Chavous v. District of Columbia Financial Responsibility & Management Assistance Authority

154 F. Supp. 2d 40, 2001 U.S. Dist. LEXIS 11220, 2001 WL 877318
District Court, District of Columbia·Decided August 3, 2001·No. CIV. A. 01-921(RWR)·Published·Cited by 2 cases

Opinion

MEMORANDUM OPINION

ROBERTS, District Judge.

Plaintiffs Kevin P. Chavous, David A. Catania and the Committee of Interns and Residents 1 filed this action seeking to declare void and to enjoin the implementation of the contract between defendants District of Columbia Financial Responsibility and Management Assistance Authority (the “Control Board” or “Authority”) and Greater Southeast Community Hospital Corporation I (“GSE” or “Greater Southeast”) to transfer the majority of the services provided by the public D.C. General Hospital over to the privately-run GSE. The plaintiffs have moved for summary judgment arguing that the Control Board’s actions were ultra vires, violated the Councilmembers’ constitutional right to cast unimpeded votes on issues of public importance, and violated the separation of powers doctrine. 2 Defendants Control Board and Greater Southeast 3 have moved to dismiss the complaint arguing that none of the plaintiffs have standing to bring this action, but even if they do, the plaintiffs have failed to state a claim upon which relief can be granted. Because plaintiffs Chavous and Catania have standing to bring this action, the defendants’ motion to dismiss for lack of subject matter jurisdiction as to those plaintiffs’ claims will be denied. However, because the Committee of Interns and Residents *43 does not have standing to bring this case, the motion to dismiss this plaintiffs claims foy lack of subject matter jurisdiction will be granted. The Control Board’s and Greater Southeast’s motions to dismiss the ultra vires claim will be treated as motions for summary judgment since they presented matters outside of the pleadings. Those motions will be granted since the Control Board, as a matter of law, acted within its authority. Further, these defendants’ motions to dismiss the constitutional claims will be granted because neither argument states a valid legal claim. Correspondingly, the plaintiffs’ motion for summary judgment will be denied. Finally, the District of Columbia’s motion to dismiss the complaint against it also will be granted because the plaintiffs have alleged no cognizable claim against the District.

BACKGROUND

As part of the fiscal year 2001 appropriation for the District of Columbia, Congress allocated $90,000,000 “for the purpose of restructuring the delivery of health services in the District of Columbia.” District of Columbia Appropriations Act, 2001, Pub.L. No. 106-522, 114 Stat. 2440, 2452 (2000). In addition, Congress directed that a restructuring plan be prepared and “approved by the Mayor of the District of Columbia, the [D.C. Council], the [Control Board], the [Chief Financial Officer of the District], and the Chair of the Board of Directors of the [Public Benefit Corporation].” 4 Id. at 2456. After receiving this direction from Congress, the Control Board issued its “Resolution, Recommendations and Orders Concerning the Public Benefit Corporation.” (See First Amended Complaint (“Compl.”) ¶ 16.) In it, the Control Board recommended, in relevant part, that the D.C. Council repeal the act which established the PBC and work with the Mayor to “prepare and approve a plan to establish an alternative publicly-financed health care delivery system.” (See Compl. Ex. A.) The Control Board also stated that if the recommendations were not approved within ninety days, the Control Board would implement the recommendation itself. (Id.) The Council received the resolution on December 6, 2000. This resolution also contained orders to the Mayor, the Director of the D.C. Department of Health, and the Chief Financial Officer of the District. (Id.)

On December 15, 2000, the Control Board issued a Request for Proposal (“RFP”) which sought to “obtain the services of one qualified health care provider or team of qualified health care providers ... to provide comprehensive, integrated and coordinated health care services to the uninsured population of the District of Columbia.” (See Pl.Ex. B.) Greater Southeast submitted a proposal on January 30, 2001 (see Compl. ¶ 20), which the Control Board ultimately accepted.

On March 6, 2001, the D.C. Council passed a unanimous resolution rejecting the Control Board’s recommendations, citing a concern for the impact that a contract with Greater Southeast would have on healthcare in the District of Columbia. (Id. ¶ 23.) In an effort to shore up D.C. General’s short-term financial future, the Council approved an additional $21 million dollars to fund the PBC through the end of the fiscal year. (Id. If 24.) Despite the Council’s objection to the GSE proposal which would result in the privatization of healthcare for uninsured residents in the *44 city, and the Council’s subsequent rejection of the contract with GSE, the Control Board signed the contract with GSE. (See id. ¶¶ 28-29.) On April 30, 2001, the Control Board issued a series of Acts (“the Privatization Acts”) which, among other things, abolished the PBC. (See Pl.Ex. 10.) Plaintiffs brought this action claiming, among other things, that the Control Board acted outside of the authority granted by the District of Columbia Financial Responsibility and Management Assistance Act of 1995, Pub.L. No. 104-8 (1995) (“FRMAA” or “the Act”) when it signed this contract and abolished the PBC. (See Compl. ¶¶ 33-49.)

DISCUSSION

I. Standing

The Control Board and GSE have moved under Fed.R.Civ.P. 12(b)(1) to dismiss the amended complaint for lack of subject matter jurisdiction, arguing that the plaintiffs lack standing. (See District of Columbia Financial Responsibility and Management Assistance Authority’s Motion to Dismiss (“Mot. to Dism.”) at 2-7.) In order to invoke properly the authority of the federal courts, a party must demonstrate that he or she has a “case” or “controversy” sufficient to meet the requirements of Article III. See Lujan v. Defenders of Wildlife, 504 U.S. 555, 560, 112 S.Ct. 2130, 119 L.Ed.2d 351.(1992); see also Allen v. Wright, 468 U.S. 737, 750, 104 S.Ct. 3315, 82 L.Ed.2d 556 (1984) (“The case-or-controversy doctrines state fundamental limits on federal judicial power in our system of government.”); Warth v. Seldin, 422 U.S. 490, 498, 95 S.Ct. 2197, 45 L.Ed.2d 343 (1975) (“In essence the question of standing is whether the litigant is entitled to have the court decide the merits of the dispute or of particular issues.”)

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Chavous v. District of Columbia Financial Responsibility & Management Assistance Authority, 154 F. Supp. 2d 40, 2001 U.S. Dist. LEXIS 11220, 2001 WL 877318 (D.D.C. 2001).

154 F. Supp. 2d 40 (Chavous v. District of Columbia Financial Responsibility & Management Assistance Authority) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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