Pittman v. State of Oregon ( 2007 )


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  •                      FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    HELEN F. PITTMAN,                          
    Plaintiff-Appellant,
    v.                              No. 05-35900
    STATE OF OREGON, Employment                        D.C. No.
    CV-05-00509-AJB
    Department; DEBORAH LINCOLN,
    Director of the Employment                         OPINION
    Department,
    Defendants-Appellees.
    
    Appeal from the United States District Court
    for the District of Oregon
    Anna J. Brown, District Judge, Presiding
    Argued and Submitted
    November 9, 2007—Portland, Oregon
    Filed December 5, 2007
    Before: Raymond C. Fisher and Marsha S. Berzon,
    Circuit Judges, and Judith Barzilay, Judge.*
    Opinion by Judge Berzon
    *The Honorable Judith Barzilay of the United States Court of Interna-
    tional Trade, sitting by designation.
    15909
    PITTMAN v. STATE OF OREGON           15911
    COUNSEL
    Glenn Solomon, Portland, Oregon, for the plaintiff.
    Marc Abrams, Oregon Department of Justice, Salem, Oregon,
    for the defendant.
    15912               PITTMAN v. STATE OF OREGON
    OPINION
    BERZON, Circuit Judge:
    Helen Pittman appeals from dismissal of an employment
    discrimination claim brought under § 1981 against the
    Employment Department of the State of Oregon. The district
    court dismissed the § 1981 action, holding that the statute
    does not provide a cause of action against states. We affirm.
    FACTS
    On March 30, 2005, plaintiff Helen Pittman, an African-
    American woman, filed a complaint in Multnomah County
    Circuit Court alleging employment discrimination on the
    basis of race and naming as defendants the State of Oregon
    Employment Department and Deborah Lincoln, Director of
    the Employment Department. Pittman brought her claim
    against the Employment Department under 
    42 U.S.C. § 1981
    ,
    and her claim against Lincoln under 
    42 U.S.C. § 1983
    . In her
    complaint, Pittman alleged that the Employment Department
    was “an administrative agency and a subdivision of the State
    of Oregon that does business in Mutlnomah [sic] County.”
    On April 12, 2005, defendants removed the case to federal
    court and then moved to dismiss the case under Federal Rule
    of Civil Procedure 12(b)(6). In their motion to dismiss, defen-
    dants argued that there is no right of action to sue a state
    under either § 1981 or § 1983, and that a state, “regardless, is
    immune from such suits under the 11th Amendment to the
    United States Constitution.”1
    On August 8, 2005, the district court issued an opinion and
    1
    Defendants further contended that Deborah Lincoln was not properly
    a party to the action because she had not been served. The court held that
    Lincoln had not been properly served, and dismissed the action against
    her. That ruling has not been challenged on appeal.
    PITTMAN v. STATE OF OREGON              15913
    order in which it granted the defendants’ motion to dismiss.
    Addressing Pittman’s § 1983 claim, the district court noted
    that states are not “persons” for purposes of § 1983, so Pitt-
    man could not proceed under that statute against the Employ-
    ment Department. Turning to Pittman’s § 1981 claim, the
    district court held that the State of Oregon waived its Eleventh
    Amendment immunity by removing the case to federal court,
    but agreed that § 1981 does not permit actions against a state,
    citing the Supreme Court’s decision in Jett v. Dallas Indepen-
    dent School District, 
    491 U.S. 701
     (1989). Pittman then filed
    this appeal, contesting only the district court’s dismissal of
    her § 1981 action against the Employment Department.
    ANALYSIS
    Under this circuit’s case law, § 1981 contains a right of
    action against municipalities. Fed’n of African Am. Contrac-
    tors v. City of Oakland, 
    96 F.3d 1204
     (9th Cir. 1996). The
    plaintiff maintains that Federation should be extended to per-
    mit a § 1981 cause of action against a state, while the State
    contends otherwise. After surveying the statutory language
    and history in light of governing case law, we must agree.
    [1] A. We begin by recounting the historical background of
    the issue before us. Prior to the amendments brought about by
    the Civil Rights Act of 1991, Pub. L. No. 102-166, 
    105 Stat. 1071
    , 
    42 U.S.C. § 1981
     provided:
    All persons within the jurisdiction of the United
    States shall have the same right in every State and
    Territory to make and enforce contracts, to sue, be
    parties, give evidence, and to the full and equal ben-
    efit of all laws and proceedings for the security of
    persons and property as is enjoyed by white citizens,
    and shall be subject to like punishment, pains, penal-
    ties, taxes, licenses, and exactions of every kind, and
    to no other.
    15914                 PITTMAN v. STATE OF OREGON
    The Supreme Court interpreted this language to prohibit racial
    discrimination by both private parties and state entities in the
    making and enforcement of contracts. See Runyon v.
    McCrary, 
    427 U.S. 160
    , 168-171 (1976); Patterson v.
    McLean Credit Union, 
    491 U.S. 164
    , 186 (1989) (concluding
    that Title VII burden-shifting framework applied to claims of
    discrimination by private employers under § 1981) (super-
    seded on other grounds by the Civil Rights Act of 1991). Cf.
    Jones v. Alfred H. Mayer Co., 
    392 U.S. 409
    , 441-43 (1968)
    (holding that in enacting § 1982 — which, like § 1981, was
    part of § 1 of the Civil Rights Act of 1866 — Congress
    intended to reach both private discrimination and discrimina-
    tion under color of state law).2
    [2] Having held that § 1981 by its terms prohibits private
    discrimination as well as discrimination under color of state
    law, the Supreme Court in Jett v. Dallas Independent School
    District, 
    491 U.S. 701
     (1989), considered whether § 1981 cre-
    ated a private right of action to enforce that prohibition
    against state actors. Pointing to the fact that the Civil Rights
    Act of 1866, as originally enacted, contained a penal provi-
    sion “explicitly directed at state officials” while “nowhere . . .
    provid[ing] for an express damages remedy for violation of”
    § 1981, the Court concluded that “the express cause of action
    for damages created by § 1983 constitutes the exclusive fed-
    eral remedy for violation of the rights guaranteed in § 1981 by
    state governmental units.” Id. at 720-721, 733. The Court thus
    held that the prohibition on discrimination by a state or its
    officials contained in § 1981can be enforced against state
    actors only by means of § 1983. The primary practical conse-
    quence of that holding, highlighted in Jett, was that actions
    for vicarious liability would not lie against state actors
    2
    
    42 U.S.C. § 1982
     provides:
    All citizens of the United States shall have the same right, in
    every State and Territory, as is enjoyed by white citizens thereof
    to inherit, purchase, lease, sell, hold, and convey real and per-
    sonal property.
    PITTMAN v. STATE OF OREGON               15915
    because of the “custom or policy” limitation on actions
    against municipalities under § 1983. See Jett, 
    491 U.S. at
    735-
    36 (holding that, because § 1983 is the exclusive remedy for
    violation of § 1981 by a state actor, “petitioner must show that
    the violation of his right . . . was caused by a custom or policy
    within the meaning of Monell”) (quotation marks omitted);
    Monell v. Dep’t of Soc. Servs. of City of N.Y., 
    436 U.S. 658
    ,
    690-91 (1978).
    [3] Two years after Jett, Congress passed the Civil Rights
    Act of 1991, Section 101 of which added two new subsections
    to 
    42 U.S.C. § 1981
    . The new subsection (c) provides:
    (c) Protection against impairment
    The rights protected by this section are protected
    against impairment by nongovernmental discrimina-
    tion and impairment under color of State law.
    In their reports on the bill, the House Education and Labor
    Committee and the House Committee on the Judiciary both
    indicated that the purpose of subsection (c) was to codify
    Runyon v. McCrary. See H.R. REP. NO. 102-40(I), at 92
    (1991), reprinted in 1991 U.S.C.C.A.N. 549, 630 (citing Run-
    yon and stating that § 1981(c) “confirms section 1981’s cov-
    erage of both public and private sector employment”); H.R.
    REP. NO. 102-40(II), at 37 (1991), reprinted in 1991
    U.S.C.C.A.N. 694, 731 (subsection (c) “is intended to codify
    Runyon v. McCrary”). The legislative history of the subsec-
    tion nowhere makes reference to Jett, or to the availability of
    a private cause of action against states or state officials.
    Pittman contends that the addition of subsection (c) to
    § 1981 overruled Jett to create a cause of action against both
    municipalities and arms of the state. Pittman does not con-
    tend, nor would the language of the statute suggest, that the
    amendment explicitly created a right of action against arms of
    the state. She argues, however, that subsection (c) contains an
    15916             PITTMAN v. STATE OF OREGON
    implied right of action against both municipalities and state
    actors.
    In determining whether a statute contains an implied pri-
    vate right of action, this circuit continues to look to the four-
    factor test outlined in Cort v. Ash, 
    422 U.S. 66
     (1975). See
    Orkin v. Taylor, 
    487 F.3d 734
    , 738 (9th Cir. 2007). Under
    Cort, courts consider:
    1) “[I]s the plaintiff one of the class for whose
    especial benefit the statute was enacted”? Cort, 
    422 U.S. at 78
     (quotation marks omitted).
    2) “[I]s there any indication of legislative intent,
    explicit or implicit, either to create . . . a [federal]
    remedy or to deny one”? Id.
    3) “[I]s it consistent with the underlying purposes
    of the legislative scheme to imply such a remedy”?
    Id.
    4) “[I]s the cause of action one traditionally rele-
    gated to state law”? Id.
    Although we continue to consider the four factors outlined in
    Cort, we also note that subsequent Supreme Court decisions
    have clarified that “legislative intent” is the “most important
    inquiry.” See Orkin, 
    487 F.3d at 739
    ; Touche Ross & Co. v.
    Redington, 
    442 U.S. 560
    , 575 (1979) (the “central inquiry [is]
    whether Congress intended to create, either expressly or by
    implication, a private cause of action”).
    All of the other circuits to reach the question have held that
    the 1991 amendments and the addition of subsection (c) did
    not overrule Jett, and that there is still no cause of action
    against municipalities or other state actors. In Butts v. County
    of Volusia, 
    222 F.3d 891
     (11th Cir. 2000), for example, the
    Eleventh Circuit analyzed both the language of the statute and
    PITTMAN v. STATE OF OREGON               15917
    the legislative history of the amendments and concluded that
    there was no evidence of “Congress’ desire to alter the
    Supreme Court’s conclusion in Jett.” 
    Id. at 894
    . Examining
    the language of the amendments, Butts determined that it is
    “clear that [§ 1981(c)] creates a right that private or state
    actors may violate but does not itself create a remedy for that
    violation.” Id. As to the legislative history, the court noted
    that the purpose of the amendment was “to codify the
    Supreme Court’s decision in Runyon v. McCrary.” Id.; see
    also Bolden v. City of Topeka, 
    441 F.3d 1129
    , 1137 (10th Cir.
    2006) (“[E]ven after the 1991 amendments to § 1981, dam-
    ages claims against state actors for § 1981 violations must be
    brought under § 1983.”); Oden v. Oktibbeha County, 
    246 F.3d 458
    , 463-64 (5th Cir. 2001) (no private cause of action against
    state actors under § 1981 even after the amendments); Dennis
    v. County of Fairfax, 
    55 F.3d 151
    , 156 n.1 (4th Cir. 1995)
    (§ 1981(c) did not “overrule Jett’s holding with respect to
    municipal liability but only [codified] Runyon v. McCrary”).
    [4] We, however, in Federation of African-American Con-
    tractors v. City of Oakland, 
    96 F.3d 1204
     (9th Cir. 1996),
    concluded that the addition of subsection (c) overruled Jett to
    create a cause of action against municipalities. In reaching
    this holding, we acknowledged that “the amended 
    42 U.S.C. § 1981
     does not expressly authorize private claimants to sue
    state actors directly.” 
    Id. at 1210
    . But we held that “the
    amended 
    42 U.S.C. § 1981
     contains a cause of action against
    state actors.” 
    Id. at 1214
    .
    Applying the Cort factors, the court determined that “the
    statute, by its plain terms, creates federal civil rights in favor
    of a class of persons that include[d]” the plaintiffs, a group of
    African-American contractors who alleged that they had been
    discriminated against on the basis of race by the city of Oak-
    land. 
    Id. at 1211
    . As to legislative intent, the court held that,
    although Congress did not mention an intent to overrule Jett,
    it did intend to provide “parallel protection against private and
    governmental entities”:
    15918                PITTMAN v. STATE OF OREGON
    Because § 1981(c) affords identical protection
    against ‘impairment by nongovernmental discrimina-
    tion’ and ‘impairment under color of State law,’ and
    because § 1981(c) implicitly codifies an implied
    cause of action against private defendants, we infer
    that § 1981(c) also contains an implied cause of
    action against state actors who ‘impair’ a claimant’s
    § 1981 rights.
    Id. at 1213.
    The court went on to hold that actions against state actors
    who violate federal civil rights “have not been traditionally
    relegated to state law,” and that a cause of action was not
    inconsistent with the underlying purposes of the legislative
    scheme. Id. at 1213-14. In reaching this final conclusion, the
    court acknowledged that there was already a remedy for vio-
    lations of § 1981 by municipalities under § 1983. It noted,
    however, that “there is no alternative enforcement mechanism
    in the revised 
    42 U.S.C. § 1981
     itself,” and that implying a
    cause of action against municipalities under § 1981 “imposes
    no substantive change on federal civil rights law,” because
    such actions were already possible under § 1983.3 Id. at 1214.
    Notably, the argument that § 1981 contains a cause of action
    against municipalities was raised in Federation in an attempt
    to free plaintiffs from the obligation to demonstrate a “policy
    or custom” as required under Monell to impose liability on
    local government units under § 1983. Id (noting that appeal
    3
    Although Federation refers in parts to “state actors,” it is clear from
    the context of the entire opinion — and from Federation’s observation
    that its decision would not create a substantive change in the law — that
    it focused only on private causes of action against municipalities and other
    local government units. Federation involved a challenge to discrimination
    by Alameda County. Fed. of African American Contractors v. City of Oak-
    land, 
    96 F.3d at 1205
    . (Although the caption continued to list “City of
    Oakland” as the first defendant, Federation involved an appeal from dis-
    missal of the contractors’ first amended complaint, which named only
    Alameda County as a defendant).
    PITTMAN v. STATE OF OREGON               15919
    presents the issue whether § 1981(c) overrules Jett, “and, if
    so, whether the Act relieves plaintiffs from alleging that their
    civil rights were violated as a result of an official ‘policy or
    custom’ ”). Federation ultimately held on the latter question
    that the “policy or custom” requirement pertains to municipal-
    ities sued under § 1981. 
    96 F.3d at 1215
    . The result, as Feder-
    ation stressed, was that the availability of a cause of action
    under § 1981 worked no practical change in the outcome that
    would have obtained under Jett. Id. at 1214.
    B. Pittman argues that the reasoning of Federation necessar-
    ily applies not only to municipalities, but to arms of the state.
    The argument is a substantial one in two respects. First, the
    language of § 1981(c) itself does not support any distinction
    between municipalities and arms of the state. The statute
    merely affirms that it prohibits discrimination “under color of
    law,” and both municipal actors and arms of the state act
    “under color of law.” Second, much of Federation’s analysis
    of whether it is appropriate to imply a private right of action
    does not depend on any distinction between municipalities
    and state entities. The statute, by its plain terms, creates rights
    in favor of individuals who have been discriminated against
    in employment on the basis of race. Further, causes of action
    against state actors for violation of federal civil rights have
    also not traditionally been relegated to state law.
    [5] We nonetheless reject the extension of Federation to
    suits against arms of the state, for other reasons we conclude
    are more weighty. Most notably, the reasoning of Federation
    depended in part on its conclusion that implication of a cause
    of action against municipalities under § 1981 “imposes no
    substantive change on federal civil rights law,” because it
    does not expand the remedies available under § 1981 beyond
    those already available under § 1983. Id. The Employment
    Department argues that, in contrast, recognizing a cause of
    action against state actors under § 1981, would, in fact,
    expand the remedies available under that statute beyond those
    available under § 1983. On examination, that is so.
    15920             PITTMAN v. STATE OF OREGON
    As the Supreme Court has applied the Eleventh Amend-
    ment, “an unconsenting State is immune from suits brought in
    federal courts by her own citizens as well as by citizens of
    another State.” Edelman v. Jordan, 
    415 U.S. 651
    , 662-63
    (1974). Municipalities, in contrast, are not entitled to sover-
    eign immunity in federal court. See Bd. of Trustees of Univ.
    of Ala. v. Garrett, 
    531 U.S. 356
    , 369 (2001) (“[T]he Eleventh
    Amendment does not extend its immunity to units of local
    government.”); Beentjes v. Placer County Air Pollution Con-
    trol Dist., 
    397 F.3d 775
    , 777-78 (9th Cir. 2005) (Eleventh
    Amendment does not extend to municipal corporations or
    other political subdivisions that are not arms of the state).
    There are, however, exceptions to Eleventh Amendment
    immunity. When acting pursuant to its authority under § 5 of
    the Fourteenth Amendment, Congress can abrogate the sover-
    eign immunity of the states. See Atascadero State Hosp. v.
    Scanlon, 
    473 U.S. 234
    , 238 (1985) (superseded by statute on
    other grounds). Sovereign immunity also does not bar suits
    for prospective injunctive relief against individual state offi-
    cials acting in their official capacity. See Ex parte Young, 
    209 U.S. 123
    , 156-57 (1908). Moreover, a state may waive its
    Eleventh Amendment immunity — by, for example, remov-
    ing an action to federal court, which is what happened in this
    case. See Lapides v. Bd. of Regents of Univ. Sys. of Ga., 
    535 U.S. 613
    , 620 (2002) (by removing to federal court, a state
    “voluntarily invoke[s]” federal jurisdiction and thereby
    waives its immunity).
    [6] Applying these principles of sovereign immunity to
    cases under § 1983 and § 1981, courts have held that states
    enjoy sovereign immunity from suits brought under both stat-
    utes. In Quern v. Jordan, 
    440 U.S. 332
     (1979), the Supreme
    Court made clear that § 1983 “does not explicitly and by clear
    language indicate on its face an intent to sweep away the
    immunity of the States” as required for an abrogation of sov-
    ereign immunity. Id. at 345. Similarly, we, like all of the
    courts of appeal that have reached the issue, have concluded
    PITTMAN v. STATE OF OREGON                      15921
    that states enjoy sovereign immunity under § 1981 in the
    absence of waiver. Mitchell v. Los Angeles Cmty. Coll. Dist.,
    
    861 F.2d 198
    , 201 (9th Cir. 1988) (“[T]he district is a state
    entity that possesses eleventh amendment immunity from the
    appellants section 1981, 1983, and 1985 claims.”); see also
    Singletary v. Missouri Dep’t of Corr., 
    423 F.3d 886
    , 890 (8th
    Cir. 2005) (joining “other circuits [that] have uniformly held
    that a state is immunized from § 1981 liability under the Elev-
    enth Amendment”); Freeman v. Michigan Dep’t. of State, 
    808 F.2d 1174
    , 1178 (6th Cir. 1987) (Eleventh Amendment pre-
    vents relief against a state under § 1981); Sessions v. Rusk
    State Hosp., 
    648 F.2d 1066
    , 1069 (5th Cir. 1981) (same).
    [7] The ability to bring an action against a state is gov-
    erned, of course, not only by sovereign immunity, but also by
    whether the statute itself creates a cause of action against a
    state. As the Supreme Court held in Jett that there was no
    cause of action against state actors under § 1981, plaintiffs
    wishing to enforce § 1981’s prohibitions against a state actor
    were relegated to the cause of action available under § 1983.4
    Interpreting § 1983, the Supreme Court has held that the term
    “person” under § 1983 encompasses municipalities but not
    states. Monell, 
    436 U.S. at 658
     (municipalities); Will v. Michi-
    gan Dept. of State Police, 
    491 U.S. 58
     (1989) (arms of the
    state). Under § 1983, then, the availability of sovereign immu-
    nity is coextensive with the availability of a cause of action
    against a state actor, whether a municipality or an arm of the
    state. And while Eleventh Amendment sovereign immunity
    does not apply in state court, the practical effect of the hold-
    4
    Section 1983 provides, in relevant part :
    Every person who, under color of any statute, ordinance, regula-
    tion, custom, or usage, of any State or Territory or the District of
    Columbia, subjects, or causes to be subjected, any citizen of the
    United States or other person within the jurisdiction thereof to the
    deprivation of any rights, privileges, or immunities secured by
    the Constitution and laws, shall be liable to the party injured in
    an action at law, suit in equity, or other proper proceeding for
    redress . . . .
    15922             PITTMAN v. STATE OF OREGON
    ing in Will is that actions against arms of the state under both
    § 1983 and § 1981 cannot be brought in either federal or state
    court, because the cause of action in § 1983 does not reach
    arms of the state.
    For this reason, holding that § 1981(c) creates a cause of
    action against state actors would bring about some change in
    federal civil rights law that was not created by allowing
    actions against municipalities. Such a holding would allow
    cases in federal court against arms of the state in those
    instances in which they waive their Eleventh Amendment
    sovereign immunity, as the State has in this case. Perhaps
    more importantly, it would allow actions in state court against
    arms of the state for violations of § 1981, at least when the
    state does not invoke sovereign immunity under its own law
    in its own courts.
    The Supreme Court has instructed that allowing suits
    against states in state court is a significant alteration in the
    federal/state balance that must be supported by a clear state-
    ment of Congressional intent. In Will v. Michigan Dep’t of
    State Police, 
    491 U.S. 58
     (1989), the Supreme Court
    addressed the question whether the word “person” in § 1983
    includes arms of the state. In holding that it did not, the Court
    began by noting that “the question whether a State is a person
    under § 1983 [is] squarely before us since the Eleventh
    Amendment does not apply in state courts.” Id. at 63-64. The
    Court then held that, while “the scope of the Eleventh
    Amendment and the scope of § 1983 are [ ] separate issues,”
    id. at 66, it was appropriate to look to Eleventh Amendment
    cases requiring that where “Congress intends to alter the usual
    constitutional balance between the States and the Federal
    Government, it must make its intention to do so unmistakably
    clear in the language of the statute.” Id. at 65 (quoting Atas-
    cadero, 
    473 U.S. at 242
    ) (internal quotation marks omitted).
    The Court viewed it as highly unlikely, given that Congress
    did not abrogate state sovereign immunity under § 1983, “that
    Congress intended nevertheless to create a cause of action
    PITTMAN v. STATE OF OREGON                       15923
    against States to be brought in state courts, which are pre-
    cisely the courts Congress sought to allow civil rights claim-
    ants to avoid through § 1983.”5 Id. at 66. Given these
    concerns, the Court concluded that § 1983 did not clearly
    express Congressional intent to create a cause of action
    against arms of the state.
    Will, then, suggests that the creation of a right of action
    against state actors under a civil rights statute, even where
    there is no question of abrogating the state’s sovereign immu-
    nity, constitutes an “alter[ation in] the usual constitutional
    balance between the States and the Federal Government” for
    which “unmistakably clear language” is required. We do not
    find it necessary to address here whether “unmistakably clear
    language” is always required to find an implied right of action
    against a state under a civil rights statute. Will nonetheless
    suggests that, at the least, there must be some evidence of
    Congressional intent to impose liability on states in order to
    find such an implied right of action.
    In fact, neither the language nor the legislative history of
    the statute suggests any intent to create a private right of
    action against arms of the state. Federation is not to the con-
    trary, as it did not involve the application of Will; concerned
    only municipalities, not states; and stressed that it worked no
    practical changes in civil rights law because of the absence of
    sovereign immunity protection for municipalities.
    5
    While Will does provide support for the State’s position, it does not do
    so on the basis the state argues in its brief. The State maintains that a hold-
    ing that there is a cause of action against a state would, unlike in Federa-
    tion, work a substantive change in civil rights law because “state agencies
    are immune from lawsuits filed against them under § 1983.” But states are
    also immune from suits in federal court under § 1981. Actions under
    § 1981 would still be barred by sovereign immunity in federal courts in
    the absence of waiver. The true differences would be with regard to
    waived Eleventh Amendment immunity and in the ability to bring § 1981
    actions in state court.
    15924             PITTMAN v. STATE OF OREGON
    C. Our conclusion that § 1981(c) does not create a private
    right of action against states is bolstered by developments in
    the Supreme Court’s approach to private rights of action that
    have occurred since this court issued its decision in Federa-
    tion. In Gonzaga University v. Doe, 
    536 U.S. 273
     (2002), the
    Supreme Court made clear that, in determining whether a pri-
    vate right of action can be implied from a particular statute,
    rights-creating language is not determinative:
    . . . [E]ven where a statute is phrased in . . . explicit
    rights-creating terms, a plaintiff suing under an
    implied right of action still must show that the stat-
    ute manifests an intent “to create not just a private
    right but also a private remedy.”
    
    Id. at 284
     (emphasis in original) (quoting Alexander v. Sando-
    val, 
    532 U.S. 275
    , 286 (2001)). Section 1981(c) is phrased “in
    . . . explicit rights-creating terms,” but says nothing about a
    private remedy, nor does the legislative history.
    The holding in Gonzaga was not a significant departure
    from previous Supreme Court case law, which, beginning in
    the 1970s, has increasingly emphasized the distinction
    between rights and remedies. See Virginia Bankshares, Inc. v.
    Sandberg, 
    501 U.S. 1083
    , 1102 (1991) (“[R]ecognition of any
    private right of action for violating a federal statute must ulti-
    mately rest on congressional intent to provide a private reme-
    dy.”); Transamerica Mortgage Advisors, Inc. v. Lewis, 
    444 U.S. 11
    , 15-16 (1979) (“what must ultimately be determined
    is whether Congress intended to create the private remedy
    asserted”). Nor does it lead us to believe that Federation can
    or must be overruled. See Hulteen v. AT & T Corp., 
    498 F.3d 1001
    , 1009 (9th Cir. 2007) (en banc) (“A three-judge panel
    must follow a prior circuit decision unless a subsequent deci-
    sion by a relevant court of last resort either effectively over-
    rules the decision in a case ‘closely on point’ or undercuts the
    reasoning underlying the circuit precedent rendering the cases
    ‘clearly irreconcilable.’ ”). Cf. Day v. Apoliona, 496 F.3d
    PITTMAN v. STATE OF OREGON                     15925
    1027, 1031 (9th Cir. 2007) (“Gonzaga and other recent
    Supreme Court cases concerning § 1983 rights have not so
    changed the law that it is now irreconcilable with our prior
    cases”). Nonetheless, the clarity of the Supreme Court’s
    recent command in Gonzaga regarding the insufficiency of
    rights-creating language with regard to the implication of a
    private cause of action supports our hesitation to extend Fed-
    eration further in the absence of any evidence of Congressio-
    nal intent to provide a remedy for violations of § 1981 by
    arms of the state.6
    CONCLUSION
    [8] For the foregoing reasons, we hold that § 1981 does not
    contain a cause of action against states. The district court’s
    dismissal of Pittman’s § 1981 action against the State of Ore-
    gon Employment Department is AFFIRMED.
    6
    We note that, while implied rights of action necessarily require an
    intent to create a remedy, such an intent is unnecessary for creation of a
    right enforceable under § 1983. See Gonzaga, 
    536 U.S. at 287
     (2002); Ball
    v. Rodgers, 
    492 F.3d 1094
    , 1103 (9th Cir. 2007) (holding that the “lan-
    guage of the [Medicaid] free choice provisions is sufficiently rights-
    creating” to be enforced under § 1983) (internal quotation marks omitted).
    

Document Info

Docket Number: 05-35900

Filed Date: 12/5/2007

Precedential Status: Precedential

Modified Date: 10/14/2015

Authorities (29)

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Ball v. Rodgers , 492 F.3d 1094 ( 2007 )

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Jett v. Dallas Independent School Dist. , 109 S. Ct. 2702 ( 1989 )

Virginia Bankshares, Inc. v. Sandberg , 111 S. Ct. 2749 ( 1991 )

Board of Trustees of Univ. of Ala. v. Garrett , 121 S. Ct. 955 ( 2001 )

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