F I L E D
United States Court of Appeals
Tenth Circuit
PUBLISH
JUL 31 2002
UNITED STATES COURT OF APPEALS
PATRICK FISHER
Clerk
TENTH CIRCUIT
BOARD OF COUNTY COMMISSIONERS
OF SWEETWATER COUNTY, WYOMING
and BOARD OF TRUSTEES OF
MEMORIAL HOSPITAL OF
SWEETWATER COUNTY, WYOMING,
Plaintiffs - Appellants,
v.
No. 01-8071
JIM GERINGER, Governor of Wyoming, in
his official capacity; CYNTHIA M.
LUMMIS, Wyoming State Treasurer,
individually and in her official capacity; and
MAX MAXFIELD, Wyoming State Auditor,
individually and in his official capacity,
Defendants - Appellees.
Appeal from the United States District Court
for the District of Wyoming
(D.C. No. 01-CV-106-J)
Ford T. Bussart of Bussart, West & Tyler, P.C., Rock Springs, Wyoming, for
Plaintiff-Appellant Board of Trustees of Memorial Hospital of Sweetwater
County, Wyoming (Harold V. Moneyhun, Sweetwater County & Prosecuting
Attorney, Green River, Wyoming, for Plaintiff-Appellant Board of Commissioners
of Sweetwater County, Wyoming, with him on the briefs).
Harry D. Ivey, Assistant Attorney General of Wyoming (Hoke MacMillan,
Attorney General of Wyoming, Michael L. Hubbard, Deputy Attorney General of
Wyoming, and Douglas J. Moench, Assistant Attorney General of Wyoming, on
the brief), Cheyenne, Wyoming, for Defendants-Appellees.
Before EBEL, McKAY, and BRISCOE, Circuit Judges.
EBEL, Circuit Judge.
The Appellants in this case, the Board of Commissioners of Sweetwater
County, Wyoming, and the Board of Trustees of Memorial Hospital of Sweetwater
County, Wyoming (collectively, “Sweetwater County”), appeal a decision by the
United States District Court for the District of Wyoming dismissing their suit
against Wyoming’s governor, treasurer, and auditor (collectively, “Wyoming”).
Before the district court, Sweetwater County sought a preliminary and permanent
injunction preventing Wyoming from enforcing legislation that directs funds
generated from lands granted to the state by the federal government “for a
hospital for miners who shall become disabled or incapacitated to labor[] while
working in the mines of the state,” Wyoming Act of Admission, ch. 664, § 11, 26
Stat. 222 (1890), to a “state miner’s [sic] hospital board” (Hospital Board), which
is charged with overseeing health services for miners in the state, Wyo. Stat. Ann.
§§ 30-6-101(a), 30-6-102. Sweetwater County contended that this new
arrangement violated a federal trust created by the Act of Admission and ran afoul
of provisions in the Wyoming Constitution. After hearing arguments on
-2-
Sweetwater County’s request for a preliminary injunction, the district court held
that the Wyoming Act of Admission did not establish a trust for a state miners’
hospital. As a result, the district court concluded that Sweetwater County’s suit
did not present a question of federal law, dismissed the purported federal claims
for lack of subject matter jurisdiction, and declined to exercise supplemental
jurisdiction over Sweetwater County’s remaining state law claims.
Sweetwater County subsequently appealed to this court the district court’s
interpretation of the Wyoming Act of Admission. Because we conclude that, even
assuming a trust exists, Sweetwater County lacks standing, we DISMISS this
action.
I. Background
In 1890, the state of Wyoming entered the Union pursuant to the Wyoming
Act of Admission. In this legislation, Congress granted 30,000 acres of federal
land to the state “for a hospital for miners who shall become disabled or
incapacitated” while working in mines within the state, and declared that the land
should not be sold for less than $10 per acre. Wyoming Act of Admission § 11.
Less than a year after entering the Union, Wyoming set to work building a
miners’ hospital. On January 10, 1891, the Wyoming legislature passed
legislation calling for the location of the hospital to be chosen by popular vote
-3-
during the November 1892 general election. In the ensuing election, Wyoming’s
citizens chose the town of Rock Springs, located in Sweetwater County, to be the
home of the miners’ hospital; following the election, the state legislature enacted
legislation calling for the construction of a miners’ hospital in Rock Springs. A
few years later, the state renamed the facility “The Wyoming General Hospital”
and declared that “[t]he object of said hospital shall be to provide sustenance,
care and medical and surgical attention for all miners who shall become disabled
or incapacitated to labor while working in the mines of the state . . . and to such
other persons as may be admitted under the laws, rules, and regulations
established for the government thereof.”
For the next fifty years, the state continued to operate and oversee the
Wyoming General Hospital. In 1947, however, the Wyoming legislature
transferred ownership and responsibility for the hospital to Sweetwater County.
The transferring legislation specified that all income generated from the original
1890 land grant would “be paid to said county to be used” for the care of disabled
and incapacitated miners, as long as the hospital served disabled and incapacitated
miners. 1947 Wyo. Sess. Laws Ch. 64, §§ 2-3. The hospital was then renamed
Memorial Hospital of Sweetwater County, and, from 1947 until 2001, served as
the state’s miners’ hospital.
-4-
In 2001, however, the state legislature enacted a bill creating a “State
Miner’s Hospital Board.” See Wyo. Stat. Ann. § 30-6-101 et seq. Under this
legislation, the Hospital Board, comprised of members of the Sweetwater County
Memorial Hospital Board, citizens of Sweetwater County and another county, and
a member from another county hospital’s board, assumed primary responsibility
for addressing miners’ health care needs in the state. The legislation specifically
charged the Hospital Board with developing a comprehensive health care plan for
miners, contracting with providers for health care services for miners, and
developing regulations for determining miners’ eligibility for health services. See
id. § 30-6-102(b). Most importantly, the legislation declared that the Hospital
Board, and only the Hospital Board, would receive money from the lands granted
to the state for a miners’ hospital. Id. § 30-6-102(a). In essence, it appears that
the legislation implicitly repealed portions of the 1947 legislation directing that
Memorial Hospital receive all income from the miners’ hospital land grant and
explicitly allowed the state to contract with various parties to provide health
services to miners.
The present suit then followed.
-5-
II. Analysis
On appeal, Wyoming argues that, even if we assume the existence of a land
trust, Sweetwater County lacks standing to bring the present suit because it is
neither a trustee nor a beneficiary of the alleged trust. Although the district court,
having concluded that the Admission Act did not create a land trust, did not base
its subject matter jurisdiction ruling on standing, standing is a “threshold issue in
every case,” Hutchinson v. Pfeil, 211 F.3d 515, 523 (10th Cir. 2000) (internal
quotation marks omitted), which a federal appellate court may raise “at any time,”
regardless of whether the district court expressly addressed the question.
Buchwald v. Univ. of N.M. Sch. of Med., 159 F.3d 487, 492 (10th Cir. 1998)
(internal quotation marks omitted).
A. Standing Law
“The standing inquiry requires us to consider ‘both constitutional limits on
federal-court jurisdiction and prudential limitations on its exercise.’” Sac & Fox
Nation of Mo. v. Pierce, 213 F.3d 566, 573 (10th Cir. 2000) (quoting Warth v.
Seldin, 422 U.S. 490, 498 (1975)). Constitutional standing derives from Article
III of the U.S. Constitution, which restricts federal courts’ jurisdiction to suits
involving an actual case or controversy. Schaffer v. Clinton, 240 F.3d 878, 882
(10th Cir. 2001) (citing Allen v. Wright, 468 U.S. 737, 750 (1984)). To satisfy
-6-
constitutional standing requirements, a plaintiff must demonstrate the presence of
three elements:
(1) “injury in fact”–meaning “the invasion of a legally protected
interest that is (a) concrete and particularized, and (b) actual or
imminent, not conjectual or hypothetical”; (2) “a causal relationship
between the injury and the challenged conduct”–meaning that the
“injury fairly can be traced to the challenged action of the
defendant”; and (3) “a likelihood that the injury will be redressed by
a favorable decision”–meaning that the “prospect of obtaining relief
from . . . a favorable ruling is not too speculative.”
Buchwald, 159 F.3d at 493 (quoting Northeastern Fla. Chapter of the Associated
Gen. Contractors of Am. v. City of Jacksonville, 508 U.S. 656, 663-64 (1993));
see also Bennett v. Spear, 520 U.S. 154, 163 (1997) (“To satisfy the ‘case’ or
‘controversy’ requirement of Article III, which is the ‘irreducible constitutional
minimum’ of standing, a plaintiff must, generally speaking, demonstrate that he
has suffered ‘injury in fact,’ that the injury is ‘fairly traceable’ to the actions of
the defendant, and that the injury will likely be redressed by a favorable
decision.” (quoting, inter alia, Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-
61 (1992)). At its core, we have explained, constitutional standing requires a
court “to ask not only whether an injury has occurred, but whether the injury that
has occurred may serve as the basis for a legal remedy in the federal courts.”
Shaffer, 240 F.3d at 883.
-7-
In addition to satisfying the prerequisites for constitutional standing, a
plaintiff must also meet, generally speaking, the requirements of prudential
standing, a judicially-created set of principles that, like constitutional standing,
places “limits on the class of persons who may invoke the courts’ decisional and
remedial powers.” Warth, 422 U.S. at 499; see also Allen, 468 U.S. at 751
(describing prudential standing as “judicially self-imposed limits on the exercise
of federal jurisdiction”). Under a prudential standing inquiry, a party that has
satisfied the requirements of constitutional standing may nonetheless be barred
from invoking a federal court’s jurisdiction. Bennett, 520 U.S. at 163; Warth,
422 U.S. at 499. Like its constitutional counterpart, prudential standing
establishes three conditions a party must overcome before invoking federal court
jurisdiction. First, a plaintiff must assert his “own rights, rather than those
belonging to third parties.” Sac & Fox Nation, 213 F.3d at 573; see also Warth,
422 U.S. at 499 (explaining that a plaintiff “cannot rest his claim to relief on the
legal rights or interests of third parties”). Second, the plaintiff’s claim must not
be “a ‘generalized grievance’ shared in substantially equal measure by all or a
large class of citizens.” Warth, 422 U.S. at 499; see also Allen, 468 U.S. at 751
(explaining that generalized grievances should normally be directed to the
legislative, as opposed to judicial, branches of government). Third, prudential
standing requires that “a plaintiff’s grievance must arguably fall within the zone
-8-
of interests protected or regulated by the statutory provision or constitutional
guarantee invoked in the suit.” Bennett, 520 U.S. at 163.
We have further explained that, in the federal-land-trust context, a political
subdivision of a state (such as Sweetwater County) suing a state or state officials
(such as Wyoming) for an alleged breach of a federal trust under the Supremacy
Clause must satisfy two criteria before the suit may go forward. First, we have
explained, the political subdivision should be “‘substantially independent’ from
the state.” 1 Branson Schl. Dist. RE-82 v. Romer, 161 F.3d 619, 629 (10th Cir.
1998 ) (citing Lassen v. Arizona ex. rel. Arizona Highway Dep’t, 385 U.S. 458,
459 n.1 (1967)). The ability of the subdivision to elect its own representatives, to
sue or be sued in its own name, or to hold property in its own name are some
factors courts should consider when analyzing the “independence” component, we
1
In Branson School District, we examined in considerable detail the
circumstances under which a political subdivision of a state may sue the state for
breaching obligations imposed under a federal land trust. We observed that,
generally, municipalities and counties may not sue a state for alleged violations of
the Fourteenth Amendment, because, we pointed out, that Amendment “was
written to protect individual rights, as opposed to collective or structural rights.”
161 F.3d at 628 (citing Williams v. Mayor & City Council of Baltimore, 289 U.S.
36, 53 (1933)). These limitations do not necessarily apply, however, when a
political subdivision sues its “parent” under the Supremacy Clause of the
Constitution for an alleged violation of federal law, we explained. See id. at 630
(“Thus [prior case law] supports the proposition that we make explicit today: A
political subdivision has standing to sue its political parent on a Supremacy
Clause violation.”); see also Rural Water Dist. No. 1, Ellsworth County, Kan. v.
City of Wilson, Kan., 243 F.3d 1263, 1274 (10th Cir. 2001) (explaining that a
political subdivision could sue a state for a violation of “federal statutory law”).
-9-
suggested. Id. Second, and “most importantly,” we have addressed whether the
political subdivision is “‘essentially’ the beneficiar[y] of the federal trust at
issue,” id., or whether it serves “‘essentially [as] the trustee of the trust at issue.’”
Id. (quoting Lassen, 385 U.S. at 459 n.1).
B. Sweetwater County Standing
With these guidelines in mind, we turn to the question of whether,
assuming that the Wyoming Act of Admission created a trust for a miners’
hospital, Sweetwater County has standing to sue for an alleged violation of that
trust.
Considering first Sweetwater County’s political subdivision status, we note
that it is clear that the County and the Memorial Hospital Board of Trustees
possess sufficient political independence to maintain a suit against Wyoming
officials for a violation of the alleged trust. See Branson Schl. Dist., 161 F.3d at
629. Under Wyoming law, a county, through its board of commissioners, has the
right to “[s]ue and be sued,” enter contracts, and buy and sell property. Wyo.
Stat. Ann. § 18-2-101. County commissioners are elected by the voters of each
county, id. § 18-3-501(a), and have a variety of duties and responsibilities, see id.
§ 18-3-504, including the power to help establish and run county hospitals, id.
§§ 18-8-102, 18-8-103, and appoint the trustees who oversee county hospitals, id.
§ 18-8-104(a). Boards of Trustees for “county” and “memorial” hospitals, like
- 10 -
the board for Memorial Hospital, also enjoy considerable authority under state
law, see id. § 18-8-101(a)(i) (defining county and memorial hospitals), including
the right to enter contracts for services, see § 18-8-108, sue or be sued on behalf
of their hospital, Collins v. Memorial Hosp., 521 P.2d 1339, 1340 (Wyo. 1974),
and “manage[] and control” hospital property. Wyo. Stat. Ann. § 18-8-104(a).
Sweetwater County’s ability to press its suit against Wyoming officials
falters, however, when we consider the “most important[]” factor identified by
Branson School District of whether the political subdivision is essentially a
“trustee” or “beneficiary” of the trust. 161 F.3d at 629. In Branson School
District, we explained that “[a] trust is created when a settlor conveys property to
a trustee with a manifest intent to impose a fiduciary duty on that person requiring
that the property be used for a specific benefit of others.” 161 F.3d at 633 (citing
Restatement (Second) of Trusts §§ 2, 17, 23 & 23 cmt. (a) (1959)). As
Sweetwater County forthrightly conceded during oral argument, the Wyoming Act
of Admission–the act through which the United States, as settlor, conveyed land
for the creation of a miners’ hospital–only requires Wyoming to use the 30,000
acres granted it “[f]or the establishment and maintenance and support . . . for a
hospital for miners,” Wyo. Act of Admission § 11 (emphasis added); the Act does
not require that a particular hospital, such as Sweetwater County Memorial
Hospital, be designated the state’s “miner’s hospital.” Indeed, the alleged trust
- 11 -
vests responsibility for the supervision of the miners’ hospital with the state and
allows Wyoming to designate any hospital in the state as the miners’ hospital.
Moreover, Sweetwater County concedes that the state of Wyoming is the trustee
for the claimed trust. Though the record indicates that in the past Sweetwater
County Memorial Hospital received funds generated from the lands for the
creation of a miners’ hospital, we have uncovered no evidence in the record–and
Sweetwater County has directed us to no such evidence–indicating that
Sweetwater County administers the trust that holds the lands and directs the
revenue generated therefrom. 2 See Branson Sch. Dist., 161 F.3d at 637
(discussing trustee’s duties to manage trust property); cf. Lassen, 385 U.S. at 459
n.1 (finding that Arizona Land Commissioner “with custody of . . . trust lands”
acted “essentially [as] the trustee” for federal land trust). Assuming, then, that
the Act did create a federal land trust, the state of Wyoming serves as the trust’s
trustee, not Sweetwater County and not other state entities, see Wyo. Act of
Admission § 11 (granting land “[t]o the state of Wyoming” for the purpose of
establishing a miners’ hospital) (emphasis added)), a point Sweetwater County
2
In its complaint, Sweetwater County asserted that it was a “fiduciar[y]” of
the alleged trust and is “charged by law with the responsibility of protecting the
interests of incapacitated and disabled miners of the state.” (Complaint ¶ 5.) The
only authority remotely suggested by Sweetwater County in support of this
blanket assertion, however, seems to be that it historically received money from
the purported trust to care for miners.
- 12 -
implicitly acknowledges in its court filings. (See Aplt. Br. at 24 (“The state must
hold, dispose and appropriate the lands (and the revenue therefrom) [for the
support of a state miners’ hospital].”); Complaint ¶ 12 (contending that the “State
stands in the fiduciary capacity of trustee”)).
Similarly, the parties do not dispute that miners disabled while working in
Wyoming mines were the intended beneficiaries of the alleged trust, not
Sweetwater County and not any particular state hospital. 3 (See Aplt. Br. at 28-29
(“The Act of Admission and Constitution explicitly articulate that the purpose of
the land grant was for a Miners’ Hospital for disabled or incapacitated
miners . . . .”)).
Because Sweetwater County, a political subdivision of Wyoming, is neither
the trustee nor the beneficiary of the hypothetical trust, nor the trust’s settlor, it is
3
Sweetwater County alleges that the Act of Admission incorporated specific
provisions of the Wyoming Constitution that further restricted the state’s ability
to dispose of land grants from the federal government. Because the issue is not
relevant to how we resolve this appeal, we express no opinion as to whether the
federal Act of Admission incorporated portions of the Wyoming Constitution. We
would simply note that, like the Act of Admission, the Wyoming Constitution
refers to the state’s obligation to manage land grants, reinforcing the notion that if
a trust exists, the state of Wyoming acts as trustee. See Wyo. Const. Art. 18 § 1
(“The State of Wyoming hereby agree to accept the grants of land heretofore
made, or that may hereafter be made by the United States to the state, for
educational purposes, for public buildings and institutions and for other
objects . . . .”); § 4 (declaring that the state legislature shall enact laws for the
“sale, disposal, leasing or care of all lands”).
- 13 -
unable to maintain its suit against Wyoming. 4 See, e.g., Branson Schl. Dist., 161
F.3d at 629.
C. Merits
Having concluded that Sweetwater County cannot satisfy the requirements
for political subdivision standing, 5 we need not address the jurisdictional question
4
Sweetwater County repeatedly argues that it has standing to press its suit
in light of our decision in Branson School District. In Branson School District,
we recognized that a political subdivision of state can, in some instances, invoke
federal land grant statutes, “assert[] the structural protections of the Supremacy
Clause of Article VI,” and sue “its creating state” in federal court for allegedly
violating a federal trust. 161 F.3d at 628-29. Branson School District does not,
however, stand for the proposition that a county, or any other political subdivision
of a state, possesses generalized standing to sue a state anytime it believes that
the state is violating provisions of a federal trust. Instead, we upheld the right of
Colorado school districts to sue Colorado for allegedly violating a trust created by
the Colorado Enabling Act. 161 F.3d at 629. We justified this conclusion, in
part, on the grounds that “these school districts [were] ‘essentially’ the
beneficiaries of the federal trusts at issue.” Id.; see also id. (explaining how other
circuits have held that “a political subdivision may bring a claim against its
creating state when the claim is based on an assertedly controlling federal law and
where the political subdivision assertedly is a beneficiary of that law” (emphasis
added)). By contrast, the beneficiary of the alleged trust at issue in this case is
not Sweetwater County, but Wyoming’s disabled and incapacitated miners.
5
Because Sweetwater County lacks political subdivision standing, we do not
resolve constitutional or prudential standing issues. Thus, we do not address
difficult issues of redressability, compare Baca v. King, 92 F.3d 1031, 1036 (10th
Cir. 1996), Mount Evans Co. v. Madigan, 14 F.3d 1444, 1451 (10th Cir. 1994),
Ash Creek Mining Co. v. Lujan, 969 F.2d 868, 876 (10th Cir. 1992), and Wyo.
Timber Indus. Ass’n v. United States Forest Serv., 80 F. Supp. 2d 1245, 1256 (D.
Wyo. 2000), with CC Distribs., Inc. v. United States, 883 F.2d 146, 151 (D.C.
Cir. 1989) and W. Va. Ass’n of Cmty. Health Ctrs., Inc. v. Heckler, 734 F.2d
1570, 1572-74 (D.C. Cir. 1984), or issues of whether Sweetwater County is
asserting legal rights belonging to third parties and whether its grievance falls
(continued...)
- 14 -
considered by the district court: whether the Wyoming Act of Admission created a
federal trust for a miners’ hospital. 6 See Qwest Communications Int’l, Inc. v.
Federal Communications Comm’n, 240 F.3d 886, 890 (10th Cir. 2001); Bear
Lodge Multiple Use Ass’n v. Babbitt, 175 F.3d 814, 822 (10th Cir. 1999);
Colorado Taxpayers Union, Inc. v. Romer, 963 F.2d 1394, 1396 (10th Cir. 1992).
III. Conclusion
Because we conclude that Sweetwater County lacks standing even if a
federal trust exists, we DISMISS this appeal.
5
(...continued)
outside the “zone of interests protected or regulated by the statutory provision or
constitutional guarantee invoked in the suit.” Bennett, 520 U.S. at 163.
6
We express no opinion as to what rights Wyoming state law might grant
Sweetwater County. Although Sweetwater County’s complaint raised issues of
state law, the district court declined to review those claims after it dismissed the
underlying federal claim. As best we can tell, Sweetwater County does not appeal
this portion of the district court’s ruling. Moreover, the district court’s ruling
comports with our general admonishment that district courts should dismiss state
claims without prejudice after all federal claims have been dismissed, particularly
when the federal claims are dismissed before trial, see Ball v. Renner, 54 F.3d
664, 669 (10th Cir. 1995); Sawyer v. County of Creek, 908 F.2d 663, 668 (10th
Cir. 1990), a position supported by both Supreme Court precedent, see Carnegie-
Mellon Univ. v. Cohill, 484 U.S. 343, 350 & n.7 (1988); United Mine Workers of
Am. v. Gibbs, 383 U.S. 715, 726 (1966), and the federal statute granting district
courts supplement jurisdiction over state claims. See 28 U.S.C. § 1367(c)(3).
- 15 -