Perley v. Palmer

157 F.R.D. 452, 1994 U.S. Dist. LEXIS 13330, 1994 WL 506885
CourtDistrict Court, N.D. Iowa
DecidedApril 21, 1994
DocketNo. C 92-4037
StatusPublished
Cited by3 cases

This text of 157 F.R.D. 452 (Perley v. Palmer) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Perley v. Palmer, 157 F.R.D. 452, 1994 U.S. Dist. LEXIS 13330, 1994 WL 506885 (N.D. Iowa 1994).

Opinion

ORDER

DONALD E. O’BRIEN, District Judge.

This matter comes before the Court on plaintiffs motion to certify a class action, defendant Iowa Department of Human Services’ (DHS) motion for summary judgment, and plaintiffs’ and defendant DHS’s cross motions for summary judgment on the merits. After a careful review of both oral and written arguments, the Court grants plaintiffs’ motion for certification of a class and denies defendant DHS’s motion for summary judgment. The Court denies plaintiffs’ and defendant DHS’s cross-motions for summary judgment on the merits as more specifically set forth herein.

FACTS

Plaintiffs, on behalf of themselves and all others similarly situated, have brought suit against Charles Palmer in his official capacity as director of the Iowa Department of Human Services (DHS).1 Plaintiffs object to a DHS policy which counts “improved” Veterans Administration pension benefits as income for Medicaid eligibility purposes. Plaintiffs assert that this policy violates Title XIX of the Social Security Act (Act) and its supporting regulations. Plaintiffs’ also contend that this policy, which results in a denial of Medicaid benefits, is a violation of their Fourteenth Amendment right to equal protection of the laws.

Pursuant to an agreement reached by plaintiffs’ and the DHS, this Court entered a preliminary injunction on June 25, 1992. This preliminary injunction provided that DHS would redetermine the Medicaid eligibility of named plaintiffs Donald Perley and Donald King and disregard as income any part of named plaintiffs’ Veterans Administration (VA) pension which were paid based on the VA’s consideration of “unusual medical expenses” (UME).2 Additionally, the preliminary injunction provided that if the disposition of this case on the merits was in defendant’s favor, all amounts paid by the DHS pursuant to the preliminary injunction could be treated as overpayments to the named plaintiffs.

Subsequent to this agreement, the DHS filed a third-party complaint against the See-[455]*455retary of the U.S. Department of Health and Human Services (HHS). The object of this complaint was to obtain an order compelling HHS to pay federal matching funds to the DHS if this Court ordered DHS to reimburse plaintiffs. HHS made a motion to dismiss this third-party complaint which was denied.

DISCUSSION

Plaintiffs seek to certify as a class all elderly veterans or spouses of veterans who have been denied Title XIX benefits in the two years proceeding the filing of this action, or may be denied such benefits in the future, due to the DHS policy regarding veterans improved pensions.3 Plaintiffs assert they meet the four criteria for class certification under Fed.R.Civ.P. 23(a). Plaintiffs first argue that the numerosity requirement is met. Although it is nearly impossible to determine exactly the number of veterans affected by the policy, plaintiffs state that approximately 500 veterans in Iowa receive “Aid and Attendance” benefits and Title XIX benefits. Therefore, it is reasonable to believe that at least that number of veterans are denied Title XIX benefits as a result of receiving improved veterans pensions due to UME. Plaintiff also asserts that the commonality requirement is easily met, because the common question here is whether the DHS policy is consistent with federal requirements governing income eligibility for Title XIX benefits. As for typicality, plaintiffs argue that the claims of the named plaintiffs are typical of other class members because the claims of each class member is premised on the same legal theory. Finally, plaintiffs assert that the named plaintiff will adequately represent the class because they have common interests with the class which will be vigorously represented through qualified counsel. Plaintiff also argues that the requirements of Rule 23(b) are met in so far as the party opposing the class, the DHS, has “acted or refused to act on grounds generally applicable to the class.”

DHS resists plaintiffs motion to certify a class in a motion for summary judgment. In this motion, DHS argues that plaintiffs’ motion to certify a class must fail on the grounds of mootness, preclusion, and the Eleventh Amendment’s sovereign immunity provisions. DHS argues that the named plaintiffs’ claims for prospective relief are moot because plaintiff Perley has died and plaintiff King’s benefits were redetermined according to the preliminary injunction. This redetermination makes King eligible for Medicaid without regard to DHS’s treatment of improved pension payments. DHS argues that this Court cannot certify a class even if the other veterans in the class have a “live” case because the named plaintiffs’ claims are now moot.

DHS also argues that final decisions rendered against plaintiffs in state administrative proceedings preclude plaintiffs’ claims in this case. Both plaintiffs in this case had a hearing before an Administrative Law Judge (ALJ) who denied the award of benefits. Both plaintiffs appealed the denial to the Director of DHS, who issued a final decision adopting the ALJ’s decision. DHS argues that because plaintiffs had an adequate opportunity to litigate in a quasi-judicial state administrative proceeding the issues they now seek to raise here, plaintiffs present action must be barred. University of Tennessee v. Elliott, 478 U.S. 788,106 S.Ct. 3220, 92 L.Ed.2d 635 (1986). DHS also asserts that both factual issues and legal issues are precluded from being considered in federal court. Deretich v. Office of Admin. Hearings, 798 F.2d 1147 (8th Cir.1986). Furthermore, DHS argues that any claims by plaintiffs that seek retrospective relief, to be paid by the state for past violations of federal law, are claims barred by the Eleventh Amendment.

In response to DHS’s mootness and preclusion arguments, plaintiffs’ argue that even though one of the named plaintiffs has received some relief from their claim through the preliminary injunction, a class can be certified which relates back to the time the complaint was filed. Zeidman v. J. Ray McDermott and Co., Inc., 651 F.2d 1030, 1051 (5th Cir.1981). Plaintiffs also state that DHS has informed plaintiffs that DHS will [456]*456seek an overpayment if plaintiffs’ lose this ease on the merits; thus, the ease is not moot. Plaintiffs also respond that the state administrative decisions denying them benefits does not preclude them from bringing suit, and argues that DHS’s reading of University of Tennessee v. Elliott is inaccurate. Plaintiff argues that Elliott only precludes federal courts from reviewing the fact-finding of an administrative agency, and that no such preclusive effect is to be given to legal challenges to agency actions. See University of Tennessee v. Elliott, 478 U.S. 788, 799, 106 S.Ct. 3220, 3226-27, 92 L.Ed.2d 635 (1986).

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Cite This Page — Counsel Stack

Bluebook (online)
157 F.R.D. 452, 1994 U.S. Dist. LEXIS 13330, 1994 WL 506885, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perley-v-palmer-iand-1994.