DocketNumber: Case No. 18-cv-00378 (APM)
Filed Date: 6/12/2019
Status: Precedential
Modified Date: 10/18/2024
Plaintiffs then brought this action. They assert violations of the Establishment Clause and the Equal Protection Clause and a deprivation of Substantive Due Process. Plaintiffs allege that HHS unconstitutionally awarded grant money to USCCB, despite knowing that USCCB and its sub-grantees, due to their religious beliefs, *26would use taxpayer funds in a manner that discriminates against same-sex couples.
The merits of Plaintiffs' case are not yet before the court. Instead, Defendants challenge Plaintiffs' standing to bring suit. For the reasons that follow, the court grants Defendants' Motions to Dismiss in part. The court agrees with Defendants that no Plaintiff has taxpayer standing to assert a violation of the Establishment Clause. Because the sole cause of action brought by Plaintiff National LGBT Bar Association is the Establishment Clause claim, it is dismissed from this case. On the other hand, the court finds that Plaintiffs Marouf and Esplin have sufficiently pleaded individual standing to pursue all three causes of action. The court therefore denies the remainder of Defendants' Motions.
II. BACKGROUND
A. Factual Background
1. The Unaccompanied Refugee Minor Program and the Unaccompanied Alien Children Program
At issue in this case are two federal programs whose purpose is to provide support for the "thousands of unaccompanied refugee children" under the care of the federal government: (1) the Unaccompanied Refugee Minor Program ("URM Program") and (2) the Unaccompanied Alien Children Program ("UC Program"). Am. Compl., ECF No. 21 [hereinafter Am. Compl.] ¶¶ 16-18. These programs are administered through the Office of Refugee Resettlement ("ORR"), which is housed within HHS. See id. ¶ 10.
Two pieces of legislation authorize the URM and UC Programs: the William Wilberforce Trafficking Victims Protection Reauthorization Act of 2008 ("TVPRA") and the Refugee Act of 1980. The TVPRA authorizes ORR to "award grants to, and enter into contracts with, voluntary agencies to carry out [the UC Program]."
Though Congress established these programs by statute, it has not funded them through specific line items. Instead, for the last four years, Congress simply has appropriated a lump-sum amount to the Administration for Children and Families-the component of HHS in which ORR is located-to carry out refugee and entrant assistance activities. See Consolidated Appropriations Act, 2018, Pub. L. No. 115-141, Div. H, Tit. II,
2. The United States Conference of Catholic Bishops
The United States Conference of Catholic Bishops, or USCCB, is a long-time grantee of ORR and, in fact, is the largest recipient of URM and UC Program grants. Pls.' Mem. in Supp. of Pls.' Opp'n to Mot. to Dismiss, ECF No. 34 [hereinafter Pls.' Opp'n], at 17. As relevant to this case, USCCB did not itself use the grants to provide child welfare services. Instead, it disbursed the funds to a sub-grantee in Fort Worth, Texas, who in turn directly delivered services under the URM and UC Programs.
In its HHS grant applications for both programs, USCCB made known its Catholic identity and how that identity would affect its use of grant funds. In its URM Program grant application, USCCB represented that it "must ensure that services provided under this application are not contrary to the authentic teaching of the Catholic Church, its moral convictions, or religious beliefs." Am. Compl. ¶ 30. Similarly, in its UC Program grant application, USCCB stated that it "must ensure that services provided under this application are not contrary to the authentic teaching of the Catholic Church, its moral convictions, and religious beliefs in an approach that is consistent with" the agency's Policy on Grants to Faith-Based Organizations. Id. ¶ 31.
USCCB also made clear that its sub-grantees would "ensure" delivery of services consistent with the Catholic faith. USCCB notified ORR that sub-grantees would have to comply with an agreement provision titled "Catholic Identity," under which the sub-grantee promised "[to] ensure that services provided to those served under this Agreement are not contrary to the authentic teaching of the Catholic Church, its moral convictions, and religious beliefs. Accordingly, [USCCB] expects that the Sub-recipient will provide services under this Agreement within certain parameters ..." Id. ¶ 32.
At the time it submitted these grant applications, USCCB's position on same-sex marriage was unequivocal and a matter of public record. For instance, USCCB's Fact Sheets concerning adoption and foster care services, which have appeared on USCCB's website "since at least 2013," state that " '[w]hen placing children with couples, Catholic Charities ensures those children enjoy the advantage of having a mother and a father who are married.' " Id. ¶ 35 (citing Discrimination Against Catholic Adoption Services, USCCB, http://www.usccb.org/issues-and-action/religious-liberty/discrimination-against-catholic-adoption-services.cfm (last visited Feb. 16, 2018)). Another section of the website, titled "Frequently Asked Questions About the Defense of Marriage," states that "[p]lacing a child in the care of two men or two women may be well-intentioned, but ultimately deprives the child of that which best serves his or her interests - a mother and a father." Id. ¶ 36 (citing Frequently Asked Questions About the Defense of Marriage, USCCB, http://www.usccb.org/issues-and-action/marriage-andfamily/marriage/promotion-and-defense-of-marriage/frequently-asked-questions-ondefense-of-marriage.cfm (last visited Feb. 16, 2018)). Notwithstanding these clear positions on same-sex marriage and placing children with same-sex couples, year-upon-year ORR continued to award grant funding to USCCB to administer the URM and UC Programs. Id. ¶ 38.
3. Plaintiffs Fatma Marouf and Bryn Esplin
Plaintiffs Fatma Marouf and Bryn Esplin are a same-sex married couple living in *28Fort Worth, Texas. Am. Compl. ¶ 5. They pay federal taxes. Id. Married since 2015, Plaintiffs aver that they are "eager to bring a child into their family" and have been actively exploring different options to do so. Id. ¶ 44.
In February 2017, Plaintiffs approached Catholic Charities of Fort Worth ("CCFW"), a sub-grantee of USCCB, about fostering an unaccompanied refugee child. Id. ¶ 46. After exchanging emails with CCFW about their foster care programs and the process for becoming a foster parent, CCFW scheduled an initial telephone interview with Plaintiffs. Id. During that call, a CCFW representative advised that prospective foster parents must "mirror the holy family." Id. ¶ 48. Plaintiffs made clear they were a same-sex couple. The CCFW representative then advised them that did not "qualify" to foster a child. Id. The representative also stated that none of the children that CCFW serves is a member of the LGBT community. Id. ¶ 49. At the time, there were no other child welfare organizations in the Fort Worth area with whom HHS had an agreement to provide child placement services under either the URM Program or the UC Program. See Hr'g Tr. (draft), Nov. 30, 2018, at 14.
Plaintiffs immediately lodged a complaint with ORR. On or about February 22, 2017, Plaintiff Marouf wrote to the general email address for ORR and informed the agency that CCFW had discriminated against them on the basis of their same-sex marital status. Id. ¶ 51. Marouf did not receive a response until April 14, 2017. Even then, ORR simply asked for "the names of the individuals at CCFW" who had advised her that Plaintiffs would not qualify as foster parents. Id. After inquiring with CCFW, Marouf learned the name of the representative with whom she and Esplin had spoken and, on May 1, 2017, forwarded the name to ORR. Id. ¶¶ 52-53. Other than a return email thanking Marouf for the information, Plaintiffs received no additional communication from ORR. Id. ¶ 53.
B. Procedural Background
Plaintiffs filed this case on February 20, 2018. See Compl., ECF No. 1. Along with USCCB, they named as defendants HHS; Alex Azar, in his official capacity as the Secretary of HHS; Steven Wagner, in his official capacity as Acting Assistant Secretary of the Administration for Children and Families; the Administration for Children and Families; Scott Lloyd, in his official capacity as Director of ORR; and ORR ("Federal Defendants"). See id. On March 22, 2018, Plaintiffs amended their complaint to add the National LGBT Bar Association as a plaintiff. See Am. Compl. The National LGBT Bar Association is a non-profit with more than 10,000 members who are "supportive of lesbian, gay, bisexual, and transgender ('LGBT') rights," id. ¶ 7, and it specifically brought this "action on behalf of its members who are federal taxpayers," id. ¶ 8.
Plaintiffs' Amended Complaint advances three claims: (1) violation of the Establishment Clause, (2) violation of the Equal Protection Clause, and (3) violation of substantive rights under the Due Process Clause. Id. ¶¶ 58-91. Each claim, at its core, alleges that the Federal Defendants are unlawfully "funding [ ] certain child *29welfare organizations that perform federal taxpayer-funded services relating to unaccompanied refugee children in federal care and custody in a manner that impermissibly discriminates against same-sex couples who are prospective foster and adoptive parents. The organizations use religious doctrine regarding same-sex relationships to categorically exclude such couples from applying to be foster parents." Id. ¶ 1. All three Plaintiffs assert standing to sue Defendants for a violation of the Establishment Clause based on their status as federal taxpayers. Id. ¶ 72. Additionally, Marouf and Esplin assert that they have standing to assert all three claims, as they are individuals harmed by federal government action or inaction. See Pls.' Opp'n at 3.
On May 21, 2018, the Federal Defendants filed a Motion to Dismiss under Federal Rule of Civil Procedure 12(b)(1), asserting that no Plaintiff has standing as to any claim and therefore the court lacks subject matter jurisdiction. See Fed. Defs.' Mot. to Dismiss, ECF No. 28; Fed. Defs.' Stmt. of Pts. and Auth., ECF No. 28-1 [hereinafter Fed. Defs.' Stmt.]. USCCB separately filed a Motion to Dismiss on the same day, likewise arguing that Plaintiffs lack standing to sue. See Def. USCCB Mot. to Dismiss, ECF No. 29; Def. USCCB's Mem. of Pts. and Auth., ECF No. 29-1 [hereinafter USCCB's Mem.]. The court held oral argument on Defendants' motions on November 30, 2018.
III. LEGAL STANDARD
Every plaintiff in federal court bears the burden of showing that she meets the "irreducible constitutional minimum" of Article III standing: (1) injury in fact, (2) causation, and (3) redressability. See Lujan v. Defenders of Wildlife ,
In deciding a Rule 12(b)(1) motion, the court "may consider materials outside the pleadings[.]" Jerome Stevens Pharm., Inc. v. Food & Drug Admin. ,
IV. DISCUSSION
The court will begin its discussion by addressing taxpayer standing as to all Plaintiffs for the Establishment Clause claim. It then will turn to Marouf and Esplin's individual standing as to all three claims.
A. Taxpayer Standing
1. General Principles
The Supreme Court has consistently held that a "taxpayer's interest in ensuring that appropriated funds are spent in accordance with the Constitution does not suffice to confer Article III standing." In re Navy Chaplaincy ,
The Supreme Court cracked the door open to taxpayer standing in 1968, with its decision in Flast v. Cohen ,
Subsequent Supreme Court cases have made clear that " Flast is a very narrow exception to the general bar against taxpayer standing" and that the two-part test must be applied with rigor. See In re Navy Chaplaincy ,
In Bowen v. Kendrick , the Court allowed taxpayer standing once more, but under unique facts. See
In Hein , however, the Court dispelled any notion that Bowen revitalized Flast . There, the plaintiffs brought suit to challenge an action by the President, who had "issued an executive order creating the White House Office of Faith-Based and Community Initiatives within the Executive Office of the President" in order to "ensure that private and charitable community groups, including religious ones [ ] have the fullest opportunity permitted by law ... to compete equally for federal assistance." Hein ,
Because almost all Executive Branch activity is ultimately funded by some congressional appropriation, extending the Flast exception to purely executive expenditures would effectively subject every federal action-be it a conference, proclamation, or speech-to Establishment Clause challenge by any taxpayer in federal court. To see the wide swathe of activity that respondents' proposed rule would cover, one need look no further than the amended complaint in this action, which focuses largely on speeches and presentations made by Executive Branch officials.
Following Hein , the D.C. Circuit in In re Navy Chaplaincy stressed the limits of Flast . There, the plaintiffs alleged that the Navy had discriminated in favor of Catholic chaplains in certain aspects of its retirement system, and they asserted standing as "taxpayers who object to the Navy's allegedly discriminatory operation of its chaplaincy program."
No legislative enactment expressly authorizes or appropriates funds for the Navy to favor Catholic chaplains in its retirement system. Plaintiffs cite, for example, the statutes establishing the Navy Chaplain Corps, but those statutes make no reference to denominational category, only to chaplains generally. See10 U.S.C. §§ 5142 , 5150. And plaintiffs, who themselves are chaplains, obviously do not contend that congressional legislation establishing the Navy Chaplaincy itself violates the Establishment Clause; they merely want the Navy to operate the Chaplain Corps differently.
2. Analysis
Applying the foregoing principles compels the conclusion that Plaintiffs in this case lack taxpayer standing. Just as in In re Navy Chaplaincy , this case involves *32"[n]o legislative enactment [that] expressly authorizes or appropriates funds" to HHS to favor Catholic child welfare organizations such as USCCB.
Plaintiffs advance several arguments to avoid this result, none of which are convincing. Plaintiffs assert that the "rule" of Flast , Hein , and Bowen is that "taxpayer standing exists in cases where Congress specifically appropriated funds for programs enacted under statutory schemes with a purpose of disbursing those funds, understanding that those funds might be distributed to religious organizations, and the disbursement of those funds is alleged to inappropriately favor or disfavor religion." Pls.' Opp'n at 15. But this is an inaccurate recitation of the law. As the D.C. Circuit made clear in In re Navy Chaplaincy , taxpayer standing under Flast requires a "legislative enactment [that] expressly authorizes or appropriates funds" for the challenged expenditure itself.
Next, Plaintiffs contend that Congress has in fact "specifically contemplate[d] disbursement of funds to certain entities to provide certain services to certain refugees and immigrants, including certain unaccompanied youth," thereby giving rise to taxpayer standing. Pls.' Opp'n at 16 (emphasis added). Plaintiffs' repeated use of the word "certain" is telling. It reveals the absence of any specific designation of funds by Congress for any religious purpose or organization. As discussed above, none of the Consolidated Appropriations Acts that fund child placement services for unaccompanied minors specifically mention the URM Program or the UC Program, let alone direct that taxpayer funds be provided to religiously affiliated organizations in general, or to USCCB in specific, to implement those programs. Congress's general appropriations that fund the URM and UC Programs cannot, without more, facilitate taxpayer standing. See Hein ,
Unable to find a textual hook in any piece of legislation, Plaintiffs advance a *33secondary argument. They maintain that Congress "plainly understood" it was funding religious organizations because HHS delivered annual reports disclosing that "USCCB receives the majority of grant funds under the URM and UC programs," thus providing the required nexus to Congress's tax and spending power. Pls.' Opp'n at 17. But Plaintiffs cite no case that stands for the proposition that Congress's "plain understanding" of how taxpayer funds are actually being spent is sufficient to establish taxpayer standing. If Congress's mere knowledge of the challenged expenditures were sufficient to establish taxpayer standing, it would stretch that concept well beyond the outer limits established by the Court in Hein . Indeed, it is difficult to conceive of what expenditures would be off limits to an Establishment Clause challenge under Plaintiffs' proposed interpretation, as Congress presumably knows how the Executive Branch is spending taxpayer money before reauthorizing it, even if through a general appropriation. Cf. Hein ,
Finally, Plaintiffs make a policy argument, asserting that if taxpayer standing is denied here, "Establishment Clause violations uniquely could go unchecked in many instances." Pls.' Opp'n at 21. But the Court rejected that very argument in Hein . See
For the reasons discussed, all Plaintiffs lack taxpayer standing. As taxpayer standing is the only ground upon which Plaintiff National LGBT Bar Association presses its Establishment Clause claim, it is dismissed from this action.
B. Individual Standing
But all is not lost for individual plaintiffs Marouf and Esplin. They also assert individual standing to challenge the Federal Defendants' actions. Defendants do not contest that Marouf and Esplin have satisfied the first element of standing, an injury in fact. See Fed. Defs.' Stmt. at 15; see also Pls.' Opp'n at 4 (asserting as injury the "lost opportunity to foster a child," and "the act of shutting the door to same-sex couples' foster parenting applications demeans and stigmatizes these families"). Nor could they. Cf. Allen v. Wright ,
Instead, Defendants argue that Plaintiffs' injuries are not "fairly traceable to *34the Federal Defendants because" a third party, Catholic Charities of Fort Worth, "caused the alleged injury by application of its own criteria for foster parents." Fed. Defs.' Stmt. at 15; see also USCCB Mem. at 8 ("[W]hen the government provides funding to a grant recipient that subsequently makes an independent decision that allegedly injures a third party, that third party does not have standing to challenge the legality of the government funding."). Defendants also contend that "individual Plaintiffs cannot show that their alleged injury is likely to be redressed by the relief requested against the Government." Fed. Defs.' Stmt. at 17; see also USCCB Mem. at 9-11.
To establish standing, Marouf and Esplin must show that their injury is "fairly traceable to the defendant's allegedly unlawful conduct" and "likely to be redressed by the requested relief." Lujan ,
The troubling consequence of Defendants' position, if accepted, is apparent on its face. According to the Federal Defendants, a federal agency cannot be held to account for a grantee's known exclusion of persons from a federally funded program on a prohibited ground. That is an astonishing outcome. Surely, the government would not take this position if, say, Plaintiffs here were excluded from fostering a child based on their gender (both are women), national origin (Marouf is the daughter of Egyptian and Turkish immigrants), or religious faith (Marouf was raised a Muslim, Esplin a Mormon). Yet, despite conceding that there is no agency policy that prevents child placement with same sex couples, see Hr'g Tr. (draft), Nov. 30, 2018, at 5-6, the Federal Defendants in this case wish to avoid the responsibility that comes with being good stewards of federal funds. They cannot do so.
The D.C. Circuit has recognized that a "federal court may find that a party has standing to challenge government action that permits or authorizes third-party conduct that would otherwise be illegal in the absence of the Government's action." Nat'l Wrestling Coaches Ass'n v. Dep't of Educ. ,
Plaintiffs' allegations here satisfy both the causation and redressability requirements. Recall, the Federal Defendants do not take the position that it is lawful to administer a federal program in a manner that disfavors same-sex couples. Defendants nevertheless issued grants to USCCB knowing that USCCB and its sub-grantees would not place a child with a same-sex couple. As Plaintiffs allege in their Complaint, USCCB's grant applications expressly stated that USCCB and its sub-grantees "must ensure that services provided ... are not contrary to the authentic teaching of the Catholic Church, its moral convictions, and religious beliefs ..." Am. Compl. ¶¶ 31-32. At the time, USCCB's position on same-sex marriage and the placement of children with same-sex couples was a matter of public record. See id. ¶¶ 35-37. So, too, were the teachings, convictions, and beliefs of the Catholic Church. Thus, "[w]hen ORR awarded the URM and UC grants to USCCB for the relevant period, it was on notice that USCCB's religious beliefs disfavored same-sex relationships." Id. ¶ 38. Accordingly, by partnering with USCCB to deliver services under the URM and UC Programs, the Federal Defendants "permit[ted] or authorize[d] third-party conduct," i.e., disfavoring sex-same couples in the placement of unaccompanied refugee minors, "that would otherwise be illegal in the absence of the Government's action." Nat'l Wrestling Coaches Ass'n ,
And there is more. Plaintiffs allege that they immediately notified ORR about their disqualification as foster parents based on their same-sex relationship. Id. ¶¶ 51-53. Yet, ORR did nothing to address, let alone remedy, the exclusion. See id. ¶¶ 53, 57. This inaction permitted USCCB to continue to use federal funds in a manner that disfavored same-sex couples. These allegations are sufficient at the motion-to-dismiss stage to establish both the "causative link" between government action (or inaction) and plaintiff's injury, Renal Physicians Ass'n v. U.S. Dep't of Health & Human Servs. ,
For their part, Defendants rely largely on one case, Freedom Republicans, Inc. v. Federal Election Commission ,
Though this case bears some resemblance to Freedom Republicans , it is different in two critical respects. First, USCCB's very ability to make decisions regarding the eligibility of same-sex couples as foster parents under the URM and UC Programs is enabled by their selection as a federal grantee, whereas the Republican Party's nominating process was put in place decades before it ever received federal funding. In other words, unlike a political party's creation of a nominations process, USCCB would have no say in qualifying persons to be a foster parent to unaccompanied refugee minors but for its receipt of federal funds. Second, unlike the plaintiffs in Freedom Republican who called on the FEC to adopt regulations to force the party to alter its nominating process, Plaintiffs here do not seek to use the levers of federal power to change USCCB's position on same-sex marriage. Instead, they seek injunctive relief requiring the Federal Defendants to ensure that they may apply to be foster or adoptive parents under the URM Program or the UC Program without disfavoring them based on their sexual orientation. Thus, they seek a change to the federal program itself, not USCCB's views on same-sex marriage. Nor do Plaintiffs demand an order compelling USCCB to place a child with them, notwithstanding its religious views on same-sex marriage.
Nor does the Supreme Court's decision in Simon v. Eastern Kentucky Welfare Rights Organization compel a different result, as USCCB insists. See USCCB Mem. at 8-9. In Simon , a group of indigent patients challenged an IRS Revenue Ruling that afforded favorable tax treatment to nonprofit hospitals that offered indigent patients emergency treatment only.
V. CONCLUSION
For the reasons discussed in this Memorandum Opinion, the court grants in part and denies in part Defendants' Motions to Dismiss. Plaintiff National LGBT Bar Association is dismissed from this case for lack of standing. Plaintiffs Marouf and Esplin have standing not as taxpayers, but as individuals. Plaintiffs Marouf and Esplin therefore may pursue each of their constitutional claims.
In the interim, at the court's suggestion, HHS has identified and is in the process of contracting with a child welfare organization that is willing to place children with same-sex couples. See Jt. Status Rpt., ECF No. 44; Notice and Unopposed Mot. for Status Conference, ECF No. 46. Though this agreement is not yet final, the court very much appreciates the agency's efforts.
In their prayer for relief, Plaintiffs suggest as injunctive relief placement of a child on a non-discriminatory basis through USCCB or stripping USCCB of funding. See Am. Comp. at 24. Plaintiffs have since backed off such demand for relief. See Pls.' Opp'n at 11 ("Plaintiffs do not demand that USCCB necessarily render the determination as to Fatma and Bryn's eligibility to be foster parents, or make the decision to place a child with Fatma and Bryn."). Indeed, Plaintiffs have signaled openness to relief that "accomodat[es] the religious views of URM and UC grantees," so long as it does not "ultimately restrict placement options based solely on USCCB's religious doctrine and does not impose materially unequal burdens, stigma, or indignity on religiously disfavored applicants relative to favored ones."