Kenneth Hensley v. Lillian Koller

Filing

PUBLISHED AUTHORED OPINION filed. Originating case number: 7:11-cv-02827-GRA. [999143007]. [12-2147]

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PUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT

No. 12-2147

KENNETH HENSLEY, as adoptive parents of BLH; ANGELA
HENSLEY, as adoptive parents of BLH; BLH, by parentsgeneral guardians Kenneth and Angela Hensley,
Plaintiffs - Appellees,
v.
LILLIAN KOLLER, individually and in her official capacity as
State Director for the South Carolina Department of Social
Services;
ELIZABETH
PATTERSON,
individually
as
Former
Director of the South Carolina Department of Social
Services; KIM AYDLETTE, individually as Former Director of
the South Carolina Department of Social Services; KATHLEEN
HAYES, individually as Former Director of the South Carolina
Department of Social Services,
Defendants - Appellants,
and
SOUTH CAROLINA DEPARTMENT OF SOCIAL SERVICES,
Defendant.

Appeal from the United States District Court for the District of
South Carolina, at Spartanburg.
G. Ross Anderson, Jr., Senior
District Judge. (7:11-cv-02827-GRA)

Argued:

May 16, 2013

Decided:

July 3, 2013

Before MOTZ, DAVIS, and WYNN, Circuit Judges.

Reversed and remanded by published opinion.

Judge Motz wrote

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the opinion, in which Judge Davis and Judge Wynn joined.

ARGUED: Andrew Lindemann, DAVIDSON & LINDEMANN, P.A., Columbia,
South Carolina, for Appellants.
Timothy Ryan Langley, HODGE &
LANGLEY LAW FIRM, P.C., Spartanburg, South Carolina, for
Appellees.
ON BRIEF: William H. Davidson, II, Joel S. Hughes,
DAVIDSON & LINDEMANN, P.A., Columbia, South Carolina, for
Appellants.
Charles J. Hodge, HODGE & LANGLEY LAW FIRM, P.C.,
Spartanburg, South Carolina; James Fletcher Thompson, JAMES
FLETCHER
THOMPSON,
LLC,
Spartanburg,
South
Carolina,
for
Appellees.

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DIANA GRIBBON MOTZ, Circuit Judge:
A minor, by and through her adopted parents, brought this
class action challenging South Carolina’s reduction of monthly
adoption assistance benefits.
the

Adoption

Assistance

She claims the reduction violates

and

Child

Welfare

Act,

and

seeks

declaratory and injunctive relief, as well as money damages.
The district court certified the class and denied the parties’
cross-motions

for

summary

judgment.

For

the

reasons

that

follow, we reverse and remand.

I.
The South Carolina Department of Social Services (“DSS”)
provides

adoption

assistance

subsidies

and

foster

care

maintenance payments pursuant to federal funding authorized by
the Adoption Assistance and Child Welfare Act of 1980, 42 U.S.C.
§ 670 et seq. (2006) (“the Act”).

To receive funding under the

Act, a state must develop a plan for a subsidy and maintenance
program and must obtain approval of that plan by the United
States

Secretary

of

Health

and

Human

Services.

See

id.

§ 671(a).
The Act sets forth specific requirements governing foster
care maintenance payments, id. § 672, and adoption assistance
payments, id. § 673.
an

approved

plan

With respect to the latter, a state with
“shall

enter
3

into

adoption

assistance

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agreements . . . with the adoptive parents of children with
special needs.”

Id. § 673(a)(1)(A).

The Act further provides:

The amount of the [adoption assistance] payments . . .
shall be determined through agreement between the
adoptive parents and the State . . . , which shall
take into consideration the circumstances of the
adopting parents and the needs of the child being
adopted, and may be readjusted periodically, with the
concurrence of the adopting parents . . . , depending
upon changes in such circumstances.
However, in no
case may the amount of the adoption assistance payment
. . . exceed the foster care maintenance payment which
would have been paid during the period if the child
with respect to whom the adoption assistance payment
is made had been in a foster family home.
Id. § 673(a)(3).

The adoption subsidy agreement between DSS and

adoptive parents, referenced in § 673, establishes the payment
rate for an adoptive child.

II.
In April 1997, BLH, a minor child, was placed in temporary
foster care with Angela and Kenneth Hensley.

Beginning in 1998,

DSS approved monthly foster care maintenance payments of $675 to
Mr.

and

Mrs.

Hensley

for

the

care

of

BLH.

These

payments

included a “Difficulty of Care Rate” upward adjustment because
DSS found BLH to be a special needs child.

In early 1999, Mr.

and Mrs. Hensley applied for a court order declaring them BLH’s
adoptive parents.
In preparing their application, Mr. and Mrs. Hensley sought
to convert the foster care maintenance payment into an adoption
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assistance subsidy.

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On March 22, 1999, DSS and Mr. and Mrs.

Hensley entered into an Adoption Subsidy Agreement under which
DSS

agreed

to

furnish

the

Hensleys

assistance payments of $675.
issued

an

order

declaring

parents of BLH.

with

monthly

adoption

Two months later, a state court

Mr.

and

Mrs.

Hensley

the

adoptive

Mr. and Mrs. Hensley continued to receive the

$675 adoption subsidy monthly for three years.
But in June 2002, then-DSS Director Elizabeth G. Patterson
announced that as a result of “South Carolina’s budget crisis,”
DSS

would

reduce

maintenance

by

twenty

payments

beginning

that

reduction,

BLH’s

dollars

and

July.

all

adoption

monthly

assistance

Pursuant

subsidy

foster

to

this

decreased

to

$655.

care

subsidies,

across-the-board
In

2004,

DSS

rescinded the twenty dollar reduction to foster care maintenance
payments,

but

DSS

has

never

rescinded

the

2002

reduction

to

adoption assistance subsidies; thus, for BLH, the latter remains
$655.
In September 2011, BLH, by and through Mr. and Mrs. Hensley
(collectively, “the Hensleys”), filed in state court a class
action

under

42

U.S.C.

§

1983

against

Lillian

Koller,

individually and in her official capacity as director of DSS.
Koller

removed

the

action

to

federal

court.

The

Hensleys

amended their complaint three times, removed the South Carolina
Department of Social Services as a party, and added Patterson,
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Kim

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Aydlette,

and

Kathleen

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Hayes,

individually

as

former

directors of DSS (collectively, with Koller, “the Directors”).
The

Directors

then

moved

for

summary

judgment.

The

Hensleys opposed the motion and filed a combined cross-motion
for summary judgment and motion for class certification.
the

district

court

heard

argument,

it

granted

the

After

Hensleys’

motion for class certification and denied the cross-motions for
summary judgment.

The Directors timely noted this appeal.

III.
We have jurisdiction over this interlocutory appeal because
the

Directors’

assertion

of

qualified

presents purely legal questions.
U.S. 511, 530 (1985).

from

suit

See Mitchell v. Forsyth, 472

We review de novo a district court’s

denial of qualified immunity.
650 (4th Cir. 2007).

immunity

Johnson v. Caudill, 475 F.3d 645,

In doing so, “[t]o the extent that the

district court has not fully set forth the facts on which its
decision is based, we assume the facts that may reasonably be
inferred from the record when viewed in the light most favorable
to the plaintiff.”

See Waterman v. Batton, 393 F.3d 471, 473

(4th Cir. 2005) (citing Winfield v. Bass, 106 F.3d 525, 533–35
(4th Cir. 1997) (en banc)).
Qualified immunity shields government officials performing
discretionary

functions

from

suits
6

for

civil

damages

under

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§ 1983.

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Ridpath v. Bd. of Governors Marshall Univ., 447 F.3d

292, 306 (4th Cir. 2006).
(1)

whether

whether

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an

that

official

right

official acted.

The qualified immunity inquiry asks

was

violated
clearly

a

federal

established

right,
at

and
time

the

(2)
the

See Saucier v. Katz, 533 U.S. 194, 200 (2001).

A court may address the second question -- whether a right is
clearly established -- without ruling on the first -- existence
of the right.
(2009).

Pearson v. Callahan, 555 U.S. 223, 232, 236

But “there are cases in which there would be little if

any conservation of judicial resources to be had by beginning
and

ending

prong.”

with

a

discussion

the

‘clearly

established’

Id. at 236.

This is such a case.
declaratory

relief

determination
shields

of

a

that

state

in
a

The Hensleys seek injunctive and

addition

right

official

is

from

not

to

money

clearly

money

damages.
established

damages.

See

A
only

Akers

v.

Caperton, 998 F.2d 220, 226-28 (4th Cir. 1982) (holding clearly
established law protected state officials only from liability
for money damages, and so remanding case for consideration of
claim for equitable relief).

Thus, if we resolved the case on

the ground that no clearly established law permits an award of
damages against the state officials, the case would necessarily
return

to

the

district

court

for

a

determination

availability of injunctive and declaratory relief.
7

of

the

Here, the

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“conservation of judicial resources,” Pearson, 555 U.S. at 236,
weighs strongly in favor of resolving the question of whether
the Directors violated the Hensleys’ federal rights.
For this reason, we begin (and end) with the first step of
Saucier’s

two-step

inquiry

--

determination

of

whether

§ 673(a)(3) creates a privately enforceable right to parental
concurrence, which the Directors have violated.

IV.
“[U]nless
manifests

Congress

an

speak[s]

unambiguous

with

intent

a

to

clear
create

voice,

and

individually

enforceable rights, federal funding provisions provide no basis
for private enforcement by § 1983.”

Gonzaga Univ. v. Doe, 536

U.S. 273, 280 (2002) (internal quotation marks omitted).
Blessing
factor

v.
test

Freestone,
to

the

determine

Supreme
whether

Court
a

announced

particular

a

In

three-

statutory

provision gives rise to a federal right privately enforceable
under 42 U.S.C. § 1983:
First, Congress must have intended that the provision
in question benefit the plaintiff.
Second, the
plaintiff must demonstrate that the right assertedly
protected by the statute is not so vague and amorphous
that its enforcement would strain judicial competence.
Third, the statute must unambiguously impose a binding
obligation on the States. In other words, the
provision giving rise to the asserted right must be
couched in mandatory, rather than precatory, terms.
520

U.S.

329,

340-41

(1997)

(internal
8

quotation

marks

and

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citations omitted).

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Of course, even if a statute meets the

Blessing three-factor test establishing a privately enforceable
right, a plaintiff cannot recover unless it can properly plead a
violation of that statutory right.

In this case we hold that

the statute, § 673(a)(3), does set forth a privately enforceable
right, but that the Hensleys have failed to plead any violation
of that right by the Directors.
A.
Following

the

Blessing

three-factor

test,

we

initially

consider whether the Hensleys have pled a violation of a federal
right.
As

to

the

first

Blessing

question,

whether

§

673(a)(3)

“confer[s] rights on a particular class of persons,” Gonzaga,
536 U.S. at 285 (internal quotation marks omitted), we agree
with

the

only

other

circuit

to

address

that

question

that

§ 673(a)(3) does “evinc[e] a clear intent to create a federal
right,” see ASW v. Oregon, 424 F.3d 970, 975-76 (9th Cir. 2005).
For the Act provides that the adoption assistance payments:
shall be determined through agreement between the
adoptive parents and the State . . . , which shall
take into consideration the circumstances of the
adopting parents and the needs of the child being
adopted, and may be readjusted periodically, with the
concurrence of the adopting parents . . . , depending
upon changes in such circumstances.

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42 U.S.C. § 673(a)(3) (emphasis added). 1
In

considering

the

second

Blessing

factor,

we

determine

whether the asserted right is “so ‘vague and amorphous’ that its
enforcement would strain judicial competence.”
41.

520 U.S. at 340-

The Directors argue that the term “concurrence” is too

“vague[] and amorphous[]” to create an enforceable right.
disagree.

We

“In interpreting the plain language of a statute, we

give the terms their ordinary, contemporary, common meaning.”
Minor v. Bostwick Labs., Inc., 669 F.3d 428, 435 (4th Cir. 2012)
(internal
defines

quotation

marks

“concurrence”

as

omitted).

Black’s

“[a]greement;

Dictionary (9th ed. 2009).

assent.”

Law

Dictionary
Black’s

Law

Thus, § 673(a)(3) clearly provides

that a state may not readjust an adoption assistance payment
amount

without

an

adoptive

parent’s

“concurrence,”

i.e.,

agreement or assent.
Turning to Blessing’s final factor, we examine whether the
statute

“unambiguously

State[].”

impose[s]

520 U.S. at 341.

a

binding

obligation

on

the

To do so we must resolve whether

1

The Directors contend that the Act cannot be challenged by
BLH, or Mr. and Mrs. Hensley in their capacity “as adoptive
parents of BLH,” because it contemplates only an agreement
between the state and the adoptive parents.
This argument
fails. The Act provides that its stated purpose is to “enabl[e]
each State to provide . . . adoption assistance for children
with special needs.”
42 U.S.C. § 670 (emphasis added).
This
language clearly reveals Congressional “inten[t] to confer
individual rights upon” this “class of beneficiaries.”
See
Gonzaga, 536 U.S. at 285.
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“the provision giving rise to the asserted right” is “couched in
mandatory, rather than precatory, terms.”

Id.

In this case,

the operative “provision,” § 673(a)(3), requires states to enter
into

agreements

assistance

with

payments.

adoptive
It

parents

further

to

requires

determine
that

adoption

such

agreed

determinations “take into consideration the circumstances of the
adopting parents and the needs of the child being adopted.”

Id.

See ASW, 424 F.3d at 976 (“[T]here is no ambiguity as to what
[states must] do under § 673(a)(3) as a condition of receiving
federal funding under [the Act].”).

And if a state wants to

readjust the agreed-to payments, it must have “the concurrence
of the adopting parents” to do so, with the limited exception we
address below.
For

these

42 U.S.C. § 673(a)(3).
reasons,

we

conclude

that,

pursuant

to

the

Blessing test, § 673(a)(3) does give rise to a limited privately
enforceable federal right cognizable under 42 U.S.C. § 1983.
B.
But only violations of such enforceable rights can provide
a basis for recovery.

See Saucier, 533 U.S. at 200 (“[T]he

first inquiry must be whether a . . . right would have been
violated on the facts alleged . . . .” (emphasis added)).

Thus,

we must also determine whether the Hensleys have alleged facts
establishing that the Directors violated the Hensleys’ rights
under § 673(a)(3) when the Directors reduced adoption assistance
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subsidies.
The

statute’s

question.

limited

exception

speaks

to

this

very

Section 673(a)(3) provides:

in no case may the amount of the adoption assistance
payment . . . exceed the foster care maintenance
payment which would have been paid during the period
if the child with respect to whom the adoption
assistance payment is made had been in a foster family
home.
42

U.S.C.

language

§
is

673(a)(3).
that

the

The

most

statute

logical

prohibits

reading

adoption

of

this

assistance

subsidies that exceed foster care maintenance payments. 2

As a

result, § 673(a)(3) establishes a right to parental concurrence
in subsidy readjustment determinations except when the subsidy
must be reduced due to reductions in foster care maintenance
payments.
It

is

maintenance

undisputed
payments

by

that

DSS

twenty

reduced

dollars

at

the
the

foster
same

care

time

DSS

reduced the adoption assistance subsidy by the same amount.

The

Hensleys do not contend that at any time prior to the 2002
reduction, the adoption assistance subsidy they received for BLH
was less than BLH’s $675 foster care maintenance payment.

2

The policy manual issued by the United States Department
of Health & Human Services, which administers the federal
funding authorized by the Act, supports this reading of
§ 673(a)(3). See Admin. for Children & Families, U.S. Dep’t of
Health & Human Servs., Child Welfare Policy Manual § 8.2D.4
(2012).
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It

was

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only

in

2002,

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when

South

Carolina

decreased

by

twenty dollars all foster care maintenance payments, that the
State also decreased BLH’s adoption assistance subsidy by twenty
dollars.

The

federal law.

State’s

failure

to

do

so

would

have

violated

For, under § 673(a)(3), a failure to reduce BLH’s

adoption assistance payment would have resulted in a payment
“exceed[ing] the foster care maintenance payment” she would have
received had she remained in foster care.

For these reasons,

the Hensleys cannot establish that the Directors violated the
Hensleys’ rights under the Act and therefore the Directors are
entitled to qualified immunity. 3

V.
For
district

the

reasons

court

and

stated,

remand

we

the

reverse

case

for

the

judgment

entry

of

a

of

the

judgment

consistent with this opinion.

REVERSED and REMANDED

3

The Hensleys also argue that the Directors violated their
parental concurrence rights when DSS later increased foster care
maintenance payments without also increasing the adoption
assistance subsidy.
However, the 2004 increase did not
“readjust” the amount of the adoption assistance subsidies;
accordingly, the Directors’ 2004 action did not trigger –- let
alone violate -- the parental concurrence requirement.
13