ASW v. OregonASW v. Oregon
- Reporters:
- , ,
- Before:
- Clifton, Hug, Tashima
Hardy Myers, Attorney General, Mary H. Williams, Solicitor General and David E. Leith, Assistаnt Attorney General (argued), State of Oregon, Salem, OR, for the defendants-appellees.
Appeal from the United States District Court for the District of Oregon; Ann L. Aiken, District Judge, Presiding. D.C. No. CV-03-06038-ALA.
Before HUG, TASHIMA, and CLIFTON, Circuit Judges.
Plaintiffs are parents of adopted children with special needs1 who receive adoption assistance payments from the State of Oregon. They appeal the district court‘s dismissal of their class action lawsuit under
I. BACKGROUND
The Adoption Assistance and Child Welfare Act of 1980 established а program of federal payments to participating states to provide funds for financial assistance to aid families adopting special needs children out of foster care.
The State sent a form letter in December 2002 to all families in Oregon receiving adoption assistance payments to inform them that because of budgetary shortfalls their payments would be reduced 7.5%. The form letter asked the families to agree to the reduction or risk having their adoption assistance payments terminated. The families were also informed that they would not be entitled to individual hearings to challenge the reductions. Although the families did not agree to the reductions, their adoption assistance payments were not terminated. The payments were, however, uniformly reduced by 7.5% beginning in February 2003. The State selected 7.5% as the amount of the reduction to coincide with its decision to reduce foster care maintenance payments by that same amount, also effective February 2003.
Plaintiffs brought a
II. MOOTNESS
Oregon argues that Plaintiffs’ claims are moot because a state administrative rule,
“A case loses its quality as a `present, live controversy’ and becomes moot when there can be no effective relief.” San Lazaro Ass‘n v. Connell, 286 F.3d 1088, 1095 (9th Cir.2002). Because Plaintiffs brought suit under Ex parte Young, 209 U.S. 123 (1908), they cannot seek monetary redrеss for a past harm and thus their case is moot unless they are in a position to benefit from prospective relief. See Verizon Md., Inc. v. Pub. Serv. Comm‘n, 535 U.S. 635, 645 (2002); Taylor v. Westly, 402 F.3d 924, 929-930 (9th Cir.2005) (explaining that the Eleventh Amendment generally “shields state governments from money judgments in federal courts, and from declaratory judgments against the state governments that would have the practical effect of requiring the state treasury to pay money to claimants“).4 The State argues that because there is no ongoing violation of federal law, there is no valid form оf relief Plaintiffs can be awarded. The cases Oregon relies on, however, are inapposite. See, e.g., Green v. Mansour, 474 U.S. 64, 73 (1985) (holding that plaintiff‘s claim was moot where Congress amended the relevant statute clarifying, and thereby resolving, the controversy that had arisen due to ambiguities in the original statute); In re Investigation Pursuant to the Comprehensive Envtl. Response, 820 F.2d 308, 311-12 (9th Cir.1987) (dismissing the case because Congress enacted substantial amendments to the relevant statutory provisions while the case was on appeal, the court reasoned that “[w]here new legislation represents a complete substitution for the law as it existed . . . arguments based upon the superseded part are moot“). By contrast,
Moreover, we are “particularly cautious when a case has become moot because the defendant has voluntarily ceased to pursue the challenged course of action.” Smith v. Univ. of Wash. Law Sch., 233 F.3d 1188, 1194 (9th Cir.2000). Here, not only was the increase in benefits voluntary, Oregon explicitly left the mechanism in place whereby it can uniformly reduce adoption assistance payments at any time in the future. The posture of this case therefore contrasts sharply with Native Village of Noatak v. Blatchford, 38 F.3d 1505, 1510 (9th Cir.1994), where the relevant statute had been repealed and the plaintiffs simply feared the possibility that the state would continue to discriminate under the new statute. It is not a mere “theoretical possibility” that Oregon could adopt an administrative rule providing for uniform reductions in adoption payments. Oregon already has such a rule, which it purposely chose not to repeal. Indeed, based on its arguments before this Court, it is probable that when faced with a similar budgetary crisis, Oregon would again consider uniformly and unilaterally reducing adoption assistance payments. In light of that very real possibility, Oregon has not met its “heavy burden of persuading” the court that “subsequent events make it absolutely clear that the allegedly wrongful behavior could not reasonably be expected to recur.” Friends of the Earth, Inc. v. Laidlaw Envtl. Servs. (TOC), Inc., 528 U.S. 167, 189-90 (2000).
Because Plaintiffs’ challenge to
III. MERITS
We review de novo the district court‘s decision to grant the State‘s motion to dismiss pursuant to
Plaintiffs correctly point out that legislation enacted pursuant to Congress‘s spending power can give rise tо enforceable rights under
The Supreme Court has identified three factors, which if present, establish a rebuttable presumption of an enforceable federal right.6 Blessing v. Freestone, 520 U.S. 329, 341 (1997). A federal statutory provision creates an individual right if (1) Congress intended the provision in question to benefit the plaintiff;7 (2) the plaintiff demonstrates that the right assertedly protected by statute is not so “vague and amorphous” that its enforcement would strain judicial competence; and (3) the statute unаmbiguously imposes a binding obligation on the state. Id.
A. Statutory Right to Individualized Payment Determinations
Our initial inquiry is whether the text and structure of the Act contains the requisite “rights-creating” language that evinces a congressional intent to confer an entitlement to individualized payment determinations. Price, 390 F.3d at 1110. We conclude that it does.
Section 671 requires Oregon to have a plan that mandates that adoption assistance will be provided in accordance with
The second and third prongs of the Blessing test are also satisfied. The right to individualized payment determinations that reflect the unique circumstances of the parents and the special needs of their adopted child is a concrete and objective right, the enforcement of which does not “strain judicial competence.” Blessing, 520 U.S. at 340-41. Furthermore, there is no ambiguity as to what Oregon was required to do under
We are not persuaded by the fact that in 31 Foster Children v. Bush, 329 F.3d 1255 (11th Cir.2003), the Eleventh Circuit reviewed a different provision of Title IV-E,
Because Plaintiffs have asserted a federal right presumptively enforceable under
We begin our analysis by recognizing that we do “not lightly conclude that Congress intended to preclude reliance on § 1983 as a remedy for the deprivation of a federally secured right.” Price, 390 F.3d at 1114 (quoting Wilder, 496 U.S. at 520). The Act provides that disputes over adoption assistance benefits may be heard before the State agency, but does not mention nor preclude federal review.
Oregon cites a recent decision of the Supreme Court, City of Rancho Palos Verdes v. Abrams, 125 S.Ct. 1453 (2005), in which the Court held that the alternative judicial remedy Congress provided in the Telecommunications Act of 1996 (“TCA“) precluded thе petitioner from sustaining a
By contrast, the Act does not include a comprehensive enforcement mechanism incompatible with a
We conclude therefore that Plaintiffs may proceed with an action under
B. Statutory Right to an Administrative Hearing
Plaintiffs also contend that they have a federal right under
Oregon counters that
Oregon also argues that although Plaintiffs were denied an opportunity for a contested case hearing, they could have challenged the rule implementing the reduction through a rule hearing under
We conclude that the right to a hearing under
IV. CONCLUSION
Because it is possible that Plaintiffs could prove a set of facts in support of their claims that would entitle them to relief, we hold the district court erred in dismissing Plaintiffs’ action for failure to state a claim under
REVERSED and REMANDED.