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Title 28 — Judiciary and Judicial ProcedureRelease 119-73not60

§1342 Rate Orders of State Agencies

Title 28 › Part IV— JURISDICTION AND VENUE › Chapter 85— DISTRICT COURTS; JURISDICTION › § 1342

Last updated Apr 5, 2026|Official source

Summary

Federal district courts must not stop a state agency or local rate board from enforcing an order that sets utility rates when all four things are true: (1) a federal court could only hear the case because the parties are from different states or someone claims a U.S. Constitutional violation; (2) the order does not affect interstate commerce; (3) the order was made after reasonable notice and a hearing; and (4) state courts can give a clear, quick, and effective remedy.

Full Legal Text

Title 28, §1342

Judiciary and Judicial Procedure — Source: USLM XML via OLRC

The district courts shall not enjoin, suspend or restrain the operation of, or compliance with, any order affecting rates chargeable by a public utility and made by a State administrative agency or a rate-making body of a State political subdivision, where:
(1)Jurisdiction is based solely on diversity of citizenship or repugnance of the order to the Federal Constitution; and,
(2)The order does not interfere with interstate commerce; and,
(3)The order has been made after reasonable notice and hearing; and,
(4)A plain, speedy and efficient remedy may be had in the courts of such State.

Legislative History

Notes & Related Subsidiaries

Historical and Revision Notes

Based on title 28, U.S.C., 1940 ed., § 41(1) (Mar. 3, 1911, ch. 231, § 24, par. 1, 36 Stat. 1091; May 14, 1934, ch. 283, § 1, 48 Stat. 775; Aug. 21, 1937, ch. 726, § 1, 50 Stat. 738; Apr. 20, 1940, ch. 117, 54 Stat. 143). This section rearranges and restates the fourth sentence of section 41(1) of title 28, U.S.C., 1940 ed. Other provisions of section 41(1) of title 28, U.S.C., 1940 ed., are incorporated in section 1331, 1332, 1341, 1345, 1354, and 1359 of this title. Words “at law or in equity” before “in the courts of such State” were omitted as unnecessary. Words “civil action” were substituted for “suit,” in view of Rule 2 of the Federal Rules of Civil Procedure. Word “operation” was substituted for “

Enforcement

, operation or execution” for the same reason.

Reference

Citations & Metadata

Citation

28 U.S.C. § 1342

Title 28 — Judiciary and Judicial Procedure

Last Updated

Apr 5, 2026

Release point: 119-73not60