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denied, 393 U.S. 1000 (1968); see REA v. Central Louisiana Elec. Co., 354 F.2d 859, 865 (5th Cir.), cert. denied, 385 U.S. 815 (1966); Attorney General's Manual on the Administrative Procedure Act at 94-95 (1947). But,

this case does not involve such an exercise of discre

tion; it involves a wholly unauthorized and therefore unlawful action beyond the discretion of the Department. The Department has gone "beyond the outer perimeter of the authority vested in [it] by the statute

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'outside the range of permissible choices contemplated by the statute.'" Alabama Power Co. v. Alabama Elec.

Cooperative, Inc., supra, 394 F.2d at 675.

C. Sovereign Immunity

As a general principle, the sovereign, i.e., the United States, cannot be sued without its consent.

Con

sent may be given both explicitly and implicitly, however, and the general rule immunizing the sovereign from suit is not without several broad exceptions.

At least two United States Courts of Appeals (see Scanwell Laboratories, Inc. v. Shaffer, 424 F.2d 859, 873-74 (D.C. Cir. 1970)) take the position that if the

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action complained of meets the tests of reviewability
under the Administrative Procedure Act, the United States
will be considered thereby to have waived immunity.
importantly, the doctrine of sovereign immunity does not
preclude suit in the case of a federal official conduct-
ing himself in a manner that is inconsistent with or
beyond his statutory authority. See, e.g., Dugan v.
Rank, 372 U.S. 609, 621-23 (1963); Philadelphia Co. v.
Stimson, 223 U.S. 605, 619-20 (1912). Thus, in the
Public Service Company case, the Seventh Circuit Court
of Appeals held that sovereign immunity would not bar a
suit based on "alleged unauthorized" action of the REA

Administrator.

416 F.2d at 651.

Perhaps, the clearest statement of this exception can be found in Knox Hill Tenant Council v. Washington, 448 F.2d 1045, 1052 (D.C. Cir. 1971), where the United States Court of Appeals for the District of Columbia Circuit noted: "There is noth

ing new about judicial entertainment of suits which
charge that federal officials are acting outside of,

or in conflict with, the responsibilities laid upon them
by the Congress or the Constitution."

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In the present case, the gravamen of any complaint would be that the Department has acted beyond its constitutional and statutory authority and has taken steps inconsistent with Congress' mandate under the RE Act by terminating the section 4 loan program. Under these circumstances, we are of the view that sovereign immunity would not constitute a bar to the

action.

-

D. Justiciability
Question" Doctrine

The "Political

In the San Francisco Housing Authority case, discussed earlier, the plaintiff contended that the President's action impounding part of the funds appropriated for urban renewal projects constituted "an unconstitutional item veto." 340 F. Supp. at 656. The court characterized this argument as a request for a determination "of when the executive's use of his admitted dis

cretion

goes too far and becomes an abusive item

veto." As thus presented, the court held the issue to be "one without justiciable standards or guidelines." Ibid. Relying on the Supreme Court's decision in Baker v. Carr, 369 U.S. 186 (1962), the court refused to

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consider the argument "because it is a political ques

tion." Id. at 657.

While the action of the Department in our case may also be characterized as an "item veto," we believe substantially different issues are presented here, and in our view the questions raised in this case would be considered justiciable.

The issue of justiciability has two components: First, the plaintiff must demonstrate that the duty allegedly owed to him by the defendant can be defined and determined and that the issue being raised is subject to judicial resolution and judicial relief. See Powell v. McCormack, 395 U.S. 486, 516-17 (1969). In the present case, we think there is little difficulty in defining the duty being breached it is the duty of REA to comply with Congress' mandate under the RE Act to implement a program of two percent loans. Nor do we believe that there would be difficulty in framing appropriate relief; both mandatory or prohibitory injunctive relief or a declaratory judgment could be

"

ARNOLD & PORTER

- 71

22/

fashioned in quite conventional terms.

Second, the plaintiff must also satisfy the court

that the issue presented does not constitute a "politi-
cal" question. The standards for determining whether an
issue should be viewed as "political" in this sense were
set down by the Supreme Court in Baker v. Carr, supra,
369 U.S. at 217. The Court stated:

"Prominent on the surface of any case held
to involve a political question is found a
textually demonstrable constitutional com-
mitment of the issue to a coordinate poli-
tical department; or a lack of judicially
discoverable and manageable standards for
resolving it; or the impossibility of de-
ciding without an initial policy determina-
tion of a kind clearly for nonjudicial dis-
cretion; or the impossibility of a court's

22/ The Administrative Procedure Act expressly permits
judicial review actions to take the form of "actions for
declaratory judgments or writs of prohibitory or mandatory
injunction," 5 U.S.C. $ 703, and empowers the reviewing
court to "compel agency action unlawfully withheld" or to
"hold unlawful and set aside agency action . . . found to
be . . . (B) contrary to constitutional right, power,
privilege, or immunity; [or] (C) in excess of statutory
jurisdiction, authority, or limitations." 5 U.S.C. § 706.
District courts are also empowered to issue declaratory
judgments under § 2201 of the Judicial Code, 28 U.S.C.

§ 2201, and § 1361 of the Judicial Code, 28 U.S.C. § 1361,
confers jurisdiction upon the district courts "to compel
an officer or employee of the United States or any

agency thereof to perform a duty owed to the plaintiff."

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