Ray v. Judicial Corr. Servs., Inc.

• Decision Date: 12 September 2017
• Docket Number: Case No.: 2:12–cv–02819–RDP
• Citation: 270 F.Supp.3d 1262
• Parties: Gina Kay RAY, et al., Plaintiffs, v. JUDICIAL CORRECTION SERVICES, INC., et al., Defendants.
• Court: U.S. District Court — Northern District of Alabama

270 F.Supp.3d 1262

Gina Kay RAY, et al., Plaintiffs,

v.JUDICIAL CORRECTION SERVICES, INC., et al., Defendants.

Case No.: 2:12–cv–02819–RDP

United States District Court, N.D. Alabama, Southern Division.

Signed September 12, 2017

Maurine C. Evans, Alexandria Parrish, Daniel P. Evans, G. Daniel Evans, The Evans Law Firm PC, Robert L. Wiggins, Jr, Wiggins Childs Quinn & Pantazis LLC, Birmingham, AL, Erwin Chemerinsky, Irvine, CA, for Plaintiffs.

Larry S. Logsdon, Michael L. Jackson, Wesley Kyle Winborn, Wallace Jordan Ratliff & Brandt, LLC, Birmingham, AL, Wilson F. Green, Fleenor & Green LLP, Tuscaloosa, AL, for Defendants.

R. DAVID PROCTOR, UNITED STATES DISTRICT JUDGE

MEMORANDUM OPINION

In the 19th century, American drinking establishments began offering free lunches to their patrons. Of course, the practice was designed to attract drinking customers, who, while they didn't pay for lunch, surely paid for their beer. This led a wiser consumer to observe that "there ain't no such thing as a free lunch." The phrase's application carries beyond restaurants and bars. It is a core economics principle. See Milton Friedman, There's No Such Thing as a Free Lunch (Open Court Publishing Co. 1975). In this case, Defendant Judicial Correction Services, Inc. ("JCS") offered something much more valuable than lunch to Alabama counties and municipalities. It offered "free" supervision of probationers and "free" collection of fines and court costs owed to courts. Moreover, it offered municipal courts throughout the state of Alabama "free" document drafting and "free" intake services (to be provided, of course, after the municipal court ruled upon a defendant's charge and crafted a sentence that included probation supervised by JCS). All of this, of course, at absolutely no cost to the counties, municipalities, and municipal courts which hired JCS. Or, so they thought. As it turns out, the services were provided without charge to the municipalities, but they were not free. In fact, the court is reminded of a different quote attributed to the inimitable Will Rogers: "It's not what you pay a man, but what he costs you that counts." AZ Quotes, http://www.azquotes.com/quote/249468 (last visited July 24, 2017).

I. Introduction

The named Plaintiffs in this action were sentenced to probation by the City of Childersburg Municipal Court ("Municipal Court") because they did not pay fines or court costs imposed by the Municipal Court on the date of sentencing. The Municipal Court directed Plaintiffs to remit $35 to $45 a month to JCS on top of the fines and court costs they were ordered to pay the court. Plaintiffs claim that they were not able to pay the fines and court costs, there never was a proper indigency determination, and they are now before the court to remedy alleged constitutional violations stemming from the probation procedures implemented by JCS on behalf of the Municipal Court.

This case is before the court on: (1) Plaintiffs' Motion for Partial Summary Judgment to Declare the City of Childersburg's (the "City") "Probation" Practice with JCS Unconstitutional as a Denial of Equal Protection (Doc. # 424); (2) Plaintiffs' Motion for Partial Summary Judgment Declaring the Contract between JCS & the City of Childersburg Void Ab Initio (Doc. # 426); (3) Plaintiffs' Motion for Partial Summary Judgment to Declare Void Probation Based Upon Non–Adjudicated Offenses and Blank Orders (Doc. # 545); (4) Defendants' JCS and Correctional Healthcare Companies, Inc. ("Correctional Healthcare") Motion for Summary Judgment on Claims Asserted by Gina Kay Ray (Doc. # 469); (5) Defendants' JCS and Correctional Healthcare Motion for Summary Judgment on Claims Asserted by Deunate Jews (Doc. # 522); and (6) Defendants' JCS and Correctional Healthcare Motion for Summary Judgment on Claims Asserted by Plaintiffs Timothy Fugatt and Kristy Fugatt (Doc. # 535). The parties have fully briefed the motions, and they are under submission. (See Docs. # 425, 427, 470, 472–75, 500–505, 510, 523, 530, 536, 544, 546, 550, 556, 567, 573, 575, 577–78, 588, 590, 596–97). The court held oral argument regarding these motions on July 24, 2017.

After careful review, and for the reasons explained below, the court concludes that Plaintiffs' motions for partial summary judgment are due to be denied. Defendant Correctional Healthcare is due to be granted summary judgment on all claims. But, Defendant JCS is due to be granted summary judgment in part and denied summary judgment in part, as discussed in detail below.

II. The Rule 56 Evidence and the Undisputed Facts

The facts set out in this opinion are gleaned from the parties' submissions of facts claimed to be undisputed, their respective responses to those submissions, and the court's own examination of the evidentiary record. All reasonable doubts about the facts have been resolved in favor of the nonmoving party. See Info. Sys. & Networks Corp. v. City of Atlanta , 281 F.3d 1220, 1224 (11th Cir. 2002). These are the "facts" for summary judgment purposes only. They may not be the actual facts that could be established through live testimony at trial. See Cox v. Adm'r U.S. Steel & Carnegie Pension Fund , 17 F.3d 1386, 1400 (11th Cir. 1994).

A. Procedural History

In their Fourth Amended and Restated Complaint, Plaintiffs allege that Defendant JCS entered into a "joint policy and practice" with Alabama municipalities, such as the City, that violated both their statutory and constitutional rights. (Doc. # 305 at ¶ 14). They state that JCS implemented a "highly systemized and uniform" approach for providing services to municipalities and municipal courts. (Id. at ¶ 16). Under the system described in the Fourth Amended Complaint, Defendant JCS conducted "many administrative and judicial functions of the municipal court." (Id. at ¶ 18). As compensation for performing those functions, JCS received a monthly probation fee of $35 to $45 a month and a set-up fee of $10, both of which were included in the probation orders provided to the municipal court by JCS. (Id. at ¶¶ 21, 96).

Plaintiffs contend that the City unlawfully delegated "the collection of court fines, costs[,] and private fees" to JCS. (Id. at ¶ 93). In a contract signed by the mayor, the City purportedly bound the Municipal Court to establish a probation fee and a set-up fee in each probation order. (Id. at ¶¶ 94, 99). Thereafter, JCS designated certain employees as "probation officers" and allowed them to use a privately-issued badge to collect fees, fines, and court costs. (Id. at ¶ 92). Under the alleged practices of the Municipal Court, every defendant who was unable to immediately pay all fines and costs imposed by the court was placed on probation under the supervision of JCS. (Id. at ¶¶ 97–98). "This [was] routinely done with no investigation into the indigency of the individual or the reasons for their inability to pay the fine and costs." (Id. at ¶ 22). Moreover, JCS's employees allegedly threatened to revoke an individual's probation, increase the fines and costs owed by a probationer, or increase the jail time a probationer faced if he or she was not able to pay JCS. (Id. at ¶ 110).

Plaintiffs present five claims for monetary damages against Defendants JCS, CHC Companies, Inc. ("CHC Companies"),¹ and Correct Care Solutions, LLC ("Correct Care") under 42 U.S.C. § 1983, and also seek declaratory and injunctive relief. Plaintiffs first allege that JCS, CHC Companies, and Correct Care violated their due process rights through the post-adjudication supervision system provided to the Municipal Court. (See id. at ¶¶ 89–119). Plaintiffs point to several features of JCS's policies and practices as violations of their due process rights, including: (1) the incarceration of individuals for failing to pay fines, fees, and costs owed (id. at ¶ 100); (2) the institution of charges against probationers for "failure to obey a court order" ("FTOCO") if the probationer could not pay the fines and fees owed to JCS and the Municipal Court (id. at ¶ 101); (3) the issuance of arrest warrants for individuals based on FTOCO charges (id. at ¶ 103); (4) JCS's failure to determine whether the named Plaintiffs were indigent or to determine why they could not pay the amounts owed, despite the fact that they were indigent when FTOCO charges were instituted against them (id. at ¶¶ 103–04); (5) the failure to conduct delinquency or probation hearings before incarceration (id. at ¶ 110); (6) the imposition of fines, fees, and court costs exceeding the jurisdictional maximum of $500 for municipal courts (id. at ¶ 111); (7) the imposition of terms of probation exceeding two years (id. ); and (8) the failure to provide "adequate notice of the nature of any lawful charge" (id. at ¶ 113). Moreover, Plaintiffs contend that JCS violated Plaintiff Jews's due process rights by collecting costs and fees from him when the charges against him had been dismissed by the Municipal Court. (Id. at ¶ 118).

Second, Plaintiffs allege that JCS, CHC Companies, and Correct Care violated their Fourth Amendment rights against unreasonable seizure by instituting a system under which probationers were arrested and detained for failing to pay fines and fees. (Id. at ¶¶ 158–67). They allege that JCS's probation system deprived the Municipal Court's probationers of a judicial hearing to determine whether the probationers had willfully refused to pay fines and fees owed to JCS and the Municipal Court. (Id. at ¶ 161). Moreover, they claim that JCS sought arrest warrants against all named Plaintiffs when it knew that the Plaintiffs could not pay the fines and fees imposed against them. (Id. at ¶ 164). According to the Fourth Amended Complaint, all of the named Plaintiffs were arrested and detained pursuant to this unconstitutionalprocess implemented by JCS. (Id. at ¶ 166).

Third, Plaintiffs allege that JCS, CHC Companies, and Correct Care violated their Sixth Amendment rights to counsel by implementing a policy or practice that "tr...