SAM FRIEDENBERG, ET AL V. LANE COUNTY, ET AL, No. 21-35078 (9th Cir. 2023)
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The Federally Supported Health Centers Assistance Act (“FSHCAA”) provides that health centers receiving funding under Section 330 of the Public Health Service Act (“PHSA”) may be deemed Public Health Service (“PHS”) employees. Plaintiffs alleged that Defendants violated their duty to report a court-ordered Lane County Mental Health patient’s refusal to comply with the terms of his probation. Plaintiffs alleged they were injured as a result of Defendants’ failure to report a patient’s repeated failures to comply with his mental health treatment plan. Defendants contended that they were entitled to Section 233 immunity. The district court held that Section 233 immunity did not apply to Defendants and remanded to state court.
The Ninth Circuit reversed the district court’s order remanding to state court Plaintiffs’ action alleging negligence and wrongful death claims against federally funded community health centers and their employees (“Defendants”), and remanded to the district court to enter an order substituting the United States as the defendant and deeming the action as one brought under the Federal Tort Claims Act. The panel first addressed whether there was jurisdiction to review the district court’s remand order. Ordinarily, a remand order is not reviewable on appeal, except for cases removed pursuant to 28 U.S.C. Section 1442. The panel agreed with Defendants that Section 233 immunity did not turn on who brings the claim, but rather on whether the conduct giving rose to the claim arose out of the Defendants’ performance of “medical, surgical, dental or related functions.”
Court Description: Federal Immunity / Removal The panel reversed the district court’s order remanding to state court Plaintiffs’ action alleging negligence and wrongful death claims against federally funded community health centers and their employees (“Defendants”), and remanded to the district court to enter an order substituting the United States as the defendant and deeming the action as one brought under the Federal Tort Claims Act.
The Federally Supported Health Centers Assistance Act (“FSHCAA”) provides that health centers receiving funding under § 330 of the Public Health Service Act (“PHSA”) may * The Honorable John R. Tunheim, Chief United States District Judge for the District of Minnesota, sitting by designation.
be deemed Public Health Service (“PHS”) employees. PHS employees are granted immunity from certain claims arising out of their performance of “medical, surgical, dental or related functions.” 42 U.S.C. § 233(a). Plaintiffs alleged that Defendants violated their duty to report a court-ordered Lane County Mental Health patient’s refusal to comply with the terms of his probation. Plaintiffs alleged they were injured as a result of Defendants’ failure to report a patient’s repeated failures to comply with his mental health treatment plan. Defendants contended that they were entitled to § 233 immunity. The district court held that § 233 immunity did not apply to Defendants and remanded to state court.
The panel first addressed whether there was jurisdiction to review the district court’s remand order. Ordinarily, a remand order is not reviewable on appeal, except for cases removed pursuant to 28 U.S.C. § 1442. The parties disagreed about whether Defendants removed the case under § 1442. As a threshold matter, the panel held that plaintiffs waived their objection to the timeliness of Defendants’ removal by failing to properly raise it in district court. Next, the panel held that the United States’ argument that this case was never removed pursuant to § 1442 failed. The notice of removal did not cite only to § 233 as a basis for removal jurisdiction. The notice of removal set forth additional grounds by referencing, among other statutes, § 1442 as a basis for federal question jurisdiction. The panel held that Defendants’ notice of removal contained sufficient facts to invoke § 1442 as a basis of removal. The district court’s entire order is reviewable on appeal, and there is jurisdiction to review the district court’s remand order.
Next, the panel turned to whether § 233 immunity applied in this case. Congress extended the immunity protection provided to actual PHS employees in § 233(a) to “deemed” PHS employees under § 233(g). The parties did not dispute that Defendants were deemed PHS employees during the relevant period. The panel agreed with Defendants that § 233 immunity did not turn on who brings the claim, but rather on whether the conduct giving rose to the claim arose out of the Defendants’ performance of “medical, surgical, dental or related functions.” Nothing in § 233(g)(1)(B) limits immunity protection to a particular class of plaintiffs; rather, the statute contemplates the types of actions for which deemed PHS employees are covered. To the extent the district court ruled that § 233 did not apply in this case because Plaintiffs were not “patients,” that was legal error. The panel also held that Plaintiffs’ argument that deemed employees receive limited protection under § 233 lacked merit. The panel rejected Plaintiffs’ contention that § 233 was enacted only to cover medical malpractice claims. Section 233(a) plainly encompasses damages stemming from the performance of medical and “related” functions.
The panel next considered whether § 233 immunity applied in this case. The panel held that Defendants’ failure to report the patient’s violations of his treatment plan to the municipal court was a “related function” under § 233(a). Any duty that the Defendants had to report the patient’s violations and potential threat to the public was tied to their status as medical health professionals. The panel concluded that that the tortious conduct in this case qualified as a “related function” under § 233(a).
Finally, the parties contested whether Defendants’ tortious conduct fell outside of their § 330 grant activities. The panel rejected Plaintiffs’ argument that the tortious conduct in this case did not relate to Defendants’ grant-supported activity because Lane County never mentioned the “Jail Diversion Program” in its grant application. An applicant need not identify the specific names of the programs that will refer patients to the applicant health centers. The panel also rejected Plaintiffs’ argument that the Jail Diversions Program was state funded and thus fell outside of the grant’s scope. Accordingly, Defendants’ tortious conduct fell within the scope of their § 330 grant. The panel concluded that because the Defendants met the qualifications set forth in § 233(a), they were entitled to immunity in this case.
The panel reversed the district court’s order remanding the case to state court, and remanded to the district court to enter an order substituting the United States as the defendant and deeming the action as one brought under the Federal Tort Claims Act.
Judge Nguyen dissented because in her view this Court lacks jurisdiction over the appeal. She wrote that a fair reading of the notice of removal here showed that the Lane County defendants never asserted their intention to remove this case under § 1442. She would dismiss the appeal for lack of jurisdiction.