Swan v. Stoneman

635 F.2d 97, 1980 U.S. App. LEXIS 13036
CourtCourt of Appeals for the Second Circuit
DecidedOctober 17, 1980
DocketNo. 1080, Docket 79-7729
StatusPublished
Cited by18 cases

This text of 635 F.2d 97 (Swan v. Stoneman) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swan v. Stoneman, 635 F.2d 97, 1980 U.S. App. LEXIS 13036 (2d Cir. 1980).

Opinion

KEARSE, Circuit Judge:

The action giving rise to this appeal was commenced by plaintiff John Swan on February 2, 1979, seeking declaratory and in-junctive relief under 42 U.S.C. § 1983 on behalf of himself and all others similarly situated, on the grounds that certain prac[99]*99tices and procedures of the Vermont Department of Social and Rehabilitation Services deprived the purported class of rights under the federal Rehabilitation Act of 1973 and the Due Process Clause of the Fourteenth Amendment. Jurisdiction was alleged under 28 U.S.C. §§ 1343(3) and (4) (1976).1 On May 24, Paul E. Ambrose, Richard W. Bowley and Linda J. Gaudette moved for leave to intervene pursuant to Fed.R.Civ.P. 24(b). Three days later, Swan died.

On September 12, 1979, the district court denied class certification and granted defendant’s motion to dismiss on the grounds that the deceased plaintiff could not represent the class, that the court lacked jurisdiction over the proposed claims of Bowley and Gaudette, and that Ambrose had failed to exhaust state administrative remedies. Since we conclude that the exhaustion doctrine does not bar Ambrose’s due process claim, we reverse the dismissal as to Am-brose and remand to the district court for further proceedings.

I

The Rehabilitation Act of 1973 (the “Act”), 29 U.S.C. § 701 et seq. (1976 and Supp. II 1978), established a program to provide federal funds, through state agencies, for the training of physically or mentally handicapped persons, with a view to enabling such persons to obtain gainful employment. The Act defines a handicapped individual, for purposes of rehabilitation services, as

any individual who (i) has a physical or mental disability which for such individual constitutes or results in a substantial handicap to employment and (ii) can reasonably be expected to benefit in terms of employability from vocational rehabilitation services....

29 U.S.C. § 706(7)(A).2 Both the Act and the regulations promulgated thereunder by the Secretary of Health, Education, and Welfare (the “Secretary”), envision that there may be an extended period of evaluation, not exceeding eighteen months, during which rehabilitation services may be rendered with the aid of federal funds, before a determination is made as to the reasonable expectation that a given handicapped individual would benefit from vocational rehabilitation services. 29 U.S.C. §§ 706 (5)(G), 723(a)(1), 731; 45 C.F.R. § 1361.36 (1979).

A state seeking funding under the Act must, inter alia, submit a plan and designate a state agency responsible for supervising and administering the plan. 29 U.S.C. § 721(a)(1)(A). Vermont has empowered its Department of Social and Rehabilitation Services (the “Department”) to provide vocational rehabilitation for disabled persons and to “[cjooperate with appropriate federal agencies in receiving federal funds in support of programs which the department administers.” Vt.Stat.Ann. tit. 33, § 2595 (Supp.1979). The Department’s Vocational Rehabilitation Division (“VRD”) is responsible for administering Vermont’s vocational rehabilitation program.

Under the Vermont plan, VRD may classify applicants as eligible or ineligible for rehabilitation services principally on the basis of their filed applications; or it may place them in an “extended evaluation” category for up to eighteen months. For applicants in the extended evaluation category, funding is provided for rehabilitation services during the evaluation period, giving VRD a better opportunity to assess whether such services are likely to result in employability.

The Plaintiff and the Intervenors

Swan was a man in his 30’s who had suffered residual brain damage following [100]*100removal of a brain tumor in 1974. In May 1977, Swan began rehabilitation therapy at the Woodstock Learning Clinic in Woodstock, Vermont, and applied to VRD for rehabilitation services. On June 23, 1977, VRD certified Swan for an extended evaluation period of up to eighteen months, and thereafter created an individual rehabilitation program for him and paid for his therapy sessions at Woodstock. In early November 1978, a VRD counselor advised Swan and his guardian, orally and by letter, that while Swan had made considerable progress in the program, his organic impairments were such that employability did not appear to be a reasonable possibility within the near future, and that VRD had therefore decided to discontinue Swan’s rehabilitation program as of December 15, 1978. VRD’s letter informed Swan that he could appeal from this decision, but did not indicate that he had any right to a hearing prior to the effectiveness of the decision. Funding for Swan was eventually terminated on December 22, 1978.

Swan commenced this action in February 1979 against the Commissioner of the Department, (“Commissioner”), contending that by failing to provide “pretermination hearings”, VRD deprived him oforehabilitation benefits without due process of law.3 The Commissioner has contended, inter alia, that since Swan had never been certified as eligible, his eligibility was never “terminated.” Swan’s contention, however, appears to be that a hearing is required before termination of any benefits, even benefits provided pursuant to extended evaluation status.

Swan brought the suit as a class action, and on March 1,1979, he moved pursuant to Fed.R.Civ.P. 23(b), for certification of a class consisting of

All persons who have been declared ineligible for vocational rehabilitation services by defendant or his predecessors in office through the Vermont Vocational Rehabilitation Division since the effective date of the Rehabilitation Act of 1973, as well as all persons who are currently receiving vocational rehabilitation services from the defendant.

The proposed class would thus include all persons who, upon application, had been declared eligible, declared ineligible, or placed in extended evaluation status.

On May 24, 1979, Ambrose, Bowley and Gaudette moved for leave to intervene in the action as plaintiffs pursuant to Fed.R.Civ.P. 24(b), on the grounds that their claims were identical to those of Swan. They also sought to represent the class described by Swan.

Ambrose, in his proposed complaint, alleged that he had sought eligibility under VRD’s program four times between 1974 and 1978.

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Swan v. Stoneman
635 F.2d 97 (Second Circuit, 1980)

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Bluebook (online)
635 F.2d 97, 1980 U.S. App. LEXIS 13036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swan-v-stoneman-ca2-1980.