Jody Lutter v. Jneso
Citation86 F.4th 111
Date Filed2023-11-06
Docket21-2205
Cited31 times
StatusPublished
Full Opinion (html_with_citations)
PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
____________
No. 21-2205
____________
JODY LUTTER,
Appellant
v.
JNESO, an incorporated employees labor organization;
COUNTY OF ESSEX; PHIL MURPHY, in his official
capacity as Governor of New Jersey; GURBIR S. GREWAL,
in his official capacity as Attorney General of New Jersey;
JOEL M. WEISBLATT; PAUL BOUDREAU; PAULA B.
VOOS; JOHN BONANNI; DAVID JONES; PASQUALE V.
PAPERO, in their official capacities as members of the New
Jersey Public Employment Relations Commission
____________
On Appeal from the United States District Court
for the District of New Jersey
(D.C. No. 1-19-cv-13478)
District Judge: Honorable Renée M. Bumb
____________
Argued: May 25, 2022
Before: KRAUSE, BIBAS, and PHIPPS, Circuit Judges.
(Filed: November 6, 2023)
____________
Patrick J. Wright [Argued]
MACKINAC CENTER LEGAL FOUNDATION
140 West Main Street
Midland, MI 48640
Matthew C. Moench
KING MOENCH & COLLINS
51 Gibraltar Drive
Suite 2F
Moore Plains, NJ 07950
Counsel for Appellant
Seth Ptasiewicz [Argued]
KROLL HEINEMAN PTASIEWICZ & PARSONS
91 Fieldcrest Avenue
Suite 35
Edison, NJ 08837
Counsel for Appellee JNESO
Alan Ruddy
OFFICE OF COUNTY COUNSEL
COUNTY OF ESSEX
465 Martin Luther King Boulevard
Hall of Records, Room 535
Newark, NJ 07102
Counsel for Appellee County of Essex
2
Angela Cai [Argued]
Ryan J. Silver
OFFICE OF ATTORNEY GENERAL OF NEW JERSEY
25 Market Street
Richard J. Hughes Justice Complex
P.O. Box 112
Trenton, NJ 08625
Caroline G. Jones
OFFICE OF ATTORNEY GENERAL OF NEW JERSEY
DIVISION OF LAW
25 Market Street
Hughes Justice Complex
Trenton, NJ 08625
Counsel for Appellees Governor Phil Murphy and
Attorney General Gurbir S. Grewal
Christine R. Lucarelli
PUBLIC EMPLOYMENT RELATIONS COMMISSION
495 West State Street
P.O. Box 429
Trenton, NJ 08625
Counsel for Appellees Joel M. Weisblatt, Paul
Boudreau, Paula B. Voos, John Bonanni, Pasquale V.
Papero, and David Jones
__________
OPINION OF THE COURT
__________
PHIPPS, Circuit Judge.
In late June 2018, the Supreme Court held that public-
sector unions could not charge fees from non-union employees
to fund collective bargaining efforts, as those unions were
3
previously able to do in New Jersey. Shortly afterwards, a
nurse at a county hospital in New Jersey requested in writing
to resign from the public-sector union that represented her and
to have her employer cease deducting union dues from her
paycheck so that she would pay neither dues nor fees. But a
state statute established an annual ten-day period during which
public-sector employees could revoke a prior authorization for
payroll deductions of union dues. And that ten-day period for
the nurse expired in early June, before the Supreme Courtâs
decision. On that basis, her request to cease payroll deductions
was denied, and the county deducted union dues from her
paycheck for the next ten months. Once her annual ten-day
revocation window reopened, the nurse resubmitted her
request, and the county ceased payroll deductions of union
dues.
Within a week of her second request, the nurse filed this
suit against the union, the county, and several state officials
under 42 U.S.C. § 1983. She claimed that delaying her ability
to stop paying union dues violated her First Amendment right
by compelling her to subsidize union speech. For relief, the
nurse requested damages from the union to compensate her for
the payroll deductions of her union dues. In addition to seeking
attorneyâs fees and costs, she sought among other things, an
order enjoining future deductions of union dues from her
paycheck and a declaratory judgment that the state statute was
unconstitutional.
About nine months later, in March 2020, the union sent her
a check in the amount of the deducted union dues plus interest.
By then, the nurse was no longer a member of the union, and
she did not cash or deposit that check. But the union, along
with other defendants, used her receipt of that check along with
her resignation from the union as grounds for requesting
dismissal of the suit as moot â an outcome that would eliminate
their exposure to liability for attorneyâs fees. The defendants
also argued for dismissal on other grounds, including the
nurseâs lack of Article III standing. The District Court granted
4
those motions and dismissed the case through two separate
orders.
The nurse has now appealed, and on de novo review, the
check she received after her resignation from the union did not
moot her damages claims against the union. But the nurse â as
a non-union member no longer subject to payroll deductions of
union dues â lacks standing for her claims against the other
parties and for her additional requests for relief against the
union. Accordingly, we will affirm the District Courtâs orders
in part, vacate them in part, and remand the damages claim
against the union to the District Court for resolution.
FACTUAL BACKGROUND (AS ALLEGED IN THE PLEADINGS)
On May 31, 2011, Jody Lutter began her employment with
Essex County, New Jersey, as a nurse at the Essex County
Hospital. She worked in a position within a bargaining unit
represented by JNESO, a labor union.
At that time, under Abood v. Detroit Board of Education,
431 U.S. 209(1977), a public-sector union could charge fees from non-union members whom the union represented in collective bargaining without offending the First Amendmentâs prohibition on the compelled subsidization of speech.Id.
at 235â36. And under a New Jersey statute, public- sector unions could deduct a ârepresentation feeâ from the wages of non-union employees whom it represented.N.J. Stat. Ann. §§ 34
:13A-5.5 to -5.6 (West 2011). The money collected by a representation fee, also referred to as an âagency fee,â could not be used for political advocacy, see Abood, 431 U.S. at 235â36, and the statute capped such fees at 85% of regular union membership dues, fees, and assessments,N.J. Stat. Ann. § 34
:13A-5.5(b). JNESOâs collective bargaining agreement
with Essex County authorized the collection of agency fees
from its non-union employees.
Thus, when Lutter began working for Essex County in
2011, she had to contribute to JNESO, and she had two options
5
for doing so. She could join JNESO and pay full dues. Or she
could not join JNESO and pay a portion of those dues as an
agency fee. Lutter chose the former: she joined JNESO and
authorized payroll deductions of her union dues within a month
of her start date.
Six years later, in September 2017, the Supreme Court
granted a petition for certiorari to reconsider Abood and the
constitutionality of agency fees. See Janus v. Am. Fedân,
582 U.S. 966 (2017) (mem.) (granting petition for certiorari).
That issue, if resolved against the rule of Abood, had the
potential to significantly decrease the revenues of public-sector
unions because employees, by resigning from the union, could
avoid paying not only union dues but also agency fees.
With the looming possibility that the Supreme Court in
Janus would overrule Abood and by so doing prompt a
membership exodus from public-sector unions, the New Jersey
Legislature enacted the Workplace Democracy Enhancement
Act (the âWDEAâ). Under that statute, which became effective
on May 18, 2018, a union member could revoke an
authorization for payroll deductions only during the ten days
following the anniversary of that memberâs employment start
date. See 2018 N.J. Sess. Law Serv. Ch. 15 (West) (codified
at N.J. Stat. Ann. § 52:14-15.9e (West Supp. 2021) (amended 2022)). If a union member provided notice to his or her employer within that ten-day window, then the employer had to notify the union within five days and cease payroll deductions of union dues within thirty days of the employeeâs anniversary date. Seeid.
By contrast, the version of the statute in effect when Lutter joined JNESO allowed union members to give a notice of revocation at any time, and that notice would take effect the following January 1 or July 1, whichever came sooner. SeeN.J. Stat. Ann. § 52:14-15
.9e (West 2011)
(amended 2018, 2022).
A little over a month after the WDEAâs enactment, the
Supreme Court, on June 27, 2018, decided Janus. It
6
overturned Abood and held that the First Amendment prohibits
public-sector unions from collecting agency fees from
nonmembers without their clear and affirmative consent.
Janus v. Am. Fedân of State, Cnty., & Mun. Emps., Council 31,
138 S. Ct. 2448, 2486 (2018).
By operation of the WDEA, however, Lutter could not
immediately avail herself of the flexibility that Janus afforded.
Instead, because her May 31 anniversary date had passed less
than a month beforehand, she would have to wait nearly a year
to be eligible to revoke her authorization for the payroll
deductions of her union dues. And even after that notice, those
union dues could still be deducted from her paycheck for thirty
days after her anniversary date.
Lutter attempted to avoid that expensive wait. In a letter
dated July 12, 2018, to Essex County, with a copy to JNESO,
she requested that the payroll deductions of her union dues
cease and she announced her resignation from JNESO. In an
email response, Essex County stated that Lutter could not
revoke her authorization for the payroll deductions of her union
dues for nearly a year â until June 2019, during the next ten-
day period permitted by the WDEA. True to its stated position,
Essex County deducted union dues from Lutterâs paycheck for
the next ten months.
On June 1, 2019, as soon as her ten-day revocation window
under the WDEA re-opened, Lutter sent a letter to Essex
County, with a copy to JNESO, indicating that she wanted the
payroll deductions of union dues to cease. Her next paycheck,
dated June 14, 2019, which covered the two-week pay period
beginning on May 25 and ending on June 7, did not have any
union dues deducted.
PROCEDURAL HISTORY
On June 6, 2019, within a week of sending her second letter,
Lutter filed this lawsuit under 42 U.S.C. § 1983 in District
Court. As revised by a pleading labeled as an âamended
7
complaint,â filed on February 28, 2020, Lutter sued JNESO
and Essex County along with several state officials in their
official capacities: the Governor, the Attorney General, and
members of the New Jersey Public Employment Relations
Commission. Her first count asserted that through their
compliance with the WDEA, those defendants violated her
First Amendment right against the compelled subsidization of
speech by preventing her from immediately resigning from
JNESO following Janus. In her second count, Lutter argued
that her prior authorization for payroll deductions lost its
consensual character after Janus held that agency fees are
illegal, and thus the post-Janus deductions of union dues from
her paycheck similarly transgressed the protections of the First
Amendment.
In her prayer, Lutter sought several forms of relief. She
requested compensatory damages from JNESO for the union
dues that were deducted from her paycheck for the ten months
after her attempted resignation on July 12, 2018.1 She also
sought an order enjoining JNESO from collecting further dues
from her and preventing the New Jersey officials from
enforcing the WDEA. In addition, she sought declaratory
judgments that (i) the WDEA is void and unenforceable and
(ii) members of public-sector unions have a constitutional right
1
In her second complaint, Lutter seeks a refund of union dues
deducted from her paychecks, and that request could be
interpreted as seeking compensatory damages or specific
performance. But Lutter does not seek the return of âspecific
currency or coins,â Bowen v. Massachusetts, 487 U.S. 879, 919 n.3 (1988) (Scalia, J., dissenting), and in her briefing, Lutter makes clear that she seeks compensatory damages and thus her request is most reasonably construed as a request for damages. Seeid.
at 918â19 (âAlmost invariably, however, suits seeking
(whether by judgment, injunction, or declaration) to compel
the defendant to pay a sum of money to the plaintiff are suits
for âmoney damages,â as that phrase has traditionally been
applied . . . .â).
8
to resign from the union and cease paying union dues at any
time. Lutter sought the ancillary relief of attorneyâs fees and
costs, see 42 U.S.C. § 1988(b), and she included a request for all other relief deemed just, proper, and equitable. As a case implicating federal questions and her civil rights, Lutterâs action was putatively within the District Courtâs original subject-matter jurisdiction. See28 U.S.C. §§ 1331
(federal-
question jurisdiction), 1343 (jurisdiction over cases involving
the deprivation of the rights or privileges of United States
citizens).
Shortly after Lutter filed her second complaint, JNESO
attempted to refund the dues that she had requested. In
correspondence sent to Lutterâs counsel on March 12, 2020,
JNESOâs attorney enclosed a check in the amount of
$1,209.58. The accompanying letter explained that JNESO
was not âseeking any conditions or promises from Ms. Lutter,â
and that â[t]he check is sent to refund the dues that were
deducted from [her paychecks] after she declared her desire to
resign from membership in JNESO, along with an amount to
reflect accrued interest.â Letter from Seth Ptasiewicz, Counsel
for JNESO, Kroll, Heineman, Carton, to Matthew C. Moench,
Counsel for Jody Lutter, King, Moench, Hirniak & Mehta, LLP
(Mar. 12, 2020) (JA85). Lutter did not cash the check
promptly â or ever.
JNESO then relied on that correspondence and Lutterâs
resignation from the union in moving to dismiss Lutterâs
second complaint. Based on those developments, JNESO
asserted that Lutterâs claims for compensatory damages were
moot. Also, because Lutter was not a member of JNESO when
she filed her second complaint, JNESO argued that she lacked
9
Article III standing for her requests for injunctive and
declaratory relief.2
In subsequent filings, the other defendants joined JNESOâs
mootness argument. Essex County gave notice that it agreed
with JNESO that the case was moot. In their separate motion
to dismiss, the members of the Public Employment Relations
Commission argued that Lutterâs case should be dismissed on
mootness grounds as well.3 Although they initially responded
to Lutterâs second complaint by filing an answer, the Governor
and Attorney General later filed a brief supporting JNESOâs
mootness and standing arguments.
Through two separate rulings, the District Court dismissed
all of Lutterâs claims. It concluded that by providing the check
to Lutter, JNESO mooted her damages claim. It also dismissed
her requests for injunctive relief because by the time of her
second complaint, she had resigned from the union. After
receiving supplemental briefing, the District Court further
dismissed Lutterâs requests for declaratory relief because, as a
non-union employee, she lacked Article III standing to litigate
whether the WDEA is unconstitutional and whether a member
of a public-sector union has a constitutional right to
immediately resign from the union. Lutter timely appealed,
2
In the alternative, JNESO argued that Lutterâs claims failed
to state a claim for relief because Janus did not invalidate
previous valid authorizations of payroll deductions of union
dues and because JNESO was not a state actor subject to suit
under § 1983.
3
The members of the Commission also argued for a lack of
subject-matter jurisdiction due to Eleventh Amendment
immunity. In addition, they moved in the alternative to dismiss
for failure to state a claim for relief on the grounds that Janus
applied only to non-union employees who paid agency fees and
that the Commission did not enforce or administer the WDEA.
10
bringing her suit within this Courtâs appellate jurisdiction. See
28 U.S.C. § 1291; Fed. R. App. P. 4(a)(1)(A).
During the pendency of this appeal, on January 18, 2022,
New Jersey enacted the Responsible Collective Negotiations
Act. That legislation eliminated the WDEAâs ten-day window
for a public-sector union member to revoke a prior
authorization for the payroll deductions of union dues. See
2021 N.J. Sess. Law Serv. Ch. 411, at 6 (West) (codified at N.J.
Stat. Ann. § 52:14-15.9e). Under that statutory revision, an employee, like Lutter, who had authorized the payroll deductions of union dues before the WDEAâs effective date, could revoke that authorization âin accordance with the law in effect at the time of [her] initial authorization of payroll deduction[s]â or within the terms set forth by that authorization.Id.
If that law had been in place at the time of
the Janus decision, then Lutter could have revoked her
authorization for the payroll deductions of union dues at any
time.
DISCUSSION
On appeal, the lines of argument mirror those presented in
the District Court. Lutter asserts that her claims and requests
for damages, injunctions, and declaratory judgments are
justiciable. The defendants dispute Lutterâs standing to seek
injunctive and declaratory relief, and they argue that her claim
for damages has been mooted by JNESOâs presentment of the
check to Lutterâs counsel.4
4
In addition to the justiciability challenges, the defendants
argue that the District Courtâs ruling can be affirmed on other
grounds. JNESO contends that Lutter fails to state a claim for
relief for two reasons: Janus did not invalidate her previous
authorization of the payroll deductions of union dues and
JNESO is not a state actor. The members of the Commission
argue that the dismissal of the claims against them may be
11
A. Article III Standing
In partial effectuation of the Preamble, which announced
the intention to âestablish Justice,â Article III of the
Constitution creates and defines the judicial power of the
United States. U.S. Const. pmbl.; id.art. III. One limitation on that power is its applicability to only certain types of cases and controversies. Article III identifies, by subject matter, three categories of cases that are within the federal judicial power, and it specifies, by the parties thereto, six categories of controversies subject to the federal judicial power.Id.
art. III, § 2. Beyond those limitations based on subject matter and party, the terms âcasesâ and âcontroversiesâ themselves have meaning. See Valley Forge Christian Coll. v. Ams. United for Separation of Church & State, Inc.,454 U.S. 464, 471
(1982) (âThe constitutional power of federal courts cannot be defined, and indeed has no substance, without reference to the necessity âto adjudge the legal rights of litigants in actual controversies.ââ (quoting Liverpool S.S. Co. v. Commârs of Emigration,113 U.S. 33, 39
(1885))).5 They require genuine upheld due to Eleventh Amendment immunity. The Governor and the Attorney General point out that Lutterâs constitutional challenges depend on the ten-day revocation window in the WDEA, which has not been construed by any court, and they advocate for certification of those issues related to the WDEA to the New Jersey Supreme Court. See N.J. R. App. Prac. 2:12A-1 (âThe Supreme Court may answer a question of law certified to it by the United States Court of Appeals for the Third Circuit, if the answer may be determinative of an issue in litigation pending in the Third Circuit and there is no controlling appellate decision, constitutional provision, or statute in this State.â). 5 As originally understood, âcasesâ was the broader term, encompassing civil and criminal lawsuits, while âcontroversiesâ referred only to civil suits. See Aetna Life Ins. Co. of Hartford v. Haworth,300 U.S. 227, 239
(1937) (âThe
12
adversity among at least two parties to the litigation,6 and they
prevent advisory opinions.7 If the judicial power were to
extend beyond cases and controversies, then federal courts
would exceed âthe traditional role of Anglo-American courts,â
Summers v. Earth Island Inst., 555 U.S. 488, 492(2009), and they could encroach on the powers of the other two Branches â to say nothing of their potential to impermissibly interfere with States and the people, see Clapper v. Amnesty Intâl, USA,568 U.S. 398, 408
(2013); Allen v. Wright,468 U.S. 737, 752
(1984). The doctrine of Article III standing represents an additional limitation on the federal judicial power derived from the case- term âcontroversies,â if distinguishable at all from âcases,â is so in that it is less comprehensive than the latter, and includes only suits of a civil nature.â (quotation and citation omitted)); Chisholm v. Georgia,2 U.S. (2 Dall.) 419
, 431â32 (1793) (opinion of Iredell, J., dissenting); see also Cass R. Sunstein, Whatâs Standing After Lujan? Of Citizen Suits, âInjuries,â and Article III,91 Mich. L. Rev. 163
, 168 (1992) (âIn the original understanding, âcasesâ included both civil and criminal disputes, whereas âcontroversiesâ were limited to civil disputes.â). 6 See United States v. Johnson,319 U.S. 302, 305
(1943) (dismissing a case on jurisdictional grounds due to the absence of a genuine adversary issue between the parties); see also GTE v. Sylvania, Inc. v. Consumers Union of the U.S., Inc.,445 U.S. 375
, 382â83 (1980). 7 See Flast v. Cohen,392 U.S. 83, 96
(1968) (â[T]he oldest and most consistent thread in the federal law of justiciability is that the federal courts will not give advisory opinions.â (citing C. Wright, Law of Federal Courts 34 (1963)); Muskrat v. United States,219 U.S. 346, 354
(1911) (describing the Supreme
Courtâs refusal in 1793 to advise President George Washington
on issues of foreign affairs during the war between France and
England).
13
or-controversy requirement. See Spokeo, Inc. v. Robins,
578 U.S. 330, 340 (2016) (recognizing that âthe doctrine of standing derives from the case-or-controversy requirementâ); Lujan v. Defs. of Wildlife,504 U.S. 555, 560
(1992) (â[T]he core component of standing is an essential and unchanging part of the case-or-controversy requirement of Article III.â). At the pleading stage, to have Article III standing, a litigant invoking the power of a federal court must plausibly allege (i) an injury- in-fact (ii) that is fairly traceable to the conduct of the party sued, and (iii) that is judicially redressable. See Spokeo, 578 U.S. at 338; Lujan, 504 U.S. at 560â61; see also Lutz v. Portfolio Recovery Assocs., LLC,49 F.4th 323
, 327â28 (3d Cir. 2022) (summarizing the plausibility pleading standard). Such a party must meet those requirements âfor each claim that [it] press[es] and for each form of relief that [it] seek[s].â TransUnion LLC v. Ramirez,141 S. Ct. 2190, 2208
(2021) (citing Davis v. Fed. Election Commân,554 U.S. 724, 734
(2008)); Lewis v. Casey,518 U.S. 343
, 358 n.6 (1996)
(â[S]tanding is not dispensed in gross.â).
As far as timing, the general rule is that a plaintiff in federal
court must have Article III standing on the date the lawsuit was
commenced. See Davis, 554 U.S. at 734(â[T]he standing inquiry remains focused on whether the party invoking jurisdiction had the requisite stake in the outcome when the suit was filed.â). But under Rule 15, the complaint initiating the lawsuit may later be amended and supplemented. See Fed. R. Civ. P. 15(a), (d).8 An amendment revises the allegations, 8 Although parties and courts often refer to any revision to a pleading as an âamendment,â that is a potential misnomer because the text of Rule 15 treats amendment and supplementation differently. Compare Fed. R. Civ. P. 15(a), with id. 15(d); see Wilcox v. Miller,691 F.2d 739
, 740 n.1 (5th
Cir. 1982) (recognizing that parties often confuse amendment
and supplementation); 6A Charles Alan Wright & Arthur
Miller, Federal Practice and Procedure § 1504 (3d ed. 2019)
14
claims, and prayers for relief in a complaint to reflect the state
of things as of the date the action was commenced. See Garrett
v. Wexford Health, 938 F.3d 69, 82 (3d Cir. 2019) (explaining
that amendment allows the inclusion of âmatters that were
overlooked or were unknown at the time the party interposed
the original complaintâ (citation omitted)); 6 Charles Alan
Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice
and Procedure § 1473 (3d ed. 2010) [hereinafter âFederal
Practice and Procedureâ] (explaining that an amended
pleading should relate only âto matters that have taken place
prior to the date of the earlier pleadingâ). By contrast,
supplementation adds or alters allegations, claims, or prayers
for relief in the complaint based on events that occurred after
the initiation of the lawsuit. See Garrett, 938 F.3d at 82.9
Amended complaints and supplemental complaints differ
in their treatment of the date upon which a plaintiff must
establish Article III standing. An amended complaint â while
the operative pleading for purposes of evaluating the
sufficiency of the allegations, the viability of the claims, and
the requested relief10 â does not restart the date for assessing
(âParties and courts occasionally confuse supplemental
pleadings with amended pleadings and mislabeling is
common.â).
9
See also T Mobile Ne. LLC v. City of Wilmington, 913 F.3d
311, 326 (3d Cir. 2019) (âSupplemental pleadings . . . are
limited to subsequent events related to the claim or defense
presented in the original pleading.â (quoting 3 James Wm.
Moore et al., Mooreâs Federal Practice ¶ 15.30 (3d ed.
2018))); 6A Federal Practice and Procedure § 1504
(explaining that supplemental pleadings âdeal with events
subsequent to the pleading to be altered and represent additions
to or continuations of the earlier pleadingsâ).
10
See Saint-Jean v. Palisades Interstate Park Commân,
49 F.4th 830, 835 (3d Cir. 2022) (recognizing that âan
15
standing. See Conolly v. Taylor, 27 U.S. (2 Pet.) 556, 565 (1829) (Marshall, C.J.) (âWhere there is no change of party, a jurisdiction depending on the condition of the party is governed by that condition, as it was at the commencement of the suit.â (emphasis added)).11 Rather, an amended complaint provides additional information that can be used to evaluate standing as of the date that the lawsuit was filed. See Mollan v. Torrance,22 U.S. (9 Wheat.) 537, 539
(1824) (Marshall, C.J.) (explaining that subject-matter jurisdiction âdepends upon the state of things at the time of the action broughtâ).12 That is so because an amended complaint revises the prior pleading only to reflect a more accurate understanding of the state of things when the action was filed â not to update the pleading with later occurring facts. But, if a district court permits a supplemental complaint,13 then for the claims and requested amended complaint âsupersedes the pleading it modifiesââ (quoting 6 Federal Practice and Procedure § 1476)). 11 See also Rockwell Intâl Corp. v. United States,549 U.S. 457, 473
(2007) (âThe state of things and the originally alleged state of things are not synonymous; demonstration that the original allegations were false will defeat jurisdiction. So also will the withdrawal of those allegations, unless they are replaced by others that establish jurisdiction.â (citations omitted)); Grupo Dataflux v. Atlas Glob. Grp., L.P.,541 U.S. 567
, 574â75 (2004) (holding that a partyâs post-filing change in citizenship cannot cure a lack of diversity jurisdiction from the lawsuitâs outset). 12 Cf.28 U.S.C. § 1653
(âDefective allegations of jurisdiction may be amended, upon terms, in the trial or appellate courts.â); GBForefront, L.P. v. Forefront Mgmt. Grp., LLC,888 F.3d 29, 36
(3d Cir. 2018) (remanding for the potential cure of a
jurisdictional defect through amendment).
13
The standards for amendment and supplementation are
similar, but they do not conform exactly as more lenience is
afforded to amendment. Compare Fed. R. Civ. P. 15(a)
16
relief substantively affected by the alleged post-suit
developments,14 a plaintiffâs Article III standing is evaluated
as of the date of the supplemental pleading. See, e.g.,
Greenberg v. Lehocky, 81 F.4th 376, 384 n.4 (3d Cir. 2023) (evaluating a plaintiffâs standing â and not mootness â based on a later-filed complaint that challenged a revision to a rule that occurred after the original complaint); Common Cause/Ga. v. Billups,554 F.3d 1340
, 1347â52 (11th Cir. 2009)
(evaluating plaintiffsâ Article III standing based on a
subsequent complaint challenging a revised statute).15
Here, Lutter labeled her second complaint as an âamended
complaint,â but that is not entirely precise: that pleading
amended and supplemented the original complaint. It added
the date that she submitted a dues deduction authorization card,
June 30, 2011. It also dropped another union as a party. Those
revisions reflect the state of things as of her original complaint,
and thus they are amendments. But Lutterâs second complaint
removed the original allegation that Lutter âis a member of the
JNESO.â Compare Compl. ¶ 19 (JA44), with Am. Compl.
¶¶ 21â25 (JA56â57). It also added factual allegations that
arose after the original complaint: that Lutter did not have any
(amendment âonce as a matter of courseâ within a certain
period and afterwards leave to amend should be âfreely give[n]
. . . when justice so requiresâ), with id. 15(d) (supplementation
âon just termsâ). But cf. T Mobile Ne. LLC, 913 F.3d at 327â
29 (applying relation-back principles from amended pleadings
to supplemental pleadings).
14
See Mathews v. Diaz, 426 U.S. 67, 75 (1976) (recognizing
that a supplemental complaint supersedes the prior complaint
with respect to the allegations it supplements).
15
Supplementation may not affect every claim and every form
of requested relief. A supplemental pleading allows the
reassessment of a plaintiffâs Article III standing only for the
claims and relief substantively affected by the
supplementation.
17
opportunity to cease paying dues for nearly a year and that such
dues were deducted from her paycheck during that time.
Because those alterations reflect post-filing developments,
they supplement the original complaint. Accordingly, Lutterâs
second complaint, although labeled as an âamended
complaint,â is actually an amended and supplemental
complaint.
Critically for purposes of Article III standing, the
supplemental allegations substantively affect all of Lutterâs
claims and requested relief. She now proceeds as a non-
member of a union who seeks relief for the prior deduction of
union dues from her paycheck for nearly a year. Because the
supplemented allegations substantively affect the entirety of
her claims and relief sought, Lutterâs Article III standing
should be evaluated as of February 28, 2020, the date she filed
the second complaint.
Using that date to evaluate her standing, Lutter has failed
to plausibly allege standing except with respect to her claims
against JNESO for a refund of her union dues.16
1. Injury-in-Fact
Lutterâs claims satisfy the injury-in-fact requirement. An
injury-in-fact is ââan invasion of a legally protected interestâ
that is âconcrete and particularizedâ and âactual or imminent,
not conjectural or hypothetical.ââ Spokeo, 578 U.S. at 339
(citing Lujan, 504 U.S. at 560). Her operative complaint 16 By plausibly alleging standing for one claim, Lutter also has standing for her requests for attorneyâs fees and costs, which, in this case, are dependent on the viability of her underlying claims. See Lewis v. Contâl Bank Corp.,494 U.S. 472, 480
(1990) (recognizing that a request for attorneyâs fees under42 U.S.C. § 1988
is âinsufficient to create an Article III case or
controversy where none exists on the merits of the underlying
claimâ (citation omitted)).
18
sufficiently alleges the invasion of her First Amendment right
against the compelled subsidization of speech. Lutter did not
wish to financially support JNESOâs speech, but as directed by
the WDEA, union dues were deducted from her paycheck for
ten months after she requested that they cease.17 The invasion
of that interest is actual since the funds were taken out of her
paycheck against her wishes and used by JNESO. See Tyler v.
Hennepin County, 598 U.S. 631, 636(2023) (recognizing a claim that one party kept money that it was not entitled to was âa classic pocketbook injury sufficient [for] standingâ); Danvers Motor Co. v. Ford Motor Co.,432 F.3d 286, 293
(3d Cir. 2005) (âMonetary harm is a classic form of injury-in-fact.â (citation omitted)); see also Edmonson v. Lincoln Natâl Life Ins. Co.,725 F.3d 406, 417
(3d Cir. 2013) (holding that an injury-in-fact exists by virtue of a defendantâs âuse of assets that belonged toâ the plaintiff). Lutterâs injury is particularized because the deduction of those union dues from her paycheck affected her âin a personal and individual way.â Spokeo, 578 U.S. at 339 (quoting Lujan,504 U.S. at 560
n.1). And the deduction of union dues is concrete because it was âreal, and not abstract.â Id. at 340 (quotation marks and citation omitted). 17 Because Lutter ties the deductions of her union dues to the WDEA, the nature of her injury-in-fact differs from the plaintiff in LaSpina v. SEIU Pennsylvania State Council,985 F.3d 278
(3d Cir. 2021). There, a member of a public- sector union in Pennsylvania sued the union for continuing to collect dues for two months after she submitted a resignation, but unlike Lutter, the former union member did not allege that the unionâs delay was pursuant to the express direction from a state statute, such as the WDEA. Seeid. at 287
(âThe deduction of membership dues without authorization in this context may be an injury. It is just not a constitutional one.â); cf. Lugar v. Edmondson Oil Co.,457 U.S. 922, 933
(1982)
(â[P]rivate use of the challenged state procedures with the help
of state officials constitutes state action for purposes of the
Fourteenth Amendment.â).
19
For completeness, and relevant for evaluating fairly
traceable causation and redressability, which both depend on
the nature of the injury-in-fact, see TransUnion LLC,
141 S. Ct. at 2203, Lutter does not plausibly allege an imminent injury-in-fact. At the time of her second complaint, Lutter was no longer a member of JNESO, so neither her inability to immediately resign from a union nor the deduction of future JNESO union dues from her paycheck was âcertainly impendingâ or subject to a âsubstantial riskâ of reoccurring. Clapper,568 U.S. at 409
, 414 n.5 (quoting Lujan,504 U.S. at 565
n.2); see also Whitmore v. Arkansas,495 U.S. 149, 158
(1990) (âA threatened injury must be certainly impending to
constitute [an] injury in fact.â (quotations and citation
omitted)). Thus, Lutter alleges standing only for an actual
injury-in-fact.
2. Fairly Traceable Causation
Lutterâs operative complaint plausibly alleges a fairly
traceable causal connection between her injury-in-fact and two
of the defendants, but not the others. Fair traceability requires
a causal connection between the injury-in-fact and a
defendantâs conduct; the injury cannot result from âthe
independent action of some third party not before the court.â
Lujan, 504 U.S. at 560(quoting Simon v. E. Ky. Welfare Rts. Org.,426 U.S. 26
, 41â42 (1976)). Here, Lutterâs operative
complaint alleges that JNESO and Essex County were
responsible for the deductions of union dues from her
paycheck, so her injury-in-fact is fairly traceable to their
actions.
By contrast, Lutterâs claims against the other defendants â
all of whom are New Jersey officials sued in their official
capacities â fail to allege fairly traceable causation. Because
the WDEA prolonged the deductions of union dues from her
paycheck, she sues the Governor, the Attorney General, and
the Members of the Public Employment Relations Commission
for declaratory and injunctive relief. Although Lutter alleges a
causal nexus to the WDEA, she does not identify any action
20
taken by these state officials to enforce that statute; she alleges
that only Essex County and JNESO were responsible for the
dues deductions. See Lugar v. Edmondson Oil Co., 457 U.S.
922, 941 (1982) (âWhile private misuse of a state statute does
not describe conduct that can be attributed to the State, the
procedural scheme created by the statute obviously is the
product of state action.â). And without identifying a fairly
traceable nexus between her injury-in-fact and conduct by the
New Jersey officials, Lutterâs allegations fail the second prong
of Article III standing with respect to them.18
3. Redressability
The redressability requirement ensures that the asserted
injury-in-fact is capable of resolution in a manner consistent
with the traditional understanding of the judicial process. See
United States v. Texas, 143 S. Ct. 1964, 1970 (2023); Raines v. Byrd,521 U.S. 811, 819
(1997). For requested relief to satisfy this requirement, it âmust be âlikely,â as opposed to merely âspeculative,â that the injury will be âredressed by a favorable decision.ââ Lujan,504 U.S. at 561
(quoting Simon,426 U.S. at 38, 43
). With respect to claims for legal or equitable relief, a favorable opinion need not relieve every injury; the judgment need only relieve âa discrete injury.â Larson v. Valente,456 U.S. 228
, 243 n.15 (1982). However, for a declaratory judgment to provide redress, it must âcompletely resolve[] a concrete controversy susceptible to conclusive judicial determination.â Calderon v. Ashmus,523 U.S. 740, 749
(1998); see also Coffman v. Breeze Corps.,323 U.S. 316
, 323â 24 (1945) (holding that a plaintiff lacked standing for a 18 It is permissible to challenge the constitutionality of a state statute without suing state officials in their official capacities: both a federal statute and a federal rule of civil procedure expressly contemplate such a situation. See28 U.S.C. § 2403
(b); Fed. R. Civ. P. 5.1(a).
21
requested declaratory judgment on potential defenses to a
claim that could be later adjudicated).
Applying these principles, Lutterâs claim for compensatory
damages against JNESO is redressable. Damages, which
operate as a âsubstitute for a suffered loss,â are a recognized
form of judicial redress for past injuries. Bowen v.
Massachusetts, 487 U.S. 879, 895(1988) (citing D. Dobbs, Handbook on the Law of Remedies 135 (1973)); see also Uzuegbunam v. Preczewski,141 S. Ct. 792
, 796 (2021)
(holding that even nominal damages provide redress for a past
injury-in-fact).
The other forms of relief that Lutter requests will not
redress her injury-in-fact. She seeks a preventive injunction
against JNESO and Essex County to enjoin the further
collection of union dues from her paycheck. See Dobbs &
Roberts, Law of Remedies: Damages, Equity, Restitution
§ 2.9(1) (3d ed. 2018) (âA preventive injunction attempts to
prevent the loss of an entitlement in the futureâ). But by the
time of her operative complaint, Lutter was not a member of
JNESO, and Essex County was not deducting union dues from
her paycheck. Because those deductions had already occurred
and were not likely to reoccur â at least without Lutterâs
consent â a preventive injunction was unlikely to remedy the
compelled past deductions of union dues from her paycheck.
Cf. City of Los Angeles v. Lyons, 461 U.S. 95, 102(1983) (âPast exposure to illegal conduct does not in itself show a present case or controversy regarding injunctive relief . . . if unaccompanied by any continuing, present adverse effects.â (quoting OâShea v. Littleton,414 U.S. 488
, 495â96 (1974))).
Lutterâs requests for declaratory judgments also fail the
redressability requirement. She seeks declarations that the
WDEA is unconstitutional and that she has a constitutional
right to immediately resign from public-sector unions. But for
a declaratory judgment to redress an injury-in-fact, as opposed
to serving as an advisory opinion, it must provide something
22
other than the âemotional satisfactionâ of a favorable ruling.
Ashcroft v. Mattis, 431 U.S. 171, 172(1977); see also Diamond v. Charles,476 U.S. 54, 62
(1986) (âThe presence of a disagreement, however sharp and acrimonious it may be, is insufficient by itself to meet [Article] IIIâs requirements.â). Instead, to redress an injury-in-fact, a declaratory judgment must provide conclusive resolution of a concrete controversy related to a prospective course of action by one of the adverse parties. See Calderon,523 U.S. at 749
(holding that a declaratory judgment was not justiciable because it âwould not completely resolve [all] challenges but would simply carve out one issue in the dispute for separate adjudicationâ); Aetna Life Ins. Co. of Hartford v. Haworth,300 U.S. 227
, 240â41 (1937) (holding that a request for a declaratory judgment regarding an insuredâs disability was justiciable). Yet Lutter does not identify any prospective course of action of her own or by JNESO or Essex County for which she needs legal resolution through declaratory judgments. See Hendrickson v. AFSCME Council 18,992 F.3d 950
, 958 (10th Cir. 2021) (holding that a former-union-member plaintiff lacks standing for âa declaration [of the] constitutionality of the Unionâs opt-out window as applied to himâ). If anything, Lutterâs operative complaint, by alleging that she has resigned her JNESO membership and that the payroll deductions of union dues had ceased, confirms that resolution of either the constitutionality of the WDEA or her putative constitutional right to immediately resign from a public-sector union would have nothing more than an abstract value to her. In short, based on her supplemental allegations, Lutterâs operative complaint plausibly alleges Article III standing for only her damages claim against JNESO (as well as for her ancillary request for attorneyâs fees and costs from JNESO). B. Article III Mootness Like standing, Article III mootness derives from the case- or-controversy requirement. See Liner v. Jafco, Inc.,375 U.S. 301
, 306 n.3 (1964) (âOur lack of jurisdiction to review moot
23
cases derives from the requirement of Article III of the
Constitution under which the exercise of judicial power
depends upon the existence of a case or controversy.â); cf. The
Mootness Doctrine in the Supreme Court, 88 Harv. L. Rev.
373, 374 (1974) (recognizing that initially courts grounded mootness âin the common law doctrine that courts lack power to decide abstract questions in cases where no dispute existsâ). Accordingly, much of the mootness analysis parallels the tripartite standing test in that a prerequisite for mootness is the loss of standing during the pendency of the litigation. See Spencer v. Kemna,523 U.S. 1, 7
(1998) (â[T]hroughout the litigation, the plaintiff âmust have suffered, or be threatened with, an actual injury traceable to the defendant and likely to be redressed by a favorable judicial decision.ââ (quoting Lewis v. Contâl Bank Corp.,494 U.S. 472, 477
(1990))); Arizonans for Off. Eng. v. Arizona,520 U.S. 43, 67
(1997) (âTo qualify as a case fit for federal-court adjudication, âan actual controversy must be extant at all stages of review, not merely at the time the complaint is filed.ââ (quoting Preiser v. Newkirk,422 U.S. 395, 401
(1975))). And just as the party seeking to establish standing bears the burden of proof, the party seeking to demonstrate the loss of standing during the pendency of the litigation bears the burdens of production and persuasion. See Hartnett v. Pa. State Educ. Assân,963 F.3d 301
, 305â06 (3d Cir. 2020). Also, mootness, like standing, may be raised at any time, but unlike standing, mootness depends on the state of things after the lawsuit commenced. See Church of Scientology of Cal. v. United States,506 U.S. 9, 12
(1992) (permitting a mootness challenge based on events that occurred while the case was on appeal); The Mootness Doctrine in the Supreme Court, 88 Harv. L. Rev. at 377â78 (âIn mootness inquiries . . . the range of factual questions which must be considered is greater than in other justiciability cases.â). Despite its similarities to standing, mootness is not merely the post-suit absence of standing. See Friends of the Earth, Inc. v. Laidlaw Envât Servs. (TOC), Inc.,528 U.S. 167
, 190
24
(2000) (âCareful reflection on the long-recognized exceptions
to mootness, however, reveals that the description of mootness
as âstanding set in a time frameâ is not comprehensive.â);
Hartnett, 963 F.3d at 306. The other case-or-controversy
considerations â the genuine-adversity requirement and the
prohibition on advisory opinions â also influence the mootness
analysis. For instance, if a defendant ceases conduct that
resulted in an actual or imminent injury-in-fact, the parties may
remain genuine adversaries if the defendant, upon dismissal of
the case, were âfree to return to his old ways.â United States
v. W. T. Grant Co., 345 U.S. 629, 632(1953).19 Thus, a defendantâs voluntary cessation of the complained-of conduct does not moot claims for prospective relief unless that defendant meets the âheavyâ burden of establishing that âthere is no reasonable expectation that the wrong will be repeated,âid. at 633
(quotation omitted), and âinterim relief or events have completely and irrevocably eradicated the effects of the alleged violation,â County of Los Angeles v. Davis,440 U.S. 625, 631
(1979) (citations omitted).20 Similarly, if during the
litigation, a plaintiff can no longer satisfy the elements of
19
See also Knox v. Serv. Emps. Intâl Union, Loc. 1000,
567 U.S. 298, 307(2012) (âThe voluntary cessation of challenged conduct does not ordinarily render a case moot because a dismissal for mootness would permit a resumption of the challenged conduct as soon as the case is dismissed.â); cf. City News & Novelty, Inc. v. City of Waukesha,531 U.S. 278
, 284 n.1 (2001) (refraining from applying the voluntary cessation doctrine when it was the plaintiff, ânot its adversary, whose conduct sap[ped] the controversy of vitalityâ (emphasis added)). 20 See also Friends of the Earth,528 U.S. at 189
(âThe âheavy burden of persua[ding]â the court that the challenged conduct cannot reasonably be expected to start up again lies with the party asserting mootness.â (alteration in original) (quoting United States v. Concentrated Phosphate Exp. Assân,393 U.S. 199, 203
(1968))); Hartnett, 963 F.3d at 305â06.
25
standing, a court ruling may not be an advisory opinion if the
plaintiff establishes that the defendantâs conduct was capable
of repetition yet evading review. See County of Butler v.
Governor of Pa., 8 F.4th 226, 231 (3d Cir. 2021) (âA plaintiff bears the burden to show that the âcapable of repetition yet evading reviewâ exception applies.â (citations omitted)); N.J. Tpk. Auth. v. Jersey Cent. Power & Light,772 F.2d 25
, 33 (3d
Cir. 1985). In sum, the absence of Article III standing is a
necessary condition for mootness, but due to the voluntary-
cessation and capable-of-repetition-yet-evading-review
exceptions, it is not always a sufficient condition.
In challenging mootness, JNESO bears the burden of
establishing that Lutter lost Article III standing after the filing
of her supplemental complaint on February 28, 2020. As far
as its burden of production, JNESO relies on correspondence
from its counsel to Lutterâs attorney dated March 12, 2020.
Enclosed therein was a check, which JNESOâs counsel
described in the cover letter as being in the amount of the union
dues collected from Lutter âafter she declared her desire to
resign from membership in JNESO,â plus interest. Letter from
Ptasiewicz (JA85). There is, however, no evidence that Lutter
ever cashed or deposited the check. Also, during the pendency
of this appeal, New Jersey enacted the Responsible Collective
Negotiations Act, which eliminated the ten-day window
provided by the WDEA for public-sector employees to revoke
their authorizations for payroll deductions of union dues. See
2021 N.J. Sess. Law Serv. Ch. 411 (West) (codified at N.J.
Stat. Ann. § 52:14-15.9e). On that record, JNESO must â as a
prerequisite to establishing mootness â demonstrate that
Lutterâs Article III standing was extinguished.
For the first and second elements of standing, those
intervening events do not undo Lutterâs injury-in-fact or its fair
traceability to JNESO. Lutterâs alleged injury-in-fact was the
invasion of her First Amendment right protecting her from the
compelled subsidization of speech through the operation of the
WDEA, which, at the time, governed the deduction of union
26
dues from her paycheck. See Janus, 138 S. Ct. at 2464(âWhen speech is compelled, . . . additional damage is done. In that situation, individuals are coerced into betraying their convictions.â). But neither JNESOâs check for Lutterâs dues plus interest nor the repeal of the WDEAâs ten-day window changed Lutterâs allegations that she had subsidized JNESOâs speech against her will. Seeid.
(âBecause the compelled subsidization of private speech seriously impinges on First Amendment rights, it cannot be casually allowed.â). So her injury-in-fact persists, and it remains fairly traceable to JNESO, which received union dues from Lutterâs paycheck after she requested that the deductions cease and that she resign from the union. Cf. Genesis Healthcare Corp. v. Symczyk,569 U.S. 66, 81
(2013) (Kagan, J., dissenting) (explaining that after an unaccepted offer of judgment, the plaintiffâs âstake in the lawsuit . . . remained what it had always beenâ); see also Campbell-Ewald Co. v. Gomez,577 U.S. 153
, 162 (2016)
(adopting Justice Kaganâs analysis in her Genesis Healthcare
dissent).
Like the other two elements, the third, redressability, is
ârooted in the traditional understanding of a case or
controversy.â Spokeo, 578 U.S. at 338; see also Steel Co. v.
Citizens for a Better Envât, 523 U.S. 83, 103(1998); Raines, 521 U.S. at 818â19. Relevant here, the mechanism of contract has been traditionally understood to limit the scope of judicial redress. It is firmly entrenched in American jurisprudence that parties can contractually agree not to resolve disputes in court but proceed instead through arbitration. See Bel-Ray Co. v. Chemrite (Pty) Ltd.,181 F.3d 435, 444
(3d Cir. 1999) (âArbitration is strictly a matter of contract.â); see also United Steelworkers of Am. v. Warrior & Gulf Navigation Co.,363 U.S. 574, 582
(1960) (â[A]rbitration is a matter of contract
and a party cannot be required to submit to arbitration any
dispute which he has not agreed so to submit.â). Once in court,
parties may still alter their rights relative to one another by
agreeing to resolve pending claims. Yet, from the founding, it
has been understood that âcourts ârender a judgment or decree
27
upon the rights of the litigant[s].ââ Texas, 143 S. Ct. at 1980
(Gorsuch, J., concurring) (alterations in original) (quoting
Rhode Island v. Massachusetts, 37 U.S. (12 Pet.) 657, 718(1838)). So when parties alter their rights relative to one another through a settlement agreement, they typically eliminate the necessity of judicial redress with respect to the settled matters. See Alvarez v. Smith,558 U.S. 87, 94
(2009) (recognizing that âwhere mootness results from settlement rather than happenstance, the losing party has voluntarily forfeited his legal remedyâ (quotations and citations omitted)). But cf. Keefe v. Prudential Prop. & Cas. Ins. Co.,203 F.3d 218, 224
(3d Cir. 2000) (holding that a case subject to a âhigh-
low settlement agreementâ was not moot). And by settling a
dispute, the parties dramatically diminish the likelihood that a
favorable decision would redress the injury-in-fact.21
But here there was no settlement contract to alter the
partiesâ rights relative to each other and affect the scope of
traditionally permissible judicial relief. JNESOâs
correspondence is not a valid settlement offer. In its cover
letter, JNESO sought no promise or performance in return for
the check. See Restatement (Second) of Contracts § 24 (Am.
L. Inst. 1981) (âAn offer is the manifestation of willingness to
enter into a bargain, so made as to justify another person in
understanding that his assent to that bargain is invited and will
conclude it.â); id. § 3 (âA bargain is an agreement to exchange
21
The mootness-by-reason-of-settlement principle makes
unnecessary consideration of the voluntary-cessation and the
capable-of-repetition-yet-evading-review exceptions. See U.S.
Bancorp Mortg. Co. v. Bonner Mall Pâship, 513 U.S. 18, 29(1994) (recognizing âmootness by reason of settlementâ and discussing its consequences on a judgment under review); United Airlines, Inc. v. McDonald,432 U.S. 385, 400
(1977) (Powell, J., dissenting) (âThe settlement of an individual claim typically moots any issues associated with it.â); Lusardi v. Xerox Corp.,975 F.2d 964, 974
(3d Cir. 1992) (âSettlement of
a plaintiffâs claims moots an actionâ).
28
promises or to exchange a promise for a performance or to
exchange performances.â (emphasis added)). To the contrary,
JNESO disavowed âseeking any conditions or promises from
Ms. Lutter.â Letter from Ptasiewicz (JA85). Similarly, neither
the cover letter nor the check contained conspicuous language
that the check was tendered in full satisfaction of Lutterâs
claims â as required by New Jerseyâs Uniform Commercial
Code for a check to function as a settlement offer. See N.J.
Stat. Ann. § 12A:3-311(b) (West 2018) (allowing discharge of
a claim âif the person against whom the claim is asserted
proves that the instrument or an accompanying written
communication contained a conspicuous statement to the effect
that the instrument was tendered as full satisfaction of the
claimâ). Even if the check did suffice for a settlement offer,
Lutter did not accept it because under New Jerseyâs Uniform
Commercial Code, to accept such an offer, the recipient has to
âobtain[] payment of the instrument,â and there is no evidence
that Lutter ever did so. Id. § 12A:3-311(a); see also Hoekman
v. Educ. Minn., 41 F.4th 969, 977 (8th Cir. 2022) (â[A]n uncashed check is not materially different from an unaccepted offer of settlement.â). Yet, an unaccepted settlement offer â even one that purports to satisfy a claim in full â does not moot a case. See Campbell-Ewald, 577 U.S. at 162â63;id. at 174
(Thomas, J., concurring in the judgment) (â[S]tate and federal courts have not considered a mere offer, without more, sufficient to moot [a] case.â); Knox v. Serv. Emps. Intâl Union, Loc. 1000,567 U.S. 298, 307
(2012) (holding that a post- certiorari offer to class members to fully refund the collection of disputed union dues did not moot the case); LaSpina v. SEIU Pa. State Council,985 F.3d 278
, 288 n.2 (3d Cir. 2021) (suggesting in dicta that a former union memberâs ârefusal to cash the check may be sufficient to defeat mootnessâ).22 Thus, 22 See also Genesis Healthcare,569 U.S. at 81
(Kagan, J., dissenting) (recognizing that an unaccepted offer of judgment does not limit âthe courtâs capacity to grant . . . reliefâ); Gates v. Towery,430 F.3d 429, 432
(7th Cir. 2005) (âA defendant
29
JNESOâs correspondence to Lutter, inclusive of the check for
union dues plus interest, does not, by itself, moot her case.
Still, a settlement agreement is not necessary to moot a
case. See Campbell-Ewald, 577 U.S. at 180 (Roberts, C.J.,
dissenting) (âArticle III does not require the parties to
affirmatively agree on a settlement before a case becomes
moot.â). The unilateral action of one party may eliminate a
plaintiffâs Article III standing, but that commonly occurs when
some unilateral action abates the asserted injury-in-fact,
especially for injuries that are ongoing or imminent. See Burke
v. Barnes, 479 U.S. 361, 364 n* (1987) (concluding that the expiration of a statute extinguished any âjudicially cognizable injuryâ); cf. Lewis,494 U.S. at 481
(permitting âsuits for prospective relief to go forward despite abatement of the underlying injury only in the âexceptional situationsââ of an injury capable of repetition yet evading review (quoting Lyons,461 U.S. at 109
)); DeFunis v. Odegaard,416 U.S. 312, 318
(1974) (recognizing the usual applicability of voluntary
cessation concerns in response to a defendantâs âunilateral
changeâ that eliminates the claimed injury).
But this case involves an actual injury-in-fact inflicted in
the past that remains. So to show that Lutterâs claim is
presently non-redressable, JNESO must demonstrate that even
without a settlement agreement to alter the rights of the parties,
a damages award would be unlikely to redress Lutterâs injury.
JNESO identifies one case fitting that description: California
v. San Pablo & Tulare R.R. Co., 149 U.S. 308(1893). There, a railroad that owed delinquent taxes to California deposited the amount of money owed in taxes plus interest, penalties, and costs, into a bank. Under a state statute, those actions âextinguishedâ the railroadâs obligation for the payment of money.Id. at 314
. Because a state statute allowed the
cannot simply assume that its legal position is sound and have
the case dismissed because it has tendered everything it admits
is due.â).
30
unilateral action by one party to alter the partiesâ rights relative
to each other and affect the scope of traditionally permissible
judicial relief, the Supreme Court held that the case was moot.
Id. But here, there is no applicable law that, when coupled with
JNESOâs post-filing actions, would alter the rights of the
parties relative to one another.
Altogether, in the absence of a settlement agreement or
some other alteration of the litigantsâ relative rights, JNESO
has not demonstrated that the traditional damages remedy
would not likely provide some redress to Lutter. See
13C Federal Practice and Procedure § 3533.3 (âThe
availability of damages or other monetary relief almost always
avoids mootness.â). And without proof that Lutter lost
Article III standing during the litigation, this case is not moot.
See Wheeling-Pittsburgh Steel Corp. v. United Steelworkers of
Am., AFL-CIO-CLC, 791 F.2d 1074, 1080 (3d Cir. 1986)
(recognizing that one partyâs âmotivating interest in securing a
precedent does not render the case nonjusticiable as long as
there are, in fact, stakes at issueâ).23
This holding â that the post-suit provision of a check for the
amount owed for the underlying claims plus interest does not
moot Lutterâs claims â aligns well with the fee-shifting
consequences of dismissals on mootness grounds. Even when
a statute authorizes the recovery of attorneyâs fees, a plaintiff
cannot recover fees for a mooted claim because such a
disposition lacks the âjudicial imprimaturâ of a change in the
legal relationship of the parties. Buckhannon Bd. & Care
Home, Inc. v. W.V. Depât of Health & Hum. Res., 532 U.S. 598,
605(2001) (emphasis removed); see also Lewis,494 U.S. at 480
. Under that rule, a dismissal on mootness grounds is an
attractive disposition for a defendant who is subject to liability
23
Because the voluntary-cessation and capable-of-repetition-
yet-evading-review exceptions apply only when a plaintiff has
lost Article III standing during the course of the litigation, it is
not necessary to address their applicability here.
31
for attorneyâs fees but who does not wish to contest liability for
the underlying claims. In contrast to the other options
commonly available to such a defendant for resolving the case
expeditiously â settling it,24 defaulting,25 or making an offer of
judgment26 â which require an accounting for fee liability at
some point, a dismissal on mootness grounds does not. So if a
check in the amount owed for the underlying claims (but not
fees and costs) sufficed for mootness, then defendants could
avoid fee liability in an unprecedented manner. By avoiding
that outcome, todayâs holding does not open a loophole for
defendants to avoid fee exposure. See N.Y. State Rifle & Pistol
Assân, Inc. v. City of New York, 140 S. Ct. 1525, 1538(2020) (Alito, J., dissenting) (âBut where a live controversy remains, a defendant who would otherwise be liable for attorneyâs fees should not be able to wiggle out on the basis of a spurious claim of mootness.â).27 24 See Buckhannon,532 U.S. at 609
(âIf a case is not found to be moot, and the plaintiff later procures an enforceable judgment, the court may of course award attorneyâs fees. Given this possibility, a defendant has a strong incentive to enter a settlement agreement, where it can negotiate attorneyâs fees and costs.â). 25 See Fed. R. Civ. P. 55. 26 See Fed. R. Civ. P. 68(a), (d); see also42 U.S.C. § 1988
(b) (defining attorneyâs fees as part of âcostsâ); Marek v. Chesney,473 U.S. 1, 46
(1985) (Brennan, J., dissenting, app.) (recognizing42 U.S.C. § 1988
as a statute in which attorneyâs
fees were referred to as âcostsâ).
27
Because it dismissed Lutterâs complaint on standing and
mootness grounds, the District Court did not consider JNESOâs
two additional challenges to the legal sufficiency of the
operative complaint. But with the partial vacating of the
District Courtâs order to allow Lutterâs damages claim against
JNESO, those two issues â whether Janus invalidated
32
CONCLUSION
For the foregoing reasons, the orders of the District Court
will be affirmed in part and vacated in part, and this case will
be remanded for resolution of Lutterâs claims for damages (and
potentially attorneyâs fees and costs) against JNESO.
previous, valid authorizations of payroll deductions of union
dues and whether JNESO was a state actor subject to suit under
§ 1983 â are properly addressed in the first instance by the
District Court on remand. Also, because Lutter lacks standing
to pursue claims against the official-capacity defendants, it is
not necessary to resolve their arguments in favor of Eleventh
Amendment immunity and certification to the New Jersey
Supreme Court.
33