Community Care Health Plan of Neb. v. Jackson

317 Neb. 141
CourtNebraska Supreme Court
DecidedJuly 19, 2024
DocketS-23-681
StatusPublished
Cited by2 cases

This text of 317 Neb. 141 (Community Care Health Plan of Neb. v. Jackson) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Community Care Health Plan of Neb. v. Jackson, 317 Neb. 141 (Neb. 2024).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 07/19/2024 09:09 AM CDT

- 141 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports COMMUNITY CARE HEALTH PLAN OF NEB. V. JACKSON Cite as 317 Neb. 141

Community Care Health Plan of Nebraska, Inc., doing business as Healthy Blue, a Nebraska domestic corporation, appellee, v. Jason Jackson, in his official capacity as director of the Nebraska Department of Administrative Services, et al., appellants. ___ N.W.3d ___

Filed July 19, 2024. No. S-23-681.

1. Summary Judgment: Appeal and Error. An appellate court reviews the district court’s grant of summary judgment de novo, viewing the record in the light most favorable to the nonmoving party and drawing all reasonable inferences in that party’s favor. 2. Summary Judgment: Final Orders: Legislature: Appeal and Error. The general rule is that an order denying summary judgment is not a final, appealable order. But the Legislature carved out a limited excep- tion to this general rule when it enacted Neb. Rev. Stat. § 25-1902(1)(d) (Cum. Supp. 2022) to create a new category of final orders for purposes of appeal. 3. Summary Judgment: Final Orders: Immunity. The plain text of Neb. Rev. Stat. § 25-1902(1)(d) (Cum. Supp. 2022) sets out two requirements which must be satisfied for an order to be final: (1) The order must deny a motion for summary judgment, and (2) the summary judgment motion must be based on either the assertion of sovereign immunity or the immunity of a government official. 4. ____: ____: ____. To satisfy the final order requirement under Neb. Rev. Stat. § 25-1902(1)(d) (Cum. Supp. 2022) based on the assertion of sovereign immunity, the motion for summary judgment must do more than merely reference sovereign immunity; the nature and substance of the motion must actually present a claim of sovereign immunity. 5. Immunity: Words and Phrases. “Sovereign immunity” is a legal term of art referring to the common-law doctrine of sovereign immunity. - 142 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports COMMUNITY CARE HEALTH PLAN OF NEB. V. JACKSON Cite as 317 Neb. 141

Under that doctrine, a state’s immunity from suit is recognized as a fun- damental aspect of sovereignty. 6. Actions: Public Officers and Employees: Immunity. An action against a public officer to obtain relief from an invalid act or from an abuse of authority by the officer or agent is not a suit against the State and is not prohibited by sovereign immunity.

Appeal from the District Court for Lancaster County, Andrew R. Jacobsen, Judge. Appeal dismissed. Michael T. Hilgers, Attorney General, Zachary A. Viglianco, Eric J. Hamilton, and John J. Schoettle for appellants. Andre R. Barry and Jessica K. Robinson, of Cline, Williams, Wright, Johnson & Oldfather, L.L.P., and James A. Washburn, William M. Droze, and Christopher R. Healy, of Troutman Pepper Hamilton Sanders, L.L.P., for appellee. Heavican, C.J., Cassel, Stacy, Funke, and Freudenberg, JJ. Funke, J. INTRODUCTION Neb. Rev. Stat. § 25-1902(1)(d) (Cum. Supp. 2022) provides that an order denying a motion for summary judgment is a final, appealable order when such motion is based on the assertion of sovereign immunity or the immunity of a gov- ernment official. This case raises the question of whether a motion for summary judgment alleging that a disappointed bidder lacks standing as a taxpayer to maintain a claim against public officers under the Uniform Declaratory Judgments Act (UDJA) 1 constitutes a motion for summary judgment based on the assertion of sovereign immunity. Because the public officers do not assign any error as to the district court’s rul- ing that the suit against them was not a suit against the State 1 Neb. Rev. Stat. §§ 25-21,149 to 25-21,164 (Reissue 2016). - 143 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports COMMUNITY CARE HEALTH PLAN OF NEB. V. JACKSON Cite as 317 Neb. 141

and, as such, was not barred by sovereign immunity, we find that it does not. Accordingly, we dismiss the appeal for lack of jurisdiction.

BACKGROUND Factual Background Community Care Health Plan of Nebraska, Inc., doing busi- ness as Healthy Blue (Healthy Blue), was one of five vendors that submitted proposals in response to a request for proposals to operate Nebraska’s Medicaid managed care program effec- tive January 1, 2024. The Nebraska Department of Health and Human Services (DHHS) selected three of the vendors to be awarded contracts. Healthy Blue was not among those selected. Healthy Blue filed a bid protest with DHHS alleging defects in the winning proposals and in DHHS’ evaluation of the pro- posals. The protest was denied. Healthy Blue requested recon- sideration. That request was also denied.

Healthy Blue’s Complaint Healthy Blue then filed suit in the district court for Lancaster County, Nebraska, against Jason Jackson, in his official capac- ity as director of the Department of Administrative Services; Dannette Smith, in her official capacity as chief executive offi- cer of DHHS; and the winning bidders. Hereinafter, we refer to Jackson and Smith collectively as the “State Officials.” Healthy Blue’s verified complaint and petition for writ of mandamus included multiple counts, only one of which is relevant to this appeal. In that count, Healthy Blue sought declaratory and injunctive relief under the UDJA as a tax- payer and as a “bidder entitled to an award of a contract under the terms of the [request for proposals].” Specifically, Healthy Blue sought a declaration that DHHS acted unlaw- fully in awarding the contracts. Healthy Blue also sought a declaration that the “Notice of Intent to Award” the contracts - 144 - Nebraska Supreme Court Advance Sheets 317 Nebraska Reports COMMUNITY CARE HEALTH PLAN OF NEB. V. JACKSON Cite as 317 Neb. 141

and any resulting contracts violate Nebraska law and would result in the illegal expenditure of state funds and harm to the public interest, as well as an order enjoining DHHS from “implementation activities” or performance of the contracts.

State Officials’ Motion to Dismiss The State Officials moved to dismiss Healthy Blue’s UDJA claim on the ground that Healthy Blue lacks standing to main- tain the claim as a taxpayer or as an “unsuccessful bidder.” The State Officials also raised other arguments, including, as relevant here, that Healthy Blue’s UDJA claim is barred by sovereign immunity. The State Officials acknowledged that sovereign immunity does not bar an action against a public officer to obtain relief from an invalid act or from an abuse of authority by an officer because a court regards public officers’ illegal or unauthorized acts as their own acts and not acts of the State. But the State Officials argued that Healthy Blue lacks standing under the UDJA to pursue such an official-capacity suit for the reasons stated. The district court overruled the State Officials’ motion. The district court agreed that unsuccessful bidders lack stand- ing except in “egregious cases” where the public interest is implicated. However, the district court declined to decide whether the public interest exception applies here. Instead, the district court found that Healthy Blue adequately pled taxpayer standing. In so finding, the district court rejected the State Officials’ argument that Griffith v. Nebraska Dept. of Corr. Servs.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

State ex rel. Seeman v. Lower Republican NRD
319 Neb. 681 (Nebraska Supreme Court, 2025)

Cite This Page — Counsel Stack

Bluebook (online)
317 Neb. 141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/community-care-health-plan-of-neb-v-jackson-neb-2024.