JONES, District Judge.
The Constitutional Guided Walking Tours, LLC and its owners, Jonathan H. Bari and Leslie S. Bari (hereinafter collectively referred to as "Plaintiffs"), were engaged in the operation of a commercial walking tour of Independence National Historical Park (INHP) and the surrounding area between the years of 2005 and 2010.
Plaintiffs allege that Federal Defendants have acted arbitrarily and capriciously, thereby subjecting them to restrictions and limitations not placed on their competitors. Plaintiffs also allege that the NPS unlawfully delegated management activities to the IVCC, that all Defendants deliberately misled Plaintiff and third parties regarding the relationship between the NPS and the IVCC, and that all Defendants refused to redress grievances raised by Plaintiffs.
Federal Defendants have filed a Motion to Dismiss Counts I, II and VIII on the grounds that: 1) the court lacks personal jurisdiction because none of the Federal Defendants has been properly served; 2) the court lacks subject matter jurisdiction over the NPS because Plaintiffs have failed to state a cause of action under the Administrative Procedures Act (5 U.S.C. § 701 et seq.); and 3) the individual Federal Defendants are entitled to qualified immunity from a Bivens action.
For the reasons set forth herein, Federal Defendants' Motion will be granted in part and denied in part.
Federal Defendants base the instant Motion on several pleading deficiencies in Plaintiffs' Amended Complaint, including a general failure to provide "a short and plain statement of the claim showing that the pleader is entitled to relief," pursuant to Rule 8(a) of the Federal Rules of Civil Procedure. To that end, said Defendants seek dismissal of Plaintiffs' claims under Subsection (b)(6) of Rule 12 for failure to state a claim upon which relief can be
Before this Court may address the merits of any substantive claims raised by the parties, it must determine whether or not it possesses jurisdiction in the first instance.
"In deciding a motion to dismiss for lack of [personal] jurisdiction, a court is required to accept the plaintiff's allegations as true, and is to construe disputed facts in favor of the plaintiff." Eurofins Pharma U.S. Holdings v. BioAlliance Pharma SA, 623 F.3d 147, 155 (3d Cir.2010) (internal citation omitted). Federal Defendants first move to dismiss Plaintiffs' Amended Complaint on the basis that none of them has been properly served. Subsection (i) of Rule 4 of the Federal Rules of Civil Procedure governs service of process in this matter and provides in pertinent part:
Fed.R.Civ.P. 4(i).
"`Rule 4 is a flexible rule that should be liberally construed so long as a
Additionally,
Grand Entertainment Group v. Star Media Sales, 988 F.2d 476, 492 (3d Cir.1993).
Federal Defendants concede that copies of the summons and Amended Complaint have been delivered to the United States Attorney's Office. (Mot. to Dismiss, 8.) Furthermore, the exhibits attached to their Motion indicate service on the United States Attorney General via certified mail (Mot. to Dismiss, Ex. I), on Defendant Reidenbach via personal service to an agent (Mot. to Dismiss, Ex. F), on Defendant MacLeod via personal service to an agent (Mot. to Dismiss, Ex. D), and on Defendant Sidles via personal service (Mot. to Dismiss, Ex. C).
Based upon the foregoing legal precepts and this Court's review of the documentation cited herein, Federal Defendants' request for relief pursuant to Subsections (2) and (5) of Rule 12 must be denied.
Federal Defendants next assert that pursuant to Federal Rule of Civil Procedure 12(b)(1), subject matter jurisdiction in this case is lacking ...
Stewart v. XRimz, LLC, 2011 WL 1002207, at *3, 2011 U.S. Dist. LEXIS 27988, at *7 (M.D.Pa. Mar. 18, 2011).
Moreover,
I.K. v. Sch. Dist. of Haverford Twp., 2011 WL 1042311, at *4, 2011 U.S. Dist. LEXIS 28866, at **10-11 (E.D.Pa. Mar. 21, 2011).
Therefore,
Church of the Universal Bhd. v. Farmington Twp. Supervisors, 296 Fed.Appx. 285, 288 (3d Cir.2008) (citations omitted).
Inasmuch as Federal Defendants are claiming that "this Court lacks jurisdiction to hear the APA claim
Plaintiffs assert federal question subject matter jurisdiction under 28 U.S.C. § 1331,
The APA provides in part:
5 U.S.C. § 701(a) (emphasis added).
In commencing its analysis of Plaintiffs' claims brought pursuant to the APA, this Court must be mindful that:
River Runners for Wilderness v. Martin, 593 F.3d 1064, 1070 (9th Cir.2010) (citations omitted).
When assessing a claim made pursuant to the APA, "Agency inaction is actionable under the APA where the `plaintiff asserts that an agency failed to take a discrete agency action that it was required to take.'" Sydnor v. OPM, 336 Fed.Appx. 175, 181 (3d Cir.2009) (quoting Norton v. S. Wilderness Alliance, 542 U.S. 55, 64, 124 S.Ct. 2373, 159 L.Ed.2d 137 (2004)). In that same vein,
Pinho v. Gonzales, 432 F.3d 193, 203 (3d Cir.2005) (emphasis added).
Therefore, "[t]o support APA jurisdiction, the agency action must be final, it must adversely affect the party seeking review,
Moreover,
Paye v. Napolitano, 2010 WL 5111380, at *3, 2010 U.S. Dist. LEXIS 130432, at *11 (M.D.Pa. Dec. 9, 2010) (emphasis added). Accordingly, "[i]f the wrongful actions were discretionary, the Court has no jurisdiction over the claims under the APA." Id. at *4, 2010 U.S. Dist. LEXIS 130432, at **12-13. See also Asemani v. IRS, 163 Fed.Appx. 102, 104 (3d Cir.Pa.2006) (District Court did not possess jurisdiction
Federal Defendants herein claim the conduct in question is committed to agency discretion by law and the court therefore lacks subject matter jurisdiction. This Court agrees.
In addressing this issue, the parties' briefs cover a number of sources of law. First, both sides first look to the "Gateway Visitor Center Authorization Act of 1999" ("Authorization Act"), which establishes the authority of the NPS to manage the INHP through cooperation with the IVCC. See 106 P.L. 131.
The Authorization Act provides in relevant part:
Id. (emphasis added).
Therefore, by its explicit terms, the Secretary of the Interior may enter into an agreement; however, no agreement is compelled. As such, the Authorization Act clearly leaves the NPS with the absolute discretion to enter into agreements with the Gateway Visitor Center Corporation (now known as IVCC). In this case, Federal Defendants never entered into a formal agreement but instead, utilized Special Use Permits ("SUPs"). Assuming arguendo that these SUPs constituted an "agreement" for purposes of the Authorization Act, they would be in compliance with same, as the SUPs specifically reference the Authorization Act and cite to 106 P.L. 131 for purposes of establishing the authority of the Secretary and delineating the terms by which IVCC would be permitted to operate their facility.
Plaintiffs specifically acknowledge that "no such agreement [under the Authorization Act] has ever existed" between NPS and IVCC. (Resp. Mot. Dismiss, 2.) Accordingly,
With further regard to NPS management provisions, the parties also look to various sections contained within Chapter 79 of Title 16 (National Park Service Organic Act),
With regard to the remaining portion of Federal Defendants' motion brought pursuant to Fed.R.Civ.P. 12(b)(6), courts must "accept all factual allegations as true, construe the complaint in the light most favorable to the plaintiff, and determine whether, under any reasonable reading of the complaint, the plaintiff may be entitled to relief." Phillips v. County of Allegheny, 515 F.3d 224, 233 (3d Cir.2008) (internal quotation and citation omitted). As a result of the Supreme Court's decision in Bell Atlantic Corporation v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), "[t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice." Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 129 S.Ct. at 1949 (citing Twombly, 550 U.S. at 556, 127 S.Ct. 1955). This standard, which applies to all civil cases, "asks for more than a sheer possibility that a defendant has acted unlawfully." Iqbal, 129 S.Ct. at 1949.
Specifically,
Perano v. Twp. of Tilden, 2010 WL 1462367, at *5, 2010 U.S. Dist. LEXIS 36781, at **15-17 (E.D.Pa. Apr. 12, 2010). Moreover, "[i]n considering a motion to dismiss, the issue is not whether the plaintiffs ultimately will prevail but whether they are entitled to offer evidence to support their claims." Egnotovich v. Greenfield Twp. Sewer Auth., 304 Fed.Appx. 94, 97 (3d Cir.2008).
"In deciding motions to dismiss pursuant to Fed.R.Civ.P. 12(b)(6), courts generally consider only allegations in the complaint, exhibits attached to the complaint, matters of public record, and documents that form the basis of the complaint." Brown v. Daniels, 128 Fed.Appx. 910, 913 (3d Cir.2005) (quoting Lum v. Bank of America, 361 F.3d 217, 222 n. 3 (3d Cir. 2004)).
To that end, Rule 12(d) of the Federal Rules of Civil Procedure provides:
Fed.R.Civ.P. 12(d).
A document forms the basis of a claim if it is integral to or is explicitly relied upon in the Complaint. See In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1426 (3d Cir.1997). The rationale in converting a motion to dismiss to one of summary judgment is to afford the plaintiff an opportunity to respond to the extraneous evidence submitted by the defendant and considered by the court. See Pension Ben. Guar. Corp. v. White Consol. Indus. Inc., 998 F.2d 1192, 1196 (3d Cir. 1993), cert. denied, 510 U.S. 1042, 114 S.Ct. 687, 126 L.Ed.2d 655 (1994). The primary problem of lack of notice to the plaintiff when the defendant attaches documents to their motion to dismiss dissipates when the plaintiff has actual notice of the attachments and the plaintiff has relied on the documents in forming the Complaint. See Burlington Coat Factory, 114 F.3d at 1426 (internal citations omitted).
In this case, Federal Defendants rely upon documents which are integral to the claims set forth in the Complaint. Additionally, Plaintiffs have had notice of said documents and address same in their Response to said Defendants' Motion to Dismiss. In fact, Plaintiffs maintain that "[c]onversion of Defendants' Motion is unwarranted *.*.*.*" and in doing so, correctly point out that any and all additional documents referenced for purposes of the instant Motion, are those of which this Court may take judicial notice. (Resp. Mot. Dismiss, 8 n. 13.) Accordingly, this Court will not convert the instant motion into one for summary judgment.
As fully discussed hereinabove, this Court has determined that it lacks subject matter jurisdiction over Plaintiffs' claims against the NPS. However, to the extent Plaintiffs allege violations of procedural and substantive due process rights pursuant to Bivens v. Six Unknown Fed. Narcotics Agents, 403 U.S. 388, 91 S.Ct. 1999, 29 L.Ed.2d 619 (1971), individual Federal Defendants seek dismissal of Count II of Plaintiffs' Amended Complaint on the basis of qualified immunity from actions performed in their official capacity.
Qualified immunity is "an entitlement not to stand trial or face the other burdens of litigation." Miller v. Clinton County, 544 F.3d 542, 547 (3d Cir.2008) (quoting Saucier v. Katz, 533 U.S. 194, 200, 121 S.Ct. 2151, 150 L.Ed.2d 272 (2001)). The privilege is "[A]n immunity from suit rather than a mere defense to liability; and like an absolute immunity, it is effectively lost if a case is erroneously permitted to go to trial." Mitchell v. Forsyth, 472 U.S. 511, 526, 105 S.Ct. 2806, 86 L.Ed.2d 411 (U.S.1985). Therefore, the question of whether qualified immunity applies must be resolved at the earliest possible stage in litigation to avoid "`[subjecting] government officials either to the costs of trial or to the burdens of broad-reaching discovery' in cases where the legal norms the officials are alleged to have violated were not clearly established at the time." Id. (citation omitted). The protection of qualified immunity applies regardless of whether the government official's error is "a mistake of law, a mistake of fact, or a mistake based on mixed questions of law and fact." Groh v. Ramirez,
In addressing this issue, "[t]wo inquiries govern whether an official is entitled to qualified immunity: (1) whether the facts alleged establish a violation of a constitutional right, and (2) whether the constitutional right at issue was clearly established." Hopkins v. Vaughn, 363 Fed. Appx. 931, 935 (3d Cir.2010). The two prongs should often be addressed in order, although the court has discretion to address them in the sequence it deems appropriate. Pearson v. Callahan, 555 U.S. 223, 129 S.Ct. 808, 818, 172 L.Ed.2d 565 (2009).
Therefore,
Pro v. Donatucci, 81 F.3d 1283, 1286-1287 (3d Cir.1996) (citations omitted).
Furthermore,
Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1948, 173 L.Ed.2d 868 (2009) (citations omitted).
With this standard in mind, this Court must evaluate whether or not Plaintiffs' have stated a Bivens claim for which they are entitled to relief.
Plaintiffs allege violations of procedural due process based on "a denial of fundamental procedural fairness" and substantive due process based on "the exercise of power without any reasonable justification in the service of a legitimate governmental objective." (Resp. Mot. Dismiss, 11-12.) In doing so, Plaintiffs have named three individual Federal Defendants involved with the NPS during the relevant time period: Dennis Reidenbach, Cynthia MacLeod and Darla Sidles. The crux of Plaintiffs' argument is that each of these defendants, "under color of federal law, directed, supervised, condoned and endorsed arbitrary and capricious conduct toward Plaintiffs, including through deliberately misleading Plaintiffs and third parties about their powers, auspices and responsibilities." (Am. Compl. ¶ 115.) Additionally, Plaintiffs cite specific instances of alleged misconduct with respect to each individual Federal Defendant.
Defendant Reidenbach is the former Superintendent of INHP and the current Northeast Regional Director of the NPS. Plaintiffs allege an ongoing pattern of misconduct, including the following examples:
Defendant MacLeod was the Superintendent of INHP during the relevant time period. Plaintiffs allege Defendant MacLeod refused to issue CUAs to Plaintiffs while issuing them to competitors throughout 2008. (Am. Compl. ¶ 115; Resp. Mot. Dismiss, 15.) Furthermore, Plaintiffs allege Defendant MacLeod refused to address Plaintiffs' concern in February, 2009 that the IVCC's proposed confidentiality agreement, which was required in order to continue negotiations, placed unreasonable conditions on Plaintiffs. (Am. Compl. ¶¶ 61-64.)
Defendant Sidles is the former Acting Superintendent of INHP and the current Deputy Superintendent of INHP. (Am. Compl. ¶ 12.) Plaintiffs allege Defendant Sidles refused to issue CUAs to Plaintiffs while issuing them to competitors throughout 2007. (Resp. Mot. Dismiss, 15.)
Notably, in bringing their claims, Plaintiffs repeatedly compare themselves to other entities within the IVCC whom Plaintiffs characterize as their "competitors," to demonstrate the existence of arbitrary and capricious treatment by Defendants. However, despite the fact that much of Plaintiffs' Amended Complaint is premised on their assertions that they were not permitted to stage their tour in certain areas, were not permitted to solicit business in certain areas or at certain times, were not permitted to place signage in certain areas, etc ..., Plaintiffs fail to allege any facts which demonstrate that these "competitors" did not agree to the terms of a lease agreement similar to those offered to Plaintiffs. For this reason, as well as others which follow, said pleading deficiencies necessarily undermine the validity of Plaintiffs' "arbitrary and capricious" argument against individual Federal Defendants.
In making their Bivens claim, Plaintiffs allege that they have "constitutional rights to procedural and substantive due process and constitutional rights
In order for due process protections to apply, Plaintiffs must first allege a deprivation of "an individual interest that is encompassed within the Fourteenth Amendment's protection of life, liberty, or property." Hill v. Borough of Kutztown, 455 F.3d 225, 233 (3d Cir.2006) (internal quotations omitted). Inasmuch as this matter does not involve any claims involving protection of life, this Court need only address the liberty and property components of due process.
With regard to any potential liberty interest implicated herein,
Culinary Serv. of Del. Valley, Inc. v. Borough of Yardley, 385 Fed.Appx. 135 (3d Cir.Pa.2010) (citation omitted) (emphasis added).
With regard to any potential property interest, the same must "[r]est upon `a legitimate claim of entitlement' [and] Courts have consistently held that
Id. at 141 (emphasis added). See also Mun. Revenue Servs., Inc. v. McBlain, 347
As previously noted, Plaintiffs allege that "Defendants Reidenbach, MacLeod and Sidles, under color of federal law, directed, supervised, condoned and endorsed arbitrary and capricious conduct toward Plaintiffs ..." (Am. Compl. ¶ 115.) Additionally, Plaintiffs argue that the individual Federal Defendants refused to consider their requests for redress for IVCC's allegedly wrongful conduct, despite the applicability of "statutes, regulations, policies and orders governing the Federal Defendants' conduct." (Resp. Mot. Dismiss, 14.)
Plaintiffs base their deprivation argument on their own legal conclusion that individual Federal Defendants' conduct was "wrongful" and ignore the fact that the "statutes, regulations, policies and orders" to which they refer all confer discretion upon the Secretary to proceed as it has. In doing so, Plaintiffs have failed to state a claim upon which relief can be granted. See Fowler v. UPMC Shadyside, 578 F.3d at 211 (court may disregard any legal conclusions set forth in a Complaint).
Assuming arguendo that Plaintiffs could establish any property or liberty interest from the facts alleged in their Amended Complaint, they would similarly have to demonstrate that they could potentially prove that individual Federal Defendants' actions "shock the conscience." Levin v. Upper Makefield Twp., 90 Fed. Appx. 653, 660 (3d Cir.2004), cert. denied, 543 U.S. 1035, 125 S.Ct. 811, 160 L.Ed.2d 598 (2004).
This standard has been explained as follows:
See also Kolodziej v. Borough of Elizabeth, 2008 WL 4858295, 2008 U.S. Dist. LEXIS 91032 (W.D.Pa. Nov. 10, 2008) ("Alleged violations of substantive due process should be analyzed under a `shocks the conscience' standard *.*.*.* [under which] `only the most egregious official conduct' will constitute a violation of substantive due process.") (quoting United Artists Theatre Circuit v. Township of Warrington, 316 F.3d 392, 400 (3d Cir.2003)).
While Plaintiffs have alleged disparate treatment by the individual Federal Defendants, the Amended Complaint contains only bare allegations that such treatment was the result of bias or otherwise arbitrary conduct. Although detailed factual allegations are not required, the pleadings must contain more than merely "labels and conclusions" or "naked assertions devoid of further factual enhancement," which are not entitled to the presumption of truth. Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009).
The specific facts contained within Plaintiffs' Amended Complaint regarding individual Federal Defendants, without more, are equally consistent with said Defendants merely granting deference to the ultimate purposes and goals of the NPS, as opposed to being the result of arbitrary and/or capricious actions which would "shock the conscience." See Ferrone v. Onorato, 298 Fed.Appx. 138, 140 (3d Cir. 2008) ("`A benefit is not a protected entitlement if government officials may grant or deny it in their discretion.'") (quoting Town of Castle Rock v. Gonzales, 545 U.S. 748, 756, 125 S.Ct. 2796, 162 L.Ed.2d 658 (2005)). Said pleadings do not show that Plaintiffs have any entitlement to relief.
Accordingly, this Court need not continue to the second prong of the qualified immunity analysis and Plaintiffs' Bivens claim fails.
For the reasons set forth hereinabove, Federal Defendants' Motion to Dismiss on the basis of lack of personal jurisdiction will be denied, as said Defendants have been properly served. Federal Defendants' Motion to Dismiss Count I will be granted, as this Court lacks subject matter jurisdiction. Federal Defendants' Motion to Dismiss Count II will be granted because
In view of the foregoing, the only remaining claims are those against IVCC for Breach of Contract (Count III), Breach of Implied Agreement to Negotiate in Good Faith (Count IV) and Unjust Enrichment (Count VI), as well as claims against both IVCC and William Moore for Tortious Interference with Existing and Prospective Contractual Relations (Count VI) and Commercial Disparagement (Count VII). Inasmuch as this Court declines to exercise supplemental jurisdiction over these remaining state law claims, the same are dismissed without prejudice to bring them in the Philadelphia Court of Common Pleas.
An appropriate Order follows.
Fed.R.Civ.P. 4(e).
(c) Limitations. Any authorization issued under this section shall be limited to—
16 U.S.C. § 5966(c) (emphasis added).
16 U.S.C.S. § 407s (emphasis added). With respect to their similar argument regarding discrete actions required in awarding concessions contracts, Plaintiffs omit similarly pertinent language:
(10) Secretarial authority. Nothing in this title shall be construed as limiting the authority of the Secretary to determine whether to issue a concessions contract or to establish its terms and conditions in furtherance of the policies expressed in this title.
16 U.S.C. § 5952(10).
(Am. Compl., Ex. A, ¶ 6(a).)
Wessie Corp. v. Sea Isle City Zoning Bd. of Adjustment, 2007 WL 1892473, at *5, 2007 U.S. Dist. LEXIS 47342, at **14-15 (D.N.J. June 29, 2007) (emphasis added) (citations omitted).
Inasmuch as Plaintiffs did not own (or lease) the real property upon which they assert they had a right to conduct their business, and because discretion was specifically conferred upon Federal Defendants via statute to administer, operate, manage, lease, and maintain the property as they saw fit, the instant case is distinguishable from County Concrete, Blanche and Cornell, and the same rights cannot apply.
The Gateway Act explicitly authorizes the Secretary to delegate any management activities within his discretion to the IVCC, specifically regarding the provision of information and services at INHP. Accepting Plaintiffs' contention that no formal agreement exists and that Defendants are instead authorized to act only pursuant to The Organic Act and the Management Act, the level of discretion is similarly broad. While Plaintiffs attempt to characterize the obligations of the NPS as "unambiguous," the statute in fact provides considerable leeway. Under Title 16 U.S.C. § 5952(1), a competitive selection process must be used "[e]xcept as otherwise provided."
Furthermore, § 5952(10) states:
Under either the Gateway Act or the Organic and Management Acts, any of individual Federal Defendants named herein could reasonably conclude that the manner in which they dealt with Plaintiffs was permissible and was not violative of any clear constitutional right. Said Defendants would therefore be entitled to qualified immunity on this basis.