Eleventh Amendment immunity "extends to state agencies and to state officers who act on behalf of the state"

The complaint [Plaintiff] sued the New York State Department of Labor [NYSDOL]  in federal district court alleging that an employee of NYSDOL unlawfully adjusted her unemployment benefits claim resulting in her having to repay the agency more than $9,000.

Noting that Plaintiff's complaint did not specify a cause of action or any statute pursuant to which she was suing, the United States Court of Appeals, Second Circuit, observed that the federal district court had, sua sponte,* dismissed Plaintiff's complaint as frivolous because NYSDOL was immune from suit under the Eleventh Amendment of the Constitution of the United States. In addition, the district court had denied Plaintiff's motion for leave to amend her complaint on the ground that it would be futile as NYSDOL was immune from lawsuit in federal courts.

Noting the Plaintiff had forfeited any challenge to the district court's rulings that NYSDOL was immune from suit and that amending her complaint would be futile by failing to address these determinations in her brief, the Circuit Court opined that were it to reach the merits of the district court's decision it would conclude that the district court did not err as district courts have the inherent power to sua sponte dismiss a complaint as frivolous, "even where, as here, the plaintiff has paid the filing fee."

Citing its decision in Livingston v. Adirondack Beverage Co., 141 F.3d 434, the Circuit Court of Appeals said that "A complaint is frivolous when "(1) the factual contentions are clearly baseless . . . ; or (2) the claim is based on an indisputably meritless legal theory." One example of a claim "based on an indisputably meritless legal theory" offered by the Circuit Court was an action brought against a "defendant [that is] immune from suit."

The Circuit Court said that the district court correctly held that NYSDOL is immune from suit under the Eleventh Amendment, which precludes suits against states and state agencies unless the state expressly waives its immunity or Congress abrogates that immunity and the Eleventh Amendment immunity "extends to state agencies and to state officers who act on behalf of the state."

As Congress has not abrogated New York's immunity against suit in this circumstance nor has New York waived its immunity from suit, the Circuit Court concluded that "the district court did not err in sua sponte dismissing [Plaintiff's] complaint as frivolous" as the NYSDOL is immune from suit brought in federal courts.

* Sua sponte [or suo motu] is an action taken by a court without formal prompting or motion by a party in the action.

The decision is posted on the Internet at: 

https://www.courtlistener.com/opinion/4764763/jordan-v-new-york-state-dept-of-labor/

New York-New Jersey Port Authority held subject to New York State's laws involving health and safety

The New York-New Jersey Port Authority's [Authority] appealed Supreme Court's rejection of its argument that, as a bistate entity created by a federally approved compact, it cannot be held liable under New York State's Whistleblower Laws, Labor Law §§215 and 740. 

Citing Agesen v Catherwood, 26 NY2d 521, the Appellate Division affirmed the Supreme Court's ruling that the Authority is "subject to New York's laws involving health and safety, insofar as its activities may externally affect the public."

The court explained that the "express purpose of Labor Law §740 is to protect public health and safety" and as it stated in Rosario v Port Auth. of N.Y. and N.J., 179 AD3d 516, "[t]he Compact Clause of the United Stated Constitution is not implicated by the application of such New York workplace safety statutes to [a] Port Authority work site located in New York."

The decision is posted on the Internet at:

http://www.nycourts.gov/reporter/3dseries/2020/2020_03459.htm

New York State Comptroller issues audits of state departments and agencies

New York State Comptroller Thomas P. DiNapoli announced the following audits were issued during the week ending July 17, 20200. To access the full report click on the data highlighted in color.

Office of Parks, Recreation and Historic Preservation: Compliance with Navigation Law (2019-S-59) The office has developed and implemented controls to adequately monitor and enforce requirements for safety and quality of life on state waters in accordance with Navigation Law. However, auditors identified several aspects of the office’s oversight that could be strengthened to maximize the efficiency of state marine law enforcement resources and improve its ability to assess boating safety risks and mitigate them.

Department of Health (DOH): Medicaid Overpayments for Medicare Part B Services Billed Directly to eMedNY (Follow-Up) (2020-F-4) An audit issued in December 2018 identified up to $8.7 million in improper payments for Part B deductibles and coinsurance. Auditors determined many of the overpayments occurred because controls were not in place to prevent the payment of coinsurance for non-covered services as well as excessive annual deductibles. In a follow-up, auditors found DOH made some progress in addressing the problems identified in the initial audit. However, the Office of the Medicaid Inspector General only recovered about $325,000 of the overpayments identified.

Department of Health: Medicaid Program: Medicaid Overpayments for Medicare Advantage Plan Services (Follow-Up) (2020-F-2) An audit issued in December 2018 identified almost $12.8 million that was paid for services typically covered by recipients’ plans. Many overpayments occurred because adequate controls were not in place to detect the improper claims. In a follow-up, auditors found DOH made some progress in addressing the problems identified in the initial audit report; however, additional action is needed. In particular, the Office of the Medicaid Inspector General had yet to take action on approximately $11 million of the identified claims.

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