National Ass'n v. Wilmington Medical Center, Inc.

453 F. Supp. 330, 1978 U.S. Dist. LEXIS 17076
District Court, D. Delaware·Decided June 21, 1978·No. Civ. A. 76-298·Published·Cited by 18 cases

Opinion

OPINION

LATCHUM, Chief Judge.

This civil rights class action, spawned by the controversial proposal of the defendant Wilmington Medical Center to relocate the bulk of its urban hospital services to a suburban location, is presently before the Court on cross-motions for partial summary judgment filed by the defendant Secretary of Health, Education and Welfare and by the plaintiffs. 1 These motions were filed in response to the second amended and supplemental complaint 2 in which the plaintiffs for the first time asserted a cause of action against the Secretary based on a challenge to the constitutionality of the administrative regulations promulgated by the Secretary in the implementation of Title VI of the Civil Rights Act of 1964 3 and Section 504 of the Rehabilitation Act of 1973. 4

Plaintiffs contend that the procedures established by the Secretary for enforcing the antidiscrimination provisions of Title VI and Section 504 abridged the plaintiffs’ right to due process of law, because such procedures fail to provide a “fair hearing” to persons whose discrimination complaint against a recipient of federal financial assistance is settled through informal, voluntary compliance measures required under the statutes and the regulations. Alternatively, the plaintiffs argue that the regulations violate their right to the equal protection of the law 5 since applicants for, or recipients of, federal assistance are accorded a “fair hearing” before the grant of assistance to them may be withheld or terminated while persons charging a particular recipient with discrimination are denied a “fair hearing” on the merits of their claims.

I. THE REGULATIONS.

In order to implement the legislative mandate expressed in Title VI and Section 504, HEW and other federal agencies empowered to extend financial assistance were required to issue rules, regulations or orders of general applicability to carry out the objectives of the laws in question. 6 The regulations at issue in this case, found at 45 C.F.R. Part 80 (Title VI) and 45 C.F.R. Part 84 (Section 504), 7 divide the Secretary’s enforcement duties into four phases: (1) the investigative phase; (2) the voluntary compliance phase; (3) the administrative hearing phase; and (4) the fund termination phase. The investigative phase is triggered whenever HEW has reason to believe, because of a complaint or other information, that a recipient of federU aid has failed to abide by or comply with HEW’s rules and regulations. 45 C.F.R. § 80.7(a)-(c). A finding of noncompliance activates the *334 second phase; the statutes 8 and the regulations require the Secretary to first endeavor informally to secure the offending recipient’s voluntary compliance with HEW rules and regulations. See 45 C.F.R. § 80.7(d)(1). If the Secretary determines that compliance cannot be voluntarily achieved, then the recalcitrant recipient and the complainant, if any, are notified of the intention to terminate or withhold funding. However, the administrative hearing phase, which begins only after efforts at voluntary compliance have broken down, must precede the final decision to terminate federal aid. 45 C.F.R. § 80.8-80.11. The hearing consists of an evidentiary proceeding before an administrative law judge who makes a finding of compliance or noncompliance, subject to administrative appeal. 9 Id. The decision to terminate aid, after an express finding of noncompliance on the record, becomes effective thirty days after the filing of a full written report of the reasons for such a decision with the appropriate committees of the House and Senate. 10 See 42 U.S.C. § 2000d-l; 45 C.F.R. § 80.8(c).

II. THE FACTS.

At the time this law suit was commenced in September, 1976, no administrative complaint had been filed by the plaintiffs with the Secretary. 11 Nevertheless, the Court held that service of the complaint in this case upon the defendant Secretary constituted sufficient information of a possible failure to comply with Title VI and Section 504 to trigger investigative review. 12 Thus, in accordance with the Secretary’s regulations the allegations of the plaintiffs’ complaint, together with other information supporting their view that the proposed hospital relocation (Plan Omega) would have a discriminatory impact prohibited by the statutes, were promptly and thoroughly investigated. 13 In early July, 1977, the investigation culminated in a finding that Plan Omega would, as the plaintiffs had in fact charged, contravene the national antidiscrimination policy mandated by Title VI and Section 504. 14 The recipient, Wilmington Medical Center (WMC), and the plaintiffs, as complainants, were duly informed of HEW’s finding of noncompliance and the circumstances of, and the grounds for, that finding. Plan Omega was deemed legally inadequate because, inter alia, its concept at dual facilities with duplicated services, its patient/physician “option” mode of admission, and the travel burdens peculiarly affecting minorities, the poor and the handicapped seeking access to the new suburban hospital, would likely have a discriminatory *335 impact upon plaintiffs and the class they represent. 15 HEW also informed WMC that it could challenge and seek to rebut the prima facie finding of noncompliance through an administrative hearing or it could elect to modify Plan Omega in accordance with various conditions and assurances that HEW had indicated would eliminate Plan Omega’s potential discriminatory effect. 16 Faithful to the legislative mandate, HEW began informal negotiations with representatives of WMC aimed at bringing Plan Omega into compliance.

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National Ass'n v. Wilmington Medical Center, Inc., 453 F. Supp. 330, 1978 U.S. Dist. LEXIS 17076 (D. Del. 1978).

453 F. Supp. 330 (National Ass'n v. Wilmington Medical Center, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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