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FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT PATRICK NOVAK; DANIEL ROCHA; No. 13-16383 LARRY KENNER, DBA Kenner, Inc., a Hawaii corporation; KEN D.C. No. SCHOOLLAND; BJORN ARNTZEN; 1:12-cv-00638- PHILIP R. WILKERSON; WILLIAM LEK-RLP AKINA, PH.D., Individually and as Representatives of a Class of Similarly Situated Persons, OPINION Plaintiffs-Appellants, v. UNITED STATES OF AMERICA; DOES 1â1000, Defendants-Appellees. Appeal from the United States District Court for the District of Hawaii Leslie E. Kobayashi, District Judge, Presiding Argued and Submitted February 19, 2015âHonolulu, Hawaii Filed July 30, 2015 Before: Richard R. Clifton, N. Randy Smith, and Michelle T. Friedland, Circuit Judges. 2 NOVAK V. UNITED STATES Opinion by Judge Clifton; Concurrence by Judge Friedland SUMMARY* Jones Act The panel affirmed the district courtâs dismissal of an action challenging the constitutionality of the Jones Actâs cabotage provisions, which prohibit foreign competition in the domestic shipping market. Plaintiffs alleged that the Jones Actâs provisions impaired interstate trade between Hawaii and the rest of the United States to such an extent that they violated the Constitution. Plaintiffs are individuals and a corporation who reside in Hawaii and claim to have suffered pecuniary injury when they purchased domestic ocean cargo shipping services on west coast Hawaii routes. The panel held that plaintiffs did not meet their burden to show causation or redressability, two requisite elements for Article III standing. The panel further held that although it was possible that plaintiffs could establish standing if they amended their complaint, any amendment would be futile because plaintiffsâ Commerce Clause challenge to the Jones Act would fail on the merits. The panel held that an amended complaint would be subject to dismissal for failure to state a claim because the enactment of the Jones Act was not beyond * This summary constitutes no part of the opinion of the court. It has been prepared by court staff for the convenience of the reader. NOVAK V. UNITED STATES 3 the authority assigned to Congress under the Commerce Clause. The panel also rejected plaintiffsâ claim alleging that the Jones Act violated protections guaranteed under the Due Process Clause of the Fifth Amendment. Finally, the panel held that the district court did not violate plaintiffsâ procedural due process by ruling on the governmentâs motion to dismiss without an oral hearing. Judge Friedland concurred. She wrote separately to express her view that San Diego County Gun Rights Committee v. Reno, 98F.3d 1121 (9th Cir. 19966), which drove the majority opinionâs conclusion that plaintiffs lacked Article III standing, should be reconsidered in an appropriate case. COUNSEL John S. Carroll (argued), Honolulu, Hawaii, for Plaintiffs- Appellants. Rachel S. Moriyama (argued), Assistant United States Attorney, and Florence T. Nakakuni, United States Attorney, Honolulu, Hawaii, for Defendant-Appellee. 4 NOVAK V. UNITED STATES OPINION CLIFTON, Circuit Judge: This action challenges the constitutionality of the Jones Actâs cabotage provisions, which prohibit foreign competition in the domestic shipping market. Plaintiffs allege that these provisions impair interstate trade between Hawaii and the rest of the United States to such an extent that they violate the Constitution. The district court dismissed the action with prejudice, concluding that Plaintiffs failed to satisfy what it framed as prudential standing requirements because they alleged only generalized grievances shared with all residents and businesses in Hawaii. We affirm the dismissal of this action. Plaintiffs have alleged more than generalized grievances and have demonstrated an âinjury in fact,â but have not met their burden to show causation or redressability, the other two elements of Article III standing. Although it is possible that Plaintiffs could establish standing if they amended their complaint, any amendment would be futile because Plaintiffsâ challenge to the Jones Act would fail on the merits. An amended complaint would, we conclude, be subject to dismissal for failure to state a claim because the enactment of the Jones Act was not beyond the authority assigned to Congress under the Commerce Clause. To the contrary, that statute is precisely the kind of legislation, a regulation of interstate commerce, that the Commerce Clause empowers Congress to enact. NOVAK V. UNITED STATES 5 I. Background Plaintiffs are six individuals and one corporation.1 All reside in Hawaii and claim to have suffered pecuniary injury when they purchased âdomestic ocean cargo shipping services on west coast Hawaii routes.â They sued the United States, claiming that the root of their problem is found in the cabotage provisions of the Jones Act, formally known as the Merchant Marine Act of 1920. Cabotage is the transport of goods or passengers between two points in the same country. Blackâs Law Dictionary 243 (10th ed. 2014). The purpose of the Jones Act is to support this countryâs merchant marine and its shipbuilding and repair facilities, at least in part so they may be available in times of war or national emergency. 46 U.S.C. § 50101. One way the statute aims to accomplish this objective is by limiting the domestic shipping market to American companies, excluding foreign competitors. Under the cabotage provisions, any ship carrying cargo between two points in the United States must have been âbuilt in the United States,â 46 U.S.C. § 12112(a)(2)(A), and be âwholly owned by citizens of the United States,â id. § 55102(b)(1). 1 The individual plaintiffs and appellants are Patrick Novak, Daniel Rocha, Ken Schoolland, Bjorn Arntzen, Philip Wilkerson, and William Akina; the corporate plaintiff and appellant is Kenner Inc. The action was filed as a putative class action on behalf of all persons and entities who purchased shipping services between the continental United States and Hawaii in compliance with the Jones Act from at least September 1, 1959 to the present. Plaintiffs did not seek class certification prior to dismissal of the action by the district court. Although they initially sought damages and injunctive relief, Plaintiffs have abandoned their claim for damages. 6 NOVAK V. UNITED STATES According to Plaintiffs, these provisions violate the basic tenets of the Commerce Clause because they have effectively âimpaired, hindered, and substantially affected and completely cut off Hawaii from interstate commerce.â âIn the absence of highways and railways,â the complaint alleges, âthe Jones Act promises to nullify interstate commerce to the State of Hawaii.â Plaintiffsâ theory is that, by excluding foreign competition, the cabotage provisions have created âan essentially monopolistic Hawaiian ocean shipping marketâ that has resulted in âhigh pricesâ and âa de facto duopolyâ of two established firms in the Hawaii-mainland shipping market. Plaintiffs contend that all Hawaii residents and businesses, including themselves, have been harmed not only by the increased shipping costs, but also by the resultant inflated cost of doing business in Hawaii because higher shipping costs lead to higher prices for imported goods. Plaintiffs assert that interstate trade between Hawaii and the rest of the United States has been significantly stifled to such an extent that the effect of the Jones Actâs restrictions amounts to âan unlawful restraint of trade and interstate commerce, thereby violating the Commerce Clause of the United States Constitution.â Plaintiffs filed this action against the United States, asserting a single cause of action under the Commerce Clause. The district court granted the governmentâs motion to dismiss the action with prejudice, holding that Plaintiffs failed to establish standing on prudential grounds because they alleged only generalized grievances. Specifically, the court concluded that âPlaintiffs assert only generalized claims on behalf of an extremely broad class of persons or entities that pay for interstate shipping or are consumers of goods that NOVAK V. UNITED STATES 7 have been shipped in interstate commerce. . . . This type of broad, generalized allegation is simply insufficient to meet standing requirements.â The courtâs order cited Arizonans for Official English v. Arizona, 520 U.S. 43, 64 (1997), and United States v. Hays, 515 U.S. 737, 743 (1995), among other authorities. Plaintiffs appealed. II. Discussion We review de novo a district courtâs determination on the issue of standing. Levine v. Vilsack, 587 F.3d 986, 991 (9th Cir. 2009). âWhere standing is raised in connection with a motion to dismiss,â we âaccept as true all material allegations of the complaint, and construe the complaint in favor of the complaining party.â Id. (alteration, citation, and quotation marks omitted). We also âpresume that general allegations embrace those specific facts that are necessary to support the claim.â Jewel v. Natâl Sec. Agency, 673 F.3d 902, 907 (9th Cir. 2011) (citation and quotation marks omitted). We may affirm on any proper ground supported by the record. Hartmann v. Cal. Depât of Corr. & Rehab., 707 F.3d 1114, 1121 (9th Cir. 2013). A. Standing The âirreducible constitutional minimumâ of Article III standing consists of (1) âinjury in fact,â (2) âa causal connection between the injury and the conduct complained of,â and (3) a likelihood âthat the injury will be redressed by a favorable decision.â Lujan v. Defenders of Wildlife, 504 U.S. 555, 560â61 (1992) (quotation marks omitted). 8 NOVAK V. UNITED STATES âThe party invoking federal jurisdiction bears the burden of establishing these elements.â Id. at 561. 1. Injury in Fact â[A]n injury in factâ is âan invasion of a legally protected interestâ that is âconcrete and particularizedâ and âactual or imminent, not conjectural or hypothetical.â Id. at 560 (quotation marks omitted). Because a generalized grievance is not a particularized injury, a suit alleging only generalized grievances fails for lack of standing. Lexmark Intâl, Inc. v. Static Control Components, Inc., 134 S. Ct. 1377, 1387 n.3 (2014); Lance v. Coffman, 549 U.S. 437, 439â40 (2007) (per curiam); Newdow v. Rio Linda Union Sch. Dist., 597 F.3d 1007, 1016 (9th Cir. 2010). The district court determined that Plaintiffs alleged only generalized grievances and consequently dismissed their action for lack of standing.2 In so doing, the district court mistakenly focused only on the size of the population allegedly harmed. â[T]he fact that a harm is widely shared does not necessarily render it a generalized grievance.â Jewel, 673 F.3d at 909; see also Federal Election Commân v. Akins, 524 U.S. 11, 24 (1998) (recognizing that âwhere a harm is concrete, though widely shared, the Court has found âinjury in fact.ââ). Indeed, the instances in which the Supreme Court has labeled a plaintiffâs claim a âgeneralized grievanceâ âinvariably appear[ ] in cases where the harm at issue is not only widely shared, but is also of an abstract and 2 Although the district court framed its analysis under the prudential standing rubric, the Supreme Court subsequently clarified that the rule barring adjudication of generalized grievances is really a matter of constitutional standing under Article III. Lexmark, 134 S. Ct. at 1387 n.3. NOVAK V. UNITED STATES 9 indefinite natureâfor example, harm to the common concern for obedience to law.â Id. at 23 (citation and internal quotation marks omitted). Plaintiffsâ claim is not a generalized grievance because the harm they allege is not entirely âof an abstract and indefinite nature.â Id. Plaintiffs allege in their complaint that each of them individually suffered âpecuniary injury and damages as a result of the Jones Actâ when they âpurchased domestic ocean cargo shipping services.â This alleged injury is not the kind of abstract or indefinite harm that the Supreme Court has held to be insufficient to confer standing. See, e.g., Lance, 549 U.S. at 441â42 (holding that plaintiffs lacked standing because â[t]he only injury [they] allege is that the law . . . has not been followedâ); Allen v. Wright, 468 U.S. 737, 754 (1984) (âThis Court has repeatedly held that an asserted right to have the Government act in accordance with law is not sufficient, standing alone, to confer jurisdiction on a federal court.â), abrogated on other grounds by Lexmark Intâl, 134 S. Ct. 1377; Schlesinger v. Reservists Comm. to Stop the War, 418 U.S. 208, 217, 219â20 (1974) (holding that the âgeneralized interest of all citizens in constitutional governance . . . is an abstract injuryâ that is an insufficient basis for standing). 2. Causation The second required element for Article III standing is causation. This means that âthere must be a causal connection between the injury and the conduct complained of.â Lujan, 504 U.S. at 560. âWhen . . . as in this case, a plaintiffâs asserted injury arises from the governmentâs allegedly unlawful regulation (or lack of regulation) of someone else, . . . causation and redressability ordinarily 10 NOVAK V. UNITED STATES hinge on the response of the regulated (or regulable) third party to the government action or inactionâand perhaps on the response of others as well.â Id. at 562. ââ[M]ore particular facts are needed to show standingââ in such cases. Mendia v. Garcia, 768 F.3d 1009, 1013 (9th Cir. 2014) (citing Natâl Audubon Socây, Inc. v. Davis, 307 F.3d 835, 849 (9th Cir. 2002)). âThatâs so because the third parties may well have engaged in their injury-inflicting actions even in the absence of the governmentâs challenged conduct.â Id. âTo plausibly allege that the injury was not the result of the independent action of some third party, the plaintiff must offer facts showing that the governmentâs unlawful conduct is at least a substantial factor motivating the third partiesâ actions.â Id. (citation and quotation marks omitted). We dealt with a somewhat analogous issue in San Diego County Gun Rights Committee v. Reno, 98 F.3d 1121 (9th Cir. 1996). In that case, members of various gun rights groups sued the Attorney General of the United States, as well as other government officials, challenging the Violent Crime Control and Law Enforcement Act of 1994 (âVCCAâ). Id. at 1124. The plaintiffs argued, among other things, that they had standing because they had suffered an economic injury. Id. at 1130. They asserted that the VCCA had caused the price of the affected firearms to increase from 40% to 100%. Id. We reasoned that â[a]lthough the [VCCA] may tend to restrict supply, nothing in the Act directs manufacturers or dealers to raise the price of regulated weapons,â and that â[u]nder Lujan, plaintiffsâ injury [did] not satisfy the requirements of Article III because it [was] the result of the independent action of some third party not before the court.â Id. NOVAK V. UNITED STATES 11 Here, Plaintiffs suggest that the cabotage provisions of the Jones Act allowed two companies (not parties to this suit) to establish a duopoly whereby they are able to dominate the Hawaii shipping market and charge exorbitant rates. Plaintiffsâ own complaint, however, also alleges that the Hawaii shipping market âhas several characteristics that made it easyâ for the two shipping companies in that market to keep prices high, independent of the Jones Act: âmarket concentration, significant barriers to entry, ease of information sharing, lack of viable alternatives to ocean shipping, and the commodity nature of ocean shipping services.â In this light, Plaintiffs themselves have alleged facts showing that the two companies âmay well have engaged in their injury-inflicting actions even in the absence of the governmentâs challenged conduct.â Mendia, 768 F.3d at 1013. This is fatal to Plaintiffsâ effort to allege causation. 3. Redressability The third element of Article III standing, redressability, requires that it âbe likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.â Lujan, 504 U.S. at 561 (citation and internal quotation marks omitted). Although â[p]laintiffs need not demonstrate that there is a âguaranteeâ that their injuries will be redressed by a favorable decision,â Graham v. Fed. Emergency Mgmt. Agency, 149 F.3d 997, 1003 (9th Cir. 1998), abrogated on other grounds by Levin v. Commerce Energy, Inc., 560 U.S. 413 (2010), they do need to âshow that there would be a âchange in a legal statusââ as a consequence of a favorable decision âand that a âpractical consequence of that change would amount to a significant increase in the likelihood that the plaintiff would obtain relief that directly redresses the injury suffered.ââ Renee v. Duncan, 686 F.3d 1002, 1013 (9th 12 NOVAK V. UNITED STATES Cir. 2012) (citing Utah v. Evans, 536 U.S. 452, 464 (2002)). There is no standing if, following a favorable decision, whether the injury would be redressed would still depend on âthe unfettered choices made by independent actors not before the courts.â ASARCO Inc. v. Kadish, 490 U.S. 605, 615 (1989). Here, Plaintiffs have not shown a likelihood that the shipping companies would lower their prices if the challenged provisions of the Jones Act were invalidated. On the contrary, as we have noted, Plaintiffs themselves have alleged several reasonsââmarket concentration, significant barriers to entry, ease of information sharing, lack of viable alternatives to ocean shipping, and the commodity nature of ocean shipping services,ââthat suggest prices might remain high even if the Jones Act were invalidated. Indeed, Plaintiffs allege that the two shipping companies serving the Hawaii market have engaged in a âconspiracyâ to keep prices high. But, as Plaintiffs acknowledge in their complaint, the Jones Act âdoes not permit collusion, market sharing, market allocation, market manipulation or price fixing.â This suggests that enjoining enforcement of the Jones Act would not redress the alleged conspiracy between the shipping companies. According to Plaintiffsâ own complaint, any such conspiracy would be the result of âthe unfettered choices made by independent actors not before the courts.â ASARCO, 490 U.S. at 615. B. Leave to Amend We must next decide whether Plaintiffs should be granted leave to amend in order to correct the deficiencies we have identified. Under Rule 15(a) of the Federal Rules of Civil Procedure, leave to amend a partyâs pleading âshould [be] NOVAK V. UNITED STATES 13 freely give[n] . . . when justice so requires,â because the purpose of the rule is âto facilitate decision on the merits, rather than on the pleadings or technicalities.â Chudacoff v. Univ. Med. Ctr. of S. Nev., 649 F.3d 1143, 1152 (9th Cir. 2011) (alterations in original) (citation and quotation marks omitted). Nevertheless, the âgeneral rule that parties are allowed to amend their pleadings . . . does not extend to cases in which any amendment would be an exercise in futility or where the amended complaint would also be subject to dismissal.â Steckman v. Hart Brewing, Inc., 143 F.3d 1293, 1298 (9th Cir. 1998) (citations omitted). Futility alone can justify a courtâs refusal to grant leave to amend. See Bonin v. Calderon, 59 F.3d 815, 845 (9th Cir. 1995). We decline to order that leave be granted to amend the complaint. We conclude that amendment would be an exercise in futility because even if Plaintiffs established standing, they would still fail to state a claim.3 Plaintiffsâ claim under the Commerce Clause would not survive a motion to dismiss because the Commerce Clause does not limit the authority of Congress to regulate interstate commerce. By its terms, the Commerce Clause empowers Congress to âregulate Commerce with foreign Nations, and among the several States.â U.S. Const. art. I, § 8, cl. 3. As 3 Strictly from a standing perspective, it would not necessarily be futile for Plaintiffs to amend their complaint. Materials outside the record support the notion that the Jones Act causes economic injury to residents of Hawaii. See, e.g., U.S. Intâl Trade Commân, The Economic Effects of Significant U.S. Import Restraints xviii (2002) (estimating that the economic welfare gain from the âcomplete liberalization of maritime cabotage services under the Jones Act . . . would be slightly more than $656 millionâ). If Plaintiffs cured the deficiencies we have identified in their complaint, they might well be able to establish Article III standing to challenge the Jones Act. 14 NOVAK V. UNITED STATES Plaintiffs themselves acknowledge, the broad power of Congress has been well established for nearly 200 years, at least since Gibbons v. Ogden, 22 U.S. 1 (1824). There may sometimes be debates as to whether a given enactment by Congress falls within its authority under the Commerce Clauseâdebates that might turn on whether the regulated activity has a sufficient effect on interstate commerce. See, e.g., Natâl Fedân of Indep. Bus. v. Sebelius, 132 S. Ct. 2566, 2587 (2012). But â[t]he commerce clause is in no sense a limitation upon the power of Congress over interstate and foreign commerce.â Prudential Ins. Co. v. Benjamin, 328 U.S. 408, 423 (1946). Plaintiffsâ complaint is aimed squarely at a regulation of commerce among the several states, specifically shipping between Hawaii and the other states. Indeed, Plaintiffs allege that the Jones Act violates the Commerce Clause because its cabotage provisions constitute âan unlawful restraint of trade and interstate commerce.â Thus, they acknowledge that the regulation at issue here concerns interstate commerce. That the regulation may be a ârestraint of tradeâ does not matter. As noted above, the Commerce Clause does not limit the power of Congress to regulate interstate commerce. Id. Quite the opposite, it is well established that, by virtue of the Commerce Clause, Congress has broad authority to regulate the channels and instrumentalities of interstate commerce, as well as any activity substantially relating to interstate commerce. See, e.g., United States v. Lopez, 514 U.S. 549, 558 (1995); Prudential Ins., 328 U.S. at 423. It is true that the purpose of the Commerce Clause is to encourage and promote interstate commerce. Bos. Stock Exch. v. State Tax Commân, 429 U.S. 318, 328 (1977). But NOVAK V. UNITED STATES 15 the Supreme Court has made clear that this means the Clause prevents states from burdening interstate commerce. See General Motors Corp. v. Tracy, 519 U.S. 278, 287 (1997) (âThe negative or dormant implication of the Commerce Clause prohibits state taxation or regulation that discriminates against or unduly burdens interstate commerce and thereby impedes free private trade in the national marketplace.â) (citations, alteration, and quotation marks omitted). As to Congress, however, it is solely a grant of power to regulate the realm of interstate commerce, not a restriction.4 In particular, contrary to Plaintiffsâ implied assertion, the antitrust laws are not written into the Commerce Clause as a limit on Congressâ power. The Commerce Clause does not provide a legal basis for Plaintiffsâ claim. On appeal, perhaps in tacit recognition that the legal theory espoused in their complaint was not viable, Plaintiffs have argued that, even if the Jones Act is a valid exercise of congressional power derived from the Commerce Clause, it violates protections guaranteed under the Due Process Clause of the Fifth Amendment. In the context of the Commerce 4 The federal government only has the powers granted to it by the Constitution. The definition of interstate commerce under the Commerce Clause thus affects the scope of the authority given Congress by that clause, and court decisions emphasizing limits on the definition of interstate commerce are sometimes described as limiting the authority of Congress. See, e.g., Lopez, 514 U.S. at 566 (âCongressâ authority is limited to those powers enumerated in the Constitution, and . . . those enumerated powers are interpreted as having judicially enforceable outer limits . . . .â). Here, however, there is no dispute that the Jones Act regulates interstate commerce under any definition, and the Commerce Clause places no limits on the power of Congress to regulate within that interstate commerce realm. â[T]he sovereignty of Congress, though limited to specified objects, is plenary as to those objects.â Gibbons, 22 U.S. at 197. 16 NOVAK V. UNITED STATES Clause, we have held that âthe requirements of due process are satisfied if the law passed . . . has a reasonable relation to a legitimate legislative purpose and is not arbitrary, capricious or discriminatory.â Boylan v. United States, 310 F.2d 493, 498 (9th Cir. 1962). Plaintiffs do not argue that the Jones Actâs cabotage provisions are not reasonably related to a legitimate legislative purpose, nor do they assert that the provisions are arbitrary or capricious. Plaintiffs do contend that the Jones Act is discriminatory because its effects on Hawaii commerce are disproportionate as compared to the rest of the United States. But that alleged discrimination does not support a viable cause of action, whether framed as a matter of due process or as an attempt to enforce a supposed structural limitation on federal power under the Commerce Clause. âThere is no requirement of uniformity in connection with the commerce power.â Currin v. Wallace, 306 U.S. 1, 14 (1939); see also Am. Trucking Assâns v. United States, 344 U.S. 298, 322 & n.20 (1953) (explaining that the Due Process Clause is not violated even where a regulatory scheme causes some businesses to fail); Secây of Agric. v. Cent. Roig Ref. Co., 338 U.S. 604, 616â19 (1950) (explaining that legislation did not offend the Due Process Clause even where it set different quotas for sugar from refiners in island territories than from refiners on the mainland, thereby creating inequalities); see generally Thomas B. Colby, Revitalizing the Forgotten Uniformity Constraint on the Commerce Power, 91 Va. L. Rev. 249 (2005) (considering historical arguments in favor of an inherent uniformity constraint on the commerce power, but recognizing that the Supreme Court has for decades consistently stated that no such constraint exists). NOVAK V. UNITED STATES 17 The closest that Plaintiffs come to identifying legal support for their due process theory is to quote, in both their opening brief and their reply brief, from the Supreme Courtâs 1939 decision in Currin, specifically the first sentence of the following paragraph: If it be assumed that there might be discrimination of such an injurious character as to bring into operation the due process clause of the Fifth Amendment, that is a different matter from a contention that mere lack of uniformity in the exercise of the commerce power renders the action of Congress invalid. For that contention we find no warrant. It is of the essence of the plenary power conferred that Congress may exercise its discretion in the use of the power. Congress may choose the commodities and places to which its regulation shall apply. Congress may consider and weigh relative situations and needs. Congress is not restricted by any technical requirement but may make limited applications and resort to tests so that it may have the benefit of experience in deciding upon the continuance or extension of a policy which under the Constitution it is free to adopt. As to such choices, the question is one of wisdom and not of power. Currin, 306 U.S. at 14. The first sentence might acknowledge that there could be a due process limitation on some exercises of power, but it does not support Plaintiffsâ claim that the Jones Act crosses the line. The rest of the 18 NOVAK V. UNITED STATES paragraph provides the most telling response, especially the final sentence. It is not for us to evaluate the wisdom of the Jones Act. That task is for Congress. Congress has the power to regulate interstate commerce, and it is up to Congress to decide how to exercise it. As Chief Justice Marshall stated nearly 200 years ago, â[t]he wisdom and the discretion of Congress, their identity with the people, and the influence which their constituents possess at elections, are, in this, as in many other instances . . . the sole restraints . . . to secure them from its abuse.â Gibbons, 22 U.S. at 197. Likewise, although it is true that â[t]he liberty protected by the Fifth Amendmentâs Due Process Clause contains within it the prohibition against denying to any person the equal protection of the laws,â United States v. Windsor, 133 S. Ct. 2675, 2695 (2013), âequal protection is not a license for courts to judge the wisdom, fairness, or logic of legislative choices,â FCC v. Beach Commcâns, Inc., 508 U.S. 307, 313 (1993). Where, as here, rational basis review applies and âthere are plausible reasons for Congressâ action, our inquiry is at an end.â Id. at 313â14 (quotation marks omitted). This is not, for instance, a case involving invidious racial discrimination, e.g., Bolling v. Sharpe, 347 U.S. 497, 500 (1954), or indeed a case of intentional, invidious discrimination of any kind, see generally Vill. of Arlington Heights v. Metro. Hous. Dev. Corp., 429 U.S. 252, 265 (1977) (holding that a âdiscriminatory intent or purpose is required to show a violation of the Equal Protection Clauseâ). Thus, we decline to order that leave be granted for Plaintiffs to amend their complaint because, for the reasons discussed above, it would be futile to do so. NOVAK V. UNITED STATES 19 C. Procedural Due Process Plaintiffs also assert that the district court violated their right to procedural due process by ruling on the governmentâs motion to dismiss without an oral hearing. We reject this argument. Plaintiffs admit they âhad [an] opportunity to present arguments counter to Defendantâs motion,â but they do not explain why that opportunity to present arguments in writing was inaedquate for purposes of due process. It was sufficient. See Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532, 546 (1985) (âThe essential requirements of due process . . . are notice and an opportunity to respond. The opportunity to present reasons, either in person or in writing, why [a] proposed action should not be taken is a fundamental due process requirement.â (emphasis added)). The district court did not err in ruling on the governmentâs motion without an oral hearing. III. Conclusion Plaintiffsâ complaint fails to make the showing necessary to establish Article III standing. We affirm the dismissal of the action and we decline to grant leave to amend the complaint. AFFIRMED. FRIEDLAND, Circuit Judge, concurring: I concur in Judge Cliftonâs thoughtful opinion, which faithfully applies our circuit precedent. I write separately to express my view that San Diego County Gun Rights 20 NOVAK V. UNITED STATES Committee v. Reno, 98 F.3d 1121 (9th Cir. 1996), which drives the opinionâs conclusion that Plaintiffs lack Article III standing, should be reconsidered in an appropriate case. Gun Rights ignores one of the most basic rules of microeconomics. According to Gun Rights, the fact that a law ârestrict[s] supplyâ of a good is insufficient to support the inference that the law causes an increase in the price of that good. 98 F.3d at 1130. But the law of supply and demand tells us that, when demand for a good remains constant, a decrease in the supply of that good will cause an increase in price. See DAVID BESANKOW & RONALD R. BRAEUTIGAM, MICROECONOMICS 37 (4th ed. 2010); see also CHARLES ALAN WRIGHT, ARTHUR R. MILLER & EDWARD H. COOPER, 13A FEDERAL PRACTICE & PROCEDURE § 3531.5 n.35 (3d ed. 2008) (criticizing the causation analysis in Gun Rights for failing to recognize that â[r]estriction of lawful supply inevitably increases the price absent a change in the demand scheduleâ). In accordance with basic economics, plaintiffs should be able to show that a challenged statute has caused an increase in price by showing that it has decreased supply. But Gun Rights prevents plaintiffs from establishing causation in this manner unless they can show that the statute actually âdirects manufacturers or dealers to raise the price of regulatedâ goods. 98 F.3d at 1130. This contravenes the rule that causation may be indirect: âcausation may be found even if there are multiple links in the chain connecting the defendantâs unlawful conduct to the plaintiffâs injury.â Mendia v. Garcia, 768 F.3d 1009, 1012 (9th Cir. 2014). As long as plaintiffs can show, âwithout relying on speculation or guesswork,â that challenged governmental conduct is âat least a substantial factorâ behind an injury, they can establish NOVAK V. UNITED STATES 21 causation. Id. at 1013. The law of supply and demand requires no speculation or guesswork, so there should be little doubt that a statute reducing supply is at least a substantial factor behind a rise in price. Were it not for Gun Rights, I would conclude that Plaintiffs have standing to challenge the Jones Act. At a minimum, Plaintiffs allege that the Jones Act limits the supply of vessels available to serve the Hawaii shipping market. This alone should be sufficient to establish that the Jones Act causes prices in that market to be higher than they otherwise would be. But, regrettably, Gun Rights requires more. That said, this case is a poor vehicle for revisiting Gun Rights because, as Judge Cliftonâs opinion explains, Plaintiffs have failed to state a claim whether or not they have established standing. I expect the day will come, however, when it will be necessary to reconsider how plaintiffs injured by high prices can show that a defendantâs challenged conduct caused those prices to increase. When it does, we should overrule Gun Rights and bring the law of our circuit into conformity with fundamental principles of economics. [by Clifton] Opinion by Judge CLIFTON; Concurrence by Judge FRIEDLAND. OPINION CLIFTON, Circuit Judge: This action challenges the constitutionality of the Jones Actâs cabotage provisions, which prohibit foreign competition in the domestic shipping market. Plaintiffs allege that these provisions impair interstate trade between Hawaii and the rest of the United States to such an extent that they violate the Constitution. . The district court dismissed the action with prejudice, concluding that Plaintiffs failed to satisfy what it framed as prudential standing requirements because they alleged only generalized grievances shared with all residents and businesses in Hawaii. We affirm the dismissal of this action. Plaintiffs have alleged more than generalized grievances and have demonstrated an âinjury in fact,â but have not met their burden to show causation or redressability, the other two elements of Article III standing. Although it is possible that Plaintiffs could establish standing if they amended their complaint, any amendment would be futile because Plaintiffsâ challenge to the Jones Act would fail on the merits. An amended complaint' would, we conclude, be subject to dismissal for failure to state a claim because the enactment of the Jones Act was not beyond the authority assigned to Congress under the Commerce Clause. To the contrary, that statute is precisely the kind of legislation, a regulation of interstate commerce, that the Commerce Clause empowers Congress to enact. I. Background Plaintiffs are six individuals and one corporation. 1 All reside in Hawaii and claim to have suffered pecuniary injury when they purchased âdomestic ocean cargo shipping services on west coast Hawaii routes.â They sued the United States, claiming that the root of their problem is found in the cabotage provisions of the Jones Act, formally known as the Merchant Marine Act of,1920. Cabotage is the transport of goods or passengers between two points in the same country. Blackâs Law Dictionary 243 (10th ed.2014). The purpose of the Jones Act is to support this countryâs merchant marine and its shipbuilding and repair facilities, at least in part so they may be available in times of war or national emergency. 46 U.S.C. § 50101 . One way the statute aims to accomplish this objective is by limiting the domestic shipping market to American *1017 companies, excluding foreign competitors. Under the cabotage provisions, any ship carrying cargo between two points in the United States must have been âbuilt in the United States,â 46 U.S.C. § 12112 (a)(2)(A), and be âwholly owned by citizens of the United States,â id. § 55102(b)(1). According to Plaintiffs, these provisions violate the basic tenets of the Commerce Clause because they have effectively âimpaired, hindered, and substantially affected and completely cut off Hawaii from interstate commerce.â âIn the absence of highways and railways,â the complaint alleges, âthe Jones Act promises to nullify interstate commerce to the State of Hawaii.â Plaintiffsâ theory is that, by excluding foreign competition, the cabotage provisions have created âan essentially monopolistic Hawaiian ocean shipping marketâ that has resulted in âhigh pricesâ and âa de facto duopolyâ of two established firms in the Hawaii-mainland shipping market. Plaintiffs contend that all Hawaii residents and businesses, including themselves, have been harmed not only by the increased shipping costs, but also by the resultant inflated cost of doing business in Hawaii because higher shipping costs lead to higher prices for imported goods. Plaintiffs assert that interstate trade between Hawaii and the rest of the United States has been significantly stifled to such an extent that the effect of the Jones Actâs restrictions amounts to âan unlawful restraint of trade and interstate commerce, thereby violating the Commerce Clause of the United States Constitution.â Plaintiffs filed this action against the United States, asserting a single cause of action under the Commerce Clause. The district court granted the governmentâs motion to dismiss the action with prejudice, holding that Plaintiffs failed to establish standing on prudential grounds because they alleged only generalized grievances. Specifically, the court concluded that âPlaintiffs assert only generalized claims on behalf of an extremely broad class of persons or entities that pay for interstate shipping or are consumers of goods that have been shipped in interstate commerce.... This type of broad, generalized allegation is simply insufficient to meet standing requirements.â The courtâs order cited Arizonans for Official English v. Arizona, 520 U.S. 43, 64 , 117 S.Ct. 1055 , 137 L.Ed.2d 170 (1997), and United States v. Hays, 515 U.S. 737, 743 , 115 S.Ct. 2431 , 132 L.Ed.2d 635 (1995), among other authorities. Plaintiffs appealed. II. Discussion We review de novo a district courtâs determination on the issue of standing. Levine v. Vilsack, 587 F.3d 986, 991 (9th Cir.2009). âWhere standing is raised in connection with a motion to dismiss,â we âaccept as true all material allegations of the complaint, and construe the complaint in favor of the complaining party.â Id. (alteration, citation, and quotation marks omitted). We also âpresume that general allegations embrace those specific facts that are necessary to support the claim.â Jewel v. Natâl Sec. Agency, 673 F.3d 902, 907 (9th Cir.2011) (citation and quotation marks omitted). We may affirm on any proper ground supported by the record. Hartmann v. Cal. Depât of Corr. & Rehab., 707 F.3d 1114, 1121 (9th Cir.2013). A. Standing The âirreducible constitutional minimumâ of Article III standing consists of (1) âinjury in fact,â (2) âa causal connection between the injury and the conduct complained of,â and (3) a likelihood âthat the injury will be redressed by a favorable decision.â Lujan v. Defenders of Wildlife, *1018 504 U.S. 555, 560-61 , 112 S.Ct. 2130 , 119 L.Ed.2d 351 (1992) (quotation marks omitted). âThe party invoking federal jurisdiction bears the burden of establishing these elements.â Id. at 561 , 112 S.Ct. 2130 . 1. Injury in Fact â[A]n injury in factâ is âan invasion of a legally protected interestâ that is âconcrete and particularizedâ and âactual or imminent, not conjectural or hypothetical.â Id. at 560 , 112 S.Ct. 2130 (quotation marks omitted). Because a generalized grievance is not a particularized injury, a suit alleging only generalized grievances fails for lack of standing. Lexmark Intâl, Inc. v. Static Control Components, Inc., â U.S. â, n. 3, 134 S.Ct. 1377 , 1387 n. 3, 188 L.Ed.2d 392 (2014); Lance v. Coffman, 549 U.S. 437, 439-40 , 127 S.Ct. 1194 , 167 L.Ed.2d 29 (2007) (per curiam); Newdow v. Rio Linda Union Sch. Dist., 597 F.3d 1007, 1016 (9th Cir.2010). The district court determined that Plaintiffs alleged only generalized grievances and consequently dismissed their action for lack of standing. 2 In so doing, the district court mistakenly focused only on the size of the population allegedly harmed. â[T]he fact that a harm is widely shared does not necessarily render it a generalized grievance.â Jewel, 673 F.3d at 909 ; see also Federal Election Commân v. Akins, 524 U.S. 11, 24 , 118 S.Ct. 1777 , 141 L.Ed.2d 10 (1998) (recognizing that âwhere a harm is concrete, though widely shared, the Court has found âinjury in fact.â â). Indeed, the instances in which the Supreme Court has labeled a plaintiffs claim a âgeneralized grievanceâ âinvariably appear[] in cases where the harm at issue is not only widely shared, but is also of an abstract and indefinite nature â for example, harm to the common concern for obedience to law.â Id. at 23 , 118 S.Ct. 1777 (citation and internal quotation marks omitted). Plaintiffsâ claim is not a generalized grievance because the harm they allege is not entirely âof an abstract and indefinite nature.â Id. Plaintiffs allege in their complaint that each of them individually suffered âpecuniary injury and damages as a result of the Jones Actâ when they âpurchased domestic ocean cargo shipping services.â This alleged injury is not the kind of abstract or indefinite harm that the Supreme Court has held to be insufficient to confer standing. See, e.g., Lance, 549 U.S. at 441-42 , 127 S.Ct. 1194 (holding that plaintiffs lacked standing because â[t]he only injury [they] allege is that the law ... has not been followedâ); Allen v. Wright, 468 U.S. 737, 754 , 104 S.Ct. 3315 , 82 L.Ed.2d 556 (1984) (âThis Court has repeatedly held that an asserted right to have the Government act in accordance with law is not sufficient, standing alone, to confer jurisdiction on a federal court.â), abrogated on other grounds by Lexmark Intâl, â U.S. â, 134 S.Ct. 1377 , 188 L.Ed.2d 392 ; Schlesinger v. Reservists Comm. to Stop the War, 418 U.S. 208, 217, 219-20 , 94 S.Ct. 2925 , 41 L.Ed.2d 706 (1974) (holding that the âgeneralized interest of all citizens in constitutional governance ... is an abstract injuryâ that is an insufficient basis for standing). 2. Causation The second required element for Article III standing is causation. This means that âthere must be a causal connection between the injury and the conduct complained of.â Lujan, 504 U.S. at *1019 560 , 112 S.Ct. 2130 . âWhen ... as in this case, a plaintiffs asserted injury arises from the governmentâs allegedly unlawful regulation (or lack of regulation) of someone else, ... causation and redressability ordinarily hinge on the response of the regulated (or regulable) third party to the government action or inaction â and perhaps on the response of others as well.â Id. at 562 , 112 S.Ct. 2130 . â â[M]ore particular facts are needed to show standingâ â in such cases. Mendia v. Garcia, 768 F.3d 1009, 1013 (9th Cir.2014) (citing Natâl Audubon Socây, Inc. v. Davis, 307 F.3d 835, 849 (9th Cir.2002)). âThatâs so because the third parties may well have engaged in their injury-inflicting actions even in the absence of the governmentâs challenged conduct.â Id. âTo plausibly allege that the injury was not the result of the independent action of some third party, the plaintiff must offer facts showing that the governmentâs unlawful conduct is at least a substantial factor motivating the third partiesâ actions.â Id. (citation and quotation marks omitted). We dealt with a somewhat analogous issue in San Diego County Gun Rights Committee v. Reno, 98 F.3d 1121 (9th Cir.1996). In that case, members of various gun rights groups sued the Attorney General of the United States, as well as other government officials, challenging the Violent Crime Control and Law Enforcement Act of 1994 (âVCCAâ). Id. at 1124 . The plaintiffs argued, among other things, that they had standing because they had suffered an economic injury. Id. at 1130 . They asserted that the VCCA had caused the price of the affected firearms to increase from 40% to 100%. Id. We reasoned that â[although the [VCCA] may tend to restrict supply, nothing in the Act directs manufacturers or dealers to raise the price of regulated weapons,â and that â[ujnder Lujan , plaintiffsâ injury [didj not satisfy the requirements of Article III because it [was] the result of the independent action of some third party not before the court.â Id. Here, Plaintiffs suggest that the cabotage provisions of the Jones Act allowed two companies (not parties to this suit) to establish a duopoly whereby they are able to dominate the Hawaii shipping market and charge exorbitant rates. Plaintiffsâ own complaint, however, also alleges that the Hawaii shipping market âhas several characteristics that made it easyâ for the two shipping companies in that market to keep prices high, independent of the Jones Act: âmarket concentration, significant barriers to entry, ease of information sharing, lack of viable alternatives to ocean shipping, and the commodity nature of ocean shipping services.â In this light, Plaintiffs themselves have alleged facts showing that the two companies âmay well have engaged in their injury-inflicting actions even in the absence of the governmentâs challenged conduct.â Mendia, 768 F.3d at 1013 . This is fatal to Plaintiffsâ effort to allege causation. 3. Redressability The third element of Article III standing, redressability, requires that it âbe likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.â Lujan, 504 U.S. at 561 , 112 S.Ct. 2130 (citation and internal quotation marks omitted). Although â[p]laintiffs need not demonstrate that there is a âguaranteeâ that their injuries will be redressed by a favorable decision,â Graham v. Fed. Emergency Mgmt. Agency, 149 F.3d 997 , 1003 (9th Cir.1998), abrogated on other grounds by Levin v. Commerce Energy, Inc., 560 U.S. 413 , 130 S.Ct. 2323 , 176 L.Ed.2d 1131 (2010), they do need to âshow that there would be a âchange in a legal statusâ â as a consequence of a favorable decision âand that a âpractical consequence of that change *1020 would amount to a significant increase in the likelihood that the plaintiff would obtain relief that directly redresses the injury suffered.â â Renee v. Duncan, 686 F.3d 1002, 1013 (9th Cir.2012) (citing Utah v. Evans, 536 U.S. 452, 464 , 122 S.Ct. 2191 , 153 L.Ed.2d 453 (2002)). There is no standing if, following a favorable decision, whether the injury would be redressed would still depend on âthe unfettered choices made by independent actors not before the courts.â ASARCO Inc. v. Kadish, 490 U.S. 605, 615 , 109 S.Ct. 2037 , 104 L.Ed.2d 696 (1989). Here, Plaintiffs have not shown a likelihood that the shipping companies would lower their prices if the challenged provisions of the Jones Act were invalidated. On the contrary, as we have noted, Plaintiffs themselves have alleged several reasons â âmarket concentration, significant barriers to entry, ease of information sharing, lack of viable alternatives to ocean shipping, and the commodity nature of ocean shipping services,â â that suggest prices might remain high even if the Jones Act were invalidated. Indeed, Plaintiffs allege that the two shipping companies serving the Hawaii market have engaged in a âconspiracyâ to keep prices high. But, as Plaintiffs acknowledge in their complaint, the Jones Act âdoes not permit collusion, market sharing, market allocation, market manipulation or price fixing.â This suggests that enjoining enforcement of the Jones Act would not redress the alleged conspiracy between the shipping companies. According to Plaintiffsâ own complaint, any such conspiracy would be the result of âthe unfettered choices made by independent actors not before the courts.â ASARCO, 490 U.S. at 615 , 109 S.Ct. 2037 . B. Leave to Amend We must next decide whether Plaintiffs should be granted leave to amend in order to correct the deficiencies we have identified. Under Rule 15(a) of the Federal Rules of Civil Procedure, leave to amend a partyâs pleading âshould [be] freely give[n] ... when justice so requires,â because the purpose of the rule is âto facilitate decision on the merits, rather than on the pleadings or technicalities.â Chudacoff v. Univ. Med. Ctr. of S. Nev., 649 F.3d 1143 , 1152 (9th Cir.2011) (alterations in original) (citation and quotation marks omitted). Nevertheless, the âgeneral rule that parties are allowed to amend their pleadings ... does not extend to cases in which any amendment would be an exercise in futility or where the amended complaint would also be subject to dismissal.â Steckman v. Hart Brewing, Inc., 143 F.3d 1293, 1298 (9th Cir.1998) (citations omitted). Futility alone can justify a courtâs refusal to grant leave to amend. See Bonin v. Calderon, 59 F.3d 815, 845 (9th Cir.1995). We decline to order that leave be granted to amend the complaint. We conclude that amendment would be an exercise in futility because even if Plaintiffs established standing, they would still fail to state a claim. 3 Plaintiffsâ claim under the Commerce Clause would not survive a motion to dismiss because the Commerce Clause does not limit the authority of Con *1021 gress to regulate interstate commerce. By its terms, the Commerce Clause empowers Congress to âregulate Commerce with foreign Nations, and among the several States.â U.S. Const. art. I, § 8, cl. 3. As Plaintiffs themselves acknowledge, the broad power of Congress has been well established for nearly 200 years, at least since Gibbons v. Ogden, 22 U.S. 1 , 9 Wheat. 1 , 6 L.Ed. 23 (1824). There may sometimes be debates as to whether a given enactment by Congress falls within its authority under the Commerce Clause&emdash;debates that might turn on whether the regulated activity has a sufficient effect on interstate commerce. See, e.g., Natâl Fedân of Indep. Bus. v. Sebelius, â U.S. â, 132 S.Ct. 2566, 2587 , 183 L.Ed.2d 450 (2012). But â[t]he commerce clause is in no sense a limitation upon the power of Congress over interstate and foreign commerce.â Prudential Ins. Co. v. Benjamin, 328 U.S. 408, 423 , 66 S.Ct. 1142 , 90 L.Ed. 1342 (1946). Plaintiffsâ complaint is aimed squarely at a regulation of commerce among the several states, specifically shipping between Hawaii and the other states. Indeed, Plaintiffs allege that the Jones Act violates the Commerce Clause because its cabotage provisions constitute âan unlawful restraint of trade and interstate commerce.â Thus, they acknowledge that the regulation at issue here concerns interstate commerce. That the regulation may be a ârestraint of tradeâ does not matter. As noted above, the Commerce Clause does not limit the power of Congress to regulate interstate commerce. Id. Quite the opposite, it is well established that, by virtue of the Commerce Clause, Congress has broad authority to regulate the channels and instru-mentalities of interstate commerce, as well as any activity substantially relating to interstate commerce. See, e.g., United States v. Lopez, 514 U.S. 549, 558 , 115 S.Ct. 1624 , 131 L.Ed.2d 626 (1995); Prudential Ins., 328 U.S. at 423 , 66 S.Ct. 1142 . It is true that the purpose of the Commerce Clause is to encourage and promote interstate commerce. Bos. Stock Exch. v. State Tax Commân, 429 U.S. 318, 328 , 97 S.Ct. 599 , 50 L.Ed.2d 514 (1977). But the Supreme Court has made clear that this means the Clause prevents states from burdening interstate commerce. See General Motors Corp. v. Tracy, 519 U.S. 278, 287 , 117 S.Ct. 811 , 136 L.Ed.2d 761 (1997) (âThe negative or dormant implication of the Commerce Clause prohibits state taxation or regulation that discriminates against or unduly burdens interstate commerce and thereby impedes free private trade in the national marketplace.â) (citations, alteration, and quotation marks omitted). As to Congress, however, it is solely a grant of power to regulate the realm of interstate commerce, not a restriction. 4 In particular, contrary to Plaintiffsâ implied assertion, the antitrust laws are not written into the Commerce Clause as a limit on Congressâ power. The Commerce Clause does not provide a legal basis for Plaintiffsâ claim. *1022 On appeal, perhaps in tacit recognition that the legal theory espoused in their complaint was not viable, Plaintiffs have argued that, even if the Jones Act is a valid exercise of congressional power derived from the Commerce Clause, it violates protections guaranteed under the Due Process Clause of the Fifth Amendment. In the context of the Commerce Clause, we have held that âthe requirements of due process are satisfied if the law passed ... has a reasonable relation to a legitimate legislative purpose and is not arbitrary, capricious or discriminatory.â Boylan v. United States, 310 F.2d 493, 498 (9th Cir.1962). Plaintiffs do not argue that the Jones Actâs cabotage provisions are not' reasonably related to a legitimate legislative purpose, nor do they assert that the provisions are arbitrary or capricious. Plaintiffs do contend that the Jones Act is discriminatory because its effects on Hawaii commerce are disproportionate as compared to the rest of the United States. But that alleged discrimination does not support a viable cause of action, whether framed as a matter of due process or as an attempt to enforce a supposed structural limitation on federal power under the Commerce Clause. âThere is no requirement of uniformity in connection with the commerce power.â Currin v. Wallace, 306 U.S. 1, 14 , 59 S.Ct. 379 , 83 L.Ed. 441 (1939); see also Am. Trucking Assâns v. United States, 344 U.S. 298 , 322 & n. 20, 73 S.Ct. 307 , 97 L.Ed. 337 (1953) (explaining that the Due Process Clause is not violated even where a regulatory scheme causes some businesses to fail); Secây of Agric. v. Cent. Roig Ref. Co., 338 U.S. 604, 616-19 , 70 S.Ct. 403 , 94 L.Ed. 381 (1950) (explaining that legislation did not offend the Due Process Clause even where it set different quotas for sugar from refiners in island territories than from refiners on the mainland, thereby creating inequalities); see generally Thomas B. Colby, Revitalizing the Forgotten Uniformity Constraint on the Commerce Power, 91 Va. L.Rev. 249 (2005) (considering historical arguments in favor of an inherent uniformity constraint on the commerce power, but recognizing that the Supreme Court has for decades consistently stated that no such constraint exists). The closest that Plaintiffs come to identifying legal support for their due process theory is to quote, in both their opening brief and their reply brief, from the Supreme Courtâs 1939 decision in Currin , specifically the first sentence of the following paragraph: If it be assumed that there might be discrimination of such an injurious character as to bring into operation the due process clause of the Fifth Amendment, that is a different matter from a contention that mere lack of uniformity in the exercise of the commerce power renders the action of Congress invalid. For that contention we find no warrant. It is of the essence of the plenary power conferred that Congress may exercise its discretion in the use of the power. Congress may choose the commodities and places to which its regulation shall apply. Congress may consider and weigh relative situations and needs. Congress is not restricted by any technical requirement but may make limited applications and resort to tests so that it may have the benefit of experience in deciding upon the continuance or extension of a policy which under the Constitution it is free to adopt. As to such choices, the question is one of wisdom and not of power. Currin, 306 U.S. at 14 , 59 S.Ct. 379 . The first sentence might acknowledge that there could be a due process limitation on some exercises of power, but it does not support Plaintiffsâ claim that the Jones Act crosses the line. The rest of the paragraph provides the most telling response, *1023 especially the final sentence. It is not for us to evaluate the wisdom of the Jones Act. That task is for Congress. Congress has the power to regulate interstate commerce, and it is up to Congress to decide how to exercise it. As Chief Justice Marshall stated nearly 200 years ago, â[t]he wisdom and the discretion of Gongress, their identity with the people, and the influence which their constituents possess at elections, are, in this, as in many other instances ... the sole restraints ... to secure them from its abuse.â Gibbons, 22 U.S. at 197 . Likewise, although it is true that â[t]he liberty protected by the Fifth Amendmentâs Due Process Clause contains within it the prohibition against denying to any person the equal protection of the laws,â United States v. Windsor, â U.S. â, 133 S.Ct. 2675, 2695 , 186 L.Ed.2d 808 (2013), âequal protection is not a license for courts to judge the wisdom, fairness, or logic of legislative choices,â FCC v. Beach Commcâns, Inc., 508 U.S. 307, 313 , 113 S.Ct. 2096 , 124 L.Ed.2d 211 (1993). Where, as here, rational basis review applies and âthere are plausible reasons for Congressâ action, our inquiry is at an end.â Id. at 313-14 , 113 S.Ct. 2096 (quotation marks omitted). This is not, for instance, a case involving invidious racial discrimination, e.g., Bolling v. Sharpe, 347 U.S. 497, 500 , 74 S.Ct. 693 , 98 L.Ed. 884 (1954), or indeed a case of intentional, invidious discrimination of any kind, see generally Vill. of Arlington Heights v. Metro. Hous. Dev. Corp., 429 U.S. 252, 265 , 97 S.Ct. 555 , 50 L.Ed.2d 450 (1977) (holding that a âdiscriminatory intent or purpose is required to show a violation of the Equal Protection Clauseâ). Thus, we decline to order that leave be granted for Plaintiffs to amend their complaint because, for the reasons discussed above, it would be futile to do so. C. Procedural Due Process Plaintiffs also assert that the district court violated their right to procedural due process by ruling on the governmentâs motion to dismiss without an oral hearing. We reject this argument. Plaintiffs admit they âhad [an] opportunity to present arguments counter to Defendantâs motion,â but they do not explain why that opportunity to present arguments in writing was inaedquate for purposes of due process. It was sufficient. See Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532, 546 , 105 S.Ct. 1487 , 84 L.Ed.2d 494 (1985) (âThe essential requirements of due process ... are notice and an opportunity to respond. The opportunity to present reasons, either in person or in writing, why [a] proposed action should not be taken is a fundamental due process requirement.â (emphasis added)). The district court did not err in ruling on the governmentâs motion without an oral hearing. III. Conclusion Plaintiffsâ complaint fails to make the showing necessary to establish Article III standing. We affirm the dismissal of the action and we decline to grant leave to amend the complaint. AFFIRMED. . The individual plaintiffs and appellants are Patrick Novak, Daniel Rocha, Ken School-land, Bjorn Arntzen, Philip Wilkerson, and William Akina; the corporate plaintiff and appellant is Kenner Inc. The action was filed as a putative class action on behalf of all persons and entities who purchased shipping services between the continental United States and Hawaii in compliance with the Jones Act from at least September 1, 1959 to the present. Plaintiffs did not seek class certification prior to dismissal of the action by the district court. Although they initially sought damages and injunctive relief, Plaintiffs have abandoned their claim for damages. . Although the district court framed its analysis under the prudential standing rubric, the Supreme Court subsequently clarified that the rule barring adjudication of generalized griev-anees is really a matter of constitutional standing under Article III. Lexmark, 134 S.Ct. at 1387 n. 3. . Strictly from a standing perspective, it would not necessarily be futile for Plaintiffs to amend their complaint. Materials outside the record support the notion that the Jones Act causes economic injury to residents of Hawaii. See, e.g., U.S. Intâl Trade Commân, The Economic Effects of Significant U.S. Import Restraints xviii (2002) (estimating that the economic welfare gain from the "complete liberalization of maritime cabotage services under the Jones Act ... would be slightly more than $656 millionâ). If Plaintiffs cured the deficiencies we have identified in their complaint, they might well be able to establish Article III standing to challenge the Jones Act. . The federal government only has the powers granted to it by the Constitution. The definition of interstate commerce under the Commerce Clause thus affects the scope of the authority given Congress by that clause, and court decisions emphasizing limits on the definition of interstate commerce are sometimes described as limiting the authority of Congress. See, e.g., Lopez, 514 U.S. at 566 , 115 S.Ct. 1624 (âCongressâ authority is limited to those powers enumerated in the Constitution, and ... those enumerated powers are interpreted as having judicially enforceable outer limits....â). Here, however, there is no dispute that the Jones Act regulates interstate commerce under any definition, and the Commerce Clause places no limits on the power of Congress to regulate within that interstate commerce realm. "[T]he sovereignty of Congress, though limited to specified objects, is plenary as to those objects.â Gibbons, 22 U.S. at 197 . [Concurrence by Friedland] FRIEDLAND, Circuit Judge, concurring: I concur in Judge Cliftonâs thoughtful opinion, which faithfully applies our circuit precedent. I write separately to express my view that San Diego County Gun Rights Committee v. Reno, 98 F.3d 1121 (9th Cir.1996), which drives the opinionâs conclusion that Plaintiffs lack Article III standing, should be reconsidered in an appropriate case. Gun Rights ignores one of the most basic rules of microeconomics. According to Gun Rights, the fact that a law âre *1024 strict[s] supplyâ of a good is insufficient to support the inference that the law causes an increase in the price of that good. 98 F.3d at 1130 . But the law of supply and demand tells us that, when demand for a good remains constant, a decrease in the supply of that good will cause an increase in price. See David BesanKow & Ronald R. BrAEUTIGAM, MICROECONOMICS 37 (4th ed.2010); see also Charles Alan Weight, AethĂźR R. Miller & Edward H. Cooper, 13a Federal PRACTICE & Procedure § 3531.5 n. 35 (3d ed.2008) (criticizing the causation analysis in Gun Rights for failing to recognize that â[r]estriction of lawful supply inevitably increases the price absent a change in the demand scheduleâ). In accordance with basic economics, plaintiffs should be able to show that a challenged statute has caused an increase in price by showing that it has decreased supply. But Gun Rights prevents plaintiffs from establishing causation in this manner unless they can show that the statute actually âdirects manufacturers or dealers to raise the price of regulatedâ goods. 98 F.3d at 1130 . This contravenes the rule that causation may be indirect: âcausation may be found even if there are multiple links in the chain connecting the defendantâs unlawful conduct to the plaintiffs injury.â Mendia v. Garcia, 768 F.3d 1009, 1012 (9th Cir.2014). As long as plaintiffs can show, âwithout relying on speculation or guesswork,â that challenged governmental conduct is âat least a substantial factorâ behind an injury, they can establish causation. Id. at 1013 . The law of supply and demand requires no speculation or guesswork, so there should be little doubt that a statute reducing supply is at least a substantial factor behind a rise in price. Were it not for Gun Rights, I would conclude that Plaintiffs have standing to challenge the Jones Act. At a minimum, Plaintiffs allege that the Jones Act limits the supply of vessels available to serve the Hawaii shipping market. This alone should be sufficient to establish that the Jones Act causes prices in that market to be higher than they otherwise would be. But, regrettably, Gun Rights requires more. That said, this case is a poor vehicle for revisiting Gun Rights because, as Judge Cliftonâs opinion explains, Plaintiffs have failed to state a claim whether or not they have established standing. I expect the day will come, however, when it will be necessary to reconsider how plaintiffs injured by high prices can show that a defendantâs challenged conduct caused those prices to increase. When it does, we should overrule Gun Rights and bring the law of our circuit into conformity with fundamental principles of economics.
Case Information
- Court
- 9th Cir.
- Decision Date
- July 30, 2015
- Status
- Precedential