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Petitioner motor carrier filed suit in a Nebraska trial court, claiming, inter alia, that certain "retaliatory" taxes and fees the State imposed on motor carriers and vehicles such as his, which are registered in other States but operate in Nebraska, constituted an unlawful burden on interstate commerce and that respondents were liable under 42 U.S.C. 1983. Among other things, the court concluded that the taxes and fees violated the Commerce Clause and permanently enjoined respondents from assessing, levying, or collecting them; but it dismissed petitioner's 1983 claim. The State Supreme Court affirmed the dismissal, holding that there is no cause of action under 1983 for Commerce Clause violations because the Clause allocates power between the State and Federal Governments, and does not establish individual rights against the government.
Held:
Suits for violations of the Commerce Clause may be brought under 1983. Pp. 443-451.
WHITE, J., delivered the opinion of the Court, in which MARSHALL, BLACKMUN, STEVENS, O'CONNOR, SCALIA, and SOUTER, JJ., joined. KENNEDY, J., filed a dissenting opinion, in which REHNQUIST, C.J., joined, post, p. 451.
Richard E. Allen argued the cause and filed briefs for petitioner.
L. Jay Barter, Assistant Attorney General of Nebraska, argued the cause for respondents. With him on the brief were Robert M. Spire, Attorney General, and Arthur E. Wilmarth, Jr., *
[ Footnote * ] Andrew L. Frey, Kenneth S. Geller, Andrew J. Pincus, Daniel R. Barney, Robert Digges, Jr., Laurie T. Baulig, and William S. Busker filed a brief for American Trucking Associations, Inc., as amicus curiae urging reversal.
Charles Rothfeld and Benna Ruth Solomon filed a brief for the National Conference of State Legislature et al. as amicus curiae urging affirmance.
JUSTICE WHITE delivered the opinion of the Court.
This case presents the question whether suits for violations of the Commerce Clause may be brought under 93 Stat. 1284, as amended, 42 U.S.C. 1983. We hold that they may. [498 U.S. 439, 441]
Petitioner does business as an unincorporated motor carrier with his principal place of business in Ohio. He owns tractors and trailers that are registered in Ohio and operated in several States, including Nebraska. On December 17, 1984, he filed a class action suit in a Nebraska trial court challenging the constitutionality of certain "retaliatory" taxes and fees imposed by the State of Nebraska on motor carriers with vehicles registered in other States and operated in Nebraska. 1 In his complaint, petitioner claimed, inter alia, that the taxes and fees constituted an unlawful burden on interstate commerce and that respondents were liable under 42 U.S.C. 1983. Petitioner sought declaratory and injunctive relief, refunds of all retaliatory taxes and fees paid, and attorney's fees and costs.
After a bench trial based on stipulated facts, the court concluded that the taxes and fees at issue violated the Commerce Clause "because they are imposed only on motor carriers whose vehicles are registered outside the State of Nebraska, while no comparable tax or fee is imposed on carriers whose vehicles are registered in the State of Nebraska." App. to Pet. for Cert. 29a. It therefore permanently enjoined respondents from "assessing, levying, or collecting" the taxes and fees. Id., at 30a. The court also held that petitioner was entitled to attorney's fees and expenses under the equitable "common fund" doctrine. The court, however, entered judgment for respondents on the remaining claims, including the 1983 claim. Petitioner appealed the dismissal [498 U.S. 439, 442] of his 1983 claim, and respondents cross-appealed the trial court's allowance of attorney's fees and expenses under the common fund doctrine. Respondents did not however, appeal the trial court's determination that the retaliatory taxes and fees violated the Commerce Clause.
The Supreme Court of Nebraska affirmed the dismissal of petitioner's 1983 claim, but reversed the trial court's allowance of fees and expenses under the common fund doctrine. See Dennis v. State, 234 Neb. 427, 451 N.W.2d 676 (1990). With respect to the 1983 claim, the Nebraska Supreme Court held that "[d]espite the broad language of 1983 . . . there is no cause of action under 1983 for violations of the commerce clause." Id., at 430, 451 N.W.2d, at 678. The court relied largely on the reasoning in Consolidated Freightways Corp. of Delaware v. Kassel, 730 F.2d 1139 (CA8), cert. denied,
As the Supreme Court of Nebraska recognized, see 234 Neb., at 430, 451 N.W.2d, at 678, there is a division of authority on the question whether claims for violations of the Commerce Clause may be brought under 1983.
2
We granted certiorari to resolve this issue,
A broad construction of 1983
3
is compelled by the statutory language, which speaks of deprivations of "any rights, privileges, or immunities secured by the Constitution and laws." (Emphasis added.) Accordingly, we have "repeatedly held that the coverage of [ 1983] must be broadly construed." Golden State Transit Corp. v. Los Angeles,
As respondents argue, the "prime focus" of 1983 and related provisions was to ensure "a right of action to enforce the protections of the Fourteenth Amendment and the federal
[498
U.S. 439, 445]
laws enacted pursuant thereto," Chapman v. Houston Welfare Rights Organization,
Even more relevant to this case, we have rejected attempts to limit the types of constitutional rights that are encompassed within the phrase "rights, privileges, or immunities." For example, in Lynch v. Household Finance Corp.,
Petitioner contends that the Commerce Clause confers "rights, privileges, or immunities" within the meaning of 1983. We agree. The Commerce Clause provides that "Congress shall have Power . . . [t]o regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes." U.S. Const., Art. I, 8, cl. 3. Although the language of that Clause speaks only of Congress' power over commerce, "the Court long has recognized that it also limits the power of the States to erect barriers against interstate trade." Lewis v. BT Investment Managers, Inc.,
Respondents argue, as the court below held, that the Commerce Clause merely allocates power between the Federal and State Governments, and does not confer "rights." Brief for Respondents 14-17. There is no doubt that the Commerce Clause is a power-allocating provision, giving Congress preemptive authority over the regulation of interstate commerce. It is also clear, however, that the Commerce Clause does more than confer power on the Federal Government; it is also a substantive "restriction on permissible state regulation" of interstate commerce. Hughes v. Oklahoma,
The Court has often described the Commerce Clause as conferring a "right" to engage in interstate trade free from restrictive state regulation. In Crutcher v. Kentucky,
Last Term, in Golden State Transit Corp. v. Los Angeles,
This argument, however, was implicitly rejected in Boston Stock Exchange, supra, at 321, n. 3, where we found that the plaintiffs were arguably within the "zone of interests" protected by the Commerce Clause. Moreover, the Court's repeated references to "rights" under the Commerce Clause constitute a recognition that the Clause was intended to benefit those who, like petitioner, are engaged in interstate commerce. The "[c]onstitutional protection against burdens on commerce is for [their] benefit. . . ." Morgan v. Virginia,
Respondents also argue that the protection from interference with trade conferred by the Commerce Clause cannot be a "right," because it is subject to qualification or elimination by Congress. Brief for Respondents 21. That argument proves too much, however, because federal statutory rights may also be altered or eliminated by Congress. Until Congress does so, such rights operate as "a guarantee of freedom for private conduct that the State may not abridge." [498 U.S. 439, 451] Golden State, supra, at 112. The same is true of the Commerce Clause. 9
We conclude that the Supreme Court of Nebraska erred in holding that petitioner's Commerce Clause claim could not be brought under 42 U.S.C. 1983. The judgment of the Supreme Court of Nebraska is therefore reversed, and the case is remanded for further proceedings not inconsistent with this opinion.
It is so ordered.
[
Footnote 2
] Compare Kraft v. Jacka, 872 F.2d 862, 869 (CA9 1989); J & J Anderson, Inc. v. Erie, 767 F.2d 1469, 1476-1477 (CA10 1985); and Consolidated Freightways Corp. of Delaware v. Kassel, 730 F.2d 1139 (CA8), cert. denied,
[ Footnote 3 ] Section 1983 provides:
[ Footnote 4 ] The dissent contends that the legislative history of 1983 supports the proposition that 1983 does not apply to constitutional provisions that allocate power. See post, at 454-457. That argument is untenable. The dissent chiefly relies upon a partial quotation of a statement made by Representative Shellabarger, one of the principal sponsors of the statute. In context, the statement reads:
It becomes clear that, fully quoted and properly read, Shellabarger's remarks do not in any way aid the dissent. The dissent's attempt to characterize Shellabarger's argument for expansive federal power to enact [498 U.S. 439, 445] criminal legislation as support for a narrow construction of 1983 is strained, to say the least. Shellabarger simply did not address the issues of which constitutional provisions establish "rights, privileges, or immunities," whether the Commerce Clause falls into that category, or whether provisions that allocate power cannot also confer rights. Nor would it be likely that he would have made any of the statements on these points argued by the dissent, given this Court's then-recent holding that the affirmative grant of power to Congress in the Credit Clause established a "right, privilege, or immunity." See The Banks v. The Mayor, 7 Wall. 16, 22 (1869). The other snippets of legislative history relied upon by the dissent, see post, at 456-457, are similarly inapposite and inconclusive.
In any event, even if the dissent's cut-and-paste history could be read to provide some support for its formalistic distinction between power-allocating and rights-conferring provisions of the Constitution, it plainly does not constitute a "a clearly expressed legislative intent contrary to the plain language of [ 1983]." American Tobacco Co. v. Patterson,
[
Footnote 5
] The statute at issue in Lynch was the jurisdictional counterpart to 1983, 28 U.S.C. 1343(3), which contains the same "rights, privileges, or immunities" phrase. Even the dissent in Lynch agreed "without
[498
U.S. 439, 446]
reservation" that the phrase was not limited to violations of "personal" rights, but disagreed with the majority on a different issue. See
[
Footnote 6
] See, e.g., CTS Corp. v. Dynamics Corp. of America,
[
Footnote 7
] See, e.g., Black's Law Dictionary 1324 (6th ed. 1990) (defining "right" as "[a] legally enforceable claim of one person against another, that the other shall do a given act, or shall not do a given act") (citing Restatement of Property 1 (1936)). That the right at issue here is an implied right under the Commerce Clause does not diminish its status as a "right, privilege,
[498
U.S. 439, 448]
or immunity" under 1983. Indeed, we have already rejected a distinction between express and implied rights under 1983 in the statutory context. "The violation of a federal right that has been found to be implicit in a statute's language and structure is as much a `direct violation' of a right as is the violation of a right that is clearly set forth in the text of the statute." Golden State Transit Corp. v. Los Angeles,
[
Footnote 8
] An additional reason why claims under the Supremacy Clause, unlike those under the Commerce Clause, should be excluded from the coverage of 1983 is that, if they were included, the "and laws" provision in 1983 would be superfluous. See Golden State,
[
Footnote 9
] In arguing that the Commerce Clause does not secure any rights, privileges, or immunities within the meaning of 1983, the dissent relies upon Carter v. Greenhow,
JUSTICE KENNEDY, with whom THE CHIEF JUSTICE joins, dissenting.
In Golden State Transit Corp. v. Los Angeles
The majority must acknowledge, under even Golden State, that not all violations of federal law give rise to a 1983 action. The plaintiff must assert "rights, privileges, or immunities secured by the Constitution and laws." 42 U.S.C. 1983. The majority appears to base its decision upon three grounds. First, the "ordinary meaning" of the term "right" as confirmed by Black's Law Dictionary indicates that the Commerce Clause provides petitioner a right. Ante, at 447, and n. 7. Second, our cases contain scattered references to a "right" to engage in interstate commerce. Ante, at 448. And third, the Commerce Clause purportedly meets Golden State's test to determine whether a statutory violation gives rise to a 1983 cause of action, because the Commerce Clause was intended to benefit those who engage in interstate commerce. Ante, at 448-450. The majority errs, I must submit, when it ignores what the sponsors of 1983 told us about the scope of the phrase "rights, privileges or immunities secured by the Constitution," and errs further when it applies the Golden State test in this context. Even were I to apply the majority's various tests, moreover, I would reach the opposite conclusion.
The Golden State test, arguably necessary in assessing whether any of the hundreds of statutory provisions that confer express obligations upon the States secure rights within the meaning of 1983, is not appropriate in this case, where the question is whether a right is secured by a provision of the Constitution. Constitutional provisions are not so numerous, nor enacted with such frequency, that we are compelled to apply an ahistorical test. There is a ready alternative. We can distinguish between those constitutional provisions which secure the rights of persons vis-a-vis the States, and those provisions which allocate power between [498 U.S. 439, 453] the Federal and State Governments. The former secure rights within the meaning of 1983, but the latter do not.
The Commerce Clause, found at Art. I, 8, cl. 3, of the Constitution, is a grant of power to Congress. It states simply that "[t]he Congress shall have Power . . . To regulate commerce . . . among the several States." By its own terms as well as its design, as interpreted by this Court, the Commerce Clause is a structural provision allocating authority between federal and state sovereignties. It does not purport to secure rights. The history leading to the drafting and ratification of the Constitution confirms these premises.
The lack of a national power over commerce during the Articles of Confederation led to ongoing disputes among the States, and the prospect of a descent toward even more intense commercial animosity was one of the principal arguments in favor of the Constitution. See, e.g., The Federalist No. 7, pp. 62-63 (C. Rossiter ed. 1961) (A. Hamilton); id. No. 11, pp. 89-90 (A. Hamilton); id. No. 22, pp. 143-145 (A. Hamilton); id. No. 42, pp. 267-269 (J. Madison); id. No. 53, p. 333 (J. Madison).
Section 1983 has its origins in 2 of the Civil Rights Act of 1866, 14 Stat. 27, and 1 of the Civil Rights Act of 1871, 17 Stat. 13. See Lynch v. Household Finance Corp.,
Those same sponsors of 1983 understood and announced a distinction between power-allocating and rights-securing provisions of the Constitution. In discussing the meaning of the phrase "rights, privileges or immunities" in the original House version of 2 of the 1871 Act, Representative Shellabarger, Chairman of the House Select Committee which drafted the Act, and floor manager for the bill, explained: [498 U.S. 439, 455]
Statements of other supporters of the 1871 Act provide further evidence that Congress did not consider the Commerce Clause to secure the rights of persons within the meaning of 1983. Representative Hoar distinguished between two objectives of the Constitution: to "provide . . . for the protection and regulation of commercial intercourse, domestic and foreign"; and to "promote the general welfare by prohibiting the States from doing what is inconsistent with civil liberty, and compelling them to do what is essential to its maintenance." Cong. Globe 333. The 1871 Act was designed to enforce only those provisions of the Constitution providing for "the protection of personal liberty and civil rights," not "the protection of commerce." Ibid. Representative [498 U.S. 439, 457] Trumbull made the same distinction between these categories of constitutional provisions. Id., at 575. The sponsors of 1983 thus gave us a straightforward answer to the question of which constitutional violations give rise to a 1983 action, and told us that violations of power-allocating provisions such as the Commerce Clause do not.
Not only did the 42d Congress understand the difference between rights-securing and power-allocating provisions of the Constitution, but this Court's decisions of more than 100 years support the distinction. All previous cases in which this Court has determined (or assumed) that a constitutional violation gives rise to a 1983 cause of action alleged violations of rights-securing provisions of the Constitution, not power-allocating provisions. See, e.g., Monroe v. Pape,
In our only previous case discussing a 1983 claim brought for the violation of a supposed right secured by Article I of the Constitution, we held that violation of the Contracts Clause does not give rise to a 1983 cause of action. Carter v. Greenhow,
The Contracts Clause of Art. I, 10, provides that "[n]o State shall . . . pass any . . . Law impairing the Obligation of Contracts." At least such language would provide some support for an argument that the Contracts Clause prohibits States from "doing what is inconsistent with civil liberty." [498 U.S. 439, 458] Cong. Globe 333 (Rep. Hoar). If the Contracts Clause, an express limitation upon States' ability to impair the contractual rights of citizens, does not secure rights within the meaning of 1983, it assuredly demands a great leap for the majority to conclude that the Commerce Clause secures the rights of persons. The Commerce Clause is, if anything, a less obvious source of rights for purposes of 1983, as its text only implies a limitation upon state power.
At best, all that can be said is that the Commerce Clause grants Congress the power to regulate interstate commerce; from this grant of power, the Court has implied a limitation upon the power of a State to regulate interstate commerce; and in turn, courts provide a person injured by taxation that exceeds the limits of the Commerce Clause the "right to have a judicial determination, declaring the nullity of the attempt to" levy a discriminatory tax. Carter, supra, at 322. I find it ironic that Carter draws a distinction of nearly the same character as Golden State, between provisions which directly secure rights and those which do so "only as an incident" of their purpose. Golden State,
In Lynch v. Household Finance Corp.,
The majority rejects the weight of historical evidence in favor of scattered statements in our cases that refer to a "right" to engage in interstate commerce. Ante, at 448. None of these cases, however, hold that the Commerce Clause secures a personal right. Instead, they interpret the Commerce Clause as allocating power among sovereigns. See Crutcher v. Kentucky,
In similar fashion, McKesson Corp. v. Division of Alcoholic Beverages and Tobacco, Dept. of Business Regulation of Fla.,
Finally, following Golden State, the majority asks whether the provision in question was intended to benefit the putative plaintiff. Ante, at 449. The majority fails to locate in the text or history of the Commerce Clause any such intent, but nevertheless concludes that any argument to the contrary was "implicitly rejected in Boston Stock Exchange[ v. State Tax Comm'n, 429 U.S.,] at 321, n. 3, where we found that the plaintiffs were arguably within the "zone of interests" protected by the Commerce Clause." Ante, at 449. I fail to see how a determination that a particular plaintiff is within the "zone of interests" protected by a provision requires a finding that the provision was intended to benefit that plaintiff, or secures a right for purposes of 1983. To the contrary, our zone of interest cases have rejected any requirement that
[498
U.S. 439, 461]
there be a "congressional purpose to benefit the would-be plaintiff." Clarke v. Securities Industry Assn.,
The majority's treatment of the question confuses the concept of standing with that of a cause of action. We have considered these as distinct categories, and should continue to do so. See Davis v. Passman,
I cannot doubt the truth of the statement, ante, at 449-450 (quoting H. P. Hood & Sons, Inc. v. Du Mond,
I continue to draw the distinction made in my Golden State dissent, id., at 113, and would hold that, while the dormant Commerce Clause does not secure a right, it gives rise to a legal interest in petitioner against taxation which violates the dormant Commerce Clause. Thus, petitioner can rely upon the unconstitutionality of the tax in defending a collection action brought by the State, or in pursuing state remedies. This ability to invoke the Commerce Clause against a State, however, is not equivalent to finding a secured right under 1983. If that were so, all violations of federal law would give rise to a 1983 cause of action, and there would be little reason to search for statements supporting the existence of a right to engage in interstate commerce or to apply the [498 U.S. 439, 463] Golden State test. The majority does not purport to rest its decision upon such an all-inclusive view of 1983, but that is the necessary consequence of its reasoning.
The Court's analysis demonstrates the poverty of the "intended to benefit" test in the constitutional context, for it shows that even structural provisions that benefit individuals incidentally come within its purview. The Court's logic extends far beyond the Commerce Clause, and creates a whole new class of 1983 suits derived from Article I. For example, the Court's rationale creates a 1983 cause of action when a State violates the constitutional doctrine of intergovernmental tax immunity, Davis v. Michigan Dept. of Treasury,
Petitioner here does not complain that the State of Nebraska has failed to provide him an adequate forum in which to contest the validity of Nebraska's tax. Nebraska has done so. The Nebraska courts acknowledged the invalidity of the State's tax, enjoined its collection, and directed petitioner to file a refund claim for the taxes he had paid to the [498 U.S. 439, 464] State. Rather, the significance of the Court's decision, in this and future Commerce Clause litigation, is that a 1983 claim may permit dormant Commerce Clause plaintiffs to recover attorney's fees and expenses under 42 U.S.C. 1988.
In the Civil Rights Attorney's Fees Awards Act of 1976, Pub.L. 94-559, 90 Stat. 2641, codified at 42 U.S.C. 1988, Congress authorized the award of attorney's fees to prevailing parties in, inter alia, 1983 litigation. The award of attorney's fees encourages vindication of federal rights which, Congress recognized, might otherwise go unenforced because of the plaintiffs' lack of resources and the small size of any expected monetary recovery. See S.Rep. No. 94-1011, p. 6 (1976). Congress was reassured that 1988 would be "limited to cases arising under our civil rights laws, a category of cases in which attorneys fees have been traditionally regarded as appropriate." Id., at 4.
The significant economic interests at stake in dormant Commerce Clause cases, as well as the resources available to the typical dormant Commerce Clause plaintiff, make such concerns far removed from the realities of dormant Commerce Clause litigation. The pages of the United States Reports testify to the ability of major corporations and industry associations to commence and maintain dormant Commerce Clause litigation without receiving attorney's fee awards under 1988. By making such fee awards available, the Court does not vindicate the purposes of 1983 or 1988, but merely shifts the balance of power away from the States and toward interstate businesses.
Today's decision raises far more questions about the proper conduct of challenges to the validity of state taxation than it answers. The Tax Injunction Act, 28 U.S.C. 1341, prevents any attempt in federal court to "enjoin, suspend or restrain" assessment or collection of a state tax, so long as "a plain, speedy and efficient remedy may be had in the courts of such State." The principle of comity likewise prevents a federal court from entertaining any action for damages under
[498
U.S. 439, 465]
1983 to redress allegedly unconstitutional state taxation. Fair Assessment in Real Estate Assn., Inc. v. McNary,
Today's opinion gives no hint of 1983's character as an extraordinary remedy passed during Reconstruction to protect basic civil rights against oppressive state action. Section 1983 now becomes simply one more weapon in the litigant's arsenal, to be considered whenever the defendant is a state actor and its use is advantageous to the plaintiff. I dissent from the opinion and judgment of the Court.
[ Footnote 1 ] Shellabarger was discussing the power of Congress to enact 2 of the 1871 Act, and not the scope of 1, which we know as 42 U.S.C. 1983. Reliance upon Shellabarger's statement is nevertheless appropriate. The [498 U.S. 439, 456] proposed 2 used the phrase "rights, privileges or immunities of another person," Cong. Globe App. 69, and Shellabarger was discussing his understanding of the rights, privileges, and immunities secured by the Constitution and laws, not of any language which would differ in meaning as between 1 and 2 of the 1871 Act. It matters not whether one repeats Shellabarger's speech of many pages, or only the relevant portion thereof, for I do not rely upon Shellabarger's views of congressional power to legislate, but rather the distinction he articulated between power-allocating provisions and rights-conferring provisions, between those provisions which "do not relate directly to the rights of persons within the States and as between the States and such persons therein," and those which do "secure" "rights" of persons. Ibid. (emphasis added). Shellabarger's distinction is borne out by the remainder of the legislative history.
[ Footnote 2 ] The defendant in Bowman had refused to ship the plaintiff's product, relying upon an Iowa statute that prohibited shipment of intoxicating liquors. The plaintiff apparently argued that Iowa's statute violated the Commerce Clause, and therefore could not excuse the defendant's failure to perform. The Court's opinion was construing the jurisdictional analogue to 1983, which permitted appeal without regard to the amount in controversy "in any case brought on account of the deprivation of any right, privilege, or immunity secured by the Constitution of the United States, or of any right or privilege of a citizen of the United States." Rev.Stat. 699 (1874). See Collins, "Economic Rights," Implied Constitutional Actions, and the Scope of Section 1983, 77 Geo. L.J. 1493, 1519-1520, 1549-1551 (1989).
[
Footnote 3
] In a search for evidence that the Commerce Clause was intended to benefit persons who engage in interstate commerce, the majority quotes Morgan v. Virginia,
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Citation: 498 U.S. 439
No. 89-1555
Argued: October 31, 1990
Decided: February 20, 1991
Court: United States Supreme Court
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