McGuire v. SwitzerMcGuire v. Switzer
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OPINION AND ORDER
This is an action by plaintiff Kevin McGuire, who is a paraplegic, challenging New York State regulations that imposed a ceiling or “cap” on funding for his tuition
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and maintenance expenses in connection with his law school education. He brings this action under Title I and Section 504 of the Rehabilitation Act of 1973, as amended,
Defendants have moved, pursuant to
The motion was referred to Magistrate Leonard A. Bernikow for a recommendation as to the proper disposition of defendants’ motion. In his thorough Report and Recommendation (“R & R”), the Magistrate recommended dismissal of four of the five claims on the ground that the Eleventh Amendment bars the type of relief plaintiff could properly seek against the state. The Magistrate further held that monetary damages were available based upon the state’s alleged violation of § 504. For the reasons discussed below, this Court agrees with the Magistrate’s R & R insofar as it holds that plaintiff’s claims for retrospective monetary relief that are actually claims against the state are barred by the Eleventh Amendment and that plaintiff’s claim based upon § 504 may partially stand. We disagree, however, with the Magistrate’s findings that plaintiff’s claims against defendants Scott and Switzer, in their individual capacities, are actually claims against the state
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and that plaintiff’s claims for prospective relief are moot. Yet, plaintiff’s non-moot claims for injunctive and declaratory relief are barred by the doctrine of res judicata. Lastly, plaintiff has stated a
BACKGROUND
Plaintiff McGuire is totally disabled, having suffered from paraplegia since the age of seven. He relies on a wheelchair for mobility. Continuously since 1978, plaintiff has been a client of defendant Office of Vocational Rehabilitation (“OVR”).
OVR operates rehabilitation programs established under the federal Vocational Rehabilitation Act of 1973, as amended,
The Act requires states receiving funding under the Act to develop an “individualized written rehabilitation program” (“IWRP”) for each person they are rehabilitating.
Plaintiff maintains that from the outset of his client relationship with OVR, his IWRP has had employment as a practicing attorney as its goal. Complaint ¶¶ 17-18. In furtherance of this end, OVR funded plaintiff’s undergraduate tuition and maintenance expenses at Boston University. Complaint ¶ 26. After graduating from Boston University in June 1983, plaintiff enrolled at Georgetown University Law
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School. He has since graduated from the law school. In 1982, OVR promulgated new regulations that limited its expenditures on behalf of each of its clients to $1,500 a year for tuition and $1,300 for maintenance.
See
Plaintiff initially brought a pro se Article 78 proceeding, C.P.L.R. §§ 7801 et seq., in New York State Supreme Court, Albany County, seeking review of an OVR administrative determination that had upheld the application of the “cap” regulations to him. The court dismissed the action on the grounds that the petition was not served on the Commissioner of Education or on the Attorney General as required by C.P.L.R. §§ 312 and 7804(c) and that the action was not brought within the four month period of limitations applicable to Article 78 proceedings under C.P.L.R. § 217.
Subsequently, plaintiff commenced the present action based on his belief that the caps undermine the individualization of service to rehabilitation clients that he alleges is required by federal law. Complaint ¶ 9. He seeks relief through five causes of action. First, plaintiff contends pursuant to
Plaintiff also relies on
Defendants have moved, pursuant to
In his R & R, the Magistrate recommended dismissal of all the counts except plaintiffs fifth cause of action based upon § 504 of the Act. The Magistrate found that none of the claims are barred by the three-year statute of limitations that applies and that plaintiff’s fifth cause of action for monetary relief is not barred by the earlier Article 78 proceeding. Next, the Magistrate determined that the Eleventh Amendment bars four of the five claims since the only aspects of those claims that were not moot sought retroactive monetary relief from the state and the state neither implicitly nor expressly waived its immunity with regard to those claims.
The Magistrate did find, however, that the state’s sovereign immunity to suit was eliminated by Congress’s amendment of § 504 of the Act, the statute underlying plaintiff’s fifth claim. Finding that the alleged violation of § 504 at issue occurred in part after the amendment, the Magistrate held that monetary damages were available based upon the state’s differing treatment *104 of the visually-impaired but not based upon OVR’s differing treatment of its clients.
Plaintiff raises three objections to the Magistrate’s R & R. First, he argues that there is no Eleventh Amendment bar to his first four claims because a) federal reimbursement removes the state’s Eleventh Amendment immunity; b) the state implicitly waived its immunity privilege by accepting the federal guidelines for handicapped assistance; and c) the state officials are being sued in their individual capacities. Second, plaintiff claims that even if his injunctive claims are moot with regard to law school, he has a continuing relationship with OVR for which injunctive relief is appropriate and, in any event, this Court should use its discretionary powers to rule on any moot claims since the issue of discrimination in a case such as this is capable of repetition and will always evade review. Third, plaintiff argues that his § 504 action states a claim with respect to his allegation that OVR discriminated against him vis-avis other OVR clients.
Defendants object to the Magistrate’s recommendation that plaintiff has stated an adequate claim with respect to his contention that he deserves to receive the amount of reimbursement for tuition and maintenance expenses that is given to eligible blind persons. Defendants maintain that Congress intended to treat the visually-impaired differently than other disabled individuals. In addition, defendants object to the Magistrate’s R & R on the ground that the § 504 action should not proceed because the amendment that eliminated the state’s Eleventh Amendment immunity did not cover the alleged violation at issue. In other words, defendants argue that if any violation occurred it did not occur “in part” after the passage of the amendment. Finally defendants claim that a one-year statute of limitation should apply and not the three-year limit recommended by the Magistrate.
DISCUSSION
At the outset, it should be noted that on objection to a Magistrate’s ruling, a District Court is to conduct “a
de novo
determination of the facts and legal conclusions to be drawn therefrom.”
Campbell v. U.S. District Court,
Statute of Limitations
The Magistrate’s ruling that plaintiff’s
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Defendants also argue, however, that the cause of action arose prior to January 28, 1983’because plaintiff was advised of the caps in January 1983
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and therefore the action is time-barred even under the three year statute of limitations since the action was not filed until January 28, 1986. Yet, plaintiff did not find out until June 15, 1983 that the January notice he received was not, in OVR’s view, erroneous. As a result, this Court concurs with the Magistrate’s conclusion that “plaintiff’s cause of action more definitely arose on June 15, 1983” when he received clear notice of the agency action that gave rise to his claims.
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R & R at 5, n. 1. Plaintiff’s
Eleventh Amendment Immunity
The Magistrate found that plaintiffs first four claims were barred by the Eleventh Amendment. Looking only at plaintiff’s claims for retroactive monetary relief — since the Magistrate found that plaintiff’s demand for prospective relief was mooted by his graduation from law school — the Magistrate concluded that the state had, neither implicitly nor expressly waived its immunity with regard to those four claims. The Magistrate did find however that defendants’ sovereign immunity to suit with regard to plaintiff’s fifth claim was eliminated when Congress amended § 504 of the Act. Both plaintiff and defendants raise numerous objections to these findings. Supra, pp. 103-104. This Court disagrees with the Magistrate’s holding in two respects. First, we find that plaintiff’s claims against defendants Switzer and Scott in their individual capacities do not constitute a suit against the state itself and therefore are not barred by the Eleventh Amendment. Second, we hold that plaintiff’s claims for prospective relief are not made moot by his graduation from law school.
Under the Eleventh Amendment, a private person may not sue a state in a federal court without its consent, whether or not the plaintiff is a citizen of that state.
Edelman v. Jordan,
A state may waive its immunity, however, where waiver is unequivocally expressed.
Minotti v. Lensink,
As the Magistrate concluded, this strict standard for finding that a state has waived its Eleventh Amendment immunity has clearly not been satisfied in the case at bar. The plain text of the statute in question, Education law § 1006(1), makes no mention of allowing suit against the state, let alone suit in federal court. Moreover, nothing in the legislative history of the statute or in the public policy of New York suggests either an express or implied waiver of its sovereign immunity. While plaintiff in objecting to the Magistrate’s recommendation may argue that “[t]he likely reason for the unusually broad language [in Education law § 1006(1) ] is that vocational rehabilitation was viewed as an area of uniquely federal concern,” Plaintiffs Memorandum in Opposition to the Magistrate’s R & R at 23, thereby suggesting the state’s intent to allow suit against it in federal court, the standard for finding waiver requires a clear expression of that intent and not merely a nodding recognition of a federal interest in the matter at issue. The cases cited by plaintiff in objecting to the Magistrate’s recommendation also fail to support his argument.
Plaintiff next argues that the Eleventh Amendment does not apply in this instance because New York would be fully reimbursed by the Social Security Administration (“SSA”) for any expenditures on plaintiff’s IWRP and therefore granting plaintiff the relief he requests would have no impact on the state’s treasury. 6 The real effect, however, of granting plaintiff the retrospective relief he requests will be, as the Magistrate noted, an impact on the state treasury and therefore the Eleventh Amendment is a bar to our granting such relief.
Plaintiff contends that this case is “on all fours” with
Harrington v. Blum,
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Since there is no guarantee that the State will be fully reimbursed for any expenditure on plaintiffs IWRP, were this Court to grant the retroactive monetary relief requested by plaintiff, funding could very well have to come from the state treasury. The Eleventh Amendment can not be disregarded based on such contingencies. The holding in
Harrington
was based on
Bermudez v. United States Department of Agriculture,
Plaintiff further objects to the Magistrate’s finding that his first four claims are wholly barred by the Eleventh Amendment on the ground that he has sued the individual defendants in their individual capacities and that therefore any relief as against them would not come from the State’s treasury. It is the opinion of this Court that the Magistrate incorrectly concluded that the action as against the individual defendants in their individual capacities is in reality a suit against the state and, therefore, barred by the Eleventh Amendment.
When a suit is brought not against the state but against state officials, the “question arises as to whether the suit is a suit against the state itself.”
Dwyer v. Regan,
Plaintiffs have sued defendants Scott and Switzer in their individual capacities even though the challenged regulations were issued or applied by the individual defendants in their official capacities. Defendants contend and the Magistrate agreed that since “the alleged damages sought resulted from a state policy carried out by defendants in their official capacities, the action is against them in these capacities.” Defendants Memorandum in Reply to Plaintiff’s Opposition at 11. Defendants rely on
Jones v. Smith,
Lastly, the Magistrate held that plaintiff’s fifth cause of action, based on
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§ 504 of the Act
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, was not barred by the Eleventh Amendment because Congress eliminated the state’s immunity with respect to suits for violation of this section.
See
Section 1003 of Public Law 99-506,
The amendment of Section § 504 which eliminated the state’s Eleventh Amendment immunity with respect to suits for violation of that section occurred on October 21, 1986.
Id.
The amendment provides, in subsection b, that its provisions “shall take effect with respect to violations that occur in whole or
in part
after October 21, 1986.”
Id.
(emphasis added). This amendment effectively reversed the Supreme Court’s holding in
Atascadero State Hospital v. Scanlon,
While plaintiff’s claims for retroactive relief must clear the obstacle posed by the Eleventh Amendment in order to survive defendants’ motion to dismiss, his claims for prospective relief do not face such a barrier.
See Edelman v. Jordon,
While it is true that plaintiff has graduated from law school and therefore no longer has direct tuition expenses, it is also true that he was forced to defer payment of these tuition expenses by the undertaking of substantial debt. Complaint ¶ 40. Therefore, he is, in effect, still making tuition payments in furtherance of his vocational goal when he services this debt. Since his IWRP can be revised as needed, plaintiff’s sought relief — an order that his IWRP be revised so as to require OVR to reimburse him for his tuition expenses — is neither mooted by his graduation from law school nor retroactive in nature.
In
Burr v. Ambach,
[T]he existence of a past harm [does not] render an otherwise forward-looking injunction retroactive. If it did, the rule allowing prospective relief would be substantially undermined because the need for prospective relief often arises out of past injury.
The Act provides that “[e]ach individualized written rehabilitation plan shall be revised as needed.”
Even if plaintiff were to have, or has, achieved his vocational goal to practice law, nothing can be found either in the Act or in OVR’s regulations that permanently terminates a client’s relationship with OVR when a certain employment commences. As a result, plaintiff’s request that this Court order that his continuing IWRP, or potentially a new IWRP, be “revised as needed” to bring it into conformity with OVR’s alleged obligations under the Act is not barred. 8
Res Judicata
Prior to instituting this action, Plaintiff brought a pro se Article 78 proceeding, C.P.L.R. §§ 7801 et seq., in New York State Supreme Court, Albany County, seeking review of an OVR administrative determination that had upheld the application of the “cap” regulations as to him, the court never reached the merits of his claims. The court found that the petition was not served on the Commissioner of Education or on the Attorney General as required by C.P.L.R. §§ 312 and 7804(c) and that the action was not brought within the four month period of limitations applicable to Article 78 proceedings under C.P.L.R. § 217. Although plaintiff was without counsel and the state court never reached the merits of his claim, this brief venture to state court is a bar to our considering the merits of plaintiff’s remaining claims for injunctive and declaratory relief.
In
Migra v. Warren City School District,
Plaintiff’s state court action, commenced pursuant to Article 78, was dismissed on the grounds that he failed to serve the Commissioner of Education or the Attorney General as required by C.P.L.R. §§ 312 and 7804(c) and that his action was untimely.
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New York considers a dismissal on statute of limitations grounds as “sufficiently close to a decision on the merits to bar a second action.”
Bray v. New York Life Insurance,
In the Article 78 proceeding, plaintiff challenged OVR’s application of the cap regulations to his IWRP. In that prior action, plaintiff could have raised all the federal claims for injunctive and declaratory relief that he brought in the instant action. Since plaintiff would have had an opportunity to litigate these claims in the earlier proceeding, he is precluded from doing so in this instant action.
See Fay v. South Colonie Central School District,
While “we recognize the unfairness of precluding [plaintiff] from having a court reach the merits” of his claims for injunctive relief, especially when he had commenced the Article 78 proceeding
pro se,
“there is no principled basis upon which to distinguish [plaintiff’s] case from the governing New York law.”
Bray v. New York Life Insurance,
Once a plaintiff has entered the state court system, she is bound by the preclusion rules governing that system, and the federal courts in turn must respect the finality of the judgments that issue from the state court.
Moving on to plaintiff’s claims for damages against the individual defendants in
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their personal capacity, plaintiffs two causes of action based on
These remaining causes of action state a claim insofar as they seek to enforce rights arising under Title 1 of the Act or protected by the Equal Protection Clause of the Fourteenth Amendment. Defendant contends that plaintiffs first cause of action should be dismissed because Congress intended to preclude
The Supreme Court has held that
Defendants alternatively argue that even if the Act does not foreclose a private right of action, it creates no rights enforceable under
There can be little doubt that the statutory provisions upon which plaintiff places primary reliance,29 U.S.C. §§ 722 [requiring individualized written rehabilitation program and] 723 [governing scope of vocational rehabilitation services], create rights enforceable under§ 1983 .....
Clearly, the practical concerns expressed by the Supreme Court in Pennhurst do not apply to Title I of the Rehabilitation Act. Far from imposing indeterminate obligations upon the states without substantial funding, the Act creates quite specific rights and remedies backed up by generous federal funding much like the AFDC program at issue in Thiboutot. Under the Circumstances, the only conclusion is that Title 1 creates enforceable “rights” within the meaning of§ 1983 .
Ryans v. N.J. Commission for the Blind,
Plaintiff’s other cause of action pursuant to
In order to constitute a property right, one must have a current valid expectation, based on the Government’s implied promise to continue an entitlement, in an important, personal, monetizable interest.
Cervoni v. HEW,
Plaintiff’s equal protection claim has two prongs. First, he argues the state *113 is preferring its less severely disabled recipients of funds over those more severely disabled when it applies the cap regulations equally to all eligible disabled persons. Second, plaintiff claims that the state arbitrarily favors visually-disabled individuals over other disabled individuals since the state’s existing cap regulations are higher for those who are clients of the New York State Commission on the Blind and Visually Handicapped (“CBVH”) than for those who are clients of OVR.
The first prong of plaintiff’s cause of action fails to state a claim for the .simple reason that there is no discrimination by the state in its treatment of the two groups identified by plaintiff. 13 Plaintiff argues that since OVR’s less severely disabled clients will often have lesser needs for rehabilitative services than its more severely disabled clients, applying the same caps to both groups impermissibly favors the former group over the latter. OVR applies the same cap regulations to all its clients without regard to the severity of their disabilities. While it is true that some less severely disabled individuals might have a greater percentage of their maintenance expenses reimbursed by OVR, the percentage of reimbursement for tuition and maintenance expenses any individual receives under the cap regulations will be a product of many factors unrelated to the severity of the individual’s disability — most obvious being tuition expense. As a result, it cannot be said that the group identified as less severely disabled is treated differently than the group identified as more severely disabled.
The second prong of plaintiff’s equal protection claim, however, is on different footing. Even assuming that, as defendants contend, minimal scrutiny 14 is the appropriate standard to apply under the Equal Protection Clause, defendants have failed to establish that the state has a rational basis for favoring visually-impaired individuals over its other rehabilitative clients in its provision of tuition and maintenance expenses.
Defendants defend the differentiation on the grounds that 1) different state agencies are entitled to make their own judgments with respect to funding under their jurisdiction and 2) the state is entitled to put some fiscal limits on its vocation rehabilitation services. 15 They further argue that the rational basis test need not even be applied since plaintiff has not alleged that “similarly situated persons” are being treated differently.
The Act provides that a state may elect to designate a single state agency to administer a vocation rehabilitation plan which serves both the blind and all other disabled individuals, or designate separate agencies, as New York has done, one to serve the blind and another to serve non-blind disabled individuals.
As a result, we need go to the next step and determine whether the state has a rational basis for applying different caps to services for visually-disabled individuals than to services for individuals having other severe disabilities. While defendants
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are correct that a state may limit funding for vocational rehabilitation services, it may not do so in an arbitrarily discriminatory manner. Moreover, the fact that the state has created separate agencies to serve the needs of blind and non-blind handicapped individuals is irrelevant. Both agencies are arms of the state and the state is therefore ultimately responsible for the regulations the agencies promulgate. Since there is no rational basis for the substantially higher cap on tuition and maintenance expenditures that the state applies to CBVH’s clients than that it applies to OVR’s clients, plaintiffs
Section 50b Claim
Plaintiffs next cause of action, based upon § 504, revolves around two issues nearly identical to those raised in the context of his equal protection claim. Section 504 bars discrimination against any otherwise qualified disabled person solely by reason of his disability in any program or activity receiving federal financial assistance.
The Magistrate recommended that we dismiss the former aspect of the claim and let stand the latter aspect. 16 With regard to the first aspect of plaintiff’s claim, we concur with the Magistrate that plaintiff has not been discriminated against because of his disability. For the reasons discussed in the context of plaintiff’s equal protection claim, we agree with the Magistrate’s conclusion that:
The cap regulations are uniformly applied to all individuals without regard to the severity of their handicaps. Plaintiff receives less reimbursement for tuition because he has opted to attend law school. If he elected to attend a less expensive kind of school, a higher percentage of his tuition would likely be paid for. The deficiency in his reimbursement is thus the result of his superior ambition and abilities, not his handicap.
R & R at 18. As a result, this aspect of plaintiff’s § 504 claim must be dismissed.
Yet, as with his equal protection claim, plaintiff does make out a § 504 cause of action based on the disparity between the state’s reimbursement funding for the blind as compared to its funding for other disabled individuals. Plaintiff’s disability is as severe as blindness and the only reason the state provides him with less funding for his tuition and maintenance expenses is because his disability does not involve the impairment of sight. 17 The implementing regulations of the Department of Health and Human Services proscribe this type of differential treatment:
*115 A recipient, in providing any aid, benefit, or service, may not.... on the basis of handicap:
(ii) Afford a qualified handicapped person an opportunity to participate in or benefit from the aid, benefit, or service that is not equal to that afforded to others; ----
(iv) Provide different or separate aid, benefits, or services to handicapped persons or to any class of handicapped persons unless such actin is necessary to provide qualified handicapped persons with aid, benefits, or services that are as effective as those provided to others;
(vii) Otherwise limit a qualified handicapped person in the enjoyment of any right, privilege, advantage, opportunity enjoyed by others receiving an aid, benefit, or service.
CONCLUSION
For the foregoing reasons, defendants’ motion to dismiss is granted in part and denied in part. Plaintiff may proceed in this action on the following claims:
(1) plaintiff’s
(2) plaintiff’s § 504 claim against OVR and defendants Switzer and Scott, in their individual and official capacities, for retroactive monetary relief based upon the state’s alleged discriminatory treatment of eligible non-blind disabled individuals.
Before the action can continue against the two defendants Switzer and Scott in their individual capacities, it must be determined whether or not they have a qualified immunity against such claims.
See, e.g., Anderson v. Creighton,
The parties are to complete discovery by May 11, 1990. Defendants Scott and Switzer then have until May 25, 1990 to submit their motion for summary judgement and accompanying papers based upon the defense of qualified immunity. Plaintiff has until June 4, 1990 to submit response papers to defendants’ motion for summary judgment.
It Is So Ordered.
Notes
. It is the opinion of this Court, however, that the parties should by way of a summary judgement motion fully brief the issue of whether plaintiffs claims against the defendants Scott and Switzer, in their individual capacities, are barred by Scott and Switzer’s qualified immunity to such suits.
. While defendants had initially argued that plaintiffs claims under the Rehabilitation Act were time-barred, they have not raised the issue in their objections to the Magistrate’s R & R. In any event, plaintiff's § 504 claim is also governed by a three-year statute of limitations. In
Fleming v. New York University,
. Defendants rely on plaintiff's allegation in his complaint that "in or about January, 1983" he was notified by OVR that the tuition and maintenance limits were to be applied to his law school education. Complaint ¶ 34. Neither plaintiff nor defendant, however, has indicated a particular date in January 1983 when plaintiff was notified of OVR’s intent to impose the cap regulations to his educational reimbursement.
. It is therefore unnecessary to reach plaintiff's additional claims that the statute of limitations should be tolled either because the wrong is a continuous one or because of his continuous client relationship with OVR.
. Education Law § 1006(1) provides:
The State of New York, through its legislative authority:
Accepts the provisions of any law of the United States making appropriation to be apportioned among the states for vocational rehabilitation of disabled persons, and accepts the provisions of any law of the United States making appropriation for apportionment or grants among the states for services for disabled persons.
. Plaintiff also notes that OVR receives some federal funding from the Rehabilitation Services Administration of the U.S. Department of Education.
. This section implicitly creates a private cause of action directly against the recipients of federal funds.
Marlow v. United States Department of Education,
. Even if plaintiff’s claims were moot, this Court would nevertheless not dismiss them on such grounds since the claims are capable of repetition and likely to evade judicial review. When plaintiff commenced this action, it was nearly one and a half academic years before his graduation from law school. Since a person who seeks to challenge an OVR regulation must first proceed though OVR’s layers of administrative review, it is possible that no person subject to the caps would ever be able to obtain federal court review before completing his or her last year of school.
See Board of Education of Hendrick Hudson Central School District v. Rowley,
. Suit was filed after the four months limitations for Article 78 proceedings had expired.
. The Supreme Court recently ruled in what has been described as an "ill-founded and sophistic opinion,"
Gray v. University of Kansas Medical Center, et al.,
. It is for this reason that plaintiff's cause of action based upon an alleged implied right of action under Title I must be dismissed. The intent of Congress governs whether a statute creates a private right of action.
Universities Research Association v. Coutu,
. It is therefore unnecessary to reach the issue of whether
. The Act requires that those individuals with the most severe disabilities be preferred over those individuals with less severe disabilities if vocational rehabilitation services cannot be provided to all eligible disabled persons.
. Defendants argue that handicapped individuals do not constitute a suspect class citing
Sherer v. Waier,
.Defendants do not dispute that the caps on tuition and maintenance expenditures applied by CBVH are higher than those applied by the OVR.
. The Magistrate's conclusion that discrimination vis-a-vis other disabled persons is cognizable under § 504 is supported by the bulk of the authority.
See, e.g., Doe v. Colratti,
. As discussed above, defendants are unable to provide any justifiable reason for applying higher caps to services for visually-disabled individuals than to services for individuals having other severe disabilities. While defendants are correct that a state may limit funding for vocational rehabilitation services, it may not do so in an arbitrarily discriminatory manner.
See generally Detsel v. Sullivan,