CALIFORNIA STATE FOSTER PARENT ASS'N v. Wagner

620 F.3d 1115
Court of Appeals for the Ninth Circuit·Decided October 27, 2010·No. 09-15025·Published·Cited by 1 cases

Opinion

624 F.3d 974 (2010)

CALIFORNIA STATE FOSTER PARENT ASSOCIATION; California State Care Providers Association; Legal Advocates for Permanent Parenting, Plaintiffs-Appellees,
v.
John WAGNER, Director of the California Department of Social Services, in his official capacity; Mary Ault, Deputy Director of the Children and Family Services Division of the California Department of Social Services, in her official capacity, Defendants-Appellants.

No. 09-15025.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted December 7, 2009.
Submission Vacated December 8, 2009.
Resubmitted for Decision August 23, 2010.
Filed August 30, 2010.
Amended October 27, 2010.

*975 Richard S. Ballinger, Palo Alto, CA, for plaintiffs-appellees California State Foster Parent Association, et al.

Susan M. Carson, San Francisco, CA, for defendants-appellants John Wagner, et al.

Before: MARY M. SCHROEDER and CONSUELO M. CALLAHAN, Circuit Judges, and CARLOS F. LUCERO,[*] Circuit Judge.

ORDER

The Opinion filed August 30, 2010, slip op. 13015, and appearing at 620 F.3d 1115, is amended as follows:

1. Page 13019 [620 F.3d at 1116] line 24: Replace the sentence have resolved the Foster Parents' challenge through mediation.> with
2. Page 13019 [620 F.3d at 1116] line 28: Delete the sentence
3. Page 13020 [620 F.3d at 1117] line 26: Replace the entire paragraph with Allenby II: the threshold question of whether the Foster Parents may maintain this action under § 1983. We are now therefore squarely faced with the issue of whether the CWA, at 42 U.S.C. §§ 672(a) and 675(4)(A), creates an enforceable federal right.>
4. Page 13030 [620 F.3d at 1122] line 10: Delete the sentence .
5. Page 13030, line 13: Add after .
6. Page 13030 [620 F.3d at 1122] line 14: Delete .
7. Page 13030 [620 F.3d at 1122] line 17: Delete .

Judges Schroeder and Lucero have voted to deny the petition for rehearing en banc, and Judge Callahan has voted to grant the petition for rehearing en banc.

The full court has been advised of the petition for rehearing en banc and no judge has requested a vote on whether to rehear the matter en banc. Fed. R.App. P. 35.

Defendants-Appellants' petition for rehearing en banc is denied.

No further filings will be accepted in this closed case.

SCHROEDER, Circuit Judge:

OPINION

The federal Child Welfare Act ("CWA" or "the Act") provides money to state governments to pay for children's foster care and adoption assistance programs. 42 U.S.C. § 670 et seq. The CWA spells out the specific foster care provider expenses that states' payments are supposed to cover. See 42 U.S.C. §§ 672(a) and 675(4)(A). The states then distribute the funds to the actual families and institutions that provide care.

In California, foster parents have become concerned because the State's payments are not covering their costs to the extent allegedly required under the federal law. Plaintiffs in this case are three associations representing individual foster parents in the State of California: the California State Foster Parent Association, the California State Care Providers Association, and Legal Advocates for Permanent Parenting (collectively, "Foster Parents"). They brought this suit against officials of the State of California ("the State") under 42 U.S.C. § 1983 claiming a violation of their federal right to payments under the CWA and seeking declaratory and injunctive relief. Foster Parents seek to compel *977 the State to revise its payment schedule upward in order to reflect Foster Parents' actual costs.

The State moved to dismiss on the ground that the CWA does not create rights enforceable under § 1983. The district court denied the motion and ultimately entered judgment in favor of Foster Parents, finding that the CWA created a federal monetary entitlement and that the State violated the Act by setting rates without considering the CWA's mandatory cost factors. Both sides appealed from the final order, with the State contesting the district court's finding of an enforceable federal right, and the Foster Parents challenging other aspects of the district court's summary judgment order. Foster Parents filed a motion to voluntarily dismiss their cross-appeal, which was granted by this Court on May 07, 2009. Before us now is only the State's appeal contending Foster Parents have no enforceable right to higher payments.

We recently decided California Alliance of Child and Family Services v. Allenby, 589 F.3d 1017 (9th Cir.2009) ("Allenby II"), a similar case brought by institutional providers of foster care. The district court in that case held that the CWA created a right enforceable under § 1983. California Alliance of Child and Family Servs. v. Allenby, 459 F.Supp.2d 919, 925 (N.D.Cal.2006) ("Allenby I"). The district court in this case relied heavily on the district court's opinion in Allenby I.

When Allenby I reached this court, however, the State had declined to appeal the issue of whether the CWA created a right enforceable under § 1983, and we therefore assumed, without deciding, that it did. Allenby II, 589 F.3d at 1020 n. 5. We went on to reach the merits of the institutional providers' claim and held that the State had failed to comply with the CWA's mandatory cost factors, because even though the State's original payment schedule in 1990 was based on the costs enumerated in the statute, the State had not complied with its own plan to adjust the payments for inflation. Id. at 1019-23.

The district court viewed these plaintiffs as having an even stronger case on the merits than the institutional providers in Allenby. On summary judgment, the district court found that the State failed to provide evidence that the payments to individual foster care providers were ever based on the CWA's itemized list of costs, and that Foster Parents had provided uncontroverted evidence that their rates had "fallen further out of line with the cost of providing the enumerated items than had the institutional rates" addressed in Allenby. The court ordered a remedy that would bring about "substantial compliance" with the federal statute.

We do not address the nature of the remedy here because the Foster Parents' appeal was voluntary dismissed. The parties agreed that the State's appeal would go forward to address the issue waived in Allenby II

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CALIFORNIA STATE FOSTER PARENT ASS'N v. Wagner, 620 F.3d 1115 (9th Cir. 2010).

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