Kriegbaum v. Katz

909 F.2d 70, 1990 WL 100352
CourtCourt of Appeals for the Second Circuit
DecidedJuly 16, 1990
DocketNo. 812, Docket 89-7537
StatusPublished
Cited by9 cases

This text of 909 F.2d 70 (Kriegbaum v. Katz) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kriegbaum v. Katz, 909 F.2d 70, 1990 WL 100352 (2d Cir. 1990).

Opinion

KEENAN, District Judge:

This appeal of a federal question case requires us to decide what measures New York State may employ to secure the use of an individual’s social security benefits to defray the cost of the individual’s institutional care after commitment pursuant to a finding that the individual was not guilty of charged crimes because of mental illness. The issues arise on defendants’ appeal from the April 28, 1989, order of the District Court for the Western District of New York (Elfvin, J.), granting summary judgment in plaintiffs’ favor enjoining defendants from taking any steps to reach plaintiffs’ social security benefits to satisfy the costs of their institutionalization. Defendants also appeal from a supplemental judgment, entered August 9, 1989, to the extent it reaffirmed the April 28 judgment and granted plaintiffs-appellees leave to apply for an award of attorney’s fees and costs. For the reasons developed below, we affirm in part and reverse in part.

BACKGROUND

The facts are undisputed. Plaintiffs’ wards Robert Kriegbaum and Leo Faulkner were involuntarily committed in 1976 and 1980, respectively, to the custody of the Commissioner of the New York State Office of Mental Health (“OMH”) after being found “not responsible by reason of mental disease or defect” for crimes charged in Supreme Court, Erie County. N.Y.Crim.Proc. Law § 330.20 (McKinney 1983 and Supp.1990). Pursuant to Article 77 of the New York Mental Hygiene Law (McKinney 1988), each of the wards has a conservator who manages the ward’s affairs. Robert Kriegbaum’s brother, Raymond, serves as his conservator and Walter Sendziak, an attorney, is Leo Faulkner’s conservator.

Robert Kriegbaum and Leo Faulkner each receive monthly social security disability payments, which are administered by their respective wards as representative payees. By 1988, Robert Kriegbaum, who has received monthly payments since 1968, had amassed $48,776.33 from disability payments and interest on savings and certificates of deposit. Raymond Kriegbaum maintains that since 1980, he has “spent many thousands of dollars of [Robert’s] funds ... on his behalf for such items as clothing, life insurance, snacks, cigarettes, presents for the family for Christmas, Easter, birthday gifts for our mother,” and various other expenses not discharged by the state. (Tr. 77).

Although it is unclear precisely how much money Leo Faulkner has accumulated from social security payments, Sendziak reported that in 1986, $18,114.86 was available in Faulkner’s disability payments account. Like Raymond Kriegbaum, Sendz-iak readily acknowledges that he applies an [72]*72appreciable amount of his ward’s disability payments to a “luxury fund,” which provides Leo Faulkner with money “for clothing and other necessaries of life.” (Tr. 85-86). Appellees urge that these expenditures are important because they lend a semblance of normal life to committed individuals.

Prior to 1985, New York State exempted all patients held pursuant to a criminal court order from paying the costs of their care in State mental health facilities. In 1985, however, the New York legislature amended § 43.03(c) of the Mental Hygiene Law to require those committed under N.Y. Crim.Proc. Law § 330.20(7) (“insanity ac-quitees”) to pay the costs of their institutional care.1

Relying on this amendment to § 43.03, the OMH sent Raymond Kriegbaum and Walter Sendziak notices of charges for the institutional care of their conservatees since August 2, 1985 (the effective date of the amendment). The Kriegbaum invoice sought payment of $22,529.44 for services rendered through December 31, 1985. The OMH billed Sendziak $29,853.94 for the expenses of care incurred through September 23, 1987. (Tr. 88-89). Both conservators refused to pay. Other than repeated billings, the OMH has taken no additional action with respect to the Kriegbaum invoice. As to Sendziak, however, the New York State Attorney General’s Office commenced a special proceeding in New York State Supreme Court, Erie County, to secure payment for OMH’s services through Faulkner’s social security benefits and to discharge Sendziak as Faulkner’s conservator. That proceeding has been stayed pending resolution of this action.

In April 1988, appellees filed their amended complaint seeking injunctive relief and attorney’s fees. The amended complaint alleged under 42 U.S.C. § 1983 (1982) that Mental Hyg. Law § 43.03(c) deprived appellees of their property without due process of law in violation of the fourteenth amendment. Appellees also urged that § 43.03(c) ran afoul of the Supremacy Clause,2 since it conflicted with § 207 of the Social Security Act, 42 U.S.C. § 407(a) (1982 and Supp. V, 1987).

The District Court addressed these contentions on cross-motions for summary judgment.3 In an opinion dated April 26, 1989, the Court held that although enforcement of § 43.03(c) by attempting to recoup money from the ward’s social security benefits did not per se violate the due process clause, its application to plaintiffs was unconstitutional. Without distinguishing between the measures employed by OMH to reach each ward’s disability benefits, Judge Elfvin ruled that § 43.03(c) could not be reconciled with 42 U.S.C. § 407(a) and therefore was unconstitutional under the Supremacy Clause. He then dismissed the amended complaint as to Steven E. Katz, M.D. because the amended complaint sought only equitable relief with respect to the operation of a state statute, relief which Dr. Katz was powerless to provide.4 In a footnote, the Court declined to construe plaintiffs’ prayer for relief as embracing liability for attorney’s fees in connection with their request for injunctive [73]*73relief under § 1983. The District Court judgment was entered on April 28, 1990.

On May 3, 1989 plaintiffs moved pursuant to Fed.R.Civ.P. 59 to amend the District Court’s judgment to reflect that the relief granted had a jurisdictional base in 42 U.S.C. § 1983, thereby enabling plaintiffs to move for an award of attorney’s fees and costs under 42 U.S.C. § 1988 (1982). In a second opinion, dated August 1, 1989, the District Court amended its April 26 decision to permit plaintiffs to seek attorney’s fees and costs under § 1988 because they had attained relief sought under § 1983. (Joint Appendix 119-20). The instant appeal followed.

On appeal, defendants argue that the broad compass of the District Court’s decision improperly curtails OMH’s ability to ensure that conservators perform their statutory and regulatory duties. They submit that the District Court has effectively prohibited OMH from applying the social security benefits of insanity acquittees to defray the costs of institutional care under any circumstances.

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Kriegbaum v. Katz
909 F.2d 70 (Second Circuit, 1990)

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Bluebook (online)
909 F.2d 70, 1990 WL 100352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kriegbaum-v-katz-ca2-1990.