Saucon Valley Manor, Inc. v. Miller
This text of 392 F. Supp. 3d 554 (Saucon Valley Manor, Inc. v. Miller) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Smith, District Judge
In late 2014, emergency room staff raised concerns of caregiver neglect after they treated an elderly resident of the plaintiffs' personal care home. The Pennsylvania Department of Human Services ("DHS") received a report about this claim of neglect and, thereafter, investigated the personal care home. This investigation culminated in DHS identifying several violations and temporarily revoking the plaintiffs' "regular" personal care home license. The plaintiffs-displeased with DHS's investigation, including that it involved complaints brought to DHS's attention by a competitor-brought the instant civil action under
*562After a lengthy period of discovery, the defendants separately moved for summary judgment and said motions are currently before the court. While the defendants raised numerous arguments as to why all the plaintiffs' claims fail as a matter of law, the court grants the competitor's motion in total, and grants summary judgment in favor of the DHS parties as to the plaintiffs' claims for violations of procedural due process (denial of a predeprivation hearing and bias only), substantive due process, and equal protection. The court denies the DHS parties' motion for summary judgment as to the claim that the DHS parties denied the plaintiffs postdeprivation process due to delay and the claim for First Amendment retaliation. Lastly, as to all defendants, the court grants summary judgment in their favor on the plaintiffs' section 1983 civil conspiracy claim.
I. PROCEDURAL HISTORY
The plaintiffs, Saucon Valley Manor, Inc. and Nimita Kapoor-Atiyeh ("Atiyeh"), filed a complaint against Theodore Dallas ("Dallas") in his official capacity as the Secretary of the DHS,1 Jacqueline Rowe ("Rowe") in her official capacity as the Director of the Bureau of Human Services Licensing ("BHSL") of the DHS's Office of Administration, Matt Jones ("Jones") in his individual and official capacity as a DHS representative, Michele Moskalczyk ("Moskalczyk") in her individual and official capacity as licensing administrator in the Northeast Region Office of the BHSL, and At Home, Inc. d/b/a At Home Health Service and At Home Health and Hospice, and Patrick Stonich ("Stonich") on June 7, 2017.2 Doc. No. 1. The complaint asserted four causes of action under section 1983 : (1) violations of the Fourteenth Amendment Due Process Clause against the DHS Defendants; (2) violations of the Fourteenth Amendment Equal Protection Clause against the DHS Defendants; (3) First Amendment retaliation against Jones and Moskalczyk; and (4) civil conspiracy against the At Home Defendants, Jones, and Moskalczyk. Compl. at 15-18, Doc. No. 1. The At Home Defendants and the DHS Defendants separately moved to dismiss the complaint on July 5, 2017, and July 27, 2017, respectively. Doc. Nos. 11, 14. On September 8, 2017, the court heard oral argument on the motions. Doc. No. 18. On January 10, 2018, the court denied the motions to dismiss in their entirety. Doc. No. 21.
In February 2018, the At Home Defendants and the DHS Defendants separately filed answers and affirmative defenses to the complaint and the case proceeded through a lengthy period of discovery.3 Doc. Nos. 28, 29. On February 19, 2019, the DHS Defendants and At Home Defendants separately moved for summary judgment, filed statements of undisputed *563material facts, and submitted exhibits in support of the motions. Doc. Nos. 87-90, 92-93. The plaintiffs filed responses in opposition to the motions, responses to the plaintiffs' statements of undisputed material facts, their own statements of additional facts, and exhibits in support of their opposition on March 20, 2019. Doc. Nos. 96-100, 103-10. The At Home Defendants and DHS Defendants separately filed responses to the plaintiffs' opposition to their motions for summary judgment on April 3, 2019. Doc. Nos. 112-14. After receiving the court's permission, the plaintiffs filed a sur-reply brief on April 10, 2019. Doc. No. 116.
The motions for summary judgment are ripe for disposition.
II. DISCUSSION
A. Standard of Review - Motions for Summary Judgment
A district court "shall grant summary judgment if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Additionally, "[s]ummary judgment is appropriate when 'the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.' " Wright v. Corning ,
The party moving for summary judgment has the initial burden "of informing the district court of the basis for its motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, which it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett ,
Free access — add to your briefcase to read the full text and ask questions with AI
Smith, District Judge
In late 2014, emergency room staff raised concerns of caregiver neglect after they treated an elderly resident of the plaintiffs' personal care home. The Pennsylvania Department of Human Services ("DHS") received a report about this claim of neglect and, thereafter, investigated the personal care home. This investigation culminated in DHS identifying several violations and temporarily revoking the plaintiffs' "regular" personal care home license. The plaintiffs-displeased with DHS's investigation, including that it involved complaints brought to DHS's attention by a competitor-brought the instant civil action under
*562After a lengthy period of discovery, the defendants separately moved for summary judgment and said motions are currently before the court. While the defendants raised numerous arguments as to why all the plaintiffs' claims fail as a matter of law, the court grants the competitor's motion in total, and grants summary judgment in favor of the DHS parties as to the plaintiffs' claims for violations of procedural due process (denial of a predeprivation hearing and bias only), substantive due process, and equal protection. The court denies the DHS parties' motion for summary judgment as to the claim that the DHS parties denied the plaintiffs postdeprivation process due to delay and the claim for First Amendment retaliation. Lastly, as to all defendants, the court grants summary judgment in their favor on the plaintiffs' section 1983 civil conspiracy claim.
I. PROCEDURAL HISTORY
The plaintiffs, Saucon Valley Manor, Inc. and Nimita Kapoor-Atiyeh ("Atiyeh"), filed a complaint against Theodore Dallas ("Dallas") in his official capacity as the Secretary of the DHS,1 Jacqueline Rowe ("Rowe") in her official capacity as the Director of the Bureau of Human Services Licensing ("BHSL") of the DHS's Office of Administration, Matt Jones ("Jones") in his individual and official capacity as a DHS representative, Michele Moskalczyk ("Moskalczyk") in her individual and official capacity as licensing administrator in the Northeast Region Office of the BHSL, and At Home, Inc. d/b/a At Home Health Service and At Home Health and Hospice, and Patrick Stonich ("Stonich") on June 7, 2017.2 Doc. No. 1. The complaint asserted four causes of action under section 1983 : (1) violations of the Fourteenth Amendment Due Process Clause against the DHS Defendants; (2) violations of the Fourteenth Amendment Equal Protection Clause against the DHS Defendants; (3) First Amendment retaliation against Jones and Moskalczyk; and (4) civil conspiracy against the At Home Defendants, Jones, and Moskalczyk. Compl. at 15-18, Doc. No. 1. The At Home Defendants and the DHS Defendants separately moved to dismiss the complaint on July 5, 2017, and July 27, 2017, respectively. Doc. Nos. 11, 14. On September 8, 2017, the court heard oral argument on the motions. Doc. No. 18. On January 10, 2018, the court denied the motions to dismiss in their entirety. Doc. No. 21.
In February 2018, the At Home Defendants and the DHS Defendants separately filed answers and affirmative defenses to the complaint and the case proceeded through a lengthy period of discovery.3 Doc. Nos. 28, 29. On February 19, 2019, the DHS Defendants and At Home Defendants separately moved for summary judgment, filed statements of undisputed *563material facts, and submitted exhibits in support of the motions. Doc. Nos. 87-90, 92-93. The plaintiffs filed responses in opposition to the motions, responses to the plaintiffs' statements of undisputed material facts, their own statements of additional facts, and exhibits in support of their opposition on March 20, 2019. Doc. Nos. 96-100, 103-10. The At Home Defendants and DHS Defendants separately filed responses to the plaintiffs' opposition to their motions for summary judgment on April 3, 2019. Doc. Nos. 112-14. After receiving the court's permission, the plaintiffs filed a sur-reply brief on April 10, 2019. Doc. No. 116.
The motions for summary judgment are ripe for disposition.
II. DISCUSSION
A. Standard of Review - Motions for Summary Judgment
A district court "shall grant summary judgment if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Additionally, "[s]ummary judgment is appropriate when 'the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.' " Wright v. Corning ,
The party moving for summary judgment has the initial burden "of informing the district court of the basis for its motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, which it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett ,
"When considering whether there exist genuine issues of material fact, the court is required to examine the evidence of record in the light most favorable to the party opposing summary judgment, and resolve all reasonable inferences in that party's favor." Wishkin v. Potter ,
B. Undisputed Material Facts
1. Underlying Incident Giving Rise to the License Revocation
Saucon Valley Manor, Inc. operates a personal care home known as "Saucon Valley Manor."4 Pls.' Unredacted Resp. to the DHS Defs.' Statement of Undisputed Facts at ¶ 6 ("Pls.' Resp. to DHS Facts"), Doc. No. 107; see 62 P.S. § 1001 (defining "Personal care home" as any premises in which food, shelter and personal assistance or supervision are provided for a period exceeding twenty-four hours for four or more adults who are not relatives of the operator, who do not require the services in or of a licensed long-term care facility but who do require assistance or supervision in such matters as dressing, bathing, diet, financial management, evacuation of a residence in the event of an emergency or medication prescribed for self administration.").5 On December 8, 2014, an individual residing at Saucon ("Resident #1") was admitted to St. Luke's Hospital ("St. Luke's"). Pls.' Resp. to DHS Facts at ¶ 22.
*565After treating Resident #1, St. Luke's medical staff became concerned that caregivers neglected Resident #1. See
The Northampton AAA called Louis Bisignani ("Bisignani"), the Director of DHS's Northeast Regional Office, about the suspected neglect of Resident #1. Id. at ¶¶ 15, 23. On December 9, 2014, Bisignani notified BHSL's Northeast Regional Office's workload manager, Moskalczyk, and Anne Graziano (another DHS licensing supervisor) that DHS needed to investigate the complaint within 72 hours. Id. at ¶ 25. The next day, Bisignani e-mailed a "high level complaint" (also known as a "PCH Licensing Alert") to several DHS staff. Id. at ¶¶ 26, 27. The PCH Licensing Alert informed DHS staff that Resident #1 passed away on December 9, 2014, and that St. Luke's staff expressed concern that Saucon neglected Resident #1 due to Resident #1's "condition upon admission." Id. at ¶ 28; see id. at 29 ("Undisputed for purposes of resolving DHS's motion for summary judgment.").
While several regulatory bodies conducted investigations into Resident #1's death, DHS's responsibility was to "investigate whether there was 'neglect of a care-dependent person' such as Resident # 1 'from a regulatory perspective - not a criminal perspective." Id. at ¶ 30 ("Undisputed"); see id. at ¶ 40 (describing Northampton AAA and Hellertown Police Department as also investigating Resident #1's death). DHS does not investigate all deaths at personal care homes; however, DHS investigates "unusual deaths" and "deaths where a regulatory complaint has been made." Id. at ¶ 31.
Ultimately, DHS assigned Julienne Rushin ("Rushin") and Moskalczyk, as her supervisor, to investigate the complaint. Id. at ¶ 32. Bisignani also brought in Lori Knockstead ("Knockstead"), a consultant from Temple University's Institute on Protective Services, to assist with the investigation. Id. at ¶¶ 32, 33. Rushin, Moskalczyk, and Knockstead (collectively, the "Investigators") conducted their inquiry into Resident #1's treatment over the course of several months. Id. at ¶ 37. Their inquiry involved several site visits to Saucon and, on one such visit, Knockstead stated that Resident #1 died of a "raging UTI." Id. (disputing that Knockstead made statement on December 15, 2014, and asserting that she made it on December 12, 2014).
DHS's investigation continued into 2015 and culminated in the Investigators identifying several violations. Id. at ¶¶ 39, 46.6 When DHS finds a violation, it must provide written notice to the personal care home. See 62 P.S. § 1026(a) ("Whenever the department, upon inspection or investigation, shall learn of violation of this act or of regulations adopted by the department *566pursuant to this act, it shall give written notice thereof to the offending person. Such notice shall require the offending person to take action to bring the facility into compliance with this act or with the relevant regulations within a specified time.").7 In accordance with said requirements, DHS emailed Atiyeh, Saucon's president and administrator, a License Inspection Summary ("LIS") on April 15, 2015, detailing violations identified by the Inspectors on December 12, 2014; December 15, 2014; January 15, 2014; January 23, 2015; and February 18, 2015 (hereinafter, the "April 2015 LIS").8 Id. at ¶¶ 7, 46; Sealed Exs. to DHS Defs.' Statement of Undisputed Material Facts ("Sealed DHS Ex."), Ex. 13 at ECF pp. 5-24, Doc. No. 92-6; see also 62 P.S. § 1026(a) (setting forth notice of violation requirements).
The April 2015 LIS described the (1) violations identified, including the associated regulatory provisions relevant to the identified violation and inspection(s) date(s) and (2) provided a space for Saucon to include their "Plan of Correction" ("POC"). See generally Pls.' Additional Facts Precluding Summ. J. ("Pls.' Additional Facts"), Ex. 30, Decl. of Rebecca S. Melley ("Melley Decl."), Ex. B at ECF pp. 14-86, Doc. No. 100-29.9 A POC is a written plan, approved by DHS and prepared by the "legal entity," that specifies how the personal care home will "correct each noncompliance[.]" 55 Pa. Code. § 20.52 ("If, during an inspection, authorized agents of the Department observe items of noncompliance with licensure or approval regulations, the legal entity shall submit an acceptable written plan to correct each noncompliance item and shall establish an acceptable period of time to correct these items."). The personal care home must submit a POC to DHS within ten days of a receiving a violation report. Pls' Resp. to DHS Facts at ¶ 50. In addition to identifying proposed solutions to violations, DHS uses POCs to allow parties to document their disagreements with the underlying violations without admitting responsibility for said violations. See DHS Statement of Undisputed Material Facts, Ex. 4, Office of Admin. Bureau of Human Servs. Licensing Policies and Procedures ("DHS Policies") at 39 ("[An individual/entity submitting a POC] may document disagreement with a finding, and/or may document that providing a plan does not constitute admission that the listed violation is accurate. However, [the individual/entity] must provide a plan to correct each violation in addition to statement(s) disputing the report's findings."), Doc. No. 87-4. DHS directed the plaintiffs to dispute the underlying violations in their POC via the cover letter attached to the April 2015 LIS. Sealed DHS Ex. 13 at ECF p. 5 (stating that "[i]f you believe any violation is incorrect, you may say that in your comments under Section 3 but you still must include a plan to reach and maintain compliance[ ]").On April 14, 2015, Saucon submitted a POC to DHS. Pls' Resp. to DHS Facts at ¶ 52. In its POC, Saucon challenged the findings of violation in Section 3 by providing written comments. 2015 LIS
*567at ECF pp. 14-86; see also Pls.' Resp. to DHS Facts ¶ 53 ("By way of further response, although Saucon voluntarily submitted with its POC voluminous information rebutting DHS's 'factual findings' in the Violation Report, as it has the right to do...."). On May 20, 2016, DHS rejected Saucon's POC as an "[u]nacceptable plan for regulation(s) #: 24, 42b, 141b2, 142a, 187a, 187d, 226c, 227d." Id. at ¶ 54; Sealed DHS Ex. 17, Doc. No. 92-9. Saucon submitted a revised POC and, on or about May 26, 2015, DHS approved the revised POC. Id. at ¶ 56. Notably, DHS approval of a POC allowed Saucon to continue operating during a subsequent enforcement proceeding.10 Id. at ¶ 57.
On May 26, 2015, Bisignani recommended that DHS initiate an enforcement action against Saucon, id. at ¶ 58, specifically, he recommended a "Revocation of the Home's License and issuance of a First Provisional License." Id. at ¶ 59. On Bisignani's recommendation, DHS revoked Saucon's "regular" personal care home license and issued the "first provisional license" on June 9, 2015. Id. at ¶ 60. As required by 62 P.S. § 1026(c), DHS provided written notice of the revocation. In the notice, DHS stated that it revoked Saucon's regular license because of three Class II violations: § 2600.42(b) ("A resident may not be neglected, intimidated, physically or verbally abused, mistreated, subjected to corporal punishment or disciplined in any way."), § 2600.187(b) (regarding recording of medication at the time it is administered), and § 2600.187(d) (requiring home to follow directions of prescriber). DHS Defs.' Statement of Undisputed Facts, Ex. 14 at ECF pp. 4-6 ("DHS Revocation Letter"), Doc. No. 87-14; Pls.' Resp. to DHS Facts at ¶ 62 (disputing that plaintiffs violated cited regulatory provisions, but not disputing that DHS identified said provisions as bases for violations). Saucon had five days from the mailing of the letter to correct the violations before DHS would access fines. DHS Revocation Letter at ECF p. 5. Ultimately, DHS did not issue any fines against Saucon for the identified violations and restored the plaintiffs' "regular" license three months early. Pls' Resp. to DHS Facts at ¶¶ 57, 65, 67.11
2. DHS Appeal Process
While a "legal entity" may not appeal from DHS's finding of a violation, the entity may immediately appeal from DHS's decision to revoke a "regular" license to the Bureau of Hearings and Appeals ("BHA") within DHS. See
C. Analysis of the Plaintiffs' Section 1983 Claims
" Section 1983 provides a civil remedy for the 'deprivation of any rights, privileges, or immunities secured by the Constitution and laws.' " Halsey v. Pfeiffer ,
1. Fourteenth Amendment Due Process
Pursuant to the Fourteenth Amendment, "[n]o state shall ... deprive any person of life, liberty, or property, without due process of law." U.S. Const. amend. XIV, § 1. Due process protections extend to both substantive and procedural violations of the Fourteenth Amendment. See Planned Parenthood of S.E. Pa. v. Casey ,
a. Substantive Due Process
"[T]wo very different threads make up the fabric of substantive due process: substantive due process relating to legislative action and substantive due process relating to non-legislative action." Newark Cab Ass'n v. City of Newark ,
Here, as a matter of first impression, the plaintiffs ask the court to expand the category of recognized property interests to include a "regular" personal care home license. The DHS Defendants argue that current Third Circuit precedent forecloses this avenue of relief to the plaintiffs because their "regular" license is not protected by the substantive component of the Due Process Clause. Br. in Supp. of DHS Defs.' Mot. for Summ. J. ("DHS Defs.' Br.") at ECF pp. 9-10, Doc. No. 90.15 In response, the plaintiffs make several creative, yet unavailing arguments, namely that the court should deny summary judgment because (1) the plaintiffs' interest in the license is "certain and concrete" and (2) Third Circuit precedent does not preclude the court from recognizing their "regular" personal care home license as a protected property interest. Resp. of Pls. Saucon Valley Manor, Inc. and Nimita Kapoor-Atiyeh in Opp'n to the Mot. for Summ. J. of Defs. Teresa Miller, Jacqueline Rowe, Matt Jones, and Michele Moskalczyk ("Pls.' Br. in Opp'n to DHS Mot.") at 33-35, Doc. No. 96.
Here, the court finds the plaintiffs' interest in a "regular" personal care home license is not a "fundamental property interest" protected by the United States Constitution.16 While the plaintiffs' argue *571that this view is too narrow and fails to consider the "concrete" nature of their property interest, Pls.' Br. in Opp'n to DHS Mot. at 33, 34, the Third Circuit directs district courts to narrowly define protected rights for purposes of substantive due process. See, e.g. , Newark Cab Ass'n ,
At bottom, Saucon's "regular" license is merely a license to operate a business without the reputational "stain" of a provisional license and neither the right to operate a business nor the property interest in a business license are "fundamental" rights or property interests protected by substantive due process. See, e.g. , *572Wrench Tr. Sys., Inc. v. Bradley ,
b. Procedural Due Process
"Procedural due process imposes constraints on governmental decisions which deprive individuals of 'liberty' or 'property' interests within the meaning of the Due Process Clause of the Fifth or Fourteenth Amendment." Mathews v. Eldridge ,
While the parties do not dispute the first element, a protected property interest, see DHS Defs.' Br. at ECF p. 15 ("For purposes of this Motion, Defendants concede that Plaintiffs have a protected interest in maintaining the 'regular' personal care home license granted by DHS to Saucon."), the DHS Defendants present several arguments as to why they are entitled to summary judgment on the plaintiffs' procedural due process claims, namely that, pursuant to Mathews , DHS is not required to provide additional predeprivation procedures.17
i. Adequacy of DHS Licensure Procedures
Due process "is a flexible concept that varies with the particular situation." Zinermon v. Burch ,
First, the private interest that will be affected by the official action; second, the risk of an erroneous deprivation of such interest through the procedures used, and the probable value, if any, of additional or substitute procedural safeguards; and finally, the Government's interest, including the function involved and the fiscal and administrative burdens that the additional or substitute procedural requirement would entail.
Mathews ,
At the outset, the court must determine whether due process mandates that the DHS Defendants provide the plaintiffs with a predeprivation hearing based on the Mathews factors outlined above. See Elsmere Park Club, L.P. ,
First, the court must consider the nature of the private interest affected. Mathews ,
Here, the private interest affected by the official action is the interest in operating a personal care home with a "regular" license instead of a "provisional" license. The plaintiffs argue their "private interest" is "strong" because "the Commonwealth requires that license [a regular license] to operate a personal care home" and, as such, "revocation of that license could force the home to cease operations, depriving the operator of his or her livelihood." Pls.' Br. in Opp'n to DHS Mot. at 22-23. However, this is not an accurate representation of the actual interest asserted by the plaintiffs. It is undisputed that the plaintiffs received an approved POC which allowed them to continue operations after DHS revoked their regular license. Pls' Resp. to DHS Facts at ¶ 57. Thus, the actual interest asserted by these plaintiffs is an interest in operating a home without the reputational stain of a provisional license (and financial harms flowing from said reputational harm), not their livelihood. See Pls.' Additional Facts, Ex. 1 at 188, 189, 224 (describing harm caused by downgrade as requiring plaintiffs to offer reduced/free rent or loss of potential clients and compliance costs), Doc. No. 105. This distances the plaintiffs' interest from one which requires a predeprivation evidentiary hearing, namely an individual's livelihood, because the downgrade did not preclude the plaintiffs' ability to operate Saucon as a personal care home. See Mathews ,
Second, the court must consider the risk of erroneous deprivation. This factor,
in addition to considering the probability of error, also takes into account the consequences of error. More protective process will generally be required the more the "length or severity of the deprivation" indicate "a likelihood" that "serious loss" will accompany any mistake. See Memphis Light, Gas and Water Div. v. Craft ,436 U.S. 1 , 19,98 S.Ct. 1554 ,56 L.Ed.2d 30 (1978). Whether a loss is minimal enough to excuse the ordinary requirement of pre-deprivation process will depend on a variety of factors, including the hardship suffered during the deprivation and the adequacy of the available post-deprivation remedies.
Augustin v. City of Phila. ,
In the present case, viewing the disputed facts in favor of the plaintiffs, DHS's process for reviewing complaints and issuing violations appears to err on the side of requiring greater credibility determinations than simply checking boxes. Nonetheless, this factor ultimately weighs against requiring a predeprivation hearing because the plaintiffs' asserted deprivation is slight, and the risk of erroneous deprivation is lessened by internal review procedures and adequate postdeprivation procedures.
The deprivation here, even if erroneous, is not severe. Notably, it is undisputed that DHS did not prevent the plaintiffs from operating their personal care home with a provisional license and DHS permitted the plaintiffs to seek an expedited re-issuance of a "regular" license. It is also *576undisputed that DHS did not assess any fines against the plaintiffs thereby further reducing the severity of the deprivation. See Pls.' Resp. to DHS Facts at ¶ 65 (stating it is "undisputed" that "[n]o fines were assessed by DHS against Saucon in relation to the June 9, 2015 license downgrade[ ]").21 Cf. Augustin ,
The risk of erroneous deprivation is also reduced because of certain procedural safeguards used during the review process and the ability to seek relief from any legal or factual errors in postdeprivation proceedings. According to DHS policy, the inspector first drafts the LIS, then the inspector submits it to the "first-line supervisor or regional director" for review, next, those revisions are incorporated and, finally, the supervisor conducts a final review of the LIS before transmitting it to the licensee. DHS Policies at 36, 37. Additionally, during the inspection process, inspectors are required to "[c]onfer about potential regulatory violations and ensure that at least two inspectors observe any serious regulatory violations." Id. at 36. The licensee also may dispute the findings in a LIS by "document[ing] disagreement with a finding." Id. at 39.
The risk of erroneous deprivation is further reduced because DHS "provides reasonable remedies to rectify legal errors by an administrative body[,]" namely, the opportunity both before and after DHS revokes a license to voice disagreement with the agency's findings. Freidman ,
Finally, the government's interest in quickly protecting a vulnerable population, the elderly, is paramount. Courts look to the regulatory purpose in determining the government's interest. Town Court Nursing Ctr., Inc. , 586 F.2d at 277. For example, in determining that a predeprivation hearing is not required prior to terminating a nursing home's Medicaid provider agreement, the Third Circuit, relying on a Second Circuit decision concerning the same subject matter, found the facility's need "incidental" because the fact "[t]hat a particular nursing facility cannot survive without Medicaid participation was certainly not Congress' foremost consideration in its creation of the Medicaid program." Id. (quoting Case v. Weinberger ,
DHS's interest in not affording a predeprivation hearing is further heightened by its need to act quickly.24 See Fanti v. Weinstock ,
ii. Bias & Delay
The plaintiffs argue the DHS Defendants denied them due process because the Investigators were biased against them and that DHS "stonewalled" their BHA appeal.25 As to bias, the court finds the plaintiffs' bias arguments unavailing for purposes of procedural due process.26 "[A] 'fair trial in a fair tribunal is a basic requirement of due process.' This applies to administrative agencies which adjudicate as well as to courts." Withrow v. Larkin ,
Here, authority cited by the plaintiffs fails to persuade the court because, even if bias infected the investigation process, claims that the first-line individual harbored bias against a plaintiff fail as a matter of law when the plaintiff "has not taken advantage of his right to a post-deprivation hearing before an impartial tribunal that can rectify any possible wrong committed by the initial decisionmaker." Alvin ,
*581However, where the complained of conduct is random and unauthorized (so that state authorities cannot predict when such unsanctioned deprivations will occur), the very nature of the deprivation ma[kes] predeprivation process impossible, and postdeprivation process is all that is due." (citations and quotation marks omitted)); Revell v. Port Auth. of N.Y., N.J. ,
As to improper delay, a "fundamental requirement of procedural due process is an opportunity to be heard 'at a meaningful time and in a meaningful manner.' " Wilkinson v. Abrams ,
"[w]hen adequate post-deprivation procedures exist, a plaintiff must avail him or herself of those procedures to properly state a procedural due process claim." The adequacy of a post-deprivation hearing frequently depends on whether it is provided in a timely manner. No doubt that "[a]t some point, a delay in the post-termination hearing would become a constitutional violation." Further, "[w]here a particular process is inadequate, effectively blocked, or a sham, that process also would not provide the due process required by law."
Yelland v. Abington Heights Sch. Dist. , Civ. A. No. 3:16-2080,
Here, a review of the record shows that the BHA scheduled a telephonic pretrial hearing for July 16, 2015, roughly one month after the plaintiffs gave DHS notice of their intent to appeal their license downgrade, and a hearing on September *58214, 2015.29 BHA R. at ECF pp. 14, 17; Melley Decl., Ex. B at ECF pp. 9, 13, 14. Then the BHA stayed the hearing seven times and, aside from the first stay request, the plaintiffs (referred to as appellants in the BHA proceeding) requested each continuance. See BHA R. at ECF pp. 4, 6, 7, 8, 9, 11, 12. Notably, each order the ALJ issued which granted the requested stays, other than the first request in September 2015, required the plaintiffs to file a status report prior to its expiration. Compare
While the plaintiffs argue that the DHS Defendants "deprived [them] of any post-deprivation process in connection with DHS's revocation of Saucon's regular license[,]" and that DHS denied "Saucon the opportunity to pursue its administrative appeal, which is a precondition of a state appeal[,]" Pls.' Resp. in Opp'n at 29 n.26, the plaintiffs do not dispute that they "did not 'tak[e] any action since commencing the present lawsuit to lift the stay or otherwise resume the BHA proceedings.' " Pls.' Resp. to DHS Facts at ¶ 77. While a delay of four years might be problematic if the BHA intentionally allowed the appeal to languish against the wishes of the plaintiffs, the plaintiffs cannot create a procedural due process violation based on delay they caused. See Fanti ,
iii. Stigma Plus
"[D]efamation is actionable under
"To satisfy the stigma prong of the test, it must be alleged that the purportedly stigmatizing statements(s) [sic] (1) were made publicly and (2) were false." Dee ,
Here, it appears to be a disputed issue of material fact when DHS published the LIS.31 The DHS Defendants argue that "no deprivation of a protected interest occurred until Plaintiffs' regular license was revoked." DHS Defs.' Br. at ECF p. 14 n.4. However, the plaintiffs argue that the DHS revoked the license and published the LIS simultaneously. Pls.' Resp. in Opp'n to DHS at 31, 33. Thus, the court denies summary judgment because disputed issues of material fact preclude the court from determining whether the plaintiffs can satisfy the "plus" requirement.
2. Equal Protection
A prima facie claim for a violation of the Equal Protection Clause requires a plaintiff to establish: "(1) the defendant treated him differently from others similarly situated, (2) the defendant did so intentionally, and (3) there was no rational basis for the difference in treatment." Hill ,
In the present case, the court need only address the first element of the plaintiffs' equal protection claim-whether Miller, Rowe, Jones, or Moskalczyk treated the plaintiffs differently from those similarly stated-because it is dispositive.32 The plaintiffs do not present any evidence of similarly situated personal care homes that suffered violations similar to theirs and received different treatment. Instead, they assert their equal protection claim can proceed without identifying similarly situated homes and argue, without identifying any other personal care homes with specificity, that DHS engaged in unprecedented behavior by interfering with the Department of Aging's investigation and deciding to initiate an enforcement action earlier in their case than in others. Pls.' Br. in Opp'n to DHS Mot. at 47, 48. However, these arguments miss the mark because the plaintiffs must identify specific entities similar to Saucon "in all relevant respects." Startzell ,
3. First Amendment Retaliation
As to the plaintiffs' claim for First Amendment retaliation, a prima facie case of First Amendment retaliation requires: "(1) that the activity in question is protected by the First Amendment, and (2) that the protected activity was a substantial factor in the alleged retaliatory action. The first factor is a question of law; the second factor is a question of fact." Hill ,
4. Civil Conspiracy
The plaintiff alleges that the At Home Defendants, Jones, and Moskalczyk conspired to violate their civil rights. Compl. at 18. "To prevail on a conspiracy claim under § 1983, a plaintiff must prove that persons acting under color of state law 'reached an understanding' to deprive him of his constitutional rights." Jutrowski v. Twp. of Riverdale ,
Here, the plaintiffs' claim fails because a conspiracy is cognizable under section 1983 only if the parties conspire to deprive the plaintiffs of a federal constitutional or statutory right. See Rink v. Ne. Educ. Intermediate Unit 19,
III. CONCLUSION
For the reasons stated above, the court grants summary judgment as to the plaintiffs' claims for procedural due process premised upon the failure to provide predeprivation procedures and bias, equal protection, and civil conspiracy. The court denies summary judgment as to the plaintiffs' claims for denial of postdeprivation procedures due to delay and First Amendment retaliation.
A separate order follows.
Related
Cite This Page — Counsel Stack
392 F. Supp. 3d 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saucon-valley-manor-inc-v-miller-paed-2019.