Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

GOLDEN DAWN SHOPS v. HUD

September 1, 1971

GOLDEN DAWN SHOPS, INC., a Delaware corporation, Plaintiff,
v.
The DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT et al.


Fullam, District Judge.


The opinion of the court was delivered by: FULLAM

FULLAM, District Judge.

 Plaintiff, Golden Dawn Shops, Inc. (Golden Dawn) is a women's specialty chain, its main store located at 1232 Market Street in Philadelphia. This property is located within an area designated by the defendant Redevelopment Authority of the City of Philadelphia (RDA) as the "Market Street East Urban Renewal Area," and condemned by RDA pursuant to state law. Plaintiff now presents several federal claims, challenging the authority of defendant United States Department of Housing and Urban Development (HUD) to finance RDA's urban renewal program, and of RDA to proceed with the project. RDA has moved to dismiss the complaint on the grounds that this Court is without subject matter jurisdiction over the case, and that plaintiff's complaint fails to state a claim on which relief can be granted.

 Background

 RDA is established pursuant to the Urban Redevelopment Law of 1945, 35 Purdon's Pa. Stat. Ann. § 1701 et seq. (1964), as amended (Supp. 1971). Inter alia, it has authority to take real property by eminent domain, for the purpose of replanning and redeveloping blighted areas within the City of Philadelphia. Id. §§ 1702, 1709(i). Under this authority, RDA designated the area, including plaintiff's store, as a blighted area, and commenced proceedings in the Court of Common Pleas of Philadelphia County under the Eminent Domain Code of 1964, 26 Purdon's Pa. Stat. Ann. (Supp. 1971), to acquire the property. Plaintiff objected to the taking on various grounds raising issues of state law. The trial court held for RDA, and an appeal is now pending before the Commonwealth Court. During the pendency of the appeal, RDA applied to the Court of Common Pleas for a writ of possession, which was granted, but the execution of which has been stayed until the appeal is argued before the Commonwealth Court on September 9, 1971.

 HUD is authorized to make available to local authorities funds in the form of loans and grants for the purpose of assisting in community improvement. 42 U.S.C. §§ 1452-55 (1964), as amended (Supp. I 1969). The statute under which such assistance is authorized requires that the state authority established various programs to aid in the relocation of persons and businesses displaced by an urban renewal project. 42 U.S.C. § 1455(c)(1) (1964); Uniform Relocation Assistance and Real Property Acquisition Policies for Federal and Federally Assisted Programs Act, Pub. L. No. 91-646, 84 Stat. 1894, §§ 205, 210 (1971) (to be codified at 42 U.S.C. §§ 4625, 4630). Plaintiff alleges that RDA has not complied with these provisions, and seeks to enjoin the expenditure of federal or state funds, and further activities, with respect to the Market Street project. Plaintiff further seeks a declaration that 42 U.S.C. § 1455(c) (1964) violates the equal protection clauses of the Fifth and Fourteenth Amendments because it provides greater protection for individuals and families displaced by a project than for business concerns.

 Plaintiff next alleges that the Market Street project's goals do not satisfy the criteria established by HUD for determining priority consideration. For this further reason, plaintiff demands injunctive relief against federal funding, state expenditures, and further activities.

 Finally, plaintiff demands that HUD and RDA be enjoined "from undertaking any activities to evict, vacate, or otherwise interfere with the business of Golden Dawn, directly or indirectly, until HUD and this Court rule upon the merits of the allegations set forth herein."

 Discussion

 Plaintiff has properly alleged the existence of an issue arising under federal law. The statute establishing federal question jurisdiction, 28 U.S.C. § 1331 (1964), requires an allegation of an amount in controversy exceeding $10,000, with which plaintiff has not complied. Since it appears likely that the amount in controversy does exceed $10,000, leave will be granted to the plaintiff to supply the necessary allegation by amendment.

 In its motion to dismiss, defendant RDA contends that the Federal Anti-Injunction Act, 28 U.S.C. § 2283 (1964), deprives this Court of jurisdiction to entertain plaintiff's action. That section provides as follows:

 
"A court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments."

 RDA argues that the relief sought by plaintiff would deprive RDA of the fruits of its state court proceedings, and therefore would violate § 2283.

 To the extent that plaintiff seeks to enjoin defendants *fn1" from taking steps to evict plaintiff, the RDA's argument is valid. *fn2" Since RDA has commenced an action in state court to have Golden Dawn evicted, the requested relief would fly in the face of § 2283's bar against interference with ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.