L.K. v. Gregg, CX-87-949

• Decision Date: 10 June 1988
• Docket Number: No. CX-87-949,CX-87-949
• Citation: 425 N.W.2d 813
• Parties: L.K., et al., Petitioners, Appellants, v. William GREGG, in his capacity as Commissioner of Veterans Affairs, et al., Respondents.
• Court: Minnesota Supreme Court

Page 813

425 N.W.2d 813

L.K., et al., Petitioners, Appellants, v. William GREGG, in his capacity as Commissioner of Veterans

Affairs, et al., Respondents.

No. CX-87-949.

Supreme Court of Minnesota.

June 10, 1988.

Syllabus by the Court

1. Allegation that actions of state officials, acting in their official capacities, threatened violation of plaintiffs' federal due process rights was sufficient to notify the state that it was defending a claim under 42 U.S.C. § 1983 (1982) even though the statute was not specifically mentioned in the pleadings.

2. Attorney fees' award is available pursuant to 42 U.S.C. § 1988 (1982) under law of the case holding that plaintiffs were entitled, under due process clause of the federal Constitution, to contested case hearings prior to any deprivation of state-created property right, i.e., residence at state veterans home.

M. Francesca Chervenak, Laurie N. Davison, Kathleen M. Davis, Minneapolis, for petitioners, appellants.

Merwin Peterson, Asst. Atty. Gen., St. Paul, for respondents.

Elizabeth M. Schmidt, Edina, amicus curiae, for NAACP.

Carolyn Chalmers, Minneapolis, amicus curiae, for Legal Aid and Defender Assoc.

Mark A. Bohnhorst, St. Paul, amicus curiae, for Homer Jarvis.

Mary L. Stanislav, Asst. Atty. Gen., St. Paul, amicus curiae, for Com'r of Human Services.

Heard, considered and decided by the court en banc.

YETKA, Justice.

Appellants, current and former residents of the Minnesota Veterans Home, appeal from the court of appeals' reversal of an award of attorney fees pursuant to 42 U.S.C. § 1988 (1982). We reverse and award attorney fees.

The award of fees is based on the work of appellants' attorneys in L.K. v. Gregg, 380 N.W.2d 145 (Minn.App.), petition for rev. denied (Minn. Mar. 14, 1986) (hereinafter Gregg I ), a prior action for declaratory and injunctive relief. In Gregg I, the veterans sought to prevent the home from discharging or transferring them without promulgating rules or granting pre-deprivation hearings. The veterans claimed that the home's proposed procedures and inadequate notice violated Minnesota statutes and their right to due process of law as guaranteed by the United States and Minnesota Constitutions. In the prior case, the court of appeals had ordered the trial court to enter judgment for the veterans, granting substantially all the requested relief. This court denied respondents' petition for further review. The district court, on remand, entered judgment for the veterans and granted their motion for attorney fees. Respondents appealed and the court of appeals reversed the fee award. The veterans' petition for further review was then granted by this court.

Because the availability of attorney fees under section 1988 is based on the result in Gregg I, we begin with an analysis of the underlying action, the result and the rationale for the court's decision. Before proceeding with our analysis, however, we note that our denial of the petition for further review in Gregg I should not be construed as an expression of our approval of either the result or its supporting rationale. As we have stated, "denial of a petition for further review means no more than that the supreme court has declined, at that time and for whatever undisclosed reasons, to consider the matter." Murphy v. Milbank Mut. Ins. Co., 388 N.W.2d 732, 739 (Minn.1986). See also Mattson v. Underwriters at Lloyds of London, 414 N.W.2d 717, 722 n. 9 (Minn.1987). Thus, we express no opinion regarding the correctness of the court's resolution of the constitutional question in Gregg I. However, the underlying issue, which is the basis of the attorney fees in the present case, was decided in Gregg I and must now be accepted as the law of the case. We will not re-examine nor will we allow the parties to relitigate the same issue on this appeal. See Minnesota Power & Light Co. v. Minnesota Pub. Util. Comm'n, 342 N.W.2d 324, 327 (Minn.1983); Lange v. Nelson-Ryan Flight Serv., Inc., 263 Minn. 152, 155, 116 N.W.2d 266, 269 (1962). While we may not necessarily agree with the result in Gregg I, we, as well as the parties, are bound. Therefore, we begin with a discussion of Gregg I.

I.

The case began in 1984 when, due to space shortages and an increasing need for nursing home care, the legislature authorized the Commissioner of Veterans Affairs (respondent Gregg) to convert a residential building at the home from a domiciliary to a nursing care facility. Minn. Laws 1984, ch. 654, art. 2, § 19(b). The conversion required the transfer or discharge of the veterans who were currently residing in the building.

Appellants are disabled or elderly veterans who reside or have resided at the Minnesota Veterans Home. Respondents are William Gregg, Commissioner of Veterans Affairs, and Charles Turnbull, Administrator of the home. The home was created by Minnesota statute and is operated by the Minnesota Department of Veterans Affairs as a residence for veterans who meet statutory requirements. See Minn.Stat. § 198.01, et seq. (1984).

On August 10, 1984, the home's administrator (respondent Turnbull) sent a letter to selected residents notifying them that they would be discharged or transferred "between now and September 12, 1984," approximately 1 month later. The letter further said that a planning session would be held "within two weeks." In addition, the letter indicated that, if the resident was dissatisfied after the planning session, he could "petition for review" to a review committee. The review committee, however, did not exist at the time the suit was filed. No specific procedures for appeal were set out.

The Minnesota Department of Health notified the veterans home that the original notice was inadequate under the Patient's Bill of Rights, Minn.Stat. § 144.651, subd. 29 (1986). Thus, a second notice was sent, giving the necessary 30-day notice of the transfer or discharge, but giving no further specific information about appeal rights.

On August 28, 1984, four of the veterans filed an action in Hennepin County District Court challenging the transfer/discharge proceedings. The veterans alleged, inter alia, that the inadequate notice received and the procedures proposed violated their rights under Minnesota statutes and would deprive them of due process of law as guaranteed by the fourteenth amendment of the United States Constitution and article I, section 7 of the Minnesota Constitution. The veterans further alleged that they were entitled to a hearing, under due process, prior to their transfer/discharge under the fourteenth amendment. Finally, they claimed that, under the Minnesota Administrative Procedures Act, Minn.Stat. § 14.02, subd. 3 (1984) (MAPA), the hearing required by the constitution must be a contested case hearing under MAPA, Minn.Stat. § 14.57, et seq. (1984). The veterans sought declaratory and injunctive relief, including: a declaration that the lack of proper procedures and the inadequate notice violated their federal due process rights; an order that respondents grant contested case hearings prior to discharge; a temporary and permanent injunction prohibiting discharge/transfer until rules had been promulgated and contested case hearings held; and attorney fees pursuant to 42 U.S.C. § 1988 (1982). The complaint did not specifically allege that relief was requested pursuant to 42 U.S.C. § 1983 (1982).

After the suit was filed, respondents sent a third letter, extending the transfer/discharge date to September 30, 1984. The letter specifically stated that this extension was a result of this lawsuit. On September 27, 1984 (1 day before the veterans' motion for a temporary restraining order and temporary injunction was scheduled), respondents issued written review procedures. On October 2, 1984, the district court denied the veterans' request for a temporary injunction and class certification, but granted a temporary restraining order enjoining discharge or transfer pending further order of the court. Respondents did not object to entry of the temporary restraining order.

In January 1985, the veterans moved for partial summary judgment. Respondents subsequently made a cross-motion for summary judgment. In April 1985, the district court granted respondents' motion solely on the ground that the court lacked jurisdiction. The trial court did not reach the merits of any of the federal or state claims.

The veterans appealed the denial of summary judgment and the earlier denial of class certification to the court of appeals. The court reversed the district court. Gregg I, 380 N.W.2d 145. The court of appeals held: (1) respondent Gregg was required to promulgate rules regarding discharge/transfer under Minn.Stat. § 198.06 (1984); (2) respondent Turnbull was not authorized to discharge/transfer any residents except pursuant to the required rules, Gregg I, 380 N.W.2d at 150; (3) the veterans possessed a due process right to a hearing before their discharge/transfer to protect their state-created entitlement to continued residency; and (4) under MAPA, the procedures required are contested case procedures. Id. at 150-51. This court denied respondents' petition for further review.

On remand, the district court entered judgment for the veterans and granted their motion for attorney fees pursuant to 42 U.S.C. § 1988 (1982) in the amount of $28,925.65.

Respondents appealed the award of attorney fees, although not the reasonableness or the amount, to the court of appeals. The sole issue presented was whether the veterans had prevailed in an action to enforce section 1983 and were, therefore, entitled to attorney fees under section 1988. The court of appeals reversed the award of fees in L.K. v. Gregg, 413 N.W.2d 833 (Minn.App.1987) (Gregg II ).

The court of appeals held that the veterans' pleading was insufficient to give notice of a claim under section 1983. Id. at 836-37. The court also held that attorney fees were unavailable because the veterans had prevailed only on...