Background
Dean Koch, a commercial fisherman and owner of White’s Landing Fisheries, sued the Ohio Department of Natural Resources and state officials after the state amended a rule limiting seine commercial fishing licensees’ ability to catch yellow perch. Koch alleged violations of the Fifth Amendment Takings Clause, breach of fiduciary duty, and civil conspiracy, claiming the rule deprived him of the value of his fishing license and annual catch without compensation. The district court dismissed all claims against state defendants with prejudice and claims against federal defendants without prejudice for defective service.
The court’s reasoning
The Sixth Circuit held that sovereign immunity bars Koch’s takings and state law claims against the Ohio Department of Natural Resources and state officials sued in their official capacities. The court determined that the state is the real party in interest because the relief sought would operate against the state agency that promulgated the rule. The court rejected arguments that the Ohio Administrative Procedure Act waived sovereign immunity, noting that the Act does not unequivocally consent to suit in federal court for these types of claims. The court also found that the Supreme Court’s decision in Loper Bright and the Ohio Supreme Court’s decision in TWISM did not require review of the rule or override sovereign immunity. Because the dismissal was based on a lack of subject matter jurisdiction, the court reversed the dismissal with prejudice and remanded with instructions to dismiss without prejudice. Claims against federal defendants were affirmed as dismissed due to defective service.
What it means going forward
Commercial fishermen and other regulated parties cannot sue Ohio state agencies or officials in federal court for takings or state law claims related to agency rules, as sovereign immunity remains a jurisdictional bar unless the state explicitly waives it in federal court.
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