Dunn v. Sullivan

776 F. Supp. 882, 1991 U.S. Dist. LEXIS 15539, 1991 WL 224097
District Court, D. Delaware·Decided October 1, 1991·No. Civ. A. 90-124-CMW·Published·Cited by 1 cases

Opinion

OPINION

CALEB M. WRIGHT, Senior District Judge.

The Court, on February 6, 1991, denied Defendant’s motion to dismiss for lack of jurisdiction and for improper venue. On February 22, 1991, Defendant moved, pursuant to Rule 60(b)(6), for the Court to alter or amend the February 6, 1991 Order because, according to the Defendant, the challenged procedure has been revised and this action effectively disposed of all of the Plaintiffs’ claims. Also pending is Plaintiffs’ motion for class certification. These issues have been fully briefed and are [884] ready for decision. For the reasons stated below, the Court will grant Defendant’s motion to alter or amend the Court’s February 6, 1991 order and dismiss the action, rendering the class certification issue moot.

I. Background1

Plaintiffs, Terrance Dunn and Hilton Porter brought a class action2 seeking declaratory, injunctive and mandamus relief3 against the Secretary of Health and Human Services (“Secretary”). Specifically, the named Plaintiffs challenge the validity of the Secretary’s routine procedures for assessing whether Supplemental Social Security (“SSI”) benefits should be continued during a recipients hospitalization.

Procedures followed by the Secretary are found in the Program Operations Manual System, commonly referred to as POMS. Some background concerning the POMS in effect at the time this case was filed is necessary to understand the controversy and the effect of the change.

To continue receiving SSI benefits while hospitalized the POMS required two statements to be submitted by the tenth day of the month following the month of hospitalization. First, the SSI recipient had to file a Statement of Need. The purpose of the Statement of Need was to provide proof that the recipient needed funds to meet expenses of maintaining a residence to which the recipient might return following hospitalization. The POMS also required an attending physician to submit a statement that the institutionalization was not expected to be for more than three months.

Under the POMS then in place, an untimely submission by the physician could, under certain circumstances, be excused and SSI benefits continued. However, the POMS did not provide any “good cause exception” for the filing of the Statement of Need. Thus, if the Statement of Need was late, for whatever reason, the recipient would not be entitled to benefits during their hospitalization. It was this aspect of the POMS that the Plaintiffs challenge alleging the procedures violate 42 U.S.C. §§ 1382(e)(1)(G), 1382(e)(1)(H) and the Due Process Clause of the Fifth Amendment. Further, Plaintiffs contend that the Secretary violated the provisions of the Administrative Procedure Act by way of implementing binding POMS without publication, 5 U.S.C. § 701 et seq.; that the POMS are arbitrary, capricious and an abuse of discretion; and that the Secretary’s determinations were erroneous, contrary to law and not supported by substantial evidence.

The Defendant asserts that the procedures at issue here were altered after this action was commenced and the new procedures overcome the allegations of the plaintiffs. Although the POMS still require both a Statement of Need and a physicians statement to be submitted, the time frame has been changed. In order to qualify for continued benefits, the physicians statement and the Statement of Need now must be submitted on the basis of 90 day/day of discharge rule.

The 90 day/day of discharge rule allows the statement to be submitted 90 days after hospitalization or on the day of discharge whichever is earlier. Both statements are deemed complete upon actual receipt by the Social Security Administration or postmark by the relevant date.4 It is on this procedural background that the Court must decide this motion.

II. Discussion

The issues present are whether any case or controversy exists and whether the issue is ripe for review, thus permitting this [885] Court to exercise jurisdiction. Plaintiffs position is two-fold. First, plaintiffs contend that pursuant to the old procedure people were injured and that injury will not be redressed absent judicial intervention. (Plaintiffs’ Supplemental Brief in Opposition to Defendant’s Motion to Alter or Amend Order, Docket Item 33, p. 7). With respect to this, plaintiffs claim that the defendant’s readjudication of their claims does not disqualify them from being class representatives. (Id., at p. 8). Second, plaintiffs claim that even if the Secretary reevaluates all of the claims pursuant to the new policy, not all class members would have their injury redressed because no “good cause exception” exists. (Id., at p. 9).

The Defendant’s position is that the Secretary has ordered that all claimants who have been denied benefits since July 1988 for failure to timely file the Statement of Need be entitled to have their case reopened and readjudicated under the revised policy. Both named plaintiffs filed their Statement of Need within the time frame set by the new policy. Thus, the named Plaintiffs have had their eases reviewed and favorably decided for them under the new policy, the issue is no longer ripe for review and this Court should decline to issue an advisory opinion. Further, the Defendant contends that no one has been brought to their attention that would require a good cause extension from the new 90 day/day of discharge rule and, therefore, there is no live case before the Court.

Neither side appears to contest whether the named Plaintiffs claims have become moot through the action of the Defendant, the only question remains whether the case can proceed in light of the fact that named Plaintiffs injury has been satisfied.5 The Court views this question as requiring an inquiry into mootness and the ability of the named plaintiffs to represent the class with respect to both the old and the new policy.

“Simply stated a case is moot when the issues presented are no longer ‘live’ or the parties lack a legally cognizable interest in the outcome.” County of Los Angeles v. Davis, 440 U.S. 625, 631, 99 S.Ct. 1379, 1383, 59 L.Ed.2d 642 (1979) (quoting, Powell v. McCormack, 395 U.S. 486, 496, 89 S.Ct. 1944, 1951, 23 L.Ed.2d 491 (1969)). Thus, the action taken by the Secretary in changing the policy apparently moots the plaintiffs individual claims.

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Dunn v. Sullivan, 776 F. Supp. 882, 1991 U.S. Dist. LEXIS 15539, 1991 WL 224097 (D. Del. 1991).

776 F. Supp. 882 (Dunn v. Sullivan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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