WICOMICO NURSING HOME, as assignee and/or authorized Representative of Margaret Smith, Peggy Outten, Ruby Bounds, Shirley Hackett, Carol Synder, and William Soil; OAKVIEW SNF, LLC, d/b/a Oakview Rehabilitation and Nursing Center, as assignee and/or authorized Representative of Cheryl Hart; ANCHORAGE NURSING, LLC, d/b/a Anchorage Nursing and Rehabilitation Center, as assignee and/or authorized representative of Benjamin Winder and Frances Johnson; BROOKE GROVE FOUNDATION, INC., as assignee and/or authorized representative of Eloise Roberson and Mary Imhoff v. LOURDES R. PADILLA; DENNIS R. SCHRADER
No. 17-1972, No. 17-2033
UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT
December 6, 2018
PUBLISHED
WICOMICO NURSING HOME, as assignee and/or authorized Representative of Margaret Smith, Peggy Outten, Ruby Bounds, Shirley Hackett, Carol Synder, and William Soil; OAKVIEW SNF, LLC, d/b/a Oakview Rehabilitation and Nursing Center, as assignee and/or authorized Representative of Cheryl Hart; ANCHORAGE NURSING, LLC, d/b/a Anchorage Nursing and Rehabilitation Center, as assignee and/or authorized representative of Benjamin Winder and Frances Johnson; BROOKE GROVE FOUNDATION, INC., as assignee and/or authorized representative of Eloise Roberson and Mary Imhoff,
Plaintiffs - Appellants,
v.
LOURDES R. PADILLA; DENNIS R. SCHRADER,
Defendants - Appellees.
No. 17-2033
WICOMICO NURSING HOME, as assignee and/or authorized Representative of Margaret Smith, Peggy Outten, Ruby Bounds, Shirley Hackett, Carol Synder, and William Soil; OAKVIEW SNF, LLC, d/b/a Oakview Rehabilitation and Nursing Center, as assignee and/or authorized Representative of Cheryl Hart; ANCHORAGE NURSING, LLC, d/b/a Anchorage Nursing and Rehabilitation Center, as assignee and/or authorized representative of Benjamin Winder and Frances Johnson; BROOKE GROVE FOUNDATION, INC., as assignee and/or authorized representative of Eloise Roberson and Mary Imhoff,
Plaintiffs - Appellants,
v.
LOURDES R. PADILLA; DENNIS R. SCHRADER,
Defendants - Appellees.
Appeal from the United States District Court for the District of Maryland, at Baltimore. Richard D. Bennett, District Judge. (1:16-cv-01078-RDB)
Argued: September 27, 2018 Decided: December 6, 2018
Before AGEE and FLOYD, Circuit Judges, and John A. GIBNEY, Jr., United States District Judge for the Eastern District of Virginia, sitting by designation.
Affirmed by published opinion. Judge Agee wrote the opinion, in which Judge Floyd and Judge Gibney joined.
ARGUED: Kimberly Mahlow Watt, SB2, INC., Harrisburg, Pennsylvania, for Appellants. David Stephen Lapp, Michael Lee Bouyea, OFFICE OF THE ATTORNEY GENERAL OF MARYLAND, Baltimore, Maryland, for Appellees. ON BRIEF: Kathleen C. Morris, Katie Z. Van Lake, SB2, INC., Harrisburg, Pennsylvania, for Appellants. Brian E. Frosh, Attorney General, Hilma J. Munson, Assistant Attorney General, OFFICE OF THE ATTORNEY GENERAL OF MARYLAND, Baltimore, Maryland, for Appellees.
Wicomico Nursing Home, Oakview SNF, LLC, Anchorage Nursing, LLC, and Brooke Grove Foundation, Inc. (the “Nursing Homes“), on behalf of eleven residents, sued Lourdes Padilla, the Secretary of the Maryland Department of Human Services, and Dennis Schrader, the Secretary of the Maryland Department of Health (the “Secretaries“). The Nursing Homes allege that the Secretaries wrongfully denied the residents Medicaid benefits in violation of the Fourteenth Amendment and several federal statutes. The district court dismissed the Nursing Homes’ Complaint for lack of subject matter jurisdiction and failure to state a claim upon which relief could be granted. The Nursing Homes moved to alter or amend the judgment, which the district court denied. The Nursing Homes now appeal both orders. For the reasons set forth below, we affirm the district court‘s determinations.
I.
“Medicaid is a cooperative program through which the federal government offers financial assistance to states, allowing them to provide medical services to individuals with limited incomes.” Pashby v. Delia, 709 F.3d 307, 313-34 (4th Cir. 2013). Maryland participates in Medicaid, and, as a participant in Medicaid, the state “must comply with federally mandated standards.” Id.
The Nursing Homes alleged the Secretaries’ handling of the Medicaid program did not comply with state and federal law. For example, the Nursing Homes alleged in their Complaint that the Secretaries did not seek to obtain Medicaid applicants’ financial information electronically, as required by federal regulation, but placed the burden of showing need on applicants. They also alleged the Secretaries did not comply with either federal or state laws
Based on these alleged deficiencies, the Nursing Homes, “as assignee and/or authorized representative of” one or more of eleven of their current or former residents (collectively, the “Residents“),1 initiated a lawsuit against the Secretaries in the District of Maryland. J.A. 9. According to the Complaint, the Residents had been denied Medicaid coverage in the past, had received services from one of the Nursing Homes after being denied Medicaid coverage, and carried “a substantial outstanding balance” with their respective Nursing Homes. J.A. 11-14 ¶¶ 5-15.
Alleging various causes of action under the Fourteenth Amendment, the Medicaid Act, Title II of the Americans with Disabilities Act (the “ADA“), and Section 504 of the Rehabilitation Act, the Nursing Homes asked for declaratory relief and an injunction “requiring the [Secretaries] to automatically approve the [Residents‘] Medicaid benefits” J.A. 34 ¶ 131, to apply retroactively to the day each Resident became eligible for Medicaid benefits. The Nursing Homes also sought compensatory and emotional distress damages.
The district court dismissed the Complaint for lack of subject matter jurisdiction on two grounds. First, it concluded the Eleventh Amendment barred the Nursing Homes’ Fourteenth Amendment and Medicaid Act claims. The court noted that the Eleventh Amendment allows only prospective relief, but the relief the Nursing Homes sought was retrospective in nature. Separately, the district court found that the Nursing Homes’ claims for prospective relief were, at best, moot because the Residents were either receiving Medicaid benefits or deceased so no prospective relief could be given. Second, the court held that the Nursing Homes failed to state a plausible due process claim because the Residents had an opportunity to challenge the Secretaries’ actions through the state administrative and judicial processes. Based on these holdings, the district court dismissed the case by order of August 7, 2017, but without specifically addressing the ADA or Rehabilitation Act claims. The Nursing Homes timely appealed the court‘s order.
The Nursing Homes also moved to alter or amend the district court‘s dismissal order under
The Nursing Homes timely appealed the district court‘s order denying their
II.
A.
The district court dismissed the Nursing Homes’ Fourteenth Amendment and Medicaid Act claims for lack of subject matter jurisdiction under
B.
The Eleventh Amendment prohibits “any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State.”
Notwithstanding this broad coverage, the Supreme Court carved out a limited exception to Eleventh Amendment immunity in Ex Parte Young, 209 U.S. 123 (1908).2 The Ex Parte Young exception to the Eleventh Amendment “allows private citizens, in proper cases, to petition a federal court to enjoin State officials in their official capacities from engaging in future conduct that would violate the Constitution or a federal statute.”
Antrican v. Odom, 290 F.3d 178, 184 (4th Cir. 2002). Under this exception, a state official who acts in violation of federal
By subjecting a state official to a legal action, the Ex Parte Young exception seeks to “conform [his] future conduct to the requirements of federal law, even though such an injunction may have an ancillary effect on the state treasury.” Quern v. Jordan, 440 U.S. 332, 337 (1979). Thus, this Court has held that this exception “does not apply when the alleged violation of federal law occurred entirely in the past,” DeBauche v. Trani, 191 F.3d 499, 505 (4th Cir. 1999), but applies when “(1) the violation for which relief is sought is an ongoing one, and (2) the relief sought is only prospective,” Allen, 134 F.3d at 627.
Here, the Nursing Homes’ Complaint requests three kinds of relief: (1) compensatory damages,3 (2) declaratory relief, and (3) injunctive relief, including the Secretaries’ “automatic approval (and payment) of the [Residents‘] Medicaid benefits retroactive to their initial dates of eligibility.” J.A. 24 ¶ 73. The district court held that because the relief sought by the Nursing Homes “is not prospective in nature, they are unable to avail themselves of the [Ex Parte] Young exception, and the Secretar[ies] are entitled to state sovereign immunity under the Eleventh Amendment.” J.A. 71-72. We agree with the district court that certain relief sought by the Nursing Homes is not prospective in nature and thus Eleventh Amendment immunity bars this claim.
Relief that is retrospective in nature, such as “the payment of . . . money which that court held should have been paid, but was not,” does not fall under the Ex Parte Young exception. Edelman v. Jordan, 415 U.S. 651, 664 (1974). The Eleventh Amendment prohibits a claimant from seeking retrospective relief that “requires payment of state funds, not as a necessary consequence of compliance in the future with a substantive federal-question determination, but as a form of compensation” for the past wrong. Id. at 668. This relief “is measured in terms of a monetary loss resulting from a past breach of a legal duty on the part of the . . . state officials.” Id.
Accordingly, when, in a previous case, Maryland reduced Medicaid recipients’ benefits without the statutorily required notice, we held that the Eleventh Amendment prevented a Medicaid recipient from collecting reimbursement for services rendered after Maryland had improperly terminated his Medicaid benefits and before the district court held that the state‘s procedures violated the Medicaid Act. Kimble v. Solomon, 599 F.2d 599 (4th Cir. 1979). We explained that, “[t]o require the state to make payments for these past medical services would be tantamount to the award of an [a]ccrued monetary liability which represents retroactive payments.” Id. at 604-05 (alterations and internal quotation marks omitted).
Here, the Nursing Homes requested the same type of relief as did the plaintiffs in Kimble: an award of Medicaid benefits or payments for past medical services dating back to the Residents’ dates of eligibility.
The Nursing Homes fail to distinguish the relief sought in Kimble from the relief they seek here. They cite to an inapposite case, Smith v. Miller, in which the district court had ordered that all future Medicaid requests not timely processed, as required by Illinois law, would be deemed approved. 665 F.2d 172, 173-74 (7th Cir. 1981). In contrast, the Nursing Homes here demanded that the Secretaries approve previously denied Medicaid applications and pay claims retroactive to the Residents’ eligibility date. The Nursing Homes’ citation to Doctors Nursing and Rehabilitation Center, LLC v. Norwood, No. 1:16-cv-9837, 2017 WL 3838031 (N.D. Ill. Sept. 1, 2017), is similarly unpersuasive. There, the plaintiffs identified the defendant‘s “ongoing violations of the Medicaid Act” and requested enjoining the defendant‘s future conduct to comply with the Medicaid Act. Id. at *8. The district court awarded the requested relief because it was “sufficiently forward-looking” to fall within the Ex Parte Young exception. Id. The court did so after clearly recognizing, as we did in Kimble, that “the Eleventh Amendment does not permit a damages award against the state for [] past due payments” or allow the plaintiffs “to be reimbursed for past home or community-based services.” Id. (internal quotation marks omitted). Thus, Doctors Nursing and Rehabilitation Center, LLC stands for the same proposition as that in Kimble and prohibits an award of retrospective relief sought by the Nursing Homes.
In short, the Eleventh Amendment bars the Nursing Homes’ constitutional and Medicaid Act claims for damages or other relief based on past actions.
C.
Although the Nursing Homes’ claims for retrospective relief fail, they contend their claims for injunctive and declaratory relief—declaring that the Secretaries’ administration of the Medicaid program violates federal law, requiring them to approve the Residents’ Medicaid applications based on their current status, and mandating the Secretaries to pay future Medicaid benefits—remain because the Nursing Homes request prospective relief. These claims could survive an Eleventh Amendment challenge and fall within the Ex Parte Young exception only if the relief sought is prospective in nature. See Allen, 134 F.3d at 627.
The Supreme Court has explained that injunctive relief requiring a state official “to conform his future conduct of that office to the requirement of the Fourteenth Amendment” is prospective in nature. Edelman, 415 U.S. at 664 (emphasis added). Accordingly, this Court has held an injunction “mandating that in the future, State officials bring the [State‘s] Medicaid program into compliance with the Medicaid Act” is prospective in nature. Antrican, 290 F.3d at 186. But it is unnecessary for us to decide if the declaratory and injunctive relief sought by the Nursing Homes is prospective relief falling within the Ex Parte Young exception. Even if we assume, without deciding, that the requested relief is sufficiently prospective in nature, we lack subject matter jurisdiction to consider the Nursing Homes’ claims.
We agree with the district court that the Nursing Homes’ claims for
Here, the Residents on whose behalf the Nursing Homes are suing the Secretaries “lack a legally cognizable interest in the outcome.” Powell, 395 U.S. at 496. Neither the Deceased nor the Living Residents could enjoy prospective injunctive or declaratory relief. As to the Deceased Residents, “it is axiomatic” that “a deceased litigant” cannot enjoy prospective injunctive relief. Brown v. Town of Cary, 706 F.3d 294, 299 (4th Cir. 2013), abrogated on other grounds by Reed v. Town of Gilbert, Ariz., 135 S. Ct. 2218 (2015). Maryland law also prohibits a deceased Medicaid recipient from collecting Medicaid benefits. See
III.
A.
The district court dismissed the Nursing Homes’ ADA and Rehabilitation Act claims when it denied their Rule 59 motion on two separate grounds. First, the district court concluded that the Nursing Homes lacked standing to bring either claim on behalf of the Residents because the Nursing Homes were not the real party in interest. Second, the court held that the Nursing Homes failed to state plausible ADA and Rehabilitation Act claims under Rule 12(b)(6). On appeal, the Nursing Homes do not challenge the district court‘s dismissal based on their lack of standing, thus waiving our review of the standing issue. See Tucker v. Waddell, 83 F.3d 688, 690 n.1. (4th Cir. 1996) (deeming an issue not raised on appeal “to have been abandoned” because the appellant “did not address it in any way in her appellate briefs or at oral argument“). Because the Nursing Homes do not challenge the district court‘s standing holding, we affirm the district court‘s dismissal of the ADA and Rehabilitation Act claims.
B.
Nonetheless, even if we assume the Nursing Homes had standing, the district court correctly dismissed their ADA and Rehabilitation Act claims under
To survive a
C.
Title II of the ADA and Section 504 of the Rehabilitation Act prohibit discrimination against an individual because of his or her disability.
“Claims under the ADA‘s Title II and the Rehabilitation Act can be combined for analytical purposes because the analysis is substantially the same.” Seremeth v. Bd. of Cty. Comm‘rs Frederick Cty., 673 F.3d 333, 336 n.1. (4th Cir. 2012) (internal quotation marks omitted). To establish a violation of either statute, plaintiffs must prove “(1) they have a disability; (2) they are otherwise qualified to receive the benefits of a public service, program, or activity; and (3) they were denied the benefits of such service, program, or activity, or otherwise discriminated against, on the basis of their disability.” Nat‘l Fed‘n of the Blind v. Lamone, 813 F.3d 494, 503 (4th Cir. 2016).
The ADA‘s Title II and the Rehabilitation Act “differ only with respect to the third element, causation.” Halpern v. Wake Forest Univ. Health Scis., 669 F.3d 454, 461 (4th Cir. 2012). “To succeed on a claim under the Rehabilitation Act, the plaintiff must establish he was excluded ‘solely by reason of’ his disability; the ADA requires only that the disability was ‘a motivating cause’ of the exclusion.” Id. at 461-62 (quoting Baird ex rel. Baird v. Rose, 192 F.3d 46, 468-69 (4th Cir. 1999)). Because the Rehabilitation Act imposes “a stricter causation requirement than the ADA,” we will analyze whether the Nursing Homes have alleged sufficient facts to state a plausible ADA claim. Thomas v. Salvation Army S. Territory, 841 F.3d 632, 641 (4th Cir. 2016). If that claim fails, the Rehabilitation Act claim must fail as well.
D.
We hold that the district court correctly dismissed the Nursing Homes’
The Nursing Homes failed to allege that the Residents are disabled within the meaning of the ADA, which defines disability as “a physical or mental impairment that substantially limits one or more major life activities,” “a record of such an impairment,” or “being regarded as having such an impairment.”
The Complaint, however, pleads only the vague generality that the Residents are “qualified individuals with a disability.” J.A. 15 ¶ 23. This conclusory phrase is the sum total of the Complaint‘s allegations addressing the elements of an ADA claim. The remainder of the Complaint fails to provide any additional allegations as to how or why the Residents are disabled or meet the statutory requirements for disability. For example, the Nursing Homes expressly disavow any argument that the Residents are disabled because they are in nursing facilities: “[We] are not arguing or suggesting that there is any presumption that individuals who receive long-term care nursing facility services are disabled under the definition of the ADA[.]” Opening Br. 22 (emphases added). The Complaint thus fails, on its face, to plead the necessary and basic elements of an ADA claim.
Further, the Nursing Homes also failed to plead that any Resident‘s alleged disability motivated the Secretaries to deny Medicaid benefits. In fact, the Living Residents are currently receiving Medicaid benefits. As to the Deceased Residents, the Complaint makes clear that they were denied Medicaid benefits not because of animus motivated by their alleged disability, but because of the Secretaries’ alleged deficient administration.
Because the Nursing Homes failed to state a viable ADA claim, they failed to state a cognizable Rehabilitation Act claim. See Thomas, 841 F.3d at 641. The district court‘s decision to dismiss the ADA and Rehabilitation Act claims is therefore affirmed.
IV.
For the foregoing reasons, the district court‘s judgments dismissing the Nursing Homes’ Complaint and denying the motion to alter or amend judgment are
AFFIRMED.
AGEE
CIRCUIT JUDGE
