Wicomico Nursing Home v. Lourdes Padilla
Opinion
Wicomico Nursing Home, Oakview SNF, LLC, Anchorage Nursing, LLC, and Brooke Grove Foundation, Inc. (the "Nursing Homes"), on behalf of eleven residents, sued Lourdes Padilla, the Secretary of the Maryland Department of Human Services, and Dennis Schrader, the Secretary of the Maryland Department of Health (the "Secretaries"). The Nursing Homes allege that the Secretaries wrongfully denied the residents Medicaid benefits in violation of the Fourteenth Amendment and several federal statutes. The district court dismissed the Nursing Homes' Complaint for lack of subject matter jurisdiction and failure to state a claim upon which relief could be granted. The Nursing Homes moved to alter or amend the judgment, which the district court denied. The Nursing Homes now appeal both orders. For the reasons set forth below, we affirm the district court's determinations.
I.
"Medicaid is a cooperative program through which the federal government offers financial assistance to states, allowing them to provide medical services to individuals with limited incomes."
Pashby v. Delia
,
The Nursing Homes alleged the Secretaries' handling of the Medicaid program did not comply with state and federal law. For example, the Nursing Homes alleged in their Complaint that the Secretaries did not seek to obtain Medicaid applicants' financial information electronically, as required by federal regulation, but placed the burden of showing need on applicants. They also alleged the Secretaries did not comply with either federal or state laws requiring them to inform an applicant that his application had been denied. Instead, the Complaint alleges, the Secretaries denied Medicaid applications but told applicants that the applications were "being reconsidered and/or reactivated." J.A. 19 ¶ 43 (internal quotation marks omitted). The Nursing Homes go on to allege that the reactivation procedure was confusing and applied in an arbitrary manner.
Based on these alleged deficiencies, the Nursing Homes, "as assignee and/or authorized representative of" one or more of eleven of their current or former residents (collectively, the "Residents"), 1 initiated a lawsuit against the Secretaries in the District of Maryland. J.A. 9. According to the Complaint, the Residents had been denied Medicaid coverage in the past, had received services from one of the Nursing Homes after being denied Medicaid coverage, and carried "a substantial outstanding balance" with their respective Nursing Homes. J.A. 11-14 ¶¶ 5-15.
Alleging various causes of action under the Fourteenth Amendment, the Medicaid Act, Title II of the Americans with Disabilities Act (the "ADA"), and Section 504 of the Rehabilitation Act, the Nursing Homes asked for declaratory relief and an injunction "requiring the [Secretaries] to automatically approve the [Residents'] Medicaid benefits" J.A. 34 ¶ 131, to apply retroactively to the day each Resident became eligible for Medicaid benefits. The Nursing Homes also sought compensatory and emotional distress damages.
The district court dismissed the Complaint for lack of subject matter jurisdiction on two grounds. First, it concluded the Eleventh Amendment barred the Nursing Homes' Fourteenth Amendment and Medicaid Act claims. The court noted that the Eleventh Amendment allows only prospective relief, but the relief the Nursing Homes sought was retrospective in nature. Separately, the district court found that the Nursing Homes' claims for prospective relief were, at best, moot because the Residents were either receiving Medicaid benefits or deceased so no prospective relief could be given. Second, the court held that the Nursing Homes failed to state a plausible due process claim because the Residents had an opportunity to challenge the Secretaries' actions through the state administrative and judicial processes. Based on these holdings, the district court dismissed the case by order of August 7, 2017, but without specifically addressing the ADA or Rehabilitation Act claims. The Nursing Homes timely appealed the court's order.
The Nursing Homes also moved to alter or amend the district court's dismissal order under Rule 59(e) of the Federal Rules of Civil Procedure, contending that the court had overlooked their ADA and Rehabilitation Act claims which were not foreclosed by the Eleventh Amendment. In considering that motion, the district court recognized the ADA and Rehabilitation Act claims were not covered by Eleventh Amendment immunity and that it was required to address them. The district court did so and denied the Nursing Homes' motion on two separate grounds. First, the district court held that the Nursing Homes had no standing to raise claims under the ADA or the Rehabilitation Act on behalf of the Residents because the Nursing Homes were not the real party in interest and "[o]n this basis, [ ] dismissal [would] be warranted." J.A. 83 n.3. Next, the district court held that the Complaint did not "contain sufficient factual allegations to survive a motion to dismiss under Rule 12(b)(6) [of the Federal Rules of Civil Procedure]." J.A. 81. The court explained that the Nursing Homes did not allege sufficient facts to show the required elements of ADA or Rehabilitation Act claims that the Residents were disabled or were discriminated against because of their disabilities.
The Nursing Homes timely appealed the district court's order denying their Rule 59(e) motion, and the two appeals were consolidated. This Court has jurisdiction over the consolidated appeal under
II.
A.
The district court dismissed the Nursing Homes' Fourteenth Amendment and Medicaid Act claims for lack of subject matter jurisdiction under Rule 12(b)(1) of the Federal Rules of Civil Procedure because the relief the Nursing Homes sought was barred by the Eleventh Amendment, and the claims not barred by the Eleventh Amendment were moot. We review de novo a district court's application of the Eleventh Amendment and dismissal based on mootness.
See
Porter v. Clarke
,
B.
The Eleventh Amendment prohibits "any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State." U.S. Const. amend. XI. It "precludes citizens from bringing suits in federal court against their own states."
Litman v. George Mason Univ.
,
Notwithstanding this broad coverage, the Supreme Court carved out a limited exception to Eleventh Amendment immunity in
Ex Parte Young
,
By subjecting a state official to a legal action, the
Ex Parte Young
exception seeks to "conform [his] future conduct to the requirements of federal law, even though such an injunction may have an ancillary effect on the state treasury."
Quern v. Jordan
,
Here, the Nursing Homes' Complaint requests three kinds of relief: (1) compensatory damages, 3 (2) declaratory relief, and (3) injunctive relief, including the Secretaries' "automatic approval (and payment) of the [Residents'] Medicaid benefits retroactive to their initial dates of eligibility." J.A. 24 ¶ 73. The district court held that because the relief sought by the Nursing Homes "is not prospective in nature, they are unable to avail themselves of the [ Ex Parte ] Young exception, and the Secretar[ies] are entitled to state sovereign immunity under the Eleventh Amendment." J.A. 71-72. We agree with the district court that certain relief sought by the Nursing Homes is not prospective in nature and thus Eleventh Amendment immunity bars this claim.
Relief that is retrospective in nature, such as "the payment of ... money which that court held should have been paid, but was not," does not fall under the
Ex Parte Young
exception.
Edelman v. Jordan
,
Accordingly, when, in a previous case, Maryland reduced Medicaid recipients' benefits without the statutorily required notice, we held that the Eleventh Amendment prevented a Medicaid recipient from collecting reimbursement for services rendered after Maryland had improperly terminated his Medicaid benefits and before the district court held that the state's procedures violated the Medicaid Act.
Kimble v. Solomon,
Here, the Nursing Homes requested the same type of relief as did the plaintiffs in Kimble : an award of Medicaid benefits or payments for past medical services dating back to the Residents' dates of eligibility.
This relief is "designed to remedy [the Secretaries' alleged] past violations of federal law."
Idaho v. Coeur d'Alene Tribe of Idaho
,
The Nursing Homes fail to distinguish the relief sought in
Kimble
from the relief they seek here. They cite to an inapposite case,
Smith v. Miller
, in which the district court had ordered that all future Medicaid requests not timely processed, as required by Illinois law, would be deemed approved.
In short, the Eleventh Amendment bars the Nursing Homes' constitutional and Medicaid Act claims for damages or other relief based on past actions.
C.
Although the Nursing Homes' claims for retrospective relief fail, they contend their claims for injunctive and declaratory relief-declaring that the Secretaries' administration of the Medicaid program violates federal law, requiring them to approve the Residents' Medicaid applications based on their current status, and mandating the Secretaries to pay future Medicaid benefits-remain because the Nursing Homes request prospective relief. These claims could survive an Eleventh Amendment challenge and fall within the
Ex Parte Young
exception only if the relief sought is prospective in nature.
See
Allen
,
The Supreme Court has explained that injunctive relief requiring a state official "to conform his
future
conduct of that office to the requirement of the Fourteenth Amendment" is prospective in nature.
Edelman
,
We agree with the district court that the Nursing Homes' claims for
declaratory and injunctive relief are, "at best, moot" given the status of the Residents. J.A. 71. "The doctrine of mootness constitutes a part of the constitutional limits of federal court jurisdiction."
Brooks v. Vassar
,
Here, the Residents on whose behalf the Nursing Homes are suing the Secretaries "lack a legally cognizable interest in the outcome."
Powell
,
III.
A.
The district court dismissed the Nursing Homes' ADA and Rehabilitation Act claims when it denied their Rule 59 motion on two separate grounds. First, the district court concluded that the Nursing Homes lacked standing to bring either claim on behalf of the Residents because the Nursing Homes were not the real party in interest. Second, the court held that the Nursing Homes failed to state plausible ADA and Rehabilitation Act claims under Rule 12(b)(6). On appeal, the Nursing Homes do not challenge the district court's dismissal based on their lack of standing, thus waiving our review of the standing issue.
See
Tucker v. Waddell
,
B.
Nonetheless, even if we assume the Nursing Homes had standing, the district court correctly dismissed their ADA and Rehabilitation Act claims under
Rule 12(b)(6). As the issue was addressed by the district court under Rule 59(e), we review its determination for an abuse of discretion.
See
Robinson v. Wix Filtration Corp.
,
To survive a Rule 12(b)(6) motion, the complaint "must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face."
Ashcroft v. Iqbal
,
C.
Title II of the ADA and Section 504 of the Rehabilitation Act prohibit discrimination against an individual because of his or her disability.
"Claims under the ADA's Title II and the Rehabilitation Act can be combined for analytical purposes because the analysis is substantially the same."
Seremeth v. Bd. of Cty. Comm'rs Frederick Cty.
,
The ADA's Title II and the Rehabilitation Act "differ only with respect to the third element, causation."
Halpern v. Wake Forest Univ. Health Scis.
,
D.
We hold that the district court correctly dismissed the Nursing Homes'
ADA claim. Although plaintiffs need not prove their prima facie case at the pleading stage,
see
Iodice v. United States
,
The Nursing Homes failed to allege that the Residents are disabled within the meaning of the ADA, which defines disability as "a physical or mental impairment that substantially limits one or more major life activities," "a record of such an impairment," or "being regarded as having such an impairment."
The Complaint, however, pleads only the vague generality that the Residents are "qualified individuals with a disability." J.A. 15 ¶ 23. This conclusory phrase is the sum total of the Complaint's allegations addressing the elements of an ADA claim. The remainder of the Complaint fails to provide any additional allegations as to how or why the Residents are disabled or meet the statutory requirements for disability. For example, the Nursing Homes expressly disavow any argument that the Residents are disabled because they are in nursing facilities: "[We] are not arguing or suggesting that there is any presumption that individuals who receive long-term care nursing facility services are disabled under the definition of the ADA[.]" Opening Br. 22 (emphases added). The Complaint thus fails, on its face, to plead the necessary and basic elements of an ADA claim.
Further, the Nursing Homes also failed to plead that any Resident's alleged disability motivated the Secretaries to deny Medicaid benefits. In fact, the Living Residents are currently receiving Medicaid benefits. As to the Deceased Residents, the Complaint makes clear that they were denied Medicaid benefits not because of animus motivated by their alleged disability, but because of the Secretaries' alleged deficient administration.
Because the Nursing Homes failed to state a viable ADA claim, they failed to state a cognizable Rehabilitation Act claim.
See
Thomas
,
IV.
For the foregoing reasons, the district court's judgments dismissing the Nursing Homes' Complaint and denying the motion to alter or amend judgment are
AFFIRMED.
The eleven Residents represented by the Nursing Homes are Cheryl Hart, Margaret Smith, Peggy Outten, Ruby Bounds, Shirley Hackett, Carol Snyder, William Soil, Benjamin Winder, Frances Johnson, Eloise Roberson, and Mary Imhoff. The Complaint alleges that Hart, Outten, Hackett, Snyder, Soil, and Winder currently reside at one of the Nursing Homes (the "Living Residents"). It further claims that Smith, Bounds, Johnson, Roberson, and Imhoff, who are now deceased, were residents at one of the Nursing Homes before their death (the "Deceased Residents").
There are three exceptions to Eleventh Amendment immunity.
See
Lee-Thomas v. Prince George's Cty. Pub. Sch.
,
On appeal, the Nursing Homes do not challenge the district court's dismissal of their request for damages with respect to their Fourteenth Amendment claim and admit, "the proper remedy [was] for the District Court to grant a motion to dismiss [their] claim for compensatory damages with respect to their claims for due process violations." Opening Br. 33-34.
Accordingly, there is no need to address the district court's determination on the merits that the Nursing Homes did not state a plausible due process claim.
Reference
- Full Case Name
- WICOMICO NURSING HOME, as Assignee and/or Authorized Representative of Margaret Smith, Peggy Outten, Ruby Bounds, Shirley Hackett, Carol Synder, and William Soil; Oakview SNF, LLC, D/B/A Oakview Rehabilitation and Nursing Center, as Assignee and/or Authorized Representative of Cheryl Hart; Anchorage Nursing, LLC, D/B/A Anchorage Nursing and Rehabilitation Center, as Assignee and/or Authorized Representative of Benjamin Winder and Frances Johnson; Brooke Grove Foundation, Inc., as Assignee and/or Authorized Representative of Eloise Roberson and Mary Imhoff, Plaintiffs - Appellants, v. Lourdes R. PADILLA; Dennis R. Schrader, Defendants - Appellees. Wicomico Nursing Home, as Assignee and/or Authorized Representative of Margaret Smith, Peggy Outten, Ruby Bounds, Shirley Hackett, Carol Synder, and William Soil; Oakview SNF, LLC, D/B/A Oakview Rehabilitation and Nursing Center, as Assignee and/or Authorized Representative of Cheryl Hart; Anchorage Nursing, LLC, D/B/A Anchorage Nursing and Rehabilitation Center, as Assignee and/or Authorized Representative of Benjamin Winder and Frances Johnson; Brooke Grove Foundation, Inc., as Assignee and/or Authorized Representative of Eloise Roberson and Mary Imhoff, Plaintiffs - Appellants, v. Lourdes R. Padilla; Dennis R. Schrader, Defendants - Appellees.
- Cited By
- 88 cases
- Status
- Published