Martin v. New Mexico

197 F.R.D. 694, 2000 U.S. Dist. LEXIS 19849, 2000 WL 1827352
CourtDistrict Court, D. New Mexico
DecidedNovember 9, 2000
DocketNo. CIV 00-0135 JC/WWD
StatusPublished
Cited by10 cases

This text of 197 F.R.D. 694 (Martin v. New Mexico) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martin v. New Mexico, 197 F.R.D. 694, 2000 U.S. Dist. LEXIS 19849, 2000 WL 1827352 (D.N.M. 2000).

Opinion

MEMORANDUM OPINION AND ORDER

CONWAY, District Judge.

THIS MATTER came on for consideration of Defendant State of New Mexico’s Motion to Dismiss, filed March 30, 2000 (Doc. 6). The Court has reviewed the motion, the memoranda and exhibits submitted by the parties, and the relevant authorities. The Court finds that the motion is well taken and will be granted.

I. Background

The plaintiffs, members of a putative class of New Mexico smokers who are Medicaid recipients that have been treated for smoking-related illnesses, bring this action for declaratory and injunctive relief against officers of the State of New Mexico. Plaintiffs seek a portion of New Mexico’s proceeds of the 1998 multi-state settlement with the tobacco companies.

Plaintiffs claim that under 42 U.S.C. § 1396a(a)(45) recipients of Medicaid have assigned their right to recover medical care expenses to the New Mexico Human Services Department, the state administering agency of Medicaid. Therefore, Plaintiffs argue that New Mexico was obligated to recover medical expenses for individual Medicaid recipients’ smoking-related problems when it settled with the tobacco companies. Furthermore, Plaintiffs argue that they cannot now seek their own recovery against the tobacco companies, because the settlement between the tobacco companies and the states, including New Mexico, released all of Plaintiffs’ potential claims. Plaintiffs claim that 42 U.S.C. § 1396k(b), which governs distribution of any monetary collection by a state from third parties for Medicaid expenses paid on behalf of individual Medicaid recipients of that state, requires that New Mexico pay Plaintiffs any amount over the actual cost to the state for its payment of Medicaid expenses. Therefore, Plaintiffs claim a portion of New Mexico’s tobacco settlement belongs to them by operation of federal Medicaid law, and by not distributing this claimed portion to Plaintiffs, Defendants are not compliant with federal law.

Defendants, officers of the New Mexico Human Services Department, raise several defenses in their Motion to Dismiss: (1) the Eleventh Amendment bars Plaintiffs’ suit in federal court, because Plaintiffs are suing the state, not individual officers, for damages; (2) this court should abstain from exercising jurisdiction in an ongoing state litigation under the Younger Abstention doctrine; and (3) Plaintiffs fail to state a claim for which relief can be granted. See Defendant State of New Mexico’s Motion to Dismiss, filed March 30, 2000 (Doc. 6).

II. Analysis

A. Eleventh Amendment

Eleventh Amendment jurisprudence establishes that “an unconsenting State is immune from suits brought in federal courts by her own citizens as well as citizens of another state.” Edelman v. Jordan, 415 U.S. 651, 663, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974). However, courts have recognized an exception to Eleventh Amendment immunity in three situations: (1) where the state has consented to suit; (2) where Congress has explicitly abrogated the state’s immunity; and (3) where Ex parte Young, 209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714 (1908), and its progeny are applicable. See MCI Telecommunications Corp. v. Public [696]*696Service Commission of Utah, 216 F.3d 929, 935 (10th Cir.2000). In this case, Plaintiffs argue that the Ex parte Young exception applies. See Plaintiffs’ Response to Motion to Dismiss, filed May 19, 2000 (Doc. 8).

Under Ex parte Young, the Eleventh Amendment does not bar a suit by a citizen against a state when the state is not the substantial party in interest. See Pennhurst State School & Hosp. v. Halderman, 465 U.S. 89, 101, 104 S.Ct. 900, 79 L.Ed.2d 67 (1984). A suit brought against state officials is in essence a suit against the state itself when the plaintiff seeks damages for past harm, which will inevitably be paid out of state funds. See Edelman, 415 U.S. at 666-67, 94 S.Ct. 1347. On the other hand, a state is not the substantial party in interest where suit is brought seeking an injunction against state officials to conform their official conduct in the future to the Constitution or federal law. See Idaho v. Coeur d’Alene Tribe of Idaho, 521 U.S. 261, 268-69, 117 S.Ct. 2028, 138 L.Ed.2d 438 (1997). Furthermore, such prospective injunctive relief is not barred by the Eleventh Amendment if the future consequences of the injunction required payment of money from the state’s treasury, so long as the payment has “an ancillary effect on the state treasury.” Edelman, 415 U.S. at 668, 94 S.Ct. 1347. In most cases in which Ex parte Young has applied, the primary relief ordered by the court has been injunctive, requiring future compliance by state officials with the Constitution or federal law. See, e.g., Papasan v. Allain, 478 U.S. 265, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986)(holding that Ex parte Young permitted injunctive relief in equal protection challenge to state’s distribution of public school land funds, because the expenditure of state funds that might accompany the injunction did not amount to an award for monetary liability); Edelman v. Jordan, 415 U.S. 651, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974) (holding that where class of aid recipients sued state officials for violation of federal law governing aid program, Ex parte Young applied to allow injunctive relief requiring future compliance with laws governing program, but did not allow an award of retroactive benefits).

By framing the relief sought as an “accounting” against the state and a “declaration of rights” under the tobacco settlement, Plaintiffs attempt to take advantage of the Ex parte Young exception to Eleventh Amendment immunity by artfully pleading injunctive rather than damages relief. See Plaintiffs’ Response to Motion to Dismiss, filed May 19, 2000 (Doc. 8). Plaintiffs argue that their suit simply seeks to compel officials of the New Mexico Human Services Department to comply with federal law by distributing the funds of the tobacco settlement, which will be paid to New Mexico in future installments, according to 42 U.S.C. § 1396k(b). Id. In effect, Plaintiffs claim they are intercepting the tobacco settlement installments before they reach the state, and therefore Plaintiffs are not seeking damages paid out of state-owned funds. Id.

The Court finds that Plaintiffs’ argument is not well taken.

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Bluebook (online)
197 F.R.D. 694, 2000 U.S. Dist. LEXIS 19849, 2000 WL 1827352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-v-new-mexico-nmd-2000.