Mosley v. Hairston

920 F.2d 409, 1990 WL 191277
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 4, 1990
DocketNos. 89-3473, 89-3475
StatusPublished
Cited by54 cases

This text of 920 F.2d 409 (Mosley v. Hairston) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mosley v. Hairston, 920 F.2d 409, 1990 WL 191277 (6th Cir. 1990).

Opinion

LIVELY, Senior Circuit Judge.

These consolidated appeals present two issues related to the liability of federal and state officials for the payment of “pass-through” or “disregard” payments under the Aid to Families with Dependant Children (AFDC) program.

I.

The AFDC program is a joint federal-state undertaking. It is contained in Title IV-A of the Social Security Act, 42 U.S.C. § 601 et seq. Title IV-D of the Act, 42 U.S.C. § 651 et seq., contains the Child Support Enforcement Program, which is designed to promote the fiscal responsibility of absent parents of AFDC dependents. Under this program, added as part of the Deficit Reduction Act of 1984, AFDC applicants and recipients must assign to the state all rights to support that the applicant or recipient may have from any other person. As an incentive to encourage cooperation with the program, the statute in effect during the period encompassing the plaintiffs claim provided that the first $50 of each monthly support payment “collected periodically” be paid to the benefit-receiving family “without affecting its eligibility for assistance or decreasing any amount otherwise payable as assistance to such family during such month.” 42 U.S.C. § 657(b)(1) (1988). In addition, 42 U.S.C. § 602(a)(8)(A)(vi) directed state agencies to disregard such payments in determining need. Thus, the first $50 was “passed through” by the collecting state to the recipient, and was “disregarded” in determining the family's entitlement to benefits and in calculating the amount of benefits payable for that month.

The Ohio Department of Human Services has delegated responsibility for the enforcement program to the county agency. Pursuant to parallel regulations of the Secretary of the U.S. Department of Health and Human Services and the State of Ohio, passthrough payments were limited to $50 for the month in which they were received by a county agency. See C.F.R. § 302.51(b)(1) (1984) and Ohio Administrative Code § 5101:1-23-221(A) (1987). The federal regulation provided that:

[i]f the amount collected includes payment on the required support obligation for a previous month or months, the family shall only receive the first $50 of the amount which represents the required support obligation for the month in which the support was collected.... No payment shall be made to a family under this paragraph for a month in which there is no support collection.

The date of collection was defined as “the date on which the payment is received by the IV-D agency.” 45 C.F.R. § 302.51(a). Thus, if a support-obligor made a timely payment to the county agency but that agency did not receive the payment in the month when it was due to the support-obli-gee because of delays in transmittal, the payment was treated as untimely and no money was passed through to the AFDC recipient.

II.

A.

The plaintiff, Phyllis Mosley, is the mother of five minor children who live with her, and is a participant, in the AFDC program. Her former husband, Sonny Hibbard, is the father of two of her five children. Following their divorce Hibbard was ordered by the court to pay $130 per month for support of his two children. This obligation is met by Hibbard’s employer deducting the court-ordered amount from Hibbard’s [412]*412wages each month. Under applicable regulations the employer is required to remit the deducted wages to the child support enforcement agency of Hamilton County, Ohio within 10 days of the deduction.

Although Hibbard’s employer has made periodic deductions, it did not always remit the withheld wages to the county agency during the month of the deduction. In some months the full amount deducted was remitted, but in other months only partial amounts were remitted, and for seven months the employer remitted nothing. By September 1986 Hibbard’s support account with the county agency was $770 in arrears. Payments through May 1988 were never sufficient in any given month to make Hibbard’s account current or paid in advance.

During five months in the period between September 1986 and March 1988 no money was paid by the employer. Although in later months the employer made some payments that were larger than the required $130, all the excess payments were applied to the arrearage, and the plaintiff received no passthrough payments for those five months.

Based on the federal and state regulations at issue, when a support account was in arrears as it was in this case, the AFDC recipient would receive a maximum of $50 of the amount collected as a passthrough payment. The amounts collected in excess of $50 were applied to any remaining current support order and then to any arrear-age. With respect to the five months in which Hibbard’s employer made no payments, the plaintiff received no pass-through payments even though the employer remitted more than the required $130 in some later months.

B.

Ms. Mosley filed her second amended complaint in this action on May 20, 1988. She named as defendants the Director of the Ohio Department of Human Services, the director of the county agency and the members of the county commission, and the Secretary of the U.S. Department of Health and Human Services. She alleged that the defendants failed to pass through more than $50 in any month even though they received more than that amount from Hibbard’s employer and a portion of the remitted amount in some months had been deducted in an earlier month. Thus, when a support payment was deducted by the employer in a given month, unless the defendants received the payment in that month, they treated it as an untimely payment and did not pass it through to the plaintiff.

Ms. Mosley’s complaint charged that the regulations and the procedures followed in reliance upon them were inconsistent with, and violated the Social Security Act. She contended that she was entitled to have received a $50 passthrough payment for each month in which there was a deduction regardless of when the agency received payment from Hibbard’s employer. She also asserted that the Act did not authorize the provision of the regulations that no passthrough payment should be made for a month in which there is no support collection. Rather, she maintained, later excess payments should have been applied first to make passthrough payments to the family before being used to reduce the arrearage.

The complaint sought a declaratory judgment that the regulations were invalid, an injunction prohibiting the continued application of the regulations, and an order directing the defendants to make pass-through payments of $50 for each of the five months referred to. The complaint also requested that a class action be certified and that class members receive pass-through payments in accordance with the plaintiff’s construction of the act.

C.

The state and county defendants filed motions to dismiss for lack of subject matter jurisdiction and for failure to state a claim. In an accompanying memorandum the state defendants argued that the Eleventh Amendment prohibited the action against them.

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Bluebook (online)
920 F.2d 409, 1990 WL 191277, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mosley-v-hairston-ca6-1990.