Memorandum of Points and Authorities in Support of Motion to Stay and for a Protective Order; Motion for Protective Order; Motion to Stay
Public Court Documents
July 12, 1977
28 pages
-
Case Files, Hatcher v. Methodist Hospital - Hardbacks. Memorandum of Points and Authorities in Support of Motion to Stay and for a Protective Order; Motion for Protective Order; Motion to Stay, 1977. 6f6fd140-5484-f111-ab0f-7c1e527d528a. LDF Archives, Thurgood Marshall Institute. https://ldfrecollection.org/archives/archives-search/archives-item/a3e815fb-2572-4a9e-aa76-15a13c7cfdde/memorandum-of-points-and-authorities-in-support-of-motion-to-stay-and-for-a-protective-order-motion-for-protective-order-motion-to-stay. Accessed October 10, 2026.
Copied!
[||01b7126a-c2e1-4ff4-a3fd-ace9ede298c3||] IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION
RICHARD GORDON HATCHER, et al.,
Plaintiffs,
Ve. Civil No. H 77-154
METHODIST HOSPITAL OF GARY, INC.,
et al,
Defendants.
MEMORANDUM OF POINTS AND AUTHORITIES
IN SUPPORT OF MOTION TO STAY AND FOR A
PROTECTIVE ORDER
STATEMENT
Plaintiffs in this action l/ have filed what can best
be described as two distinct causes of action. The first
involves a question of whether the Methodist Hospital of Gary,
Inc. (Gary Methodist) has violated and is violating Title VI
of the Civil Rights Act, 42 U.S.C. § 20004 et. seg. and § 504
Of the Rehabllitation Act of 1973, 29 U.85.C. § 794, and
whether HEW has failed to enforce the assurances submitted
by Gary Methodist and has continued to give federal financial
assistance to a hospital which is allegedly violating Title
VI and § 504. These allegations require, of course, the
hospital as a party.
The second cause of action involves the question of
whether the Secretary has enforced the site selection regulation
of Title VI and § 504 throughout the country. It also
i/ This motion 1s directed toward the allegations in
the Hatcher case, but is equally applicable to Terry, et al.
vv, Methodist Hospital of Gary, Inc., et al., USDC ND, Ind.,
Civil Action No. 76-373, which plaintiffs have moved to
consolidate with this action.
alleges that proposals under §1122 of the Social Security
Act, 42 U.S.C. §1320a-1, trigger some sort of review under
Title VI and § 504. This second issue will involve extensive
discovery and the hospital is not a necessary party for
this litigation. In addition, these issues are now being
litigated by the same counsel 2/ in NAACP v. Wilmington Medical
Center USDC D Del., Civil Action No. 76-298 (Wilmington), an
action commenced in September of 1976. Discovery requested
in Hatcher has previously been requested and responded to in
Wilmington, a number of pre-trial motions have been briefed
argued and decided and administrative reviews by HEW regarding
the Title VI and Section 504 issues. Therefore, to require
HEW to now litigate the same issues in another forum at this
time would result in an unnecessary duplication of effort and
an burden on HEW. It may well be that resoluation by the Court
of these issues here will be expedited by ordering a stay of
these issues pending further action in the Wilmington suit.
Thus, this Court is respectfully requested to stay all issues
concerning HEW's nationwide enforcement of the site selection
regulation of Title VI and § 504 and the applicability of
Title VI and § 504 to a §1122 determination by the Secretary.
ARGUMENT
A. The Wilmington Case, Which Is On An
Expedited Schedule, Raises The Issue
Of Nationwide Enforcement Of The Site
Selection Provision Of Title VI and §504
On September 10, 1976, individual and organizational
plaintiffs in Wilmington brought suit in District Court
alleging that the proposed partial relocation 3/ of
2/ Marilyn Rose and Christine Hickman are counsel for
the plaintiffs in NAACP v. Wilmington Medical Center,
USDC D Del., Civil Action No. 76-298, and undersigned counsel,
Ms. Ross is counsel for the defendant Secretary.
3/ Wilmington Medical Center presently has one facility
in the inner city of Wilmington. It has proposed to relocate
part of that facility in Stanton, Delaware, approximately 8
miles away while retaining part of the facility in Wilmington.
Bed” Sa
Wilmington Medical Center would violate Title VI and § 504.
The hospital does not receive Hill Burton funds but it does
receive funds under the Medicare, Medicaid and Maternal
and Child Health programs. In addition, because the
Secretary acceded to the State's favorable finding under
§1122 (as he was required by statute to do), HEW determined
that the amounts attributable to the capital expenditure
would not be disallowed because they did not need health
planning criteria, standards and plans as developed by
Delaware. 4/ Thus, the first issue in the Wilmington
case involves whether the hospital has violated Title VI
and § 504 and whether HEW has continued to give federal
funding to a hospital which plaintiffs have alleged is
discriminating. 5/
The second issue in Wilmington is whether the Secretary
has enforced the site relocation provision of Title VI and §
504 nationwide. And, the plaintiffs have also alleged that
the §1122 determination by the Secretary can only be made
after a Title VI and § 504 investigation is made. These
issues do not involve the hospital.
Pursuant to a request by the hospital, Judge Latchum
put the case on an expedited schedule. HEW moved to dismiss,
or in the alternative, for summary judgment based on the
argument that plaintiffs had failed to exhaust their
administrative remedies and that Title VI and § 504 concerns
attached to the underlying Medicare, Medicaid, and Maternal
4/ The Secretary's §1122 determination did not mean that
the hospital was guaranteed an increase in funding or
any funding and indeed, if its activities violated some
other statutory provision such as Title VI or § 504, all
funds could be terminated.
5/ There is also an issue concerning the environmental
consequences of the proposed partial relocation which is
not pertinent to this motion.
and Child Health programs and were not triggered by a
§1122 determination by the Secretary.
The Court in its January 19, 1977 decision
F. Supp. (D. Del. 1977), denied all motions and told
the Secretary that he was to treat the complaint as if it were
filed administratively or waive his exhaustion argument.
Prior to receiving that decision, HEW began its administra-
tive investigation. A report on that investigation was filed
on July 6, 1977. The Court reserved ruling on the overall
issues concerning §1122 and basically divided the lawsuit
into the issues which involved both the hospital and the
Secretary and those which involved only the Secretary. The
former will be disposed of on a very expedited schedule in
order to not prejudice the hospital. The latter are moving
as quickly as plaintiffs complete discovery.
B. The Wilmington Case Has Already
Included Extended Discovery Similar
To That Requested In This Case
Plaintiffs' in this case have filed Requests For Admis-
sions, First Interrogatories to HEW, and Requests For Produc-
tion Inspection and Copying Of Documents. HEW's response to
the Request For Admissions is one of the documents filed
today.
The interrogatories served June 10, 1977 are very
similar to that requested in Wilmington. (See Attachment 1).
Most of the questions are, however, related to the cause
of action against both HEW and the hospital. The only
interrogatory for which protective order is sought is 18(a)-(f).
This interrogatory is not limited to Indiana or even to
Region V of HEW. It requests extensive information concerning
the relocation and for construction of second hospital
facilities throughout the country which received federal
funding for the last five years. That is particularly
burdensome in light of Request For Production, Inspection
and Copying number 5 which requires HEW to produce all
civil rights files for every health facility relocation and
for displacement project for the past 5 years. 6/ Moreover
much of the information requested in 18(c) and (4d) was
requested in plaintiffs' second interrogatories in the
Wilmington case. HEW explained that it did not have the
information concerning the patient population by age, race
and national origin and when plaintiffs moved to compel
the Court held that HEW did not have control over that
information. See Attachment.
The Request for Production, Inspection and Copying
Of Documents presents an even clearer reason for staying
nationwide discovery. As Attachment 2X demonstrates,
Requests 1-17 were already responded to in Wilmington.
While HEW does not object to obtaining the documents in
Requests 10 and 17 for Region V since those documents were
only obtained earlier for Region III, the other requests
would be duplicative of materials plaintiffs' counsel has
already obtained. HEW should not be required to again
gather and copy those documents for plaintiffs' counsel.
Thus, HEW requests a protective order as to Requests 1-17
except for 10 and 17 for which HEW will provide the infor-
mation for Region V.
6/ As discussed infra., these files have already been
turned over to Ms. Rose and Ms. Hickman in the Wilmington
case.
C. Plaintiffs' Rights In Hatcher Will
Be Protected If This Action Is Stayed
The cause of action against the Secretary for enforce-
ment of Title VI and § 504 will not require extensive, if
any, testimony by individual plaintiffs. It will potentially
involve testimony or evidence by HEW officials and outside
health experts. Those persons will undoubtedly be examined
by plaintiffs' counsel in Wilmington and full exploration of
this issue can occur there. To require HEW to try the same
issue with the same persons testifying and with the same
counsel present amounts to a kind of forum shopping in which
HEW must bear the burden.
And if plaintiffs should feel that some issue was not
explored in Wilmington after a decision is reached there,
the discovery could be transferred to this Court for the
purpose of exploring that issue. Thus a stay of this action
will not in any way prejudice the rights of plaintiffs.
D. It Is Within This Court's Discretionary
Power To Stay This Issue
1A Moore's Federal Practice 40.204 at p. 2201
states:
All courts, federal and state, have a
broad and inherent power to control
their own processes to prevent abuse,
oppression, or unnecessary hardship;
and to do substantial justice. Included
within this broad power is a general
power to stay an action pending before
it, as incidental to control over causes
on the court's docket, when reasonably
exercised in light of all competing
interests.
The Supreme Court in Landis v. North America, 299 U.S.
248 (1936), explained the perameters of this discretionary
power:
Viewing the problem as one of power,
and of power only, we find ourselves
unable to assent to the suggestion that
before proceedings may be stayed to
abide the proceedings in another, the
parties to the two causes must be shown
to be the same and the issues identical.
... [Tlhe power to stay proceedings is
incidental to the power inherent in every
court to control the disposition of the
causes on its docket with economy of time
and effort for itself, for counsel, and
for litigants. How this can best be done
calls for the exercise of judgment, which
must weigh competing interests and maintain
an even balance. (cites omitted). True,
the applicant for a stay must make out
a clean case of hardship or inequity in
being required to go forward, if there
is even a fair possibility that the stay
for which he prays will work damage to
someone else. Only in rare circumstances
will a litigant in one cause be compelled
to stand aside while a litigant in another
settles the rule of law that will define
the rights of both. Considerations such
as these, however, are counsels of moderation
rather than limitations upon power.
Id. at 254-55. See also, Rodgers v. United States Steel
corp., 508 F 24 152, 162 (34 Cir. 1975); Rosenfeld v,.
Schwitzer Corp., 251 ¥. Supp 758, 763 (SD NY 1966).
The instant case presents a strong justification for
a stay of the nationwide issues and its corresponding
discovery. Both suits ask for what amounts to a declaration
that the Secretary has not fulfilled his responsibilities
in enforcing the site selection regulation of Title VI
and § 504. The counsel for both HEW and the plaintiffs
are the same. The discovery requested would be the same.
The persons testifying if trial becomes necessary would
be the same. And the discovery in Wilmington has already
been extensive. Plaintiffs have taken the depositions of
two past directors of the Office for Civil Rights and
the former and present directors of the § 504 program
as well as two sets of interrogatories, two requests for
production of documents and one request for admissions.
To require HEW to needlessly repeat this discovery in
order for plaintiffs to obtain two decisions on the same
issue is a waste of the Court's time as well as that of
the parties and counsel. Furthermore, it will prejudice
the rights of Gary Methodist through extensive delays.
Such delays will work its greatest prejudice on the rights
of those Medicare, Medicaid and Maternal and Child Health
program recipients. On the other hand, as explained,
supra, the plaintiffs in this case will be in no way
prejudiced by the stay.
CONCLUSION
Defendant Joseph Califano respectfully requests
that the nationwide issues be stayed; that a protective
order be entered as to discovery on those issues; and
that the issues concerning Gary Methodist proceed as
expeditiously as possible.
Respectfully submitted,
BARBARA ALLEN BABCOCK
Assistant Attorney General
RICHARD L. KIESER
United States Attorney
OF COUNSEL:
JEFFREY CHAMPAGNE
U.S. Department of Health,
Education and Welfare
MARVIN G. GARVIN
Regional Attorney
EDWARD L. KOVEN
Assistant Regional Attorney
Department of Health,
Education and Welfare
300 South Wacker Drive
18th Floor
Chicago, Illinois
FRED W. GRADY
Assistant United States Attorney
DENNIS G. LINDER
REBECCA L. ROSS
Attorneys for Defendant
Attorneys, Department of Justice
Washington, D. C. 20530
Telephone: 739-4267
CERTIFICATE OF SERVICE
I certify that copies of Motion For Protective Order;
Motion To Stay; Motion For Extension Of Time; Memorandum Of
Points And Authorities In Support Of Motion For Extension
Of Time; Defendant's Response To Plaintiffs' First Request
For Admission To United States Secretary Of Health, Education
And Welfare; and Memorandum Of Points And Authorities In Support
Of Motion To Stay And For A Protective Order have been served
this \ 2X day of July, 1977 by mailing postage prepaid
£oO:
Ms. Beth Lief
Mr. Jack Greenberg
Mr. Melvyn Leventhal
10 Columbus Circle
New York, New York 10019
Mr. Julian Allen
2009 Broadway
Gary, Indiana 46407
Ms. Marilyn G. Rose
Ms. Christine B. Hickman
1757 N Street, N.W.
Washington, D.C. 20036
Mr. Bruce E. Sayers
Hodges, Davis, Greenberg, Compton
& Sayers
5525 Broadway
Gary, Indiana 46401
Kipton Kaplan
Executive Director, Northern Indiana
Comprehensive Health Services
Agency, Inc.
900 East Colfax Avenue
South Bend, Indiana 46617
Michael Schaefer
Assistant Attorney General
of Indiana
219 State House
Indianapolis, Indiana 46204
REBECCA 1. Gr
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IN THE UNITE
FOR THE DY f
a
i
l
7 3 =
NATIONAL ASSOCIATION FOR THD *
ADVANCEMENT OF COLORED PEOPLE, *
ET AL., *
¢ ”~
Plaintiffs *
*
”
vs. * CIVIL ACTION NO. 76-298
: *
THE WILMINGTON MEDICAL CENTER, *
ET AL., *
*
Defendants Ld
>
gels ale leat aly ale alee Sale alee wl ely le Malle Wale Talons
REQUEST. POR PRODUCTION, INSPECTION, AND COPYING
OF DOCUMENTS UPON DEFENDANT SECRETARY OF HEALTH,
EDUCATION, AND WELFARE
Pursuant to Rule 34 of the Federal Rules of Civil Procedure,
plaintiffs request that the following documents be made available
£0 plaintiffs, by their counsel, at the Suinolpa offices of the
Office for Civil Rights, 300 Independence Avenue., S.W., Wash-
ington, D. 'C., on Januvary 24, 1577:3/
(1) All drafts of the State Agency guidelines prior to
rorkvthe draft dated August, 1975;
{2) Transcripts, tapes, summaries, comments, criticisms,
on the State Agency guidelines of August, 1975 by
Peter Holmes (former director of the Office for
Civil Rights), Martin Gerry (present Director of
the Office for Civil Rights), and by the regional
and national chiefs of the Health and Sccial Ser-
vice Branch, Office for Civil Rights;
1/
—' Please note that the ~~ ese requests, with minor modifications, are
the identical requests rth in attachment to hand-delivered
letter dated December 13, 1 , which followed and grew out of
depositions of December 8-9, 1976. Although Counsel for the
Justice Department, at the depositions, indicated that documents
requested orally at the depositions would be made available if
the requests were reduced to writing, and plaintiffs counsel in
the December 13, -1978, letter asked that three of the items be
made available by Thursday, December 16 (items (1), (16) and (17)}))
-
SC
Y
!
and indicated that piecemeal production would be acceptable, no
~ 3 Lo } ig N Ed a an Wa - ~ 1 =y $= production has occurred to date “A Na -
(3)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
££
Corrected copy of enforcement activity chart for
1975, and copies of similar charts for all years from
1972 to date;
Complete civil rights file for the Methodist Hospital,
Gary, Indiana;
All civil rights files for all health facility reloca-
tion and/or displacement projects for the past five
years, and if the project was a Hill-Burton facility,
Part I of the Hill-Burton srpiication and the narra-
tive description of the project;
Policy paper from Region V on the problem of reloca-—
tion of health facilities, and comments, memoranda,
letters, and criticisms from the Regional Health
Directors and from all persons within the Office for
Civil Rights and the Health Resources Administration,
both from Region V and Washington;
Any document from the Office for Civil Rights to the
Office of Surplus Property, DHEW, concerning possible
civil rights consequences and/or advisability of a
civil rights review in the circumstances of the
Chicago Vateran's Hospital;
Copy of Notice of Hearing, Letter of Noncompliance,
and any other public documents involving the Park
City Hospital, Bridgeport, Connecticut;
Civil Rights file on West Virginia relocation project;
Current enforcement activity report for Region III
showinc¢ each health and social service civil rxichts
matter in the office;
All civil rights files for all Hill-Burton projects
showing civil rights issues considered by Office for
Civil Rights and State Hill-Burton agencies for past
five years;
»
(12)
£13)
(14)
(15)
(16)
(17)
Date:
’
-
i Copies of all reports received from the Delaware
Department of Health and Social Services since July 10,
1975;
All complaints under section 504, date received,
whether resolved (and if so, how resolved), whether
on-site reviews conducted, and program area (health,
education, social services, etc.);
All complaints raising site location issue under
either Title VI or section 504;
Letters finding violations and notices of opportunity
for hearing under section 504;
Worksheets, charts, inventories, and other documents
showing number of person days needed to perform each
of the component parts of the civil rights program
for each Region developed during survey by Office
for Civil Rights team in summer of 1975;
Staff allocation and actual positions filled in
Health and Social Services Branch of the Office for
Civil Rights for the past five years, nationwide and
in Region III.
Respectfully submitted,
Marilyn G. Rose
Christine B. Hickman
Center for Law and Social Policy
1751 N Street, BW
Washington, DC 20036
{202) 872-0670
Joseph Flowers
1300 North Broom Street
Wilmington, DE 19806
{302) 655-3338
Of Counsel:
Chavies UH. doliver, IV
eb pic IO cll Be adh ov. ~ 1 - fo RE J " Ng - i Aida Wasersteiln Alan Bernard Scher
Community Legal Aid Asgistant City Solicitors
204 West 7th Street 252 Public Building
Wilmington, DE 19801 Wilmington, DE 19801
(302) 571-4200
CERTIFICATE OF SERVICE
ereby certify that on this date, copies of t
request for production have been served upon counsel
as follows:
1
n
Hand-delivery upon:
Rebecca Ross
General Litigation, Civil Division
Department of Justice
Room 3342, Main Justice
Washington, D., CC... . 206530
First-class mail upon:
Rodney M. Layton
Wendel Fenton
Richards, Layton & Finger
4072 DuPont Building
Vilmington, DE 15889
Malcolm Cobin, Assistant Attorney General
Division of Public Health
State of Delaware
Room 420, Jesse Cooper Bldg.
Dover, DE. 19801
WW. Laird Stabler
U.8. Attorney
New Federal Building
9th" and King Streets
Wilmington, DE 19801
William C. Gordon
2501 Silverside Road
Suite £5
Wilmington, DE 19810
(President, Hercules)
JL un SAY
Date: ' |
“I \ Hs Joseph Flowers
*
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION
RICHARD GORDON HATCHER, et al.,
Plaintiffs,
v. ; Civil No. H 77-154
METHODIST HOSPITAL OF GARY, INC.,
ét al.,
Defendants.
MOTICN FOR PROTECTIVE ORDER
Defendant Joseph A. Califano, Secretary of the Department
of Health, Education, and Welfare by his undersigned attorneys,
hereby moves this Court, pursuant to Rule 26(c) of the Federal
Rules of Civil Procedure, for a protective order limiting
discovery to the causes of action described in paragraphs 25 (a)
and (b); 26{a), (bb), (coc), (e) and (£); 27(a) and (bb); 2%3{(a) and
26 (1) of the Complaint until further order of the Court so
that discovery is limited to issues concerning defendant Methodist
Hospital of Gary, Inc.
The grounds for this motion are that similar issues raised
by the complaint are now pending in NAACP v. Wilmington Medical
Center, USDC D Del., Civil Action No. 76-298, an action commenced
in September of 1976 and which is being litigated on an expedited
basis, and that to produce identical information and litigate
identical issues is unduly burdensome and inefficient for the
Court, counsel and the parties.
*
In support of this Motion, the Court is respectfully
referred to the Memorandum Of Points and Authorities In
Support Thereof filed herewith.
OF COUNSEL:
JEFFREY CHAMPAGNE
U.S. Department of Health,
Education and Welfare
MARVIN G. GARVIN
Regional Attorney
EDWARD L. KOVEN
Assistant Regional Attorney
Department of Health,
Education and Welfare
300 South Wacker Drive
18th Floor
Chicago, Illinois
Respectfully submitted,
BARBARA ALLEN BABCOCK
Assistant Attorney General
RICHARD 1.. KIESER
United States Attorney
FRED W. GRADY
Assistant United States Attorney
DENNIS G. LINDER
REBECCA L. ROSS
Attorneys for Defendant
Attorneys, Department of Justice
Washington, D. C.
Telephone:
20530
739-4267
4 *
IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF INDIANA
HAMMOND DIVISION
RICHARD GORDON HATCHER, et al.,
Plaintiffs,
Vv. Civil No. H 77-154
METHODIST HOSPITAL OF GARY, INC.,
et al.,
Defendants.
MOTION TO STAY
Defendant Joseph A. Califano, Secretary of the
Department of Health, Education, and Welfare hereby moves
this Court to stay until further Order of the Court the issues
described in paragraphs 26(d), {(g), (h) and (3); 27(c); 28(b);
and paragraph 26(i) of the Complaint except as it relates
to defendant Methodist Hospital of Gary, Inc.
The grounds for this motion are that virtually identical
issues are now pending in NAACP v. Wilmington Medical Center,
USDC D Del., Civil Action No. 76-298, an action commenced
in September of 1976 and which is being litigated on an expedited
basis and that to produce identical information and to litigate
at this time identical issues in this action would be inefficient
and a waste of judicial time and resources.
In support of this Motion, the Court is respectfully
referred to the Memorandum of Points and Authorities In Support
filed herewith.
Respectfully submitted,
Barbara Allen Babcock
Assistant Attorney General
a. *
Richard 1. Kieser
U.S. Attorney
Fred W. Grady
Assistant U.S. Attorney
Dennis G. Linder
RY. 2 7 >
F Yn Von A A os A IML CA NT rel
Rebecca L. ROSS
Attorneys for Defendant
Attorneys, Department of Justice
10th & Pennsylvania Ave., N.W.
Washington, D.C. 20530
Tel: (202) 739-4267
Of Counsel:
Jeffrey Champagne
U.S. Department of Health, Education,
and Welfare
330 Independence Ave., S.W.
Washington, D.C.
Marvin G. Garvin
Regional Attorney
Edward L. Koven
Assistant Regional Attorney
Department of Health, Education,
and Welfare
300 South Wacker Drive, 18th Fl.
Chicago, 111. [||01b7126a-c2e1-4ff4-a3fd-ace9ede298c3||]