Shaw v. McMahon

197 Cal. App. 3d 417, 243 Cal. Rptr. 26, 1987 Cal. App. LEXIS 2481
CourtCalifornia Court of Appeal
DecidedDecember 31, 1987
DocketDocket Nos. A030459, A031366, A032866
StatusPublished
Cited by7 cases

This text of 197 Cal. App. 3d 417 (Shaw v. McMahon) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaw v. McMahon, 197 Cal. App. 3d 417, 243 Cal. Rptr. 26, 1987 Cal. App. LEXIS 2481 (Cal. Ct. App. 1987).

Opinions

Opinion

ANDERSON, P. J.

I. Introduction

Federal law provides that when unemployed parents who are the recipients of benefits from the federally funded aid to families with dependent children program (AFDC-U) receive a nonrecurring lump-sum of money it shall be treated as income, with the consequence that a fixed period of automatic ineligibility to receive such benefits is imposed based upon the size of the sum and the applicable AFDC-U monthly payment standard. (42 U.S.C. § 602 (a)(17); 45 C.F.R. § 233.20(a)(3)(ii)(F).) The major issue presented on these consolidated appeals is whether current provisions of the Welfare and Institutions Code1 (especially § 11157) and administrative regulations require the same result with respect to that version of the same program funded exclusively by the state (State-only AFDC-U). (§§ 11201, subd. (b), 11315, subd. (a).)

II. Background and Procedure

Petitioner Tamie Shaw (plaintiff) commenced this action by filing a verified petition for writ of mandamus together with a complaint for declar[421]*421atory and injunctive relief. She alleged that on February 29, 1984, one week after she received a $10,000 insurance settlement for her injuries in a 1980 automobile accident, her AFDC eligibility was terminated. When she applied for resumption of AFDC benefits two months later, “[h]er application was denied by a notice which stated that her receipt of the insurance settlement . . . rendered her ineligible for AFDC from April 1984 to October 1985” in accordance with Eligibility and Assistance Standard (EAS) 44-207.4. Plaintiff further alleged that this regulation was unlawful because it “violates” sections 11157 and 11201. Among the various forms of relief sought by plaintiff were a writ of mandamus compelling defendants2 “to provide State-only AFDC-U benefits to otherwise eligible families without regard to any period of ineligibility based on receipt of a lump sum" and an injunction prohibiting denial of benefits on a contrary basis.

After considering the written and oral arguments of the parties, the trial court issued a permanent injunction and a peremptory writ of mandamus as prayed by plaintiff. Defendants thereafter moved to set aside this decision on the grounds that a recent amendment to section 11157 “make[s] it clear that the lump-sum rule applies to both state only and federal share AFDC programs.” This motion was denied, the trial court ruling that the amendment did not validate application of the lump-sum rule to State-only AFDC-U benefits. A judgment ordering the injunctive and mandamus relief requested by plaintiff was subsequently entered. The court specifically noted in the judgment that “The provisions of this injunction are prohibitory, and shall not be stayed if an appeal is filed by defendants.”3

Defendants appealed from the judgment.4 Their petition for a writ of supersedeas and request for a stay of the judgment was denied by this court. [422]*422Pursuant to Code of Civil Procedure section 1097, plaintiff then moved the trial court for an order compelling defendants’ compliance with the judgment. The motion was granted and an order entered as requested. Defendants filed a timely notice of appeal from this order.5 The contentions on the judgment and the compliance order are discussed in separate chapters.

III. Review

A. The Judgment

By the time the trial court entered its judgment, the core of the controversy had boiled down to the interpretation of two versions of section 11157. Our task of reviewing the correctness of the trial court’s statutory constructions has been compounded by the fact that section 11157 was amended yet again during the pendency of these appeals. The rule that an injunction is to be evaluated according to the most current law governing at the time of an appeal’s resolution (McKinney v. Board of Trustees (1982) 31 Cal.3d 79, 85, fn. 1 [181 Cal.Rptr. 549, 642 P.2d 460]; Citizens for Non-Toxic Pest Control v. Department of Food & Agriculture (1986) 187 Cal.App.3d 1575, 1584 [232 Cal.Rptr. 729]) obliges us to consider section 11157 at each stage of its evolutionary development. Before doing so, however, it will be useful to place section 11157 in its context in the State-only AFDC-U scheme.

The AFDC program was initiated by Congress as part of the Social Security Act of 1935. (Pub.L. No. 271 (Aug. 15, 1935) 47 Stat. 620.) In 1961 the AFDC-U program was experimentally extended to authorize states to receive matching federal funds for a state-administered system. (Pub.L. No. 87-31 (May 8, 1961) 75 Stat. 75.) The experiment was apparently deemed a success, for the program was made permanent in 1968. (Pub.L. No. 90-248 (Jan. 2, 1968) 81 Stat. 821.) California elected to participate in this model of cooperative federalism. (See Stats. 1963, ch. 510, p. 1372; Stats. 1965, ch. 1784, p. 3977.) The state was thus obligated to comply with federal laws and regulations in order to receive federal funds. (See 42 U.S.C. § 604(a), (d); Lukhard v. Reed (1987) 481 U.S. 368 [95 L.Ed.2d 328, 107 S.Ct. 1807]; Shea v. Vialpando (1974) 416 U.S. 251, 253 [40 L.Ed.2d 120, 125, 94 S.Ct. 1746]; Darces v. Wood (1984) 35 Cal.3d [423]*423871, 880 [201 Cal.Rptr. 807, 679 P.2d 458].) A state is, however, free to adopt and implement a more liberal eligibility standard with respect to a State-only AFDC-U program. (See Engelman v. Amos (1971) 404 U.S. 23, 24 [30 L.Ed.2d 143, 144-145, 92 S.Ct. 181]; Darces v. Woods, supra, at pp. 894-895; Reyna v. McMahon (1986) 180 Cal.App.3d 220, 223 [225 Cal.Rptr. 405].) California has enacted its version of such a program. (§§ 11201, subd. (b), 11315, subd. (a); see in detail, post.)

The first version of section 11157 with which we must concern ourselves was enacted in late 1981. As relevant here, it read in pertinent part as follows: “To the extent required, as a condition for receipt of federal funds, by federal law, lump-sum payments of income, as defined by federal law, received by an applicant for or recipient of aid under Chapter 2 (commencing with Section 11200) shall be considered income in the month received and the family shall be ineligible for aid for the number of months that equals the sum of all income received during such month less all applicable income disregards divided by the standard of need applicable to the family . . . .” (Stats. 1982, First Ex. Sess., ch. 3, § 10, p. 6894.)

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Shaw v. McMahon
197 Cal. App. 3d 417 (California Court of Appeal, 1987)

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Bluebook (online)
197 Cal. App. 3d 417, 243 Cal. Rptr. 26, 1987 Cal. App. LEXIS 2481, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-mcmahon-calctapp-1987.