Rosas v. Brock

826 F.2d 1004
Court of Appeals for the Eleventh Circuit·Decided September 8, 1987·No. No. 86-3825·Published·Cited by 20 cases

Opinion

EDMONDSON, Circuit Judge:

This case involves the question of whether federal courts have jurisdiction to review administrative eligibility decisions under the Disaster Relief Act of 1974, 42 U.S.C.A. sec. 5121, et seq. Sabador Rosas sued defendants in their official capacities in the United States District Court for the Middle District of Florida, challenging the denial of his application for benefits. The district court dismissed the action for lack of jurisdiction. Because we hold that the district court did have jurisdiction over certain of Rosas’s claims, we affirm in part and reverse in part.

In January, 1985, a severe freeze damaged many agricultural crops in Florida. In March, the President declared several areas of Florida disaster areas. This declaration made available the benefits of the Disaster Relief Act (DRA), including Disaster Unemployment Assistance (DUA) benefits under 42 U.S.C.A. sec. 5177. The President had in 1974 delegated his DUA authority to the Secretary of Housing and Urban Development, Exec. Order 11,795, 39 Fed.Reg. 25939 (1974), who had in turn delegated the authority to the Secretary of Labor, 39 Fed.Reg. 33020 (1974). As required by the DRA, 42 U.S.C.A. sec. 5177(a), the Department of Labor and the State of Florida entered into an agreement whereby the State of Florida administered the DUA benefits. The designated state agency was the Florida Department of Labor and Employment Security.

At the time of the freeze, Plaintiff Rosas was unemployed, although he had been employed by the Coca-Cola Company in its orange groves. Before the freeze, Coca-Cola had placed Rosas on seasonal lay-off; but the company recalled him immediately after the freeze to help salvage as much fruit as possible. Coca-Cola later laid Rosas off again due to lack of work.

Rosas applied for DUA benefits, and his application was denied by a state claims examiner. Rosas appealed that decision, and a state appeals referee affirmed the denial because Rosas was not working or scheduled to begin working when the freeze actually occurred. Rosas then appealed that decision to the United States Department of Labor pursuant to 29 CFR sec. 625.10 (1985). On July 15, 1985, that department affirmed the denial of benefits to Rosas.

Rosas then filed this class-action suit in federal district court against William Brock, the Secretary of the United States Department of Labor; Wallace Orr, the Secretary of the Florida Department of Labor and Employment Security; and Lawrence Weatherford, the Regional Administrator of the Employment and Training Administration of the United States Department of Labor. Mr. Weatherford was the person responsible for affirming the decision of the state hearing officers to deny Rosas benefits. Rosas challenged the regulation defining “unemployed worker” as one working in or scheduled to begin work in the disaster area at the time of the disaster; he alleged that the definition violates constitutional, statutory, and regula[1007]*1007tory provisions. The parties filed cross-motions for summary judgment. The district court granted summary judgment for the defendants on the ground that 42 U.S.C.A. sec. 5148 precludes judicial review of administration of the DUA program and that the district court therefore lacked subject-matter jurisdiction. Rosas then appealed to this court.

We turn first to the claims against William Orr, the Secretary of the Florida Department of Labor and Employment Security. Rosas alleges that Orr is responsible for the actions of the state employees in denying the DUA benefits and that those actions violated various statutory and constitutional provisions. The district court, however, would have jurisdiction over those actions only as provided in 42 U.S.C.A. sec. 1983. One prerequisite to suit under that statute is that the challenged action be taken under color of state law. In this case, the record leads us to the conclusion that the state employees were acting under color of federal, not state, law.

The state agency denied Rosas’s claim for benefits on the basis of a federal rule defining an unemployed worker as one working in or scheduled to begin work in the disaster area at the time the disaster began. Because Rosas was laid off at the time of the freeze, the state appeals referee determined that he was not an eligible “unemployed worker.” The rule that the referee applied is found in “ET [Employment and Training] Handbook No. 356, Disaster Unemployment Assistance (DUA),” a handbook published by the United States Department of Labor and used by all federal and state agencies administering the DUA program. The rule is based upon a regulation promulgated by the Department of Labor, 20 CFR sec. 625.2(s) (1985).

Although agreeing that the decision to deny benefits was based on federal regulations, Rosas argues that a decision to participate in a federal disaster relief program necessarily involves state action and that state employees administering DUA programs must base many of their decisions on state law. This is, to some degree, true. It is certainly true that federal oversight of a state-administered federal program will not automatically preclude a finding that a state employee acted under color of state law. Lake Country Estates, Inc. v, Tahoe Regional Planning Agency, 440 U.S. 391, 398-400, 399 n. 13, 99 S.Ct. 1171, 1175-77, 1176 n. 13, 59 L.Ed.2d 401 (1979); Martin v. Heckler, 773 F.2d 1145, 1154 (11th Cir.1985) (en banc).

Resolution of the issue, however, hinges on the specific action that caused the alleged deprivation of constitutional rights. The action in this case was a decision that Rosas was unentitled to benefits, and the state employees made that decision solely on the basis of federal regulations. Where the challenged action by state employees is nothing more than application of federal rules, the federal involvement in those actions is so pervasive that the actions are taken under color of federal and not state law. Martin v. Heckler at 1154, citing Ellis v. Blum, 643 F.2d 68, 88 n. 17 (2d Cir.1981); Askew v. Bloemker, 548 F.2d 673, 677-78 (7th Cir.1976). Accordingly, the federal courts have no jurisdiction of this case in respect to the state defendant; and the district court correctly dismissed the action as to him.

The claims against the federal defendants are a little more complex. “We begin with a strong presumption that Congress intends judicial review of administrative action.” Bowen v. Michigan Academy of Family Physicians, 476 U.S. 667, 106 S.Ct. 2133, 2135, 90 L.Ed.2d 623 (1986). Still, this “presumption favoring judicial review of administrative action is just that — a presumption. This presumption, like all presumptions used in interpreting statutes, may be overcome by specific language or specific legislative history that is a reliable indicator of congressional intent.” Block v. Community Nutrition Institute, 467 U.S. 340, 344, 104 S.Ct. 2450, 2455, 81 L.Ed.2d 270 (1984).

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Rosas v. Brock, 826 F.2d 1004 (11th Cir. 1987).

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Rosas v. Brock
826 F.2d 1004 (Eleventh Circuit, 1987)