THEODORE JOHNSON, Plaintiff - Appellee, v. LOUISIANA DEPARTMENT OF EDUCATION; ET AL, Defendants, LOUISIANA DEPARTMENT OF EDUCATION; STATE OF LOUISIANA; PRESIDENT OF LOUISIANA STATE UNIVERSITY SYSTEM; BOARD OF REGENTS, Defendants - Appellants. LYNN AUGUST, Plaintiff - Appellee, v. SUZANNE MITCHELL; MAE NELSON; ED BARRAS; DEPARTMENT OF SOCIAL SERVICES, for the State of Louisiana Defendants - Appellants.
No. 02-30318
No. 02-30369
United States Court of Appeals, Fifth Circuit
May 5, 2003
Charles R. Fulbruge III, Clerk
EDITH H. JONES, Circuit Judge:
BACKGROUND
This court consolidated the cases of Theodore Johnson and Lynn August due to the common issue whether Eleventh Amendment sovereign immunity bars claims for money damages against entities of the state of Louisiana, which arose during a particular time period, brought under
Appellee Johnson was a full time student at the University of New Orleans (UNO) on financial aid. He is disabled by a partial paralysis of his left foot. In February 2000, a medical emergency caused Johnson to withdraw from UNO. Four months later, UNO revoked Johnson‘s eligibility for financial aid. Johnson successfully appealed the decision. The appeals committee, however, did not inform Johnson of its decision until after the fall 2000 semester had begun; the committee also imposed academic requirements to maintain his eligibility for financial aid. Johnson asserts that because of his late start in fall semester classes, he was unable to comply with the academic requirements.
August, a blind man, worked as a computer instructor for the Louisiana Department of Social Services (DSS). In June 2000, DSS eliminated August‘s teaching duties, averring that August failed to submit “manual materials” required for use in the computer course. August contended, to the contrary, that he submitted the necessary materials at the same time as a sighted instructor whose materials were approved. August brought various claims for money damages against the DSS and three state employees in their official capacities, including claims under the ADA and the Rehabilitation Act.
Separate district courts in the Eastern District of Louisiana dismissed all claims against the defendants based on
DISCUSSION
In denying the appellants’ motions to dismiss Johnson‘s and August‘s § 504 claims, the district courts concluded that the appellants waived their state sovereign immunity under the Rehabilitation Act by receiving federal funds.2 This court reviews denials of motions to dismiss based on state sovereign immunity de novo. Id. This court‘s recent decision in Pace, 2003 WL 1455194, mandates a different conclusion.
Under the Constitution‘s
Pace held that
CONCLUSION
State sovereign immunity bars Johnson‘s and August‘s § 504 claims for money damages against the appellants. We therefore vacate the district courts’ denials of the appellants’ motions to dismiss and remand with instructions to dismiss these claims for lack of jurisdiction.
VACATED and REMANDED.
The premise of the instant case is simple: Exercising its Spending Clause powers, Congress offers education funds to the several states under Title X, on the condition, pellucidly expressed in
The decision in this case, though, is not ours to make, at least not yet. Only if the very recent (and as yet not precedential) decision by a prior panel of this court is not reheard en banc, or is reheard but is decided the same way, will this panel be bound. I refer to Pace v. Bogalusa City School Board,1 which involved precisely the same assertions of Eleventh Amendment immunity by Louisiana defendants in a lawsuit brought under the IDEA, ADA and Rehabilitation Act. In an unanimous opinion, the Pace panel extended sovereign immunity to the Louisiana defendants, reasoning that they could not have “knowingly waived” their sovereign immunity prior to this court‘s decision in Reickenbacker v. Foster2 in 2001.3
If Pace does become precedent, this panel will have no wiggle room: We will be bound by stare decisis. With respect, however, I am convinced that the Pace panel misapplied the “knowing waiver” test —— actually, applied the wrong “waiver” test —— and thus, putting it candidly, wrongly decided Pace. I hope that our court
The fundamental problem with the reasoning of the panel majority here —— repeating the problematic reasoning first employed in Pace —— is that it conflates the “knowing waiver” exception of Fourteenth Amendment abrogation of sovereign immunity with the “clearly and unambiguously stated/non-coercive” waiver exception for Spending Clause cases. Although both exceptions are confusingly referred to in the case law as “waiver” doctrines, they embody entirely different tests, the latter being less a true waiver and more an acceptance of a condition precedent to entitlement to the federal funds.
The relevant statute in both Pace and here —— § 504 of the Rehabilitation Act —— was enacted in 1973. Originally, it purported to waive state sovereign immunity pursuant to Congress‘s power to abrogate such immunity under § 5 of the Fourteenth Amendment.4 In 1985, though, the Supreme Court held that the Rehabilitation Act neither abrogated state sovereign immunity under
Thus, in analyzing whether the Louisiana defendants relinquished their sovereign immunity under § 504 of the Rehabilitation Act and
Justice Scalia‘s majority opinion for College Savings Bank7 explains that the “knowing waiver” analysis applies only to federal statutes enacted pursuant to § 5 of the Fourteenth Amendment; that, in contrast, when a federal Spending Clause statute forthrightly conditions a state‘s acceptance of a congressional “gift” of funds on the state‘s relinquishment of sovereign immunity as an automatic consequence of such acceptance,8 a “fundamentally different” issue
As the College Savings Bank Court explained, statutes that impute waiver of sovereign immunity as an ipso facto consequence of a state‘s acceptance of federal monies would be “coercive” only at the point “at which ‘pressure turns into compulsion,‘“’12 such as by requiring the state to refrain “from otherwise lawful activity.”13
The upshot of this analysis is that when a Spending Clause statute clearly imposes, as an automatic condition precedent to obtaining federal funds under such a statute, the recipient state‘s commitment not to invoke sovereign immunity, and a state accepts the funds on that condition, it is wholly inappropriate for a court to embark on the “knowing waiver” analysis announced by the Court in College Savings Bank for determining whether Congress has validly abrogated a state‘s sovereign immunity under § 5 of the Fourteenth Amendment. To do so is to turn a blind eye on the universally recognized distinction between those statutes that would abrogate a state‘s sovereign immunity under the Fourteenth
As the 1986 version of the statute at issue in both Pace and this case —— the Rehabilitation Act —— was indisputably re-enacted pursuant to Congress‘s Spending Clause power, the only permissible inquiry in these post-1986 cases is (1) whether the condition
A State shall not be immune under the Eleventh Amendment of the Constitution of the United States from suit in Federal court for a violation of section 504 of the Rehabilitation Act of 1973 . . . or of the provisions of any other Federal statute prohibiting discrimination by recipients of Federal financial assistance.19
It cannot be questioned —— at least not seriously —— that this statute explicitly predicates a state‘s gaining access to federal monies on that state‘s commitment not to assert sovereign immunity if suits are brought under § 504 of the Rehabilitation Act. This condition applies to any state that accepts these funds, regardless of whether the state “believes” that it does or does not have any immunity to the Rehabilitation Act to relinquish. More important, when the Louisiana defendants took the money, the Supreme Court had already blessed the Rehabilitation Act as the paragon of drafting by Congress of a proper waiver under its Spending Clause power. In Lane v. Pena, the Court ruled that the current, 1986 version of the Rehabilitation Act was enacted in response to our decision in Atascadero
In fact, the Supreme Court went so far as to praise “the care with which Congress responded to our decision in Atascadero by crafting an unambiguous waiver of the States’ Eleventh Amendment immunity” in the amended and re-enacted Rehabilitation Act.21 No room is left for doubt, particularly after the Lane Court‘s ruling in 1996, that the express terms of the Rehabilitation Act clearly and unambiguously create a valid, ipso facto waiver of state sovereign immunity under Congress‘s Spending Clause power as a condition precedent to accepting the offered funds —— a condition that ripens into irrevocability on acceptance of the funds.
As for the coercion prong of the test for conditions imposed in Spending Clause statutes, there is not even a whiff of duress in the conditional grant language in the Rehabilitation Act. Indeed, it is far less controlling of a state‘s behavior than the minimum-age drinking laws that were imposed on the states through Congress‘s exercise of its Spending Clause power, and which were
[A]ny state reading § 2000d-7(a)...would clearly understand the following consequences of accepting Title IX funding: (1) the state must comply with Title IX‘s antidiscrimination provisions, and (2) it consents to resolve disputes regarding alleged violations of those provisions in federal court.23
There was simply no legal or factual justification for applying the Fourteenth Amendment‘s “knowing waiver” test in Pace and none exists in this case; indeed, to do so is error as a matter of law. Rather, the only proper inquiry in either case is straightforward: Is the Rehabilitation Act‘s clearly stated condition that a state not assert sovereign immunity coercive? It obviously is not. As previously noted by six of our fellow circuits, the statute is clear; it contains an express condition under Congress‘s Spending Clause power for waiver of state sovereign immunity, and there is nothing coercive about it.24
Even more to the point, it matters not one iota that the Louisiana defendants now say, self-servingly, that they believed they had no immunity to waive, and thus cannot be held to the statute‘s condition precedent of waiver. That is wholly illogical and irrelevant: The only material point is that when these defendants took the money, they had no expectation of immunity, regardless of whether this absence of expectation resulted from their own mistake of law (never an excuse) or from a correct reading of the applicable federal legislation. In buying into the Louisiana defendants‘s groundless mistake of law defense, the panel opinion in Pace relies on a Second Circuit opinion that also impermissibly crosses jurisprudential lines in applying the Fourteenth Amendment‘s “knowing waiver” test to the Rehabilitation Act‘s condition precedent waiver, which was enacted under Congress‘s Spending Clause power. Thus, Pace would put this court on the side of the Second Circuit in the circuit split that it created with the six other circuits that have analyzed the Rehabilitation Act properly as providing a waiver of state sovereign immunity under Congress‘s Spending Clause power
Either way, though, the Louisiana defendants made a conscious —— “knowing” —— choice (1) to accept the federal funds and, (2) vis-à-vis those funds, to be subject to the Rehabilitation Act and to a lawsuit in federal court on Rehabilitation Act claims. The Louisiana defendants‘s acceptance of the funds pursuant to the clear wording of the statute triggered the Rehabilitation Act‘s waiver of state sovereign immunity. Thus, they cannot now assert —— nor at any time after the 1986 enactment of § 2000d-7 could they ever have asserted —— sovereign immunity against Rehabilitation Act claims.
For these reasons, I specially concur in the decision of the panel majority if, in the final analysis, Pace should become binding precedent; otherwise, I respectfully dissent. Either way, though, I remain in fundamental disagreement with the reasoning and testing methodology of the panel opinion in Pace and thus with the panel majority‘s opinion here based on Pace. If, however, a majority of the judges in active service on this court agree to rehear Pace en banc, and the en banc court then decides Pace as I advocate in this opinion, the instant case will be returned to this
