Chu Drua Cha v. Noot
Opinion of the Court
On March 12, 1982, the Secretary of Health and Human Services, one of the defendants in this case, published regulations, 47 Fed.Reg. 10841-50, reducing from 36 to 18 months the period during which the United States will reimburse states for cash and medical assistance to refugees under the Refugee Act of 1980, 8 U.S.C. §§ 1521-1525. The plaintiff Chu Drua Cha is a Laotian refugee living in Minnesota who had been receiving refugee cash assistance and had been eligible for refugee medical assistance. He had been in this country more than 18 but less than 36 months, so his refugee assistance was terminated by the new regulation. He brought this suit claiming that payments to him should be continued until the State determines, after a hearing, whether he is eligible for continued aid at the same level under the Aid to Families with Dependent Children (AFDC) Program, created by Title IV-A of the Social Security Act, 42 U.S.C. §§ 601 et seq. The plaintiff contends that continued payments are required by the Due Process Clause of the Fourteenth Amendment and by regulations of the Department of Health and Human Services applicable to various public-assistance programs, 45 C.F.R. Parts 205, 206 (1981).
On August 13, 1982, the District Court
For reasons shortly to be explained, we hold that plaintiffs present a substantial constitutional question under Goldberg v. Kelly, 397 U.S. 254, 90 S.Ct. 1011, 25 L.Ed.2d 287 (1970). The similarities and connections between the refugee cash assistance (RCA) program and AFDC are so close that a recipient of RCA might well have had a legitimate expectation that his RCA would not be terminated without prior notice and a hearing at which he would be given a chance to establish, if he could, that he was eligible for continued payments at the same level under AFDC or some other program of categorical assistance. The regulations should therefore be construed to avoid this constitutional question by affording to plaintiffs the pre-termination notice and hearing they seek. On the facts as they now appear, plaintiffs will prevail on the merits of their claim, and preliminary relief should be granted. The judgment of the District Court will be vacated, and the cause remanded with directions to grant a preliminary injunction reinstating benefits until the notice and hearing provisions of the regulations have been complied with. Unless the facts developed during the course of further proceedings on remand show that the required notice has in fact been given, or otherwise undermine the predicate on which our view of the law is based, the injunction should be made permanent after the case is tried.
I.
Chu Drua Cha is a 43-year-old Hmong refugee from Laos.
A word about the Refugee Act of 1980 is in order here to place in context what has been happening to Cha and other members of the class of refugees of whom he was typical before the State found that he was qualified for AFDC after all.
Implementing regulations were first adopted on September 9,1980. 45 Fed.Reg. 59318, 59323 (1980), codified as 45 C.F.R. Part 400. On December 11,1981, the Secretary of Health and Human Services, in order to save money, issued proposed new regulations to reduce the period of 100% reimbursement from 36 to 18 months. 46 Fed.Reg. 60629-32. Despite protests, including one from the State of Minnesota, the final version
The State of Minnesota began efforts to notify RCA recipients of the new policy as soon as it learned of the United States’ intention to put it into effect. Although plaintiff originally challenged the efficacy of the notice of the 36-to-18-month reduction itself, that challenge was rejected by the District Court and has not been renewed on appeal.
This suit as originally brought charged primarily that adequate notice of the termination of RCA was not given, and that the State failed to re-evaluate refugees properly for other forms of assistance. The District Court found that adequate notice had been given and that the State and Ramsey County made conscientious efforts to place refugees on other programs. Chu Drua Cha v. Noot, Civil No. 3-82-1017 (D.Minn., findings and conclusions filed August 13, 1982). These findings are not contested in this Court. Plaintiff does urge, however, that the group of former RCA recipients being treated as ineligible for anything more than GA are entitled to have their benefits reinstated at their former level until they are determined to be ineligible for AFDC
II.
We begin with the fact that this is an appeal from an order on a motion for pre
According to Dataphase Systems, Inc. v. C L Systems, Inc., 640 F.2d 109 (8th Cir. 1981) (en banc), four factors are relevant to the issue of preliminary relief: the likelihood of the moving party’s succeeding on the merits of the case; the threat of irreparable harm to the moving party if the preliminary injunction is denied; the state of the balance between that harm and the harm that a grant of the injunction would inflict on other parties; and the public interest. Id. at 113, 114. We have no doubt that irreparable harm is occurring to the plaintiff class as each month passes without the AFDC level of benefits. Everyone seems to agree that, because of the Eleventh Amendment, see Edelman v. Jordan, 415 U.S. 651, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974), we could not order a payment of retroactive benefits by the State to make up for past assistance unlawfully withheld. For some reason, the courts regard an order for the future payment of money, no matter what the amount, as somehow less destructive of state sovereign immunity than an order for the payment of sums past due. Even if retroactive payments could be made, however,
The only other factor that deserves extensive discussion in the present context — and the main question presented on this appeal — is whether the plaintiff class is likely to prevail on the merits. That factor turns on an issue of law
III.
The leading case on the constitutional protection afforded welfare recipients is Goldberg v. Kelly, supra. There, the Supreme Court held that “the Due Process Clause requires that the recipient be afforded an evidentiary hearing before the termination of benefits.” 397 U.S. at 260, 90 S.Ct. at 1016 (emphasis in original) (footnote omitted). Such benefits were not merely a “ ‘gratuity,’ ” id. at 262 n. 8, 90 S.Ct. at 1017 n. 8, that could be withdrawn at will by the giver, but were rather “a matter of statutory entitlement for persons qualified to receive them.” Id. at 262, 90 S.Ct. at 1017 (footnote omitted). If the government believes that benefits should be discontinued, it must give to the “recipient ... timely and adequate notice detailing the reasons for a proposed termination, and an effective opportunity to defend by confronting any adverse witnesses and by presenting his own arguments and evidence orally.” Id. at 267-68, 90 S.Ct. at 1020. Benefits must continue until they are shown at the hearing to be unjustified, and after the hearing “the decision maker should state the reasons for his determination and indicate the evidence he relied on,” id. at 271, 90 S.Ct. at 1022.
The regulations on which plaintiffs rely here were adopted in response to this decision of the Supreme Court, and they specifically say so. 45 C.F.R. § 205.10(a)(lXii). In order to receive federal money for certain specified programs, including AFDC, Medicaid, and SSI, a State must adopt a plan, to be approved by the Secretary of Health and Human Services, and the plan must provide for a system of hearings described in detail by the regulations. Minnesota has adopted such an approved plan. In cases of intended action to terminate or reduce assistance, “[t]he State or local agency shall give timely and adequate notice,” 45 C.F.R. § 205.10(a)(4). “Timely” and “adequate” are defined as follows:
(A) “Timely” means that the notice is mailed at least 10 days before the date of action, that is, the date upon which the action would become effective;
(B) “Adequate” means a written notice that includes a statement of what action the agency intends to take, the reasons for the intended agency action, the specific regulations supporting such action, explanation of the individual’s right to request an evidentiary hearing (if provided) and a State agency hearing, and the circumstances under which assistance is continued if a hearing is requested ....
(i) Assistance shall not be suspended, reduced, discontinued or terminated, (but is subject to recovery by the agency if its action is sustained), nor may the manner or form of payment be changed to a protective, vendor, or two-party payment under § 234.60, until a decision is rendered after a hearing ....
45 C.F.R. § 205.10(a)(6)(i).
Dilda v. Quern, 612 F.2d 1055 (7th Cir.) (per curiam), cert. denied, 447 U.S. 935, 100 S.Ct. 3039, 65 L.Ed.2d 1130 (1980), is a good example of how Goldberg and the implementing regulations have been applied in practice. There, a state was “rebudgeting” recipients’ income and reducing or cancel-ling their AFDC benefits accordingly. The notice stated simply that the state “has re-budgeted your income and the appropriate change has been made.” Id. at 1056. It was held insufficient under the Due Process Clause of the Fourteenth Amendment. The court held that recipients had to be given “a breakdown of income and' allowable deductions,” id. at 1057, as recomputed by the state, in order to have a fair chance to show that the state had made a mistake. Just so, in the case before us, if the regulations apply, the plaintiffs would need to know why they were considered ineligible for AFDC. Otherwise, they would have no way to rebut that conclusion. But most of the plaintiffs, at least in Ramsey County, seem never to have been told that their AFDC qualifications — as opposed to their RCA benefits as such, which depended merely on duration of residency in this country — were being reviewed, let alone given reasons why the result of the review was unfavorable.
In Goldberg and Dilda, of course, people already on AFDC were claiming a continued entitlement to precisely the same category of benefits. Here, people on RCA are not claiming that RCA as such should continue. A valid regulation has terminated their right to RCA because they have been in this country longer than 18 months. Plaintiffs here claim rather that they should continue receiving the same amount of money because they are qualified under the technically distinct AFDC program. Defendants counter that so far as AFDC is concerned plaintiffs are nothing more than new applicants, entitled perhaps to some kind of notice and hearing, but not to continued receipt of benefits pending the outcome of the administrative process. In order to prevail, plaintiffs must show that RCA and AFDC cannot be so neatly distinguished from each other, that they are, in the light of law and administrative practice, only two parts of a larger whole. If this is so, then it would be logical, especially as a constitutional question could be thus avoided, to interpret the regulations, in express terms applicable only to certain categorical programs under the Social Security Act, to apply as well to the present situation, where plaintiffs seek in effect a conversion of their eases from RCA to AFDC, rather than to be treated as strangers beginning the AFDC process from square one.
The only case cited by either side that is directly in point favors plaintiffs’ position. In Cha Vang Seng v. Gibbs, Civil Action No. C82-337C (W.D.Wash. June 29,1982), a preliminary injunction was granted in the same kind of situation that this case presents. The court held that “a sufficient nexus exists between the special refugee assistance and AFDC, SSI and Medicaid,” slip op. at 10, to require that RCA payments continue until the notice and hearing provided by the regulations had been afforded.
From a practical perspective, the line between the programs is fuzzy. The refugee, up until the reduction from 36 to 18 months, was unconcerned under which*602 program he was placed. The level of benefits were the same. From the State’s perspective, the programs were all federally financed to the same extent and all state-administered. Finally, from the Federal perspective, the Federal commitment under all the programs was for the full 36 months. Thus, it is not unusual that the refugee, State and Federal government would view the entire resources designed for and available to refugees as part of one large refugee assistance “package.” It was only after the reduction in one aspect of the assistance “package,” with the subsequent significant consequences depending upon where one was in the program, that the distinction was brought home.
Id. at 11.
Before examining further the validity of this holding, we note that other public-assistance programs, formally distinct to a greater or lesser extent, have on occasion been treated as interchangeable for purposes of the notice-and-hearing regulations. A leading example is our own decision in Johnson v. Mathews, 539 F.2d 1111 (8th Oir. 1976). The plaintiffs there had been receiving benefits from the State of Missouri under a federally aided program called Aid to the Permanently and Totally Disabled (PTD). Congress decided to stop funding this program and to create instead a federally administered and federally funded program under a new Title XVI of the Social Security Act. Social Security Amendments of 1972, Pub.L. No. 92-603, § 301, 86 Stat. 1465. Originally, Congress decided that anyone receiving PTD benefits m December 1973, the last month before the new program, to be known as SSI, came into existence, would automatically be considered disabled and eligible to receive the new SSI benefits. On December 31, 1973, however, Congress excluded from this automatic carryover anyone who had not received PTD benefits for at least one month prior to July 1973. Act of December 31, Í97S, Pub.L. No. 93 233, § 9, 87 Stat. 957; see 42 U.S.C. § 1382c(a)(3)(E). Johnson was a case brought on behalf of this excluded class: people who were on PTD as of December 31, 1973, but who had begun receiving PTD benefits after July 1, 1973. Their benefits were continued administratively for a brief period, but were then terminated after an initial determination of non-disability, a determination made after a paper review of their records and without prior notice or opportunity to be heard.
.The District Court issued a temporary restraining order directing that SSI payments to the plaintiff class be continued until they were given a pre-termination hearing. This order was later incorporated into a permanent injunction, and we affirmed. After analyzing the prior status of the piaintiff class as PTD beneficiaries, the policies and practices of the Secretary of Health, Education, and Welfare, and the applicable statutes, we held that the excluded class had a “legitimate claim of entitlement to, and thus a property interest in, the continued receipt of benefits,” 539 F.2d at 1119. notwithstanding Congress’s express enactment narrowing the group whose benefits would continue automatically. We noted, among other things, that “[t]he SSI program is basically a continuation and extension of the prior federal-state programs,” id. at 1118 (footnote omitted), and we specifically rejected the Secretary’s contention, similar to the argument advanced here, that “the cessation of payments to plaintiff was not a termination but rather was an initial determination of ineligibility under a new program.” id. at 1118-19 n. 8. “The intended beneficiaries are the same under both programs and the disability eligibility requirements are similar.” Id. at lii9. We went on to hold that due process required pre-termination notice and hearing, much as provided by the regulations adopted in response to Goidberg.
Stenson v. Blum, 476 F.Supp. 1331 (S.D. N Y. 1979), aff’d mem., 628 F.2d 1345 (2d Cir.), cert. denied, 449 U.S. 885, 101 S.Ct. 239, 66 L.Ed.2d 111 (1980), and Budnicki v. Beal, 450 F.Supp. 546 (E.D.Pa. 1978), are examples of the same kind of analysis. Stenson involved people who had been receiving SSI benefits and were therefore eligible for Medicaid as “categorically
The parties before us naturally differ as to the utility of these cases for present purposes. Defendants claim, for example, that the similarities and connections between PTD and SSI in Johnson ate greater than the similarities and connections between RCA and AFDC here. None of the cases (except Cha Vang Seng) is directly in point, and each of them presents some relevant differences cutting one way or the other. They do establish at least this much, however: there are some benefit programs so closely related in law and fact that one may not be taken off program A without first being given notice and a hearing with respect to one’s qualifications under program B. Our task is not so much to match the facts of this case with the facts of others, as to analyze closely the legal and administrative situation before us, in order to decide whether the relationship between RCA and AFDC is close enough to require that the notice-and-hearing regulations be applied. To that inquiry we now turn.
IV.
A.
We first analyze the law and regulations applicable to the two programs.
The Refugee Act of 1980 recognizes the relationship between the RAP and other forms of assistance in many ways. For one thing, under 8 U.S.C. § 1522(e)(4), a refugee who is eligible for aid in the form of AFDC may not be assisted with 100% RCA funds. Rather, funds authorized under the Refugee Act may be used only for the non-federal share of assistance to such persons. Thus, the very statutory definition of the RCA program requires an answer to the question whether the persons aided are also eligible under AFDC, The two kinds of payments are, so to speak, the reciprocal of each other. Congress also directed the Secretary, no later than March 17, 1981, to analyze “the desirability of using a system other than the current welfare system for the provision of cash assistance ... to refugees ....” 8 U.S.C. § 1523(b)(2). It was clear, therefore, that Congress contemplated that the current welfare system would be, at least initially, the vehicle for delivery of RCA payments, thus making connections in practice among the various kinds of welfare payments inevitable.
The rule that precipitated this litigation continues to recognize the connections among the various kinds of payments. “This interim final regulation ... establishes new policies on cash and medical assistance available to refugees ... who are ineligible for Aid to Families with Dependent Children (AFDC) ... . ” 47 Fed.Reg. 10841 (1982). Thus, under the new policy, the reduction in the duration of payments from 36 to 18 months, so far as 100% federal reimbursement is concerned, requires, as a logical condition precedent, that a determination first have been made that the recipients whose benefits are being reduced are not eligible for AFDC. This, of course, is a continuation of current practice. “Under current RRP [refugee resettlement program] policy, when a refugee applies for cash and/or medical assistance, a State must first determine eligibility under the AFDC, SSI or adult assistance programs and/or Medicaid. States must comply with all regulations operative in the State regarding applications, determinations of eligibility, and furnishing of assistance under these federally aided programs.” 47 Fed. Reg. 10842 (emphasis supplied). The underscored sentence must mean, at the very least, that initial applicants for RCA, if the state believed them to be ineligible for
In addition, so far as payment levels and need standards are concerned, the regulations make RCA and AFDC almost indistinguishable. “In determining need for refugee cash assistance, a State must use the State’s AFDC need standards ....” 47 Fed.Reg. 10849 (1982) (to be codified at 45 C.F.R. § 400.62(b)) (emphasis supplied). Payment levels, also, must be “100% of the payment level which would be appropriate for an eligible filing unit of the same size under the AFDC program.” Ibid, (to be codified at 45 C.F.R. § 400.62(d)). And in determining income and resources of applicants for and recipients of RCA, “the State agency must apply standards and criteria identical to those provided for ... AFDC applicants and recipients,” with one insignificant exception. Ibid, (to be codified at 45 C.F.R. § 400.62(c)). The only major difference between AFDC and RCA, therefore, is that some kind of work experience is needed for AFDC, or at least for AFDC as an unemployed parent (AFDC-UP), which seems to be the principal form of AFDC at issue in this case. Otherwise, eligibility standards and payment levels in the two programs are virtually identical, not because Congress made them so in the statute, but because the Secretary made them so in his regulations.
In these circumstances, it does not seem ■at all unreasonable to interpret the AFDC regulations as applying also to RCA. The differences between the two programs, although they are real and can be precisely described by those who have had an ample opportunity to study the details of the statutes and regulations, are simply not material enough as a practical matter to destroy an RCA recipient’s legitimate expectation that benefits would be continued so long as his AFDC eligibility had not been rejected after a process that includes a fair opportunity for a hearing. This conclusion is forti- - fied, we think, by an examination of how the programs operated in practice in Minnesota, for this practical conduct is itself an administrative construction of the regulations that carries great weight. When the law, the regulations, and actual practice are thus taken together, we think they show that the RCA program, although authorized by a separate statute and technically distinct in some respects, was merely a special overlay intended to operate as part of the existing categorical-program framework. A remark made by the Secretary in explaining the choice to adopt the AFDC payment levels for RCA purposes is instructive at this point. “In addition, the use of AFDC payment levels is advantageous from an administrative standpoint, since eligibility determination procedures and payment structures already in place in the AFDC program can be utilized in the Refugee Program.” 47 Fed.Reg. 10845 (1982). One such “eligibility determination procedure” is the very regulation for which plaintiffs contend here, requiring that payments be continued to existing recipients until a determination of ineligibility can be tested by notice and hearing.
B.
The AFDC and RAP programs were administered in a closely connected fashion in actual practice. An “Instruction” issued by the Department of Health, Education, and Welfare, as it then was, in 1977
When the time came for the state, by reason of the change in federal regulations, to let recipients know that their RCA benefits were being terminated, the same intimate relationship between the two formally distinct payment programs persisted. On December 7, 1981, by Instructional Bulletin No. 81-86, issued by the State Department of Public Welfare to County Human Services Boards, local authorities were directed to review each RCA file for AFDC eligibility. They were told, in addition, that “the agency may base its actions on an existing application taken at the time that the family applied for RAP benefits.” Designated Record (D.R.) 52. The agency, in other words, was told to treat each RCA recipient as having also applied for AFDC. If a recipient was found ineligible for AFDC, but eligible for GA, the state instructed that a ten-day notice be sent, informing recipients of their right to appeal. This reference to a ten-day notice appears to be an acknowledgement by the state that the regulations quoted above do govern the RAP program, though the December Instructional Bulletin did go on to say, without citing any authority, that grant payments should not be continued, even if a timely appeal were filed.
Thereafter, the immediate threat of reduction or termination of federal funding abated, but after the March 12, 1982, regulations were issued, the state issued a new Instructional Bulletin, No. 82-30, dated March 31, 1982. This Bulletin again in
We cannot be sure on this record of the extent to which this Instruction was obeyed by the various county boards. The record before us seems to be limited to Ramsey County,
A sampling of other files that were before the District Court bears out these impressions. Files were reviewed in good faith to determine AFDC eligibility, and only those recipients found ineligible for AFDC were sent notices that their RCA was being terminated together with application packets to enable them to try to get GA benefits. But typically the notices failed to state that the recipients had already been evaluated and found ineligible for AFDC. In addition, in those cases where an effort was made to determine AFDC eligibility on the basis of something other than information already in the files, inquiries made of the recipients concerned only work that they might have done in the United States. Work done in refugee camps in Thailand or elsewhere was not asked about, though it is undisputed that work performed in Thailand is every bit as good for purposes of AFDC qualification as work performed in this country. In addition, some of the notices of termination must have been incomprehensible to the recipients, since they are virtually so to us. One notice, for example, stated that an “AFDC-IRAP grant” had been terminated. D.R. 133. We are not sure what “IRAP” means, unless it is Indochinese Refugee Assistance Program. Another notice in
C.
We conclude that there is a substantial probability, because of the legal interconnections between the two programs and because of their joint administration as a practical matter, that recipients could reasonably have had a legitimate expectation that their RCA benefits would not be terminated without their being given an opportunity to show that the same payment level should be continued under the AFDC rubric. In other words, the interest of RCA recipients in continued receipt of benefits at the AFDC level was probably substantial enough to be considered “property” under the Due Process Clause of the Fourteenth Amendment, as interpreted in Goldberg v. Kelly, supra. We deem it unnecessary to hold directly that the state’s failure to give the kind of notice plaintiffs argue for was unconstitutional. Instead, we simply interpret the regulations to require that such notice be given, thus avoiding the constitutional question. This interpretation certainly accords with the spirit of the regulations, and indeed seems actually to have been expected by the state at one point during the changeover from RCA to other forms of assistance. We hold, therefore, that RCA recipients in this country more than 18 but less than 36 months were entitled, before their benefits were terminated or reduced, to a notice stating the intended termination or reduction, and informing them of their right to appeal and that benefits would be continued until they were determined ineligible to receive the same level of assistance under one of the categorical programs.
V.
The judgment of the District Court will be vacated, and the cause remanded for entry of a preliminary injunction in accordance with this opinion. We use the term “vacated” rather than “reversed” advisedly. If we were deciding this case on the basis of the situation as it existed at the time of the oral argument, we might well be affirming the order of the District Court. Developments since the oral argument have changed the situation. Foremost among these developments is the District Court’s certification of a class, to which we have already referred. This action not only prevented the case from becoming moot; it made unimportant the fact that Cha, or any other individual member of the class, might already have been determined ineligible for continued benefits after a hearing.
For reasons we have already given, we think the class is entitled to the relief set forth above. We reiterate that this holding is provisional, in the sense that the District Court may later decide to modify the class, or may find that the facts recited in this opinion as to the kind of notice given are not supported by the evidence as later de
Vacated and remanded with instructions.
It is so ordered.
. The Hon. Edward J. Devitt, Senior United States District Judge for the District of Minnesota.
. The District Court’s order granting class certification expresses the view that the case would not be moot even if class certification were denied, because of an agreement among the parties that the State would apply to all similarly situated refugees whatever rules of law were declared in Cha’s case. We were not aware of this agreement until November 12, 1982, when the District Court’s order of October 26 was filed with us. Since class certification clearly suffices to prevent mootness, it is unnecessary for us to discuss the legal effect of the agreement.
. We state the facts of Cha’s case because in many respects they seem to be typical of the class.
. The State seems to have decided in September 1982, after believing otherwise continuously since January 1981, that Cha in fact had worked long enough while in a refugee camp in Thailand to make him eligible for AFDC as an
. Actually the Secretary refers to his regulation as an “[i]nterim final rule,” 47 C.F.R. 10841. Comments, it was said, would still be considered if received by June 10, 1982. Perhaps there will someday be a “final final rule.” In any case, the rule issued on March 12, 1982, is still in effect as we write, so we treat it as final for present purposes,
. The Secretary announced an effective date of April 1, 1982, 47 Fea.Reg. 10841 but m Minnesota the Department oi Public Welfare delayed implementation until May 1 1982 The State took this initiative to give itself anu the refugees more time to adjust to the change. Cf. Chhleat Ngou v. Schweiker, Civil Action No. 82-0865 (D.D.c , order tiled March 31, 1982) (effectiveness of new rule in the State oí Washington stayed until May l) The question whether Minnesota should be reimbursed by the United States for extra payments in April 1982 is not before us
. Nor is any question raised about the Secretary’s power to issue the new regulation. It has been held valid by every court that has so far addressed the issue. E.g., Chhleat Ngou v. Schweiker, Civil Action No. 82-0865 (D.D.C. April 30, 1982).
. We refer to AFDC eligibility most often in this opinion because that is the form of relief claimed by Cha. We express no view on whether SSI and Medicaid eligibility are analytically the equivalent of AFDC eligibility for purposes of our discussion.
. The District Court’s more recent order of October 26, however, seems to foreshadow the result we now reach. “The issue of the adequacy of notice to refugees who were denied alternate AFDC benefits ... is, in reality, the real issue in this case. It is clear that due process requires a notice to those whose claims have been rejected so that if so advised, they may appeal through administrative channels.” Slip op. at 2.
. Under 45 C.F.R. § 205.10(a)(18), if a state agency after a hearing decides that benefits were wrongly denied to an initial applicant, “the agency shall promptly make corrective payments retroactively to the date the incorrect action was taken.” A state which receives federal funds for an AFDC program must adopt a plan that includes this provision. Consent to such a plan may be a waiver of Eleventh Amendment immunity. This question has not been briefed on this appeal, and we intimate no view on it. It is also possible that retroactive benefits may be available administratively, whether or not the Eleventh Amendment is a bar to judicial relief. Counsel for plaintiffs stated at the oral argument their intention to seek retroactive payments administratively, and our opinion today is not intended to express any view with respect to this effort.
. We assume for present purposes that the facts stated in this opinion will still be the facts found after the trial on the merits. If the facts turn out to be different, the predicate for the legal conclusions to which we have come may be significantly changed. If, for example, the State turns out in fact to have given the kind of notice that we hold the regulations require, obviously no injunctive relief will be in order. We have no intention of preempting the right and duty of the District Court to find the facts after plenary trial, or to entertain a motion by the defendants to set aside the preliminary relief we are directing if they think they can show that the facts justify such action.
. There are some exceptions to the requirement of timely notice. See 45 C.F.R. § 205.-10(a)(4)(ii). One of them applies when “[a] special allowance granted for a specific period is terminated and the recipient has been informed in writing at the time of initiation that the allowance shall automatically terminate at the end of the specified period ... . ” 45 C.F.R. § 205.10(a)(4)(ii)(I). Defendants have not suggested that this exception applies here.
. The Instruction was issued under a predecessor statute, apparently the Indochina Migration and Refugee Assistance Act of 1975, Pub.L. No. 94-23, 89 Stat. 87. For a good general discussion of the evolution of refugee aid statutes, see Martin, The Refugee Act of 1980: Its Past and Future, in Transnational Legal Problems of Refugees, 1982 Michigan
. The District Court’s order of October 26, 1982, has certified a class containing “[a]ll persons in Minnesota whose refugee assistance benefits have been reduced or terminated because they have been in the United States more than 18 months.” The Court went on to observe “that a more appropriate class probably should cover refugees only in Ramsey County rather than in the whole state. It may also turn out that the class should be further limited to only those refugees who have not been notified of their ineligibility for other forms of categorical assistance.” These observations seem to have merit, and it will be for the District Court after remand, in its discretion, to decide whether the class previously certified should be modified in these or other respects.
. After the oral argument Xiong moved for leave to intervene as a party in this Court, but the motion was later withdrawn without a statement of reasons.
. On December 20, 1982, a second appeal from the District Court’s order was docketed in this Court. Vang Nou Xiong v. Arthur Noot, No. 82-2519. This appeal was brought by a new plaintiff-intervenor, after the District Court granted a timely motion for extension of time within which to file a notice of appeal. Our opinion today also disposes of No. 82-2519, and that cause is also remanded to the District Court.
Reference
- Full Case Name
- CHU DRUA CHA, on his own behalf and on behalf of all others similarly situated v. Arthur E. NOOT, Commissioner of the Minnesota Department of Public Welfare, the Ramsey County Human Services Board, and Richard S. Schweiker, Secretary of Health and Human Services
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- 23 cases
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