Umc Development, LLC v. District of Columbia , 982 F. Supp. 2d 13 ( 2013 )


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  •                             UNITED STATES DISTRICT COURT
    FOR THE DISTRICT OF COLUMBIA
    UMC DEVELOPMENT, LLC and
    JACKSOPHIE GSCH, LLC,
    Plaintiffs,
    v.                                         Civil Action No. 13-899 {GK)
    DISTRICT OF COLUMBIA, et al.,
    Defendants.
    MEMORANDUM OPINION
    Plaintiffs          UMC   Development,         LLC    ("UMC")        and     Jacksophie
    GSCH, LLC ( "Jacksophie")             (collectively,         "Plaintiffs") bring this
    action against the District of Columbia and its Mayor,                                   Vincent
    Gray        (collectively,        the     "District         Defendants") ,            Specialty
    Hospital       of     Washington-GSE        Holdings,         LLC         ("SHW-GSE")       I    CMC
    Realty,       LLC    ("CMC"),     and    Not-for-Profit-Hospital,                   Corporation
    ("NFPHC")      (collectively,         "Defendants")         for wrongful foreclosure,
    breach of contract, and related claims.
    This matter is before the Court on Plaintiffs'                                Motion to
    Remand the case to the District of Columbia Superior Court [Dkt.
    No.    6].          Upon    consideration        of    the        Motion,     the        District
    Defendants' Opposition [Dkt. No. 7], Plaintiffs' Reply [Dkt. No.
    8], NFPHC's Notice of Consent to Accept Service of Process [Dkt.
    No.    10],    the     District       Defendants'       Sur-Reply           [Dkt.     No.       13],
    Plaintiffs'         Response     to     Docket   Nos.       10,     11,     and     13    and     in
    Support        of    Plaintiffs'        Motion          to     Remand         [Dkt.          No.     15]   1
    Plaintiffs' Evidentiary Objections to Docket No.                                  11-1        [Dkt. No.
    14],     NFPHC' s     Opposition to Plaintiffs'                    Motion to Remand                  [Dkt.
    No. 20], and NFPHC's Notice of Joinder in Removal                                  [Dkt. No. 24],
    and     the    entire      record herein,          and       for   the   reasons             set   forth
    below,        the    Motion    to    Remand        is    granted         as       to     Plaintiffs'
    District of Columbia claims and denied as to Plaintiffs' federal
    claims.
    1
    I .      BACKGROUND
    This action arises out of a 2007 public-private development
    project between the             District,          Specialty Hospitals                 of America,
    LLC      ("SHA"),     and     various     SHA       entities,        which         was        aimed     at
    rescuing       the    District's        Greater         Southeast        Community            Hospital
    ("Hospital")     from financial          insolvency.            Compl.        ``     1,    16,     17.
    As part of this undertaking, the District entered into a limited
    partnership         agreement       with Defendant            SHW-GSE,        a       subsidiary of
    SHA, 'pursuant to which the District invested $49 million for the
    purpose        of    refinancing        the     Hospital           and    redeveloping                 its
    surrounding property.               Compl.    ``    20-25.         Another SHA subsidiary,
    Defendant CMC,          was created to own and manage the real property
    containing and surrounding the Hospital.                            Compl.        ~    13.      SHW-GSE
    1
    The facts and procedural background are taken from the
    Complaint ("Compl.") [Dkt. No. 1-1] and the undisputed facts set
    forth in the parties' submissions.
    -2-
    and     CMC    then       entered    into     a     joint        venture      with        Plaintiff
    Jacksophie through which Plaintiff UMC was to acquire some of
    the land surrounding the Hospital from CMC,                              along with related
    development rights.            Compl.    ``   29, 30, 32.
    Despite      the    infusion of more          than $50            million of public
    funds        into    the    refinancing       and     redevelopment                project,       the
    Hospital's financial condition continued to deteriorate.                                     Compl.
    ``    46-59.        In 2010,   the District declared the parent developer
    in default          of various       loan agreements,             and     foreclosed on the
    land containing and surrounding the Hospital, including the lots
    to be acquired by UMC.               Compl.   ``    60-71.        Defendant CMC sued the
    District to prevent            foreclosure,         but dropped its case in 2011
    after settling with the District.                      Compl.           ``   69,    73;    see CMC
    Realty,       LLC    v.    Dist.    of   Columbia,         No.     2010      CA    004571        (D.C.
    Super. Ct.)         (the "Foreclosure Action").
    On    May    31,    2013,     Plaintiffs       filed        this      action        in     the
    Superior Court for the District of Columbia bringing claims for,
    inter alia,         wrongful       foreclosure,      breach of contract,                   specific
    performance, restitution, unjust enrichment, breach of fiduciary
    duty, tortious interference with prospective economic advantage,
    and violations of the Due Process Clause and the Takings Clause
    of the Fifth Amendment.              See Compl.       ``    76-147.
    -3-
    On June 14,          2013,      the District Defendants removed the case
    to this Court pursuant                   to 
    28 U.S.C. §§ 1441
    (a)       and 1446.         See
    Notice of Removal,                 ``   2-3    [Dkt. No.      1] . 2    The Notice of Removal
    stated that Defendant NFPHC consented to removal,., 
    id. at 1
    ,    but
    did      not        indicate        whether      Defendants            SHW-GSE       and      CMC     also
    consented.
    On July 12,           2013,      Plaintiffs moved to                 remand the case to
    Superior            Court,    arguing         that    the   District          Defendants'       removal
    was   procedurally defective                    because       they had         not     obtained SHW-
    GSE' s    and CMC' s          timely consent to removal.                       [Dkt.    No.    6] .      On
    July 26,            2013,    the    District         Defendants        filed    an Opposition to
    the Motion            ("Dist.       Defs.'      Opp'n")      [Dkt.      No.    7].      On July 30,
    2013,     Plaintiffs filed a Reply ("Pls.' Reply")                              [Dkt. No.       8].      On
    August         5,     2013,     the      District          Defendants         filed     a     Sur-Reply
    ( "Dist. Defs.' Sur-Reply")                    [Dkt. No. 13] .
    Separately,           on       August       2,     2013,       NFPHC,        who      had      not
    previously            appeared      in    the    action,       filed      an     appearance           along
    with a Notice of Consent to Accept Service of Process Rendering
    Plaintiffs'           Motion to Remand Moot                  ("NFPHC's Notice")               [Dkt.    No.
    2
    The District Defendants' Notice of Removal mis-cites 
    28 U.S.C. § 1441
     (b) as the basis for removal, apparent;ly based on the
    version of that provision in existence prior to December 7,
    2011.    See Dist. Defs.' Notice of Removal ~ 3.      There is no
    dispute,   however,  that removal is premised on the Court's
    federal     question   jurisdiction,    rather   than    diversity
    jurisdiction.   See Dist. Defs.' Opp'n at 5-6; Pls.' Reply at 2.
    -4-
    10] .         NFPHC' s Notice indicated that it also sought removal of
    the action, and contended,               therefore,          that even if the District
    Defendants'           removal was procedurally defective,                    its own timely
    removal rendered the basis of Plaintiffs' Motion to Remand moot.
    NFPHC's Notice was accompanied by the written consent to removal
    of      all    Defendants.          [Dkt .   No .     10 -1] .      On     August      9,        2013,
    Plaintiffs filed a Response to NFPHC' s Notice and the District
    Defendants'           Sur-Reply    ("Pls.'    Sur-Sur-Reply")              [Dkt. No.        15]    and
    a      Notice      of   Evidentiary      Objections           to   the      exhibit         to     the
    District          Defendants'      Sur-Reply        [Dkt.    No.   14] .      On August            15,
    2013, NFPHC filed an Opposition to Plaintiffs' Motion to Remand
    ( "NFPHC' s    Opp' n")   [Dkt.    No.   20] .          Plaintiffs      did    not      file     a
    further response. 3
    II.       STANDARD OF REVIEW
    Under the federal removal statute "any civil action brought
    in a       State court        of which the district                courts     of    the United
    States         have     original      jurisdiction,          may    be      removed         by     the
    defendant or the defendants, to the district court of the United
    States for the district and division embracing the place where
    3
    On August 28, 2013, NFPHC also filed a Notice of Joinder in
    Removal   Petition  Filed by    [the  District   Defendants]  or,
    Alternatively,   Removal  by  [NFPHC]   [Dkt.  No.   24].    This
    submission appears to have been filed for the purpose of
    formally declaring NFPHC's intent to remove the action, although
    its August 2 Notice [Dkt. No. 10] also conveyed that intent.
    -5-
    such action is pending."                     
    28 U.S.C. § 1441
    (a).           Where the case
    stated      by   the         plaintiff's       initial        complaint         is    removable,         a
    defendant must file its notice of removal within 30 days of the
    time it is formally served with the summons and the complaint.
    See 
    28 U.S.C. § 1446
    (b) (1); Murphy Bros.,                 Inc. v. Michetti Pipe
    Stringing, Inc., 
    526 U.S. 344
    , 347-48 (1999).
    Where,     as here,          an action has been removed solely pursuant
    to 28 U.S. C.        §       1441 (a),     "ail defendants who have been properly
    joined and served must join in or consent to the removal of the
    action."         
    28 U.S.C. § 1446
     (b) (2) (A).         Courts in this District
    have    construed            this    provision      to    require        that        each       defendant
    consent to removal within 30 days of the time that defendant is
    served.      See Ballard v.               Dist.    of Columbia,          
    813 F. Supp. 2d 34
    ,
    38     (D.D.C.       2 011)         (citing       cases);         see
    -----
    also         28     U. S . C.   §
    1446 (b) (2) (B) .
    If    a    defendant's              notice        of       removal       is     procedurally
    defective, a plaintiff may, within 30 days of such removal, move
    the court to remand the case back to state court.                                     See 
    28 U.S.C. § 1447
     (c).           Because         federal     courts        are      courts         of     limited
    jurisdiction, the removal provisions are strictly construed, and
    any doubts about removal should be resolved in favor of remand.
    See Shamrock Oil               &    Gas Corp.      v.    Sheets,        
    313 U.S. 100
    ,    104-09
    (1941); Diaz v. Sheppard, 
    85 F.3d 1502
    , 1505 (11th Cir. 1996).
    -6-
    III. ANALYSIS
    Plaintiffs'         primary        contention          is   that       the    District
    Defendants'         Notice of Removal was defective because it was not
    accompanied by the timely consent of SHW-GSE and CMC.                               See Pls.'
    Mem.    at 2-5.         The District Defendants argue that they were not
    required to obtain the consent of SHW-GSE and CMC because SHW-
    GSE and CMC had not yet been served when the case was removed.
    Dist. Defs.' Opp'n at 2-4.
    Although the parties spend the better part of their papers
    debating these points,             the Court need not reach them.                     Section
    1446 (b)      provides that      "[i] f    defendants are served at different
    times,     and a later-served defendant files a notice of removal,
    any    earlier-served defendant                may    consent      to   the    removal   even
    though that earlier served defendant did not previously initiate
    or    consent    to     removal . "       
    28 U.S.C. § 1446
    (b) (2) (C)       (emphasis
    added) .       As     discussed,      NFPHC' s       August    2   Notice     conveyed     its
    independent intent to remove the case with the consent of all
    Defendants.         See NFPHC's Notice & Exhibit B (emails dated August
    1,    2013)     [Dkt.    Nos.   10,    10-1].         Accordingly,        NFPHC' s    removal
    renders any oefect in the District Defendants'                          removal moot,       so
    long as it was timely.
    -7-
    A.     NFPHC's Removal Was Timely
    Plaintiffs         contend       that    NFPHC's          removal         was    not       timely
    because       it     was     filed       more    than        30       days    after       Plaintiffs
    purportedly          served    NFPHC      by    mailing           a   copy     of       the    summons,
    Complaint       and initial order to the Mayor and the District of
    Columbia Office of the Attorney General.                               Pls.' Sur-Sur-Reply at
    6.
    In    response,       NFPHC points            out    that      Plaintiffs'            counsel's
    own     affidavit       establishes        that       she     never       attempted           to    serve
    NFPHC through the Mayor and the Attorney General,                                        but    instead
    endeavored to effect service through the District of Columbia's
    Superintendent of Corporations.                       NFPHC's Opp'n at 5-6; see also
    Affidavit of Heather H. Martin                    ~    4     [Dkt. No.        8-1]        NDPHC also
    maintains       that       it would make         no difference               if     Plaintiffs had
    served       NFPHC     through     the     Mayor       and     Attorney           General       because
    NFPHC could not be served through those offices; instead, it was
    required       to     be    served       through       its        chief      executive          officer
    pursuant      to Rule        4 (j) (2)    of    the D.C.          Superior Court               Rules of
    Civil    Procedure.           NFPHC' s      Opp' n      at    2-4.           Accordingly,           NFPHC
    contends that it was not properly served,                                and the 30-day time
    period for removal not triggered, until its counsel consented to
    accept service on July 30, 2013.                      
    Id. at 2-3
    .            The Court agrees.
    -8-
    The    Supreme          Court       has    held        that        the    30-day         period        for
    removal under 
    28 U.S.C. § 1446
    (b) does not run until a defendant
    is     brought      under       the     court's         authority           by    formal         service        of
    process       (or waiver of             such service).                 See Murphy Bros. ,                    Inc. ,
    526    u.s.    at   347-48.           This    is true even if the defendant knows
    about the suit earlier and has obtained a copy of the complaint.
    
    Id. at 348
    ;    see also Quality Loan Serv.                            Corp.      v.    24702       Pallas
    Way,    Mission       Viejo,       CA       92691,       
    635 F.3d 1128
    ,      1133           (9th    Cir.
    2011)       ("[A]ctual          notice       of      the       action        is     insufficient                [to
    trigger the         3 0 -day removal period] ;                      rather,       the defendant must
    be     'notified       of       the     action,          and        brought         under         a     court's
    authority,       by formal process,'                    before the removal period begins
    to run.")      (citation omitted).
    District      of        Columbia          law    controls           as    to    when          effective
    service       occurred.               See         City     of        Clarksdale             v.        Bell South
    Telecomm.,          Inc.,       
    428 F.3d 206
    ,        210        n.6      (5th         Cir.        2 005)
    (explaining that            a    court       "look [s]         to    state       law to verify that
    service of process effectively brought the defendant within the
    state       court's    jurisdiction")                (citing         Lambert        Run      Coal       Co.     v.
    Baltimore & Ohio R.R.,                  
    258 U.S. 377
    ,        382    (1922)).             The parties
    agree that D.C.             Superior Court Civil Rule 4 ( j)                           governs service
    on NFPHC because it is an "instrumentality" of the District of
    -9-
    Columbia.             See Pls.'          Sur-Sur-Reply at 6             [Dkt.    No.    15];   NFPHC's
    Opp'n at 2-4.
    The parties disagree,                   however,      as to whether subsection 1
    or    2    of    Rule       4 (j)   applies.          Plaintiffs         argue       that    the    Court
    should apply Rule 4(j) (1), which governs service on the District
    of Columbia and its officers and agencies, and requires delivery
    of the summons,               complaint,          and initial order to the offices of
    the       Mayor       and     Corporation          Counsel,       and,     if    applicable,            the
    officer         or     agency       at     issue.         See    D.C.     Super.       Ct.     Civ.      R.
    4(j)(1).             NFPHC     maintains,         on the        other hand,          that    the    Court
    should apply Rule 4(j) (2),                   which governs service on any "state,
    municipal             corporation,           or     other        governmental           organization
    subject          to     suit,"       and     requires           delivery        of     the     summons,
    complaint,            and    initial       order     to    the    entity's           chief   executive
    officer.          See D.C. Super. Ct. Civ. R. 4 (j) (2) . 4
    The    Council       of   the District           of    Columbia created NFPHC as
    "an       instrumentality            of    the      District"      with     a        "separate      legal
    existence within the District government," and the power to sue
    and be       sued in its own corporate name.                             See 
    D.C. Code §§ 44
    -
    951.02,         44-951.06.          By contrast,           the D.C.      Court of Appeals has
    4
    As an alternative, Rule 4 (j) (2) also permits service in the
    manner prescribed by the State to which the entity belongs, but
    since, as discussed below, NFPHC is an entity of the District of
    Columbia, there is no relevant alternative in this case.
    -10-
    "consistently found"             that agencies and noncorporate departments
    within the District of Columbia government generally cannot be
    sued     in    their       own   name.       See        D.C.    Metro.        Police    Dep't    v.
    Fraternal Order of Police/Metro.                        Police Dep't Labor Comm.,                
    997 A.2d 65
    ,     74      (D.C.     2010)         (observing         that      a   "noncorporate
    department within the District government" is presumptively not
    a    "separate        suable     entity")          (citations          and    quotation       marks
    omitted) .       Accordingly, NFPHC is not an "agency" of the District
    of Columbia subject              to service under Rule 4 (j) (1),                      but    is an
    "other governmental organization,"                       which is subject to service
    under Rule 4 (j) (2).
    Plaintiffs argue that Rule 4(j) (2)                         does not apply because
    it     "mirrors"      an    analogous       provision          in     the    Federal    Rules     of
    Civil Procedure,           and since the federal provision does not apply
    to instrumentalities of the United States,                                  the D.C.    provision
    does not apply to instrumentalities of the District of Columbia.
    Pls.'    Sur-Sur-Reply at 7.                Plaintiffs ignore the fact that the
    federal        rule      applies     to      "other        state-created          governmental
    organization[s]"            whereas        the     D.C.        rule     applies        to     "other
    governmental organization[s] ." Compare Fed. R. Civ. P. 4(j) with
    D.C.    Super.     Ct.     Civ. R.    4(j) (2)      (emphases added).              Because the
    federal        rule    explicitly         narrows        its    application        to        "state-
    created"       instrumentalities,           whereas the D.C.                rule does not and
    -11-
    because state law must be looked to for the purpose of verifying
    that service of process effectively brought the defendant within
    the   state    court   jurisdiction,     the       two     provisions       need       not
    operate in precisely the same manner.
    In any event,     the debate between Rule 4 ( j) ( 1)                and   (2)    is
    academic because Plaintiffs failed to satisfy either provision
    when they sent      NFPHC' s   summons   to    the    District        of   Columbia's
    Superintendent of Corporations rather than to the Mayor and the
    Corporation Counsel, or to NFPHC's chief executive officer.                            See
    Affidavit of Heather Martin ~ 4            [Dkt.     No.   8-1] . 5     Accordingly,
    NFPHC was     not   properly served until          its     counsel     consented to
    accept service on July 30, 2013.
    NFPHC filed its notice of removal on August 2, well within
    thirty days of July 30.         [Dkt. Nos.     10,       10-1].       Therefore,       its
    removal was timely,     and there is no justification for remanding
    the case because of any defect in the removal procedure.
    5
    Plaintiffs did serve the Mayor and the District of Columbia as
    defendants in this case, but such service could not achieve
    jurisdiction over NFPHC because separate service is required for
    each defendant.          See, e.g., Manago v. Dist. of Columbia, 
    934 A.2d 925
    , 926 (D.C. 2007) (noting a plaintiff's "obligation to
    timely serve each defendant with a summons and a copy of the
    complaint") (emphasis added) (citing Super. Ct. Civ. R. 4(c),
    (e) , ( j ) , ( 1 ) , and (m) ) .
    -12-
    B.     The Court Declines to Exercise Supplemental
    Jurisdiction Over Plaintiffs' D.C. Claims
    Plaintiffs also ask the Court                     to exercise              its discretion
    under 
    28 U.S.C. § 1367
    (c) to remand their D.C. law claims to the
    Superior       Court.            Pls.'    Mem.    at     9-10.          In    support        of     this
    request,        Plaintiffs               maintain        that      their            D.C.          claims
    substantially predominate over their federal                                 claims,       and that,
    under    the    doctrine          of     constitutional         avoidance,          their     federal
    claims need not be reached if they prevail on their D.C. claims.
    
    Id. at 9-10
    .          In     addition,       Plaintiffs       argue           that     judicial
    economy      favors     remanding          their D.C.       claims           to   Superior Court
    because      the     "D.C.        Superior       Court    is     right        now     adjudicating
    closely related claims                   in a parallel          suit,        Capital       Behavioral
    Health, LLC v. Dist. of Columbia, 2011 CA 009881 B (D.C. Super.
    Ct.)."       
    Id. at 10
    ; see also Pls.' Reply at 5.
    Defendants oppose remand of the D.C. claims, but they have
    not      addressed          Plaintiffs'           contention            that        such          claims
    predominate over the federal claims.                            Instead,          they argue that
    the Court is compelled to exercise jurisdiction because "section
    1367(a) authorizes a district court to exercise its supplemental
    jurisdiction in mandatory language."                            Dist.        Defs.'    Opp' n at       5
    (emphasis added by District Defendants)                          (citing Lindsay v. Gov' t
    -13-
    Employees          Ins.      Co.,    
    448 F.3d 416
    ,       421       (D.C.     Cir.    2006));           see
    also NFPHC's Opp'n at 7-8.
    There           is    no     dispute            that         the       Court        has         original
    jurisdiction over Plaintiffs'                          constitutional law claims, and the
    authority          to    exercise         supplemental              jurisdiction            over        the     D.C.
    claims,       which arise out of                   the       same    series of           transactions             as
    the constitutional claims.                         See Pls.'          Reply at 2,             5;    
    28 U.S.C. §§ 1331
    ,      1367 (a)            Defendants               are    correct          that     our       Court     of
    Appeals has held that where,                           as here,       supplemental jurisdiction
    is   authorized under 
    28 U.S.C. § 1367
    ,      a    district        court       cannot
    decline       to    exercise         it        unless        there    is      a   specific          basis        for
    doing so under the supplemental jurisdiction statute.                                                   Lindsay,
    
    448 F.3d at 421, 424
    .
    However,          section        1367 (c)       expressly grants                 district         courts
    the discretion to decline to exercise supplemental                                             jurisdiction
    over a     claim where:              " ( 1)      the    claim raises              a    novel       or    complex
    issue    of     State        law,        (2)    the     claim        substantially             predominates
    over    the     claim        or     claims        over        which      the      district          court        has
    original jurisdiction,                    (3)    the district court has dismissed all
    claims    over           which      it     has     original           jurisdiction,                or     (4)     in
    exceptional             circumstances,            there        are    other           compelling         reasons
    -14-
    for declining jurisdiction."               
    28 U.S.C. § 1367
    (c) . 6     Our Court of
    Appeals has recognized that these exceptions render supplemental
    jurisdiction
    a doctrine of discretion, not of plaintiff 1 s right.
    Its justification lies in considerations of judicial
    economy, convenience and fairness to litigants; if
    these are not present a federal court should hesitate
    to exercise jurisdiction over state claims
    Needless decisions of state law should be avoided both
    as a matter of comity and to promote justice between
    the parties, by procuring for them a surer-footed
    reading of applicable law.
    Women Prisoners of D.C. Dep 1 t of Corr. v. Dist. of Columbia,                             
    93 F.3d 910
    ,    920   (D.C.    Cir.    1996)     (quoting United Mine Workers of
    America v.     Gibbs,      
    383 U.S. 715
    ,     726     (1966))        (quotation marks
    omitted) .
    Two     statutory           grounds          for      declining            supplemental
    jurisdiction support         Plaintiffs 1         position.            First,    Plaintiffs,
    D.C. claims are four times as numerous as their federal claims,
    and provide a      far broader basis for relief.                          The D.C.    claims
    present contract,       property,        tort,     fiduciary duty,             and equitable
    theories,    whereas       the     two     federal        claims       invoke     relatively
    narrow grounds for relief under the Fifth Amendment.                                Further,
    Plaintiffs      are     correct           that,         under       the        doctrine    of
    constitutional     avoidance,            success     on        their    D.C.     claims   may
    6
    The term "State" in Section 1367(c) includes the District of
    Columbia. 
    28 U.S.C. § 1367
    (e).
    -15-
    negate the need to reach the constitutional claims at all.                                       See
    Lyng v. Nw.        Indian Cemetery Protective Ass'n,                       
    485 U.S. 439
    ,         445
    (1988)     ("A fundamental             and    longstanding principle of                   judicial
    restraint     requires          that    courts        avoid      reaching      constitutional
    questions      in     advance      of        the    necessity         of    deciding        them.")
    (citation omitted) .
    Second,        Plaintiffs'         D.C.       claims       raise      novel    and     complex
    issues   of    D.C.      law.      As    already         discussed,         NFPHC,    which was
    created by the District to acquire and operate the Hospital's
    assets      after        foreclosure,               is      a     special           governmental
    instrumentality with its own authorizing legislation under the
    D.C. Code.         See 
    D.C. Code § 44-951.01
    ,         et seq.       Similarly,        the
    public-private partnership between the District of Columbia and
    SHA to revive the ailing Hospital derives from specific District
    of Columbia legislation, namely, the "East of the River Hospital
    Revitalization Emergency Amendment Act                           of   2007,"       Compl.    ~   19,
    and specific quasi-public, quasi-private transactions authorized
    pursuant      to    such     legislation.                There        is    little     case      law
    addressing         the     unique        character          of        these    entities          and
    transactions,       and therefore,             resolving Plaintiffs'               claims would
    inevitably require          this       Court       to venture         into uncharted legal
    territory, with potentially significant consequences.
    -16-
    For example,         the District Defendants have already moved to
    dismiss all of the claims against them on grounds of sovereign
    immunity.         See Dist.         Defs.'     Mot.       to Dismiss All Claims in the
    Complaint Against            Them at          13-22       [Dkt.    No.       1 7] .     . Whether the
    District Defendants are immune from tort liability in this case
    turns     on    whether        their         actions        involved           "the      permissible
    exercise of policy judgment[,]"                       a    question the D.C.                Court of
    Appeals has acknowledged "is not always an easy task" to answer.
    Aguehounde      v.     Dist.       of     Columbia,        
    666 A.2d 443
    ,       447-48        (D.C.
    1995).     The answer turns solely on D.C. law.                                See e.g., Owen v.
    City of Independence,                
    445 U.S. 622
    ,     649      (1980)          (discussing the
    traditional        "rationale           underlying        the     common-law            immunity        for
    'discretionary'            functions"        of municipalities)                (emphasis added);
    Aguehounde,          
    666 A. 2d at 447
          ("Under          the       common       law,       a
    municipality is immune from suit for decisions made pursuant to
    the     exercise      of     discretion,         but       not     for       actions       which       are
    ministerial.")         (emphasis added; citations omitted).
    Because      the     D.C.       courts      have        not     yet      interpreted            the
    statutory and         contractual            authority creating                 the     East     of     the
    River    Hospital          Revitalization           Project,          this     Court      would       have
    little     to     guide       it     in      determining          whether         the     District's
    decision to foreclose on the land surrounding the Hospital was a
    permissible exercise of policy judgment.                                Accordingly,           such an
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    issue     is     more        appropriately           addressed    by    the      District   of
    Columbia courts.             See Women Prisoners of D.C. Dep't of Corr., 
    93 F. 3d at 922
              ("The Supreme Court has counseled that                      'the proper
    function of [a]          federal court is to ascertain what the state law
    is,   not      what    it     ought    to    be, '    and we     have   observed that        'a
    federal court should be reluctant to retain pendent jurisdiction
    over a question for which state jurisprudence gives inadequate
    guidance.'")          (citations and quotation marks omitted).
    Separately,          determining whether Plaintiffs are entitled to
    equitable relief in the event that the legal remedies they seek
    are   denied,         will     involve      a   nuanced       balancing     of    public    and
    private interests.              As with the question of immunity,                    there is
    no direct guidance from the District of Columbia courts as to
    how this Court should weigh the public and private interests in
    this case, a consideration that favors remand.                            Cf. 
    id.
     at 921-
    22    (agreeing         "that       the     novelty      of    appellees'        request    for
    equitable relief                       precluded the exercise of supplemental
    jurisdiction").
    The      District        of    Columbia        courts    are   better      equipped    to
    address Plaintiffs'             D.C.      claims,      not only because they present
    novel and complex legal issues, but also because they implicate
    distinctly local policy interests, and may affect the District's
    ability     to    enter       into     similar public-private             ventures    in    the
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    future.       See 
    id. at 923
                  ("'In general, principles of comity and
    the     desirability             of     surer-footed      reading          of    applicable     law
    support the determination of state claims in state court.
    Moreover,        the       district       court     should       not       retain    jurisdiction
    because this case directly implicates the processes by which a
    locality       governs           itself.'")       (emphasis          in    original)      (quoting
    Grano v. Barry, 
    733 F.2d 164
    , 169 (D.C. Cir. 1984)).
    Further,         although it is not an express consideration under
    
    28 U.S.C. § 1367
    (c), the Court notes that judicial economy will
    be    served        by    remanding        the    state     claims          to    Superior    Court
    because that court is presently presiding over a related case,
    and     has    presided           over    several       related        cases,       including   the
    Foreclosure Action.                    See CBH v. Dist. of Columbia, 2011 CA 9880
    (D.C.    Super.      Ct.);        CMC Realty,       LLC v.       Fenty,         2010 CA 004571 B
    (D.C.     Super.         Ct.);    UMC Development,          LLC v.         Specialty Hasp.       of
    Washington-GSE Holdings, LLC, 2009 CA 9233 (D.C. Super. Ct.).
    Accordingly,             the    Court    declines       to     exercise      supplemental
    jurisdiction over Plaintiffs D.C. claims pursuant to 
    28 U.S.C. § 13
     6 7 ( c) ( 1 ) and ( 2 ) .         Such claims shall be severed from this case
    and     remanded          to     the     Superior       Court        for    resolution.         The
    remaining        Constitutional             claims       shall       be     dismissed     without
    prejudice.
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    IV. CONCLUSION
    For the foregoing reasons,        Plaintiffs' Motion to Remand is
    granted    in   part.   An   Order    shall    accompany   this   Memorandum
    Opinion.
    October 8, 2013                                    /s/
    Gladys Kessler
    United States District Judge
    Copies to: attorneys on record via ECF
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