OPINION OF THE COURT
SAN REMO HOTEL, L. P. V. CITY AND COUNTY OF SANFRANCISCO
545 U. S. ____ (2005)
SUPREME COURT OF THE UNITED STATES
NO. 04-340
SAN REMO HOTEL, L. P., et al., PETITIONERS
v. CITY and COUNTY OF SAN FRANCISCO, CALIFORNIA,
et al.
on writ of certiorari to the united states court of
appeals for the ninth circuit
[June 20, 2005]
Justice Stevens delivered the
opinion of the Court.
This case presents the question
whether federal courts may craft an exception to the full faith and
credit statute, 28 U. S. C. §1738, for claims brought under
the Takings Clause of the Fifth Amendment.
Petitioners, who own and operate a hotel in
San Francisco, California (hereinafter City), initiated this
litigation in response to the application of a city ordinance that
required them to pay a $567,000 “conversion fee” in 1996. After the
California courts rejected petitioners’ various state-law takings
claims, they advanced in the Federal District Court a series of
federal takings claims that depended on issues identical to those
that had previously been resolved in the state-court action. In
order to avoid the bar of issue preclusion, petitioners asked the
District Court to exempt from §1738’s reach claims brought under
the Takings Clause of the Fifth Amendment.
Petitioners’ argument is predicated on
Williamson County Regional Planning Comm’n v.
Hamilton
Bank of Johnson City,
473
U. S. 172 (1985), which held that takings claims are not ripe
until a State fails “to provide adequate compensation for the
taking.”
Id., at 195. Unless courts disregard §1738 in
takings cases, petitioners argue, plaintiffs will be forced to
litigate their claims in state court without any realistic
possibility of ever obtaining review in a federal forum. The Ninth
Circuit’s rejection of this argument conflicted with the Second
Circuit’s decision in
Santini v.
Connecticut Hazardous
Waste Management Service, 342 F. 3d 118 (2003). We
granted certiorari to resolve the conflict, 543 U. S. ___
(2004),[
Footnote 1] and now
affirm the judgment of the Ninth Circuit.
I
The San Remo Hotel is a
three-story, 62-unit hotel in the Fisherman’s Wharf neighborhood in
San Francisco. In December 1906, shortly after the great earthquake
and fire destroyed most of the city, the hotel—then called the “New
California Hotel”—opened its doors to house dislocated individuals,
immigrants, artists, and laborers. The City officially licensed the
facility to operate as a hotel and restaurant in 1916, and in 1922
the hotel was given its current name. When the hotel fell into
financial difficulties and a “dilapidated condition” in the early
1970’s, Robert and Thomas Field purchased the facility, restored
it, and began to operate it as a bed and breakfast inn. See
San
Remo Hotel, L. P. v.
City and County of San
Francisco, 100 Cal. Rptr. 2d 1, 5 (Cal. App. 2000) (officially
depublished).
In 1979, San Francisco’s Board of
Supervisors responded to “a severe shortage” of affordable rental
housing for elderly, disabled, and low-income persons by
instituting a moratorium on the conversion of residential hotel
units into tourist units. San Francisco Residential Hotel Unit
Conversion and Demolition Ordinance (hereinafter Hotel Conversion
Ordinance or HCO) §§41.3(a)–(g), Pet. for Cert. 195a–197a. Two
years later, the City enacted the first version of the Hotel
Conversion Ordinance to regulate all future conversions. San
Francisco Ordinance No. 330–81, codified in §41.1
et seq.
Under the 1981 version of the HCO, a hotel owner could convert
residential units into tourist units only by obtaining a conversion
permit. And those permits could be obtained only by constructing
new residential units, rehabilitating old ones, or paying an “in
lieu” fee into the City’s Residential Hotel Preservation Fund
Account. See §§41.12–41.13, Pet. for Cert. 224a–231a. The City
substantially strengthened the HCO in 1990 by eliminating several
exceptions that had existed in the 1981 version and increasing the
size of the “in lieu” fee hotel owners must pay when converting
residential units. See 145 F. 3d 1095, 1099 (CA9 1998).
The genesis of this protracted dispute lies in
the 1981 HCO’s requirement that each hotel “file an initial unit
usage report containing” the “number of residential and tourist
units in the hotel[s] as of September 23, 1979.” §41.6(b)(1), Pet.
for Cert. 206a. Jean Iribarren was operating the San Remo Hotel,
pursuant to a lease from petitioners, when this requirement came
into effect. Iribarren filed the initial usage report for the
hotel, which erroneously reported that all of the rooms in the
hotel were “residential” units.[
Footnote 2] The consequence of that initial classification
was that the City zoned the San Remo Hotel as “residential
hotel”—in other words, a hotel that consisted entirely of
residential units. And that zoning determination ultimately meant
that, despite the fact that the San Remo Hotel had operated in
practice as a tourist hotel for many years, 145 F. 3d, at 1100,
petitioners were required to apply for a conditional use permit to
do business officially as a “tourist hotel,” 27 Cal. 4th 643, 654,
41 P. 3d 87, 94 (2002).
After the HCO was revised in 1990, petitioners
applied to convert all of the rooms in the San Remo Hotel into
tourist use rooms under the relevant HCO provisions and requested a
conditional use permit under the applicable zoning laws. In 1993,
the City Planning Commission granted petitioners’ requested
conversion and conditional use permit, but only after imposing
several conditions, one of which included the requirement that
petitioners pay a $567,000 “in lieu” fee.[
Footnote 3] Petitioners appealed, arguing that the HCO
requirement was unconstitutional and otherwise improperly applied
to their hotel. See
id., at 656, 41 P. 3d, at 95. The
City Board of Supervisors rejected petitioners’ appeal on April 19,
1993.
In March 1993, Petitioners filed for a writ of
administrative mandamus in California Superior Court. That action
lay dormant for several years, and the parties ultimately agreed to
stay that action after petitioners filed for relief in Federal
District Court.
Petitioners filed in federal court for the
first time on May 4, 1993. Petitioners’ first amended complaint
alleged four counts of due process (substantive and procedural) and
takings (facial and as-applied)[
Footnote 4] violations under the Fifth and Fourteenth
Amendments to the United States Constitution, one count seeking
damages under Rev. Stat. §1979, 42 U. S. C. §1983, for those
violations, and one pendent state-law claim. The District Court
granted respondents summary judgment. As relevant to this action,
the court found that petitioners’ facial takings claim was untimely
under the applicable statute of limitations, and that the
as-applied takings claim was unripe under
Williamson
County, 473
U. S. 172.
On appeal to the Court of Appeals for the
Ninth Circuit, petitioners took the unusual position that the court
should not decide their federal claims, but instead should abstain
under
Railroad Comm’n of Tex. v.
Pullman Co.,
312 U. S. 496
(1941), because a return to state court could conceivably moot the
remaining federal questions. See App. 67–68; see also 145
F. 3d, at 1101. The Court of Appeals obliged petitioners’
request with respect to the facial challenge, a request that
respondents apparently viewed as an “outrageous act of chutzpah.”
Id., at 1105. That claim, the court reasoned, was “ripe
the instant the 1990 HCO was enacted,”
id., at 1102, and
appropriate for
Pullman abstention principally because
petitioners’ “entire case” hinged on the propriety of the planning
commission’s zoning designation—the precise subject of the pending
state mandamus action, 145 F. 3d, at 1105.[
Footnote 5] The court, however, affirmed the
District Court’s determination that petitioners’ as-applied takings
claim—the claim that the application of the HCO to the San Remo
Hotel violated the Takings Clause—was unripe. Because petitioners
had failed to pursue an inverse condemnation action in state court,
they had not yet been denied just compensation as contemplated by
Williamson County. 145 F. 3d, at 1105.
At the conclusion of the Ninth Circuit’s
opinion, the court appended a footnote stating that petitioners
would be free to raise their federal takings claims in the
California courts. If, however, they wanted to “retain [their]
right to return to federal court for adjudication of [their]
federal claim, [they] must make an appropriate reservation in state
court.”
Id., at 1106, n. 7 (citations omitted).[
Footnote 6] That is precisely what
petitioners attempted to do when they reactivated the dormant
California case. Yet petitioners advanced more than just the claims
on which the federal court had abstained, and phrased their state
claims in language that sounded in the rules and standards
established and refined by this Court’s takings jurisprudence.
Petitioners claimed, for instance, that “imposition of the fee
‘fails to substantially advance a legitimate government interest’
and that ‘[t]he amount of the fee imposed is not roughly
proportional to the impact’ of the proposed tourist use of the San
Remo Hotel.” 27 Cal. 4th, at 656, 41 P. 3d, at 95 (quoting
petitioners’ second amended state complaint).[
Footnote 7] The state trial
court dismissed petitioners’ amended complaint, but the
intermediate appellate court reversed. The court held that
petitioners’ claim that the payment of the “in lieu” fee effected a
taking should have been evaluated under heightened scrutiny. Under
more exacting scrutiny, the fee failed this Court’s “essential
nexus” and “rough proportionality” tests because,
inter
alia, it was based on the original flawed designation that the
San Remo Hotel was an entirely “residential use” facility. See
id., at 657–658, 41 P. 3d, at 96–97 (summarizing
appellate court opinion).
The California Supreme Court reversed over the
partial dissent of three justices.[
Footnote 8] The court initially noted that petitioners had
reserved their federal causes of action and had sought no relief
for any violation of the Federal Constitution.
Id., at
649, n. 1, 41 P. 3d, at 91, n. 1.[
Footnote 9] In the portion of its opinion
discussing the Takings Clause of the California Constitution,
however, the court noted that “we appear to have construed the
clauses congruently.”
Id., at 664, 41 P. 3d, at
100–101 (citing cases). Accordingly, despite the fact that
petitioners sought relief only under California law, the state
court decided to “analyze their takings claim under the relevant
decisions of both this court and the United States Supreme Court.”
Ibid., 41 P. 3d, at 101.[
Footnote 10]
The principal constitutional issue debated by
the parties was whether a heightened level of scrutiny applied to
the claim that the housing replacement fee “ ‘does not
substantially advance legitimate state interests.’ ”
Ibid. (quoting
Lucas v.
South Carolina
Coastal Council,
505 U. S. 1003, 1016
(1992)). In resolving that debate the court focused on our opinions
in
Nollan v.
California Coastal Comm’n,
483 U. S. 825 (1987), and
Dolan v.
City of Tigard,
512 U. S. 374 (1994). Rejecting
petitioners’ argument that heightened scrutiny should apply, the
court emphasized the distinction between discretionary exactions
imposed by executive officials on an ad hoc basis and
“ ‘generally applicable zoning regulations’ ” involving
“ ‘legislative determinations.’ ” 27 Cal. 4th, at
666–668, 41 P. 3d, at 102–104 (quoting,
e.g.,
Dolan, 512 U. S., at 385, 391, n. 8). The court situated
the HCO within the latter category, reasoning that the ordinance
relied upon fixed fees computed under a formula that is generally
applicable to broad classes of property owners.[
Footnote 11] The court concluded that the less
demanding “reasonable relationship” test should apply to the HCO’s
monetary assessments, 27 Cal. 4th, at 671, 41 P. 3d, at
105.
Applying the “reasonable relationship” test,
the court upheld the HCO on its face and as-applied to petitioners.
As to the facial challenge, the court concluded that the HCO’s
mandated conversion fees “bear a reasonable relationship to the
loss of housing . . . in the
generality or
great
majority of cases. . . .”
Id., at 673, 41 P. 3d,
at 107. With respect to petitioners’ as-applied challenge, the
court concluded that the conversion fee was reasonably based on the
number of units designated for conversion, which itself was based
on petitioners’ own estimate that had been provided to the City in
1981 and had remained unchallenged for years.
Id., at 678,
and n. 17, 41 P. 3d, at 110–111, and n. 17. The court
therefore reversed the appellate court and reinstated the trial
court’s order dismissing petitioners’ complaint.
Petitioners did not seek a writ of certiorari
from the California Supreme Court’s decision in this Court.
Instead, they returned to Federal District Court by filing an
amended complaint based on the complaint that they had filed prior
to invoking
Pullman abstention.[
Footnote 12] The District Court held that petitioners’
facial attack on the HCO was not only barred by the statute of
limitations, but also by the general rule of issue preclusion. See
Pet. for Cert. 85a–86a.[
Footnote
13] The District Court reasoned that 28 U. S. C. §1738
requires federal courts to give preclusive effect to any
state-court judgment that would have preclusive effect under the
laws of the State in which the judgment was rendered. Because
California courts had interpreted the relevant substantive state
takings law coextensively with federal law, petitioners’ federal
claims constituted the same claims that had already been resolved
in state court.
The Court of Appeals affirmed. The court
rejected petitioners’ contention that general preclusion principles
should be cast aside whenever plaintiffs “must litigate in state
court pursuant to
Pullman and/or
Williamson
County.” 364 F. 3d 1088, 1096 (CA9 2004). Relying on
unambiguous Circuit precedent and the absence of any clearly
contradictory decisions from this Court, the Court of Appeals found
itself bound to apply general issue preclusion doctrine. Given that
general issue preclusion principles governed, the only remaining
question was whether the District Court properly applied that
doctrine; the court concluded that it did. The court expressly
rejected petitioners’ contention “that California takings law is
not coextensive with federal takings law,”
id., at 1096,
and held that the state court’s application of the “reasonable
relationship” test was an “ ‘equivalent determination’ of such
claims under the federal takings clause,”
id., at
1098.[
Footnote 14] We
granted certiorari and now affirm.
II
Article IV, §1, of the United
States Constitution demands that “Full Faith and Credit shall be
given in each State to the public Acts, Records, and judicial
Proceedings of every other State. And the Congress may by general
Laws prescribe the Manner in which such Acts, Records and
Proceedings shall be proved, and the Effect thereof.” In 1790,
Congress responded to the Constitution’s invitation by enacting the
first version of the full faith and credit statute. See Act of May
26, 1790, ch. 11, 1 Stat. 122.[
Footnote 15] The modern version of the statute, 28 U.
S. C. §1738, provides that “judicial proceedings . . . shall
have the same full faith and credit in every court within the
United States and its Territories and Possessions as they have by
law or usage in the courts of such State … .” This statute has
long been understood to encompass the doctrines of res judicata, or
“claim preclusion,” and collateral estoppel, or “issue preclusion.”
See
Allen v.
McCurry,
449 U. S. 90, 94–96 (1980).[
Footnote 16]
The general rule implemented by
the full faith and credit statute—that parties should not be
permitted to relitigate issues that have been resolved by courts of
competent jurisdiction—predates the Republic.[
Footnote 17] It “has found its way into every
system of jurisprudence, not only from its obvious fitness and
propriety, but because without it, an end could never be put to
litigation.”
Hopkins v.
Lee, 6 Wheat. 109, 114
(1821). This Court has explained that the rule
“is demanded by the very object for which civil
courts have been established, which is to secure the peace and
repose of society by the settlement of matters capable of judicial
determination. Its enforcement is essential to the maintenance of
social order; for, the aid of judicial tribunals would not be
invoked for the vindication of rights of person and property, if,
as between parties and their privies, conclusiveness did not attend
the judgments of such tribunals in respect of all matters properly
put in issue and actually determined by them.”
Southern Pacific
R. Co. v.
United States,
168 U. S. 1, 49
(1897).
As this case is presented to us,
under our limited grant of certiorari, we have only one narrow
question to decide: whether we should create an exception to the
full faith and credit statute, and the ancient rule on which it is
based, in order to provide a federal forum for litigants who seek
to advance federal takings claims that are not ripe until the entry
of a final state judgment denying just compensation. See
Williamson County, 473
U. S. 172.[
Footnote
18]
The essence of petitioners’ argument is as
follows: because no claim that a state agency has violated the
federal Takings Clause can be heard in federal court until the
property owner has “been denied just compensation” through an
available state compensation procedure,
id., at 195,
“federal courts [should be] required to disregard the decision of
the state court” in order to ensure that federal takings claims can
be “considered on the merits in … federal court.” See Brief for
Petitioners 8, 14. Therefore, the argument goes, whenever
plaintiffs reserve their claims under
England v.
Louisiana Bd. of Medical Examiners,
375 U. S. 411 (1964), federal courts
should review the reserved federal claims
de novo,
regardless of what issues the state court may have decided or how
it may have decided them.
We reject petitioners’ contention. Although
petitioners were certainly entitled to reserve some of their
federal claims, as we shall explain,
England does not
support their erroneous expectation that their reservation would
fully negate the preclusive effect of the state-court judgment with
respect to any and all federal issues that might arise in the
future federal litigation. Federal courts, moreover, are not free
to disregard 28 U. S. C. §1738 simply to guarantee that all
takings plaintiffs can have their day in federal court. We turn
first to
England.
III
England involved a group
of plaintiffs who had graduated from chiropractic school, but
sought to practice in Louisiana without complying with the
educational requirements of the State’s Medical Practice Act. 375
U. S., at 412. They filed suit in federal court challenging the
constitutionality of the Act. The District Court invoked
Pullman abstention and stayed the proceedings to enable
the Louisiana courts to decide a preliminary and essential question
of state law—namely, whether the state statute applied at all to
chiropractors. 375 U. S., at 413.[
Footnote 19] The state court, however, reached beyond the
state-law question and held not only that the statute applied to
the plaintiffs but also that its application was consistent with
the Fourteenth Amendment to the Federal Constitution. The Federal
District Court then dismissed the federal action without addressing
the merits of the federal claim.
On appeal, we held that when a
federal court abstains from deciding a federal constitutional issue
to enable the state courts to address an antecedent state-law
issue, the plaintiff may reserve his right to return to federal
court for the disposition of his federal claims.
Id., at
419. In that case, the antecedent state issue requiring abstention
was
distinct from the reserved federal issue. See
id., at 418–419. Our discussion of the “typical case” in
which reservations of federal issues are appropriate makes clear
that our holding was limited to cases that are fundamentally
distinct from petitioners’. “Typical”
England cases
generally involve federal constitutional challenges to a state
statute that can be avoided if a state court construes the statute
in a particular manner.[
Footnote
20] In such cases, the purpose of abstention is not to afford
state courts an opportunity to adjudicate an issue that is
functionally identical to the federal question. To the contrary,
the purpose of
Pullman abstention in such cases is to
avoid resolving the federal question by encouraging a state-law
determination that may moot the federal controversy. See 375 U. S.,
at 416–417, and n. 7.[
Footnote 21] Additionally, our opinion made it perfectly
clear that the effective reservation of a federal claim was
dependent on the condition that plaintiffs take no action to
broaden the scope of the state court’s review beyond decision of
the antecedent state-law issue.[
Footnote 22]
Our holding in
England does not
support petitioners’ attempt to relitigate issues resolved by the
California courts. With respect to petitioners’ facial takings
claims, the Court of Appeals invoked
Pullman abstention
after determining that a ripe federal question existed—namely, “the
facial takings challenge to the 1990 HCO.” 145 F. 3d, at
1105.[
Footnote 23] It did so
because “ ‘land use planning is a sensitive area of social
policy’ ” and because petitioners’ pending state mandamus
action had the potential of mooting their facial challenge to the
HCO by overturning the City’s original classification of the San
Remo Hotel as a “residential” property.
Ibid. Thus,
petitioners were entitled to insulate from preclusive effect one
federal issue—their facial constitutional challenge to the
HCO—while they returned to state court to resolve their petition
for writ of mandate.
Petitioners, however, chose to advance broader
issues than the limited issues contained within their state
petition for writ of administrative mandamus on which the Ninth
Circuit relied when it invoked
Pullman abstention. In
their state action, petitioners advanced not only their request for
a writ of administrative mandate, 27 Cal. 4th, at 653, 41
P. 3d, at 93, but also their various claims that the HCO was
unconstitutional on its face and as applied for (1) its failure to
substantially advance a legitimate interest, (2) its lack of a
nexus between the required fees and the ultimate objectives sought
to be achieved via the ordinance, and (3) its imposition of an
undue economic burden on individual property owners.
Id.,
at 672–676, 41 P. 3d, at 106–109. By broadening their state
action beyond the mandamus petition to include their “substantially
advances” claims, petitioners effectively asked the state court to
resolve the same federal issues they asked it to reserve.
England does not support the exercise of any such
right.
Petitioners’ as-applied takings claims fare no
better. As an initial matter, the Court of Appeals did not abstain
with respect to those claims. Instead, the court found that they
were unripe under
Williamson County. The court therefore
affirmed the district court’s dismissal of those claims. 145
F. 3d, at 1106. Unlike their “substantially advances” claims,
petitioners’ as-applied claims were never properly before the
District Court, and there was no reason to expect that they could
be relitigated in full if advanced in the state proceedings. See
Allen, 449 U. S., at 101, n. 17. In short, our
opinion in
England does not support petitioners’ attempt
to circumvent §1738.
IV
Petitioners’ ultimate submission,
however, does not rely on
England alone. Rather, they
argue that federal courts simply should not apply ordinary
preclusion rules to state-court judgments when a case is forced
into state court by the ripeness rule of
Williamson
County. For support, petitioners rely on the Court of Appeals
for the Second Circuit’s decision in
Santini, 342
F. 3d, at 130.
In
Santini, the Second
Circuit held that parties “who litigate state-law takings claims in
state court involuntarily” pursuant to
Williamson County
cannot be precluded from having those very claims resolved “by a
federal court.” 342 F. 3d, at 130. The court did not rest its
decision on any provision of the federal full faith and credit
statute or our cases construing that law. Instead, the court
reasoned that “[i]t would be both ironic and unfair if the very
procedure that the Supreme Court required [plaintiffs] to follow
before bringing a Fifth Amendment takings claim . . . also
precluded [them] from ever bringing a Fifth Amendment takings
claim.”
Ibid. We find this reasoning unpersuasive for
several reasons.
First, both petitioners and
Santini
ultimately depend on an assumption that plaintiffs have a right to
vindicate their federal claims in a federal forum. We have
repeatedly held, to the contrary, that issues actually decided in
valid state-court judgments may well deprive plaintiffs of the
“right” to have their federal claims relitigated in federal court.
See,
e.g., Migra v.
Warren City School Dist.
Bd. of Ed.,
465 U. S. 75, 84 (1984);
Allen, 449 U. S., at 103–104. This is so even when the
plaintiff would have preferred not to litigate in state court, but
was required to do so by statute or prudential rules. See
id., at 104. The relevant question in such cases is not
whether the plaintiff has been afforded access to a federal forum;
rather, the question is whether the state court actually decided an
issue of fact or law that was necessary to its judgment.
In
Allen, the plaintiff, Willie
McCurry, invoked the Fourth and Fourteenth Amendments in an
unsuccessful attempt to suppress evidence in a state criminal
trial. After he was convicted, he sought to remedy his alleged
constitutional violation by bringing a suit for damages under 42 U.
S. C. §1983 against the officers who had entered his home. Relying
on “ ‘the special role of federal courts in protecting civil
rights’ ” and the fact that §1983 provided the “only route to
a federal forum,” the court of appeals held that McCurry was
entitled to a federal trial unencumbered by collateral estoppel.
449 U. S., at 93. We rejected that argument emphatically.
“The actual basis of the Court of Appeals’ holding
appears to be a generally framed principle that every person
asserting a federal right is entitled to one unencumbered
opportunity to litigate that right in a federal district court,
regardless of the legal posture in which the federal claim arises.
But the authority for this principle is difficult to discern. It
cannot lie in the Constitution, which makes no such guarantee, but
leaves the scope of the jurisdiction of the federal district courts
to the wisdom of Congress. And no such authority is to be found in
§1983 itself . . . . There is, in short, no reason to believe that
Congress intended to provide a person claiming a federal right an
unrestricted opportunity to relitigate an issue already decided in
state court simply because the issue arose in a state proceeding in
which he would rather not have been engaged at all.”
Id.,
at 103–104.[
Footnote 24]
As in
Allen, we are
presently concerned only with issues
actually decided by
the state court that are dispositive of federal claims raised under
§1983. And, also as in
Allen, it is clear that petitioners
would have preferred not to have been forced to have their federal
claims resolved by issues decided in state court. Unfortunately for
petitioners, it is entirely
unclear why their preference
for a federal forum should matter for constitutional or statutory
purposes.
The only distinction between this case and
Allen that is possibly relevant is the fact that
petitioners here originally invoked the jurisdiction of a Federal
District Court, which abstained on
Pullman grounds while
petitioners returned to state court. But petitioners’ as-applied
takings claims were never properly before the District Court
because they were unripe. And, as we have already explained, the
Court of Appeals invoked
Pullman abstention only with
respect to petitioners’ “substantially advances” takings challenge,
which petitioners then gratuitously presented to the state court.
At a bare minimum, with respect to the facial takings claim,
petitioners were “in an offensive posture in [their] state court
proceeding, and could have proceeded first in federal court had
[they] wanted to litigate [their “substantially advances”] federal
claim in a federal forum.”
Migra, 465 U. S., at 85,
n. 7. Thus, the only distinction between this case and
Allen is a distinction of no relevant significance.
The second reason we find petitioners’
argument unpersuasive is that it assumes that courts may simply
create exceptions to 28 U. S. C. §1738 wherever courts deem
them appropriate. Even conceding,
arguendo, the laudable
policy goal of making federal forums available to deserving
litigants, we have expressly rejected petitioners’ view. “Such a
fundamental departure from traditional rules of preclusion, enacted
into federal law, can be justified only if plainly stated by
Congress.”
Kremer v.
Chemical Constr. Corp.,
456 U. S. 461,
485 (1982). Our cases have therefore made plain that “an exception
to §1738 will not be recognized unless a later statute contains an
express or implied partial repeal.”
Id., at 468 (citing
Allen, 449 U. S., at 99). Even when the plaintiff’s resort
to state court is involuntary and the federal interest in denying
finality is robust, we have held that Congress “must ‘clearly
manifest’ its intent to depart from §1738.” 456 U. S., at 477.
The same concerns animate our decision here.
Congress has not expressed any intent to exempt from the full faith
and credit statute federal takings claims. Consequently, we apply
our normal assumption that the weighty interests in finality and
comity trump the interest in giving losing litigants access to an
additional appellate tribunal. As we explained in
Federated
Department Stores, Inc. v.
Moitie,
452 U. S. 394, 401
(1981),
“we do not see the grave injustice which would be
done by the application of accepted principles of res judicata.
‘Simple justice’ is achieved when a complex body of law developed
over a period of years is evenhandedly applied. The doctrine of res
judicata serves vital public interests beyond any individual
judge’s ad hoc determination of the equities in a particular
case. There is simply ‘no principle of law or equity which
sanctions the rejection by a federal court of the salutary
principle of
res judicata’ ” (quoting
Heiser
v.
Woodruff,
327 U. S. 726, 733
(1946)).
Third, petitioners have
overstated the reach of
Williamson County throughout this
litigation. Petitioners were never required to ripen the heart of
their complaint—the claim that the HCO was facially invalid because
it failed to substantially advance a legitimate state interest—in
state court. See
Yee v.
Escondido, 503 U. S. 519, 534 (1992). Petitioners
therefore could have raised most of their facial takings
challenges, which by their nature requested relief distinct from
the provision of “just compensation,” directly in federal
court.[
Footnote 25]
Alternatively, petitioners had the option of reserving their facial
claims while pursuing their as-applied claims along with their
petition for writ of administrative mandamus. Petitioners did not
have the right, however, to seek state review of the same
substantive issues they sought to reserve. The purpose of the
England reservation is not to grant plaintiffs a second
bite at the apple in their forum of choice.
With respect to those federal claims that did
require ripening, we reject petitioners’ contention that
Williamson County forbids plaintiffs from advancing their
federal claims in state courts. The requirement that aggrieved
property owners must seek “compensation through the procedures the
State has provided for doing so,” 473 U. S., at 194, does not
preclude state courts from hearing simultaneously a plaintiff’s
request for compensation under state law and the claim that, in the
alternative, the denial of compensation would violate the Fifth
Amendment of the Federal Constitution. Reading
Williamson
County to preclude plaintiffs from raising such claims in the
alternative would erroneously interpret our cases as requiring
property owners to “resort to piecemeal litigation or otherwise
unfair procedures.”
MacDonald, Sommer & Frates v.
Yolo County,
477 U. S. 340, 350, n. 7
(1986).
It is hardly a radical notion to recognize
that, as a practical matter, a significant number of plaintiffs
will necessarily litigate their federal takings claims in state
courts. It was settled well before
Williamson County that
“a claim that the application of government regulations effects a
taking of a property interest is not ripe until the government
entity charged with implementing the regulations has reached a
final decision regarding the application of the regulations to the
property at issue.” 473 U. S., at 186. As a consequence, there is
scant precedent for the litigation in federal district court of
claims that a state agency has taken property in violation of the
Fifth Amendment’s takings clause. To the contrary, most of the
cases in our takings jurisprudence, including nearly all of the
cases on which petitioners rely, came to us on writs of certiorari
from state courts of last resort.[
Footnote 26]
Moreover, this is not the only area of law in
which we have recognized limits to plaintiffs’ ability to press
their federal claims in federal courts. See,
e.g.,
Fair Assessment in Real Estate Assn., Inc. v.
McNary,
454
U. S. 100, 116 (1981) (holding that taxpayers are “barred by
the principle of comity from asserting §1983 actions against the
validity of state tax systems in federal courts”). State courts are
fully competent to adjudicate constitutional challenges to local
land-use decisions. Indeed, state courts undoubtedly have more
experience than federal courts do in resolving the complex factual,
technical, and legal questions related to zoning and land-use
regulations.
At base, petitioners’ claim amounts to little
more than the concern that it is unfair to give preclusive effect
to state-court proceedings that are not chosen, but are instead
required in order to ripen federal takings claims.
Whatever the merits of that concern may be, we are not free to
disregard the full faith and credit statute solely to preserve the
availability of a federal forum. The Court of Appeals was correct
to decline petitioners’ invitation to ignore the requirements of 28
U. S. C. §1738. The judgment of the Court of Appeals is
therefore affirmed.
It is so ordered
Footnote 1
Although petitioners asked this Court to
review two separate questions, our grant of certiorari was limited
exclusively to the question whether “a Fifth Amendment Takings
claim [is] barred by issue preclusion based on a judgment denying
compensation solely under state law, which was rendered in a state
court proceeding that was required to ripen the federal Takings
claim?” Pet. for Cert. i. Thus, we have no occasion to reach
petitioners’ claim that, under California law, the substantive
state takings law decision of the California Supreme Court was not
entitled to preclusive effect in federal court. See Brief for
Petitioners 19–21.
Footnote 2
It seems that despite this initial
classification, the San Remo Hotel has operated as a mixed hotel
for tourists and long-term residents since long before the HCO was
enacted. According to the California Supreme Court, in “a 1992
declaration by [petitioners], Iribarren filed the ‘incorrect’
initial unit usage report without their knowledge. They first
discovered the report in 1983 when they resumed operation of the
hotel. They protested the residential use classification in 1987,
but were told it could not be changed because the appeal period had
passed.” 27 Cal. 4th 643, 654, 41 P. 3d 87, 94
(2002).
Footnote 3
The application specifically required
petitioners (1) to pay for 40 percent of the cost of replacement
housing for the 62 lost residential units; (2) to offer lifetime
leases to any then-current residential users; and (3) to “obtain
variances from floor-area ratio and parking requirements.”
Id., at 656, 41 P. 3d, at 95.
Footnote 4
Specifically, count 3 alleged that the HCO
was facially unconstitutional under the Takings Clause because it
“fails to substantially advance legitimate government interests,
deprives plaintiffs of the opportunity to earn a fair return on its
investment, denies plaintiffs economically viable use of their
property, and forces plaintiffs to bear the public burden of
housing the poor, all without just compensation.” First Amended and
Supplemental Complaint, No. C–93–1644–DLJ (D. Cal., Jan. 24, 1994),
p. 20, ¶49. Count 4, which advanced petitioners’ as-applied
Takings Clause violation, was predicated on the same rationale.
Id., at 21.
Footnote 5
The Court of Appeals did not answer the
question whether this claim was barred by the statute of
limitations, as the District Court had held.
Footnote 6
The reservation discussed in the Ninth
Circuit’s opinion was the common reservation of federal claims made
in state litigation under
England v.
Louisiana Bd. of
Medical Examiners,
375 U. S. 411, 420–421 (1964).
Footnote 7
With respect to claims that a regulation
fails to advance a legitimate state interest, see generally
Lingle v.
Chevron U. S. A. Inc.,
544 U. S.em>. ___, (2005) (slip op., at 6–15). With respect to
“rough proportionality” claims, see generally
Nollan v.
California Coastal Comm’n,
483 U. S. 825 (1987);
Dolan
v.
City of Tigard,
512 U. S. 374 (1994).
Footnote 8
Justice Baxter and Justice Chin opined that
because some hotel rooms had been previously rented to tourists,
the “in lieu” payment was excessive. 27 Cal. 4th, at 691, 41
P. 3d, at 119–120. Justice Brown opined that a 1985 statute
had effectively superseded the HCO and disagreed with the
majority’s analysis of the constitutional issues.
Id., at
699, 700–704, 41 P. 3d, at 125–128.
Footnote 9
“Plaintiffs sought no relief in state court
for violation of the Fifth Amendment to the United States
Constitution. They explicitly reserved their federal causes of
action. As their petition for writ of mandate, as well, rests
solely on state law, no federal question has been presented or
decided in this case.”
Ibid.
Footnote 10
See also id., at 665, 41 P. 3d,
at 101 (“[I]t is the last mentioned prong of the
high court’s
takings analysis that is at issue here” (emphasis added)).
Footnote 11
See
id., at 669, 41 P. 3d, at
104 (noting that the “HCO is generally applicable legislation in
that it applies, without discretion or discrimination, to every
residential hotel in the city” and that “no meaningful government
discretion enters into either the imposition or the calculation of
the in lieu fee”). The court noted that the general class of
property owners included more than 500 properties containing over
18,000 rooms,
id., at 669, n. 12, 41 P. 3d, at 104,
n. 12, and concluded that the HCO “applies to all property in the
class logically subject to its strictures, that is, to all
residential hotel units; no more can rationally be demanded of
local land use legislation in order to qualify for deferential
review,”
id., at 669, 41 P. 3d, at 104.
Footnote 12
The third amended complaint, which was filed
on November 14, 2002, alleged two separate counts. See App. 88–93.
Count 1 alleged that the HCO was facially unconstitutional and
unconstitutional as-applied to petitioners because (a) it failed
“to substantially advance legitimate government interests”; (b) it
forced petitioners “to bear the public burden of housing the poor”;
and (c) it imposed unreasonable conditions on petitioners’ request
for a conditional use permit (the in lieu fee and the required
lifetime leases to residential tenants).
Id., at 88–89.
Count 2 sought relief under 42 U. S. C. §1983 based on (a)
extortion through the imposition of the $567,000 fee; (b) an actual
taking of property under
Penn Central Transp. Co. v.
New York City,
438 U. S. 104 (1978);
(c) the failure of the HCO as applied to petitioners to advance
legitimate state interests; (d) the City’s requirement that
petitioners bear the full cost of providing a general public
benefit (public housing) without just compensation.
Footnote 13
The District Court found that most of
petitioners’ as-applied claims amounted to nothing more than
improperly labeled facial challenges. See Pet. for Cert. 82a–85a.
The remainder of petitioners’ as-applied claims, the court held,
was barred by the statute of limitations.
Id., at
84a–85a.
Footnote 14
California courts apply issue preclusion to a
final judgment in earlier litigation between the same parties if
“(1) the issue decided in the prior case is identical with the one
now presented; (2) there was a final judgment on the merits in the
prior case, and (3) the party to be estopped was a party to the
prior adjudication.” 364 F. 3d 1088, 1096 (CA9 2004)
.
The court reasoned that the California Supreme Court’s decision
satisfied those criteria because petitioners’ takings challenges
“raised in state court are identical to the federal claims . . .
and are based on the same factual allegations.”
Ibid. Our
limited review in this case does not include the question whether
the Court of Appeals’ reading of California preclusion law was in
error.
Footnote 15
“This statute has existed in essentially
unchanged form since its enactment just after the ratification of
the Constitution … .”
Allen v.
McCurry,
449 U. S. 90, 96, n. 8 (1980).
Footnote 16
“Under res judicata, a final judgment on the
merits of an action precludes the parties or their privies from
relitigating issues that were or could have been raised in that
action. Under collateral estoppel, once a court has decided an
issue of fact or law necessary to its judgment, that decision may
preclude relitigation of the issue in a suit on a different cause
of action involving a party to the first case.”
Id., at 94
(citations omitted).
Footnote 17
“The authority of the
res judicata,
with the limitations under which it is admitted, is derived by us
from the Roman law and the Canonists.”
Washington, Alexandria,
& Georgetown Steam-Packet Co. v.
Sickles, 24 How.
333, 341 (1861); see also
id., at 343 (noting that the
rule also has its pedigree “[i]n the courts upon the continent of
Europe, and in the courts of chancery and admiralty in the United
States and Great Britain, where the function of adjudication is
performed entire by a tribunal composed of one or more judges . .
.”).
Footnote 18
We did not grant certiorari on many of the
issues discussed by the parties and
amici. We therefore
assume for purposes of our decision that all other issues in this
protracted controversy have been correctly decided. We assume, for
instance, that the Ninth Circuit properly interpreted California
preclusion law; that the California Supreme Court was correct in
its determination that California takings law is coextensive with
federal law; that, as a matter of California law, the HCO was
lawfully applied to petitioners’ hotel; and that under California
law, the “in lieu” fee was imposed evenhandedly and substantially
advanced legitimate state interests.
Footnote 19
We stressed in
England that
abstention was essential to prevent the district court from
deciding “ ‘questions of constitutionality on the basis of
preliminary guesses regarding local law.’ ” 375 U. S., at 416,
n. 7 (quoting
Spector Motor Service, Inc. v.
McLaughlin,
323 U. S. 101, 105
(1944)).
Footnote 20
375 U. S., at 420 (describing the “typical
case” as one in which “the state courts are asked to construe a
state statute against the backdrop of a federal constitutional
challenge”).
Footnote 21
As we explained in
Allen, 449 U. S.,
at 101–102, n. 17, “[t]he holding in
England depended
entirely on this Court’s view of the purpose of abstention in such
a case: Where a plaintiff
properly invokes federal-court
jurisdiction in the first instance on a federal claim, the federal
court has a duty to accept that jurisdiction. Abstention may serve
only to postpone, rather than to abdicate, jurisdiction, since its
purpose is to determine whether resolution of the federal question
is even necessary, or to obviate the risk of a federal court’s
erroneous construction of state law.” (Emphasis added and citations
omitted.)
Footnote 22
375 U. S., at 419 (“[I]f a party freely and
without reservation submits his federal claims for decision by the
state courts, litigates them there, and has them decided there,
then . . . he has elected to forgo his right to return to the
District Court”).
Footnote 23
Petitioners’ facial challenges to the HCO
were ripe, of course, under
Yee v.
Escondido,
503 U. S. 519, 534 (1992), in which we
held that facial challenges based on the “substantially advances”
test need not be ripened in state court—the claims do “not depend
on the extent to which petitioners are deprived of the economic use
of their particular pieces of property or the extent to which these
particular petitioners are compensated.”
Ibid.
Footnote 24
We expressed similar views in
Migra
v.
Warren City School Dist. Bd. of Ed., 465 U. S. 75, 84 (1984):
“Although such a division may seem attractive from a plaintiff’s
perspective, it is not the system established by §1738. That
statute embodies the view that it is more important to give full
faith and credit to state-court judgments than to ensure separate
forums for federal and state claims. This reflects a variety of
concerns, including notions of comity, the need to prevent
vexatious litigation, and a desire to conserve judicial
resources.”
Footnote 25
In all events, petitioners may no longer
advance such claims given our recent holding that the
“ ‘substantially advances’ formula is not a valid takings
test, and indeed . . . has no proper place in our takings
jurisprudence.”
Lingle, 544 U. S., at ___ (slip op., at
18).
Footnote 26
See,
e.g., Dolan, 512 U.
S., at 383;
Yee, 503 U. S., at 526;
Nollan, 483
U. S., at 830;
First English Evangelical Lutheran Church of
Glendale v.
County of Los Angeles,
482 U. S. 304, 310–311
(1987);
Penn Central, 438 U. S., at 120–122. Indeed,
Justice Holmes’ famous “too far” formulation, which spawned our
regulatory takings jurisprudence, was announced in a case that came
to this Court via a writ of certiorari to Pennsylvania’s highest
court.
Pennsylvania Coal Co. v.
Mahon, 260 U. S. 393, 415
(1922).
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