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Respondent city enacted an ordinance requiring that 10% of the amount spent on city contracts be set aside each fiscal year for so-called "Minority Business Enterprises" (MBE's). Petitioner construction contractors' association, most of whose members did not qualify as MBE's, filed suit in the District Court against the city and respondent mayor, alleging that many of its members regularly bid on, and performed, construction work for the city, and "would have . . . bid on . . . designated set aside contracts but for the restrictions imposed" by the ordinance in violation of the Fourteenth Amendment's Equal Protection Clause. Ultimately the court entered summary judgment for petitioner, but the Court of Appeals vacated the judgment, ruling that petitioner lacked standing to challenge the ordinance because it had "not demonstrated that, but for the program, any . . . member would have bid successfully for any of [the] contracts." After certiorari was granted, the city repealed its MBE ordinance, replacing it with another ordinance which, although different from the repealed ordinance, still set aside certain contracts for certified black- and female-owned businesses. Subsequently, this Court denied respondents' motion to dismiss the case as moot.
Held:
THOMAS, J., delivered the opinion of the Court, in which REHNQUIST, C.J., and WHITE, STEVENS, SCALIA, KENNEDY, and SOUTER, JJ., joined. O'CONNOR, J., filed a dissenting opinion, in which BLACKMUN, J., joined, post, p. 669.
Deborah A. Ausburn argued the cause for petitioner. With her on the briefs was G. Stephen Parker.
Leonard S. Magid argued the cause for respondents. With him on the brief were Charles W. Arnold, Jr., and Steven E. Rohan. *
[ Footnote * ] Briefs of amici curiae urging reversal were filed for the Associated General Contractors of America, Inc., by Walter H. Ryland and Michael E. Kennedy; for the Equal Rights Advocates et al. by Curtis E. A. Karnow, Judith Kurtz, Eva Jefferson Paterson, Antonia Hernandez, and William C. McNeill III; for the Pacific Legal Foundation et al. by [508 U.S. 656, 658] John H. Findley, Ronald A. Zumbrun, and James W. Polk; and for Public Citizen et al. by Paul R. Q. Wolfson, Alan B. Morrison, John A. Powell, and Steven R. Shapiro.
Richard Ruda filed a brief for the National League of Cities et al. as amici curiae urging affirmance.
Lee Fisher, Attorney General of Ohio, Andrew I. Sutter, Assistant Attorney General, and Frank J. Kelley, Attorney General of Michigan, filed a brief for the State of Ohio et al. as amici curiae. [508 U.S. 656, 658]
JUSTICE THOMAS delivered the opinion of the Court.
A Jacksonville, Florida, ordinance accords preferential treatment to certain minority-owned businesses in the award of city contracts. In this case, we decide whether, in order to have standing to challenge the ordinance, an association of contractors is required to show that one of its members would have received a contract absent the ordinance. We hold that it is not.
In 1984, respondent Jacksonville, enacted an ordinance entitled "Minority Business Enterprise Participation," which required that 10% of the amount spent on city contracts be set aside each fiscal year for so-called "Minority Business Enterprises" (MBE's). City of Jacksonville Purchasing Code 126.604(a), 126.605(a) (1988). An MBE was defined as a business whose ownership was at least 51% "minority" or female, 126.603(a), and a "minority" was in turn defined as a person who is or considers himself to be black, Spanish-speaking, Oriental, Indian, Eskimo, Aleut, or handicapped, 126.603(b). Once projects were earmarked for MBE bidding by the city's chief purchasing officer, they were "deemed reserved for minority business enterprises only." 126.604(c), 126.605(c). Under the ordinance, "[m]athematical certainty [was] not required in determining the amount of the set aside," but the chief purchasing officer was required to "make every attempt to come as close as [508 U.S. 656, 659] possible to the ten percent figure." 126.604(a)(4), 126.605(a)(4). The ordinance also provided for waiver or reduction of the 10% set-aside under certain circumstances. 126.608.
Petitioner, the Northeastern Florida Chapter of the Associated General Contractors of America (AGC), is an association of individuals and firms in the construction industry. Petitioner's members do business in Jacksonville, and most of them do not qualify as MBE's under the city's ordinance. On April 4, 1989, petitioner filed an action, pursuant to 42 U.S.C. 1983, against the city and its mayor (also a respondent here) in the United States District Court for the Middle District of Florida. Claiming that Jacksonville's ordinance violated the Equal Protection Clause of the Fourteenth Amendment (both on its face and as applied), petitioner sought declaratory and injunctive relief. In its complaint, petitioner alleged that [many of its members "regularly bid on and perform construction work for the City] of Jacksonville," Complaint § 9, and that they ["would have . . . bid on . . . designated set aside contracts but for the restrictions imposed" by the ordinance,] id. § 46.
On April 6, 1989, the District Court entered a temporary restraining order prohibiting the city from implementing the MBE ordinance, and, on April 20, it issued a preliminary injunction. Respondents appealed. Concluding that petitioner had not demonstrated irreparable injury, the Court of Appeals reversed the issuance of the preliminary injunction, and remanded the case for an expedited disposition on the merits. 896 F.2d 1283 (CA11 1990). Chief Judge Tjoflat concurred in the judgment. In his view, the suit should have been dismissed for lack of standing, because petitioner's complaint did not "refer to any specific contract or subcontract that would have been awarded to a nonminority bidder but for the set-aside ordinance." Id., at 1287. [508 U.S. 656, 660]
In the meantime, both petitioner and respondents had moved for summary judgment.
1
On May 31, 1990, the District Court entered summary judgment for petitioner, concluding that the MBE ordinance was inconsistent with the equal protection criteria established by this Court in Richmond v. J.A. Croson Co.,
Because the Eleventh Circuit's decision conflicts with decisions of the District of Columbia Circuit and the Ninth Circuit, see O'Donnell Constr. Co. v. District of Columbia, 295 U.S. App. D.C. 317, 320, 963 F.2d 420, 423 (1992); Coral Constr. Co. v. King County, 941 F.2d 910, 930 (CA9 1991), cert. denied,
On October 27, 1992, 22 days after our grant of certiorari, the city repealed its MBE ordinance and replaced it with an ordinance entitled "African-American and Women's Business Enterprise Participation," which became effective the next day. This ordinance differs from the repealed ordinance in three principal respects. First, unlike the [508 U.S. 656, 661] prior ordinance, which applied to women and members of seven different minority groups, the new ordinance applies only to women and blacks. Jacksonville Purchasing Code 126.601(b) (1992). Second, rather than a 10% "set aside," the new ordinance has established "participation goals" ranging from 5 to 16,% depending upon the type of contract, the ownership of the contractor, and the fiscal year in which the contract is awarded. 126.604. Third, the new ordinance provides not one but five alternative methods for achieving the "participation goals." 126.605, 126.618. Which of these methods the city will use is decided on a "project by project basis," 126.605, but one of them, the "Sheltered Market Plan," is (apart from the percentages) virtually identical to the prior ordinance's "set aside." Under this plan, certain contracts are reserved "for the exclusive competition" of certified black- and female-owned businesses. 126.605(b). 2
Claiming that there was no longer a live controversy with respect to the constitutionality of the repealed ordinance, respondents filed a motion to dismiss the case as moot on November 18, 1992. We denied that motion on December 14.
In their brief on the merits, respondents reassert their claim that the repeal of the challenged ordinance renders the case moot. We decline to disturb our earlier ruling, however; now, as then, the mootness question [is [controlled] by]
[508
U.S. 656, 662]
City of Mesquite v. Aladdin's Castle, Inc.,
This is an a fortiori case. There is no mere risk that Jacksonville will repeat its allegedly wrongful conduct; it has already done so. Nor does it matter that the new ordinance differs in certain respects from the old one. City of Mesquite does not stand for the proposition that it is only the possibility that the selfsame statute will be enacted that prevents a case from being moot; if that were the rule, a defendant could moot a case by repealing the challenged statute and replacing it with one that differs only [in some [insignificant] respect.] [The gravamen of petitioner's complaint is that its members are disadvantaged in their efforts to obtain city contracts.] [The new ordinance may disadvantage them to a lesser degree than the old one,] but insofar as it accords preferential treatment to black- and female-owned contractors - and, in particular, insofar as its "Sheltered Market Plan" is a "set aside" by another name - it disadvantages them in the same fundamental way. 3 [508 U.S. 656, 663]
We hold that the case is not moot, and we now turn to the question on which we granted certiorari: whether petitioner has standing to challenge Jacksonville's ordinance.
The doctrine of standing is "an essential and unchanging part of the case-or-controversy requirement of Article III," Lujan v. Defenders of Wildlife,
The Court of Appeals held that petitioner could not establish standing because it failed to allege that one or more of its members would have been awarded a contract but for the challenged ordinance. Under these circumstances, the Court of Appeals concluded, there is no "injury." 951 F.2d, at 1219-1220. This holding cannot be reconciled with our precedents.
In Turner v. Fouche.,
We confronted a similar issue in Clements v. Fashing,
The decision that is most closely analogous to this case, however, is Regents of Univ. of Cal. v. Bakke,
Singly and collectively, these cases stand for the following proposition: [When the government erects a barrier that makes it more difficult for members of one group to obtain a benefit than it is for members of another group, a member of the former group seeking to challenge the barrier need not allege that he would have obtained the benefit but for the barrier in order to establish standing.] The ["injury in fact"] in an equal protection case of this variety is the [denial of equal treatment resulting from the imposition of the barrier, not the ultimate inability to obtain the benefit.] See, e.g., Turner v. Fouche, supra, at 362 ("We may assume that the [plaintiffs] have no right to be appointed to the . . . board of education. But [they] do have a federal constitutional right to be considered for public service without the burden of invidiously discriminatory disqualifications") (footnote omitted) (emphasis added). And in the context of a challenge to a set-aside program, the "injury in fact" is [the inability to compete on an equal footing in the bidding process, not the loss of a contract.] See Croson,
In urging affirmance, respondents rely primarily upon Warth v. Seldin,
In any event, the tension is minimal. Even assuming that the alleged injury in Warth was an inability to compete for variances and permits on an equal basis, and that Warth, too, is analogous to this case, it is distinguishable nonetheless. Unlike petitioner, which alleged that its members regularly bid on contracts in Jacksonville and would bid on those that the city's ordinance makes unavailable to them, the construction association in Warth did not allege that "any member ha[d] applied . . . for a building permit or a variance with respect to any current project." Id., at 516. Thus, unlike the association in Warth, petitioner has alleged an "injury . . . of sufficient immediacy . . . to warrant judicial intervention." Ibid. Furthermore, we did not hold in Warth, as the Court of Appeals - mutatis mutandis - did here, that the association was required to allege that, but for a discriminatory policy, variances or permits would have been awarded to its members. An allegation that a "specific project" was "precluded" by the existence or administration of the zoning ordinance, ibid., would certainly have been sufficient to establish standing, but there is no suggestion in Warth that it was necessary.
In its complaint, petitioner alleged that its members regularly bid on construction contracts in Jacksonville, and that they would have bid on contracts set aside pursuant to the city's ordinance were they so able. Complaint §§ 9, 46. Because those allegations have not been challenged
[508
U.S. 656, 669]
(by way of a motion for summary judgment, for example), we must assume that they are true. See Lucas v. South Carolina Coastal Council,
So ordered.
[ Footnote 2 ] The four other methods are (1) a "Participation Percentage Plan," under which contractors are required to subcontract with black- or female-owned businesses, 126.605(a), 126.612; (2) a "Direct Negotiation Plan," pursuant to which the city engages in "direct negotiations" with black- or female-owned businesses, 126.605(c); (3) a "Bid Preference Plan," which provides for the award of a contract to the black- or female-owned business whose bid is within a certain percentage or dollar amount of the lowest bid, 126.605(d); and (4) an "Impact Plan," under which "point values" are awarded to black- and female-owned businesses and to businesses that use black- or female-owned subcontractors or suppliers or have a specified employment program for black and female employees, 126.618.
[
Footnote 3
] At bottom, the dissent differs with us only over the question whether the new ordinance is sufficiently similar to the repealed ordinance that it is permissible to say that the challenged conduct continues - or, as the dissent puts it, whether the ordinance has been "sufficiently altered so as to present a substantially different controversy from the one the District Court originally decided." Post, at 671. We believe that the ordinance has not been "sufficiently altered"; the dissent disagrees. As for the merits of that disagreement, the short answer to the dissent's argument that this case is controlled by Diffenderfer v. Central Baptist Church of Miami Inc.,
[508
U.S. 656, 663]
[
Footnote 4
] Although Bakke came to us from state court, our decision in ASARCO Inc. v. Kadish,
[ Footnote 5 ] It follows from our definition of "injury in fact" that petitioner has sufficiently alleged both that the city's ordinance is the "cause" of its injury and that a judicial decree directing the city to discontinue its program would "redress" the injury.
[
Footnote 6
] There has been no suggestion that even if petitioner's members have standing to sue, petitioner itself does not, because one or more of the prerequisites to "associational standing" have not been satisfied. See Hunt v. Washington State Apple Advertising Comm'n,
JUSTICE O'CONNOR, with whom JUSTICE BLACKMUN joins, dissenting.
When a challenged statute expires or is repealed or significantly amended pending review, and the only relief sought is prospective, the Court's practice has been to dismiss the case as moot. Today the Court abandons that practice, relying solely on our decision in City of Mesquite v. Aladdin's Castle, Inc.,
Earlier this Term, the Court reaffirmed the longstanding rule that a case must be dismissed as moot "if an event occurs [pending review] that makes it impossible for the court to grant `any effectual relief whatever' to a prevailing party."
[508
U.S. 656, 670]
Church of Scientology of Cal. v. United States,
The analysis varies when the challenged statute is amended or is repealed but replaced with new legislation. I agree with the Court that a defendant cannot moot a case simply by altering the law "in some insignificant respect." Ante, at 662. We have recognized, however, that material changes may render a case moot. See, e.g., Princeton Univ. v. Schmid,
A more difficult question is presented when, after we have granted review of a case, the challenged statute is replaced with new legislation that, while not obviously or completely remedying the alleged infirmity in the original act, is more narrowly drawn. The new law ultimately may suffer from the same legal defect as the old. But the statute may be [sufficiently altered so as to present a substantially different controversy from the one the District Court originally decided.] In such cases, this Court typically has exercised caution and treated the case as moot.
In Diffenderfer v. Central Baptist Church of Miami, Inc.,
The Court took a similar approach in Fusari v. Steinberg,
These precedents establish that, where a challenged statute is replaced with more narrowly drawn legislation pending our review, and the plaintiff seeks only prospective relief, we generally should decline to decide the case. The controversy with respect to the old statute is moot, because a declaration of its invalidity or an injunction against the law's future enforcement would not benefit the plaintiff. Where we cannot be sure how the statutory changes will affect the plaintiff's claims, dismissal avoids the possibility that our decision will prove advisory.
Like Diffenderfer, this case concerns a law that was repealed and replaced after this Court granted review. Petitioner's complaint requests only declaratory and injunctive relief from a set-aside ordinance that no longer exists. The Court acknowledges that Jacksonville's new ordinance is more narrowly drawn than the last. See ante, at 662 ("The new ordinance may disadvantage [petitioner's members] to a lesser degree than the old one"). But the majority believes that Diffenderfer and similar cases are inapposite because, in the majority's view, Jacksonville's new ordinance does not differ substantially from the one challenged in petitioner's complaint. See ante, at 662-663, n. 3. I cannot agree.
The city's effort to make the law more narrowly tailored also is evident. By its terms, the new program will expire in 10 years. 126.604(a). In addition, as the Court explains, all but two of eight previously favored groups have been eliminated from the list of qualified participants; the participation goals vary according to the type of contract and the ownership of the contractor; and there are now five alternative methods for achieving the participation goals. See ante, at 660-661. Only one of the five methods for complying with the participation goals, the "Sheltered Market Plan," resembles the earlier set-aside law. Ante, at 661. It is unclear how the city will decide when, if ever, to use the Sheltered Market Plan, rather than an alternative method, for a particular project. As in Fusari, "we can only speculate how the new system might operate."
Whether or not the new ordinance survives scrutiny under the Fourteenth Amendment - a question on which I express no view - I cannot say that these changes are "insignificant," ante, at 662, to petitioner's equal protection claim. The majority
[508
U.S. 656, 675]
avoids this difficulty by characterizing petitioner's complaint in the most general terms possible: "The gravamen of petitioner's complaint is that its members are disadvantaged in their efforts to obtain city contracts." We did not undertake such a generalized approach in Diffenderfer or our other cases involving more narrowly drawn statutory changes. There, as here, any challenge to the new law "presents a different case," Allee,
That the only issue before us - and the only question decided by the Court of Appeals - concerns petitioner's standing does not compel a different result. Cf. Burke v. Barnes,
I also cannot agree with the majority's assertion that City of Mesquite "control[s]" this case. Ante, at 661. I understand City of Mesquite to have created a narrow exception to the [508 U.S. 656, 676] general principles I have described - an exception that clearly is inapplicable here.
The plaintiff in City of Mesquite challenged a licensing ordinance governing coin-operated amusement establishments. One of the factors considered in determining whether to grant a license under the ordinance was whether the applicant has "connections with criminal elements."
When the case came before us, we concluded that it need not be dismissed as moot. We relied on the voluntary cessation doctrine, which provides that "a defendant's voluntary cessation of a challenged practice does not deprive a federal court of its power to determine the legality of the practice." Id., at 289. If it did, defendants forever could avoid judicial review simply by ceasing the challenged practice, only to resume it after the case was dismissed. In such cases, we have said that the defendant, to establish mootness, bears a heavy burden of "demonstrat[ing] that there is no reasonable expectation that the wrong will be repeated." United States v. W. T. Grant Co.,
In City of Mesquite, we decided to reach the merits of the plaintiff's claim because "the city's repeal of the objectionable language would not preclude it from reenacting precisely the same provision if the District Court's judgment were vacated."
City of Mesquite did not purport to overrule the long line of cases in which we have found repeal of a challenged statute to moot the case. Significantly, we have not referred to the voluntary cessation doctrine in any other case involving a statute repealed or materially altered pending review. The reason seems to me obvious. Unlike in City of Mesquite, in the ordinary case, it is not at all reasonable to suppose that the legislature has repealed or amended a challenged law simply to avoid litigation, and that it will reinstate the original legislation if given the opportunity. This is especially true where, as here, the law has been replaced - no doubt at considerable effort and expense - with a more narrowly drawn version designed to cure alleged legal infirmities. We ordinarily do not presume that legislative bodies act in bad faith. That is why, other than in City of Mesquite, we have not required the government to establish that it cannot be expected to reenact repealed legislation before we will dismiss the case as moot.
At most, I believe City of Mesquite stands for the proposition that the Court has discretion to decide a case in which the statute under review has been repealed or amended. The Court appropriately may render judgment where circumstances demonstrate that the legislature likely will reinstate the old law - which would make a declaratory judgment or an order enjoining the law's enforcement worthwhile. But such circumstances undoubtedly are rare. And the majority points to nothing in the record of this case to suggest that we are dealing with the same sort of legislative improprieties that concerned us in City of Mesquite.
The majority is therefore quite unconvincing in its assertion that the mootness question in this case "is controlled by" City of Mesquite. Ante, at 661. By treating that exceptional case as announcing a general rule favoring the exercise [508 U.S. 656, 678] of jurisdiction, moreover, today's decision casts doubt on our other statutory-change cases and injects new uncertainty into our mootness jurisprudence. In my view, the principles developed in the other decisions I have described should continue to apply in the ordinary case. Where, as here, a challenged statute is replaced with a more narrowly drawn version pending review, and there is no indication that the legislature intends to reenact the prior version, I would follow Diffenderfer, vacate the lower court judgment, and direct that the plaintiff be permitted to challenge the new legislation. Accordingly, I respectfully dissent. [508 U.S. 656, 679]
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Citation: 508 U.S. 656
No. 91-1721
Argued: February 22, 1993
Decided: June 14, 1993
Court: United States Supreme Court
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