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No. 10098561
United States Court of Appeals for the Ninth Circuit
Mendocino Railway v. Jack Ainsworth
No. 10098561 · Decided August 29, 2024
No. 10098561·Ninth Circuit · 2024·
FlawFinder last updated this page Apr. 2, 2026
Case Details
Court
United States Court of Appeals for the Ninth Circuit
Decided
August 29, 2024
Citation
No. 10098561
Disposition
See opinion text.
Full Opinion
FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
MENDOCINO RAILWAY, a No. 23-15857
California corporation,
D.C. No. 4:22-cv-
Plaintiff-Appellant, 04597-JST
v.
JACK AINSWORTH, in his official OPINION
capacity as Executive Director of the
California Coastal Commission; CITY
OF FORT BRAGG, a California
municipal corporation,
Defendants-Appellees.
Appeal from the United States District Court
for the Northern District of California
Jon S. Tigar, District Judge, Presiding
Argued and Submitted May 15, 2024
San Francisco, California
Filed August 29, 2024
Before: Sidney R. Thomas, Consuelo M. Callahan, and
Gabriel P. Sanchez, Circuit Judges.
Opinion by Judge Callahan
2 MENDOCINO RAILWAY V. AINSWORTH
SUMMARY *
Colorado River Doctrine
The panel affirmed the district court’s judgment
dismissing Mendocino Railway’s federal lawsuit against the
City of Fort Bragg and the California Coastal Commission
under the Colorado River doctrine, which authorizes federal
courts to refrain from exercising jurisdiction where there are
parallel state court proceedings.
The Railway has resisted the City’s and Commission’s
efforts to regulate the use and maintenance of Railway
properties in the City. The City filed a state court action
seeking declaratory and injunctive relief requiring the
Railway to comply with local laws regulating the use and
maintenance of Railway properties in the City. The Railway
asserted that the declaratory and injunctive relief sought by
the City were barred by state and federal preemption. The
Railway subsequently filed this federal action, seeking a
declaration that the actions of the City and the Commission
to regulate the Railway were preempted, and an injunction
preventing the City and the Commission from interfering
with the Railway’s operations.
Applying the eight-factor Colorado River balancing test,
the panel held that the district court did not abuse its
discretion in dismissing the federal action. Only the
consideration that federal law provides the rule of decision
weighs against dismissal of the federal action, but not
substantially so given that the state court has concurrent
*
This summary constitutes no part of the opinion of the court. It has
been prepared by court staff for the convenience of the reader.
MENDOCINO RAILWAY V. AINSWORTH 3
jurisdiction to adjudicate federal preemption issues. Neither
an inadequate state court forum nor insufficiently parallel
proceedings, which preclude the use of a Colorado River
dismissal, are present here. The forum shopping and
piecemeal litigation considerations strongly favor dismissal,
and the order in which the forums obtained jurisdiction also
supports that outcome. The remaining factors are
neutral. On balance, therefore, this case meets the
requirements for a Colorado River dismissal.
COUNSEL
Paul J. Beard, II (argued), Pierson Ferdinand LLP, Los
Angeles, California, for Plaintiff-Appellant.
Patrick Tuck (argued), Deputy Attorney General, Public
Rights/ Land Use and Conservation; David G. Alderson,
Supervising Deputy Attorney General; Daniel A. Olivas,
Senior Assistant Attorney General; Rob Bonta, Attorney
General of California; California Department of Justice,
Oakland, California; Krista MacNevin Jee (argued), Jones &
Mayer, Fullerton, California; for Defendants-Appellees.
4 MENDOCINO RAILWAY V. AINSWORTH
OPINION
CALLAHAN, Circuit Judge:
Mendocino Railway (“Railway”) has resisted efforts by
the City of Fort Bragg (“City”) and the California Coastal
Commission (“Commission”) to regulate the use and
maintenance of Railway properties in the City. After the
City sued the Railway in state court, the Railway responded
by suing the City and the Commission in federal court. The
Railway appeals the district court’s dismissal of its federal
case under the Colorado River doctrine, which authorizes
federal courts to refrain from exercising jurisdiction where
there are parallel state court proceedings. See Colorado
River Water Conservation Dist. v. United States, 424 U.S.
800 (1976). We have jurisdiction under 28 U.S.C. § 1291
and we affirm.
I.
A.
The Railway operates a railroad line between Fort Bragg,
California and Willits, California, colloquially known as the
“Skunk Train.” 1 Related to its operation of the railroad, the
Railway owns multiple structures and properties within the
City, and since 2019 has acquired a total of approximately
300 acres of land adjacent to the Fort Bragg railway station.
The Railway has undertaken a variety of improvements,
repairs, and maintenance work related to the further
development of this property.
1
The railroad line was originally built in 1885, and historically has
operated tourist and non-tourist passenger services as well as freight
services. The Fort Bragg station is a fully developed rail facility.
MENDOCINO RAILWAY V. AINSWORTH 5
Starting in 2017, the City began discussions with the
Railway regarding the repair of dilapidated structures on
Railway property and the Railway’s purported failure to
obtain proper permits for its use of the property. This
includes permits under the California Coastal Act of 1976
(“Coastal Act”), Cal. Pub. Res. Code § 30000 et seq., which
applies to development in the coastal zone and which the
City implements through its local coastal program (“LCP”).
The Railway refused to obtain any permits, arguing that as a
public utility it was not subject to local regulation.
The Railway was also in discussions with the
Commission during this time. The Commission is the state
entity that administers the Coastal Act, including overseeing
LCPs, issuing permits, and pursuing administrative and civil
enforcement actions. Additionally, the Coastal Zone
Management Act (“CZMA”), 16 U.S.C. § 1451 et seq.,
grants the Commission authority to review certain federal
agency actions to ensure consistency with the Coastal Act.
See id. § 1456. The Commission sent letters to the Railway
in June and December of 2019 regarding the Commission’s
permitting jurisdiction, requesting information on the
Railway’s development activities, and discussing the
possible need for a permit under the Coastal Act or a
consistency determination under the CZMA. 2
B.
In October 2021, the City sued the Railway in
Mendocino County Superior Court. City of Fort Bragg v.
Mendocino Railway, Case No. 21CV00850 (the “State
2
We grant the Railway’s requests for judicial notice of the state court
docket (Exhibit 1) and the December 2019 letter from the Commission
to the Railway (Exhibit 2).
6 MENDOCINO RAILWAY V. AINSWORTH
Action”). The City’s complaint seeks a declaration that the
Railway is not a public utility and therefore is “subject to the
City’s ordinances, regulations, codes, local jurisdiction,
local control and local police power and other City
authority.” The City also seeks an injunction ordering the
Railway to comply with local laws. The Railway demurred,
arguing the state court lacked subject matter jurisdiction
given the Railway’s public utility status and that City
regulation was federally preempted by the Interstate
Commerce Commission Termination Act of 1995
(“ICCTA”) because of the Railway’s status as a federally
recognized railroad. The state court overruled the demurrer
on April 28, 2022, finding the Railway’s argument that
federal law preempted “all” local laws and regulations to be
overly broad, and noting the issue was not appropriate to
decide on demurrer given the fact-bound nature of the
preemption inquiry.
After unsuccessful petitions to the California Court of
Appeal and the California Supreme Court, 3 the Railway filed
its answer in the State Action on June 24, 2022. The Railway
asserted preemption as an affirmative defense, stating that
“[t]he declaratory and injunctive relief sought by [the City]
are barred by state and federal preemption . . . because
Defendant is a [California Public Utilities Commission]-
regulated public utility and a railroad within the jurisdiction
of the [federal Surface Transportation Board].”
3
We grant the Commission’s request for judicial notice of the
Commission’s complaint in intervention (Exhibit A) and the California
Supreme Court docket denying the petition for review (Exhibit B), and
deny the request as to the City and Commission motions to remand the
State Action (Exhibits C and D), and the order granting the remand
(Exhibit E).
MENDOCINO RAILWAY V. AINSWORTH 7
In July 2022, the City requested that the Commission
assume responsibility for enforcement of the Coastal Act and
the City’s LCP against the Railway. The Commission
agreed and sent a Notice of Violation to the Railway on
August 10, 2022. The notice asserted that the Railway was
undertaking unpermitted development which required a
coastal development permit and might also require a
consistency determination. It outlined the potential civil
fines and administrative penalties that could be assessed
against the Railway should it fail to obtain the proper
permits.
On August 9, 2022 (the day before the Commission sent
the notice), the Railway filed the federal action underlying
this appeal in the United States District Court for the
Northern District of California (the “Federal Action”). The
Railway sued the City and Jack Ainsworth in his official
capacity as Executive Director of the Commission. The
Railway’s complaint references a variety of actions it has
pursued or will pursue related to maintenance and other
work on its railway-related properties. The Railway seeks a
declaration that “the actions of the Commission and the City
to regulate [the Railway’s] operations, practices and
facilities are preempted under 49 U.S.C. § 10501(b)”; that
the Railway’s “activities are subject to the [Surface
Transportation Board’s] exclusive jurisdiction;” and that the
Railway “has the right under the ICCTA to undertake any
and all rail-related activities within the coastal zone . . .
without preclearance or approval from the Commission or
the City.” The Railway also seeks an injunction preventing
the City and the Commission from interfering with its
operations, including by imposing “any land-use permitting
or other preclearance requirement.” It further states it has
8 MENDOCINO RAILWAY V. AINSWORTH
not sought, and does not intend to seek, a permit from either
the City or the Commission.
Subsequently, back in state court, the Railway moved to
disqualify the judge who had overruled the demurrer, and the
motion was denied. The Commission moved to intervene in
the State Action on October 6, 2022. The Commission’s
complaint-in-intervention references the Railway’s
maintenance work “as well as other activities undertaken by
the Railway.” It notes the Railway’s contention that federal
law preempts the permitting requirements of the Coastal Act,
and asks the state court to declare that the Coastal Act and
LCP apply to the Railway’s actions and “are not preempted
by any state or federal law.” In addition, the Commission’s
complaint seeks civil penalties and exemplary damages for
the Railway’s alleged violations of the Coastal Act.
On October 20, 2022, the Railway removed the State
Action to the United States District Court for the Northern
District of California, invoking federal question jurisdiction
on the grounds that the State Action required resolution of
federal questions arising under the ICCTA. The City and the
Commission moved to remand the action to state court, and
on May 11, 2023, the district court granted the motion. 4
Meanwhile, the Commission and the City filed a joint
motion to dismiss the Federal Action based on, inter alia, the
Colorado River doctrine. On May 12, 2023, the district
court granted the joint motion, and the Railway filed a timely
notice of appeal.
4
Judge Tigar was assigned to both the Federal Action as well as the
removed State Action.
MENDOCINO RAILWAY V. AINSWORTH 9
II.
Federal courts have a “virtually unflagging
obligation . . . to exercise the jurisdiction given them.”
Colorado River, 424 U.S. at 817. In Colorado River, the
Supreme Court recognized that, in exceptional
circumstances, “considerations of wise judicial
administration, giving regard to conservation of judicial
resources and comprehensive disposition of litigation” can
support a stay or dismissal of federal litigation in favor of
parallel state proceedings. Ernest Bock, LLC v. Steelman, 76
F.4th 827, 836 (9th Cir. 2023) (citing Colorado River, 424
U.S. at 813, 817 (internal quotations and citations omitted)).5
However, a stay of federal proceedings in favor of state
proceedings “is the exception, not the rule.” Colorado River,
424 U.S. at 813. “Generally, as between state and federal
courts, the rule is that the pendency of an action in the state
court is no bar to proceedings concerning the same matter in
the Federal court having jurisdiction.” Id. at 817. (internal
quotation omitted).
Our review of a Colorado River dismissal proceeds in
two steps. First, we review de novo whether the facts of a
5
Generally, a stay rather than a dismissal is appropriate under Colorado
River as a stay ensures the federal forum will remain available if needed.
See Montanore Mins. Corp. v. Bakie, 867 F.3d 1160, 1166 (9th Cir.
2017). As recognized by the district court, however, “Colorado River
itself involved dismissal of a federal action.” The district court here
determined dismissal was appropriate given “the strength of the factors
and the degree to which their balance tips sharply in [the City and
Commission’s] favor.” The Railway does not raise this issue on appeal,
so we decline to consider it here. See R.R. Street & Co. v. Transport Ins.
Co., 656 F.3d 966, 978 n.8 (9th Cir. 2011) (affirming a Colorado River
dismissal and declining to address the stay-versus-dismissal issue when
it was not raised on appeal).
10 MENDOCINO RAILWAY V. AINSWORTH
particular case meet the requirements for a Colorado River
dismissal. Seneca Ins. Co., Inc. v. Strange Land, Inc., 862
F.3d 835, 840 (9th Cir. 2017). Second, if the requirements
are met, we review for abuse of discretion the district court’s
decision to dismiss the case. Id. “The underlying principle
guiding this review is a strong presumption against federal
abstention.” Id. at 842.
After determining there are concurrent state and federal
court proceedings involving the same matter (as there are
here), we use an eight-factor balancing test to determine if a
Colorado River stay or dismissal is appropriate. We
consider:
(1) which court first assumed jurisdiction
over any property at stake; (2) the
inconvenience of the federal forum; (3) the
desire to avoid piecemeal litigation; (4) the
order in which the forums obtained
jurisdiction; (5) whether federal law or state
law provides the rule of decision on the
merits; (6) whether the state court
proceedings can adequately protect the rights
of the federal litigants; (7) the desire to avoid
forum shopping; and (8) whether the state
court proceedings will resolve all issues
before the federal court.
R.R. Street & Co. v. Transport Ins. Co., 656 F.3d 966, 978–
79 (9th Cir. 2011). These factors are not applied as a
“mechanical checklist,” but rather in “a pragmatic, flexible
manner with a view to the realities of the case at hand.”
Moses H. Cone Mem’l Hosp. v. Mercury Constr. Corp., 460
U.S. 1, 16, 21 (1983). “[S]ome factors may weigh for or
MENDOCINO RAILWAY V. AINSWORTH 11
against the exercise of jurisdiction while others primarily
serve as a bar to stay or dismissal.” R.R. Street, 656 F.3d at
979. “Any doubt as to whether a factor exists should be
resolved against a stay” or dismissal. Travelers Indem. Co.
v. Madonna, 914 F.2d 1364, 1369 (9th Cir. 1990).
A.
We agree with the parties and the district court that the
first factor of jurisdiction over property at stake is
inapplicable given there is no specific property in dispute.
See R.R. Street, 656 F.3d at 979. We also agree that the
second factor addressing inconvenience of the federal forum
is neutral given the state and federal courthouses are less
than 200 miles apart. See Montanore, 867 F.3d at 1167
(treating a distance of 200 miles as neutral); Travelers, 912
F.3d at 1368 (finding 200 miles “not sufficiently great that
this factor points toward abstention”). 6
B.
The third factor focuses on piecemeal litigation.
“Piecemeal litigation occurs when different tribunals
consider the same issue, thereby duplicating efforts and
possibly reaching different results.” Am. Int’l Underwriters
(Philippines), Inc. v. Cont’l Ins. Co., 843 F.2d 1253, 1258
(9th Cir. 1988). The district court found this factor favored
dismissal given “the issue of federal preemption under the
ICCTA is squarely before the state court” and federal
6
We grant the Railway’s request for judicial notice of statements of
information for the Railway’s business filed with the California
Secretary of State (Exhibits 3 and 4). We deny the Railway’s request for
judicial notice of emails exchanged between the Commission and the
Federal Railway Administration (Exhibit 5) as well as emails between
the Commission and the Railway (Exhibit 6), and the Commission’s
request for judicial notice of the Commission’s public hearing notice.
12 MENDOCINO RAILWAY V. AINSWORTH
adjudication of the claim would “necessarily duplicate the
state court’s efforts and risk the possibility of . . . different
results.”
Some of our cases have noted that the mere potential for
piecemeal litigation is not sufficient on its own to warrant a
stay. See, e.g., Seneca, 862 F.3d at 842–43 (“A general
preference for avoiding piecemeal litigation is
insufficient . . . . Instead, there must be exceptional
circumstances present that demonstrate that piecemeal
litigation would be particularly problematic.”); Travelers,
914 F.2d at 1369 (finding no exceptional circumstances in
an insurance dispute dealing with ordinary contract and tort
issues). However, we have also found the potential for
piecemeal litigation to favor a stay when concurrent cases
would resolve common questions that could result in “waste
[of] judicial resources and cause confusion in the continuing
disputes between the parties.” See, e.g., Ernest Bock, 76
F.4th at 837 (citing R.R. Street, 656 F.3d at 979–80);
Montanore, 867 F.3d at 1168 (finding this factor favored a
stay when the same issue was present in both cases and
“crucial in both proceedings,” leading to duplication of
judicial effort and arguably conflicting results).
We agree with the district court that this factor weighs in
favor of dismissal. Although the State Action includes state
law claims, both it and the Federal Action squarely raise the
ICCTA preemption issue which the respective courts will be
required to address. Given the almost guaranteed
duplication of judicial effort on the preemption question and
the possibility of contradictory outcomes, the potential for
piecemeal litigation supports dismissal. See Ernest Bock, 76
F.4th at 837.
MENDOCINO RAILWAY V. AINSWORTH 13
C.
The district court also found dismissal supported by the
fourth factor, the order in which the forums gained
jurisdiction, because the State Action was filed first and had
progressed further than the Federal Action. This factor
considers not only the filing dates of each action, but also
“the progress made in each case ‘in a pragmatic, flexible
manner with a view to the realities of the case at hand.’”
Seneca, 862 F.3d at 843 (citing Moses H. Cone, 460 U.S. at
21). When a state action has been progressing for multiple
years with extensive discovery, substantive motions, orders
deciding multiple issues, or interlocutory appeals, this factor
favors abstention. See Montanore, 867 F.3d at 1168; see
also R.R. Street, 656 F.3d at 980 (finding significant
progress weighing in favor of a stay when the state court had
interpreted provisions of a contract, conducted discovery,
scheduled phased litigation, and issued an order concerning
foundational legal matters).
Although the State Action was filed first in time, it
preceded the Federal Action by less than a year, which is less
time than other cases have found to be significant. See, e.g.,
Montanore, 867 F.3d at 1168 (state court litigation had been
underway for six years). Additionally, while the State
Action has moved beyond the pleadings stage, it does not
appear that the state court has resolved any “foundational
legal claims” but rather decided the issues were
inappropriate for decision on demurrer. At the time the
Railway filed the Federal Action, there had not been any
discovery, and no trial date had been set. Although we do
not give this factor as much weight as the district court
appears to have done, we agree that this factor favors
dismissal.
14 MENDOCINO RAILWAY V. AINSWORTH
D.
On the fifth factor, all agree that the Federal Action is
governed by federal statute and federal preemption law as
the ICCTA determines whether the Railway falls within the
scope of the statute’s preemption clause. See 49 U.S.C.
§§ 10102, 10501(b). “[T]he presence of federal-law issues
must always be a major consideration weighing against
surrender.” Moses H. Cone, 460 U.S. at 26. We agree with
the district court that this factor therefore weighs against
dismissal but note that where (as here) “state and federal
courts have concurrent jurisdiction over a claim, this factor
becomes less significant.” Nakash v. Marciano, 882 F.2d
1411,1416 (9th Cir. 1989).
E.
The sixth factor looks to whether the state court
proceeding can adequately protect the rights of the federal
litigants. If it cannot, “a district court may not stay or
dismiss the federal proceeding.” R.R. Street, 656 F.3d at
981. We agree with the district court, and the Railway
concedes, that the Railway’s federal preemption claim can
be adjudicated by the state court. This factor thus does not
preclude dismissal. Seneca, 862 F.3d at 845 (noting that
“inadequacy of the state forum . . . may preclude abstention”
but an adequate state forum “never compel[s] abstention”).
F.
The forum-shopping factor considers “whether either
party improperly sought more favorable rules in its choice of
forum or pursued suit in a new forum after facing setbacks
in the original proceeding.” Seneca, 862 F.3d at 846. A
“chronology of events suggest[ing] that both parties took a
somewhat opportunistic approach to [the] litigation” is not
MENDOCINO RAILWAY V. AINSWORTH 15
sufficient to support a Colorado River dismissal. R.R. Street,
565 F.3d at 981. However, any indication that a party
“sought to manipulate the litigation or behaved vexatiously
to wind up in the forum of its choosing” supports a finding
of forum shopping. Seneca, 862 F.3d at 846.
The district court found this factor to weigh in favor of
dismissal given the Railway filed its Federal Action after the
state court overruled its demurrer, an unfavorable outcome.
At the time the district court considered this motion to
dismiss, the Railway had also attempted to disqualify the
state court judge and remove the State Action to federal
court. Although only the City’s state-law claims—which do
not implicate the Railway’s status under federal law—were
officially pending at the time the Railway filed the Federal
Action, the Railway had already raised federal preemption
as an affirmative defense in the State Action. As noted by
the district court, the Federal Action is “premised entirely on
the [preemption] argument rejected on demurrer.”
Furthermore, when the Railway filed the Federal Action, it
was aware of the Commission’s immediate intention to file
a complaint-in-intervention raising the federal preemption
issue. In consideration of these actions by the Railway, we
“reasonably infer” that the Railway had become “dissatisfied
with the state court and [sought] a new forum.” Montanore,
867 F.3d at 1169–71 (weighing forum shopping in favor of
a Colorado River stay when the plaintiff “filed in federal
court a few months after it received an unfavorable decision
in state court,” noting “the federal proceeding was aimed at
the same goal” and the plaintiff had sought to have the state
judge removed from the case) (internal quotation omitted).
The forum shopping factor weighs in favor of dismissal.
16 MENDOCINO RAILWAY V. AINSWORTH
G.
Under the parallelism factor, the eighth and final
consideration of a Colorado River analysis, we evaluate
whether the state court proceeding is substantially similar to
the federal proceeding. “Exact parallelism . . . is not
required. It is enough if the two proceedings are
substantially similar.” Nakash, 882 F.2d at 1416 (quotations
and citations omitted). However, “the existence of a
substantial doubt as to whether the state proceedings will
resolve the federal action precludes a Colorado River stay or
dismissal.” R.R. Street, 656 F.3d at 982 (internal quotations
omitted).
The district court found the proceedings to be
substantially similar given the Railway’s ICCTA
preemption defense in the State Action was the sole issue in
the Federal Action. The district court therefore found it
“difficult for the Court to conceptualize [the Federal Action]
as anything but a spinoff of the [State Action].” The
Railway, however, argues that our recent decision on this
parallelism factor in Ernest Bock, LLC v. Steelman—decided
after the district court’s order—precludes dismissal here.
In Ernest Bock, we reversed a Colorado River stay after
determining the state court proceeding might not fully
resolve the issues before the federal court and thus the
“proceedings [were] not sufficiently parallel to justify
abdication of federal jurisdiction.” 76 F.4th at 842. In that
case, the original state court action was a contract dispute
related to liability under a commercial mortgage with related
claims and counterclaims for fraud and breach of the implied
covenant of good faith and fair dealing. Id. at 833. After the
state court found in its favor, the plaintiff filed suit in federal
district court to challenge alleged actions by the defendants
MENDOCINO RAILWAY V. AINSWORTH 17
to shield funds from the $11 million judgment, asserting
claims for violation of state and federal fraud and
racketeering laws. Id. While the federal suit was pending,
the state appellate court vacated and remanded the
underlying state judgment, thus setting up parallel
proceedings where both the state and federal courts would
necessarily address the same threshold issue of whether
certain contract guarantees were enforceable. Id. at 834.
In reversing the district court’s grant of a Colorado River
stay, we found the lack of parallelism dispositive. We
focused on a line of cases finding use of Colorado River
inappropriate when the state proceeding could result in an
outcome that would still require additional litigation in the
federal case. See Ernest Bock, 76 F.4th at 839–40 (citing
Intel Corp. v. Advanced Micro Devices, Inc., 12 F.3d 908,
912–13 (9th Cir. 1993) (finding that when one of two
possible state court outcomes would require additional
federal litigation, a Colorado River stay could not issue); and
U.S. v. State Water Res. Control Bd., 988 F.3d 1194, 1204
(9th Cir. 2021) (“We have repeatedly emphasized that a
Colorado River stay is inappropriate when the state court
proceedings will not resolve the entire case before the
federal court.”)). We held that, because the state court could
find the contract obligations enforceable, requiring
additional action in federal court to address the alleged
fraudulent transfer of assets and racketeering claim, there
was substantial doubt as to whether the state proceedings
would fully resolve the federal action. Id. at 841–42 (citing
Moses H. Cone, 460 U.S. at 28). Therefore, the use of a
Colorado River stay was precluded.
In this case, the district court relied on the standard
articulated in our pre-Ernest Bock cases that exact
parallelism is not required and actions that are a “spin-off”
18 MENDOCINO RAILWAY V. AINSWORTH
of state litigation can be found sufficiently similar to warrant
a stay. See Nakash, 822 F.2d at 1417; Montanore, 867 F.3d
at 1170. The Railway argues that because the Federal Action
contains claims that are broader than those in the State
Action—and therefore may possibly require continued
federal litigation after a decision by the state court—Ernest
Bock precludes a dismissal. Specifically, the Railway asserts
that the Federal Action addresses not only whether the
ICCTA preempts the Commission’s authority under the
Coastal Act, but also the Commission’s federal consistency
approval authority under the CZMA. The Railway further
suggests that the state court could find the Railway is a
public utility under state law without reaching the issue of
federal preemption. According to the Railway, these
possible outcomes would lead to continued federal litigation.
The Railway overreads our decision in Ernest Bock. In
Ernest Bock, there was a realistic probability—bordering on
certainty—that one of the two anticipated outcomes in state
court (i.e., the state court finding the contract guarantees
enforceable) would then require additional proceedings in
federal court. See 76 F.4th at 840 n.17 (noting the state court
proceedings could result only in “binary outcomes”). The
fraud and racketeering claims in the federal court, while
incorporating the same underlying issue of contract validity,
were distinct from the state court claims. That is not the case
here. Although there is a theoretical possibility the State
Action will not fully resolve the Federal Action, there does
not appear to be a realistic probability that a federal
controversy will remain after the state proceedings are
complete. If the state court holds the Commission lacks
authority to regulate the Railway’s activities on state law
grounds due to the Railway’s status as a public utility, there
would be no remaining threat of regulation for the federal
MENDOCINO RAILWAY V. AINSWORTH 19
court to address—rendering the federal preemption
arguments moot if not addressed by the state court. If the
State Action does reach the federal preemption issue, it
would resolve the only issue in the Federal Action.
The Railway’s argument that the Federal Action is
broader than the State Action is unpersuasive. The
Railway’s federal complaint does not allege any other
instances of an existing conflict with the City or the
Commission outside of those being litigated in the State
Action. To the extent the Railway asserts it raises
generalized claims of preemption of the City’s or
Commission’s regulatory authority that are not mooted or
otherwise addressed by the State Action, those claims would
be unripe given the fact-specific nature of the preemption
analysis under the ICCTA. The Railway’s arguments as to
the Commission’s CZMA federal consistency authority are
similarly unpersuasive. The federal complaint does not raise
a CZMA claim as it fails to mention the CZMA even once,
and the Railway’s complaint did not allege any specific
action that the Commission asserts falls within its CZMA
review authority.
Ernest Bock did not abrogate our prior precedent. See 76
F.4th at 840 n.17 (noting the outcome was reconcilable with
Nakash, where it was unclear the state court proceedings
would result in an outcome that would require federal
litigation). The “binary outcomes” scenario at issue in
Ernest Bock is not present here. Id. As the district court
aptly stated, “it is difficult . . . to conceptualize [the Federal
Action] as anything other than a spinoff of the [State
Action].” See Nakash, 822 F.2d at 1416–17. The state and
federal proceedings here are sufficiently parallel such that
there is no substantial doubt the State Action will completely
resolve the Federal Action. This consideration of whether
20 MENDOCINO RAILWAY V. AINSWORTH
state court proceedings will resolve the federal issues does
not preclude dismissal under Colorado River.
III.
“Ultimately, ‘the decision whether to dismiss a federal
action because of parallel state-court litigation’ hinges on ‘a
careful balancing of the [relevant] factors . . . with the
balance heavily weighted in favor of the exercise of
jurisdiction.’” R.R. Street, 656 F.3d at 983 (citing Moses H.
Cone, 460 U.S. at 16). Here, only the consideration that
federal law provides the rule of decision weighs against
dismissal of the Federal Action, but not substantially so
given the state court has concurrent jurisdiction to adjudicate
federal preemption issues. Neither an inadequate state court
forum nor insufficiently parallel proceedings, which would
preclude the use of a Colorado River dismissal, are present
here. The forum shopping and piecemeal litigation
considerations strongly favor dismissal, and the order in
which the forums obtained jurisdiction also supports that
outcome. The remaining factors are neutral. On balance,
therefore, this case meets the requirements for a Colorado
River dismissal and there was no abuse of discretion by the
district court in dismissing the Federal Action. 7
The dismissal by the district court is AFFIRMED.
7
Because we affirm the district court’s dismissal under Colorado River,
we do not address the alternative arguments raised by the City and
Commission regarding Younger abstention and Wilton/Brillhart
abstention.
Plain English Summary
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT MENDOCINO RAILWAY, a No.
Key Points
01FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT MENDOCINO RAILWAY, a No.
02JACK AINSWORTH, in his official OPINION capacity as Executive Director of the California Coastal Commission; CITY OF FORT BRAGG, a California municipal corporation, Defendants-Appellees.
03Tigar, District Judge, Presiding Argued and Submitted May 15, 2024 San Francisco, California Filed August 29, 2024 Before: Sidney R.
04AINSWORTH SUMMARY * Colorado River Doctrine The panel affirmed the district court’s judgment dismissing Mendocino Railway’s federal lawsuit against the City of Fort Bragg and the California Coastal Commission under the Colorado River doctri
Frequently Asked Questions
FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT MENDOCINO RAILWAY, a No.
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This case was decided on August 29, 2024.
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