South Eastern Human Development Corp. v. Heckler

731 F.2d 583
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 10, 1984
DocketNos. 83-1585, 83-1823
StatusPublished
Cited by1 cases

This text of 731 F.2d 583 (South Eastern Human Development Corp. v. Heckler) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Eastern Human Development Corp. v. Heckler, 731 F.2d 583 (8th Cir. 1984).

Opinion

HANSON, Senior District Judge.

The plaintiff below, South Eastern Human Development Corporation, is a nonprofit corporation that runs social service programs in South Dakota. Defendants below represent the State of South Dakota and the federal government. In the proceedings below, plaintiff sought to compel the federal government to provide it funding. The district court ordered the federal government to provide plaintiff $57,842. 560 F.Supp. 925. Defendants appeal. We vacate the district court’s order and remand for further proceedings consistent with this opinion.

I. FACTS

This case has a long history, including a prior appeal to this court. But to begin at the beginning: In fiscal year 1981 the plaintiff received federal funds under Title II of the Economic Opportunity Act of 1964 (EOA), 42 U.S.C. §§ 2701-29961 (1976) (repealed 1981). Title II of the EOA provided federal financial assistance directly to local “community action agencies” for social service programs. 42 U.S.C. §§ 2781, 2790, 2808 (1976) (repealed).

In 1981, Title II of the EOA was replaced with the Community Services Block Grant Program of the Omnibus Budget Reconciliation Act of 1981 (OBRA), Pub.L. No. 97-35, 95 Stat. 357. 42 U.S.C. §§ 9901-9912(a). The Community Services Block Grant Program provides grants to states for social services, 42 U.S.C. § 9901, and is one of numerous block grant programs established by OBRA to replace federal programs repealed by OBRA, see South Eastern Human Development Corp. v. Schweiker, 687 F.2d 1150, 1151 (8th Cir. 1982); OBRA §§ 116, 301, 551-596, 901, 1741(b)(1), 2192, 2352; 46 Fed.Reg. 48,582 (1981) (summary of block grant programs to be administered by the Secretary of Health and Human Services).

Acting under OBRA, the Secretary of Health and Human Services (the Secretary) made a community services block grant to South Dakota for fiscal year 1982. However, the State chose not to provide funding to plaintiff.

Plaintiff brought an action alleging that the Secretary’s community services block grant to South Dakota was improper because the State had failed to meet certain of OBRA’s requirements for a community services block grant. This court determined that South Dakota had failed to qualify for community services block grant funds for the first two quarters of fiscal year 1982. Schweiker, 687 F.2d 1150.

At this point § 1743(b) of OBRA, a transition provision, became applicable. Under § 1743(b), if a state fails to qualify for community services block grant funds for fiscal year 1982, the money that would have been given to the state as a block grant is distributed within the state pursuant to the otherwise repealed provisions of the EOA.

Having found that South Dakota failed to qualify for community services block grant funds, this court remanded the case with directions that the district court order the Secretary to proceed under OBRA § 1743(b). Schweiker, 687 F.2d at 1157. [585]*585The district court so ordered in an amended judgment. Pursuant to the district court’s order, the Secretary awarded a grant to plaintiff of $57,842.

At this point a new hitch developed. Title II of the EOA provided that a grant by the Secretary was subject to veto by the governor of the recipient’s state. 42 U.S.C. § 2834 (1976) (repealed). Claiming authority under this provision of the EOA by way of OBRA § 1743(b), the Governor of South Dakota vetoed the grant to plaintiff. Under the EOA veto provision, the Governor’s veto could be overridden by the Secretary. However, the Secretary sustained the Governor’s veto.

Plaintiff moved the district court for a writ of sequestration and an order of contempt against defendants. Plaintiff apparently conceded that the Governor had the power to veto the Secretary’s grant but challenged the Governor’s veto and the Secretary’s sustainment of it on both substantive and procedural grounds.

Raising the issue on its own, the district court held that the Governor had no power to veto the Secretary’s grant because the Governor’s EOA veto was inapplicable under OBRA § 1743(b). While declining to enter an order of sequestration or contempt, the court ordered the Secretary to issue a letter of credit for $57,842 to plaintiff.

II. DISCUSSION

The proceedings now subject to review were initiated by plaintiff’s motion for a writ of sequestration and an order of contempt under Federal Rule of Civil Procedure 70. We question whether the issues raised could properly be addressed under Rule 70. Rule 70 provides for certain remedies, including sequestration and contempt, when a party violates a direction and a judgment to perform a “specific act.” Fed.R.Civ.P. 70. With respect to the issues raised, we question whether the amended judgment1 is sufficiently specific to support a proceeding under Rule 70. However, the district court and the parties have treated plaintiff’s Rule 70 motion as a motion for a writ in the nature of mandamus to review the Secretary’s action under OBRA § 1743(b). Therefore, we will also treat it as such.

The district court held that the Governor’s EOA veto was inapplicable under OBRA § 1743(b). We disagree.

This court’s opinion in the prior appeal should not be read as deciding whether the Governor’s EOA veto applies under OBRA § 1743(b) because the issue was not then before the Court. The issue in the prior appeal was whether the State had failed to qualify for community services block grant funds so as to make § 1743(b) of OBRA applicable. See Schweiker, 687 F.2d at 1151. The issue of the Governor’s EOA veto under § 1743(b) had not even arisen at the time of the prior appeal.

To determine whether the Governor’s EOA veto applies under OBRA § 1743(b), we must look to the intent of Congress in enacting § 1743(b). The House Conference Report on OBRA states as follows with respect to § 1743(b):

The conferees intend that until a State has submitted its certification [i.e., qualified for a block grant], the appropriate Federal agencies shall use that portion of block grant funds not yet claimed by the State to continue those categorical programs operating in the State in FY 1981 for which the State has not yet assumed responsibility. This is to be done in such a manner that, when FY 1981 and FY 1982 funding is compared, each such program not assumed by the State shall receive the same percentage reduction or increase in its funding. The Federal agency shall use the same method of distributing funds as was used in FY [586]

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
731 F.2d 583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-eastern-human-development-corp-v-heckler-ca8-1984.