Case: Murphy v. Minnesota Department of Human Services

0:16-cv-02623 | U.S. District Court for the District of Minnesota

Filed Date: Aug. 3, 2016

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Case Summary

This case alleging that the Minnesota Department of Human Services' (DHS) reliance on group homes for individuals with disabilities made it difficult for individuals who wanted to live on their own to find housing. On August 3, 2016, individuals with disabilities who lived in group housing in Minnesota—including some who had tried to secure individual housing—as well as their guardians filed suit against the DHS and its commissioner. The plaintiffs alleged a violation of the Medicaid Act's fair…

On August 3, 2016, individuals with disabilities who lived in group housing in Minnesota—including some who had tried to secure individual housing—as well as their guardians filed suit against the DHS and its commissioner. The plaintiffs alleged a violation of the Medicaid Act's fair hearing requirements 42 U.S.C. § 1396a(a)(8) because their attempts to secure individualized housing services were unsuccessful, and they were unable to use disability waivers to access services that would allow them to be integrated in their community despite belonging to a class of persons who would qualify for such services. As of March 16, 2016, the DHS plans which outlined how housing would be provided ceased to mention individualized housing, or how to secure it. Plaintiffs further alleged a violation of their Due Process, Advance Notice and Fair Hearing rights under the Fourteenth Amendment, alleging they did not receive adequate information about hearings or have the ability to respond to or contest agency decisions about accessing integrated services. Plaintiffs also alleged that DHS violated Title II of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act by failing to offer and provide services to the plaintiffs in the most integrated setting appropriate to their needs and by unnecessarily segregating them in Community Residential Setting (CRS) facilities, instead of reasonably accommodating their requests to be integrated into the community.

The case was initially assigned to Judge Ann D. Montgomery and referred to Magistrate Judge Steven E. Rau, but was reassigned after only one week to Judge Donovan W. Frank and Magistrate Judge Becky R. Thorson.

On September 14, 2016, DHS and its commissioner moved to dismiss the case. The defendants argued that the plaintiffs lacked standing to bring claims due to a lack of provable injury, and that the case was not ripe under the Medicaid Act's reasonable promptness requirement because the definitions of home and community-based settings had not yet been established under federal regulations.

On February 23, 2017, the plaintiffs filed an amended complaint to add another named plaintiff with a disability and two legal guardians who would be capable of representing a class. The plaintiffs also added specific requests for the court to mandate DHS changes that would improve timely access to individualized housing services. In particular, the amended complaint includes a request for education efforts and service deadlines, and a periodic auditing process.

On February 27, 2017, the plaintiffs moved to certify a class of persons aged 18 and older who were eligible for and had received a disability waiver and who lived in a licensed CRS facility and had not been given the choice or opportunity to reside in the most integrated residential setting appropriate to their needs.

The parties held a settlement conference on April 25, 2017 but were unable to reach an agreement.

On May 18, 2017, the court granted in part and denied in part the defendants' motion to dismiss. The court dismissed all claims against DHS, but allowed all claims against the commissioner to proceed, explaining that claims against DHS were redundant where the commissioner was a party in her official capacity. In allowing the claims against the commissioner, the court reasoned that the plaintiffs were already experiencing segregation, and therefore had suffered an injury in fact and had standing. The court further concluded that because the plaintiffs had not been able to receive redress or due process in seeking changes to their living environments, regardless of DHS's definitional procedures, the claims were ripe for review. 260 F.Supp.3d 1084.

On September 29, 2017, Judge Donovan W. Frank certified a class of all adults that were eligible for and had received a disability waiver who lived in a licensed CRS and had not been given the choice to reside in the most integrated setting appropriate to their needs. 2017 WL 4355970.

On September 29, 2017, the defendants petitioned for permission to appeal to the U.S. Court of Appeals for the Eight Circuit under Federal Rule of Civil Procedure 23(f), which allows either party fourteen days to file a petition after an adverse class certification ruling by a District Court. The petition was denied on October 13, 2017 without explanation.

On November 15, 2017, the plaintiffs sought, and the U.S. Court of Appeals for the Eighth Circuit denied, permission to appeal, without a reason given.

On January 25, 2018 plaintiffs filed a motion for sanctions, motion for attorney fees, motion for discovery and motion for contempt, alleging the defendants had not complied with court orders regarding discovery.

On February 21, 2018 Magistrate Judge Becky R. Thorson granted in part and denied in part the motions for sanctions, attorney fees, discovery and contempt. The motions for discovery were granted, requiring defendants to provide all of the documents that the plaintiffs were seeking, because the requests were not unduly burdensome. The others were dropped without prejudice, with the assurances that defendants would now comply with discovery requests on the reasoning that sanctions could later be implemented if discovery did not occur.

Discovery disputes occurred repeatedly throughout the proceedings from 2018-2022, with several motions from both parties. The plaintiffs repeatedly raised issues regarding insufficient documentation provided by the defendants. Defendants repeatedly argued that supplying documentation regarding persons with disabilities would violate HIPPA confidentiality, and that plaintiffs' requests were too expansive and burdensome. The court compelled discovery under a series of protective orders to protect confidentiality, noting that defendants had not been in fully compliance. Defendants produced all discovery requested. Plaintiffs later approached the court requesting sanctions because too much discovery was produced, too last-minute for them to effectively prepare, but the court denied any motions for sanctions against defendants.

On November 8, 2018, plaintiffs submitted a letter withdrawing their demand for a jury trial. On November 9, 2018, defendants submitted a letter stating they did not object. On November 15, 2018, defendant filed a motion for summary judgment, seeking a judgement in her favor on all claims before the court. The defendant also moved to decertify the class. The same day, plaintiffs filed a motion for partial summary judgement, seeking a declaratory judgment that the defendant was violating the Medicaid Act by not providing services with reasonable promptness and violating Plaintiff's Fourteenth Amendment and Medicaid due process rights, because class members could go months or years without hearing the status of their requests for individualized housing. They also sought declaratory judgment holding that the defendant was violating the Americans with Disabilities Act and Rehabilitation Act, and they sought injunctive relief requiring the defendant to implement policies that would ensure every Disability Waiver recipient in a state facility receive information about and access to individualized housing services.

On January 31, 2019, Magistrate Judge Becky R. Thorson ordered a settlement conference for the parties. Settlement talks continued through March 15, 2019, leading Judge Donovan W. Frank to vacate the trial-ready date of April 15, 2019. The settlement talks ultimately proved unsuccessful.

On July 26, 2019, Judge Donovan W. Frank denied defendant's November 15, 2018, motion to decertify the class, holding that a proposed injunction or other remedy would give every class member an increased opportunity to live in the most integrated setting possible, regardless of whether or not they had been denied in the past.

The court denied defendants motion for summary judgement on September 27, 2019, on the grounds that at least 192 vulnerable people in Minnesota had been harmed by defendant's policies and practices, so a system-wide remedy was needed. He partially granted plaintiffs' motion for summary judgement, holding that defendant's policy violated Due Process rights under the Fourteenth Amendment and the Medicaid Act's advance notice and fair hearing requirements under 42 U.S.C. §1983, because plaintiffs were not heard at a meaningful time in a meaningful manner. He denied granting an injunction regarding the state Medicaid policies, instead directing the parties to jointly revise the policies to be sufficiently clear and mutually agreeable. 421 F.Supp.3d 695.

On April 5, 2022, the case was scheduled for a July 11, 2022, bench trial. On April 22, 2022, Magistrate Judge Becky R. Thorson ordered a final settlement conference be held by the parties before June 17, 2022. On June 2-3, 2022, the parties participated in a two-day mediation with the Honorable James M. Rosenbaum and reached a consensus on settlement agreement terms. On June 10, 2022, the parties emailed the court indicating they had reached a settlement and on June 13, 2022, Judge Donovan W. Frank cancelled the document deadlines and hearing.

On July 1, 2022, plaintiffs moved for approval of a class action settlement. And, on July 27, 2022, plaintiffs submitted an unopposed motion for preliminary approval of a class action settlement agreement which the court granted the same day. The settlement required defendants to change the administration of the Disability Waiver system and provide class members who wanted to move to individualized homes with the information and access to services that would allow them to do so. The Minnesota Department of Human Services was also required to provide new training to assessors and case managers, including instructing assessors to inquire of residents in congregate settings if they are interested in moving, and provide services if appropriate. The settlement also provided for additional assistance for one of the individual plaintiffs, as well as recovery of plaintiffs' costs and attorneys' fees, and will remain in effect for 36 months from the court's final approval of the settlement.

	Document
1 0:16-cv-02623	Class Action Complaint and Request for Injunctive Declaratory Relief, Jury Trial Demanded	Aug. 3, 2016	Aug. 3, 2016 Complaint
33 0:16-cv-02623	First Amended Class Action Complaint and Request for Injunctive Declaratory Relief, Jury Trial Demanded Murphy v. Minnesota Department of Human	Feb. 23, 2017	Feb. 23, 2017 Complaint
54 0:16-cv-02623	Memorandum Opinion and Order	May 18, 2017	May 18, 2017 Order/Opinion 260 F.Supp.3d 1084
54 0:16-cv-02623	Memorandum Opinion and Order	May 18, 2017	May 18, 2017 Order/Opinion 260 F.Supp.3d 1084
99 0:16-cv-02623	Memorandum Opinion and Order	Sept. 29, 2017	Sept. 29, 2017 Order/Opinion 2017 WL 4355970
145 17-8028	Judgment Murphy v. Minnesota Department of Human U.S. Court of Appeals for the Eighth Circuit	Nov. 15, 2017	Nov. 15, 2017 Order/Opinion
146 17-8028	Mandate Murphy v. Minnesota Department of Human U.S. Court of Appeals for the Eighth Circuit	Nov. 15, 2017	Nov. 15, 2017 Order/Opinion
148 0:16-cv-02623	Order on Plaintiffs' Motion to Compel Regarding Plaintiffs' Third Set of Requests for Documents Murphy v. Piper	Nov. 20, 2017	Nov. 20, 2017 Order/Opinion
189 0:16-cv-02623	Order on Plaintiffs' Motion Pursuant to Rule 37 Murphy v. Minnesota Department of Human	Feb. 21, 2018	Feb. 21, 2018 Order/Opinion
661 0:16-cv-02623	Memorandum Opinion and Order Murphy v. Harpstead	Sept. 27, 2019	Sept. 27, 2019 Order/Opinion 421 F.Supp.3d 695

ECF Number	Description	Date	Link Date / Link
1	COMPLAINT against All Defendants. ( Filing fee $ 400 receipt number AMNDC-5045023.) Filed by Dionne Swanson, Jenna Gordon, Marrie Bottelson, Tenner Murphy. Filer requests summons issued. (Attachments: # 1 Civil Cover Sheet) (Anthony, Joseph) (Entered: 08/03/2016) 1 Civil Cover Sheet View on PACER	Aug. 3, 2016	Aug. 3, 2016 Clearinghouse
2	TEXT ONLY ENTRY: CLERK'S NOTICE OF INITIAL CASE ASSIGNMENT. Case assigned to Judge Ann D. Montgomery per Civil Rights list and referred to Magistrate Judge Steven E. Rau. Please use case number 16-cv-2623 ADM/SER. (JDF) (Entered: 08/03/2016)	Aug. 3, 2016	Aug. 3, 2016 PACER
3	Summons Issued as to Emily Johnson Piper, Minnesota Department of Human Services. (JDF) (Entered: 08/03/2016)	Aug. 3, 2016	Aug. 3, 2016 PACER
4	SUMMONS Returned Executed by Dionne Swanson, Jenna Gordon, Marrie Bottelson, Tenner Murphy. Emily Johnson Piper served on 8/3/2016, answer due 8/24/2016. (Farley, Laura) (Entered: 08/05/2016)	Aug. 5, 2016	Aug. 5, 2016 PACER
5	SUMMONS Returned Executed by Dionne Swanson, Jenna Gordon, Marrie Bottelson, Tenner Murphy. Minnesota Department of Human Services served on 8/3/2016, answer due 8/24/2016. (Farley, Laura) (Entered: 08/05/2016)	Aug. 5, 2016	Aug. 5, 2016 PACER
6	ORDER OF REASSIGNMENT OF RELATED CASES. This case is reassigned to Judge Donovan W. Frank and Magistrate Judge Becky R. Thorson for all further proceedings. Judge Ann D. Montgomery, Magistrate Judge Steven E. Rau no longer assigned to case. NOTE: the new case number is 16-cv-2623 (DWF/BRT). Please use this case number for all subsequent pleadings. Signed by Judge Donovan W. Frank on 8/8/2016 and Judge Ann D. Montgomery on 8/10/2016. (lmb) (Entered: 08/10/2016)	Aug. 10, 2016	Aug. 10, 2016 PACER
7	STIPULATION re 1 Complaint, (Stipulation to Extend Time to Answer or Otherwise Respond to Plaintiffs' Complaint) by Emily Johnson Piper, Minnesota Department of Human Services. (Welsh, Ian) (Entered: 08/22/2016)	Aug. 22, 2016	Aug. 22, 2016 PACER
8	CERTIFICATE OF SERVICE ON PROPOSED ORDER by Emily Johnson Piper, Minnesota Department of Human Services re 7 Stipulation (to Extend Time to Answer or Otherwise Respond to Plaintiffs' Complaint) (Welsh, Ian) (Entered: 08/22/2016)	Aug. 22, 2016	Aug. 22, 2016 PACER
9	ORDER TO EXTEND TIME TO ANSWER OR OTHERWISE RESPOND TO PLAINTIFFS' COMPLAINT: Emily Johnson Piper answer due 9/14/2016; Minnesota Department of Human Services answer due 9/14/2016. Signed by Magistrate Judge Becky R. Thorson on 8/23/16. (AKL) (Entered: 08/23/2016)	Aug. 23, 2016	Aug. 23, 2016 PACER
10	MOTION to Dismiss/General by Emily Johnson Piper, Minnesota Department of Human Services. (Welsh, Ian) (Entered: 09/14/2016)	Sept. 14, 2016	Sept. 14, 2016 PACER
11	NOTICE OF HEARING ON MOTION 10 MOTION to Dismiss/General : Motion Hearing set for 1/6/2017 11:00 AM in Courtroom 7C (STP) before Judge Donovan W. Frank. (Welsh, Ian) (Entered: 09/14/2016)	Sept. 14, 2016	Sept. 14, 2016 PACER
12	MEMORANDUM in Support re 10 MOTION to Dismiss/General filed by Emily Johnson Piper, Minnesota Department of Human Services. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Welsh, Ian) (Entered: 09/14/2016)	Sept. 14, 2016	Sept. 14, 2016 PACER
13	AFFIDAVIT of Ian M. Welsh in SUPPORT OF 10 MOTION to Dismiss/General filed by Emily Johnson Piper, Minnesota Department of Human Services. (Attachments: # 1 Exhibit(s) 1-7)(Welsh, Ian) (Entered: 09/14/2016)	Sept. 14, 2016	Sept. 14, 2016 PACER
14	MEET and CONFER STATEMENT re 10 Motion to Dismiss/General filed by Emily Johnson Piper, Minnesota Department of Human Services. (Welsh, Ian) (Entered: 09/14/2016)	Sept. 14, 2016	Sept. 14, 2016 PACER
15	CERTIFICATE OF SERVICE ON PROPOSED ORDER by Emily Johnson Piper, Minnesota Department of Human Services re 10 MOTION to Dismiss/General (Welsh, Ian) (Entered: 09/14/2016)	Sept. 14, 2016	Sept. 14, 2016 PACER
16	AMENDED NOTICE of Hearing on Motion: 10 MOTION to Dismiss/General : Motion Hearing set for 1/20/2017 11:00 AM in Courtroom 7C (STP) before Judge Donovan W. Frank. (Welsh, Ian) (Entered: 09/16/2016)	Sept. 16, 2016	Sept. 16, 2016 PACER
17	NOTICE of Pretrial Conference: Pretrial Conference set for 10/27/2016 04:00 PM in Courtroom 6A (STP) before Magistrate Judge Becky R. Thorson. (Attachments: # 1 Consent Form)(AKL) (Entered: 09/19/2016)	Sept. 19, 2016	Sept. 19, 2016 PACER
18	CERTIFICATE OF SERVICE ON PROPOSED ORDER by Marrie Bottelson, Jenna Gordon, Tenner Murphy, Dionne Swanson re 10 MOTION to Dismiss/General (Perl, Justin) (Entered: 09/28/2016)	Sept. 28, 2016	Sept. 28, 2016 PACER
19	STIPULATION re 10 MOTION to Dismiss/General To Extend Time To Respond to Defendants' Motion to Dismiss by Marrie Bottelson, Jenna Gordon, Tenner Murphy, Dionne Swanson. (Perl, Justin) (Entered: 09/28/2016)	Sept. 28, 2016	Sept. 28, 2016 PACER
20	ORDER TO EXTEND TIME TO RESPOND TO DEFENDANTS' MOTION TO DISMISS. The time for Plaintiffs to respond to Defendant's Motion to Dismiss is extended to October 26, 2016. Signed by Judge Donovan W. Frank on 9/28/2016. (BJS) (Entered: 09/28/2016)	Sept. 28, 2016	Sept. 28, 2016 PACER
21	REPORT Joint Rule 26(f) Report by Marrie Bottelson, Jenna Gordon, Tenner Murphy, Dionne Swanson. (Burke, Sean) (Entered: 10/24/2016)	Oct. 24, 2016	Oct. 24, 2016 PACER
22	MEMORANDUM in Opposition re 10 MOTION to Dismiss/General filed by All Plaintiffs. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Burke, Sean) (Entered: 10/26/2016)	Oct. 26, 2016	Oct. 26, 2016 PACER
23	Minute Entry for proceedings held before Magistrate Judge Becky R. Thorson: Initial Pretrial Conference held on 10/27/2016. (AKL) (Entered: 10/31/2016)	Oct. 27, 2016	Oct. 27, 2016 PACER
24	Reply to Response to Motion re 10 MOTION to Dismiss/General filed by Emily Johnson Piper, Minnesota Department of Human Services. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Welsh, Ian) (Entered: 11/09/2016)	Nov. 9, 2016	Nov. 9, 2016 PACER
25	PRETRIAL SCHEDULING ORDER: Status Conference set for 1/26/2017 08:30 AM before Magistrate Judge Becky R. Thorson. Amended Pleadings due by 4/3/2017. Discovery due by 8/15/2017. Motions (non-disp) due 8/16/2017. Motions (disp) due by 2/1/2018. Ready for trial due by 7/2/2018. Signed by Magistrate Judge Becky R. Thorson on 11/9/16. (LPH) (Entered: 11/09/2016)	Nov. 9, 2016	Nov. 9, 2016 PACER
26	DOCUMENT FILED IN ERROR - DUPLICATE ENTRY - PRETRIAL SCHEDULING ORDER: Amended Pleadings due by 4/3/2017. Discovery due by 8/15/2017. Motions (non-disp) due 8/16/2017. Motions (disp) due by 2/1/2018. Ready for trial due by 7/2/2018. Signed by Magistrate Judge Becky R. Thorson on 11/9/2016. (MMP) Modified on 11/10/2016 (MMP). (Entered: 11/09/2016)	Nov. 9, 2016	Nov. 9, 2016 PACER
	NOTICE OF DOCKETING CORRECTION for 26 Scheduling Order - DUPLICATE ENTRY (MMP)	Nov. 10, 2016	Nov. 10, 2016 PACER
27	NOTICE of Appearance by Janine Wetzel Kimble on behalf of All Defendants. (Kimble, Janine) (Entered: 01/04/2017)	Jan. 4, 2017	Jan. 4, 2017 PACER
28	TEXT ENTRY ONLY ORDER: The parties have submitted letters regarding a discovery dispute. Both sides do not agree to resolve the dispute informally. Accordingly, if the parties are unable to resolve the dispute, formal motion practice will be required. Following a meaningful meet and confer, a motion on these issues must be brought no later than February 1, 2017. Briefs must not exceed 15 pages unless leave for additional pages is obtained. Signed by Magistrate Judge Becky R. Thorson. (Entered: 01/06/2017)	Jan. 6, 2017	Jan. 6, 2017 PACER
29	Minute Entry for proceedings held before Judge Donovan W. Frank: Motion Hearing held on 1/20/2017 re 10 MOTION to Dismiss/General filed by Minnesota Department of Human Services, Emily Johnson Piper. Matter under advisement; written order to issue. (Court Reporter Carla Bebault) (BJS) (Entered: 01/20/2017)	Jan. 20, 2017	Jan. 20, 2017 PACER
30	NOTICE of Withdrawal as Attorney of Laura A. Farley (Pincus, Steven) (Entered: 02/09/2017)	Feb. 9, 2017	Feb. 9, 2017 PACER
31	STIPULATION Allowing Plaintiffs to File First Amended Complaint by Marrie Bottelson, Jenna Gordon, Tenner Murphy, Dionne Swanson. Jointly Signed by Minnesota Department of Human Services. EXHIBIT A. (Burke, Sean) text Modified on 2/17/2017 (las). (Entered: 02/17/2017)	Feb. 17, 2017	Feb. 17, 2017 PACER
32	ORDER GRANTING PLAINTIFFS LEAVE TO FILE AMENDED COMPLAINT re 31 Stipulation. Signed by Magistrate Judge Becky R. Thorson on 2/22/2017. (las) (Entered: 02/22/2017)	Feb. 22, 2017	Feb. 22, 2017 PACER
33	AMENDED COMPLAINT against All Defendants. Filed by Dionne Swanson, Marrie Bottelson, Tenner Murphy. No summons requested. (Burke, Sean) (Entered: 02/23/2017)	Feb. 23, 2017	Feb. 23, 2017 Clearinghouse
34	TEXT ONLY NOTICE: As stated in the Order signed by Magistrate Judge Becky R. Thorson on 2/22/2017 (Doc. No. 32 ), the Defendants' pending Motion to Dismiss (Doc. No. 10 ) serves as the response to the Plaintiffs' First Amended Complaint (Doc. No. 33 ). (BJS) (Entered: 02/24/2017)	Feb. 24, 2017	Feb. 24, 2017 PACER
35	MOTION to Certify Class filed by Marrie Bottelson, Tenner Murphy, Dionne Swanson. (Burke, Sean) (Entered: 02/27/2017)	Feb. 27, 2017	Feb. 27, 2017 RECAP
36	NOTICE OF HEARING ON MOTION 35 MOTION to Certify Class : Motion Hearing set for 5/19/2017 11:00 AM in Courtroom 7C (STP) before Judge Donovan W. Frank. (Burke, Sean) (Entered: 02/27/2017)	Feb. 27, 2017	Feb. 27, 2017 RECAP
37	MEMORANDUM in Support re 35 MOTION to Certify Class filed by Marrie Bottelson, Tenner Murphy, Dionne Swanson. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Burke, Sean) (Entered: 02/27/2017)	Feb. 27, 2017	Feb. 27, 2017 PACER
38	AFFIDAVIT of Sean Burke in SUPPORT OF 35 MOTION to Certify Class filed by Marrie Bottelson, Tenner Murphy, Dionne Swanson. (Attachments: # 1 Exhibit(s) 1, # 2 Exhibit(s) 2, # 3 Exhibit(s) 3, # 4 Exhibit(s) 4, # 5 Exhibit(s) 5, # 6 Exhibit(s) 6)(Burke, Sean) (Entered: 02/27/2017)	Feb. 27, 2017	Feb. 27, 2017 PACER
39	MEET and CONFER STATEMENT re 35 Motion to Certify Class filed by Marrie Bottelson, Tenner Murphy, Dionne Swanson.(Burke, Sean) (Entered: 02/27/2017)	Feb. 27, 2017	Feb. 27, 2017 PACER

Case: Murphy v. Minnesota Department of Human Services

0:16-cv-02623 | U.S. District Court for the District of Minnesota

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