved by an administrative decision may attack a
Statute’s constitutionality as applied to his own case and
that “[{s)uch a claim is independent of the administrative
review proceeding and is therefore plenary in its scope;
the court is not confined by the administrative record.”
Id. at 20a.

The court of appeals concluded that this case was a -

hybrid because it presented all of these claims. ICS’s

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case “cannot be termed a ‘civil action . . . of which
district courts . . . have original jurisdiction’ within the
meaning of [S]ection 1441(a).” Jd. at 22a (ellipses in

original ).
SUMMARY OF ARGUMENT

The removal statute permits removal of a state-court
action if it is a “civil action . . . of which the district courts
of the United States have original jurisdiction.” 28 U.S.C.
§ 1441(a). The lawsuits that ICS filed in state court seek-
ing review of decisions of the Landmarks Commission con-
tained claims that ICS’s federal constitutional rights had
been violated—claims that fell within original federal-
question jurisdiction under 28 U.S.C. § 1331—joined with

Gg

same transaction or “common nucleus of operative facts”
, a “civil action” within the “original jurisdiction”
of the district courts. E.g., Carnegie-Mellon University v.

_ Cohill, 484 U.S. 343, 349-50 (1988). Congress has codi-

10

fied this doctrine in the supplemental jurisdiction statute,
which expressly provides that in any “civil action of which
the district courts have original jurisdiction,” the court has
further jurisdiction over state-law claims when the claims
“are so related to claims in the action that they form part
of the same case or controversy under Article III of the
United States Constitution.” 28 U.S.C. § 1367(a).

The court of appeals precluded removal here based on
its conclusion that state-law claims seeking deferential re-
view of decisions of an administrative agency are not “civil
actions” within the district court’s original jurisdiction.
This conclusion shows two critical flaws.

First, state-law claims need not independently qualify
as a “civil action” within the district court’s “original ju-
risdiction” to be cognizable by federal courts. The plain
language of the supplemental jurisdiction statute makes
clear that state-law claims may be heard in federal court
under the district court’s “supplemental jurisdiction” as
long as they are part of the same case or controversy. ICS’s
state-law claims easily satisfy that test because they—like
the federal claims—arose from the same denials of ICS’s
applications for demolition permits.

Second, there is in fact no reason why the district court
lacks jurisdiction over cases containing claims seeking ju-
dicial review of an agency’s decision. Although a proceed-
ing before an administrative agency itself is not a “civil
action” and may not be removed, it has long been settled
that once that proceeding ends and a party to it seeks ju-
dicial review, the resulting judicial proceedings are re-
movable as a “civil action.” In Chicago, RI. & P.R. Co.
v. Stude, 346 U.S. 574 (1954), for example, the railroad
had sought review of an administrative decision in state
court, and this Court wrote that once a party aggrieved by
an administrative decision takes “a perfected appeal and
the jurisdiction of the state district court is invoked, it then
becomes in its nature a civil action and subject to removal

il

by the defendant to the United States District Court.” /d.
at 578-79. Accord Horton v. Liberty Mutual Insurance
Co., 367 U.S. 348, 354-55 (1961). While the court of ap-
peals endeavored to distinguish Stude and Horton on the
ground that those cases involved de novo review of an
agency’s decision and were for that reason alone “civil
actions” within “original jurisdiction,” this Court in Cali-
fano v. Sanders, 430 U.S. 99, 105-07 (1977), settled that
actions seeking to review the decisions of federal adminis-
trative agencies under the Administrative Procedure Act
(“APA”) are “civil actions” within “original jurisdiction”
under Section 1331; and it is quite clear that APA actions
ordinarily do not permit de novo review. E.g., Camp v.
Pitts, 411 U.S. 138, 141-42 (1973) (per curiam).

There is thus no basis in the text of the pertinent juris-
dictional statutes or in this Court’s precedents for the con-
clusion that the presence of state-law claims seeking on-the-
record review of an agency’s decision renders a case some-
thing other than a “civil action” within “original jurisdic-
tion.” Only creation of some sort of nonstatutory admin-
istrative review exception to federal jurisdiction could sup-
port the decision below. But since, under Califano v.
Sanders, review of federal agency action is a “civil action”
within the “original jurisdiction” of the district courts, the
exception would exist only for federal judicial review of
state or local agency decisions. Generally, such a different

treatment of state and local agency decisions is based on
this Court’s concern for federalism.

Federalism, however, is hardly advanced by permitting
federal courts, under Stude and Horton, to hear de novo
attacks on state and local administrative decisions, but yet
denying those courts the ability to give deference to those
decisions. Nor is federalism served by denying state and
local agencies the forum of their choice when, as here, they
choose to defend their decisions in federal court. Finally,
a special exception to federal jurisdiction for state admin-
istrative review claims is not necessary—for reasons of

12

federalism or otherwise—to prevent inappropriate federal
intrusion on state law. To the contrary, the abstention cases
make clear that the federal court has jurisdiction over even
sensitive state-law issues, although there will be narrow
circumstances in which the court should decline to exercise
that jurisdiction.
ARGUMENT

One long-settled proposition of law supports the exercise
of federal jurisdiction over the actions ICS filed: actions in
which the plaintiff claims rights under federal law are with-
in federal jurisdiction even when those claims are joined
with claims seeking relief under state law. For decades
it has been settled that federal-question jurisdiction is not
defeated if the complaint also contains state-law claims
arising from the same controversy between the parties.
Here, ICS’s state-court complaints alleged separate federal
and state theories of liability, but they arose from a single
event—the City’s refusal to issue demolition permits for
ICS’s landmarked property. Under the well-established
doctrine of pendent jurisdiction—now codified in the sup-
plemental jurisdiction statute—a federal court has jurisdic-
tion to hear related state-law claims along with the claims
arising under federal law.

The court of appeals concluded that this rule does not
reach state-law claims subject to on-the-record review of an
administrative agency’s decision. There is no support for
this holding in the text of the pertinent jurisdictional stat-
utes, in this Court’s decisions, or in the jurisprudential pol-
icies that govern the ability of the federal courts to hear
state-law claims. In fact, this Court has rejected both prem-
ises underlying the holding below. It has held that a state-
law claim seeking review of an administrative decision may
be removed, and that a district court may hear an attack
on a federal agency’s decision even though applicable law
requires deferential and on-the-record review. Combining
two elements neither of which in itself has ever been
thought to defeat the exercise of federal jurisdiction—state-

13

law challenges to an agency’s decision and review on a
deferential standard—is surely no basis to erect a new
jurisdictional limitation on the federal courts.

L ICS’S COMPLAINTS ALLEGE FEDERAL QUES-
TIONS AND WERE THEREFORE REMOVABLE.

As the court of appeals acknowledged, ICS’s state-court
complaints contained claims arising under federal law
joined with state administrative review claims. Under the
plain language of the pertinent jurisdictional statutes, this
type of joinder does not defeat removal jurisdiction.

A. A State-Court Complaint Alleging Federal And
State Claims Is Removable.

The removal statute provides for removal of “any civil
action brought in a State court of which the district courts of
the United States have original jurisdiction.” 28 U.S.C.
§ 1441(a). Accordingly, “state court actions that orig-
inally could have been filed in federal court may be re-
moved to federal court by the defendant.” Caterpillar
Inc. v. Williams, 482 U.S. 386, 392 (1987). Here, “as
for many cases . . . the propriety of removal turns on
whether the case falls [into] original ‘federal question’ ju-
risdiction . . . .” Franchise Tax Board v. Construction
Laborers Vacation Trust, 463 U.S. 1, 8 (1983). That
question, in turn; depends on whether ICS’s complaints
were “civil actions arising under the Constitution, laws, or
treaties of the United States.” 28 U.S.C. § 1331.

That issue, however, is not controlled by whether ICS
alleged state-law claims in addition to its federal claims.
That much was settled by Siler v. Louisville & N.R. Co.,
213 U.S. 175 (1909). In that case, the railroad filed suit
in federal court to enjoin a rate order issued by a state
railroad commission, and alleged both federal constitutional
and state-law claims. Id. at 176-77. The Court held that
federal-question jurisdiction authorized the federal court
to exercise jurisdiction over both the federal and state-law

14

grounds. “The Federal questions as to the invalidity of the
state statute because, as alleged, it was in violation of the
Federal Constitution, gave the [federal] circuit court ju-
risdiction, and having properly obtained it, that court had
the right to decide all questions in the case... .” Id. at
191.

In Hurn v. Oursler, 289 U.S. 238 (1933), the Court re-
fined this doctrine by holding that pendent jurisdiction
under Siler over state-law claims extended to all claims that
arise from the same cause of action that gave rise to the
federal claims. See id. at 243-46. In United Mine Workers
v. Gibbs, 383 U.S. 715 (1966), the Court broadened this
pendent jurisdiction to reach all state-law claims joined
with federal claims that arise from “but one constitu-
tional ‘case.’” Id. at 725 (footnote omitted). And that
test is satisfied when “[t]he state and federal claims . . . de-
rive from a common nucleus of operative fact.” bid.

Thus, this Court has construed Section 1331 to require
only that the complaint contain some claim that invokes
federal-question jurisdiction. That, then, is a “civil action”
within “original jurisdiction” as that term is used in the
federal-question statute. The addition of state-law claims
that arise from the same nucleus of fact does not defeat
jurisdiction over that civil action. E.g., Carnegie-Mellon
University v. Cohill, 484 U.S. 343, 349 (1988); Aldinger
v. Howard, 427 US. 1, 9 (1976).

The supplemental jurisdiction statute explicitly recog-
nizes this. It codifies the doctrine of pendent jurisdiction by
providing that “in any civil action of which the district
courts have original jurisdiction, the district courts shall
have supplemental jursdiction over all other claims that are
so related to claims in the action within such original ju-
risdiction that they form part of the same case or contro-
versy.” 28 U.S.C. § 1367(a). Again, all that matters is
the existence of a “civil action” within “original jurisdic-
tion”; state-law claims that arise from the same constitu-

15

tional “case” are within supplemental jurisdiction and are,
for that reason, also within the jurisdiction of the district
court.* Under this plain language, joinder of state-law
claims arising from the same transaction as the federal
claims does not destroy federal jurisdiction but rather is a
basis for the exercise of supplemental jurisdiction.

For this same eason, joinder of federal and state-law
claims does not defeat removal jurisdiction. The removal
Statute uses the same phrase as the federal-question and
supplemental jurisdictional statutes. It creates removal
jurisdiction for “any civil action . . . of which the district
courts of the United States have original jurisdiction.” 28
U.S.C. § 1441(a). These identical phrases, which arise in
an interrelated statutory scheme, should surely be inter-
preted to have the same meaning. See, e.g., Commissioner
v. Lundy, 116 S. Ct. 647, 655 (1996); Gustafson v.
Alloyd Co., 115 S. Ct. 1061, 1067 (1995); Ratzlaf v.
United States, 510 U.S. 135, 143 (1994). And if a con-
sistent interpretation is given to “civil action” within “orig-
inal jurisdiction,” a complaint is removable even if state-law
claims are joined with federal claims, for the same reason
that such a complaint can be filed in the district court in
the first instance: the district court’s original and supple-
mental jurisdiction reaches all claims arising from a single
transaction.

And because removal is proper whenever the district
court would have had original jurisdiction had the case or-
iginally been brought there, a complaint filed in a state
court containing both federal and state claims is remov-
able. See, e.g., Carnegie-Mellon, 484 U.S. at 350-51

8 The courts of appeals have held that Section 1367 extends the
federal court’s authority to hear such claims to the full corstitu-
tional extent conferred by Article III. See, e.g., Ammerman v.
Sween, 54 F.3d 428, 424 (7th Cir. 1995) ; Rodriguez v. Pacificare of
Texas, Inc., 980 F.2d 1014, 1018 (5th Cir.), cert. denied, 508 U.S.
956 (1998).

16

(pendent state-law claims properly removed under Sec-
tion 1441).

The legislative history of the supplemental jurisdiction
statute confirms that Congress intended to authorize the
exercise of federal jurisdiction over cases in which federal
and state claims are joined. The House Report explains:
“In federal question cases, [the statute] broadly authorizes
the district courts to exercise supplemental jurisdiction over
additional claims .. . .” H.R. Rep. No. 101-734, at 28
(1990), reprinted in 1990 U.S.C.C.A.N. 6860, 6874.
It is also clear from the legislative history that these addi-
tional claims are ones over which the federal courts would
not otherwise have jurisdiction. See id. at 27, 1990
U.S.C.C.A.N. at 6873. And both before and after the
enactment of the supplemental jurisdiction statute the lower
federal courts have universally held that there is federal
jurisdiction over suits containing federal and state claims,
including state-law challenges to the land-use decisions
of local administrative agencies. See, ¢.g., Bickerstaff
Clay Products Co. v. Harris County, 89 F.3d 1481, 1484-
85 n.4 (llth Cir. 1996) (district court had power to
hear zoning claims under supplemental jurisdiction when
joined with Section 1983 claims alleging takings viola-
tions); Ortega Cabrera v. Municipality of Bayamon, 562
F.2d 91, 96-97 (ist Cir. 1977) (pendent jurisdiction
properly exercised over state-law nuisance and environ-
mental claims joined with Section 1983 claim).

The supplemental jurisdiction statute—using identical
language to the removal statute and unquestionably recog-
nizing federal jurisdiction in cases in which state-law
claims are joined with a federal claim—thus provides
proof positive that a “civil action” within “original juris-
diction” is removable when federal and state claims are
joined. We turn therefore to the question whether ICS’s
complaints fall within original—and hence removal—ju-
risdiction because they alleged claims falling within
federal-question jurisdiction, properly joined with state-law
claims.

17

B. The Complaints At Issue Here Allege Claims That
Arise Under The Federal Constitution.

The City removed ICS’s state-court complaints from
state to federal court because those complaints contained
claims within federal-question jurisdiction—namely that
the Landmarks Commission’s refusal to issue demolition
permits, as well as the Landmarks Ordinance itself, vio-
lated ICS’s rights under the United States Constitution.
J.A. 22-33, 73-76. The complaints, although not broken
out into separate counts, contain numerous allegations of
federal constitutional violations. The first complaint spe-
cifically alleged that the particular ordinance authorizing
the Landmarks Commission’s preliminary designation of
ICS’s property as a landmark deprived ICS of its right
under the United States Constitution to due process of
law. Id. at 22-23. The complaint further alleged that the
Landmarks Ordinance’s exemption for property used for
religious purposes violated federal due process and equal
protection guarantees. /d. at 23-24. And the complaint
alleged that the ordinance landmarking this particular
property was a taking of property without the payment of
just compensation in violation of the Takings Clause of
the Fifth Amendmert and also constituted arbitrary legis-
lative action in violation of due process and equal protec-
tion principles. Jd. at 24-26. The complaint further alleged
that the Landmarks Commission took a variety of steps to
deprive ICS of a fair hearing in violation of the Due
Process Clause. Jd. at 26-32, 33. In ICS’s second state-
court complaint, which challenged the denial of its applica-
tion for an economic hardship exception, there are six as-
signments of error that rest solely on the United States Con-
stitution, and two more that rest cn both the Federal and
the Illinois Constitutions. Jd. at 73-76. In both complaints.

® The removal petitions cited 28 U.S.C. § 1441(b), which provides
for removal! “founded on a claim or right arising under the Constitu-
tion, treaties or laws of the United States .. . without regard to
the citizenship or residence of the parties.”

18

ICS asked for a declaration that both the Landmarks
Ordinance itself and the particular ordinance landmark-
ing ICS’s property were unconstitution] and that the Land-
marks Commission’s decisions on its applications were
illegal as well. Jd. at 35, 78.”

A case “arise[s] under” federal law, within the meaning
of Section 1331, when “a right or immunity created by the
Constitution or laws of the United States [is] an element,
and an essential one, of the plaintiff's cause of action.”
Gully v. First National Bank, 299 U.S. 109, 112 (1936).
Accord, e.g., Christianson v. Colt Industries Operating Co.,
486 U.S. 800, 808 (1988); Franchise Tax Board, 463
U.S. at 10-11; Phillips Petroleum Co. v. Texaco, Inc., 415
U.S. 125, 127 (1974) (per curiam).” Here, ICS for-
warded claims that had, as an essential element, a right or
immunity created by the Constitution.

ICS styled its complaints as complaints for administra-
tive relief pursuant to the Illinois Administrative Review
Act, 735 ILCS paras. 5/3-101 to 5/3-112. Such actions
are proceedings in which the record before the agency is
reviewed to ensure its compliance with all applicable law.
See Stratton v. Wenona Community Unit District No. 1,
132 Ill. 2d 413, 427, 551 N.E.2d 640, 645 (1990). As
the court of appeals acknowledged (Pet. App. 17a-20a),
administrative review complaints properly include claims

1° Indeed, when ICS filed an amended complaint in the district
court, it acknowledged that its lawsuit raised federal claims that
arose under federal law within the meaning of Section 1331. See
J.A. 148.

11 In addition to federal-question jurisdiction under Section 1331,
the district courts have original jurisdiction over any action “[t]o
redress the deprivation, under color of any State law, statute, ordi-
nance, regulation, custom or usage, of any right, privilege, or im-
munity secured by the Constitution of the United States... .”
28 U.S.C. § 13843(3). We do not separately discuss Section 1348 (3),
since the jurisdictional inquiry under that Section does not differ
meaningfully from the inquiry under Section 1331.

19

that the administrative decision violates a federal consti-
tutional right of the aggrieved party. See Howard v. Law-
ten, 22 Ill. 2d 331, 333, 175 N.E.2d 556, 557 (1961);
Winston v. Zoning Board of Appeals, 407 Ill. 588, 591-
92, 95 N.E.2d 864, 867-68 (1950). On constitutional
claims, the reviewing court may admit evidence beyond
the administrative record. See Stratton, 133 Ill. 2d at
428-30, 551 N.E.2d at 646. And when such claims are
“an integral part of review” of a local agency’s decision
applying a local ordinance, they do “not have to be
pleaded in a separate count.” Howard, 22 Ill. 2d at 333;
175 N.E.2d at 557.”

The federal constitutional claims alleged in the admin-
istrative review complaints arose under federal law. ICS
straightforwardly claimed that the United States Constitu-
tion granted it a right to have the Landmarks Commis-
sion’s decisions set aside. These claims were in no way
dependent on state law. Rather, to obtain relief, ICS
would have to establish a violation of its federal constitu-
tional rights—no more and no less. Thus it asserted a fed-
eral “right or immunity.” This is the same principle that
governs the “complete preemption” cases, which “arise un-
der” federal law within the meaning of Section 1331 even
when a complaint purports to plead only a state-law claim.
If the state-law theory advanced in such a complaint falls
within an area that is completely prcempted by federal law,
the action is within federal-question jurisdiction, and there-
fore is removable, because there simply is no state law to
apply. See, e.g., Caterpillar Inc. v. Williams, 482 U.S. at
393; Metropolitan Life Insurance Co. v. Taylor, 481 U.S.
58, 63-67 (1987); Franchise Tax Board, 463 U.S. at 24.
Here, ICS’s federal constitutional claims that it was en-
titled to demolition permits regardless of any state or local
statute, ordinance, or rule of law arose under federal law

12In fact, under Illinois practice it is always proper to plead
an equitable action in a single count. See Ill. Sup. Ct. R. 135(a).

20

for this same reason. On those claims, there is simply no
state law to apply.

For this reason, ICS’s election to use its state statutory
adininistrative review remedy—and to plead in a single
count—does not mean that it failed to raise claims under
federal law. ICS chose to plead numerous federal consti-
tutional claims and thereby to invoke its federal rights.
ICS’s desire to litigate claims arising under federal law
in state court cannot defeat the statutory right of removal.
As the Court explained in Federated Department Stores,
Inc. v. Moitie, 452 U.S. 394 (1981), the federal “courts
‘will not permit plaintiff to use artful pleading to close off
defendant’s right to a federal forum.’” /d. at 397 n.2
(quoting 14 Charles A. Wright, Arthur R. Miller & Ed-
ward H. Cooper, FEDERAL PRACTICE AND PROCEDURE
§ 3722 at 564-66 (1976)). See also Metropolitan Life In-
surance, 481 U.S. at 63-67 (a plaintiff's decision to plead
a state claim will not defeat removal when federal law gov-
erns the plaintiff's rights). Instead, the courts will “deter-
mine whether the real nature of the claim is federal, regard-
less of plaintiffs characterization.” Federated Depart-
ment Stores, 452 U.S. at 397 n.2 (citation omitted). See
also, e.g., Bell v. Hood, 327 U.S. 678, 681-82 (1946)
(complaint need not spell out federal constitutional claims
specifically to sustain federal-question jurisdiction); Hop-
kins v. Walker, 244 U.S. 486, 489-91 (1917) (where
“form and substance” of plaintiffs’ complaint states a claim
under the laws of the United States, federal jurisdiction
exists).

To be sure, the administrative review procedure invoked
by ICS was created by state statute, and it is frequently the
case, as Justice Holmes wrote, that “[a] suit arises under
the law that creates the cause of action.” American Well
Works Co. v. Layne & Bowler Co., 241 U.S. 257, 260
(1916). The Court acknowledged in Franchise Tax
Board, however, that “it is well settled that Justice Holmes’

21

test is more useful for describing the vast majority of cases
that come within the district court’s original jurisdiction
than it is for describing which cases are beyond district
court jurisdiction.” 463 U.S. at 9. The Court added that
“even the most ardent proponent of the Holmes test has
admitted that it has been rejected as an exclusionary prin-
ciple.” Ibid. (citing Flournoy v. Wiener, 321 U.S. 253,
270-72 (1944) (Frankfurter, J., dissenting)). Here, al-
though a state statute authorized the proceeding by which
ICS sought review of the refusal to issue it demolition per-
mits, its complaints plainly alleged that it was entitled to
those permits as a matter of federal constitutional right.
Such a claim arises under federal law precisely because it
is based on a “right or immunity created by the Constitu-
tion or laws of the United States ... .” Franchise Tax

Board, 463 U.S. at 10-11 (quoting Gully, 299 U.S. at
112).”

Of course, even if ICS’s federal constitutional claims
were deemed to arise under the state administrative review
Statute rather than federal law, that would not defeat
federal-question jurisdiction here because they could not
be adjudicated without a determination whether federal
law granted ICS the rights it asserted. In Franchise Tax
Board, the Court wrote that it has “often held that a case
‘arose under’ federal law where the vindication of a right
under state law necessarily turned on some construction

18 When a plaintiff alleges a violation of federal law, but federal
law grants it no right of action to seek relief, the claim does not
arise under federal law. That was the holding in Merrell Dow
Pharmaceuticals Inc. v. Thompson, 478 U.S. 804, 817 (1986). Here,
ICS alleged that the refusal to approve its applications for demoli-
tion permits denied it due process and constituted a taking of its
property without payment of just compensation; and the existence
of a right of action for a violation of these federal rights by the
decision of a state or local agency is clear. See, ¢g., Allegheny
Pittsburgh Coal Co. v. County Commission, 488 U.S. 366 (1989)
(Equal Protection Clause); Nollan v. California Coastal Commis-
sion, 483 U.S. 825 (1987) (Takings Clause) ; Logan v. Zimmerman
Brush Co., 455 U.S. 422 (1982) (Due Process Clause).

22

of federal law.” 463 U.S. at 9. Thus, federal-question
jurisdiction extends to “ ‘those cases in which a well-
pleaded complaint establishes either that federal law cre-
ates the cause of action or that the plaintiff's right to relief
necessarily on resolution of a substantial question
of federal law.’” Christianson, 486 U.S. at 808 (quoting
Franchise Tax Board, 463 U.S. at 27-28 (emphasis

added) ).

For example, in Smith v. Kansas City Title & Trust Co.,
255 U.S. 180 (1921), a shareholder brought suit to en-
join officers of the trust company from investing in fed-
eral loan bonds because, the shareholder alleged, such an
investment was beyond the bank’s powers, and the acts of
Congress authorizing the bond sale were unconstitutional.
See id. at 195-96, 198. As the Court explained, “(t]he
general rule is that, where it appears . . . that the right to
relief depends upon the construction or application of the
Constitution or laws of the United States, and that such
Federal claim is not merely colorable, and rests upon a
reasonable foundation, the district court has jurisdiction
_...” Id. at 199. On this basis, the Court determined that
the federal court had jurisdiction over Smith’s suit, pur-
portedly brought under state law, because “[t}he decision
depends upon the determination of this [federal constitu-
tional] issue.” Jd. at 201. Accord Hopkins, 244 U.S. at
489 (case “aris[es] under” laws of the United States
“where an appropriate statement of the plaintiff's cause
of action . . . discloses that it really and substantially in-
volves a dispute or controversy respecting the validity, con-
struction, or effect of a law of Congress”). Thus, although
the case may not arise under federal law when federal law
is merely one element of a state-law theory of liability, it
does arise under federal law when the plaintiff's claims
depend solely on the existence of a constitutional right.
Cf. Merrell Dow Pharmaceuticals Inc. v. Thompson, 478
U.S. 804, 814 n.12 (1986) (jurisdictional inquiry turns
on whether federal or state-law issues predominate).

23

Under this test, even if ICS’s complaints read
predicated solely on a state-created right to obtain judicial
review of an administrative decision, they still assert a
right arising under federal law. ICS explicitly alleged that

not be used to adjudicate these claims.”

Accordingly, ICS’s federal constitutional allegations, al-
though advanced in the framework of administrative re-
view complaints, turned solely on issues of federal law.

These complaints arose under federal law within mean-
ing of Section 1331. z= =

C. ICS’s Complaints Invoked Federal Jurisdiction.

ICS’s complaints properly invoked federal jurisdiction
over this action. A complaint that makes claim to rights
arising under federal law, even if those claims prove merit-
less, supports federal jurisdiction as long as those claims
are not “frivolous or so insubstantial as to be beyond the
jurisdiction of the District Court.” Hagans v. Lavine, 415
U.S. 528, 539 (1974); accord, e.g., Bray v. Alexandria
Women’s Health Clinic, 506 U.S. 263, 285 (1993); Duke

District No. 2 v. St. L. Sw. Ry. Co., 257 US.
. . Ry. Co., 547
example, the Court allowed removal even though state procedures

24

Power Co. v. Carolina Environmental Study Group, Inc.,
438 U.S. 59, 70-71 (1978); Bell v. Hood, 327 US. at
683-84. ICS’s claims challenging the constitutionality of
the Landmarks Commission’s decisions and seeking a
declaration to that effect were sufficiently substantial to
avoid that difficulty. While we agree with the district court
that those claims are in fact without merit, the district
court’s opinions make clear that these claims were not
wholly illusory or frivolous. See Pet. App. 33a-46a; J.A.
134-39. Indeed the court of appeals agreed that this case
includes “claims that, if brought alone would be removable
to federal court.” Pet. App. 20a.

That should have been enough to sustain removal ju-
risdiction. As we explain above, as long as a complaint
contains some claims that invoke federal-question jurisdic-
tion, it constitutes a “civil action” within the district court’s
“original jurisdiction” even if those claims are joined with
state-law claims. Related state-law claims can be heard
under the district court’s supplemental jurisdiction. Under
that statute, when there is a “civil action” within the dis-
trict court’s “original jurisdiction,” that court “shall have
supplemental jurisdiction over all other claims that are so
related to claims in the action . . . that they form part
of the same case or controversy.” 28 U.S.C. § 1367(a).
Here, ICS’s state-law claims arise from the same nucleus
of operative fact as its federal claims—its inability to ob-
tain demolition permits for its landmarked property. And
in such cases, under the supplemental jurisdiction statute,
the district court “shall have supplemental jurisdiction.” “

Even if ICS’s state-law claims were deemed to be sep-
arate from its federal claims and hence not within the dis-
trict court’s supplemental jurisdiction, that would not de-

** At most, the statute permits a district court to decline to
exercise supplemental jurisdiction when there are novel or complex
issues of state law, when state-law claims predominate over federal
claims, or in other exceptional circumstances. See 28 U.S.C.
§ 1367(c). None of these exceptions applies here.

25

feat removal. That is because the removal statute also pro-
vides: “Whenever a separate and independent claim or
cause of action within the jurisdiction conferred by section
1331 of this title is joined with one or more otherwise non-
removable claims or causes of action, the entire case may
be removed... .” 28 U.S.C. § 1441(c). Thus, it hardly
matters whether ICS’s state-law claims are considered suf-
ficiently related to its federal claims to fall within sup-
plemental jurisdiction; in either case removal was proper
here.

Of course, the court of appeals did not hold that ICS’s
complaints were non-removable because they contained no
claims arising under federal law, nor did it hold that the
complaints were non-removable merely because they con-
tained state-law claims. Rather the court below held that
when state-law claims that seek deferential review of an
administrative decision based on the record before the
agency are present in a complaint, such claims defeat re-
moval. It is to that question that we next turn.

Il. THE PRESENCE OF A STATE ADMINISTRATIVE
REVIEW CLAIM IN A STATE-COURT COMPLAINT
DOES NOT DEFEAT REMOVABILITY.

The court of appeals’ holding that the inclusion in ICS’s
complaints of state-law administrative review claims over
which a court would not exercise de novo review made the
lawsuit something other than a “civil action” within “orig-
inal jurisdiction” and hence non-removable is erroneous
for three reasons. First, under the plain language of the
supplemental jurisdiction statute, such state-law claims
need not independently qualify as a “civil action” within
the federal court's “original jurisdiction” as long as they
constitute “claims” that are sufficiently “related to” a “civil
action” within “original jurisdiction.” Second, there is

"* Under this statute, at most, a district court “may remand all
matters in which State law predominates.” 28 U.S.C. § 1441(c).

26

nothing about actions seeking on-the-record judicial review
of an administrative decision that renders them beyond
the jurisdictional competence of the district courts. Third,
even if a state-court complaint contains some claims not
within any form of federal jurisdiction, that does not de-
feat removal of the claims that are within federal juris-
diction.

A. ICS’s State Administrative Review Claims Fall

Within Supplemental Jurisdiction.

The court of appeals concluded “if even one claim in an
action is jurisdictionally barred from federal court. . .
or does not fit within the original or supplemental (see 28
U.S.C. § 1367) jurisdiction of the federal courts, then, as
a consequence of § 1441(a), the whole action cannot be
removed to federal court.” Pet. App. 21a (quoting
Frances J. v. Wright, 19 F.3d 337, 341 (7th Cir.), cert.
denied, 115 S. Ct. 204 (1994)). The court of appeals
failed to recognize, however, that all of ICS’s claims fall
within federal jurisdiction—the federal claims within orig-
inal jurisdiction and the state claims within supplemental
jurisdiction.

The plain language of the supplemental jurisdiction
Statute, as we explain above, makes clear that when a com-
plaint contains claims falling within federal-question juris-
diction, the district court also has supplemental jurisdiction
over “all other claims” that form part of the same case or
controversy. As we also explain above, ICS’s state-court
complaints contained claims falling within federal-question
jurisdiction, and its state-law claims derived from the same
nucleus of operative fact. For just these reasons, the dis-
trict court determined that the requirements of supple-
mental jurisdiction were satisfied, and the court exercised
that jurisdiction here. See Pet. App. 45a-46a.

The court of appeals explained at some length why it
believed that ICS’s state-law administrative review claims
did not constitute a “civil action” within “original juris-

27

diction” (see Pet. App. 7a-19a), but apparently failed to
consider whether these were “claims” within the meaning
of the supplemental jurisdiction statute. Whether or not
these claims independently qualify as a “civil action”
within “original jurisdiction,” surely these statelaw bases
for challenging the Landmarks Commission’s decisions are
“claims,” as the court of appeals appears to have acknowl-
edged. See id. at 4a, 20a, 23a (referring to ICS’s admin-
istrative review claims as “claims”). And the whole point
of the supplemental jurisdiction statute is, of course, that
the federal court need not have original jurisdiction over
the claims falling within its supplemental jurisdiction.
Rather, as we explain above, the doctrines of pendent,
and now supplemental, jurisdiction were created precisely
to provide jurisdiction for claims that did not independ-
ently meet federal jurisdictional requirements, but that
were joined with a claim that did.

To the extent that the court of appeals addressed this
portion of our submission, the court appears to have re-
jected reliance on Section 1367(a) not because ICS’s
State-law claims were not “claims” sufficiently “related to”
its federal claims within the meaning of the supplemental
jurisdiction statute, but instead because it considered
claims seeking deferential review based on an agency
record to be a forin of “appellate review {that] can hardly
be characterized as a ‘claim’ in an ‘original action.’” Pet.
App. 22a. But a requirement that supplemental claims
be an “original action” involving de novo review appears
nowhere in the text of Section 1367—the statute refers
only to “claims” that are “related to” the “civil action”
within “original jurisdiction.” And the statute plainly con-
tains no exemption to supplemental jurisdiction for state
administrative review claims, nor for claims involving local
land-use issues, as we explain above. At most the statute
authorizes a district court to decline to exercise supple-
mental jurisdiction over state-law issues in certain narrow
circumstances (see 28 U.S.C. § 1367(c)) and plainly does

28

not contain the blanket administrative-review exception to
federal jurisdiction announced by the court below.

Accordingly, whether or not ICS’s statelaw claims
could be considered a “civil action” within “original jur-
isdiction,” they were within the district court’s supple-
mental jursdiction because they were joined with non-
frivolous, related federal-law claims. And when all the
claims in a complaint are within either original or supple-
mental jurisdiction, the entire case is removable. See,
e.g., Zuniga v. Blue Cross and Blue Shield of Michigan,
52 F.3d 1395, 1399 (6th Cir. 1995) (action removable
where due process claim provided federal question juris-
diction and state-law contract and statutory claims fell
within supplemental jurisdiction); Borough of West
Mifflin v. Lancaster, 45 F.3d 780, 785-87 (3d Cir. 1995)
(action that included Section 1983 claims and supple-
mental state-law tort claims properly removed under Sec-
tion 1441(a)). See also Carnegie-Mellon, 484 U.S. at
350-51 (removal of pendent claims prior to enactment of
supplemental jurisdictional statute proper ).

B. Administrative Review Claims Can Be Heard By
The District Courts.

In any event, the court of appeals was incorrect that an
action seeking deferential review on the record of pro-
ceedings before a state or local administrative agency is
not removable because “removal to federal court would re-
quire the district court to perform an appellate role . . . that
could {not] be described as a ‘civil action’ within its orig-
inal jurisdiction.” Pet. App. 14a. This conclusion is
squarely inconsistent with the scope of the district court’s
jurisdiction to review federal agency decisions.

The Administrative Procedure Act (“APA”) grants a
right of judicial review to persons aggrieved by a decision
of a federal administrative agency. See 5 U.S.C. §§ 701-
706. Yet the APA ordinarily does not permit trial de

29

novo in the district court. See Camp v. Pitts, 411 US.
138, 141-42 (1973) (per curiam). The statute also re-
quires courts to gramt a substantial measure of deference
to an agency's decision; an agency's decision will be set
aside only where “arbitrary, capricious, an abuse of dis-
cretion, or otherwise not in accordance with law” upon
review of the “whole record.” 5 U.S.C. § 706." And
this is a narrow form of review. As the Court explained
in Motor Vehicle Manufacturers Association v. State
Farm Mutual Automobile Insurance Co., 463 US. 29
(1983), “the ‘arbitrary and capricious’ standard is narrow
and a court is not to substitute its judgment for that of
the agency.” Jd. at 43. The APA thus requires courts to
grant substantial deference to the decision of the agency.
See, e.g., Thomas Jefferson University v. Shalala, 512
U.S. 504, 512 (1994). Indeed this point was settled
as early as O'Leary v. Brown-Pacific-Maxon, 340 US.
504 (1951), in which the Court upheld an agency’s
decision as supported by the record because the Court
found that the testimony before the agency was “con-
sistent and credible” and its finding was a rational one.
See id. at 508.

Despite the deferential review of federal agency actions,
this Court, in Califano v. Sanders, 430 U.S. 99 (1977),
held that the district courts have original federal-question
jurisdiction under Section 1331 over actions seeking re-
view of decisions under the APA. See id. at 105-07. See
also McCartin v. Norton, 674 F.2d 1317, 1320 (9th Cir.
1982) (“{w]hile the Administrative Procedure Act does
not confer jurisdiction on the federal courts to review
agency action, it is now clear that 28 U.S.C. § 1331{]
does”). Thus the very form of review that the court of
appeals here deemed inconsistent with a district court’s
removal jurisdiction—deferential review based on the

17 In certain circumstances, the agency decision also can be set
aside where it is not supported by substantia] evidence. See 5 U.S.C.
§ 706(2) (E); Citizens to Preserve Overton Park, Inc. v. Volpe,
401 U.S. 402, 414 (1971).

30

agency record rather than de novo review in the district
court—was held to qualify as a “civil action” within
“original jurisdiction” in Califano v. Sanders. And, as
we explain in Part IA above, if an actior falls within
federal-question jurisdiction under Section 1331, it is also
removable under Section 1441.

The holding below can be reconciled with federal-
question jurisdiction over APA actions only if district courts
are considered jurisdictionally competent to provide defer-
ential review of federal but not state or local adminis-
trative decisions. Yet, there is nothing in the text of the
pertinent jurisdictional statutes to suggest that a district
court can perform what the court of appeals branded an
“appellate role” when it reviews the decision of a federal
agency under federal law, but not when it reviews the
decision of a state agency under state law. The plain
meaning of the phrase “civil action” would seem to in-
clude all administrative review claims—administrative
review claims are “civil” in character and involve an
“action” seeking judicial redress for an alleged violation
of law. And in fact, this Court has not recognized any
special jurisdictional rules governing state-law challenges
to an administrative decision. To the contrary, the Court
has acknowledged at least twice that actions seeking to
review the decision of an administrative agency on state-
law grounds qualify as “civil actions” within “original
jurisdiction” under the diversity jurisdiction statute, which
uses the same terminology found in the federal-question
and removal statutes.”

18 The diversity jurisdiction statute provides, in pertinent part:

(a) The district courts shall have original jurisdiction of all
civil actions where the matter in controversy exceeds the sum
or value of $50,000, exclusive of interest and costs, and is

between—
(1) citizens of different States....

28 U.S.C. § 1832.

31

In the first of those cases, Chicago R.I. & P.R. Co. v.
Stude, 346 U.S. 574 (1954), the railroad filed suit in
State court challenging the amount of the condemnation
damages that a county commission had assessed against
it for the acquisition of certain land, and then removed
the action to federal court because the parties were of
diverse citizenship. See id. at 576. The Court acknowl-
edged that a proceeding before an administrative agency
is not a “civil action,” but that once judicial review is
sought in state court, the proceeding becomes a removable
civil action:

[t]he proceeding before the [commission appoin
by the) sheriff fs administrative until the arsbal hes
been taken to the district court of the county. Then
the proceeding becomes a civil action pending before
those exercising judicial functions” for the purpose
of reviewing the question of damages. When the pro-
ceeding has reached the stage of a perfected appeal
and the jurisdiction of the state district court is in-
voked, it then becomes in its nature a civil action and
subject to removal by the defendant to the United
States District Court.

Id. at 578-79 (citation omitted). In the the Court
determined that removal was improper tame because
the case had been removed by the railroad, which, as the
plaintiff in state court, was not entitled to remove the
case. See id. at 579-80. See also County of Allegheny v.
Frank Mashuda Co., 360 U.S. 185, 195 (1959) (“fa}l-
though holding {in Stude] that the [railroad] could not
remove a state condemnation case to the Federal District
Court on diversity grounds because {it] was the plaintiff
in the state proceeding, the Court clearly recognized that
Se enn at ip cock 2 peocesding could remove in ac-
cordance with § 1441 and obtain a judicati

of the issues involved”). nee

The railroad had also filed a second action, this one in
federal district court. See 346 U.S. at 576. In the portion
of the Stude opinion upon which the court of appeals relied

32

here, this Court ordered that action dismissed because it
challenged only one portion of the proceedings—the
amount of the condemnation damages award—while the
judgment underlying that award relating to the landown-
er’s substantive right to damages and the railroad’s emi-
nent domain powers was contested elsewhere. See id. at
582. Thus, the railroad was attempting to “separate the
question of damages and try it apart from the substantive
right from which the claim for damages arose.” Ibid. It
was in that context that the Court wrote that a district
court “does not sit to review on appeal action taken ad-
ministratively or judicially in a state proceeding.” Jd. at
581. That, then, is the type of “appellate” proceeding to
which the Court objected—one in which the plaintiff
seeks to review only a particular finding of an agency
even though the rest of the “case,” in the constitutional
sense, is pending elsewhere.” Indeed, the Court sug-
gested that if the suit had been properly brought as an
action seeking condemnation of property, then the Court
would have had jurisdiction over the matter. See id. at
582.

In the secwed case, Horton v. Liberty Mutual Insurance
Co., 367 U.S. 348 (1961), the dicta in Stude, acknowl-
edging that an action contesting the decision of an admin-
istrative agency was removable, was turned into a hold-

1° That conclusion is consistent with the Court’s holding in
Barrow v. Hunton that a proceeding related to another suit in such
a way that it is merely a “supplementary proceeding so connected
with the original suit as to form an incident to it, and substan-
tially a continuation of it” will not be considered a “suit” for
purposes of original federal jurisdiction or removal. 99 U.S. at
82-88. In Barrow, the Court concluded that a proceeding to obtain
the nullity of a judgment, which had to be brought in the same
court that rendered the judgment, was too much a supplemental
proceeding and therefore was not a suit. See id. at 85. See also
First National Bank v. Turnbull, 88 U.S. (16 Wall.) 190 (1873)
(action to recover property in judgment-debtor’s possession consid-
ered an “auxiliary to the original action”). This consideration is
not at issue here.

33

Ing. Horton was a diversity action filed in federal court
by Liberty, an insurance company, challenging under state
law a workers’ compensation award made to Horton by
the Texas Industrial Accident Board. See id. at 349-50.
The Court concluded that the action was a civil action,
capable of beirz heard in the first instance in district
court “as any other suit” because when it was filed, the
case was withdrawn from Board. See id. at 354.
Thus, under Horton an action to review

a state administrative agency constitutes a “civil action”
within the court's “original jurisdiction” under the diver-
sity jurisdiction statute. See id. at 355.

Horton and the dicta in Stude are joined by numerous
other cases in which this Court has recognized that there
is federal jurisdiction over actions to review the decision
of a state agency on state-law grounds. See, e.g., Com-
missioners of Road Improvement District No. 2 v. St. L.
Sw. Ry. Co., 257 U.S. 547, 560-62 (1922) (appeal
of assessors’ proceeding to state county court to set dam-
ages arising from road improvement was properly re-
moved to federal court on diversity grounds); Siler, 213
US. at 193-98 (action to enjoin rate order properly heard
under pendent jurisdiction); Union Pacific Ry. Co. vy.
Meyers, 115 U.S. 1, 18-23 (1885) (appeal of valuation
of property tried before mayor was properly removed to
federal court under federal-question jurisdiction); Missis-
sippi and Rum River Boom Co. v. Patterson, 98 US.
403, 406-07 (1879) (diversity action to value condemned
property properly removed to federal court). There is
thus plainly no rule forbidding federal courts from review-
ing administrative decisions of state or local officials.

The historical understanding of the authority
federal courts to review sialon pa By A
makes clear that administrative review cases are “civil
actions” within “original jurisdiction” regardless of the
scope of review exercised. The Judiciary Act of 1789
gave federal courts jurisdiction, as a matter of “original
cognizance” and as a matter of removal, over a “suit of

¢
a
z
z
2,

34

a civil nature at common law or in equity” where those
suits met requirements such as diversity between the par-
ties. See Act of Sept. 24, 1789, §§ 11, 12, 1 Stat. 73,
78-80. It is thus appropriate to begin the historical in-
quiry with the most basic denominator: the term “suit.”
Early on, this Court found that the term “suit” has a
“comprehensive” definition such that it “appl[ies] to any
proceeding in a court of justice, by which an individual

of the court is sought, is a suit.” Weston v. City Council,
27 US. (2 Pet.) 449, 464 (1829).

Since administrative agencies were not easily classified
as “courts,” the inquiry for purposes of removal jurisdic-
tion turned on the nature of the proceeding and the func-
tion of the administrative body. When the proceeding
and the function of the administrative body were wholly
administrative in nature, the proceeding was not consid-
ered a suit. See, e.g., County of Upshur v. Rich, 135 U.S.
467 (1890) (county court not permitted duties of a judi-
cial nature and thus assessment not a suit removable to
federal court). But where the proceeding was brought
before a body that exercised judicial functions, by appeal
or otherwise, it became a suit over which the courts had
cognizance. In Upshur, the Court explained the distinc-
tion:

[A] proceeding, not in a court of justice, but carried
on by executive officers in the exercise of their proper
functions, as in the valuation of property for the just
distribution of taxes or assessments, is purely admin-
istrative in its character and cannot, in any just sense,
be called a suit; [and] an appeal, in such a case, to
a board of assessors or commissioners having no judi-
cial powers and only authorized to determine ques-
tions of quantity, proportion, and value, is not a suit,
[but] such an appeal may become a suit if made to a
court or tribunal having power to determine questions

35

of law and fact, either with or without a jury, and
there are parties litigant to contest the case on the
one side and the other.

135 U.S. at 477.” Mississippi and Rum River Boom Co.
reflects the same distinction. That case grew out of a
“proceeding [before] commissioners appointed to appraise
[certain] land,” which the Court acknowledged “was in
the nature of an inquest to ascertain its value, and not a
suit at law in the ordinary sense of those terms.” 98 U.S.
at 406. The Court then observed: “But when it was
transferred to the [state] District Court by appeal from
the award of the Commissioners, it took, under the statute
of the State, the form of a suit at law and was thenceforth
subject to its ordinary rules and incidents. .. .” Id. at
406-07. At that point, the suit could be removed to
federal court. See ibid.

As for the “civil” component of the phrase “suit of a
civil nature,” in both the Judiciary Act of 1789 (Act of
Sept. 24, 1789, §§ 11-12, 1 Stat. 73, 78-80) and the later
federal-question statute (Act of March 3, 1875, § 1, 18
Stat. 470), that term designates simply a suit “in con-
tradistinction to one involving ‘crimes and offenses.’ ”
Milwaukee County v. M.E. White Co., 296 U.S. 268, 270
(1935). As the Court explained in Milwaukee County,

2° The Court added:

At the same time we do not lose sight of the fact, presented
by every day’s experience, that the legality and constitutionality
of taxes and assessments may be subjected to judicial examina-
tion in various ways, —by an action against the collecting
officer, by a bill for injunction, by certiorari and by other modes
of proceeding. Then, indeed, a suit arises which may come
within the cognizance of the federal courts, either by removal
thereto, or by writ of error from this court, according to the
nature and circumstances of the case. Even an appeal from an
assessment, if referred to a court and jury, or merely a court,
to be proceeded in according to judicial methods, may become
a suit within the Act of Congress.

135 U.S. at 473.

“suits of a civil nature . . . are those which do not involve
criminal prosecution or punishment, and which are of a

law or equity.” Id. at 271. It was on this same under-
standing that the Court in Ames v. Kansas, 111 U.S. 449
(1884), concluded that a quo warranto action could be
removed, for it was civil rather than criminal in e.
Id. at 460-61. See also id. at 460 (stating that, under

public offense, for the punishment thereof. Every other
action is a civil action.” (citations omitted) (emphasis in
original) ).

The phrase “suit of a civil nature in law and equity”
remained in the statutory provisions conferring federal-
question jurisdiction and removal jurisdiction until the
recodification of the Judicial Code in 1948. Sections 1331
and 1441 were then amended with the substitution of
the now-familiar term “civil action.” 1948 Judicial Code
and Judiciary Act, 62 Stat. 930; 62 Stat. 937-38; see
Finley v. United States, 490 U.S. 545, 554 (1989). The
change made them consistent with Rule 2 of the Federal
Rules of Civil Procedure, which provides that “(there
shall be one form of action to be known as civil action.”
See H.R. Rep. No. 308, at App. 1701, 1833, 1854 (1947)
(Reviser’s notes) (explaining that the term “civil action”
was substituted in both Sections 1331 and 1441 to be in
harmony with Fed. R. Civ. P. 2). And Rule 2 in turn
makes clear that the phrase “civil action” has the broadest

squarely present a “civil action” within the meaning of
Sections 1331 and 1441. The decisionmaking responsi-
bilities to be exercised by the state court in which the

Landmarks Commission. The proceeding was civil rather
than criminal. In fact, the particular statutory procedure
at issue here—the statutory equivalent of a common-law

All told, ICS’s complaints were civil actions within
original jurisdiction and could therefore be removed. In-
deed, the court of appeals doubted this conclusion for
only one reason: some—although not all—of the state-
law claims pleaded in ICS’s complaints require the re-
viewing court to give deference to the Landmarks Com-
mission’s decisions. See Pet. App. lla, 19a.“ While the

*! Under Illinois law, the “substantial differences that at one ti
existed [between certiorari and statutory administrative vache
have been all but obliterated.” Smith v. Department of Public Aid
67 Ill. 2d 529, 541, 367 N.E.2d 1286, 1298 (1977).

** Under Illinois law, the court determines whether the agency’s
determination was “arbitrary, unreasonable or capricious.” Mon-
santo Co. v. Pollution Control Board, 67 Ill. 2d 276, 289, 867 N.E.2d
684, 689 (1977). See also Hanrahan v. Williams, 174 Ill. 2d 268,
272-73, 673 N.E.2d 251, 2563-54 (1996). Findings of fact are re-

38

court of appeals was correct about the standard of review
for some of the claims, it erred in finding that the scope
of review is determinative of removal jurisdiction.

This Court, in prior decisions considering whether
federal jurisdiction existed, has not worried about whether
review of a state administrative proceeding under state
law was de novo or deferential. For example, in Com-
misioners of Road Improvement District No. 2, the Court
noted that the assessment suit was “to declare and enforce
a liability of lands and their owners as it stands on pres-
ent and past facts under a law and rules already made
by the legislature and administrative officers.” 257 U.S.
at 554. Thus the Court allowed removal of an action
challenging the decision of a county assessment board
without inquiry into whether deference to the board’s
judgment was required. And the Court’s opinion in Stude
does not even mention the standard of review of the
valuation proceeding. The courts of appeals also have
not, until recently, been concerned about this issue. In
the leading case, Range Oil Supply Co. v. Chicago, R.l.
& P.R. Co., 248 F.2d 477 (8th Cir. 1957), the court
held that Range Oil’s state action seeking to set aside a
state railroad commission’s order as unlawful and unrea-
sonable was removable as a “civil action” within the dis-

N.E.2d at 689. Questions of law are reviewed de novo. See Branson
v. Department of Revenue, 168 Ill. 2d 247, 254, 659 N.E.2d 961, 965
(1996) ; Envirite Corp. v. Ilinois Environmental Protection Agency,
158 Ill. 2d 210, 214, 632 N.E.2d 1085, 1087 (1994). And on con-
stitutional claims, no deference need be given even on the facts
since additional evidence can be proffered to the reviewing court.
See Stratton, 188 Ill. 2d at 428-30, 551 N.E.2d at 646.

28 Stude was a de novo proceding, since lowa law provided that
the action was one that would be “ ‘tried as in an action by ordinary
proceedings.”” 346 U.S. at 576 (quoting Iowa Code § 472.21).
For this reason as well, the language in the opinion concern-
ing “appellate review” of a state agency’s findings has nothing
to do with a deferential scope of review. In any event, if Stude
could be read to bar even de novo review of administrative decisions,
it would have been overruled by Horton.

39

trict court’s “original jurisdiction.” See id. at 478-79.
See also Linwood v. Board of Education, 463 F.2d 763,
770 (7th Cir.), cert. denied, 409 U.S. 1027 (1972).
Indeed the commentators have taken the holding of Range
Oil Supply as settled law. See 1A James W. Moore,
Moore’s FEDERAL PRACTICE § 0.157 {4.-3] at 73-74 (2d
ed. 1996); 14A Charles A. Wright, Arthur R. Miller &
Edward H. Cooper, FEDERAL PRACTICE AND PROCEDURE
§ 3721 at 206-07 (1985) .™

County Redevelopment & Housing Authority v.
64 F.3d 155 (4th Cir. 1995) ; Armistead v.
49 F.3d 43 (1st Cir. 1995).

Qe
—
&

Fo

40

a state or local agency is to be reviewed under state law.
A case seeking on-the-record administrative review, thus,
does not seek the type of judicial review that federal
courts are not competent to provide.

C. Even The Presence Of State-Law Claims Not Within
‘riginal Or Supplemental Jurisdiction Does Not
Defeat Removal.

Even if federal courts are forbidden to provide on-the-
record review of agency decisions under state law, that
does not explain why the court of appeals could properly
order the entire case—including ICS’s constitutional
claims seeking de novo review—remanded to state court.
No decision of this Court—and nothing in any statute—
suggests that joining claims that are not within original
federal jurisdiction to claims that are defeats removal. To
the contrary, as we explain above, both the removal and
supplemental jurisdiction statutes permit federal jurisdic-
tion to be exercised when state and federal claims are
joined, and authorize, at most, remand to state court of
only those claims on which state law predominates.

To reach the result that it did, the court of appeals
relied on its prior opinion in Frances J. v. Wright, 19
F.3d 337 (7th Cir.), cert. denied, 115 S. Ct. 204 (1994),
in which the court had held that a case containing claims
barred by the Eleventh Amendment is non-removable be-
cause the removal statute “‘only authorizes the removal
of actions that are within the original jurisdiction of the
federal courts.’” Pet. App. 21a (emphasis in original)
(quoting Frances J., 19 F.3d at 340). But the applicable
jurisdictional framework here is much different from that
in cases in which the removed case contains claims barred
by the Eleventh Amendment. The Eleventh Amendment
is an affirmative jurisdictional bar to the exercise of fed-
eral jurisdiction over claims against States, and it thus
limits the exercise of pendent (and now supplemental ju-
risdiction) no less than any other type of federal jurisdic-
tion. See Pennhurst State School & Hospital v. Halder-
man, 465 U.S. 89, 117-21 (1984). Here, there is no

41

not apply here; this case involves only a decision of a
local government agency. See, e.g., Mount Healthy City
School District v. Doyle, 429 U.S. 274, 280 (1977). Far
from erecting any jurisdictional bar, Congress, in Section
13é7(a), has affirmatively authorized the exercise of fed-
eral jurisdiction over nonfederal claims that arise from
the same nucleus of fact. Indeed, in Section 1441(c),

Moreover, the judgment below—requiring remand of
the entire case rather than only ICS's on-the-record admin-

istrative review claims—misconstrues the jurisdictional
Statutes applicable to this case. The court of appeals held
that removal is proper only if the action as a whole falls
within federal jurisdiction, and that this requirement ap-
plies to both Sections 1441(a) and 1441(c). See Pet.
App. 21la-23a. But as we explain in Part I.A above, the
phrase “civil action” within “original jurisdiction” under
both the federal-question and removal statutes has long
been construed to require only that some claims in the
action fall within original federal jurisdiction, not that all
claims do. The doctrines of pendent and supplemental
jurisdiction are based on just this point.

667-71. Similarly, in Alabama v. Pugh, 438 U.S. 781
(1978) (per curiam), the Court held that claims

the State and its board of corrections were barred by the
Eleventh Amendment and should have been

42

it did not disturb the balance of the judgment awarding
prospective relief against state officials. See id. at 782.”
These decisions preclude the court of appeals’ view that
if some claims in a complaint are jurisdictionally barred,
federal jurisdiction over the entire action is defeated.”

D. There Is No Policy Reason To Overcome The Plain
Statutory Language And Its History.

Because there is nothing in the jurisdictional statutes
to justify an exception from federal jurisdiction for state-
law administrative review claims that are reviewed on
the record—much less any basis for remanding an entire
case in which such a claim is presented—such an excep-
tion can only be based on some nonstatutory policy
sufficiently powerful to defeat the plain language of the
statutes.

To date, this Court has recognized only two blanket

domestic relations and probate—exist because the Court
has hewed to venerable precedents rendering those types

25 For just these reasons, the rule announced in Frances J. has
not received universal support. While one circuit has reached the
same result, see McKay v. Boyd Construction Co., 769 F.2d 1084,
1086-87 (5th Cir. 1985), two other circuits have rejected that ap-
proach, see Kruse v. Hawai'i, 68 F.3d 331, 334-35 (9th Cir. 1995) ;
Henry v. Metropolitan Sewer District, 922 F.2d 332, 336-39 (6th
Cir. 1990).

2 Even apart from this error of statutory construction, it is
doubtful that Frances J. was correctly decided. In that case as in
all others in which this question will arise, the State itself removed
the case to federal court. Despite the Eleventh Amendment, “the
Court consistently has held that a State may consent to suit against
it in federal court.” Pennhurst, 465 U.S. at 99. In particular, when
a State chooses to prosecute a claim in federal court, it waives
Eleventh Amendment immunity. See Clark v. Barnard, 108 U.S.
486, 447-48 (1888). It is quite unclear why a State’s decision to
remove a case against it to federal court should not fall within this
rule.

43

of cases outside federal jurisdiction. See Ankenbrandt v.
Richards, 504 U.S. 689, 693-94 (1992); Markham vy.
Allen, 326 U.S. 490, 494 (1946). In Ankenbrandt, the
Court explained that the domestic relations exception was
grounded in Barber v. Barber, 62 U.S. (21 How.) 582
(1859), the Court’s “longstanding and well-known con-
struction” of the diversity jurisdiction statute as excluding
cases involving the issuance of decrees of divorce, alimony,
and child custody, and Congress’s acquiescence in that
construction. See 504 U.S. at 700-01, 703. As for the
probate exception, it comes from an equally old line of
cases in which the Court concluded that it had no juris-
diction over cases alleging claims of a purely probate
nature, such as probating a will or administering an es-
tate. See Markham, 326 U.S. at 494. Both exceptions
are construed narrowly. The domestic relations exception
bars actions seeking issuance of divorce, alimony, or
custody decrees, but permits suits involving related mat-
ters (see Akenbrandt, 504 U.S. at 701-04); the probate
exception bars only actions involving the administration
of an estate, but permits claims to be made “in favor of
creditors, legatees and heirs” against an estate as long as
there is no interference with probate proceedings (see
Markham, 326 U.S. at 493-95).”

There surely is no similar rule that prohibits the exten-
sion of federal jurisdiction to cases challenging the deci-
sions of state administrative agencies. In New Orleans
Public Service, Inc. v. Council of City of New Orleans,

27 And oven these exceptions are applied not to federal question
jurisdiction, but to diversity jurisdiction. In cases where these
exceptions ordinarily might foreclose jurisdiction over state-law
claims, the lower federal courts have still heard constitutional claims
under federal-question jurisdiction. See, ¢.g., Agg v. Flanagan, 855
F.2d 336, 339 (6th Cir. 1988) (court had jurisdiction to hear civil
rights claims challenging State’s method of determining and enforc-
ing child custody payments) ; Franks v. Smith, 717 F.2d 188, 185-
86 (5th Cir. 1988) (court could decide Fourth Amendment claim
arising in child custody context).

44

491 U.S. 350 (1989) (“NOPSI”’), the Court took pains
to point out that federal jurisdiction existed over an action
challenging a ratemaking decision of the council, since
the pertinent jurisdictional statutes contained no excep-
tion to federal jurisdiction for such cases. See id. at 358-
59, 372-73. Indeed, we explain in Part II.B above that
this Court has repeatedly upheld the exercise of federal
jurisdiction in cases in which the decisions of state agen-
cies were challenged on state-law grounds.

The only conceivable basis for a nonstatutory exception
to federal jurisdiction over a case seeking review on-the-
record of a decision of a state or local agency is some
federalism-based policy that endeavors to avoid entangling
the federal courts in sensitive issues of state law. But this
Court has never recognized such an exception to federal
jurisdiction. In fact, in Schmidt v. Oakland Unified School
District, 457 U.S. 594 (1982) (per curiam), the Court
held that it was an “abuse of discretion” to refuse to
exercise pendent jurisdiction over a state-law challenge
to a contract-bidding program based on the court's per-
ception that the statelaw question was “sensitive.” Jd. at
594-95.

To be sure, there are circumstances where the federal
courts should abstain from exercising jurisdiction over a
state-law issue presented to them. But the Court’s absten-
tion jurisprudence in fact demonstrates the impropriety
of the administrative law exception to federal jurisdiction
recognized by the court of appeals here. In its cases con-
sidering when federal courts should refrain from hearing
cases involving state-law questions, the Court has never
recognized an exception to federal jurisdiction, But in-
stead permitted abstention from the exercise of jurisdic-
tion under certain demanding tests.

Burford v. Sun Oil Co., 319 US. 315 (1943), for
example, involved a challenge to an award by the Texas
Railroad Commission of a permit to drill oil wells. See
id. at 317. The Court assumed that it had federal juris-

agency decision). See id. at 317-18. The question
framed by the Court was not whether federal jurisdiction
existed, but whether, assuming federal jurisdiction did
where
designed

f
tablish a coherent policy with respect to a matter of sub-
stantial public concern.’” Quackenbush v. Allstate In- |

The other type of abstention applicable when a federal
court is asked to decide a question of state law makes

should a state tribunal construe it in the iff's favor.
See id. at 499-502. Pullman abstention yy

-—_ =~

46

proper only when the state or local enactment is fairly
susceptible to a limiting construction that would elimi-
nate the federal constitutional claim. See, e.g., City of
Houston v. Hill, 482 U.S. 451, 468 (1987); Hawaii
Housing Authority v. Midkiff, 467 U.S. 229, 236-37 &
n.4 (1984). But even when Pullman abstention is ap-
propriate, the federal court may still exercise its juris-
diction since a plaintiff who withholds his federal claims
during state-court procedings is entitled to return with
them to federal court should he need to do so. See Eng-
land v. Louisiana State Board of Medical Examiners, 375

U.S. 411, 417-18 (1964).

Thus, even when quite sensitive issues of state law are
present, the Burford and Pullman abstention cases make
clear that there is no exception to the existence of fed-
eral jurisdiction, but only a rule against its exercise in
carefully circumscribed circumstances. And the sensitive
elements justifying either type of abstention simply will
not be present in many—if not most—state administra-
tive review claims that are reviewed on the record. As
we explain above, because Illinois law provides for de
novo review of questions of law— including constitutional
issues—deferential review is limited to questions of fact.
See, e.g., Branson v. Department of Revenue, 168 Ill.
2d 247, 254, 659 N.E.2d 961, 965 (1995); Stratton,
133 Ill. 2d at 429-300, 551 N.E.2d at 646-47. Such
factual issues will rarely present circumstances that would
lead a court to conclude that the issue was too sensitive
for decision by a federal court.

28 In a related abstention doctrine, the Court has announced that
abstention may be appropriate in eminent domain proceedings that
involve sensitive city-state relationships or an uninterpreted state
statute of questionable constitutionality. See Louisiana Power &
Light Co. v. City of Thibodaux, 360 U.S. 25, 28 (1959). But this
doctrine, like Pullman abstention, merely provides for staying the
exercise of federal jurisdiction until uncertain state-law issues are
resolved in state court; there is no abdication of jurisdiction. See

Quackenbush, 116 S. Ct. at 1722-23.

47

In short, nothing inherent in the removal of state ad-
ministrative review claims to federal court provides any
basis for creating a new exclusion from federal jurisdic-
tion for all such claims that are reviewed deferentially.
pine abstenti ay . - F

s ion, but surely do not justi
holding below. a : m~

Indeed, viewed through the lens of federalism, the ex-
ception to federal jurisdiction recognized by the court
of appeals is especially unjustified. Excluding state and
local government defendants from federal court whenever
the plaintiff asserts a state-law claim that is reviewed on
the record would be anomalous, at best. A federal plain-
tiff willing to forgo its deferential claims would still be
welcome in federal court. This option—not available to
defendants—means a plaintiff such as ICS wishing a
federal forum to litigate the federal questions that arise
from an administrative review decision could obtain it
by filing a civil rights action within federal-question ju-
risdiction containing only de novo attacks on an agency's
decision. It is surely a strange brand of federalism that
would limit only the ability of state and local agencies
to obtain a federal forum when that is where they choose
to defend their administrative actions, while providing
those who wish to undermine those decisions with greater
ability to select a federal forum. And it is even a stranger
brand of federalism that permits federal courts to review
the decisions of state and local agencies de novo—as in
Horton—but prohibits federal courts from giving those
decisions the deference that principles of federalism
would seem to support.

The decision below also gives rise to anomalous re-
sults for plaintiffs who wish a federal forum. Because
the court of appeals has concluded that a district court
may not hear on-the-record review claims, plaintiffs can
preserve their right to a federal forum only by initiating
parallel federal and state litigation, in which only their

48

de novo claims can be adjudicated in the federal pro-
ceeding. Surely this Court should not encourage such
wasteful duplication. Moreover, in diversity cases, when
the agency seeks on-the-record review in state court, non-
resident defendants will lose the right to remove and will
be left to the mercy of the state court system in situations
where Congress has granted them a right to remove as
protection against local prejudices. See 28 U.S.C. § 1441

although there is no policy reason to refuse federal ju-
risdiction over federal claims merely because they are
joined with state-law claims. No decision of this Court
suggests that the right to removal can be defeated merely
because applicable state law does not provide for de novo
review. Nor has any decision of this Court or any statute
ever suggested that the district courts are not competent
to provide on-the-record and deferential review of agency
decisions—indeed Califano v. Sanders is squarely incon-
sistent with any such suggestion.

“Congress [has] [nJever intended to extend carte
blanche authority to the district courts to revise the fed-
eral statutes governing removal by remanding cases on
grounds that seem justifiable to them but which are not
recognized by the controlling statute.” Thermtron Prod-
ucts, Inc. v. Hermansdorfer, 423 U.S. 336, 351 (1976).
That is because “Congress, and not the judiciary, defines

29 In fact, the two decisions on which the court of appeals pri-
marily relied here were diversity cases in which the right of an
out-of-state defendant to remove was defeated by this administra-
tive review exception. See Pet. App. 11la-13a.

49

the scope of federal jurisdiction within the constitution-
ally permissible bounds.” NOPSI, 491 U.S. at 359. As
this Court has explained:

CONCLUSION

Respectfully submitted,

June 12, 1997 * Counsel of Record

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385014_0043%3A06. Public record. Not legal advice.
