Slaughter v. Levine, Civ. 4-83-579.

• Citation: 621 F. Supp. 509
• Decision Date: 06 November 1985
• Docket Number: No. Civ. 4-83-579.,Civ. 4-83-579.
• Parties: Sharon SLAUGHTER, Helen Stewart and Kathryn Jenkins, Plaintiffs, v. Leonard LEVINE, in his capacity as Commissioner of the Minnesota Department of Public Welfare, Defendant and Third Party Plaintiff, v. Margaret HECKLER, in her capacity as Secretary, United States Department of Health and Human Services, Third Party Defendant.
• Court: U.S. District Court — District of Minnesota

621 F. Supp. 509

Sharon SLAUGHTER, Helen Stewart and Kathryn Jenkins, Plaintiffs, v. Leonard LEVINE, in his capacity as Commissioner of the Minnesota Department of Public Welfare, Defendant and Third Party Plaintiff, v. Margaret HECKLER, in her capacity as Secretary, United States Department of Health and Human Services, Third Party Defendant.

No. Civ. 4-83-579.

United States District Court, D. Minnesota, Fourth Division.

November 6, 1985.

Mary Grau, Legal Aid Society of Minneapolis, Inc., Minneapolis, Minn., for plaintiffs.

Hubert H. Humphrey, III, Atty. Gen., State of Minn., and Vicki Sleeper, Sp. Asst. Atty. Gen., St. Paul, Minn., for defendant and third party plaintiff.

Francis X. Hermann, Acting U.S. Atty., and Mary L. Egan, Asst. U.S. Atty., Minneapolis, Minn., and Lewis K. Wise, Wendy Kloner, Civil Div., Dept. of Justice, Washington, D.C., for third party defendant.

MEMORANDUM AND ORDER

MacLAUGHLIN, District Judge.

This matter is before the Court on plaintiffs' motion for contempt, or in the alternative for supplemental relief. Plaintiffs' motion for contempt will be denied. Plaintiffs' motion for supplemental relief will be denied in part and granted in part.

FACTS

This case returns to the Court for the fourth time. Plaintiffs are a class of persons claiming deprivation of AFDC benefits due to defendant's failure to adhere to federal regulations in administering the "lump sum rule," 42 U.S.C. § 602(a)(17). The lump sum rule mandates that AFDC beneficiaries in receipt of lump sum income, defined as income from a non-recurring source,¹ be removed from AFDC rolls for a period of months equal to the amount of the lump sum income divided by the standard of need applicable to the recipient. Id.

In Slaughter v. Levine, 598 F.Supp. 1035 (D.Minn.1984) (Slaughter I), the Court found that defendant had contravened federal regulations by failing to provide AFDC recipients with adequate notice of the lump sum rule and its effect on eligibility requirements. Specifically, the Court found that defendant had violated 45 C.F.R. § 206.10(a)(2)(i), which provides in relevant part that:

Applicants shall be informed about the eligibility requirements and their rights and obligations under the program. Under this requirement individuals are given information in written form, and orally as appropriate, about coverage, conditions of eligibility, scope of the program, and related services available, and the rights and responsibilities of applicants for and recipients of assistance. Specifically developed bulletins or pamphlets explaining the rules regarding eligibility and appeals in simple, understandable terms are publicized and available in quantity.

45 C.F.R. § 206.10(a)(2)(i). Accordingly, the Court enjoined defendant to mail notices (publicity notices) to current AFDC recipients explaining the lump sum rule. The Court further enjoined defendant to include publicity notices in the information which it provides to individuals who apply for AFDC benefits, and in the materials given to recipients at the time of their periodic six-month reevaluation for benefits. In addition, the Court enjoined defendant to prepare a notice (Quern notice) for mailing to all class members whose benefits had been terminated due to receipt of a lump sum for the purpose of informing them that they had the right to apply to defendant for corrective payments. Slaughter I, 598 F.Supp. at 1055.

Defendant subsequently brought a motion for reconsideration with respect to both the publicity notice and the Quern notice to class members. In Slaughter v. Levine, 605 F.Supp. 1242 (D.Minn.1985) (Slaughter II), the Court approved defendant's draft publicity notice with certain minor modifications. The Court further ordered defendant to "prepare a notice to the members of the class regarding the opportunity to apply for corrective payments," Slaughter II, 605 F.Supp. at 1249, and to provide a copy of such notice to plaintiffs' counsel before distributing it to the class. Id.

Defendant then appealed to the United States Court of Appeals for the Eighth Circuit, at the same time moving for a stay of the judgment of this Court pending appeal. In an unpublished order dated June 13, 1985 (Slaughter III), the Court denied defendant's stay motion. Defendant subsequently prepared and mailed to county welfare offices the publicity notice approved by the Court in Slaughter II. Defendant also prepared a draft Quern notice, submitting it to plaintiffs' counsel on July 31, 1985.

Plaintiffs now move the Court for an order finding defendant in contempt. Plaintiffs raise objection to both the publicity notice and Quern notice prepared by defendant. Plaintiffs also seek a court order directing the defendant to eliminate the "overpayment" of class member Kathryn Jenkins on the ground that Jenkins was not adequately notified of the lump sum rule. Finally, plaintiffs seek a "declaration" of the Court that Slaughter I mandates that class members who spent their lump sum income prior to notification of the lump sum rule are entitled to corrective payments from the defendant.

DISCUSSION

Publicity Notice

In Slaughter II, 605 F.Supp. 1242, the Court approved a draft publicity notice prepared by defendant, with certain minor modifications. See Slaughter II Appendix A, 605 F.Supp. at 1251-53 (text of the approved notice). On July 5, 1985, defendant sent publicity notices to county welfare offices with instructions to distribute them to AFDC applicants and recipients at six-month intervals. The notices sent on that date, however, were not identical to the notice approved by the Court in Slaughter II. Modification of the approved notice was made necessary, defendant contends, by certain amendments to Minnesota's AFDC program enacted by the Minnesota Legislature in the 1984-85 session.²

Plaintiffs do not dispute that the 1985 statutory amendments make necessary the addition of certain language to the publicity notice approved by the Court in Slaughter II. Nor do plaintiffs raise material dispute to the language drafted by defendant. Rather, plaintiffs object to the placement of the amendatory language. Plaintiffs argue that the additional information should be inserted in the fifth paragraph of the second page of the notice, rather than the third paragraph of the second page, as drafted by defendant. Plaintiffs contend that as drafted by defendant, the amendatory language may cause confusion, in that paragraphs three and five both make reference to certain exceptions to the lump sum rule, without any indication whether the exceptions referenced are identical or distinct.

Paragraph 5 of plaintiffs' proposed publicity notice provides (amendatory language underlined):

There are a few exceptions to the lump sum rule. *See below. That is why it is very important that you get in touch with your AFDC financial worker as soon as you think you may be receiving a lump sum. Your financial worker will be able to give you a more detailed explanation of how the lump sum rule applies to your individual case. If you don't know in advance that you will be getting a lump sum, you should contact your financial worker as soon as you receive the money. You should not spend any of the money until you talk to your financial worker.

*INSERT — There are some types of lump sums that are not subject to the rule. And under certain circumstances the period of ineligibility may be shortened.

Paragraph 3 of the publicity notice prepared by defendant provides (amendatory language underlined):

Under the LUMP SUM RULE, you will be expected to save the money and live on it instead of receiving an AFDC grant for a period of months. This is called a PERIOD OF INELIGIBILITY. AFDC will use a formula to determine how long you will be expected to live on the lump sum money. The length of time you will be ineligible for AFDC will vary depending on the size of the lump sum. There are some types of lump sums that are not subject to the lump sum rule. Under certain circumstances the period of ineligibility may be shortened. Ask your financial worker for more information about this.

The Court has examined the changes made by defendant, and finds that they do not raise an undue likelihood of confusion. It is not the province of the federal courts to oversee the day-to-day operations of the Minnesota Department of Public Welfare. The actions taken by defendant are entitled to a fair amount of deference, Slaughter II, 605 F.Supp. at 1248, provided that they remain within the bounds set out by the Court's prior orders. Defendant's conduct here is of that character, and the modified notice drafted by defendant will be respected. Accordingly, the defendant may distribute those publicity notices already printed. Defendant is instructed to substitute plaintiffs' proposed draft, paragraphs 3-5, wherein the modifying language is placed in paragraph 5, rather than paragraph 3, in place of its own draft paragraphs 3-5 in all future publicity notices which defendant may print and distribute. The Court finds that some gains in clarity will be realized by the substitution of plaintiffs' proposed language in future notices. Defendant has indicated no objection to making this change.

Overpayment to Kathryn Jenkins

Kathryn Jenkins is a named plaintiff in this matter. Jenkins was found eligible for AFDC benefits in November, 1982. On October 31, 1983, plaintiff's husband received a disability payment in the amount of $5,752. On that date plaintiff's husband expended $3,863.75 of that amount to satisfy a mortgage arrearage, and $1,366 to satisfy an overdue car repair bill. The remaining $500-$600 was spent on other bills and on clothing for plaintiff's children.

Plaintiff reported receipt of the disability settlement to Hennepin County welfare officials on November 2, 1983. On that date defendant was informed for the first time of the lump sum rule. On November 3, 1983, Hennepin County advised plaintiff that her AFDC...