Samuels v. Small Business Administration

Background

Justin Samuels, who the opinion says resides in Barreiro, Portugal, brought a self-represented action against the Small Business Administration (SBA) under 42 U.S.C. § 1981. He alleged that SBA programs offering loans and contracts exclusively to women-owned businesses discriminated against businesses owned by people of other sexes. He asserted that the SBA's practices had prevented him from applying for loans and contracts because of his gender. He sought a declaration that the practices were unconstitutional and illegal, an injunction prohibiting them, and unspecified damages.

Samuels asserted that the Tucker Act supplied jurisdiction because it waives sovereign immunity for certain government-contract claims. The court had previously allowed him to proceed without prepaying filing fees. The opinion addressed his amended complaint under the screening rules for such complaints and the rule requiring dismissal when the court lacks subject-matter jurisdiction.

Standing and jurisdiction

The court held that Samuels lacked standing, meaning he had not shown a concrete personal injury that was caused by the SBA and could be remedied by a court decision. Although he stated that he had been precluded from applying to unspecified SBA programs, he did not allege that he had applied for assistance or funding and that an application had been denied because of his gender. The court characterized the alleged harm as possible future injury and his challenge as appearing to be a generalized grievance. Because a person without constitutional standing cannot establish an Article III case or controversy, the court concluded that it lacked subject-matter jurisdiction.

Disposition

The court dismissed the action for lack of subject-matter jurisdiction under Federal Rule of Civil Procedure 12(h)(3). It granted Samuels 30 days to file a second amended complaint. The court said that a new pleading should identify his business, allege facts showing a personal injury caused by the SBA's actions, and explain why venue is proper in the Southern District of New York. If he did not timely file the second amended complaint or show cause for failing to do so, the court stated that the Clerk would be directed to enter a judgment dismissing the action. The court also certified that an appeal would not be taken in good faith and denied fee-free status for purposes of an appeal. Judge Laura Taylor Swain directed the Clerk to keep the matter open until a civil judgment is entered.