Circuit Split over Whether Supremacy Clause Confers Private Cause of Action: Fifth Circuit | Practical Law

Circuit Split over Whether Supremacy Clause Confers Private Cause of Action: Fifth Circuit | Practical Law

In Detgen v. Janek, the US Court of Appeals for the Fifth Circuit affirmed that there is an implied private cause of action under the Supremacy Clause to enforce Spending Clause legislation.

Circuit Split over Whether Supremacy Clause Confers Private Cause of Action: Fifth Circuit

by Practical Law Litigation
Published on 19 May 2014 • USA (National/Federal)
In Detgen v. Janek, the US Court of Appeals for the Fifth Circuit affirmed that there is an implied private cause of action under the Supremacy Clause to enforce Spending Clause legislation.
On May 16, 2014, noting the lack of precedent from the US Supreme Court and contrary authority from the US Court of Appeals for the Tenth Circuit, the US Court of Appeals for the Fifth Circuit followed its own precedent and held in Detgen v. Janek that the Supremacy Clause confers an implied private cause of action to enforce Spending Clause legislation (No. 13-10396 (5th Cir. May 16, 2014)).
The plaintiffs were Medicaid beneficiaries who suffered from physical disabilities. They requested the Texas Health and Human Services Commission to pay for ceiling lifts to assist in their movement but the commission denied coverage under a categorical exclusion in the state's Medicaid regulations.
The district court granted summary judgment to the state, finding that Texas did not need to cover the lifts if the state could not be reimbursed with federal money. The plaintiffs appealed and moved the court to vacate the judgment for reconsideration, arguing that Texas's categorical exclusions were preempted by federal law. The Fifth Circuit affirmed the summary judgment and denied the motion to vacate, finding that states have broad discretion to implement the Medicaid Act and that it was reasonable for Texas to deny coverage of the ceiling lifts.
Notably, however, the court held that the plaintiffs did have an implied cause of action to pursue these claims and enforce the requirements of the Medicaid Act, even though there was no rights-creating language in the Medicaid Act. Following Planned Parenthood of Houston & Southeast Texas v. Sanchez, the court reiterated that the Supremacy Clause confers a private cause of action to enforce Spending Clause legislation by bringing preemption actions in the Fifth Circuit (403 F.3d 324, 330-35 (5th Cir. 2005)).
In addition, the court noted that the US Supreme Court has not yet ruled on this issue (see Douglas v. Indep. Living Ctr. of S. Cal., Inc., 132 S. Ct. 1204 (2012)) while the US Court of Appeals for the Tenth Circuit recently ruled that the Supremacy Clause does not provide a private cause of action (Planned Parenthood of Kan. & Mid-Mo. v. Moser, 12-3178, (10th Cir. Mar. 25, 2014)).