Beverly K. Barton v. Paul G. Summers, Harshell C. Downs, Jr. Kathleen D. Downs v. Commonwealth of Kentucky

293 F.3d 944
CourtCourt of Appeals for the Sixth Circuit
DecidedAugust 9, 2002
Docket00-5942, 00-6282
StatusPublished
Cited by62 cases

This text of 293 F.3d 944 (Beverly K. Barton v. Paul G. Summers, Harshell C. Downs, Jr. Kathleen D. Downs v. Commonwealth of Kentucky) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beverly K. Barton v. Paul G. Summers, Harshell C. Downs, Jr. Kathleen D. Downs v. Commonwealth of Kentucky, 293 F.3d 944 (6th Cir. 2002).

Opinions

OPINION

BOGGS, Circuit Judge.

Plaintiffs-appellants, Medicaid recipients with tobacco-related illnesses, appeal the dismissal of their actions seeking injunctions against two states, Kentucky and Tennessee (the States). Plaintiffs seek to intercept tobacco settlement money due to the States under the Master Settlement Agreement between a number of settling states and tobacco manufacturers. We affirm the dismissal of Plaintiffs’ claims, because actions seeking money damages from a state contravene the Eleventh Amendment of the United States Constitution. We also hold that Plaintiffs’ suits fail because, they have not. asserted a valid claim.

I

Plaintiffs seek to represent Kentucky and Tennessee Medicaid recipients with tobacco-related illnesses, for whom the States paid medical bills. Under the November 1998 Tobacco Master Settlement Agreement (MSA) between 45 states and many tobacco manufacturers, both Kentucky and Tennessee will receive large payments in settlement of their claims. The monies to be paid were placed in escrow, pending the time that a specified percentage of the signatory states achieved “finality” under the terms of the agreement. Now that finality has been achieved, payments are being made from escrow to the States.

In order to implement the national settlement, the M.S.A. required states that did not have a pending lawsuit to institute proceedings in the appropriate state courts. Both of the States filed, and then settled, their MSA-required suits. Plaintiffs, claiming that the States’ recoveries were in the form of subrogation actions (ie., that the States were actually suing on Plaintiffs’ behalf), have brought this 42 U.S.C. § 1983 action. Plaintiffs claim that federal law entitles them to any excess money the States will receive over the actual state outlay for Plaintiffs’ treatment. Plaintiffs also argue that because they have sued state officials in their official capacities, their action is not barred by state sovereign immunity.

This suit is part of a nationwide series of suits in which Medicaid recipients are seeking to recoup “overage” amounts from a number of settling states. All but one of the Medicaid recipient suits, including the two instant cases, have been dismissed for failure to state a claim upon which relief could be granted or for Eleventh Amendment immunity. See Strawser v. Atkins, 290 F.3d 720, (4th Cir.2002), 2002 U.S.App. LEXIS 9648; Greenless v. Almond, 277 F.3d 601 (1st Cir.2002); Harris v. Owens, 264 F.3d 1282 (10th Cir.2001); Watson v. Texas, 261 F.3d 436 (5th Cir.2001); McClendon v. Georgia Dep’t of Cmty. Health, 261 F.3d 1252 (11th Cir.2001); Tyler v. Douglas, 280 F.3d 116 (2d Cir.2001); Floyd v. Thompson, 227 F.3d 1029 (7th Cir.2000); Lewis v. State ex rel. Miller, 2002 WL 663711 (Iowa Ct.App.2002), 2002 Iowa App. LEXIS 436; Cardenas v. Anzai, 128 F.Supp.2d 704 (2001); Clark v. Stovall, 158 F.Supp.2d 1215 (D.C.Kan.2001); Skillings v. Illinois, 121 F.Supp.2d 1235 (C.D.Ill.2000); Martin v. New Mexico, 197 F.R.D. 694 (D.N.M.2000); Brown v. State, 617 N.W.2d 421 (Minn.Ct.App.2000); State v. Superior Court, 83 Cal. App.4th 597, 99 Cal.Rptr.2d 735 (2000); Oliva v. Florida, No. 99-2234 (Leon Co. Cir. Ct., 2d Cir. May 12, 2000); Gomer v. [948]*948Philip Morris Inc., 106 F.Supp.2d 1262 (M.D.Ala.2000) (Eleventh Amendment immunity and no valid claim). In one case, the -state’s motions to dismiss have been denied. Lewis v. Iowa, No. LACV 037031 (Linn Co. D. Ct. July 21, 2000).

II

A. The Eleventh Amendment Bars Suits Seeking to Intercept Future Payments to the States.

This case poses the question of whether Plaintiffs can escape the Eleventh Amendment bar blocking suits for money damages against the states by phrasing their requests for monetary relief as requests for future payments. We hold that they cannot.

Whether an action is barred by the Eleventh Amendment is a question of law, and is reviewed de novo. Timmer v. Michigan Dep’t of Commerce, 104 F.3d 833, 836 (6th Cir.1997). The Eleventh Amendment provides:

The Judicial Power of the United States shall not be construed to extend to 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.

U.S. Const, amend. XI. Although the amendment does not address the possibility of suit against a state by one of its own citizens, unassailable case law has interpreted the amendment in such a way as to close that gap. Hans v. Louisiana, 134 U.S. 1, 10 S.Ct. 504, 33 L.Ed. 842 (1890). A state is sovereign within the structure of the federal system, and “it is inherent in the nature of sovereignty not to be amenable to the suit of an individual without its consent.” Seminole Tribe of Fla. v. Florida, 517 U.S. 44, 54, 116 S.Ct. 1114, 134 L.Ed.2d 252 (1996).

States are, therefore, immune from private suit in both federal and state courts. There are three generally recognized exceptions to this rule. First, a state may consent to suit. Alden v. Maine, 527 U.S. 706, 119 S.Ct. 2240, 144 L.Ed.2d 636 (1999). The States have not consented to this suit. Second, Congress may, pursuant to its powers under the Fourteenth Amendment, abrogate the state’s immunity. Seminole Tribe, 517 U.S. at 72-73, 116 S.Ct. 1114. Congress has provided in 42 U.S.C. § 1396b(d) a scheme for allowing the federal government to recoup its share of third-party recoveries (and expressly noted that this right does not apply to the tobacco settlement money), but has not made any provision, based on the Fourteenth Amendment, for suits against states by Medicaid recipients.

The third exception is the one at issue here. Ex Parte Young, 209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714 (1908), holds that the Eleventh Amendment does not bar a federal court from issuing an injunction ordering prospective relief against a state official in order to prevent future constitutional violations. Id. at 159-60, 28 S.Ct. 441. However, it is “well established that even though a State is not named as a party to the action, the suit may nonetheless be barred by the Eleventh Amendment.” Edelman v. Jordan, 415 U.S. 651, 663, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974).

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293 F.3d 944, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beverly-k-barton-v-paul-g-summers-harshell-c-downs-jr-kathleen-d-ca6-2002.