Gonzales Ex Rel. Estate of Bourgeois v. Garner Food Services, Inc.

89 F.3d 1523
Court of Appeals for the Eleventh Circuit·Decided August 2, 1996·No. 95-8533·Published·Cited by 1 cases

Opinions

BLACK, Circuit Judge:

Appellant August Gonzales filed this action under Title I of the Americans With Disabilities Act of 1990 (ADA),1 alleging that Defendants discriminated against a former employee, Timothy Bourgeois, by imposing a cap for AIDS-related treatment on health insurance benefit coverage Bourgeois elected to continue following his termination. The district court granted a motion to dismiss jointly filed by Gamer Fast Foods, Inc. (GFF) and Garner Food Services, Inc. (GFS). Thereafter, Appellant dismissed claims against all Defendants other than GFF and moved for reconsideration of the order of dismissal. This motion was denied, and Appellant appeals. We affirm.

I. BACKGROUND2

Bourgeois was employed at a Hardee’s restaurant, owned and, operated by GFS. GFS sponsored and administered a group welfare benefit plan which provided health insurance coverage up to a $1 million lifetime limit. Bourgeois participated in the health insurance benefit plan through his employment.

Bourgeois was diagnosed with AIDS in February 1991, and GFS learned of his condition when he submitted health insurance claims for medical treatment. GFS discharged him in April 1991 to avoid paying future health insurance claims. Following his termination, Bourgeois paid the necessary premiums to continue his health insurance benefit coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA).3

At least partly because of Bourgeois’ continued participation in the health insurance benefit plan after his discharge, GFS amended the plan on October 1, 1991, to cap AIDS-related treatment to $10,000 annually with a lifetime maximum limit of $40,000. GFS ceased operations on March 31, 1992. Thereafter, GFF continued GFS’ operations, and became the sponsor of Bourgeois’ plan.4 [1525] Before he died on September 6, 1992, Bourgeois had exhausted the benefits available to him under the AIDS cap limit and was denied payment for claims submitted in excess, totaling approximately $90,000.

II. STANDARD OF REVIEW

The district court’s denial of Appellant’s motion for reconsideration is reviewed for abuse of discretion. See Region 8 Forest Serv. Timber Purchasers Council v. Alcock, 993 F.2d 800, 806 (11th Cir.1993), cert. denied, 510 U.S. 1040, 114 S.Ct. 683, 126 L.Ed.2d 651 (1994). Since our review requires us to focus on conclusions of law made by the district court in granting the motion to dismiss, we review these questions of law de novo. See O’Reilly v. Ceuleers, 912 F.2d 1383, 1385 (11th Cir.1990).

III. DISCUSSION

The ADA was enacted on July 26, 1990, but did not become effective until July 26, 1992.5 Pub.L. No. 101-336, § 108, 104 Stat. 327, 337 (1990). Title I of the ADA addresses disability discrimination by employers.6 As applied to private employers, Title I is not retroactive. See O’Bryant v. City of Midland, 9 F.3d 421, 422 (5th Cir.1993); see also 1990 U.S.C.C.A.N. 601 (statement by President George Bush upon signing S. 933). Against this background, courts have concluded that Title I apples only to wrongful acts committed after the effective date of the ADA. See, e.g., O’Bryant, 9 F.3d at 422. Since the AIDS cap was implemented in October 1991, prior to the effective date of the ADA, GFF argues from the outset that Appellant’s claim is barred.

Appellant counters that his claim is actionable on the basis that the AIDS cap “endured” after the effective date of the ADA, thereby making GFF’s refusal to pay health benefits from then until Bourgeois’ death a continuing violation of the Act. In determining whether maintenance of the AIDS cap after July 26, 1992, constituted a continuing violation of the ADA, this Court must distinguish between the present consequences of a one-time violation, which would not qualify as a continuing violation, and the continuation of the violation into the present, which would. See Beavers v. American Cast Iron Pipe Co., 975 F.2d 792, 796 (11th Cir.1992). As did the district court, we will assume for purposes of our analysis that the denial of AIDS-related health care benefits after the effective date of the ADA could constitute a continuing violation of the Act. See Bazemore v. Friday, 478 U.S. 385, 395, 106 S.Ct. 3000, 3006, 92 L.Ed.2d 315 (1986) (“A pattern or practice that would have constituted a violation of Title VII, but for the fact that the statute had not yet become effective, became a violation upon Title VU’s effective date.”); Beavers, 975 F.2d at 797-98 (holding that the continued maintenance of a pre-Title VII discriminatory benefits policy is actionable after the effective date of Title VII as a continuing violation of the statute).

GFF argues that even if maintaining the AIDS cap beyond the effective date of the ADA could constitute a continuing violation, Appellant fails to state a prima facie ease of discrimination under Title I of the Act. The Title I general rule states: “No covered entity shall discriminate against a qualified individual with a disability because of the disability of such individual in regard to job application procedures, the hiring, advancement, or discharge of employees, employee compensation, job training, and other terms, conditions, and privileges of employment.” 42 U.S.C. § 12112(a) (emphasis supplied). A “qualified individual with a disability” (QID) [1526] is defined as “an individual with a disability who, with or without reasonable accommodation, can perform the essential functions of the employment position that such individual ■ holds or desires.7 Id. § 12111(8) (emphasis supplied).

The parties do not dispute that AIDS is a disability recognized under the ADA.8 It is further undisputed that fringe benefits, such as employer-provided health benefits, are one set of the “terms, conditions, and privileges of employment” protected from unlawful discrimination under the ADA.9 Thus, Appellant reasons, once Bourgeois took advantage of the opportunity to participate in the group health insurance plan, he was entitled to be provided with health insurance in a nondiscriminatory manner.

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Gonzales Ex Rel. Estate of Bourgeois v. Garner Food Services, Inc., 89 F.3d 1523 (11th Cir. 1996).

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Gonzales v. Garner Food Services, Inc.
89 F.3d 1523 (Eleventh Circuit, 1996)