ORDER DENYING DEFENDANTS’ MOTION FOR PARTIAL SUMMARY JUDGMENT ON THE AVAILABILITY OF PUNITIVE DAMAGES IN ACTIONS BROUGHT UNDER THE AMERICANS WITH DISABILITIES ACT AND THE REHABILITATION ACT § 504
BACKGROUND
On April 12, 1996, the Court granted in part Plaintiffs’ motion for partial summary judgment.
See Bums-Vidlak v. Chandler,
On May 14, 1996, subsequent to the Court’s order, Plaintiffs were granted leave to amend their complaint to add a claim for punitive damages and a jury demand. The amended complaint, which also adds the State of Hawai'i as a defendant, and the jury demand, were filed on May 15,1996.
On March 14, 1997, Susan Chandler and the State of Hawai'i (hereinafter “Defendants”) filed a motion for partial summary judgment on the “narrow legal question” of whether punitive damages can be recovered under § 504 and Title II of the American with Disabilities Act (“ADA”). 1 On May 23, 1997, the Plaintiffs filed their opposition. On May 31, 1997, Defendants filed their reply. On June 10, 1997, the Court held a hearing on the matter.
*1146 STANDARD OF REVIEW
Although Defendants label their motion as one for summary judgment, they are asking the Court to decide that as a matter of law punitive damages are not allowed under § 504. For that reason, Defendants’ motion is more akin to a motion to dismiss that tests the legal sufficiency of a claim than one for summary judgment involving the particular facts of a case. Accordingly, the motion to dismiss standard governs this claim.
Under Fed.R.Civ.P. 12(b)(6), in determining whether a motion to dismiss for failure to state a claim upon which relief can be granted, this Court must accept as true the plaintiffs allegations contained in the complaint and view them in a light most favorable to the plaintiff.
Scheuer v. Rhodes,
In essence, as the Ninth Circuit has stated, “[t]he issue is not whether a plaintiffs success on the merits is likely but rather whether the claimant is entitled to proceed beyond the threshold in attempting to establish his claims.”
De La Cruz v. Tormey,
DISCUSSION
Through this motion, the Count undertakes the unenviable task of determining whether punitive damages are allowed by the Rehabilitation Act § 504, a statute whose provision on remedies depends on Title VI, an implied cause of action. With an implied cause of action as its foundation, this Court’s task in determining the remedies available resembles the plight of a prodigal son without a home.
I. Overview of the Rehabilitation Act and its remedies
In 1973, Congress passed the Rehabilitation Act § 504 in an effort to protect “handicapped” citizens
from
discrimination.
See
29 U.S.C. § 794. Section 504 did not set forth a private cause of action and thus did not define the remedies available in such a suit. Nevertheless, in 1977, the Seventh Circuit found that § 504 created an implied cause of action.
See e.g. Lloyd v. Regional Transportation Authority,
In 1978, Congress did address the question of remedies by passing Section 505 which states that “the remedies, procedures, and rights set forth in Title VI of the Civil Rights Act of 1964 [42 U.S.C. § 2000d et seq.] shall be available to any person aggrieved ... under section 794 of this title.”
See
29 U.S.C. § 794a(a)(2). After this amendment, every Circuit that confronted the issue found an implied cause of action under § 504.
See e.g. Kling v. County of Los Angeles,
Some of these eases, most notably the Ninth Circuit’s decision in
Kling,
held that compensatory damages were also allowed under § 504. See
Kling v. County of Los Angeles,
The genesis of this change was the Supreme Court’s decision in
Franklin v. Gwinnett County Public Schools,
the general rule, therefore, is that absent clear direction to the contrary by Congress, the federal courts have the power to award any appropriate relief in a cognizable cause of action brought pursuant to a federal statute.
Id.
at 70-71,
II. The Court reads the Supreme Court’s language in Franklin, a Title IX case, as well dicta in the Ninth, Eighth, Eleventh, Fourth and Third Circuits, all § 50f actions, as allowing an award of punitive damages
Before surveying the case law, it is important to interpret the lexicon. In
Franklin,
the Supreme Court held that “monetary damages” were available under Title IX and that absent direction by Congress, courts have the power to award “appropriate relief’ in other federal statutory cases. The Ninth Circuit has held that the “full panoply” of damages are available under § 504.
See e.g. Kling v. Los Angeles,
Defendants do not really address any of these cases other than the Ninth Circuit’s decision in
Greater Los Angeles,
However, the question remains whether “appropriate relief’ and “monetary damages” as stated in
Franklin
encompass punitive damages. The Court finds that “appropriate relief’ by its very terms cannot be subject to blanket rules such as no punitive damages because what is appropriate very much depends on the facts of the case. Moreover, the Seventh and First Circuits have read “appropriate relief’ to include punitive damages.
See Reich v. Cambridgeport Air Systems, Inc.,
Although Franklin did not address specifically the availability of punitive damages under Title IX, there is no adequate basis, in the Franklin opinion or elsewhere, for exempting punitive damages from the full spectrum of remedies generally available for violation of a federal statute such as Title IX or the Rehabilitation Act. First, punitive damages doctrine has been accepted as ‘settled law by nearly all state and federal courts, including [the Supreme Court] for more than a century.’
DeLeo v. Stamford,
III. Does Franklin apply to this case
The Defendants argue that
Franklin
does not apply because of the Supreme Court’s recent decision in
Lane v. Pena,
In arguing that Congress had waived its sovereign immunity, the Plaintiff in
Lane
relied on the “general rule” in
Franklin.
The Court rejected the argument. First, the Court reasoned that sovereign immunity places the Federal Government on an entirely different footing than private parties and thus the rule espoused in
Franklin
only applies to non-federal defendants.
Id.
at-,
brings this case outside the ‘general rule’ we discussed in Franklin: This is not a case in which ‘a right of action exists to enforce a federal right and Congress is silent on the remedies’. Title IX, the statute at issue in Franklin, made no mention of available remedies. The Rehabilitation Act, by sharp contrast, contains a provision *1149 labeled “Remedies and attorney fees,” § 505.
Id.
at-,
The Court has grave doubts that the Supreme Court intended the language to mean what Defendants assert. First, no court has previously read
Lane
as the Defendants ask the Court to do. For example, the case Defendants rely heavily upon,
Moreno v. Consolidated Rail Corporation,
Second, while the quotation above is troubling, it should not be isolated from its context. The Supreme Court in
Lane
distinguished
Franklin
because it did not concern federal defendants and sovereign immunity.
See Lane,
518 U.S. at-,
Lane’s ‘equal treatment’ argument falters as well on a point previously discussed: Section 505(a)(2) itself indicates congressional intent to treat federal executive agencies differently from other § 504(a) defendants for purposes of remedies.
Lane,
518 U.S. at-,
Moreover, in the sentence following the passage relied upon by the Defendants, the Court concluded that:
Congress has thus spoken to the question of remedies in § 505(a)(2), the only remedies provision directly addressed to § 504 violations, and has done so in a way that suggests that it did not in fact intend to waive the Federal Government’s sovereign immunity against monetary damages awards for executive agencies’ violations of § 504(a).
Id. As evident from this quotation, the only relevance of § 505(a)(2) to the Court in Lane was whether it contained a waiver of sovereign immunity. Accordingly, it is not relevant to the issue of availability of punitive damages under § 504.
Third, § 504’s remedy provision does not substantively address the remedies available so as to take it out of Franklin. Rather, § 505 merely states that the remedies available shall be those found in Title VI, an implied cause of action. Such lack of guidance is tantamount to Congressional “silen[ce] on the question of remedies.”
A. If Franklin does apply, Section 505 gives courts the power to award punitive damages
If the general rule in
Franklin
applies, punitive damages may be awarded if: (1) there is no clear direction to the contrary by Congress; and (2) such relief would be appropriate.
Franklin,
1. Clear direction
Here, Congress has not sent a clear direction that it does not want courts to award punitive damages to litigants in § 504 cases. To the contrary, the Congress has confirmed the importance of awarding damages against
*1150
states when they violate § 504. The fount of this message came in 1985 when the Supreme Court decided that money damages for a § 504 violation could not be collected against a State because of the Eleventh Amendment.
Atascadero State Hospital v. Scanlon,
Relying on the Sixth Circuit’s en banc decision in
Moreno,
however, the Defendants argue that Congress has provided “clear direction” that punitive damages should not be awarded under § 504.
See Moreno v. Consolidated Rail Corporation,
2. Are punitive damages an appropriate remedy under § 50k
The second query in Franklin is whether punitive damages under § 504 would be appropriate. Defendants again rely on Moreno to argue that punitive damages would not be appropriate.
In Moreno, the Sixth Circuit found that punitive damages would not be appropriate under § 504 because: (1) “it would be highly anomalous to let a plaintiff asserting an implied right of action under § 504 recover more in punitive damages than could be recovered by a plaintiff asserting the statutory remedy created for § 501”; (2) other ways exist to punish those who violate § 504; and (3) adding punitive damages “would expand § 504 beyond all manageable bounds.” Id. at 791-92.
The first rationale does not apply here because the cap on punitive damages in § 501 referred to in Moreno does not apply to actions brought against the state. See 42 U.S.C. § 1981a(b)(l) (“A complaining party may recover punitive damages under this section against a respondent (other than a government, government agency, or political subdivision)”). Moreover, even if it did ap *1151 ply, any inconsistency between Section 501 and Section 504 is more akin to the norm, than to the anomalous. For instance, under the Civil Rights Remedies Equalization Act, Congress explicitly abrogated a State’s Eleventh Amendment Immunity in § 504 eases, but did not explicitly abrogate a State’s immunity under § 501. As evident, Congress has intended to treat these two provisions differently, thus it is not anomalous that one section could potentially provide greater punitive damages than the other. After all, if Moreno is followed, the two sections would also have different remedies. Accordingly, the Court rejects the first factor relied on by Moreno in finding that punitive damages would not be appropriate. 6
The second argument also lacks merit. Certainly, other ways exist to punish all violators of the civil rights laws such as injunctions, consent decrees, EEOC suits; yet the Supreme Court has found the implied remedy of punitive damages appropriate in other areas of civil rights law, like § 1983 actions.
See Smith v. Wade,
For this reason and more, the Sixth Circuit’s rationale that punitive damages would make § 504 unmanageable should also be rejected.
See
Not finding any of the rationales proffered in
Moreno
convincing, this Court finds that punitive damages may be appropriate in certain § 504 suits. For example, in a scenario where a city did not allow handicapped people to run for public office, punitive damages may be appropriate because such discrimination cannot be tolerated and because many handicapped people would suffer no compensatory damages. Instead of creating a blanket rule, therefore, this Court holds that the propriety of punitive damages in § 504 suits should be decided on a case-by-case basis, as they are in tort suits.
See
*1152
Kedra v. Nazareth Hospital,
B. The relationship between Title IX and the Rehabilitation Act also supports a finding of punitive damages
The holding in Franklin that monetary damages are recoverable under Title IX directly relates to the remedies allowed under § 504 because both Title IX and § 504 are based on Title VI. In discussing Title IX, the Supreme Court has stated that:
Title IX was patterned after Title VI of the Civil Rights Act of 1964.... Neither statute expressly mentions a private remedy for the person excluded from participation in a federally funded program. The drafters of Title IX explicitly assumed that it would be interpreted and applied as Title VI had been during the preceding eight years.
Cannon v. University of Chicago,
The Third, Eighth, and the Eleventh Circuits have followed similar reasoning in finding that the “full spectrum” of remedies are allowed under § 504.
See Rodgers v. Magnet Cove Public Schools,
Therefore, consistent with: (1) the Ninth Circuit’s holding that a “full panoply of remedies” are available under § 504, (2) the general rule in Franklin that courts have the power to award all “appropriate relief in a cognizable cause of action brought pursuant to a federal statute”, (3) the majority of eases since Franklin that have held that punitive damages are available, and (4) Congress’ intent embodied in the Civil Rights Remedies Equalization law that money damages be available for § 504; the Court DENIES Defendant’s motion for partial summary judgment finding that punitive damages are available under § 504.
Now that the Court has ruled on the narrow legal question of whether punitive damages can be recovered under § 504, it would be appropriate for the parties to address the broader punitive damages issue by way of summary judgment motion.
CONCLUSION
For the foregoing reasons, the Court DENIES Defendants’ Motion for partial summary judgment.
IT IS SO ORDERED.
Notes
. In this order, however, the Court will focus solely on the Rehabilitation Act because it provides the basis for the remedies under the ADA:
The remedies, procedures, and rights set forth in section 794a of Tide 29 [§ 505 of the Rehabilitation Act] shall be the remedies, procedures, and rights this subchapter provides to any person alleging discrimination on the basis of liability in-violation of section 12132 of this title.
See 42 U.S.C. § 12133.
.
The Eighth and Second Circuits soon followed the reasoning in
Lloyd. See United Handicapped Federation v. Andre,
. The Court also finds that the Supreme Court’s decision in
Franklin
finding that "monetary damages” could be awarded under Title IX also includes the possibility that punitive damages could be awarded.
See Waid v. Merrill Area Public Schools,
. Defendants argue that this section's failure to explicitly mention punitive damages precludes it from abrogating a State's Eleventh Amendment immunity as to those damages. The Court rejects this argument. First, under this logic, the section's failure to mention compensatory damages makes it an ineffective abrogation of those type of damages. Second, the cases relied upon by Defendants all pertain to congressional waiver of federal immunity and thus are inapposite.
See e.g. Matter of Sparkman,
. The Sixth Circuit language concerning the award of punitive damages before 1992 ignores situations where punitives would have been awarded if the circumstances supported such relief.
See e.g. Fitzgerald v. Green Valley Area Education Agency,
. Moreover, even if the rule does create an anomaly (which the Court denies), anomalies pervade civil rights law.
See e.g. Ex Parte Young,
