Jackson Ex Rel. Jackson v. Los Lunas Community Program
Opinion
This civil rights class action lawsuit was filed thirty years ago to challenge various aspects of the institutionalization of developmentally disabled individuals at two state-supported facilities in New Mexico. After a lengthy trial in 1990, the district court ruled that Defendants—the two institutions and the individuals charged with their operation—were violating class members’ federal constitutional and statutory rights. The district court ordered the parties to develop a plan to cure the violations, and the plan was implemented over the ensuing years through several consent decrees and other court-approved agreements (collectively, consent decrees). Although the two institutions closed in the 1990s, the district court has continued to monitor whether Defendants are in compliance with the obligations set forth in those consent decrees (decree obligations). And in the twenty-five years since the court’s initial ruling, the parties have agreed to, and the court has approved, numerous additional decree obligations of varying specificity with which Defendants must comply before the court will discontinue its oversight. As of the district court’s most recent order, Defendants had yet to fulfill over 300 decree obligations.
In August 2015, Defendants moved under Federal Rule of Civil Procedure 60(b)(5) to vacate all consent decrees and to terminate the court’s oversight, arguing that changed factual circumstances warrant the requested relief. The district court denied the motion in June 2016. Defendants appealed. We vacate the 2016 Order and remand for the district court to decide whether Defendants are currently violating class members’ federal constitutional or statutory rights and to reassess the equity of continuing federal oversight with the benefit of that determination.
I. BACKGROUND
To provide context for this dispute, we begin with an overview of the procedural history of this multi-decade litigation. We then examine the district court’s ruling on Defendants’ Rule 60(b)(5) motion under the governing legal standard.
A. Litigation History
In July 1987, (wenty-one developmentally disabled individuals brought this class action lawsuit on behalf of themselves and others similarly situated. In their complaint, Plaintiffs challenged the conditions of institutionalization at Fort Stanton Hospital and Training School (Fort Stanton) and Los Lunas Hospital and Training School (Los Lunas), both of which were state-supported institutions for the developmentally disabled in New Mexico.
Jackson v. Fort Stanton Hosp. & Training Sch. (Jackson II),
In June 1988, the district court allowed more than 125 parents and guardians of residents at Fort Stanton and Los Lunas to intervene.
In June 1989, the'district court certified a class of “all persons who at that time resided at [Fort Stanton] or [Los Lunas], all persons who would become residents of the institutions during the pendency of the action, and all persons who had been transferred from these two institutions to other facilities funded by [Defendants.”
1. The 1990 Order
After a prolonged trial, the district court issued, on December 28,1990, an extensive Memorandum Opinion and Order (1990 Order).
Jackson v. Fort Stanton Hosp. & Training Sch. (Jackson I),
The district court ordered the parties to work together in good faith “to formulate
*1183
by agreement a plan to correct” the eighteen areas of deficiencies at the two institutions.
The court further ordered Defendants to prepare, by March 1,1991, “a written plan of transfer to an appropriate community setting for each resident whose [Team] has recommended placement in a community setting.”
Over the next several years, the district court entered various remedial orders and continued to oversee enforcement of those orders.
3
See Jackson v. Los Lunas Ctr. (Jackson III),
No. CIV 87-839-JAP/KBM,
2. The 1994 Stipulation Concerning Fort Stanton
In 1994, New Mexico elected to close Fort Stanton by 1995 and to transfer all of the residents at the institution to community-based services. In April 1994, the parties filed a joint motion under Rule 60(b) and
Rufo v. Inmates of Suffolk County Jail,
The district court found the parties’ joint motion “well-taken” and determined that “the proposed modification is consistent with the rights of the classmembers.” JA Vol. 3 at 582. As a result, ’ the court relieved Defendants from making further improvements to Fort Stanton. In doing so, the court stated, “[i]n the event that all classmembers have been transferred from Fort Stanton to appropriate settings by July 31, 1995, this Order and all portions of the [1990 Order] concerning corrections of' deficiencies ... at Fort Stanton will hereby be' terminated’.” Id. at 584.
3. The 1997 Joint Stipulation on Disengagement (JSD) and Plan of Action
In October 1997, the parties presented the court with the JSD, a Plan of Action, *1184 and a joint motion requesting the court’s approval of the JSD. According to the parties’ stipulation, the JSD “does not seek a remedy for past violations of Plaintiffs’ constitutional and statutory rights.” JA Vol. 7 at 1403. It is instead designed to prevent future harm by ensuring that “Plaintiffs’ rights are not violated in the community settings.” Id. at 1394. To that end, the JSD “defines the further actions and requirements” that Defendants had to complete, “and the services, supports, and benefits” that Defendants had to provide to class members, in order for Defendants to comply with their obligations under the court’s existing orders. JA Vol. 4 at 622.
The JSD acknowledges Defendants’ “substantial efforts to develop a non-discriminatory service system for persons with developmental disabilities and to provide appropriate community living arrangements and supports to classmem-bers.”
Id.
at 620,
The JSD also includes a process for judicial disengagement of Defendants’ decree obligations. And it identifies the “Continued . Improvement of Community Services” as an area subject to disengagement. The Continuous Improvement obligations address “a quality improvement approach that requires Defendants to achieve .a certain score on an annual audit.”
Jackson III,
The parties identified additional obligations in the Plan of Action, which Defendant Department of Health developed “to [ejnhance the Community Service System” for persons with developmental disabilities. JA Vol. 4 at 629. The, Plan of Action contains “a narrative, desired outcomes, and specific activities for thirteen components of the community service system.”
4
After holding a fairness hearing, the district court issued, in December 1997, an order approving the JSD and the Plan of Action. The court noted the JSD “does not call for immediate dismissal of this lawsuit,” but instead “contemplates continued judicial oversight that could extend well into the next [millennium].” Id. at 801. The court further observed that the JSD “states the parties’ intention to fulfill most of the activities described in the Plan of Action by December 31, 1998, but makes an exception for certain requirements that may not be met until December 31, 2000.” Id.
4. The 2005 Stipulation to Resolve Motion for Noncompliance (Appendix A)
In May 2004, Plaintiffs moved for an order to show cause and for further reme *1185 dial relief to require Defendants to comply ■with the court’s December 1997 order approving the JSD and the Plan of Action. In June 2004, Plaintiffs moved for an Order to Reengage Effective Case Management, Desired Outcome A, Under the Plan of Action.
In May 2005, the parties filed a Joint Stipulation on Agreed Actions to Comply with Joint Stipulation of Disengagement and Plan of Action and to Resolve Pending Motions to Show Cause and to Re-engage (2005 Stipulation). Attached to the 2005 Stipulation is “Appendix A[:] Agreed Actions to Address Contempt Motions” (Appendix A). JA Vol. 10 at 1903. The 2005 Stipulation states that it “is intended to obligate Defendants to take certain actions outside the Plan of Action as more specifically outlined in Appendix A.” Id. at 1898. “[T]he actions identified in Appendix A are intended to facilitate compliance with the JSD, to promote completion of ... Audit Recommendations, to further address Case Management even though Plan of Action Desired Outcomes related to Case Management have been previously disengaged by an order of the Court and to address certain aspects of Vocational Rehabilitation.” Id. at 1898-99. The 2005 Stipulation clarifies that it is not intended to change or modify the terms of the JSD, which remain in effect. And it fimther states that Defendants “agree to implement all of the actions identified and listed in Appendix A,” and that the parties agree some of the Appendix A actions supplanted or modified activities listed in the Plan of Action. Id. at 1899.
Appendix A imposes 107 specific obligations on Defendants. Some of the obligations are identified as “complete,” while many obligations were scheduled to be completed by May 2006 or in 2007. Although those deadlines were not met, Defendants represent that one third of the activities in Appendix A have been disengaged.
Jackson III,
The district court issued an order adopting thé parties’ stipulation the same day the parties submitted it.
5. The 2012 Order
In mid-July 2010, Plaintiffs filed another Motion for Further Remedial Relief to Remedy Noncompliance. After full briefing, the district court denied the motion without prejudice so Plaintiffs could refile after an evidentiary hearing scheduled for June 2011.
On April 26, 2011—the day before the pretrial conference for the evidentiary hearing—Defendants filed a Rule 60(b)(5) motion to terminate all remaining orders and to conclude the court’s oversight. Defendants maintained that they have made more than a reasonable effort to comply with the court’s orders, that they have substantially complied, with, all existing orders, and that changed factual conditions make continuing compliance substantially more onerous. The court held the motion in abeyance and suspended briefing on it until the completion of the evidentiary hearing, which occurred from June 13 to June 17, 2011.
Jackson III,
In November 2011, after the evidentiary hearing, Plaintiffs filed a Renewed Motion for Further Remedial Relief to Remedy Noncomplianee. Plaintiffs argued that Defendants had failed to comply with the JSD, the Plan of Action, Appendix A, the Rehabilitation Act, and the ADA (collectively, decrees). Plaintiffs also asked the court to appoint a Jackson Compliance Administrator (Compliance Administrator) to oversee and ensure Defendants’ compliance. In October 2012, the district court issued a 206-page, Findings of Fact and *1186 Conclusions of Law (2012 Order). The court praised Defendants’ “innovations and progress,” but determined that Defendants were still in substantial noncompliance with the decree obligations. JA Vol. 25 at 5303. Indeed, the court identified instances of noncompliance in the areas of health, safety, and supported employment.
Based on the evidence before it, howevr er, the court stated it “is unable to conclude that Defendants have violated the Rehabilitation Act and ADA.” The court explained:
To start with, the Court could not conclude that Defendants have discriminated against severely disabled class members with respect to the provision of health care services. In fact, the Court commends Defendants for accommodating those severely disabled class members who live in rural New México by providing them' meaningful access to health care services ... and for developing more and better health care services directed to severely disabled persons. There is, however, a question as to whether Defendants violated the Rehar bilitation Act and ADA by intentionally denying severely disabled class members supported employment services equivalent to' those received by less severely disabled persons. Unfortunately, that question of disparate treatment cannot be analyzed at this time, but must be further briefed. .On the other hand, the Court was unable to find a violation ^ of the Rehabilitation. Act and ADA when severely disabled class members choose to participate in segregated, congregate day services while less severely .disabled persons more often chose to engage in supported employment. ■ . '
Id. at 5304-05.
The court also noted that Defendants “are close to substantially complying with [their] obligations,” and suggested that “the parties reconsider the descriptions of the more broadly stated obligations and restate them in language that makes the obligations achievable.” Id. at 5303-04. After all, “many of the obligations are described in language that is more aspirational in nature than operational.” Id. at 5304. Finally, the court granted Plaintiffs’ request to appoint a Compliance Administrator, who could “prod- Defendants into final substantial compliance.” 5 Id. at 5305.
6. The 2015 Revised Table IY
After the district court issued its 2012 Order, the parties were to develop a consolidated remedial plan in the áreas of health, safety, and supported employment to address the identified violations.
See Jackson
III,
In June 2015, the parties jointly filed the 2015 Revised Table IV—which is a final list of objectives in the areas of health, safety, and supported employment—along with evaluative components (or disengagement criteria) and projected completion dates for each objective. In November *1187 2015, the parties jointly filed a Stipulated Agreement on Disengagement Process for Revised Table IV. Under the agreed-upon disengagement process, Defendants would submit a request for disengagement of a specific decree objective to the Compliance Administrator, who would then make a written “determination” on whether the disengagement criteria had been met. If the Compliance Administrator did not agree that the criteria had been met, then Defendants could withdraw their request for a determination or pursue a disengagement motion with the court.
The court noted that, as of May 2016, the Compliance Administrator had issued approximately three determinations on Defendants’ requests, with roughly 197 decree obligations remaining for which the Compliance Administrator had not issued preliminary determinations.
Jackson III,
B. District Court’s Denial of Defendants’ Rule 60(b)(5) Motion
In August 2015, Defendants filed their current motion under Rule 60(b)(5), arguing that factual circumstances have changed to the extent that the ■ district court should vacate all remaining orders and conclude its oversight entirely. Defendants identified four changed factual circumstances they claim warrant vacatur of all pertinent decrees and termination of the case. First,. Defendants argued that their decree obligations have increased in number and complexity to the point they will never be able to satisfy the “labyrinth of obligations”- that are ever-changing, ever-increasing, and not subject to objective measurement.
Jackson
III,
Second, Defendants argued that some of their obligations are now outdated:
1) the JSD provisions about community practice improvements at [Los Lunas], which are. no longer relevant as that institution closed in 1997; 2) the JSD formulate for disengagement of the Continuous Improvement outcomes, which is “convoluted,” “confusing,”-and “unworkable”; 3) the JSD Continuous Improvement obligations that “are no longer programmatically sound and are no longer the desire” of [class members],” and that are not relevant to the present-day needs of [class members]; 4) the 1997 Plan of Action obligations that have been “morphed into new requirements” under Revised Table IV and that are “long detached from remedying the original constitutional issues”; and 5) Appendix A obligations that consist of vague and aspirational language, making disengagement impossible.
Id. at *12 (citations omitted).
Third, while conceding they have not substantially complied with all their decree obligations, Defendants maintained they have remedied all constitutional violations. Id. They argued they have thus attained the “objects” of the consent decrees, and they have corrected all - eighteen areas of deficiencies the district court identified in its 1990 Order. Id. at *12-13. And if more is required, they insisted, this case will remain a never-ending process of continuing quality control. Id. at *12.
*1188 Fourth, Defendants argued that the increased litigation costs inhibit New Mexico’s ability to fund other important programs. Id. at *12-13. For instance, New Mexico has spent more than $50 million related to this litigation in the last eight years. Id. at *12. And, as of 2009, the average yearly cost to provide services to class members had risen from $67,290.00 to $135,535.00 per class member, while New Mexico’s $32,992.00 per capita income was the ninth lowest in the United States. Id. at *13.
Based on these four changed circumstances, Defendants contended that notions of federalism supported their request for relief. Indeed, they argued that federalism concerns are heightened here because the consent decrees have the effect of dictating state and local budget priorities and .improperly depriving state officials of their designated legislative and executive powers. Id. at *13.
In an order issued in June 2016, the court ruled that Defendants had not met their burden to show the existence of a significant change in fact warranting vaca-tur of all pertinent orders and termination of the case. First, the court stated that “while Defendants’ obligations are onerous,” Defendants never identified when these asserted changed factual circumstances occurred; indeed,' “[s]ome of the complained about developments have been happening for years.” Id. at *14.
Next, the court concluded that Defendants have not shown that the objects of the pertinent decrees have been attained. While the court recognized that the decrees were designed to restore class members to the position they would have occupied absent violations of federal law, the court stated that the “more specific ‘essential’ purposes’ ” of those decrees “are to provide class members with adequate health care, a reasonably safe environment, and supported employment opportunities.” Id. (quoting 2012 Order at 33). And based on Defendants’ concessions that they have not substantially complied with all the decree obligations, the court concluded that Defendants “have not fulfilled the essential purposes of the pertinent decrees.” Id.
Further, the court found Defendants’ assertion that they long ago remedied all constitutional violations to be “somewhat misleading.” Id. at *14-15. The court explained that the decree obligations in the JSD, the Plan of Action, and Appendix A “all flowed from [its] original findings of [federal] violations in 1990.” Id. at *15. And it noted that Revised Table IV was developed in response to the 2012 findings of approximately 100 decree violations. Id. The court stated that it “correlated its specific findings of violations in 2012 with enumerated requirements in the JSD, Plan of Action, and Appendix A.” Id. “Stated differently, the October 2012 violations evolved from compliance issues concerning obligations that first appeared in the JSD, Plan of Action, and Appendix A that Defendants had not yet satisfied.” Id.
The court also took issue with Defendants’ characterization of the 2012 Order as finding no ongoing violations of federal law. The court clarified that it had made no findings in its 2012 Order on continuing violations of federal law. Id. Although Plaintiffs had argued that Defendants violated the Rehabilitation Act and .the ADA, the court ruled then that “there was not sufficient evidence of discrimination under” either Act. Id. But the court explained that it was not asked, and thus made no findings on, whether Defendants otherwise continued to violate class members’ constitutional rights. Id. With respect to the 2016 motion to terminate oversight, the district court likewise did not resolve the question of current compliance with federal law, stating it “is not in the posi *1189 tion to assess, and, therefore, cannot conclude that Defendants are no longer violating constitutional or federal law.” Id. at *16. But “[b]ecause all of [the] outstanding obligations grew out of the Court’s 1990 Order and/or the related 2012 findings of violations,” the district court concluded that “Defendants have not convinced the Court that they have satisfied the essential purposes of the JSD, Plan of Action, Appendix A, and Revised Table IV.” Id. at *16.
The court then rejected Defendants’ claim that principles of federalism dictated the termination of oversight. The court acknowledged that the Supreme Court, in
Horne v. Flores,
Ultimately, the court concluded that Defendants “have not come close to showing that vacatur of all of the orders and decrees is suitably tailored to the proposed changed circumstances.”
II. ANALYSIS
On appeal, Defendants assert that the district court abused its discretion when it denied their Rule 60(b)(5) motion. Defendants contend significant changes in factual circumstances warrant termination of all consent decrees and of the court’s oversight. Specifically, they claim that compliance with the decrees 'has become substantially more onerous, the decrees have become unworkable due to unforeseen obstacles, and continued enforcement of the decrees would be detrimental to the public interest. They also argue that the district court misapplied Horne by requiring them to show attainment of specific essential purposes identified by,the district court rather than compliance with federal law.
A. Appellate Jurisdiction
Before addressing the merits, we must first resolve the parties’ dispute about whether the district court’s June 2016 order is a final, appealable order under
As relevant here, “[t]he general rules governing our review of a district court’s order granting or denying a Rule 60(b) motion are faii-ly well settled.”
Stubblefield v. Windsor Capital Grp.,
Here, Defendants moved under Rule 60(b) to- vacate all pertinent orders— the JSD, the Plan of Action, Appendix A, and Revised Table IV—and to terminate this case. The parties and district court agree that the pertinent orders are consent decrees.
See Jackson III,
Plaintiffs disagree. Relying on McClendon, they argue the district court’s June 2016 order is not a final, appealable order because it signals that more litigation is on the way. Plaintiffs believe future litigation will occur when they inevitably file another motion for remedial relief to remedy Defendants’ noncompliance with the consent decrees. In other words, the June 2016 Order is not final because the district court will continue to monitor Defendants’ compliance with its prior consent decrees (i.e., the JSD, the Plan of Action, Appendix'A, and Revised Table IV).
But under
McClendon,
that the .district court may have to continue to oversee Defendants’ compliance with the consent decrees is not enough to strip the June 2016 order of its status as a final decision.
*1191
Instead, the relevant inquiry is whether the June 2016 order will result in more litigation
on the merits
in the district court.
See McClendon,
Under this formulation, the June 2016 order is a final, appealable decision. First, the June 2016 order does not signal that more litigation on the merits is on the way. In fact, the 1990 order, which followed a lengthy trial, resolved the merits of the litigation, and the district court retained jurisdiction only to oversee implementation of the ensuing consent decrees. Second, as discussed above, the 2016 order denied a Rule 60(b) motion challenging several final decisions of the district court.
To be sure, the June 2016 order does not result in the district court dissociating itself from the case. Much the opposite, it means the district court will, as it has since it issued the 1990 Order, continue to oversee Defendants’ compliance with the pertinent consent decrees. But this fact alone does not deprive us of jurisdiction. After all, each decree was a final, appealable decision under § 1291, even though the district court continued to oversee each decree’s implementation.
See Johnson,
In sum, the finality test asks whether the ruling challenged in the denied Rule 60(b) motion was “a final decision of the district court.”
Stubblefield,
B. The Rule 60(b)(5) Motion
We now turn to Defendants’ argument that termination of all pertinent -orders and of this, case is appropriate due to significant changes in factual circumstances. Our analysis proceeds in three parts. First,’ we discuss the relevant standard of review. Second, we outline the law governing Rule 60(b)(5) motions in institutional reform litigation. Third, we apply that standard to the 'facts of this case.
1. Standard of Review
We review a district court’s denial of a Rule 60(b) motion for an' abuse .of discretion.
Servants of Paraclete v. Does,
2. Legal Standard
A Rule 60(b) motion for relief from judgment is an extraordinary remedy and may be granted- only in exceptional
*1192
circumstances. Id.;
see V.T.A., Inc.,
Rule 60(b)(5) permits relief from a judgment or order if “[1] the judgment has been satisfied, released, or discharged; [2] it is based on an earlier judgment that has been reversed or vacated;
or
[3] applying it prospectively is no longer equitable.” Fed. R. Civ. P. 60(b)(5) (emphasis added). Use of the disjunctive “or” demonstrates “that each of the provision’s three grounds for relief is independently sufficient and therefore that relief may be warranted even if [a movant has] not ‘satisfied’ the original order.”
Horne v. Flores,
We now turn to a discussion of the limits of federal involvement in institutional reform litigation and of the two leading Supreme Court cases addressing the no-longer-equitable basis for Rule 60(b)(5) relief:
Rufo v. Inmates of Suffolk County Jail,
a. Consent Decrees Generally
A consent decree “entered in federal court must be directed to protects ing federal interests.”
Frew v. Hawkins,
Equity requires a federal court fashioning and implementing a consent decree to focus on three factors.
See Milliken v. Bradley,
Second, the nature and scope of the remedy provided by a federal consent decree depends on the nature and scope of the federal-law violation.
Third, federal courts “must take into account the interests of state and local authorities in managing their own affairs,” consistent with the demands of federal law.
Importantly, federal consent decrees are temporary solutions that may be kept in place only as long as necessary to cure an unlawful condition.
See Missouri v. Jenkins,
b. Rufo v. Inmates of Suffolk County Jail
In
Rufo v. Inmates of Suffolk County Jail,
Days before the deadline to present a plan for a new facility, the state defendants submitted a plan to create a substitute facility with only single-occupancy cells, and the district court entered a consent decree obligating the state defendants to construct a facility containing 309 single occupancy rooms.
The state defendants again moved to modify the consent decree, this time to allow for double bunkipg of male detainees in roughly one-third of the cells in the new jail.
The Supreme Court granted certiorari and remanded, so the lower courts could apply the proper standard to modification requests under Rule 60(b)(5).
See
The Court then outlined what a movant must show when seeking modification of a consent decree under Rule 60(b)(5). The party seeking modification of a consent decree bears the burden of showing that “a significant change either in factual conditions or in law” warrants revision of the decree.
Conversely, a court should deny a party’s request for a modification under Rule 60(b)(5) if the party merely establishes that “it is no longer convenient [for the moving party] to live with the terms of a consent decree.”
If it is clear that a party anticipated changing conditions that would make performance of the decree more onerous but nevertheless agreed to the decree, that party would have to satisfy a heavy burden to convince a court that it agreed to the decree in good faith, made a reasonable effort to comply with the decree, and should be relieved of the undertaking under Rule 60(b).
If a party meets its burden of establishing a change in fact that warrants modification of a consent decree, the district court should examine “whether the proposed modification is suitably tailored to the changed circumstance.”
The Court then instructed the district court on remand to first consider whether the purported change in factual circumstances—the upsurge in the pretrial detainee population—was foreseen by the state defendants.
Id.
at 385,
Even if the decree is construed as an undertaking by [the state defendants] to provide single cells for pretrial detainees, to relieve [them] from that promise based on changed conditions does not necessarily violate the basic purpose of the decree. That purpose was to provide a remedy for what had been found, based on a variety of factors, including double celling, to be unconstitutional conditions obtaining in the [jail]. If modification of one term of a consent decree defeats the purpose of the decree, obviously modification would be all but impossible. That cannot be the rule.' The District Court was thus in error in holding that ... modification of the single cell requirement was necessarily forbidden.
c. Horne v. Flores
In
Horne v. Flores,
Over the next'several years, the district court- entered various additional orders and injunctions aimed at improving the state’s ELL incremental funding.
*1196
After accruing over $20 million in fines, the state legislature passed HB 2064, a bill that was designed “to implement a permanent funding solution to the problems identified” by the district court.
The Supreme Court reversed. The Court first reiterated that a party may move to modify or vacate an order under Rule 60(b)(5) if “ ‘a significant change either in factual conditions or in law' renders continued enforcement ‘detrimental to the public interest.’ ”
The Court then stressed that Rule 60(b)(5) serves an important function in institutional reform litigation for three reasons.
Recognizing that states have limited resources, the Court expressed sensitivity toward the fact that “[w]hen a federal court orders that money be appropriated for one program, the effect is often to take funds away from other important programs.”
For the foregoing reasons, courts must take a flexible approach to motions under Rule 60(b)(5) where the moving party seeks relief from a long-lasting decree.
Accordingly, “a critical question in [the] Rule 60(b)(5) inquiry is whether the objective of the [challenged decree] has been achieved.”
Applying these standards, the Court in
Horne
concluded that the Ninth Circuit erred in two ways. First, instead of applying a flexible approach, the Ninth Circuit “used a heightened standard that paid insufficient attention to federalism concerns.”
Id. at 451,
Second, the Court held that instead of “inquiring broadly into whether changed conditions in [the schools] provided evidence of an ELL program that complied with the EEOA,”
To determine whether relief was proper under the equity basis for modification, the Ninth Circuit “needed to ascertain whether ongoing enforcement of the original order was supported by an ongoing violation of federal law.”
The Court explained that while the Ninth Circuit focused on ELL incremental funding, “funding is simply a means [of complying with the EEOA], not the end
*1198
(here, the EEOA).”
The Court then remanded for the district court to make “up-to-date” findings and to consider whether four changed circumstances advanced by the defendants warranted releasing • the state from the earlier judgment.
See
d. Applicability of Horne & Tension between Horne and Rufo
As opposed • to the present case that features a Rule 60(b)(5) motion seeking a modification of a consent
decree, Horne
involved a Rule 60(b)(5) motion seeking a modification of a court-issued injunction, as well as additional orders crafted by the district court.
See
Three considerations compel us to join the Sixth Circuit’s apparent conclusion that
Horne
fully applies to a Rule 60(b)(5) motion seeking modification of a consent decree. First, while the parties may form the essential terms of a consent decree, as we noted earliér when discussing our jurisdiction over this appeal, a district court’s order approving the consent decree is tantamount to a final judgment on the merits.
See supra
1190-91 (citing
Johnson,
Second, when discussing the proper inquiries for evaluating a Rule 60(b)(5) motion in institutional reform litigation,
Horne
uses “consent decree” or “decree” interchangeably with injunction and court order even though
Horne
involved requested modifications to an injunction and several court orders but did not involve a consent decree.
See Horne,
Third, the same federalism concerns at the heart of Horne are present in institutional reform cases featuring consent decrees. Admittedly, the acquiescence of state or local governmental officials to the terms of a consent decree might diminish federalism concerns at the inception of the decree. But where, as here, a consent decree remains in effect for decades, enforcement'of the decree necessarily interjects a federal court into local affairs and binds local governmental officials who were not parties to the .consent'decree. The federal court, thereby, effectively limits the democratic process by restricting the array of resources available to the governmental officials for the enactment of other policies.
Applying
Horne
to Rule 60(b)(5) motions for modifications to consent decrees does not come without complication. Notably, an apparent tension exists between
Horne
and
Rufo
with respect to the appropriate course of action where a party seeking modification has brought itself into compliance with federal law but has not substantially complied with the specific terms of the consent decree or court order.
Compare Horne,
To the extent
Rufo
and
Horne
differ as to the appropriate course of action when a party seeks a Rule 60(b)(5) modification to an order in an institutional reform case, two considerations cause us to follow the course outlined in
Horne
when the significant change advanced as the basis for Rule 60(b)(5) modification is the defendant’s alleged ongoing compliaiice with federal law. First,
Rufo
involved a proposed modification to a plan that, if faithfully implemented over time, would eventually cure the federal law violation.
See
Second,
Horne
represents the Court’s most recent proclamation regarding the standard for obtaining a modification to an order in institutional reform litigation. And, as noted by scholars,
Horne
is the latest.ruling in a trend of decisions that lower the threshold for defendants to obtain a modification to, or the dissolution of, orders in long-lasting institutional reform cases. Jason Parkin,
Aging Injunctions & the Legacy of Institutional Reform Litigation,
As we read
Horne,
if a party seeking modification to a consent decree demonstrates a significant change 'in circumstances, the district court must take a flexible approach and consider whether the moving party has implemented a durable remedy to cure the federal law violation underlying the institutional reform litigation.
See John B.,
Finally, we note that when applying the flexible approach and evaluating whether a moving party implemented a durable remedy, a district court must consider the totality of the moving party’s efforts to demonstrate sustained compliance with federal law. In this respect, there is not- a single path, such as the adoption of new legislation, by which a party can demonstrate the implementation of a durable remedy.
See
e. Summary
From the foregoing discussion of Rufo, Horne, and other institutional reform litigation cases, several principles emerge that are critical to our analysis of whether Defendants are entitled to relief under Rule 60(b)(5).
First, a motion for relief from a consent decree based on an assertion that “applying it prospectively is no longer equitable” demands a different focus than a motion based on an assertion that “the judgment has been satisfied, released or discharged.”
See
Fed. R. Civ. P. 60(b)(5);
Horne,
Second, a flexible approach to evaluating the equities of such a motion is crucial where, as in this case, institutional reform is sought.
Horne,
Third, when a party seeks termination or vacatur of a consent decree based on the inequity of continued oversight, a court must determine not only whether changed circumstances exist, but also whether the “objective” of the decree—that is, whether compliance with federal law—has been attained.
See
Last, the existence of a durable remedy may warrant disengagement of judicial oversight. The Horne Court’s single reference to a durable remedy states:,
[A] critical question in this Rule 60(b)(5) inquiry is whether the objective of the District Court’s [initial] order—ie., satisfaction of the EEOA’s “appropriate action” standard—has been achieved. See [Frew,]540 U.S. at 442 [124 S.Ct. 899 ]. If a durable remedy has been implemented, continued enforcement of the order is not only unnecessary, but improper. See Milliken, [433 U.S.] at 282 [97 S.Ct. 2749 ].
Horne,
And like our sister circuits, we do not read the language in
Horne
too restrictively with respect to what may constitute a durable remedy. The Court has admonished against taking language from its opinions out of context and giving it “talis-manic. quality.”
Rufo,
When a Rule 60(b)(5) movant has established both the absence of an ongoing violation of federal law and a future commitment to remain in compliance with federal law, federalism concerns should inform a court’s flexible determination as to how a consent decree will be modified. Rule 60(b)(5) dictates as much.
See Rufo,
In summation, if Defendants here can show they ¿re no longer violating the class members’ federal rights, and the district court has reason to' believe Defendants’ compliance with federal law is durable, then “continued enforcement of the District Court’s original order[s] is inequitable within the meaning of Rule 60(b)(5), and relief is warranted.”
Horne,
3. Application
Since this ease’s inception, the district court has expended considerable effort and displayed exceptional skill resolving the numerous issues that have arisen. Despite this fine stewardship, two aspects of the ruling on Defendants’ Rule 60(b)(5) motion require us to vacate the June 2016 order and to remand for further proceedings in the district court.
First, the district court’s determination that there are no changed circumstances appears to be inconsistent with its factual findings. Defendants maintain that changed factual circumstances warrant relief, including that (a) their obligations have increased in number and complexity to the point the ¡ obligations have become substantially onerous, (b) they remedied the-constitutional violations giving rise to this litigation and are in compliance with federal law, and (c) increased costs to litigate this case and to provide services to class members have inhibited the State’s ability to fund other important programs such that continued enforcement of the decree is contrary to the public interest.
Although the district court concluded that Defendants “have not presented sufficient changed circumstances ... to warrant the requested relief,”
Jackson III,
Despite accepting these facts advanced by Defendants, the district court concluded, without adequate explanation, that the' facts did not amount to a significant change in circumstances. But the district court’s conclusion that the obligations on the Defendants are “onerous” suggests Defendants established a significant change in circumstances under Rufo’s first two prongs for showing a change in facts warranting modification—that “changed factual conditions make compliance with the decree substantially more onerous” and that “a decree' proves to be unworkable because of unforeseen obstacles.”
See Rufo,
Second, federalism concerns are heightened here because the decrees and the court’s continued oversight have “the effect of dictating state ... budget priorities.” Hor
ne,
Like the Ninth Circuit’s analysis in
Horne,
the district court’s analysis on this point was too narrow, focusing almost entirely on whether defendants had fulfilled the numerous, detailed obligations provided in the consent decrees. But because Defendants move on the ground that continued enforcement of the consent decrees, is no longer equitable, the district court should have “ascertained] whether ongoing enforcement of the [decrees] was supported by an ongoing violation óf federal law,” see
Horne,
The district court appears to have focused on whether Defendants substantially complied with the decree obligations, as well as an overly narrow- view of the objects of the consent decree. Substantial compliance with all the obligations in the pertinent decrees would likely place New Mexico in compliance with federal law. But the obligations are merely a means of accomplishing that goal, not the end.
See Horne,
In sum, due to the public interests and federalism concerns, continued enforcement of the consent decrees is warranted only to the extent Defendants are in current violation of federal law or have reached only fleeting compliance. We remand so the district court can make up-to-date findings and determine whether Defendants are currently violating class members’ rights under' the Fourteenth Amendment and the Rehabilitation Act. On remand, the district court should conduct the necessary proceedings to develop a record that would allow it to make this determination. If the court then concludes Defendants are not violating class members’ rights under federal law, the court should assess the durability of that compliance. In the'event that Defendants have implemented a durable remedy, the court should next address whether vacatur of all pertinent orders and termination of this case is appropriate.
III. CONCLUSION.
We vacate the district court’s June 2016 Order and remand so the court can make appropriate findings and conclusions and then reassess the equities under Rule 60(b) with the benefit of those findings and conclusions.
. The eighteen areas of deficiencies are: (1) individual program plans: (2) medical records; (3) discharge plans; (4) data collection; (5) qualified mental retardation professional services; (6) behavior management; (7) use of physical restraints; (8) prevention of abuse of . residents; (9) reduction of accidents and injuries to residents; (10) reports of abuse, accidents, and injuries; (1.1) staff supervision; (12) preservice training of staff; (13) in-service training of staff; (14) sufficiency of professional staff; (15) adaptive equipment; (16) functional and chronologically age appropriate programming; (17) coordination between residential areas and training program areas; and (18) inadequate space in training program areas.
Jackson v. Fort Stanton Hosp. & Training Sch.,
. The district court further concluded that Defendants violated class members’ substantive due process rights, by "considering the present availability of community services when determining whether to recommend the residents for community placement.”
Jackson v. Fort Stanton Hosp. & Training Sch.
(Jack
son II),
. In late 1993, Plaintiffs moved to amend their complaint by interlineation to assert a claim under the Americans with Disabilities Act (ADA). Plaintiffs' proposed claim asserted that Defendants violated the ADA by excluding class members with disabilities from certain public programs and places of public accommodation and service and by segregating class members from their communities by congregating them in Fort Stanton and Los Lunas. In early 1994, the court granted Plaintiffs’ motion,
. The thirteen components are (1) quality enhancement, (2) community incident management system, (3) training, (4) management information systems, (5) individual service planning, (6) case management, (7) behavioral services, (8) crisis response, (9) sexuality, (10) supported employment, (11) assistive technology, (12) medical services, and (13) regional offices.
. After the court issued its 2012 Order, Plaintiffs moved' to modify the 2012 Order with respect to their claims under the Rehabilitation Act and the ADA. Plaintiffs asked the court to delete its, findings and conclusions "on all discrimination claims regarding severity of disability and segregation,” to strike those portions of their November 2011 Renewed Motion for. Remedial Relief to Remedy Noncompliance based on' the Rehabilitation Act and the ADA, and to vacate the pertinent sections from its 2012 Order. JA Vol. 25 at ,5308-09. The court denied the motion to modify, but, on its own initiative, granted Plaintiffs leave to file a motion seeking relief on their disparate treatment claim. Plaintiffs never filed a motion seeking relief on that claim.
. Here, the district court has been involved with this case for three decades. It has personal knowledge of the efforts by the Defendants to meet their obligations and the complexity involved in setting compliance measures.
. Defendants may have anticipated at the time they entered into the pertinent decrees that the number and complexity of obligations would substantially increase. After all, their obligations did not become onerous as a result of changed factual circumstances occurring after they entered into the decrees—it was the act of entering into the decrees itself that multiplied their obligations. On remand, if the district court finds that Defendants anticipated that their obligations would, substantially increase in number and complexity, Defendants would have to “satisfy a heavy burden to convince [the] court that [they] agreed to the decree[s] in good faith, made a reasonable effort to comply with the decree[s], and should be relieved of the undertaking under Rule 60(b).”
Rufo,
. To be sure, the district court questioned the timing of the changes relative to the Defendants’ pending, August 25, 2015, Rule 60(b)(5) motion. This explanation, however, may not justify rejecting the conclusion that a significant change in circumstances occurred where (1) Defendants filed a Rule 60(b)(5) motion in 2011 that the district court terminated without ruling on the merits of the motion and (2) the district court made no reference to the requirement in Fed. R. Civ. P. 60(c)(1) that a Rule 60(b) motion be “made within a reasonable time.” Of course, on remand, the district court is free to perform a Rule 60(c)(1) timeliness analysis and conclude that, even in light of the 2011 Rule 60(b)(5) motion, Defendants did not seek relief “within a reasonable •time” of the change in circumstances upon which they rely.
. The burden of showing compliance with federal law is, of course, on the Defendants.
. The district court also justified its ruling based on its finding that the obligations set forth in the JSD, the Plan of Action, and Appendix Á "all flowed from [its] original findings of violations in 1990.”
Jackson III,
Reference
- Full Case Name
- Walter Stephen JACKSON, by His Parents and Next Friends, Walter and Helen Jackson; Steve Nunez, by His Guardian and Next Friend, ARC of New Mexico; Mary Katherine Nowak, by Her Next Friend, James W. Ellis, Esquire; Richard Stanfield, by His Father and Next Friend, the Reverend Clyde Stanfield; Betty Young, by Her Next Friend, Mary Dudley, Ph.D.; Kelly Van Curen, by Her Parents and Next Friends, Ted and Sallie Van Curen, on Behalf of Themselves and All Others Similarly Situated, Plaintiffs-Appellees, and ARC of New Mexico; Ava Peets, Plaintiffs Intervenors-Appellees, v. LOS LUNAS COMMUNITY PROGRAM; New Mexico Department of Health; Lynn Gallagher, in Her Official Capacity as Secretary of the New Mexico Department of Health; Jill Marshall, in Her Official Capacity as Administrator for the Los Lunas Community Program; New Mexico Human Services Department; Brent Earnest, in His Official Capacity as Secretary of the New Mexico Human Services Department; New Mexico Public Education Department; Joe D. Cordova, in His Official Capacity as Director of the New Mexico Vocational Rehabilitation Division, Defendants-Appellants
- Cited By
- 80 cases
- Status
- Published