Community Legal Services in East Palo Alto v. United States Department of Health and Human S

137 F.4th 932
Court of Appeals for the Ninth Circuit·Decided May 14, 2025·No. 25-2808·Published·Cited by 2 cases

Opinion

FOR PUBLICATION FILED UNITED STATES COURT OF APPEALS MAY 14 2025 MOLLY C. DWYER, CLERK

U.S. COURT OF APPEALS

FOR THE NINTH CIRCUIT

COMMUNITY LEGAL SERVICES IN No. 25-2808 EAST PALO ALTO; SOCIAL JUSTICE D.C. No. COLLABORATIVE; AMICA CENTER 3:25-cv-02847-AMO FOR IMMIGRANT RIGHTS; ESTRELLA DEL PASO; FLORENCE IMMIGRANT AND REFUGEE RIGHTS PROJECT; GALVESTON-HOUSTON IMMIGRANT ORDER REPRESENTATION PROJECT; IMMIGRANT DEFENDERS LAW CENTER; NATIONAL IMMIGRANT JUSTICE CENTER; NORTHWEST IMMIGRANT RIGHTS PROJECT; ROCKY MOUNTAIN IMMIGRANT ADVOCACY NETWORK; VERMONT ASYLUM ASSISTANCE PROJECT,

Plaintiffs - Appellees, v.

UNITED STATES DEPARTMENT OF HEALTH AND HUMAN SERVICES; UNITED STATES DEPARTMENT OF THE INTERIOR; OFFICE OF REFUGEE RESETTLEMENT,

Defendants - Appellants.

Appeal from the United States District Court for the Northern District of California Araceli Martinez-Olguin, District Judge, Presiding

Before: William A. Fletcher, Consuelo M. Callahan, and Lucy H. Koh, Circuit Judges.

Order by Judge Koh

Dissent by Judge Callahan

KOH, Circuit Judge:

To protect unaccompanied children in immigration proceedings from the risks of “mistreatment, exploitation, and trafficking,” the Trafficking Victims Protection Reauthorization Act of 2008 (“TVPRA”), 8 U.S.C. § 1232, directs that the Department of Health and Human Services (“HHS”) “shall ensure, to the greatest extent practicable,” that unaccompanied children in immigration custody receive legal representation. Id. § 1232(c)(5). To carry out this obligation, the Office of Refugee Resettlement (“ORR”) promulgated the “Foundational Rule” which states that “ORR shall fund legal service providers to provide direct immigration legal representation for certain unaccompanied children, subject to ORR’s discretion and available appropriations.” 45 C.F.R. § 410.1309(a)(4). Since 2012, and as recently as March 15, 2025, Congress has consistently appropriated funds to ensure compliance with the TVPRA’s statutory mandate. See Full-Year Continuing Appropriations and Extensions Act, 2025, Pub. L. No. 119-4, Div. A Tit. I Sec. 1101(8), 139 Stat. 9, 11 (2025); Further Consolidated Appropriations Act, 2024, Pub. L. 118-47, Div. D Tit. I, 138 Stat. 460, 664–665 (2024); Consolidated Appropriations Act, 2012, Pub. L. 112-74, Div. F, Tit. II, 125 Stat.

786, 1077 (2011); S. Rep. 118-84, at 169. In this matter, the district court preliminarily enjoined Defendants HHS, ORR and the Department of the Interior (“DOI”) (collectively, the “Government”) from withdrawing government-provided funding for counsel to represent unaccompanied children in immigration proceedings. The Government appealed the issuance of the preliminary injunction and now moves to stay the injunction while this appeal is pending.

When deciding a motion for a stay pending appeal, the court considers “(1) whether the stay applicant has made a strong showing that he is likely to succeed on the merits; (2) whether the applicant will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies.” Nken v. Holder, 556 U.S. 418, 434 (2009) (quoting Hilton v. Braunskill, 481 U.S. 770, 776 (1987)). “The first two factors . . . are the most critical,” and the court will address the last two factors only once the applicant has satisfied the first two factors. Id. at 434–35. “The party requesting a stay bears the burden of showing that the circumstances justify” issuance of the stay. Id. at 433–34.

We conclude the Government has shown neither a likelihood of success on the merits nor irreparable injury absent a stay and accordingly deny the

Government’s motion.1 I.

The Government offers two reasons why it believes it is likely to succeed on the merits. First, the Government argues the Tucker Act, 28 U.S.C. § 1491, “impliedly forbids” plaintiffs’ Administrative Procedure Act (“APA”) claims and thus the district court lacked jurisdiction. Second, the Government argues that its decision to completely defund direct legal services for unaccompanied children constitutes an unreviewable exercise of agency discretion. As explained below, the Government has not made “a strong showing that [it] is likely to succeed on the merits” of either argument. Nken, 556 U.S. at 434 (quoting Hilton, 481 U.S. at 776).

A.

The APA “embodies [a] basic presumption of judicial review to one ‘suffering legal wrong because of agency action.’” Abbott Lab’ys v. Gardner, 387 U.S. 136, 140–41 (1967) (quoting 5 U.S.C. § 702). The APA generally waives sovereign immunity and permits a challenge to agency action unless “any other statute that grants consent to suit expressly or impliedly forbids the relief which is

1 Because the Government failed to satisfy the first two stay factors, we need not reach the two remaining stay factors. See Nken, 556 U.S. at 434–35.

sought.” 5 U.S.C. § 702.2 The Government argues that the Tucker Act “impliedly forbids” plaintiffs’ suit because plaintiffs’ claims sound in contract and accordingly can only be brought in the Court of Federal Claims (if at all). This argument is unlikely to succeed for two reasons.

First, contrary to the Government’s argument, plaintiffs’ APA claims are based on the Government’s statutory and regulatory violations, not any government contract. In fact, no contract exists between plaintiffs and the Government. Instead, the Government has entered into a nationwide agreement with an organization called Acacia, who in turn subcontracts with legal service providers such as plaintiffs.

“[T]he Tucker Act . . . ‘impliedly forbid[s]’ an APA action seeking injunctive and declaratory relief only if that action is a ‘disguised’ breach-of- contract claim.” United Aeronautical Corp. v. U.S. Air Force, 80 F.4th 1017, 1026 (9th Cir. 2023) (quoting Megapulse, Inc. v. Lewis, 672 F.2d 959, 968 (D.C. Cir. 1982)). In making this determination, we “look[] to (1) ‘the source of the rights upon which the plaintiff bases its claims’ and (2) ‘the type of relief sought (or appropriate).’” Id. (quoting Doe v. Tenet, 329 F.3d 1135, 1141 (9th Cir. 2003)).

2 The APA also does not apply to suits that either (a) seek “money damages,”

5 U.S.C. § 702; or (b) where “other adequate remed[ies]” to review the agency action exist, id. § 704. On appeal, the Government does not argue that either of these limitations on APA review apply here.

“If rights and remedies are statutorily or constitutionally based, then district courts have jurisdiction; if rights and remedies are contractually based then only the Court of Federal Claims does . . . .” Id. (emphasis in original); see also Ferreiro v. United States, 501 F.3d 1349, 1353 n.3 (Fed. Cir. 2007) (“An order compelling the government to follow its regulations is equitable in nature and is beyond the jurisdiction of the Court of Federal Claims.”).

Here, plaintiffs seek to enforce compliance with statutes and regulations, not any government contract. The TVPRA provides that the Government “shall ensure, to the greatest extent practicable . . . that all unaccompanied alien children . . . have counsel to represent them in legal proceedings or matters and protect them from mistreatment, exploitation, and trafficking.” 8 U.S.C. § 1232(c)(5) (emphasis added). The Foundational Rule states that “ORR shall fund legal service providers to provide direct immigration legal representation for certain unaccompanied children, subject to ORR’s discretion and available appropriations.” 45 C.F.R. § 410.1309(a)(4) (emphasis added). Seeking to ensure compliance with statutory and regulatory commands is a matter beyond the scope of the Tucker Act’s exclusive jurisdiction.

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

Community Legal Services in East Palo Alto v. United States Department of Health and Human S, 137 F.4th 932 (9th Cir. 2025).

137 F.4th 932 (Community Legal Services in East Palo Alto v. United States Department of Health and Human S) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related