Hatten-Gonzales v. Hyde

579 F.3d 1159, 2009 U.S. App. LEXIS 19538, 2009 WL 2713193
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 31, 2009
Docket08-2009
StatusPublished
Cited by14 cases

This text of 579 F.3d 1159 (Hatten-Gonzales v. Hyde) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hatten-Gonzales v. Hyde, 579 F.3d 1159, 2009 U.S. App. LEXIS 19538, 2009 WL 2713193 (10th Cir. 2009).

Opinion

LUCERO, Circuit Judge.

Entangled in the present litigation for more than twenty years, the New Mexico Human Services Department (“HSD”) seeks review of two interlocutory orders of the district court. HSD and a plaintiff class headed by Debra Hatten-Gonzales have been operating under a Modified Settlement Agreement (“MSA”) approved by the district court in 1998. Although it restrained the parties from violating the MSA, the district court has not entered a final judgment, and the case remains on its active docket.

In 2005, the parties’ then-dormant dispute once again erupted. HSD sought to end plaintiffs’ periodic review of its files, ongoing for a dozen years, and have the case dismissed. Plaintiffs sought enforcement of the MSA, alleging that HSD had breached several of its provisions. From this bevy of motions, HSD asks us to review two orders. The first denied its motion to dismiss. The second, entered while the first was already on appeal, granted plaintiffs’ motion to enforce compliance with the MSA. We address both appeals in this opinion.

Although the parties contend that we possess jurisdiction to review both orders pursuant to 28 U.S.C. § 1292(a)(1), we disagree. As to the first, HSD’s motion to dismiss did not seek to dissolve an injunction, and thus, the court’s order was not one refusing to dissolve an injunction. The second order merely interpreted an existing injunction, thus it does not fall within the strictures of § 1292(a)(1). Accordingly, we dismiss HSD’s appeals for want of jurisdiction.

I

A

In 1988, Hatten-Gonzales filed suit against the Secretary of HSD. Her complaint alleged that HSD violated various federal laws in determining applicants’ eligibility for food stamps, Aid to Families with Dependent Children (“AFDC”), and Medicaid. She sought to represent a class of all New Mexico residents who have applied, are applying, or will apply for food stamps, AFDC, or Medicaid benefits, and requested an injunction prohibiting HSD from engaging in the complained-of practices.

Following class certification, the parties reached a settlement agreement, and on August 29, 1990, the district court approved it. In its order, the court “restrained [the parties] from violating the terms, conditions and undertakings of the Settlement Agreement.” It also “retain[ed] jurisdiction over this matter to enforce the terms, conditions and undertakings of the Settlement Agreement.”

Under the agreement, HSD was required to take various steps to revise its benefits application system. Several provisions govern plaintiffs’ role in monitoring compliance with the settlement agreement:

To the extent that any term of this Agreement is prospective in nature, HSD agrees to continue to meet and to confer with counsel for the applicants regarding the progress made towards implementation of this Agreement’s terms until each such term is finally implemented. The parties agree to make good faith efforts to resolve any *1163 differences that may arise in the course of rendering this Agreement operational....
... Once the terms of this Agreement have become fully operational and permanently incorporated into HSD’s administration of the AFDC, Food Stamp and Medicaid programs, the [plaintiffs] will seek dismissal of these actions, with prejudice regarding only such issues actually resolved in this Agreement, from the Court. Dismissal will be requested in strict accordance with the timetables set forth in Section IV ([Plaintiffs’] Review of Implementation Procedures) of this Agreement.

Section IV, in turn, states:

The parties agree that [plaintiffs] are entitled to review the implementation of this Agreement to determine if its terms, conditions and undertakings are implemented in a timely and correct fashion....
1. The review of implementation procedures will commence six months after this agreement is approved by the Court and will be completed by the end of the second annual quarter following full implementation of the terms, conditions and undertakings of this Agreement, subject to the timetable regarding Section II of this Agreement set forth in the following paragraph. Within 30 days of completion of the review of implementation procedures, the applicants will request from the Court dismissal with prejudice of all such issues actually resolved by this Agreement.

The reference to “Section II” concerns a December 31, 1990 deadline for HSD to complete certain reforms to its application processing practices. The “following paragraph” reference is to Section IV.2, which permitted plaintiffs’ counsel to review a set of 40 case files in March of 1991 to determine whether HSD was complying with the agreed-upon reforms. “If HSD is fully complying with those terms, conditions and undertakings,” the agreement states, “plaintiffs will, within 30 days, request from the Court dismissal with prejudice.” If HSD was not complying, plaintiffs’ counsel could review 40 additional case files in June 1991. “Full compliance” and “full implementation” are defined in the agreement synonymously as “HSD has completed, enacted and is operating pursuant to all the terms, conditions and undertaking of [the] Agreement.”

At the parties’ request, the settlement agreement was twice modified. In 1992, the court entered an order: (1) extending deadlines contained in Section II; (2) imposing a schedule for developing a computerized tracking system; and (3) rescheduling the ease-file review discussed in Section IV.2 for January 1993. It appears that two file reviews occurred in 1993, but the record does not indicate whether plaintiffs deemed HSD in full compliance at that time. In any event, plaintiffs did not move to dismiss as contemplated by Section IV. 1.

In 1998, after the AFDC program was replaced with Temporary Assistance to Needy Families (“TANF”), the parties submitted the MSA for court approval. The above-quoted monitoring provisions remained unchanged, with the exception of a deleted reference to AFDC. On August 27,1998, the court entered an “Order Modifying Settlement Agreement.” As with the initial settlement agreement, the court “restrained [the parties] from violating the terms, conditions and undertakings of the Modified Settlement Agreement,” and it retained jurisdiction to enforce it.

The next day, the court entered judgment dismissing the case without prejudice but “retaining] complete jurisdiction to vacate this judgment and to reopen the action upon cause shown that the terms of *1164 the settlement agreement have been breached and further litigation is necessary.” Shortly thereafter, however, the court set aside that judgment and restored the case to its active docket after plaintiffs’ counsel expressed unease with dismissal.

B

Between 1990 and 2005, plaintiffs’ counsel conducted various monitoring activities and periodically moved for attorneys’ fees related to their monitoring efforts. Many of these requests were unopposed. In 1997, plaintiffs filed a motion seeking to enforce certain provisions of the settlement agreement and the order accepting it.

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Bluebook (online)
579 F.3d 1159, 2009 U.S. App. LEXIS 19538, 2009 WL 2713193, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hatten-gonzales-v-hyde-ca10-2009.