Valentini v. Shinseki

• Decision Date: 16 March 2012
• Docket Number: Case No. CV 11–04846 SJO (MRWx).
• Court: U.S. District Court — Central District of California
• Parties: Gregory VALENTINI, et al. v. Eric SHINSEKI, et al.

860 F.Supp.2d 1079

Gregory VALENTINI, et al.

v.Eric SHINSEKI, et al.

Case No. CV 11–04846 SJO (MRWx).

United States District Court,

C.D. California.

March 16, 2012.

David B. Sapp, Mark D. Rosenbaum, Peter J. Eliasberg, Aclu Foundation of Southern California, Gary Lee Blasi, Ucla School of Law, John Michael Rappaport, Ronald L. Olson, Munger Tolles & Olson, Adam Murray, Amos E. Hartston, David Eric Shapland, Elizabeth Haman Kugler, Jacob Kevin Poorman, James Jacob Finsten, John C. Ulin, Melissa A. Tyner, Los Angeles, CA, Jonathan Massey, Washington, DC, Laurence H. Tribe, Harvard Law School, Cambridge, MA, Leonard A. Gail, Massey & Gail LLC, Chicago, IL, for Gregory Valentini, et al.

PROCEEDINGS: ORDER GRANTING IN PART AND DENYING IN

PART DEFENDANTS' MOTION TO DISMISS

[Docket No. 32]

S. JAMES OTERO, District Judge.

Victor Paul Cruz Courtroom Clerk

This matter is before the Court on Defendants Eric Shinseki and Donna M. Beiter's (collectively, “Defendants” or “Government”) Motion to Dismiss (“Motion”), filed on October 7, 2011. On October 21, 2011, Plaintiffs filed their Opposition to which the Government filed its Reply on October 25, 2011. The Court received amicus curiae briefs filed by Metabolic Studio, LLC, and the City of Santa Monica in opposition to the Government's Motion to Dismiss.

The Court found this matter suitable for disposition without oral argument and vacated the hearing scheduled for December 5, 2011. See Fed.R.Civ.P. 78(b). For the following reasons, the Court GRANTS IN

PART AND DENIES IN PART

the Government's Motion to Dismiss.I. FACTUAL AND PROCEDURAL BACKGROUND

The First Amended Complaint (“FAC”) sets forth the following allegations. The individual Plaintiffs in this case are severely disabled veterans with mental disabilities, brain injuries, or both.¹ ( See FAC ¶¶ 8–17, ECF No. 24.) As a result of their disabilities, they are homeless and cannot access necessary medical and mental health treatment. (FAC ¶¶ 8–17.)

On June 8, 2011, Plaintiffs filed a lawsuit against the Government. Defendant Eric Shinseki (“Shinseki”) is the Secretary of the United States Department of Veterans Affairs (“DVA”), whose official duties include execution and administration of all laws and programs governed by the DVA. (FAC ¶¶ 47, 48.) Shinseki is responsible for ensuring that the DVA complies with contracts and land grants. (FAC ¶ 48.) Defendant Donna M. Beiter (“Beiter”) is the Director of the Veterans Affairs Greater Los Angeles (“VA GLA”) Health-care System, whose official duties include supervising daily operations and services of all programs operated by the West Los Angeles Campus (“WLA Campus”). (FAC ¶¶ 49, 50.)

Plaintiffs assert six claims: (1) facial discrimination in violation of section 504 of the Rehabilitation Act; (2) denial of meaningful access in violation of section 504 of the Rehabilitation Act; (3) breach of duty as trustee of a charitable trust; (4) accounting for profits; (5) breach of fiduciary duty as trustee of a charitable trust; and (6) improper land deals executed in violation of the Administrative Procedure Act (“APA”). ( See generally FAC.)

A. Overview of the Veterans' Benefits Program

In 1865, Congress created the National Home for Disabled Volunteer Soldiers (“National Home”). (FAC ¶ 85; Act of Mar. 3, 1965, ch. 91, 13 Stat. 509.) The National Home created a series of branch homes for veterans throughout the country. (FAC ¶ 85.) In addition to housing, the National Home also provided the veteran residents food, medical care, recreation activities, and employment opportunities. (FAC ¶ 85.) In 1887, Congress authorized the National Home's Board of Governors to establish a branch home west of the Rocky Mountains. (FAC ¶ 88.) In 1888, the Pacific Branch of the National Home (“Pacific Branch Home”) opened and housed veterans. (FAC ¶ 90.) In 1930, Congress consolidated the National Home with other veterans' programs and established the Veterans Administration (“VA”). (FAC ¶ 93; Exec. Order No. 5398 (July 21, 1930).) Accordingly, the branch homes were transferred to the VA. (FAC ¶ 93.) In 1958, Congress repealed the statutory authorization for the National Home. See Act of Sept. 2, 1958, Pub. L. No. 85–857, 72 Stat. 1105 (1958).

In 1989, the DVA, VA's successor-in-interest, was established as a cabinet-level agency. (FAC ¶ 94.) The DVA is currently divided into three administrations: the Veterans Health Administration (“VHA”); the Veterans Benefits Administration (“VBA”); and the National Cemetery Administration (“NCA”). (FAC ¶ 73; 38 U.S.C. § 301(c).) The VHA is obligated to provide veterans with medical and hospital services. (FAC ¶ 73; 38 U.S.C. § 7301(b).) To qualify for VHA benefits, a person must have performed active duty in the military and been “discharged or released”from service “under conditions other than dishonorable.” (FAC ¶ 74; 38 U.S.C. § 101(2).)

To receive the “medical benefits package,” a veteran must be enrolled in the VA health-care system. See38 C.F.R. § 17.36(a)(1). Veterans who qualify for VHA benefits are placed into one of eight priority groups. See38 C.F.R. § 17.36(b). The priority groups are established by the DVA's regulations to determine a veteran's eligibility for benefits. (FAC ¶ 75; 38 C.F.R. § 17.36(b).) Depending on funding, the DVA may prioritize the higher priority groups and provide VHA benefits only to veterans in those groups. (FAC ¶ 75.)

Eligible veterans receive VHA benefits through twenty-one Veterans Integrated Services Networks (“VISN”) around the country. (FAC ¶ 79.) One of the VISNs is the VA Desert Pacific Health Network, which provides services in Southern California through the VA GLA. (FAC ¶ 80.) The VA GLA provides health-care services to veterans at its WLA Campus. (FAC ¶ 83.) The VHA benefits package includes: outpatient medical, surgical, and mental health care; inpatient hospital, medical, surgical, and mental health care; prescription drugs coverage; emergency care; substance abuse treatment; and other services. (FAC ¶ 78; 38 C.F.R. § 17.38(a).)

In addition to VHA's benefits program, the DVA must provide hospital and medical services “to any veteran for a service-connected disability.” 38 U.S.C. § 1710(a)(1)(A). Veterans who meet certain requirements must be provided hospital care and medical services, regardless of whether the veteran is enrolled in the VHA benefits program. (FAC ¶ 77; 38 C.F.R. § 17.37(a).)

B. History of the WLA Campus

In 1888, United States Senator John P. Jones and Arcadia B. de Baker donated land—what is now the WLA Campus—for the purpose of establishing and permanently maintaining a branch home for disabled war veterans. (FAC ¶ 84.) The deed (the “1888 Deed”) conveyed 300 acres to the National Home. (FAC ¶ 89.) The 1888 Deed states:

And whereas, the parties hereto of the first part [grantors] in consideration that the party hereto of the second part [National Home] should locate, establish, construct, and permanently maintain a branch of said National Home for Disabled Volunteer Soldiers on a site to be selected by its Board of Managers.... Now therefore, in consideration of the premises and of the location, ... owners of the said Rancho San Vicente y Santa Monica, by such location have given and granted and by these presents do give and grant ... all the following described land and premises, situate lying and being in the County of Los Angeles, State of California ... for the purpose of such branch Home for Disabled Volunteer Soldiers to be thereon so located, established, constructed and permanently maintained.

(FAC ¶ 89; Exs. 1, 2.) In 1899 and 1921, successors to Senator Jones and Mrs. de Baker conveyed additional land to the National Home. (FAC ¶ 89.) The entire WLA Campus conveyed by the 1888 Deed and two later deeds is approximately 387 acres. (FAC ¶ 6.)

For about eighty years, the VA operated the Pacific Branch Home at the WLA Campus, which provided a permanent home for disabled veterans as anticipated by the grantors of the 1888 Deed. (FAC ¶ 6.) During the 1960s and 1970s, the VA ceased accepting new residents at the WLA Campus. (FAC ¶ 94.) Currently, there are approximately 104 buildings on the WLA Campus. (FAC ¶ 95.) Many of the buildings that were once dedicated to permanent housing are now repurposed or have fallen into disuse. (FAC ¶¶ 7, 95.)

The WLA Campus offers care in the following areas: medicine, surgery, psychiatry, physical medicine and rehabilitation, neurology, oncology, dentistry, geriatrics, and extended care. (FAC ¶ 98.) Additionally, the WLA Campus offers approximately 1,500 beds, and more than 1,150 beds are dedicated to inpatient hospital care or skilled nursing care for elderly veterans. (FAC ¶ 105.) These beds are not available as permanent supportive housing and are used as temporary shelter for veterans with limitations on eligibility. (FAC ¶ 105.) However, there is no permanent housing available to disabled veterans on the WLA Campus. (FAC ¶ 95.)

In addition to the WLA Campus providing health-care services for veterans, the campus is also used for private activities. Many commercial and other non-DVA programs operate on the WLA Campus pursuant to leases, memoranda of understanding, revocable licenses, or enhanced sharing agreements. (FAC ¶¶ 24, 96.) Currently, there are twenty-one land-use agreements with eighteen different partners for the WLA Campus. (Dep't of Veterans Affairs, West Los Angeles VA Medical Center, Veterans Program Enhancement Act of 1998 (VPEA) Master Plan (2011) (“Master Plan”).) The following are land-use agreements on the WLA Campus: Brentwood School leases twenty acres of land; Richmark Entertainment operates the Wadsworth and Brentwood theaters; Sodexho Marriot Laundry Services operates an old laundry facility in Building 224; South Coast AQMD conducts studies on pollution levels out of a temporary trailer; TCM, LLC utilizes 1.5 acres of land at the Veterans Garden and adjacent parking areas for a community farmer's market;...