Disabled Rights Action Comm. v. Las Vegas Events

• Decision Date: 13 July 2004
• Docket Number: No. 02-17163.,02-17163.
• Citation: 375 F.3d 861
• Parties: DISABLED RIGHTS ACTION COMMITTEE, Plaintiff-Appellant, v. LAS VEGAS EVENTS, INC.; University of Nevada, Las Vegas, Thomas and Mack Center; Professional Rodeo Cowboys Association, Defendants-Appellees.
• Court: U.S. Court of Appeals — Ninth Circuit

375 F.3d 861

DISABLED RIGHTS ACTION COMMITTEE, Plaintiff-Appellant, v. LAS VEGAS EVENTS, INC.; University of Nevada, Las Vegas, Thomas and Mack Center; Professional Rodeo Cowboys Association, Defendants-Appellees.

No. 02-17163.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted December 5, 2003.

Filed July 13, 2004.

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Richard F. Armknecht, III, Armknecht & Cowdell, P.C., Lindon, UT, for the plaintiff-appellant.

Elayna J. Youchah, Schreck Brignone, Las Vegas, NV; Walter L. Ayers, University and Community College System of Nevada, Las Vegas, NV; and Elizabeth R. Brennan, Lionel Sawyer & Collins, Las Vegas, NV, for the defendants-appellees.

Appeal from the United States District Court for the District of Nevada; Howard D. McKibben, District Judge, Presiding, D.C. No. CV-00-01170-HDM.

Before HAWKINS, PAEZ, and BERZON, Circuit Judges.

BERZON, Circuit Judge.

The central question in this Americans with Disabilities Act (ADA) suit is whether the two private entities that stage the National Finals Rodeo at a publicly-owned arena in Las Vegas "operate" the arena during the Rodeo, and so are responsible for assuring compliance with the ADA's public accommodation physical accessibility requirements. The district court thought not. Also at issue is whether the suit can proceed without the participation of the University and Community College System of Nevada (University System), the owner of the arena. The district court ruled that under Rule 19 of the Federal Rules of Civil Procedure, it cannot.

We conclude that under the circumstances here, the private groups staging the Rodeo did "operate" the publicly-owned facility during the Rodeo and so can be sued under Title III of the ADA for failure to make a place of public accommodation accessible for disabled individuals. We further conclude that University System is not a necessary party under Rule 19.

I. BACKGROUND

A. Factual History

Disabled Rights Action Committee (Disabled Rights) is a non-profit organization that advocates for the rights of people with disabilities. Its 1000-plus members include residents of Las Vegas, Nevada, who use wheelchairs and attend or wish to attend events, including the Rodeo, at the Thomas & Mack Center (Center) in that city.

The Rodeo is an annual competition sponsored by the Professional Rodeo Cowboys Association (Cowboys) and presented by Las Vegas Events (Events). University System, a sub-entity of the state of Nevada, owns the Center on behalf of the University of Nevada, Las Vegas (UNLV). Events entered into a "License Agreement" with University System granting it permission to use the Center to conduct the Rodeo in November and December each year.¹

The License Agreement provides:

All cleaning of public spaces, equipment use, and services requested or required beyond normal operation and maintenance of the Licensed Space and not specifically provided for in this Agreement shall be at the expense of the Licensee. This shall include, but not be limited to, special seating change-overs, erection of stages and platforms, decorations, sound and lighting installations, and any other special services requested or required by the Licensee.²

Disabled Rights filed suit under Title III of the ADA, naming Events and Cowboys as defendants. Title III of the ADA, entitled "Public Accommodations and Services Operated by Private Entities," provides that

No individual shall be discriminated against on the basis of disability in the full and equal enjoyment of the goods, services, facilities, privileges, advantages, or accommodations of any place of public accommodation by any person who owns, leases (or leases to), or operates a place of public accommodation.

42 U.S.C. § 12182(a). The statute further provides that, inter alia, "a motion picture house, theater, concert hall, stadium, [and] other place of exhibition or entertainment" are "private entities [ ] considered public accommodations for purposes of this subchapter, if the operations of such entities affect commerce." 42 U.S.C. § 12181(7)(C).

The complaint alleged that Disabled Rights' members "have been subjected [at the Center] to discriminatory access, substandard seating arrangements, and higher ticket prices" than those paid by nondisabled persons.³ Disabled Rights also alleged that Events and Cowboys "operate" the Center during each Rodeo. Disabled Rights sought an injunction preventing Events and Cowboys from "operating the Thomas & Mack Center unless and until such facility is fully compliant with the ADA."⁴

B. Procedural History

From this relatively straightforward complaint sprung a procedural morass in the district court that is somewhat difficult to untangle.

1. Joinder of UNLV as an Indispensable Party

Early in the litigation, Events moved pursuant to Federal Rule of Civil Procedure 19 for joinder of the UNLV Thomas and Mack Center. The district court granted the motion in February 2001, ordering Disabled Rights to file an amended complaint naming "the University of Nevada, Las Vegas, Thomas & Mack Center" as a defendant.

Applying the multi-factor test for joinder, the district court reasoned that because it is the entity that owns and operates the Center in the most "direct sense," UNLV has a legally protected interest in the outcome of the litigation. The court also concluded that (1) absent UNLV, complete relief among the existing parties was not possible, as enforcement of any judgment awarding relief would require the cooperation of UNLV, as the owner and operator of the Center; and (2) the relief could not be shaped in any way to lessen the prejudice to UNLV if it did not participate in the litigation. The district court directed Disabled Rights to join "the University of Nevada, Las Vegas, Thomas & Mack Center."⁵

On July 17, 2001, Disabled Rights filed a first amended complaint, this time naming Cowboys, Events, and the UNLV Center as defendants, but still alleging violations only of Title III of the ADA.

2. Dismissal of Action Against Events, Stay of Dismissal, and Vacatur of Stay

Events then moved for judgment on the pleadings, contending that because the Center is owned by a public entity, it is not a "place of public accommodation" within the meaning of Title III of the ADA. On October 1, 2001, the district court agreed, reasoning: "The venue chosen by [Events] is owned by the State of Nevada, and, therefore is not a facility that's a public accommodation. The term, `public accommodation,' encompasses only private entities."

At the time the court ruled on Events' motion to dismiss on the merits, however, the UNLV Center had not yet been served with the first amended complaint. In granting the motion, the court stated:

[T]here is still before this Court ... the University of Nevada, Las Vegas, is a — is before the Court having been joined as what the Court concludes was a necessary party.... [T]he Motion to Dismiss filed by [Events] is granted, and this action is dismissed as to [Events]. It is so ordered. This will constitute findings and conclusions of the Court.

The district court then suggested that Disabled Rights consider entering into a stipulation dismissing the action against Cowboys on the same grounds as those raised by Events. The court explained, "[I]f you can work out the language, [a stipulation] will be fine with me, which in effect, I guess, would end up dismissing this case, but preserving your right to appeal as to the parties involved."

Later that day, after the hearing was over, the court, sua sponte, stayed its order granting Events' motion to dismiss. A second hearing was held on October 5, 2001, to again consider the appropriate disposition of Events' motion. This time, the court, after expressing uncertainty as to the proper resolution and hearing further argument, discussed the status of UNLV's participation in the case:

THE COURT: [T]he University has been joined as a necessary party, I concluded that that was the case here, they're still in this action, but I take it what, they haven't been served or something?

MR. ARMKNECHT: They haven't been served, your honor. I still have about forty more days to do that, but —

THE COURT: But I take it you're not going to do that? This is an unusual situation.

MR. ARMKNECHT: I'll serve them, your honor, I just, you know, if it's going to be dismissed, I guess I'll serve them anyway, I'll serve them, but I'm not going to bring them in for Title II purposes....

THE COURT: You're not going to, you're not going to be successful against them under Title III.

The district court then vacated the stay of its October 1 order dismissing the action against Events, thereby reinstating the dismissal order.

3. Stipulated Dismissal of Action Against Cowboys

Next, following the district court's suggestion, Disabled Rights and Cowboys stipulated to dismissal of the action against Cowboys. Pursuant to the stipulation, the district court dismissed Cowboys from the action. The stipulation provided that the "Court's entry of the Order of dismissal shall constitute an order which may be appealed ... as though the Order related to a contested, and not a stipulated matter."

4. Dismissal of Events, Cowboys, and University System, and Entry of Judgment

On March 28, 2002, Disabled Rights filed a Second Amended Complaint replacing the UNLV Center with University System, leaving Events and Cowboys as defendants, and raising no new causes of action.⁶

University System, having been served, moved to dismiss for lack of subject matter jurisdiction. The argument was that as a public entity, University System could not be sued under Title III. Events and Cowboys also moved to dismiss the complaint, arguing that the court's earlier orders dismissing the action against each of them precluded Disabled Rights from naming them as defendants in the second complaint.

The district court granted all three ...