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Ortiz v. Eichler
794 F.2d 889 (3d Cir. 1986) ; Clearinghouse Number: 35980
Description
DHSS Ordered to Comply with Federal Regulations Regarding Prehearing Notices and Confrontation of Witnesses
Abstract
The Third Circuit has affirmed the district court's order
requiring the Delaware Department of Health and Social Services
(DHSS) to provide detailed explanations concerning calculations and
requirements for federally funded welfare programs in prehearing
notices in compliance with federal regulations and, further, to
comply with federal regulations governing the use of adverse
statements of absent witnesses in administrative hearings to
determine eligibility for welfare benefits. Plaintiff class,
consisting of recipients of or applicants for federally funded
public assistance, was awarded partial summary judgment and
declaratory and injunctive relief in their challenge to practices
of DHSS in conducting administrative hearings that were held by the
district court to violate federal regulations for the AFDC, food
stamp, and Medicaid programs, as well as due process rights. Only
two of these issues were appealed by DHSS, and on both issues the
Third Circuit has affirmed the lower court's decision. The
first issue concerns the content of notices of adverse action in
public assistance terminations, reductions, or denials. The
district court ordered that the notices must contain a detailed,
individualized reason for the action proposed and, if calculations
were involved in the determination, the notices must disclose the
calculations performed and the source or identity of the figures
involved. In addition, the notices must contain, where appropriate,
the maximum income and resource limits for the appropriate
household size. On appeal, DHSS contended that this notice goes
beyond the minimum requirements of due process and applicable
federal regulations. The Third Circuit held that the district court
properly looked to requirements mandated by the due process clause
to flesh out the details of the requirements for adequate notice
set forth in the federal regulations. The second issue concerns
claimants' right to confront and cross-examine adverse
witnesses at an administrative hearing. The district court ordered
that certain hearsay evidence be excluded from consideration at the
hearing where there is no opportunity to confront and cross-examine
adverse witnesses. DHSS contended on appeal that the district
court's injunction was overbroad. The Third Circuit disagreed,
noting that the district court's decision was based solely on
federal regulation and did not prohibit all forms of hearsay
evidence. The district court's order does not prohibit hearsay
that falls within recognized exceptions to the hearsay rule, or for
which the claimant has had a prior chance to confront the witness.
Counsel notes that, in many cases in Delaware, the opportunity to
confront and cross-examine adverse witnesses is denied due to the
lack of subpoena power by the agency administering public
assistance programs. In the future, counsel stresses, if witnesses
are not voluntarily present, their testimony cannot be considered
in reaching a hearing decision.
