Penquis C.A.P. Inc. v. Maine Department of Health and Human Services

CourtSuperior Court of Maine
DecidedSeptember 25, 2024
DocketKencv-24-17
StatusUnpublished

This text of Penquis C.A.P. Inc. v. Maine Department of Health and Human Services (Penquis C.A.P. Inc. v. Maine Department of Health and Human Services) is published on Counsel Stack Legal Research, covering Superior Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Penquis C.A.P. Inc. v. Maine Department of Health and Human Services, (Me. Super. Ct. 2024).

Opinion

STATE OF MAINE SUPERIOR COURT KENNEBEC, ss. CIVIL ACTION DOCKET NO. CV-24-17

) PENQUIS C.A.P. INC., ) ) Plaintiff, ) v. ) ) MAINE DEPARTMENT OF HEALTH ) AND HUMAN SERVICES, THE ) BUREAU OF GENERAL SERVICES, ) DECISION ON PENDING and THE OFFICE OF MAINECARE ) MOTIONS TO DISMISS SERVICES, ) ) Defendants, ) and ) ) WALDO COMMUNITY ACTION ) PARTNERS, ) ) Party-in-Interest. )

After losing a state contract to a conipeting bidder, Plaintiff Penquis C.A.P.

Inc. ("Penquis") initiated administrative appeal proceeding·s before Defendant

Bureau of General Services ("BGS") and submitted certain Freedom of Access Act

("FOAA") requests to Defendant Department of Health and Human Services

("DHHS") to gather information for its appeal. In this action, Penquis alleges that

DHHS violated various provisions of FOAA through its handling of Penquis's

requests for records and that BGS 1 violated its clue process right to receive and

present evidence in suppol't of its administrative appeal. BGS and DHHS have filed

1 The court infers that the due process claim is asserted against BGS; Penquis does not specify.

1 motions to dismiss pursuant to Maine Rules of Civil Procedure 12(b)(l) and 12(b)(6),

which are currently pending before the court. For the following reasons, the court

grants both motions to dismiss.

BACKGROUND Penquis is a non-profit corporation that provides transportation services to

vulnerable individuals living in rural areas of Maine. Verified Compl. ii 1. On May

15, 2023, DHHS issued a multi-district Request for Proposals ("RFP") seeking non-

emergency trnnsportation providers to serve eight distinct regions throughout the

State. Id. ii 5. Penquis, which then had a contract to serve two of those regions,

submitted bids for contracts in Regions 2, 3, 4, and 8. Id. ,r,r 6-7. On October 5,

2023, Penquis received notification that it had not been successful in securing a

contract; a competing bidder, MoclivCare, was awarded contracts in all eight regions

instead. Id. 'if'if 8-9.

Penquis thereafter appealed the conditional contract awards to BOS. Id. 'if 12;

Verified Compl. Ex. D; 2 see also 5 M.R.S. § 1825-E. The appeal asserted, inte1· alia,

that DHHS awarded the contracts to ModivCare based on criteria that was not

2 The Verified Complaint refers to various attached exhibits. All parties rely upon the exhibits for purposes of the pending motions and no party challenges the authenticity of these documents. Accordingly, the exhibits "merge into the pleadings" and are properly considered on a motion to dismiss. Moody v. State Liq1.wr & Lottery Com.m'n, 2004 ME 20, ~ 10, 843 A.2d 43 (holding that "official public documents, documents that are central to the plaintiffs claim, and documents referred to in the complaint may be properly considered on a motion to dismiss without converting the motion to one for a summary judgment when the authenticity of such documents is not challenged").

2 identified in the RFP, including the fact that ModivCare provided free rides to

vaccination clinics during the CO'i/ID-19 pandemic. Verified Compl. Ex. D. On

Penquis's motion, BGS stayed DHHS's contract award decision pending the

administrative appeal prnceedings. Verified Compl. ilil 10, 11; Verified Compl. Exs.

B, C. BGS scheduled an appeal hearing for December V1 and 15, 2023. Verified

Compl. ,r 13.

In pursuit of evidence for its appeal, Penquis submitted various FOAA

requests to DHHS, two of which are the subject of Penquis's complaint. Id.~ 14.

The first request at issue was submitted on November 15, 2023 ("the November

Request"), and sought "all communications between [DHHS] employees and agents

regarding transporting Maine residents to Covid-19 vaccination appointments and

any and all communications between DHHS and ModivCare, including but not

limited to communications about providing transportation services to Maine

residents to receive Covid-19 vaccine rides." Verified Compl. ii 16; Verified Compl.

Ex. F. The other request, submitted on December 22, 2023 ("the December

Request"), sought "all reports provided to [the Office of Maine Care Services] or

DHHS from ModivCare/LogistiCare and Penquis from July 2014 to November

2023." Verified Compl. ii 35; Verified Compl. Ex. P. To afford Penquis the time to

receive and review documents responsive to its FOM requests, the hearing officer

agreed to continue the administrative appeal hearing to February 7 and 8, 2024.

Verified Compl. iii! 20-22.

DHHS and Penquis continued to communicate regarding the scope and

3 status of the FOAA requests, but as the February appeal hearing approached,

DHHS had yet to complete delivery of all responsive documents and some of the

documents produced were heavily redacted. Id. ilil 18-19, 23-38, 51. Accordingly, on

January 10, 2024, Penquis moved for a second continuance of the appeal hearing to

allow additional time for the processing of its FOAA requests. Verified Compl. ii 40;

Verified Compl. Ex. S. The hearing officer denied that motion on January 23, 2024,

but noted that "[o]bjections can be raised during the hearing if relevant documents

are needed and will be dealt with" at that time. Verified Compl. Ex. W.

PROCEDURAL HISTORY

Penquis initiated this action by Verified Complaint dated January 29, 2024.

Counts I-III allege that DHHS violated various provisions of FOAA through its

handling of the November Request, and Counts IV-V allege FOAA violations with

respect to the December Request. Count Vl, apparently asserted against BGS,

claims violations of Penquis's due process right to receive and present evidence in

support of its appeal of the contract award decision. Among other relief, the Verified

Complaint asks the court to order disclosure of the requested records and stay

Penquis's administrative appeal hearing until such records are released.

On January 26, 2024, Penquis filed a motion for a temporary restraining

order and preliminary injunction, similarly asking the court to order BGS to stay

the appeal hearing pending DHHS's completion of the FOAA requests. The court

subsequently issued an order temporarily continuing the appeal hearing. On

February 16, 2024, after briefing and argument, the court denied Penquis's motion

4 fo1· a preliminary injunction and permitted the appeal hearing to be scheduled.

During a conference on September 10, 2024, the parties informed the court that the

appeal hearing had been held and that Penquis has filed a appeal from that

proceeding pursuant to Maine Rule of Civil Procedure SOC, which has been

transferred to the Business and Consumer Docket.

BGS and DHHS (collectively, "Defendants") have filed motions requesting

that the court dismiss the Verified Complaint pmsuant to M.R. Civ. P. 12(b)(l) and

12(b)(6). The motions have been fully briefed and are pending decision.

STANDARD OF REVIEW

A motion to dismiss tests the legal sufficiency of the complaint. Livonia v.

Town of Rorne, 1998 ME 39, ~ 5, 707 A.2d 83. "For purposes of a Rule 12(b)(6)

motion, the material allegations of the complaint must be taken as admitted." Id.

On review, the court examines the complaint "in the light most favorable to the

plaintiff to determine whether it sets forth elements of a cause of action or alleges

facts that would entitle the plaintiff to relief pursuant to some legal theory." Oahes

v.

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Penquis C.A.P. Inc. v. Maine Department of Health and Human Services, Counsel Stack Legal Research, https://law.counselstack.com/opinion/penquis-cap-inc-v-maine-department-of-health-and-human-services-mesuperct-2024.