Abrams v. Division of Unemployment Insurance

CourtDistrict Court, D. Colorado
DecidedSeptember 2, 2025
Docket1:24-cv-03390
StatusUnknown

This text of Abrams v. Division of Unemployment Insurance (Abrams v. Division of Unemployment Insurance) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abrams v. Division of Unemployment Insurance, (D. Colo. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLORADO Judge Regina M. Rodriguez Civil Action No. 24-cv-03390-RMR JOSHUA ABRAMS; Plaintiff, v. DIVISION OF UNEMPLOYMENT INSURANCE, JOE BARELA, JEFF FITZGERALD, JOHN AND JANE DOE(S), Defendants. ORDER This matter is before the Court on Plaintiff’s Emergency Injunction, ECF No. 8, State Defendants’ Motion to Dismiss Amended Complaint [ECF 7, 7-2], ECF No. 33, Plaintiff’s Motion for Time Extension, Electronic Service, Appointing Council, & Denial of Pending Dismissal, ECF No. 35, Plaintiff’s Second Emergency Motion for Injunctive Relief Regarding Unpaid 2023 Benefits, ECF No. 37, Plaintiff’s Notice of Request for Emergency Status conference, ECF No. 44, Plaintiff’s Notice of Non-Response and Request for Ruling, ECF No. 45, and Plaintiff’s Motion to Leave to Supplement Complaint, ECF No.

49. The Court finds that oral argument would not materially assist in the resolution of these matters. For the reasons stated below, the Court GRANTS State Defendants’ Motions to Dismiss for lack of jurisdiction and failure to state a claim, and dismisses Plaintiff’s claims, some with and some without prejudice. The Court also DENIES Plaintiff’s requests for injunctive relief. Given the Court’s determination that dismissal is warranted, Plaintiff’s remaining motions are DENIED as MOOT. I. BACKGROUND Plaintiff, who appears pro se, filed this action on December 6, 2024 but his claims have evolved over time. Still, the crux of the issue appears to be his frustration, on behalf of himself and others similarly situated, with the Colorado Department of Labor and Employment’s (“CDLE”) Division of Unemployment Insurance’s (the “Division”) processing of unemployment benefits. Specifically, Plaintiff believes he is owed $6,000 in outstanding benefits from an unemployment claim in 2023. See ECF No. 37 at 1. While

the Court is sympathetic to Plaintiff’s complaints about the Division’s bureaucratic procedures, the Court also recognizes the Division is trying to balance the needs of deserving claimants with the public interest of thwarting fraudulent claims. The Court cannot grant Plaintiff the relief he seeks. To understand why, it is helpful to go through the history of Plaintiff’s unemployment claims and the procedural history of this matter. On March 5, 2023, Plaintiff filed a claim for unemployment benefits. ECF No. 32-3 at 3. On March 30, 2023, Plaintiff attempted to withdraw the claim. Id. Plaintiff claims that he was forced to withdraw his application because his out-of-state wages from North Carolina were not being applied. ECF No. 37 at 15. On April 5, 2023, Plaintiff received a letter from the Division stating that his “request to cancel [his] valid initial claim [was]

denied [because he] failed to make [the] request within twelve calendar days of the date on which [his] claim was filed.” ECF No. 37 at 16. The letter informed Plaintiff on how to appeal the determination. Id. According to the Division, Plaintiff appealed the decision to a hearing officer, and the hearing officer affirmed the Division’s decision. ECF No. 32-3 at 3. Plaintiff appealed the hearing officer’s decision to the Industrial Claims Appeals Office (“ICAO”), and a panel of the ICAO affirmed the hearing officer’s decision. Id. Plaintiff was notified of his right to appeal the ICAO panel’s decision to the Colorado Court of Appeals, but he did not exercise his right to do so. Id. at 3-4 Plaintiff received benefit payments from March 2023 to mid-June 2023. Id. at 4. Twice in June 2023, the Division placed an “integrity hold” on Plaintiff’s claim. Id. The Division uses integrity holds to try and detect fraud and prevent payment of fraudulent

claims. Id. at 2. If an integrity hold is placed on a claim, the Division notifies the claimant and gives them seven days to respond. Id. On June 23, 2023, the first integrity hold was placed on Plaintiff’s account. Id. at 3. Plaintiff provided the requested information that same day, and the hold was released on June 27, 2023. Id. On June 26, 2023, the Division placed a second hold on Plaintiff’s account. Id. Plaintiff failed to provide the requested information, and his benefit payments ceased. Id. Plaintiff started reporting income again in the third quarter of 2023. Id. He continued reporting income until January 2025. Id. On February 2, 2025, Plaintiff filed a second claim for benefits, perhaps not realizing that the integrity hold from June 2023 was still in place. See id at 5. On March

15, 2025, Plaintiff provided the Division with the requested information, and the integrity hold was cleared on March 17, 2025. Id. On March 20, 2025, Plaintiff began receiving benefits dating back to February 8, 2025. Id. Plaintiff first filed this action on December 6, 2024, naming the Division as the sole defendant. ECF No. 1. The Court noted an Eleventh Amendment immunity jurisdictional bar and directed the Plaintiff to file an amended complaint addressing the jurisdictional deficiency. ECF No. 4. On February 7, 2025, Plaintiff filed his Amended Complaint, this time including state officials, Joe Barela, Jeff Fitzgerald,1 and John & Jane Doe(s), as defendants to the action in addition to the Division. ECF No. 7. In his 39-page Amended Complaint, Plaintiff asserts eight claims for relief: 1) a violation of right to petition (First Amendment); 2) violation of due process (Fourteenth Amendment); 3) violation of the American’s with Disabilities Act (“ADA”); 4) violation of unenumerated rights (Ninth

Amendment); 5) violation of state sovereignty principles (Tenth Amendment); 6) state law claim of negligence; 7) state law claim of intentional and/or negligent infliction of emotional distress; 8) violation of the Colorado Administrative Procedure Act (“APA”). ECF No. 7, 7- 2. Plaintiff appears to be attempting to pursue claims under 42 U.S.C. § 1983, which “provides a federal cause of action against any person who, acting under color of state law, deprives another of his federal rights.” Conn v. Gabbert, 526 U.S. 286, 290 (1999). Plaintiff alleges he was denied unemployment insurance benefits to which he is entitled under state and federal law, pursuant to defective state administrative procedures, in violation of his Fourteenth Amendment due process rights. ECF No. 7 at 5. He further claims that the Defendant discriminated against him on the basis of a disability, in violation

1 Jeff Fitzgerald is no longer an employee with CDLE. He has not been properly served as an individual in this matter. ECF No. 32 at 1 n.1. of Title II of the ADA, 42 U.S.C. § 12131, et seq. Id. Plaintiff seeks monetary relief, as well as specified declaratory and injunctive relief. ECF No. 7-2 at 27-29. On February 26, 2025, after he had filed his second claim for unemployment benefits on February 2, 2025, and before the integrity hold was lifted on March 17, 2025, Plaintiff filed an Emergency Injunction seeking a Court order requiring, among other relief, the Division: • establish a “fully operational telephone service with sufficient staffing to allow claimants to inquire about their claims, with average hold times not exceeding thirty (30) minutes”;

• “[i]mplement a callback or appointment scheduling system . . . ensuring claimants can schedule a call with an agent within two (2) business days of their request”; • “provide a secure online messaging system within the unemployment portal, enabling claimants to submit inquiries and receive written responses from an agent within three (3) business days”; and • “offer alternative communication methods []for claimants with hearing, speech, or other disabilities.” ECF No. 8.

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Abrams v. Division of Unemployment Insurance, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abrams-v-division-of-unemployment-insurance-cod-2025.