public agency

The Village of Euclid is an Ohio municipal corporation that adjoins and is practically a suburb of the City of Cleveland. Its estimated population is between 5,000 and 10,000, and its area spans from twelve to fourteen square miles, with the greater part consisting of farm lands or unimproved acreage. It lies roughly in the form of a parallelogram measuring approximately three and one-half miles each way and is traversed east and west by three principal highways and two railroads. Ambler Realty Co. owns a tract of land containing 68 acres situated in the westerly end of the village. This tract abuts on Euclid Avenue to the south and the Nickel Plate railroad to the north. Adjoining this tract on both the east and the west, restricted residential plats have been laid out upon which residences have been erected. On November 13, 1922, the Village Council adopted an ordinance establishing a comprehensive zoning plan. The ordinance divides the village into six use districts denominated U-1 to U-6, three height districts denominated H-1 to H-3, and four area districts denominated A-1 to A-4. Appellee's tract is classified as U-2 for the first 620 feet north of Euclid Avenue, U-3 for the next 130 feet, and U-6 for the remainder. Enforcement of the ordinance is entrusted to the inspector of buildings under rules and regulations of the board of zoning appeals. The board holds public meetings, keeps minutes of its proceedings, and possesses authority to interpret the ordinance in cases of practical difficulty or unnecessary hardship, while penalties are prescribed for violations. Ambler Realty Co. filed suit alleging that the tract has been held for years for sale and development for industrial uses for which it is especially adapted. The bill further alleged that unrestricted market value is about $10,000 per acre but limited to residential purposes the value does not exceed $2,500 per acre, that the first 200 feet back from Euclid Avenue has a value of $150 per front foot if unrestricted but not in excess of $50 per front foot if limited to residential uses, and that the ordinance confiscates and destroys a great part of its value while deterring prospective buyers. The bill sought an injunction restraining enforcement of the ordinance. The district court overruled a motion to dismiss on the ground that the suit was premature. The district court held the ordinance unconstitutional and void and enjoined its enforcement.

In July 1971 petitioners, a class of female employees of the Department of Social Services and of the Board of Education of the City of New York, commenced this action under 42 U.S.C. § 1983 in the United States District Court for the Southern District of New York. They sued the Department and its Commissioner, the Board and its Chancellor, and the city of New York and its Mayor, all in their official capacities. The complaint alleged that the city and its agencies had as a matter of official policy compelled pregnant employees to take unpaid leaves of absence before such leaves were required for medical reasons. The suit sought injunctive relief and backpay for periods of unlawful forced leave. On cross-motions for summary judgment, the District Court held petitioners' claims for injunctive and declaratory relief moot because the city and the Board had changed their maternity-leave policies after the complaint was filed. The court found that the acts complained of were unconstitutional under the Fourteenth Amendment. It denied backpay on the ground that any damages would come ultimately from the city of New York and that holding otherwise would circumvent the immunity conferred on municipalities by Monroe v. Pape. On appeal, petitioners renewed their arguments that the Board of Education was not a municipality within the meaning of Monroe v. Pape and that the District Court had erred in barring a damages award against the individual defendants. The Court of Appeals for the Second Circuit held that the Board was not a “person” under § 1983 because it performed a vital governmental function and had no final say over its appropriations. It also held that a damages action against officials sued in their official capacities could not proceed because any award would have to be paid by a city held not amenable to suit in Monroe v. Pape. The Supreme Court granted certiorari to consider whether local governmental officials and local independent school boards are “persons” within the meaning of 42 U.S.C. § 1983 when equitable relief in the nature of back pay is sought against them in their official capacities. After oral argument, the Court requested the parties to address whether Monroe v. Pape should be reconsidered in light of the legislative history of the Civil Rights Act of 1871.

The history of public transportation in San Antonio began with private operators. In 1959 the City of San Antonio purchased the privately owned San Antonio Transit Company and replaced it with the publicly owned San Antonio Transit System. In 1978 the city transferred its facilities and equipment to appellee San Antonio Metropolitan Transit Authority, a public mass-transit authority organized on a countywide basis. SAMTA became the major provider of transportation in the San Antonio metropolitan area. Between 1978 and 1980 its vehicles traveled over 26 million route miles and carried over 63 million passengers. San Antonio began receiving federal subsidies under the Urban Mass Transportation Act of 1964. SATS and SAMTA received over $51 million in UMTA grants from December 1970 through February 1980. This total included $12.5 million in operating grants during SAMTA's first two fiscal years. The Fair Labor Standards Act was enacted in 1938 without applying to local mass-transit employees. Congress amended the statute in 1961 to extend minimum-wage coverage to private mass-transit carriers with annual gross revenue of at least $1 million. In 1966 Congress withdrew exemptions from public hospitals, schools, and mass-transit carriers whose rates and services were subject to state regulation. The 1974 amendments provided for the progressive repeal of the surviving overtime exemption for mass-transit employees while extending FLSA coverage to virtually all state and local government employees. Following the 1976 decision in National League of Cities v. Usery, SATS informed its employees that the decision relieved it of overtime obligations under the FLSA. On September 17, 1979, the Wage and Hour Administration of the Department of Labor issued an opinion that SAMTA's operations were not constitutionally immune from the FLSA. On November 21, 1979, SAMTA filed suit against the Secretary of Labor in the United States District Court for the Western District of Texas seeking declaratory relief. On the same day appellant Garcia and other SAMTA employees sued SAMTA in the same court for overtime pay under the FLSA. On November 17, 1981, the District Court granted SAMTA's motion for summary judgment. The court held that local public mass-transit systems constitute integral operations in areas of traditional governmental functions. After the Supreme Court decided Transportation Union v. Long Island R. Co. in 1982, the District Court's judgment was vacated and remanded. On remand the District Court adhered to its original view and again entered judgment for SAMTA in 1983. The Secretary and Garcia took direct appeals. The Supreme Court noted probable jurisdiction, restored the cases for reargument after initial argument, and requested briefing on whether the principles of the Tenth Amendment as set forth in National League of Cities v. Usery should be reconsidered.