Associated Builders & Contractors Western Penn v. Community College of Allegheny
Citation81 F.4th 279
Date Filed2023-08-29
Docket22-2030
Cited32 times
StatusPublished
Full Opinion (html_with_citations)
PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
______________
No. 22-2030
______________
ASSOCIATED BUILDERS & CONTRACTORS
WESTERN PENNSYLVANIA;
ARROW ELECTRIC INC.; HAMPTON MECHANICAL
INC.; LAWRENCE
PLUMBING, LLC; R.A. GLANCY & SONS INC.;
WESTMORELAND ELECTRIC
SERVICES LLC; GREGORY H. OLIVER, JR.; DANIEL
VINCENT GLANCY;
ROBERT L. CASTEEL; JASON PHILLIP BOYD; ROBERT
A. GLANCY, IV,
Appellants
v.
COMMUNITY COLLEGE OF ALLEGHENY COUNTY;
QUINTIN B. BULLOCK
in his official capacity as President of the Community College
of
Allegheny County; PITTSBURGH REGIONAL BUILDING
TRADES COUNCIL
______________
No. 22-2031
______________
ASSOCIATED BUILDERS & CONTRACTORS
WESTERN PENNSYLVANIA;
HAMPTON MECHANICAL INC.; LAWRENCE
PLUMBING LLC; R.A. GLANCY
& SONS INC. as individuals and on behalf of others similarly
situated; ROBERT L. CASTEEL; ANTHONY SCARPINE
as individuals
and on behalf of others similarly situated,
Appellants
v.
PLUM BOROUGH; PITTSBURGH REGIONAL
BUILDING TRADES COUNCIL
_____________
On Appeal from the United States District Court
for the Western District of Pennsylvania
(D.C. Nos. 2-20-cv-00649 & 2-20-cv-01933)
District Judge: Honorable W. Scott Hardy
______________
Argued on June 14, 2023
Before: PORTER, FREEMAN and FISHER, Circuit Judges.
______________
(Filed: August 29, 2023)
Jonathan F. Mitchell ARGUED
111 Congress Avenue, Suite 400
2
Austin, TX 78701
Walter S. Zimolong, III
Zimolong
P.O. Box 552
Villanova, PA 19085
Counsel for Appellants
F. Timothy Grieco
Gerard Hornby
Eckert Seamans Cherin & Mellott
600 Grant Street
44th Floor, US Steel Tower
Pittsburgh, PA 15219
Counsel for Appellees Community College of Allegheny
County and Quintin B. Bullock
Lucas R.J. Aubrey
Jacob J. Demree
Jonathan D. Newman ARGUED
Sherman Dunn
900 7th Street NW
Suite 1000
Washington, DC 20001
Joshua M. Bloom
Joshua M. Bloom & Associates
2201 Liberty Avenue
Suite 204
Pittsburgh, PA 15222
Counsel for Appellee Pittsburgh Regional Building
Trades Council
3
Bruce E. Dice
Bruce E. Dice & Associates
787 Pine Valley Drive
Suite E
Pittsburgh, PA 15239
Counsel for Appellee Borough of Plum
______________
OPINION OF THE COURT
______________
FISHER, Circuit Judge.
Collective-bargaining tools help unions influence labor
practices and protect workersâ rights. One such tool, the project
labor agreement, is at the center of these consolidated cases. A
project labor agreement is a collective-bargaining agreement
between a project owner, contractors, and unions that sets the
terms and conditions of employment for a particular
construction project. The terms can include things like
recognizing a union as the workersâ exclusive bargaining
representative and paying the workers union wagesâeven if
they are not union members.
Associated Builders & Contractors, some of its
members, and several non-union employees are suing the
Community College of Allegheny County and Plum Borough,
among other defendants, for using project labor agreements.
Plaintiffs claim the project labor agreements violate the First
and Fourteenth Amendments, the National Labor Relations
Act, the Sherman Act, and Pennsylvaniaâs competitive-bidding
laws for government projects. The District Court dismissed
Plaintiffsâ federal claims on the merits and declined to exercise
supplemental jurisdiction over their state law claims. While we
4
agree the complaints do not survive dismissal, we base our
conclusion on Plaintiffsâ lack of standing.
The Community College of Allegheny County and
Plum Borough each entered into a project labor agreement
(PLA) with the Pittsburgh Regional Building and Construction
Trades Council. The terms of the two PLAs are essentially
identical. Each requires âall construction workâ covered by the
agreement to be âcontracted exclusivelyâ to contractors who
agree to the PLAâs terms. App. 122, 162. Contractors may
award contracts or subcontracts on PLA-covered projects to
entities that do not have an agreement with the relevant union,
so long as the entity abides by the terms of the PLA. The PLA
âapplies exclusivelyâ to the project specified therein. App. 122,
162. The Community College PLA defines a project as each
âbid proposal,â App. 122, while the Borough PLA defines a
project as âthe onsite construction of the new borough
building,â App. 162.
Contractors who work on these projects must
ârecognize[] the Unions as the sole and exclusive bargaining
representative of all craft employees within their respective
jurisdictions working on the Project under the Agreement.â
App. 126; see also App. 170. Contractors must use local union
job referral systems (known as union hiring halls) to staff the
projects. 1 Even so, contractors retain the right to determine the
1
There are two exceptions to this requirement: (1) if the
local union does not have a job referral system, the contractor
may hire from any other source after giving the union forty-
eight hours to refer an employee; and (2) contractors may hire
a certain number of ââcoreâ employees.â App. 128, 172.
5
competency of all employees and to reject union hall referrals.
Additionally, contractors must pay employees âthe prevailing
[union] wage and benefit ratesâ as well as âpay all required
contributionsâ to the employee benefit funds that cover things
like pensions, health care, and vacation. 2 App. 132; see also
App. 181.
The PLAs contain various non-discrimination clauses.
One clause states that no employee is required to join a union
or pay agency fees or dues âas a condition of being employed,
or remaining employed, on the Project.â App. 127; see also
App. 172. Another requires the union hiring halls to operate in
a ânon-discriminatory manner and in full compliance with
Federal, State, and Local laws.â App. 127; see also App. 170.
Yet another requires the PLA terms to be applied without
regard to race, religion, or union membership status.
A group of plaintiffs sued, in two separate cases,
challenging the PLAs under federal and state law. Because
each âplaintiff generally must assert his own legal rights and
interests, and cannot rest his claim to relief on the legal rights
or interests of third parties,â Valley Forge Christian Coll. v.
Ams. United for Separation of Church & State, Inc., 454 U.S.
464, 474 (1982) (citation omitted), knowing the particular
parties involved is essential to the analysis that follows. In the
Community College case, Plaintiffs are: Associated Builders
& Contractors of Western Pennsylvania (ABC), an
However, contractors are not required to contribute to
2
employee benefit funds on behalf of âcore employees unless
any core employee voluntarily elects to join and become a
member of any local union signatoryâ to the PLA. App. 132,
182.
6
organization of contractors whose members are almost all non-
union; a group of ABC members who are non-union
contractors; several of these contractorsâ non-union
employees; and two Allegheny County taxpayers. The
Defendants are the Community College of Allegheny County;
its President; and the Trades Council. In the Borough case,
which is brought as a class action, Plaintiffs are: ABC; a group
of ABC members who are non-union contractors; and two of
these contractorsâ non-union employees, who are also Plum
Borough taxpayers. The Defendants are Plum Borough and the
Trades Council.
In both cases, Plaintiffs bring 42 U.S.C. § 1983claims based on alleged violations of the First and Fourteenth Amendments and the National Labor Relations Act,29 U.S.C. §§ 157
& 158. In violation of the First Amendment, Plaintiffs
allege the PLAs force employees to join or associate with
unions and force contractors to recognize and financially
support unions. Under the NLRA, they allege employees are
prohibited from working on PLA-covered projects unless they
join a union or use the hiring halls, and contractors are
improperly forced to recognize unions as the representatives of
their non-union employees. Plaintiffs also assert Sherman Act
claims. Specifically, they allege the PLAs restrain competition
in two ways: by disqualifying contractors from projects unless
they hire through the hiring halls, recognize the relevant union
as their employeesâ exclusive representative, and contribute to
the relevant unionâs pension and health-care funds; and by
excluding employees from projects unless they join unions or
participate in the hiring halls. Finally, Plaintiffs allege the
PLAs violate Pennsylvaniaâs competitive-bidding laws by
discriminating against non-union contractors and contractors
whose employees are represented by a union that does not
belong to the Trades Council. Plaintiffs seek declaratory and
7
injunctive relief, as well as damages (in the Borough case) and
costs and attorneysâ fees.
In January 2021, the District Court consolidated the
Community College and Borough cases. Defendants moved to
dismiss for lack of jurisdiction, Fed. R. Civ. P. 12(b)(1), and
failure to state a claim, Fed. R. Civ. P. 12(b)(6). Plaintiffs
opposed the motion and submitted declarations from almost all
of the contractor plaintiffs. The declarations stated that the
contractors did not and âwill not bidâ on the Community
Collegeâs and the Boroughâs PLA-covered projects, but that
they are ready and able to bid on future projects should the
PLAs be removed. App. 196, 199, 202, 205. The declarations
also detailed prior solicitations for bids by the Community
College and the Borough related to PLA-covered projects. The
District Court granted in part Defendantsâ 12(b)(1) motion and
granted their 12(b)(6) motion on all claims.
On standing, the Court assessed each group of
Plaintiffsâ eligibility to seek retrospective and prospective
relief in general rather than as to each claim. Beginning with
the contractors, the Court seems to have based its injury-in-fact
analysis on their lost opportunities to bid on PLA-covered
public projects. It held that the contractor plaintiffs in the
Community College case who submitted declarations
established standing for retrospective and prospective reliefâ
but one contractor who did not submit a declaration, Arrow
Electric, Inc., failed to allege sufficient facts to substantiate
standing. 3 As to the contractor plaintiffs in the Borough case,
the Court held all had standing to seek retrospective relief
3
Had Plaintiffs not submitted the contractorsâ
declarations along with their complaints, the District Court
reasoned, they would not have alleged sufficient facts to
substantiate standing in either case.
8
based on their declarations. However, none had standing to
seek prospective relief: the Borough PLA, which Plaintiffs
attached to their complaint, did not threaten future injury
because it only applied to onsite construction for âthe new
borough building,â bids for which had already been solicited.
App. 162.
As to the employee plaintiffs, the Court based its injury-
in-fact analysis on their âinconvenience[]â of having to obtain
work through the union hiring halls, App. 34, as well as their
âdecreased work opportunities,â App. 36. It held the
employees had standing coextensive with the contractor
plaintiffs (their employers) as to the latter injury because the
employees relied exclusively on the contractorsâ declarations
to substantiate standing. 4
Finally, the Court held ABCâs standing was coextensive
with the contractor plaintiffs because an organizationâs
standing depends on the standing of its members.
On the merits, the Court dismissed all claims. It rejected
Plaintiffsâ First Amendment claims, both facial and as-applied.
Facially, the PLAs did not compel union membership because
they expressly prohibited discrimination against non-union
members. And absent additional facts about how unions
discriminate, Plaintiffsâ as-applied challenge failed. The Court
dismissed Plaintiffsâ NLRA claims on the ground that states do
not commit unfair labor practices when they act as market
4
The District Court concluded that the employees could
not rely on an alleged âinconvenienceâ injury to substantiate
standing to seek past or future relief because they failed to
âsubmit[] additional factsâ to show they had suffered or will
suffer that particular harm. App. 37 n.7. By contrast, the Court
reasoned that the employeesâ harm by way of decreased job
opportunities was evidenced by the contractorsâ declarations.
9
participants, so long as they do so to advance proprietary
interests. The Court dismissed Plaintiffsâ federal antitrust
claims for failure to allege sufficient facts, including the type
of claim, its elements, and the relevant market. And, finally,
the Court dismissed Plaintiffsâ state law claims because no
federal claims remained in the case. Plaintiffs appeal.
5
Plaintiffsâ appeal involves both jurisdictional and merits
issues. We have plenary review over the jurisdictional ones, all
of which relate to standing in some way. Weichsel v. JP
Morgan Chase Bank, N.A., 65 F.4th 105, 110 n.6 (3d Cir. 2023). We review de novo a district courtâs grant of a motion to dismiss. Diamond v. Pa. State Educ. Assân,972 F.3d 262
, 269 (3d Cir. 2020). And we review for an abuse of discretion a district courtâs decision to decline supplemental jurisdiction. United States v. Omnicare, Inc.,903 F.3d 78, 94
(3d Cir. 2018).
âThis case begins and ends with standing.â Carney v.
Adams, 141 S. Ct. 493, 498(2020). That is because â[u]nder Article III, a case or controversy can exist only if a plaintiff has standing to sue.â United States v. Texas,143 S. Ct. 1964
, 1969
(2023); see U.S. Const. art. III, § 2 (âjudicial Power shall
extendâ to âCasesâ and âControversiesâ). This is âa bedrock
constitutional requirement,â Texas, 143 S. Ct. at 1969, that
âpreserves the âtripartite structureâ of our Federal
Government,â prevents the judiciary from intruding on other
5
The District Court had jurisdiction over both cases
under 28 U.S.C. §§ 1331, 1343, and 1367. We have jurisdiction under28 U.S.C. § 1291
.
10
branchesâ domains, and ensures plaintiffs are justified in
invoking federal courtsâ remedial power, see Town of Chester
v. Laroe Ests., Inc., 581 U.S. 433, 438(2017) (quoting Spokeo, Inc. v. Robins,578 U.S. 330, 337
(2016)).
To establish Article III standing, a plaintiff bears the
burden of showing three âirreducibleâ elements. In re Schering
Plough Corp. Intron/Temodar Consumer Class Action, 678
F.3d 235, 244(3d Cir. 2012) (quoting Lujan v. Defs. of Wildlife,504 U.S. 555, 560
(1992)). He âmust have (1) suffered an injury in fact, (2) that is fairly traceable to the challenged conduct of the defendant, and (3) that is likely to be redressed by a favorable judicial decision.â Spokeo,578 U.S. at 338
. Standing âis not dispensed in gross.â Davis v. Fed. Election Commân,554 U.S. 724, 734
(2008) (quoting Lewis v. Casey,518 U.S. 343
, 358 n.6 (1996)). Rather, a ââplaintiff must demonstrate standing for each claim he seeks to pressâ and âfor each form of reliefâ that is sought.âId.
(quoting DaimlerChrysler Corp. v. Cuno,547 U.S. 332, 352
(2006)).
The District Court analyzed each group of Plaintiffsâ
standing to seek prospective and retrospective relief in the case
in toto, rather than analyzing standing for each claim. 6 In doing
so, the Court seems to have assumed that an injury based on
âdecreased work opportunitiesâ fully satisfied Article IIIâs
standing requirements. App. 36. On appeal, Defendants contest
Plaintiffsâ standing to bring a First Amendment claim by
arguing that lost job opportunities are not a concrete and
6
We agree with the District Court that ABCâs standing,
as an organization, rises or falls with the standing of its
members, the contractor plaintiffs. See Hunt v. Wash. State
Apple Advert. Commân, 432 U.S. 333, 342â43 (1977). Thus,
we focus our analysis on the contractorsâ and employeesâ
standing.
11
particularized injury to a legally protected First Amendment
interest. Plaintiffs disagree, arguing that their alleged factual
injury need not be tied to the legally protected interest at stake
so long as they allege some factual injury.
Although Defendantsâ standing challenge is limited to
one claim, standing is an issue of âsubject matter jurisdiction
[that] cannot be waivedâ or âforfeited.â See Burton v. Schamp,
25 F.4th 198, 207 (3d Cir. 2022). We âhave an independent obligation to determine whether subject-matter jurisdiction exists, even in the absence of a challenge from any party.â Hartig Drug Co. Inc. v. Senju Pharm. Co.,836 F.3d 261, 267
(3d Cir. 2016) (quoting Arbaugh v. Y & H Corp.,546 U.S. 500, 514
(2006)). And upon our review of the matter, we conclude
that Plaintiffs fail to allege Article III standing, namely an
injury in fact, on all claims.
An injury in fact is âan invasion of a legally protected
interest which is (a) concrete and particularized and (b) actual
or imminent, not conjectural or hypothetical.â In re Schering
Plough, 678 F.3d at 244(citation omitted). To be concrete, an injury must be ââreal,â and not âabstract.ââ Spokeo,578 U.S. at 340
(citation omitted). In other words, the asserted harm must have a close relationship to âa harm traditionally recognized as providing a basis for a lawsuit in American courts.â TransUnion LLC v. Ramirez,141 S. Ct. 2190, 2200
(2021). These harms include physical and monetary harms, as well as â[v]arious intangible harmsâ such as reputational harms, disclosure of private information, intrusion upon seclusion, and, as relevant here, âharms specified by the Constitution itself.âId. at 2204
. An injury is particular when it is personal to the plaintiff. Seeid. at 2203
. Injury to some third party or society at large will not do. See United States v. Richardson,418 U.S. 166
, 171â72 (1974).
12
We take up Plaintiffsâ argument first, which is contrary
to the law on Article III standing. Plaintiffs contend they need
only allege âsome factual injuryâ rather than a First
Amendment injury to bring a First Amendment claim. Reply
3. They are wrong. Standing depends on an injury to a legally
protected interest. Lujan, 504 U.S. at 560â61. While Plaintiffs
are right that the size of the injury is irrelevant, whatever mere
âtrifleâ is alleged, Reply 1 (quoting United States v. Students
Challenging Regul. Agency Procs. (SCRAP), 412 U.S. 669, 689 n.14 (1973)), must still be legally cognizable. For that reason, standing âoften turns on the nature and source of the claim asserted,â whether it be statutory, constitutional, or otherwise. Warth v. Seldin,422 U.S. 490, 500
(1975); see also Adarand Constructors, Inc. v. Pena,515 U.S. 200, 211
(1995) (âAdarandâs claim that the Governmentâs use of subcontractor compensation clauses denies it equal protection of the laws of course alleges an invasion of a legally protected interest . . . .â); cf. Blum v. Yaretsky,457 U.S. 991, 993
, 1000â
02 (1982) (holding plaintiffs claiming denial of Medicaid
benefits had standing to challenge deprivation of property right
without due process of law).
Plaintiffsâ citations to various standing cases are
unhelpful because they deal with the more difficult issue of
when a violation of the Administrative Procedure Act inflicts
a sufficiently concrete injury. See SCRAP, 412 U.S. at 685& n.12; Assân of Data Processing Serv. Orgs., Inc. v. Camp,397 U.S. 150
, 153â54 (1970). In APA (and other statutory violation) cases, certain harms can be alleged in combination with a mere procedural harm to demonstrate a concrete injury. See Camp, 397 U.S. at 153â54 (legal interest protected by the APA reflects ââaesthetic, conservational, and recreationalâ as well as economic valuesâ (citation omitted)); see also Summers v. Earth Island Inst.,555 U.S. 488, 496
(2009) (mere
13
procedural deprivation âis insufficient to create Article III
standingâ). In contrast to mere procedural harms, when a
plaintiff asserts a constitutional claim, he is alleging a
constitutional harm. Thus, we say a plaintiff has standing to
bring a First Amendment claim when he suffers injury to his
legally protected First Amendment interestâe.g., when the
state forces him to speak, see W. Va. State Bd. of Educ. v.
Barnette, 319 U.S. 624, 642(1943), or associate, see Boy Scouts of Am. v. Dale,530 U.S. 640, 661
(2000).
Defendants are equally off base in arguing that
Plaintiffs fail Article IIIâs concrete and particularized
requirements. First, because Plaintiffs allege an injury to
themselves, not someone else, there is no particularity issue.
Second, while Defendants are correct that job losses, in and of
themselves, are not an injury to a legally protected First
Amendment interest, their argument is largely beside the point.
True, Plaintiffs do not point to a common law action, statute,
or constitutional right guaranteeing them a job. But Defendants
ignore that, in bringing their First Amendment-based claim,
Plaintiffs plead an injury to their right to associate. Though
Plaintiffsâ association injury may be âintangible,â it is no less
concrete when it is âspecified by the Constitution itself.â See
TransUnion LLC, 141 S. Ct. at 2204. Thus, Plaintiffs, no doubt,
have alleged a concrete injury by alleging a harm to their
legally protected First Amendment interest to freely associate.
Plaintiffs allege the contractors are forced to ârecognize a
unionâ as the exclusive representative of their employees, âhire
employees from a unionâs job-referral system[],â and
financially âcontribute toâ unions in order to work on PLA-
covered public projects, despite the contractorsâ commitment
to a âfree enterprise systemâ and âMerit Shop philosophyâ that
the lowest responsible bidder should be awarded a contract.
App. 109â10; see also App. 144â45. Meanwhile, the
14
employees are forced to, at worst, join unions or, at best,
associate with unions via hiring halls to work on PLA-covered
public projects, despite their desire to not associate with or join
union ranks.
Plaintiffsâ other claims, which allege injury to statutory
rights under the NLRA, Sherman Act, and state competitive-
bidding laws, are also sufficiently concrete. âCongressâs
creation of a statutory prohibition or obligation and a cause of
action does not relieve courts of their responsibility to
independently decide whether a plaintiff has suffered a
concrete harm under Article III . . . .â TransUnion LLC, 141 S.
Ct. at 2205. But statutory violations that cause some âphysical, monetary, or cognizable intangible harmâ will satisfy courts that the plaintiff has been âconcretely harmed by a defendantâs statutory violation.âId.
at 2205â06. The contractors and employees assert more than a âbare procedural violation.â Spokeo,578 U.S. at 341
. They allege a âtangible, economic harmâ: decreased work opportunities. See Cottrell v. Alcon Labâys,874 F.3d 154, 167
(3d Cir. 2017). That is enough to
satisfy Article IIIâs concreteness requirement when it comes to
Plaintiffsâ claims premised on statutory violations.
Concreteness and particularity, however, are but two of
the requirements under Article III. Plaintiffsâ concrete injuries
must also be actual or imminent. See Lujan, 504 U.S. at 564n.2 (requiring injury to be certainly impending, ânot too speculativeâ); see also Moose Lodge No. 107 v. Irvis,407 U.S. 163, 167
(1972) (denying standing to plaintiff challenging discriminatory membership policies because âhe never sought to become a memberâ). âTo be âimminent,â either a threat of injury must be âcertainly impending,â or there must at least be âa substantial risk that the harm will occur.ââ Natâl Shooting Sports Found. v. Attây Gen. of N.J., --- F.4th ----,2023 WL 5286171
, at *2 (3d Cir. 2023) (quoting Susan B. Anthony List
15
v. Driehaus, 573 U.S. 149, 158 (2014)). But when the
contractors declare they never have and never will bid on PLA-
covered projects, they plead themselves out of court by
admitting they never experienced and never will experience a
compelled association or economic harm. The employees fare
no better. To the extent the contractorsâ declarations are a
proxy for determining the actuality or imminence of harms to
their employees, the contractors clearly tell us they have not
and will not bid on PLA-covered projects. Thus, as far as we
can tell, neither will the employees be subjected to the terms of
the PLAs by way of being employed by bid-winning
contractors. Even more, as the District Court rightly noted, the
employees plead no facts, beyond what can be gleaned from
the contractorsâ declarations, that they desire to, actually did,
or intend to work on PLA-covered public projects.
The mere fact that the contractors claim they are âable
and readyâ to bid or work on PLA-covered public projects does
not cure their failure to bid in the past and admitted refusal to
bid in the future. App. 196, 199, 202, 205. Rather an actual bid,
when it is not futile, would have sustained an actual injury,
while an intent to bid is the proxy we may use for assuming an
injury is imminent. See, e.g., Adarand Constructors, 515 U.S.
at 211(concluding contractorâs injury was âactualâ related to contract it bid on and lost, and âimminentâ related to future contracts because contractor âmade an adequate showing that sometime in the relatively near future it will bid on another Government contract that offers financial incentives to a prime contractor for hiring disadvantaged subcontractorsâ); see also ZF Meritor, LLC v. Eaton Corp.,696 F.3d 254, 302
(3d Cir. 2012) (holding plaintiff who âexpressed no concrete desireâ to âreenter the marketâ lacked standing to seek prospective relief on antitrust claim); Ellison v. Am. Bd. of Orthopaedic Surgery,11 F.4th 200, 207
(3d Cir. 2021) (âa statement of intent to take
16
future action must reflect a concrete intent to do so
imminentlyâ). According to the allegations in the complaints
and the declarations accompanying them, we have neither. 7
7
Nor is this an instance in which Plaintiffs seek a
declaratory judgment (or other prospective relief) in lieu of
pursuing âarguably illegal activity.â MedImmune, Inc. v.
Genentech, Inc., 549 U.S. 118, 129(2007) (quoting Steffel v. Thompson,415 U.S. 452, 480
(1974) (Rehnquist, J., concurring)). It is well established that â[w]e do not force people seeking to exercise their constitutional rights to wait until they areâ sanctioned for doing so. Natâl Shooting Sports Found., --- F.4th ----,2023 WL 5286171
, at *2. Thus, sometimes a litigant is able to establish Article III standing to challenge a law or regulationâeven before it is actually enforced against himâwhen âthe threat of enforcement is imminent.âId.
But unlike litigants in the past who have successfully maintained standing in pre-enforcement actions, here, Plaintiffs do not allege how their conduct or lack thereof will trigger some legal penalty, civil or criminal, or a threat of administrative action. See, e.g., 303 Creative LLC v. Elenis,143 S. Ct. 2298
, 2308â10, 2312 (2023) (plaintiffâs alleged constitutionally protected behavior would trigger âa variety of penalties,â such as fines, cease-and-desist orders, mandatory educational programs, and ongoing compliance reporting measures); Fed. Election Commân v. Ted Cruz for Senate,142 S. Ct. 1638
, 1648â50 (2022) (plaintiffâs alleged constitutionally protected behavior would trigger administrative enforcement of a loan-repayment limitation); Associated Builders & Contractors Inc. N.J. Chapter v. City of Jersey City,836 F.3d 412
, 414â16 & n.2 (3d Cir. 2016)
(involving a challenge to enforcement of an ordinance that
compelled private developers bidding on certain projects to
17
And without an actual or imminent injury, evidenced by a past
bid or an intent to make a future bid, we cannot distinguish
Plaintiffs âfrom a person with a mere interestâ in stopping the
Community Collegeâs and the Boroughâs use of PLAs on
public projects. See SCRAP, 412 U.S. at 689 n.14. Therefore,
we conclude Plaintiffs lack Article III standing to maintain
their claims in federal court. 8
Though we agree with the District Court that Plaintiffsâ
complaints should be dismissed, we reach that conclusion
based on jurisdictional rather than substantive defects in
Plaintiffsâ allegations. The District Court dismissed Plaintiffsâ
federal claims with prejudice after reviewing each of them
under Federal Rule of Civil Procedure 12(b)(6) and upon
Plaintiffsâ failure to file amended complaints. 9 However, âa
enter into PLAs where violation of PLA risked loss of tax
abatement privileges and increased real estate tax
assessments); Bldg. & Constr. Trades Council of Metro. Dist.
v. Associated Builders & Contractors of Mass./R.I., Inc., 507
U.S. 218, 222â23 & n.1 (1993) (involving a challenge to a
preferred bid specification promulgated by a government
agency that required âsuccessful bidder[s]â to abide by
collective-bargaining agreement (citation omitted)).
8
Because Plaintiffs lack standing for failure to allege an
actual or imminent injury, we do not address the merits of their
claims. And it follows that if all Plaintiffs lack an Article III
injury in fact, we need not opine on Arrow Electricâs standing
in particular or the District Courtâs decision to not apply the
one-plaintiff rule.
9
The District Court dismissed Plaintiffsâ state law
claims without prejudice to their ability to bring those claims
18
dismissal for lack of subject matter jurisdiction is not an
adjudication on the merits and thus should be ordered âwithout
prejudice.ââ Figueroa v. Buccaneer Hotel Inc., 188 F.3d 172,
182(3d Cir. 1999). Because we conclude Plaintiffs lack standing rather than fail to state a claim, we are unable to affirm the District Courtâs dismissal with prejudice of Plaintiffsâ federal claims. Instead, we will vacate the District Courtâs dismissal with prejudice and remand with instructions to dismiss the federal claims without prejudice pursuant to Federal Rule of Civil Procedure 12(b)(1). See Ellison,11 F.4th at 210
.
âArticle III standing is ânot merely a troublesome hurdle
to be overcome if possible so as to reach the merits of a lawsuit
which a party desires to have adjudicated; it is a part of the
basic charter promulgated by the Framers of the Constitution
at Philadelphia in 1787.ââ Texas, 143 S. Ct. at 1969 (quoting
Valley Forge Christian Coll., 454 U.S. at 476). Bound by the limits of our constitutionally endowed power, we conclude dismissal without prejudice is appropriate because Plaintiffs lack standing. Thus, we will vacate and remand with instructions for the District Court to dismiss the federal claims without prejudice, and we will affirm the dismissal of the state law claims. in state court. Because we agree that the federal claims fail, the District Court did not abuse its discretion in dismissing the state law claims without prejudice. See28 U.S.C. § 1367
(c)(3)
(permitting a district court to âdecline to exercise supplemental
jurisdiction over a claimâ if it âdismissed all claims over which
it has original jurisdictionâ).
19