Colson v. Sillman

35 F.3d 106
Court of Appeals for the Second Circuit·Decided September 15, 1994·No. No. 1370, Docket 93-7623·Published·Cited by 9 cases

Opinion

WINTER, Circuit Judge:

Officials of the New York State Department of Health appeal from Judge Arcara’s order granting partial summary judgment to appellees Colson, Battaglia, White, and others similarly situated (“applicants”). See Colson ex rel. Colson v. Sillman, 852 F.Supp. 1183 (W.D.N.Y.1992). Summary judgment was granted on their claim under 42 U.S.C. § 1983 that New York’s Public Health Law, N.Y.Pub.Health L. § 2582 (McKinney 1993), creates a “claim of entitlement” triggering procedural due. process protection in the handling of claims by the Erie County Physically Handicapped Children’s Program (“PHCP”). Officials of Erie County’s Department of Health and PHCP (“County”) do not appeal from the district court’s order. Because New York law does not create an entitlement on behalf of the applicants running against the State, we vacate the district court’s order to the extent that it contemplates such an entitlement.

BACKGROUND

Applicants are (or were) physically handicapped residents of Erie County under the age of twenty-one who participate in the County’s PHCP. The children, in question suffer from a range of serious physical ailments that necessitate various forms of special equipment and medical attention. Although a class has not been certified, the parties have stipulated that any judgment in this action will be binding with regard to similarly situated applicants.

Title V of Article 25 of New York’s Public Health Law, N.Y.Pub.Health L. §§ 2580-84 (McKinney 1993), sets out the State’s role in the treatment and rehabilitation of children with physical disabilities. Such children are defined in the statute as “any persons under twenty-one years of age who are disabled by reason of a defect or disability, whether congenital or acquired ... or who are suffering from long-term disease ... or from any disease or condition likely to result in a disability in the absence of treatment....” Id. § 2581(1). The “medical service” that these children receive encompasses “such diagnostic, therapeutic, and rehabilitative care by [108] medical and paramedical personnel, including hospital and related care, and drags, prostheses, appliances, equipment and devices as necessary.” Id. § 2581(2).

In order to qualify for the provision of medical services by a PHCP, an applicant must satisfy designated criteria as to family income as well as the requirements set out in Sections 2581(1) and 2583(2). The Medical Director of a PHCP, a county official, then determines whether to grant the applicant’s request for medical services. Section 2582(2) both authorizes the appropriate county official to approve medical services and specifies that “the expenses thereof, when approved by such [county health official] and duly audited, shall be a charge upon the county.” For medical services that qualify under the State’s guidelines, N.Y.Comp.Codes R. & Regs. tit. 10, § 46, the State will reimburse the county for one-half of those expenses. N.Y.Pub.Health L. § 608 (McKinney 1990).1

Applicants brought suit under 42 U.S.C. § 1983 claiming that the County and State had violated their rights to procedural due process in the administration of the Erie County PHCP by failing to provide both timely written notice of the outcome of their applications and an administrative appeals procedure. Applicants moved for, and the district court granted, summary judgment. The district court based its decision on its finding that the PHCP administrators’ lack of discretion in dispensing benefits established a “claim of entitlement,” Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972), sufficient to impose full federal due process responsibilities on the Erie County PHCP. The district court directed the parties to submit a joint proposal detailing procedures that comported with due process. 852 F.Supp. at 1193. All parties entered into a stipulation settling the matter, although the state reserved the right to bring the present appeal. The district court approved this proposal and incorporated it in a final judgment. Implementation of the order against the State was stayed pending the determination of this appeal.

DISCUSSION

The County does not contest the district court’s conclusion that a “claim of entitlement” runs against it. The disputed issue in this appeal, therefore, is whether applicants have a “claim of entitlement” against the State to the benefits for which they applied.

As the Supreme Court stated in Roth, 408 U.S. at 577, 92 S.Ct. at 2709, to hold a legally cognizable property-type interest in a government benefit, an applicant “must have more than a unilateral expectation of it. He must, instead, have a legitimate claim of entitlement to it.” An “entitlement” is not a constitutional right, but is derived from “an independent source such as state law.” Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532, 538, 105 S.Ct. 1487, 1491, 84 L.Ed.2d 494 (1985) (quoting Roth, 408 U.S. at 577, 92 S.Ct. at 2709). The property interest is not “limited by a few rigid, technical forms” but may derive from “existing rules” or “mutually explicit understandings.” Perry v. Sindermann, 408 U.S. 593, 601, 92 S.Ct. 2694, 2699, 33 L.Ed.2d 570 (1972). Whether the benefit invests the applicant with a “claim of entitlement” or merely a “unilateral expectation” is determined by the amount of discretion the disbursing agency retains. Plaza Health Labs. v. Perales, 878 F.2d 577, 581 (2d Cir.1989) (“[T]he existence of provisions that retain for the state significant discretionary authority over the bestowal or continuation of a government benefit suggests that the recipients of such [109] benefits have no entitlement to them.”)- The question of entitlement thus hinges on whether “absent the alleged denial of due process, there is either a certainty or a very strong likelihood that the application would have been granted.” Yale Auto Parts v. Johnson, 758 F.2d 54, 59 (2d Cir.1985).

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Colson v. Sillman
35 F.3d 106 (Second Circuit, 1994)