Brooks v. District of Columbia

District Court, District of Columbia·Decided December 3, 2024·No. Civil Action No. 2019-2065·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

HAZELL BROOKS, et al., Plaintiffs,

v. Case No. 19-cv-2065 (CRC)

DISTRICT OF COLUMBIA, Defendant.

MEMORANDUM OPINION

Plaintiffs, three blind vending-facility operators, renew their challenge to the District of Columbia’s administration of a federal program that gives preferences to visually impaired vendors. They concede that three of their claims are precluded under this Court’s decision in Brooks v. District of Columbia (“Brooks I”), 375 F. Supp. 3d 41 (D.D.C. 2019), aff’d sub nom. Patten v. District of Columbia, 9 F.4th 921 (D.C. Cir. 2021). That leaves only Plaintiff Derwin Patten’s claims challenging the District’s two purported delays in offering him a new vending- facility operating agreement. Because Patten failed to exhaust his administrative remedies and is precluded from arguing that exhaustion is not required, the Court will grant the District’s motion to dismiss his claims. I. Background The Court described much of the relevant background in Brooks I, so it provides only a summary of the relevant details here.

The Randolph-Sheppard Act (“RSA” or “Act”), 20 U.S.C. § 107(a), gives licensed blind persons priority to operate vending facilities located on federal property. Brooks I, 375 F. Supp. 3d at 43 (citing § 107(b)). It also entitles them to a percentage of all income generated by

vending machines located on that property, even if those machines are not operated by program participants. Id. (citing § 107d-3).

The Secretary of Education has designated the Department on Disability Services, Rehabilitation Services Administration (“DDS-RSA”) to administer the Act within the District of Columbia. Id. The agency manages day-to-day operations, including by licensing individual vendors, identifying locations for vending facilities, and monitoring compliance with the program’s rules and regulations. Id. at 43–44 (citing 20 U.S.C. § 107a(b)).

Under the Act’s administrative grievance procedure, a licensee “who is dissatisfied with any action arising from the operation or administration of the vending facility program” is entitled to a “full evidentiary hearing” by the state licensing agency (“SLA”). 20 U.S.C. § 107d- 1(a); see also id. § 107b(6) (requiring SLAs to provide “dissatisfied” licensees with “an opportunity for a fair hearing”); 34 C.F.R. § 395.13 (same). To implement these requirements, the District of Columbia provides for an “[i]nformal due process hearing before the D.C. Office of Administrative Hearings (OAH).” D.C. Mun. Reg. tit. 29, § 218.2(b)(3). An aggrieved licensee dissatisfied with the results of the OAH hearing “may appeal . . . either to the D.C. Court of Appeals . . . or to the United States Secretary of Education.” Id. § 218.2(c). If the licensee elects the latter route, the Secretary submits the complaint to an arbitration panel pursuant to 20 U.S.C. § 107d-1(a), whose decision is “final and binding” except as subject to judicial review under the Administrative Procedure Act. Id.; id. § 107d-2(a); 34 C.F.R. § 395.13(c). Exhaustion is mandatory before a licensee may seek judicial review in federal court. Brooks I, 375 F. Supp. 3d at 45.

Plaintiffs Hazell Brooks, Derwin Patten, and Roy Patten are current or past participants in the District of Columbia’s Randolph-Sheppard Vending Facilities Program (“RSVFP” or

“Program”). Id. at 44. In 2019, they brought claims under various antidiscrimination statutes challenging the District’s administration of the Program, including “discriminatory inspections of blind vendors’ facilities,” “failure to provide adequate auxiliary aids for blind vendors,” and “excessive or unauthorized deductions, set asides, and other such levies and expenses on vending machine” and “vending operations.” Id. The Court dismissed Plaintiffs’ claims because they failed to exhaust their administrative remedies. Id. at 49–50. The Court also denied Plaintiffs’ motion for reconsideration, declining to consider two “entirely new legal theories” they attempted to raise. Brooks I, Order, ECF No. 37 at 2 (cleaned up). Plaintiffs appealed to the D.C. Circuit. The D.C. Circuit affirmed the dismissal, agreeing that the RSA’s mandatory exhaustion provision covered Plaintiffs’ claims and that Plaintiffs had failed to exhaust their administrative remedies. Patten, 9 F.4th at 925–26.

Plaintiffs then filed a new complaint in July 2019. Counts 1–3 of the amended complaint raised three of the same claims brought in Brooks I. Am. Compl., ECF No. 1-3, at ¶¶ 7–22. Plaintiffs now framed those claims as retaliation against them for filing Brooks I, however, rather than as unlawful discrimination. Id.

Plaintiff Derwin Patten also brought additional claims. In Counts 4–6, Patten alleged as follows: From July 2017 through April 2018, he litigated a case OAH opposing the termination of his operating agreement to maintain his vending facility at the Defense Intelligence Agency (“DIA”). Am. Compl. ¶ 24. DDS-RSA ultimately terminated Patten’s operating agreement and shuttered his DIA facility in April 2018. Am. Compl. ¶ 28. Then, allegedly in retaliation for Patten’s involvement in Brooks I and his litigation before OAH, DDS-RSA “substantially delayed” the online courses that Patten needed to complete before obtaining a new operating agreement and vending facility. Id. ¶ 29(a). Patten further claimed DDS-RSA did not provide

him with a human reader or auxiliary aids to assist him in completing the required online coursework. Id. ¶ 30(b). He also alleged that even after he completed the online courses, DDS- RSA “engag[ed] in a prolonged and continuous course of conduct that delayed for about a year” the offer of a new operating agreement and vending facility, until March 2019. Id. ¶¶ 35(b), 36(d). As a result of this delay, Patten purportedly “lost substantial sums in profits, earnings or income from his Randolph-Sheppard vending operations after April 6, 2018.” Id. ¶ 39. Patten alleged that this retaliatory delay violated the Americans with Disabilities Act (“ADA”), the D.C. Human Rights Act, and the Rehabilitation Act of 1973. Id. ¶¶ 40(b), 42(a), 44(a).

In Counts 7–9, Patten alleged that DDS-RSA finally offered him a new operating agreement for a mini-mart vending facility at the Thomas P. O’Neill Jr. Federal Building in March 2019. Id. ¶ 47(a). Patten claims that he could “not see or read” the proposed agreement and did not understand its “legalese.” Id. ¶ 47(c). Nevertheless, he signed the agreement, though he claims that DDS-RSA did not inform him that the agreement “possibly waived, mooted, or compromised” his appeal in the OAH litigation. Id. ¶ 47(d). When Patten learned of the effects that signing the new operating agreement had on his OAH appeal, he “immediately repudiated” the agreement. Id. ¶ 49. Patten alleges that after his repudiation, DDS-RSA again delayed his acquisition of a new operating agreement so that he once again lost “substantial sums in profits, earnings or income.” Id. ¶¶ 51–52. Patten claims this second allegedly retaliatory delay also violated the ADA, the D.C. Human Rights Act, and the Rehabilitation Act. Id. ¶¶ 53, 55, 57.

The Court initially stayed proceedings pending the Court of Appeals’ resolution of Plaintiffs’ appeal in Brooks I. Then, after the Court of Appeals affirmed the dismissal in Brooks I, the District moved to dismiss all claims. Plaintiff Derwin Patten opposed. The Court will grant the motion to dismiss.

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