Luis Martinez v. F. David Mathews, Secretary of Health, Education and WelfareLuis Martinez v. F. David Mathews, Secretary of Health, Education and Welfare
This is an action asserting the failure of a provider of health services for migrant and seasonal farmworkers and their families to comply with the Migrant Health Act’s requirement that individuals being served by the center comprise a majority of the provider’s “governing board,”
Our disposition of the case is complicated by the lengthy procedural course already run in the case, and by the narrow procedural setting of this appeal. Plaintiffs’ original complaint sought declaratory and injunctive relief based both on the alleged noncompliance with the governing board requirement, and on allegations that CHI unlawfully used migrant funds for health care and administrative costs not attributable to eligible farmworkers or their familiеs. Besides asking for an accounting, court costs, and attorneys’ fees, plaintiffs urged the Court to order CHI both to establish the requisite permanent board and also to establish an interim board. On the day their complaint was filed, plaintiffs also moved for a preliminary injunction, which would have required immediate establishment of an interim board, and suggested a plan which would have required election of the farmworker members of this board in June 1975. On May 27, 1975, the lower court denied the preliminary injunction, but ordered the government defendants and CHI to “require that a policy board be established and the membership of that board chosen no later than . . November, 1975” in accordance with the then applicable HEW regulation. An Ad Hoc Task Force, set up earlier by the Comprehensive Health Planning Council of South Florida, Inc., worked to formulate a plan for the selection of a board complying with the migrant health regulations,
Then, on November 21, 1975, CHI filed a petition “for emergency relief and order staying election.” A major ground for this motion was that CHI had only recently been informed by HEW that the 1975 amendments to the Public Health Service Act would now be applicable to it. (The new amendments, whose impact is discussed later in this opinion, altered the governing board requirements). Besides its apparent argument that the dictates of the new law were uncertain, CHI was disturbed by the possibility of multiple elections, and also restated its concern that all groups actually served by CHI be represented on its board. HEW joined in CHI’s petition (though without concurring in the CHI “concern” just mentioned). Over plaintiffs’ opposition, the court below granted the petition for emergency relief on January 9, 1976, declaring void any selection procedures followed pursuant to its earlier order. In its order, the court required the defendants to “effectuate a selection process” to be completed no
The next step was a February 11, 1976 motion filed jointly by plaintiffs and HEW, asking the court to order CHI to forthwith implement a proposed election plan. One day earlier, CHI’s board had refused to accept a plan agreed to by plaintiffs and HEW. The trial court held a hearing on February 19, and on March 10 issued the order which plaintiffs challenge in this appeal. This order mandated the election of an “interim board ... tо serve on . CHI’s Board of Directors until the annual election in November of 1976.” Ten migratory and seasonal farmworkers were to be elected on April 4, 1976 and added to the then existing board. In issuing this order, the court chose a solution already embodied in by-laws adopted by CHI on February 10, pursuant to which the existing board (evidently consisting of sixteen members) was to be augmented with ten farm-workers (and seven “non-migratory and seasonal agricultural workers.”) The farm-worker election was held on April 4, 1976. 3
Further complicating the procedural picture is the absence of any final judgment as yet. On December 31, 1975, CHI filed a motion for summary judgment. HEW filed its motion for summary judgment on January 5, 1976. The February 19 hearing, which dealt with the joint motion of plaintiffs and HEW for implementation of the election plan, was also to consider CHI’s motion for summary judgment. On February 23, 1976, plaintiffs also sought partial summary judgment, on the governing board issue. So far as the record reveals, no order has been issued on any of these motions for summary judgment.
I. Jurisdiction and the Scope of Review
It is clear that the appeal before us is an interlocutory one. (Indeed, a trial date had been set for late November, but this date has since been cancelled and the case transferred to another district Judge). Our jurisdiction to hear the appeal is not thereby impaired,
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for the lower court’s March 10 order that an interim board be elected is properly appealable under
CHI asserts, however, that the appeal is moot. It is not contended, of course, that there is no active controversy between plaintiffs and CHI.
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But when suit was filed, the applicable law was
Our action in this case could be more seriously constrained by the fact that various aspects of plaintiffs’ theories supporting entitlement under the new law apparently have not been previously presented to the lower court. It is frequently said that appellate courts should not consider issues raised for the first time on appeal.
See, e. g., Guerra v. Manchester Terminal Corp.,
II. The Merits
To determine whether, under the new statute, the plaintiffs are entitled to preliminary injunctive relief beyond what they have received, we must both ascertain whаt composition of a governing board would satisfy this law, if a board is required, and then decide whether any governing board is required at all. The basic provision for the board’s composition is
What these standards do not spell out is whether the individuals “who are or will be
Put precisely, therefore, the issue is whether such other persons are being served by “the center.” The term “migrant health centers” is defined in
We turn, therefore, to the legislative history. The existence of a distinct migrant health program evidently dates back only to Pub.L. No. 87-692, 76 Stat. 592 (1962). The first explicit provision for community or client participation in the migrant health programs came in Pub.L. No. 91-209, 84 Stat. 52 (1970), a relatively vaguely worded mandate of participation by “persons broadly representative of all elements of the population to be served and others in the community knowledgeable about such needs.” HEW implemented this provision in
This development suggests a growing Congressional concern to assure the recipients of migrant health services a voice in the provision of their health care. The same concern is revealed in the report of the Senate Labor and Public Welfare Committee, accompanying the bill which became the present law, which notes that the 1970 adoption of a participatiоn provision followed “hearings which determined that there existed little if any opportunity for migrants to influence the. content of policies and programs intended to improve their lot.” S.Rep.No.94-29, 94th Cong., 1st Sess. 102 (1975), [1975], U.S.Code Cong. & Ad.News pp. 469, 565.
There is also evidence of a continuing effort by Congress to prevent health care for migrants from being “lost in the shuffle.” Undoubtedly, much of Congress’ concern, as CHI emphasizes, has been to constrict the discretion of the executive branch to modify the Congressional blueprints for health care provision. But the needs of migrants have received inadequate attention at all levels of government, and Congress was surely cognizant of this problem. Certain of the comments of Congressional committees reflect or are consistent with a concern for this broader danger. Thus, in H.R.Rep.No.91-711, 91st Cong., 2d Sess. (1969) , [1970] U.S.Code Cong. & Ad.News pp. 2499, 2501, the House Interstate and Foreign Commerce Committee characterized migrant health legislation as seeking to held “States and communities [to] adapt their health care system to the migrant’s unique situation and need.” The Committee was encouraged by the “promising start” in the provision of migrant services, but it felt that “special programs for agricultural migrants must be continued at this point of potential maturation [of the projects] to assure that the migrants are not lost in the shuffle, as they have been in the past.”
Id.
at 2502. The conference report on the 1970 bill, Conf.Rep.No.91-853, [1970] U.S.Code Cong. & Ad.News pp. 2504, 2505, is still more forthright in emphasizing the need for a separate migrant program because of the inadequate inclusion of migrants in State and local programs for the
This attention to migrant needs is hardly inconsistent with a recognition that facilities which serve migrants may also serve others who need medical care.
CHI points out, however, that the governing board requirement of
The views of HEW, as the agency charged with administering thе statute, are also entitled to weight. In response to the lower court’s direction, on January 9, 1976, that the parties agree on a selection process with the advice of the HEW General Counsel, two memoranda were produced by Carol C. Conrad, an Attorney Advisor for the Public Health Division, and sent on for the court by Louis K. Polonsky, an Assistant Regional Attorney. These memoranda take the position that a majority of the board must be migratory and seasonal farmworkers and members of their families, since these groups constitute the population eligible to be served by a migrant health center. At oral argument, counsel for the government at least implicitly appeared to agree that CHI’s present board did nоt satisfy the specifications for governing boards (although he also argued, see page 1241 of 544 F.2d infra, that CHI was not presently required to have a board).
This strict reading of the farmworkerrepresentation requirement could be called into question if its applicаtion were likely to severely impair the functioning of CHI. Were CHI required to operate its entire range of health services, most not going to farmworkers, under the sway of a farm-worker-controlled policy board, the voice of other health care consumers might be muffled. But plaintiffs suggest, instead, a separate board, farmworker-dominated, overseeing only the expenditure of migrant funds. As noted earlier,
Somewhat troublesome legal problems are generated, however, by resort to this system.
It is our view, therefore, that if CHI is subject to the governing board requirement, then its board for the migrant center must have a farmworker majority. Under the statute prior to amendment, every project was obliged to create a board, unless it fell within one of the classes entitled to a delay before this requirement could be imposed,
see
It was the position of HEW at oral argument that since migrant health centers must have migrant-controlled boards, and CHI does not, CHI’s grant could not have been a “center” grant. The after-the-fact quality of this argument is highlighted by the statement in plaintiffs’ supplemental brief that a Regional Public Health Service representative had confirmed to plaintiffs’ counsel that CHI had been funded as a center. Morеover, since even an entity must have a board unless meeting this requirement is found by the secretary to be infeasible, the absence of a board (given the apparent absence of an infeasibility findings as well) also casts doubt on CHI’s status as an entity.
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On the other hand, there is some suggestion that HEW viewed the entity provision as the avenue for continuing the funding of projects which did not satisfy the directives of the new statute; if so, then CHI might well have been seen as falling in this class.
Cf.
prefatory statement on continuation projects under
Even if it is concluded that the Secretary tacitly decided both that CHI was an entity and that it could not feasibly set up a board, such findings would face substantive attack. First, plaintiffs contend that CHI is a “center” rather than an entity. They argue that CHI provides the “primary health services” required of centers by
The second substantive problem with HEW’s stance is more significant. Under the regulations, entities are only freed of the governing board requirement if the Secretary finds that meeting the requirement is not feasible or practical at the time of the grant award,
In evaluating claims for preliminary relief, courts are bound by stringent standards. Appellate courts especially must not go beyond a very narrow scope of
Underlying the grant of such relief must, of course, be an evaluation of the equitable considerations involved: the plaintiffs’ likelihood of prevailing on the merits, the possibility of irreparable harm to the plaintiffs, the counterbalancing risk of harm to the defendants, and the public interest.
See Blackshear Residents Org. v. Romney,
Yet it is also true that the potential harm to CHI from the grant of preliminary relief is comparable. If farmworkers are not entitled to a greater voice on the board, then when they receive it some оther group will be improperly deprived of representation. Moreover, there is an inescapable administrative cost, both in the reorganization necessitated by a greater farmworker voice and in the greater complexity of structure which the creation of a separate migrant health project board would entail. Nevertheless, these consequences seem to flow inevitably from a decision on the merits for the plaintiffs. In the same way, the public interest is on balance served by an order granting plaintiffs their rights under this statute.
We, therefore, conclude that plaintiffs are entitled to a modification of the lower court’s earlier order.
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Without foreclosing a further modification of this preliminary relief after trial on the merits below, we hold that plaintiffs are entitled now to majority representation on a board with responsibility for administration of the migrant grant. This new board should be selected as soon as a plan for its selection is approved by the court below, and should assume its responsibilities as rapidly as possible in light of the administrative difficulties inherent in this restructuring. We do not decide whether this representation should be provided on a board responsible solely for the migrant fund, or on the overall CHI board. Nor do we decide whether the selection of these representatives should be by election or by some other method.
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Rather, we leave these matters to the nego
REVERSED and REMANDED with directions. The judgment of this Court will issue forthwith.
Notes
. CHI’s Executive Director, George Rice, is also a defendant. In addition, plaintiffs named as defendants the Secretary of the Department of Health, Education and Welfare, now David
. The Task Force had evidently been set up with a similar function, prior to the filing of this lawsuit, in response to HEW’s indication as early as April 1, 1975 that CHI must achieve a farmworker majority board. HEW also evidently acquired, and CHI on April 21, 1975 submitted, а letter of intent to develop a plan for selection of such a board. In addition, HEW imposed a special condition on its 1975-76 grant to CHI. This condition required the submission of a plan to reconstitute the board in accordance with Migrant Health Program regulations. CHI complied with this requirement when, on July 17, 1975, it accepted (and later submitted) a plan almost identical to one approved by the Comprehensive Health Planning Council after consideration of recommendations by the Ad Hoc Task Force. This plan provided for a farmworker-majority board. (The Council’s plan was changed in only one respect, to set the date of the election for January. The same change was made by the court, as noted in text.)
. Under the by-laws, a new board was to be elected in November, 1976; on this thirty-four member board, migratory and seasonal agricultural workers would comprise “one member less than a percentage of the entire Board of Directors equivalent to the percentage of patient visits by [such] workers of the total patient visits of all CHI operated facilities.” (Bylaws, Art. IV § l.(b) 1). CHI-compiled statistics indicate that this figure was approximately 32% from February 1974 to January 1975.
. In an unpublished order, another panel of this Court denied CHI’s motion to dismiss the appeal for lack of jurisdiction, and directed that the mootness question, infra be carried with the case.
. That trial of the case is pending does not, of course, in itself make disposition of this case moot.
. We note that this standard is slightly stricter than that under the old regulations which required only that 51% of the board members “be chosen by a democratic process by the population to be served.”
. Migrant centers undoubtedly can provide services which benefit a wider population. This spillover effect is particularly clear in the case of environmental health services, which migrant centers must provide, when appropriate, under
. HEW’s Carol Conrad, in a memo of February 4, 1976, outlines this organizational structure. Conrad indicates that a separate legal entity might be required as the recipient of the fеderal funds. Plaintiffs appear to feel that only a separate board, rather than a separate corporation, would be necessary.
. Entities may receive up to two grants,
The new statute also permits grants for the planning and development of centers, 42 U.S. C.A.
. The record does not reveal the date on which CHI’s current grant was awarded. If the award preceded the promulgation of the regulations then presumably it need not be in compliance with them if retroactive applicability was not intended. In particular, the provision that an entity must have a governing board unless the secretary finds it infeasible — a provision not derived from any parallel provision of the statute — would not apply of its own force. But we would still consider the regulations as guides in оur interpretation of the impact of the statute upon CHI.
. Because we hold plaintiffs equitably entitled to further relief, we need not reach the question of whether in this Circuit an injunction may be issued against a violation of federal law without regard to the balance of the equities.
See generally Sierra Club v. Coleman,
.
. We note, however, that