S. THOMAS ANDERSON, CHIEF UNITED STATES DISTRICT JUDGE.
In this action for injunctive relief and a declaratory judgment, Petitioners John Woods, M.D., and Tom McDonald, M.D., seek to prevent Respondents from enforcing 21 C.F.R. § 1301.76(a) against them with respect to their current or future employment as physicians with access to controlled substances. Petitioners decry what they claim to be Respondents' arbitrary enforcement. But in doing so, Petitioners force a confrontation with a fundamental principle of our Constitution's separation of powers — this Court's very authority to resolve the case before it. Unlike the Supreme Court, the jurisdiction of the inferior federal courts consists solely of that which Congress grants. And of that which Congress gives, Congress may take away. Respondents direct the Court to a provision of the Controlled Substances Act that they believe strips the Court of jurisdiction over this action. The Court agrees.
Before the Court are the parties' motions for summary judgment (ECF Nos. 33 & 42-1). The parties have thoroughly briefed the issues in responses (ECF Nos.
The following facts are undisputed by the parties. See Woods and McDonald's Statement of Material Facts, Feb. 15, 2017, ECF No. 34; Resp'ts' Resp. to Pet'rs' Statement of Material Facts, Mar. 15, 2017, ECF No. 42-2. Petitioners are both licensed physicians employed by the Henderson County Community Hospital ("HCCH") in Lexington, Tennessee. In order to prescribe and handle controlled substances, a physician must obtain a registration from the Drug Enforcement Administration ("DEA"). Both Petitioners voluntarily surrendered their DEA registrations while undergoing inpatient treatment for addiction and substance abuse — Woods in 2011 and McDonald at some point before 2002. Since 2013 and 2002 respectively, however, Woods and McDonald have had full prescribing authority. During the approximately 14 years that McDonald has had such authority, he has reapplied for and been granted DEA registration five times.
In their Second Amended Complaint, Petitioners allege the following facts that Respondents lack sufficient information to either admit or deny. See Second Am. Compl., Dec. 2, 2016, ECF No. 22; Answer, Feb. 24, 2017, ECF No. 36. Woods and McDonald are the only two hospitalists at HCCH. McDonald has been working at HCCH since 2002, though he was a staff doctor for the vast majority of that time. Woods has been working at HCCH as a hospitalist since April 2015.
Since his involvement with the DEA began, Woods has attempted to keep the DEA informed of his employment. Prior to beginning his work at HCCH, Woods informed the DEA that he would be working at HCCH. Also before his employment began at HCCH, Woods spoke with a DEA agent about his recordkeeping responsibilities at HCCH in light of his agreement with the DEA. The DEA agent confirmed that Woods did not have to submit prescriptions written for inpatient treatment. Thus, the DEA knew that Woods would be working at HCCH.
On November 10, 2016, the DEA was on-site at HCCH, and an agent informed Dr. Woods that he believed that, pursuant to 21 C.F.R. § 1301.76(a), Woods must have a waiver from the DEA in order to work at HCCH. The agent later confirmed this belief, called Woods, and told him that HCCH must have a waiver from the DEA in order for Woods to work at HCCH. The agent told Woods that he could not work at HCCH while the waiver was applied for and processed. Woods was suddenly and unexpectedly out of work. Before the agent's conversations with Woods on that day, the DEA had never told Woods that he needed a waiver to work at HCCH. The DEA agent also called HCCH that day and told HCCH that it must have a waiver for Woods to work at HCCH and Woods could not work until the DEA granted a waiver. The DEA agent further informed HCCH that it must apply for a waiver for any other physician who had surrendered
The DEA granted HCCH waivers for both Woods and McDonald on January 18, 2017. Decl. of Kerry R. Hamilton, at 1, Apr. 12, 2017, ECF No. 48-2.
Petitioners filed their initial Complaint requesting a temporary restraining order ("TRO") and a preliminary injunction (ECF No. 1) on November 10, 2016, and an Amended Complaint (ECF No. 2) the following day. The Court issued a TRO on November 15, 2016, preventing Respondents from enforcing 21 C.F.R. § 1301.76(a) against Petitioners and thereby precluding them from performing their duties as physician-hospitalists at the HCCH. Order Adopting R & R and Granting Pls.' Motion for TRO Enjoining the U.S. D.O.J. and U.S. D.E.A. from Enforcing 21 C.F.R. § 1301.76(a) Against John Woods, M.D., and Tom McDonald, M.D., Nov. 15, 2016, ECF No. 13. On December 6, 2016, the Court held a hearing regarding Petitioners' request for a preliminary injunction. Min. Entry, Dec. 16, 2016, ECF No. 30; see Motion for Prelim. Inj., Nov. 23, 2016, ECF No. 18. At the hearing, Respondents consented to entry of a preliminary injunction allowing the uninterrupted work of Petitioners during the litigation of this case. Min. Entry, ECF No. 30. In the order that followed, the Court found that all four factors used in analyzing a preliminary injunction issue swung in Petitioners' favor, including likelihood of success on the merits. Prelim. Inj., Dec. 12, 2016, ECF No. 32. Accordingly, the Court issued an injunction. Order Granting Motion for Prelim. Inj., Dec. 6, 2016, ECF No. 31; Prelim. Inj., ECF No. 32.
As of the filing of the Second Amended Complaint on December 2, 2016, Petitioners request a declaratory judgment holding that enforcement of 21 C.F.R. § 1301.76(a) against them is barred for three reasons: (1) enforcement would violate the doctrine of laches, (2) enforcement would be arbitrary and capricious under section 706(2)(A) of the Administrative Procedures Act ("APA"), and (3) enforcement would constitute an impermissible, retroactive application of Respondents' interpretation of section 1301.76(a). See 28 U.S.C. §§ 2201, 2202. Petitioners also request a permanent injunction prohibiting Respondents from enforcing section § 1301.76(a) against them at HCCH or any other future employment. Second Am. Compl., at 16, ECF No. 22. Petitioners' Motion for Summary Judgment (ECF No. 33) makes the above arguments and others, while Respondents' joint Response and Cross-Motion (ECF No. 42) raises the issues of subject-matter jurisdiction, standing, and sovereign immunity, in addition to responding to Petitioners' arguments.
Summary judgment is proper where the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. Fed. R. Civ. P. 56. When deciding a motion for summary judgment, the Court must review all the evidence and draw all reasonable inferences in favor of the nonmovant. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). In reviewing a
Before beginning its analysis, the Court finds it necessary to address a procedural issue
The Court declines to do so here for two reasons. First, this situation, where both parties have moved for summary judgment, reduces the prejudice of Respondents' error. The purpose of the requirement of a statement of undisputed material facts is "to assist the Court in ascertaining whether there are any material facts in dispute." W.D. Tenn. R. 56.1(a). Here, because both parties have moved for summary judgment, they agree "that there is no genuine dispute as to any material fact. ..." Fed. R. Civ. P. 56(a); see John Woods, M.D. and Tom McDonald, M.D.'s Summ.-J. Motion, at 1, Feb. 15, 2017, ECF No. 33 ("Woods and McDonald move this Court for entry of a judgment in their favor on the grounds that there are no genuine issues of material fact for trial."); Mem. in Opp'n to Pet'rs' Motion for Summ. J. and in Supp. of Resp'ts' Cross Motion for Summ. J. at 3, Mar. 15,
Second, this case has a "limited factual universe — no discovery has been propounded or depositions taken." Mem. in Further Supp. of Resp'ts' Cross Motion for Summ. J., at 2 n.1, April 12, 2017, ECF No. 48. Although Respondents did not file their own statement of undisputed material facts, they did respond to Petitioners' statement, which is relatively short. See Woods and McDonald's Statement of Material Facts, ECF No. 34; Resp'ts' Resp. to Pet'rs' Statement of Material Facts, ECF No. 42-2. While the Court agrees with Respondents' reasoning here, the Court admonishes them to avoid such error in the future by either requesting an excuse of this requirement prior to filing a summary judgment motion or collaborating with opposing counsel in the event that the parties file cross-motions. See, e.g., Oakley v. City of Memphis, 2010 WL 6908345, at *1, 2010 U.S. Dist. LEXIS 143451, at *6 (W.D. Tenn. June 17, 2010) ("As part of their cross-motions, the parties filed a Joint Statement of Undisputed Material Facts."). Nonetheless, the Court finds that the factual record is sufficiently developed in order to rule on both summary judgment motions without a statement of undisputed material facts from Respondents.
Based upon the undisputed material facts before it, the Court now turns to the issue of subject-matter jurisdiction.
Federal Rule of Civil Procedure 12 provides that "[i]f the court determines at any time that it lacks subject-matter jurisdiction, the court must dismiss the action." Fed. R. Civ. P. 12(h)(3). "The judicial Power of the United States, shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish." U.S. Const., art. III, § 1 (emphasis added). "The judicial Power shall extend to all Cases ... arising under ... the Laws of the United States. ..." U.S. Const., art. III, § 2, cl. 1. But "Congress, having the power to establish the courts, must define their respective jurisdictions. ... And it would seem to follow, also, that ... Congress may withhold from any court of its creation jurisdiction of any of the enumerated controversies." Sheldon v. Sill, 49 U.S. 441, 448-49, 8 How. 441, 12 S.Ct. 1147 (1850).
While Petitioners brought this challenge under the Administrative Procedure Act (the "APA"), "[t]he APA is not a jurisdiction-conferring statute; it does not directly grant subject matter jurisdiction to the federal courts." Jama v. Dep't of Homeland Sec., 760 F.3d 490, 494 (6th Cir. 2014) (citing Califano v. Sanders, 430 U.S. 99, 105, 97 S.Ct. 980, 51 L.Ed.2d 192 (1977)). In their Second Amended Complaint, Petitioners assert that the Court has subject-matter jurisdiction under 28 U.S.C. §§ 1331 and 1361.
21 U.S.C. § 877. This statute has the effect of removing the district courts' jurisdiction,
Section 877 applies only if Respondents' enforcement of 21 C.F.R. § 1301.76(a) against Petitioners constitutes a "final determination[], finding[], [or] conclusion[]." 21 U.S.C. § 877. Respondents raise the issue of a possible gap between the APA's definition of "final agency action" and section 877's definition of a "final determination[], finding[], [or] conclusion[]" but cite John Doe, Inc. v. Drug Enforcement Administration, 484 F.3d 561 (D.C. Cir. 2007) in support of the proposition that it does not. The Sixth Circuit has not previously considered the issue. The D.C. Circuit, in the case relied upon by Respondents, "s[aw] no reason... that the word `final' in [section] 877 should be interpreted differently than the word `final' in the APA." Id. at 566 n.4. It also acknowledged the difference between the wording of "`final agency action' under [section] 704 ... [and] `final determination[],
In giving effect to a statute, the Court must apply the plain meaning of the statutory language. United States v. Wiltberger, 18 U.S. 76, 95, 5 Wheat. 76, 5 S.Ct. 37 (1820); Vergos v. Gregg's Enters., 159 F.3d 989, 990 (6th Cir. 1998) (quoting Appleton v. First Nat'l Bank, 62 F.3d 791, 801 (6th Cir. 1995)). The Court "presume[s] ... `that [the] legislature says ... what it means and means ... what it says.'" Henson v. Santander Consumer USA Inc., ___ U.S. ___, 137 S.Ct. 1718, 1725, 198 L.Ed.2d 177 (2017) (quoting Dodd v. United States, 545 U.S. 353, 357, 125 S.Ct. 2478, 162 L.Ed.2d 343 (2005)). But the Legislature "sometimes uses slightly different language to convey the same message." DePierre v. United States, 564 U.S. 70, 83, 131 S.Ct. 2225, 180 L.Ed.2d 114 (2011) (quoting Deal v. United States, 508 U.S. 129, 134, 113 S.Ct. 1993, 124 L.Ed.2d 44 (1993)). Therefore, the Court "must be careful not to place too much emphasis on [a] marginal semantic divergence." Id.
Congress did not define "final," "determinations," "findings", "conclusions," or any combination of those terms in the CSA. See 21 U.S.C. § 802. Therefore, their plain, ordinary meaning will control. Nor did Congress define "final" under the APA. See 5 U.S.C. § 701. The plain, ordinary meaning of "final" thus controls, but the Supreme Court has developed a test for determining finality under the APA. Bennett v. Spear, 520 U.S. 154, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997); see also infra Section III.D (applying the Bennett
Final means "not to be altered, or undone... conclusive, decisive ... constituting the ultimate in degree, achievement, or utilization." Final, Webster's Third New International Dictionary (1961).
A determination is "the settling and ending of a controversy[,] esp[ecially] by judicial decision[,] ... [a] conclusion,... the resolving of a question by argument or reasoning[,] ... [or] the act of deciding definitely and firmly[,] esp[ecially] regarding a course of action." Determination, Webster's Third New International Dictionary. Findings are "the result of a judicial or quasi-judicial examination or inquiry[,] esp[ecially] into matters of fact as embodied in the verdict of a jury or decision of a court, referee, or administrative body." Findings, Webster's Third New International Dictionary. Conclusions are "an act or instance of concluding." Conclusions, Webster's Third New International Dictionary. This meaning of conclusions is not particularly helpful, but "concluding" is further defined as "final" in the sense of "last." Concluding, Webster's Third New International Dictionary. A conclusion in the singular form, however, is also a "reasoned judgment." Conclusion, Webster's Third New International Dictionary. Unlike with "determinations" or "findings," the use of "conclusions" in the plural appears to have some significance here as either meaning would not produce a necessarily illogical result. For example, finding, used in the singular form, can be an archaeological term that could lead to an absurdity in the context of the CSA if its meaning was forced upon "findings." See Finding, Webster's Third New International Dictionary. In its broadest sense, a finding could be interpreted as a "discovery" or "the act of a person or thing that finds." Finding, The Random House Dictionary of the English Language (2d unabridged ed. 1987). But as this still does not fit with the actions of the DEA, it is easy to see that Congress did intend to use "findings" in the plural form. "Determinations," however, does not have a separate definition from determination. See Determination,
While the surplusage canon narrows down alternative definitions, it does not wholly cleanse the statute of redundancy. After all, the "final determinations, findings, and conclusions ... shall be final and conclusive decisions. ... 21 U.S.C. § 877 (emphasis added). The Court is confident that the phrase "shall be final and conclusive decisions" can be demarcated from "final determinations, findings, and conclusions" because the context of a conditional judicial review in the remaining portions of the statutory provision informs the Court's understanding of "final and conclusive decision." 21 U.S.C. § 877; United States v. Santos, 553 U.S. 507, 512, 128 S.Ct. 2020, 170 L.Ed.2d 912 (2008) (citing United Sav. Ass'n v. Timbers of Inwood Forest Assocs., Ltd., 484 U.S. 365, 371, 108 S.Ct. 626, 98 L.Ed.2d 740 (1988)) (acknowledging that "context gives meaning" in statutory construction). While the subject "all final determinations, findings, and conclusions" refers to the administration of a particular matter by the DEA, the exception to "final and conclusive decisions" permitting judicial review by the United States Court of Appeals indicates that "final and conclusive decisions" functions to establish a general prohibition on judicial review of matters that fall within the scope of "final determinations, findings, and conclusions."
But the "final" that directly modifies "determinations, findings, and conclusions" remains. And the Court must grapple with the competing sense of "finality" that permeates the meaning of the modified words in an endeavor to avoid any surplusage if at all possible. The use of "final" here is best understood as making the point that the decision, inquiry, judgment, or other last act must truly be at its end. This syntactic choice appears to embody the idea of the working hypothesis — the DEA might have reached a preliminary determination or a provisional conclusion. Such things are not a "final and conclusive decision" that cannot be reviewed except by the United States Court of Appeals. The
At first glance, a decision seems remarkably different from "the whole or a part of an agency rule, order, license, sanction, relief, or the equivalent or denial thereof, or failure to act." But a closer examination of "agency action" reveals that the phrase captures any final act taken by an agency. See 5 U.S.C. § 551(5)-(6), (13). By the terms of the APA, an agency action is "an agency rule, order, license, sanction, relief, or the equivalent or denial thereof, or failure to act." Id. § 551(13). "`[O]rder' means ... a final disposition... in a matter other than rule making. ..." Id. § 551(6). And rule making is the "agency process for formulating, amending, or repealing a rule." Id. § 551(5). Thus, in terms of final acts by an agency, such action is necessarily either an order or rule making, both of which constitute an "agency action." As the DEA is unquestionably an agency, this means that any final decision is necessarily also a "final agency action." But is a "final agency action" also a final decision? The Court thinks it likely. Any action taken by DEA, once finalized, is captured by the plain language of section 877. "Decisions" seem to be the primary target of the language, but as it also contains reasoned judgments, the results of an inquiry, or other last acts, it would seem that end of the matter marks the beginning of the courts of appeals' jurisdiction.
The Court must now determine whether Respondents' enforcement of 21 C.F.R. § 1301.76(a) constitutes a "final agency action" under the APA, and therefore also a final decision under section 877 of the CSA. The Court finds it necessary to first delineate precisely what action of Respondents it is that Petitioners challenge in order to apply the Bennett test for finality. In Petitioners' Second Amended Complaint, Petitioners specifically refer to their claims as being brought under the APA. Petitioners challenge the Respondents' enforcement of 21 C.F.R. § 1301.76(a) against them because Respondents (1) unreasonably delayed in deciding to enforce the regulation, and such delay harmed Petitioners by causing them to lose their livelihoods; (2) cannot re-interpret
The Supreme Court articulated a two-element test to determine finality under the APA in Bennett v. Spear, 520 U.S. 154, 117 S.Ct. 1154, 137 L.Ed.2d 281 (1997): the action complained of (1) "must mark the consummation of the agency's decisionmaking process" and (2) "determine rights and obligations of a party or cause legal consequences." Berry v. U.S. Dep't of Labor, 832 F.3d 627, 633 (6th Cir. 2016) (citations omitted). The first element requires that the agency's action must have sufficiently progressed "such that judicial review of the action would [not] `disrupt the orderly process of adjudication.'" Id. (quoting Port of Boston Marine Terminal Ass'n v. Rederiaktiebolaget Transatlantic, 400 U.S. 62, 71, 91 S.Ct. 203, 27 L.Ed.2d 203 (1970)). The action complained of in Berry was the Department of Labor's denial of benefits to a son who had sought compensation under a federal statute providing "compensation and other services to current and former U.S. Department of Energy ... employees and contractors (or their survivors)." Id. at 630. In that case, the Sixth Circuit first noted that the letter denying the benefits to the son "marked the end of [the Department of Labor's decisionmaking] process." Id. at 633. The Department's decision "came after plenary review of the ... record," "was not `informal' or `tentative,'" and "`definitive[ly]' denied [the son]'s request." Id. (citations omitted). At that time, the son had "no opportunity for further administrative review of the request." Id. (citation omitted). The mere fact that the Department could "reopen [the son]'s claim at a later date"
First, the decision to enforce 21 C.F.R. § 1301.76(a) constitutes an agency action. As discussed above, an agency action is "the whole or a part of an agency rule, order, license, sanction, relief, or the equivalent or denial thereof, or failure to act." 5 U.S.C. § 551(13). The denial of Petitioners' ability to work without obtaining a waiver plainly fits, at the very least within the "other compulsory or restrictive action" component of "sanction." Id. § 551(10)(G). But as the DEA's decision here amounts to an informal adjudication, it likely fits into any number of section 551's definitions. See Pension Ben. Guar. Corp. v. United Air Lines, Inc. (In re UAL Corp.), 2005 WL 2777312, *5 n.8, 2005 Bankr. LEXIS 2217, *15 n.8 (Bankr. N.D. Ill. Sept. 21, 2005) (citing City of West Chicago v. NRC, 701 F.2d 632, 644 (7th Cir. 1983)) ("Informal adjudication is a residual category including all agency actions that are not rulemaking and that need not he conducted through `on the record' hearings.").
Second, as an agency action, the DEA's enforcement of 21 C.F.R. § 1301.76(a) is a final one. This action satisfies the Bennett test because the DEA's decisionmaking process has concluded and the decision had legal consequences for both Petitioners. At the initiation of this action, the DEA had completed its informal adjudication and determined that Petitioners could not work at HCCH under 21 C.F.R. § 1301.76(a) absent a waiver. And now, the DEA has granted HCCH those very waivers. At this juncture, the Court could not disrupt the DEA's decisionmaking in enforcing 21 C.F.R. § 1301.76(a) because that decisionmaking has reached its endpoint. Once it informed HCCH that they could not employ Petitioners without a waiver, the DEA had effectively concluded its enforcement of the regulation. As to the second element, the DEA's decision prevented Petitioners from working, which, by stopping Petitioners from participating in their chosen professions, clearly amounts to a "direct effect on [Petitioners'] day-to-day business."
The Court concludes that the DEA's decision to enforce 21 C.F.R. § 1301.76(a) constitutes a final agency action within the meaning of the APA and therefore also a "final determination[], finding[], [or] conclusion[]" under the CSA.
But Petitioners are not finished yet. As previously mentioned, they do not actually contend that the enforcement of 21 C.F.R. § 1301.76(a) is a final agency action. Instead, Petitioners claim that the Court has jurisdiction over this matter because they
Because the Court lacks subject-matter jurisdiction over this matter, Respondents' Cross-Motion for Summary Judgment is