Transit Express v. Ettinger, No. 00-1987
| Court | United States Courts of Appeals. United States Court of Appeals (7th Circuit) |
| Writing for the Court | Before COFFEY, RIPPLE, and ROVNER; COFFEY |
| Citation | 246 F.3d 1018 |
| Parties | (7th Cir. 2001) TRANSIT EXPRESS, INCORPORATED, Plaintiff-Appellant, v. JOEL P. ETTINGER, Regional Administrator of the Federal Transit Administration for Region V, U.S. Department of Transportation, Defendant-Appellee |
| Decision Date | 12 April 2001 |
| Docket Number | No. 00-1987 |
Page 1018
v.
JOEL P. ETTINGER, Regional Administrator of the Federal Transit Administration for Region V, U.S. Department of Transportation, Defendant-Appellee.
Decided April 12, 2001
Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 99 C 3415--Charles P. Kocoras, Judge.
Page 1019
Page 1020
Before COFFEY, RIPPLE, and ROVNER, Circuit Judges.
COFFEY, Circuit Judge.
On May 21, 1999, Transit Express, Incorporated, filed a one-count complaint in the United States District Court for the Northern District of Illinois seeking declaratory relief and review of an administrative decision issued by the Federal Transit Administration. The complaint asserted that Transit Express had been improperly excluded from receiving monies from a federal program designed to provide transportation services to the elderly and persons with disabilities. The district court dismissed the complaint after ruling that the court lacked subject matter jurisdiction because there was no federal question involved in the case. We affirm.
I. BACKGROUND
A. Statutory and Regulatory Background
The Federal Transit Authority is a grant-making agency within the United States Department of Transportation authorized under Chapter 53 of Title 49 of the United States Code to award monetary grants to states in order that they may finance the planning, development, construction, and improvement of mass transportation facilities. 49 U.S.C. sec. 5310(f). The Wisconsin Department of Transportation ("WisDOT"), and therefore Wisconsin, is one of the participants in this program.
Under 49 U.S.C. sec. 5310, the "Elderly Persons and Persons with Disabilities Program," state agencies may apply directly to the Federal Transit Authority for funding so the agencies can meet the special transportation needs of the elderly and the disabled in their state. According to the FTA, the goal of the program is
to improve mobility for the elderly and persons with disabilities throughout the country. Toward this goal, FTA provides financial assistance for transportation services planned, designed, and carried out to meet the special needs of the elderly and persons with disabilities in all areas--urbanized, small urban, and rural.
FTA Circular 9070.1E.
Furthermore, Section 5310 funds are disbursed to the states through a formula that is based upon the number of elderly persons and persons with disabilities residing in each state as determined in the last U.S. census. Id. at Chapter II, paragraph 3. Once in receipt of federal funds, a state agency, in this case WisDOT, has the option of using the funds to either: (1) purchase equipment, such as vans and buses; or (2) subsidize services that transport elderly persons and persons with disabilities. 49 U.S.C. sec. 5323(a).
1. FTA Circulars 4220.1D and 9070.1E
The United States Secretary of Transportation is entrusted with the responsibility of promulgating rules and regulations establishing the standards for participation in the Section 5310 program. 49 U.S.C. sec. 5310(f). There are two FTA Circulars that are relevant to the disposition of the claims in this case: (1) Circular 9070.1E (the "Section 5310 Program Circular"); and (2) Circular 4220.1D (the "Third Party Procurement Circular"). Circular 9070.1E sets forth requirements that FTA recipients (state agencies) must adhere to when providing sub-grants to qualifying entities, such as non-profit organizations, under the Section 5310 program. Chapter I of the Section 5310 Program Circular states that a state agency that receives funds, in this case WisDOT, has the principal authority and responsibility for administering the Section 5310
Page 1021
program. WisDOT is responsible for notifying eligible local entities of funding availability, developing project selection criteria, determining applicant eligibility, and selecting projects for funding. FTA Circular 9070.1E, Chapter I.1
WisDOT implements the Section 5310 program by extending sub-grants to eligible, non-profit organizations serving the elderly and persons with disabilities needing transportation assistance that have made direct application to WisDOT for state assistance. The eligible non- profit organizations selected and approved by WisDOT, in turn, usually contract with private companies to provide the transportation services. However, it is undisputed that in 1997, WisDOT used all of its Section 5310 grant monies to purchase vans, rather than fund operating expenses for the non-profit organizations.
B. Transit Express's Complaints
1. Transit Express's State Administrative Complaint
Transit Express is a Wisconsin based, transportation service company that is not eligible to apply for or receive sub-grants from WisDOT under the Section 5310 program because it is a for-profit enterprise. On February 9, 1997, Transit Express filed an administrative complaint with WisDOT complaining that it had been unlawfully excluded from participating as a service provider for non-profit organizations that had received Section 5310 program funds from WisDOT funds during the fiscal 1997 grant cycle for a host of reasons.2 In its administrative complaint to WisDOT, Transit Express specifically claimed that: (1) Goodwill had contracted with Elder Care Lines, Inc. ("Elder Care Lines") for transportation services under the Federal Section 5310 program despite the existence of several improper conflicts of interest;3 (2) Goodwill, the Center for Independence, Curative Services, and the Jewish Center all required what Transit Express felt were excessive amounts of insurance coverage, which, in turn, barred Transit Express from participating in the 5310 Program; (3) the Section 5310 fund-recipients neglected to provide Transit Express with the selection criteria used to evaluate bids; and (4) the Center for Independence improperly selected Elder Care Lines to provide transportation services. On July 23, 1997, WisDOT denied the administrative complaint filed by Transit Express.
2. The Federal Administrative Complaint
On September 10, 1997, Transit Express filed a petition for administrative review with the FTA challenging WisDOT's disposition of its state complaint. On November 13, 1998, Joel Ettinger, the Regional Administrator of Region V of the FTA,4
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issued a decision denying the petition for administrative review, stating:
Before FTA gets to the merits of the allegations raised by Transit, a decision must be made as to whether FTA has jurisdiction over this dispute and, if so, on what legal authority should FTA make a decision. Transit has argued that FTA should review this issue because it is a matter of federal concern. Further, Transit believes that FTA Circular 4220.1D is applicable and that WisDOT has ". . . failed to either establish its own protest procedures or to follow them."
* * * *
WisDOT does not fund any contractual or purchase of service agreements as part of its Program even though these agreements would be eligible for federal assistance. The only funds that the recipients receive under the program are for the purchase of capital assets. FTA's procurement requirements would only apply to the contracts solicited to purchase vehicles. Transit is not complaining about the purchase of vehicles by the five not for profit entities but is instead complaining about the notification process associated with the private transportation provider coordination requirements under the Program. Therefore 4220.1D is not applicable to this matter.
Having made this original determination about the applicability of the 4220.1D to WisDOT's Program, FTA must turn to what are the implications of that decision. A review of the basis of the complaint tends to indicate that there are a number of substantive issues being raised by Transit such as the conflict of interest violations as well as the overly restrictive insurance requirements. WisDOT has pointed out in their brief that they should be the ones to interpret their own regulations. FTA agrees with WisDOT's position. FTA Circular 9070.1E clearly states that the principal authority and responsibility for administering the program resides with the designated state agency. To the extent that the arguments of Transit are...
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Snyder v. Smith, 1:13–cv–00576–SEB–DKL.
...allegations in the plaintiff's favor.” Franzoni v. Hartmarx Corp., 300 F.3d 767, 771 (7th Cir.2002); Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1023 (7th Cir.2001). We may, however, “properly look beyond the jurisdictional allegations of the complaint and view whatever evidence has b......
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Hale v. State Farm Mut. Auto. Ins. Co., 12-0660-DRH
...authorized by Article III of the Constitution and the statutes enacted by Congress pursuant thereto." Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1023 (7th Cir. 2001). Pursuant to 28 U.S.C. § 1331, "[t]he district courts shall have original jurisdiction of all civil actions arising un......
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Oneida Tribe of Indians of Wis. v. Vill. of Hobart, Case No. 10–C–137.
...allegations as true and draw reasonable inferences from those allegations in the plaintiff's favor.” Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1023 (7th Cir.2001) (citing Rueth v. EPA, 13 F.3d 227, 229 (7th Cir.1993)). However, the plaintiff bears the burden of establishing jurisdic......
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Veneruso v. Mount Vernon Neighborhood Health Ctr., Case No. 09–CV–8703 (KMK).
...the mere existence of federal funds in the lawsuit does not create a substantial federal question. See Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1024 (7th Cir.2001) (noting, in a case in which plaintiff received substantial federal funds, that “the mere existence of a federal regula......
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Snyder v. Smith, 1:13–cv–00576–SEB–DKL.
...allegations in the plaintiff's favor.” Franzoni v. Hartmarx Corp., 300 F.3d 767, 771 (7th Cir.2002); Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1023 (7th Cir.2001). We may, however, “properly look beyond the jurisdictional allegations of the complaint and view whatever evidence has b......
-
Hale v. State Farm Mut. Auto. Ins. Co., 12-0660-DRH
...authorized by Article III of the Constitution and the statutes enacted by Congress pursuant thereto." Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1023 (7th Cir. 2001). Pursuant to 28 U.S.C. § 1331, "[t]he district courts shall have original jurisdiction of all civil actions arising un......
-
Oneida Tribe of Indians of Wis. v. Vill. of Hobart, Case No. 10–C–137.
...allegations as true and draw reasonable inferences from those allegations in the plaintiff's favor.” Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1023 (7th Cir.2001) (citing Rueth v. EPA, 13 F.3d 227, 229 (7th Cir.1993)). However, the plaintiff bears the burden of establishing jurisdic......
-
Veneruso v. Mount Vernon Neighborhood Health Ctr., Case No. 09–CV–8703 (KMK).
...the mere existence of federal funds in the lawsuit does not create a substantial federal question. See Transit Express, Inc. v. Ettinger, 246 F.3d 1018, 1024 (7th Cir.2001) (noting, in a case in which plaintiff received substantial federal funds, that “the mere existence of a federal regula......