City of Oakland v. Lynch, No. 13-15391 (9th Cir. 2015)
Annotate this CaseThe City of Oakland contests the Government’s filing of a civil in rem forfeiture action against Harborside Health Clinic, a medical marijuana dispensary acting in accordance with local and state laws but in violation of the Controlled Substances Act, 21 U.S.C. 881(a)(7). On appeal, Oakland challenged the district court's order granting dismissal for lack of subject matter jurisdiction. The court concluded that Oakland has Article III standing to challenge the Government’s forfeiture action because the closing of Harborside will lead to a decrease in property and sales tax revenues; judicial review under the Administrative Procedure Act, 5 U.S.C. 701-706, is precluded, however, because the Government’s decision to file the forfeiture action is committed to agency discretion by law, and because allowing the suit to proceed would impermissibly disrupt the existing forfeiture framework; and, therefore, the court affirmed the judgment of the district court.
Court Description: Article III Standing / Jurisdiction. The panel affirmed the district court’s order dismissing for lack of jurisdiction the City of Oakland’s collateral attack under the Administrative Procedure Act challenging the government’s filing of a civil in rem forfeiture action against Harborside Health Clinic, a medical marijuana dispensary. The panel held that Oakland had standing to bring suit under Article III where Oakland alleged a sufficient injury with respect to the erosion of its tax revenues. The panel also held, however, that judicial review under the Administrative Procedure Act was precluded because the government’s decision to file the forfeiture action was committed to agency discretion by law, and because allowing the suit to proceed would impermissibly disrupt the existing forfeiture framework.
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