State Licensing Agencies Are Not Required to Make Licensing Dependent on ADA Compliance.
Ivy v. Williams No. 14-50037 March 30th, 2015
Ivy and the other class representatives filed a putative class action on behalf of hearing impaired residents of Texas against Michael Williams in his official capacity as head of the Texas Education Agency (“TEA”).In Texas, individuals under the age of 25 cannot obtain driver’s licenses unless they submit a driver education certificate to the Department of Public Safety. Driver education certificates are only available from private driver education schools licensed by the TEA.
Plaintiffs claimed that licensed driver education schools refused to accept them because they are deaf. In response to plaintiffs complaint to the TEA, the TEA, declined to intervene, stating that it was not required to enforce the ADA and that it would not act against the private driver education schools unless the United States Department of Justice (“DOJ”) found that the schools had violated the ADA. Accordingly, the same Deafness Resource Specialist filed a complaint against the TEA with the DOJ, which the DOJ apparently dismissed. Ivy then filed the underlying lawsuit in Federal District Court against the TEA and a private driver education school, requesting injunctive and declaratory relief against both parties under the ADA. She later dismissed the private driver education school from the lawsuit. Additional procedural steps, none of which is relevant to this appeal, were taken and Ivy’s lawsuit became a putative class action with multiple named plaintiffs and the TEA as the sole remaining defendant. The live pleading, the Fourth Amended Complaint, requested injunctive and declaratory relief requiring the TEA to bring driver education into compliance with the ADA. The TEA filed a motion to dismiss for want of jurisdiction and for failure to state a claim. The District Court denied TEA’s motions on both bases, certifying its order for immediate appeal, and staying the case. The Fifth Circuit granted leave to the TEA to pursue its interlocutory appeal.
On appeal, TEA first argued that the named plaintiffs lack standing to bring their claims. Here, it was “quite obvious” the plaintiffs had suffered an “injury in fact,” but TEA challenged that there was no “causal connection between the injury and the conduct complained of,” and that it was not “likely, as opposed to merely speculative, that the injury will be redressed by a favorable decision.” Lujan v. Defenders of Wildlife, 504 U.S. 555, 560–61 (1992). TEA argued that there was no causal connection between the named plaintiffs’ injury and the TEA’s conduct because it was the driver education schools, not the TEA, that refused to accommodate the named plaintiffs. This contention the Court found to be meritless, explaining: “While driver education schools’ actions are one cause of the injury, it is equally clear that the named plaintiffs’ alleged injuries are also ‘fairly traceable’ to the TEA’s failure to inform private driver education schools of their ADA obligations and its failure to deny licenses to driver education schools that violate the ADA.” Similarly, the Court rejected TEA’s arguments that a Court order could not redress the plaintiffs’ alleged injuries, instead finding that it was “likely that the TEA’s action would help redress the named plaintiffs’ injuries.” Despite finding that plaintiffs had standing to bring their claims, the Court resolved that their lawsuit failed on the merits. Title II of the ADA provides that “no qualified individual with a disability shall, by reason of such disability, be excluded from participation in or be denied the benefits of the services, programs, or activities of a public entity, or be subjected to discrimination by any such entity.” 42 U.S.C. § 12132. Here, it was uncontested that the TEA was a public entity and that the named plaintiffs were qualified individuals with disabilities. The key question, however, was whether the named plaintiffs had been “excluded from participation in or [] denied the benefits of the services, programs, or activities of [the TEA].” In answering that question in the negative, the Court deemed it a close question for which the statutes, regulations, and case law provided little concrete guidance, but nevertheless held that driver education was not a service, program, or activity of the TEA. In sum, the Court held that the mere fact that the driver education schools are heavily regulated and supervised by the TEA does not make these schools a “service, program, or activity” of the TEA, theorizing that “[o]therwise, states and localities would be required to ensure the ADA compliance of every heavily-regulated industry, a result that would raise substantial policy, economic, and federalism concerns.” In so ruling, the Fifth Circuit joined the Second Circuit in holding that public entities are not responsible for ensuring the ADA compliance of even heavily-regulated industries. For those reasons, the Court reversed the District Court’s order denying the TEA’s motion to dismiss and rendered judgment dismissing the case with prejudice for failure to state a claim upon which relief could be granted.
Judge WIENER concurred in part and dissented in part. He concurred in the panel majority’s holding that the named plaintiffs had standing to bring their ADA claims, but respectfully dissented on the merits. In Judge WIENER’s opinion, the TEA’s involvement in driver education in Texas does constitute a service, program, or activity under Title II of the ADA, which in turn requires TEA to ensure that its licensee driving schools accommodate the deaf. To his mind it was “abundantly clear that driver education is not merely a passively licensed, private, for-profit industry, but constitutes a means by which TEA substantively and substantially effectuates the policy goals that the state has charged it with implementing and maintaining.” As such, he was convinced that the named plaintiffs had stated a claim for which relief may be granted, and thus was in favor of affirming the District Court’s judgment denying TEA’s motion to dismiss and permitting the case to proceed on the merits.
On Appeals from the United States District Court for the Western District of Texas (Lee Yeakel).
Attorney for Appellant – Richard Bernard Farrer, Austin, TX
Attorney for Appellee – Joe Thomas Sanders, II, Austin, TX