Judges: Hamilton
Filed: Apr. 05, 2016
Latest Update: Mar. 02, 2020
Summary: In the United States Court of Appeals For the Seventh Circuit _ No. 15-2800 ARLENE NUÑEZ and VERONICA L. MARTINEZ, Plaintiffs-Appellants, v. INDIANA DEPARTMENT OF CHILD SERVICES, Defendant-Appellee. _ Appeal from the United States District Court for the Northern District of Indiana, Hammond Division. No. 2:14-cv-00293-JD-JEM — Jon E. DeGuilio, Judge. _ ARGUED JANUARY 22, 2016 — DECIDED APRIL 5, 2016 _ Before BAUER, FLAUM, and HAMILTON, Circuit Judges. HAMILTON, Circuit Judge. The Indiana Departm
Summary: In the United States Court of Appeals For the Seventh Circuit _ No. 15-2800 ARLENE NUÑEZ and VERONICA L. MARTINEZ, Plaintiffs-Appellants, v. INDIANA DEPARTMENT OF CHILD SERVICES, Defendant-Appellee. _ Appeal from the United States District Court for the Northern District of Indiana, Hammond Division. No. 2:14-cv-00293-JD-JEM — Jon E. DeGuilio, Judge. _ ARGUED JANUARY 22, 2016 — DECIDED APRIL 5, 2016 _ Before BAUER, FLAUM, and HAMILTON, Circuit Judges. HAMILTON, Circuit Judge. The Indiana Departme..
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In the
United States Court of Appeals
For the Seventh Circuit
____________________
No. 15‐2800
ARLENE NUÑEZ and VERONICA L. MARTINEZ,
Plaintiffs‐Appellants,
v.
INDIANA DEPARTMENT OF CHILD SERVICES,
Defendant‐Appellee.
____________________
Appeal from the United States District Court for the
Northern District of Indiana, Hammond Division.
No. 2:14‐cv‐00293‐JD‐JEM — Jon E. DeGuilio, Judge.
____________________
ARGUED JANUARY 22, 2016 — DECIDED APRIL 5, 2016
____________________
Before BAUER, FLAUM, and HAMILTON, Circuit Judges.
HAMILTON, Circuit Judge. The Indiana Department of Child
Services (“DCS”) oversees state child protection services,
child support enforcement, and the Indiana foster care sys‐
tem. For nine years, plaintiffs Arlene Nuñez and Veronica
Martinez worked as investigators in the DCS Gary office. On
August 20, 2014, Nuñez and Martinez sued the DCS for vio‐
lations of the overtime provisions of the federal Fair Labor
Standards Act (“FLSA”), 29 U.S.C. § 207(a). They allege that
2 No. 15‐2800
DCS required them to work during lunch and to remain on
call after their shifts, despite being paid for only forty hours
per week. Plaintiffs seek injunctive and declaratory relief,
damages, and attorney fees.
In Alden v. Maine, 527 U.S. 706 (1999), the Supreme Court
held that enactment of the federal FLSA did not abrogate
states’ Eleventh Amendment immunity, but the Court left
open the possibility that states could consent to such suits. Id.
at 754–55. Plaintiffs argue that Indiana has given consent, but
the district court held that it has not.
The district court’s judgment said that the complaint was
dismissed without prejudice. Dismissal of just a complaint
(not the action itself), and without prejudice at that, would
ordinarily pose a problem for our appellate jurisdiction. See,
e.g., Luevano v. Wal‐Mart Stores, Inc., 722 F.3d 1014, 1020–21
(7th Cir. 2013). By entering a separate final judgment under
Federal Rule of Civil Procedure 58, however, the district court
made clear that it thought it was done with the case. Also, the
dismissal based on Eleventh Amendment immunity was not
based on a defect that could have been cured by amending the
complaint. Under these circumstances, this dismissal without
prejudice was final in practical terms and amounted to an ap‐
pealable final judgment. See Hill v. Potter, 352 F.3d 1142, 1144–
45 (7th Cir. 2003); United States v. City of Milwaukee, 144 F.3d
524, 528 n.7 (7th Cir. 1998) (collecting cases).
We review the district court’s decision de novo, Defender Se‐
curity Co. v. First Mercury Insurance Co., 803 F.3d 327, 331 (7th
Cir. 2015), and we affirm.
The Eleventh Amendment grants states immunity from
private suits in federal court without their consent. Seminole
No. 15‐2800 3
Tribe of Florida v. Florida, 517 U.S. 44, 54 (1996); McDonough As‐
sociates, Inc. v. Grunloh, 722 F.3d 1043, 1049 (7th Cir. 2013). An
agency of the state receives this same immunity. Alabama v.
Pugh, 438 U.S. 781, 781–82 (1978) (per curiam); Kroll v. Board of
Trustees of Univ. of Illinois, 934 F.2d 904, 907 (7th Cir. 1991).
There are three exceptions to Eleventh Amendment im‐
munity. Marie O. v. Edgar, 131 F.3d 610, 615 (7th Cir. 1997). The
first—suits against state officials seeking only prospective
equitable relief—was not raised here. See id., citing Ex parte
Young, 209 U.S. 123, 159–60 (1908). The second—where Con‐
gress has abrogated a state’s immunity through an unequivo‐
cal exercise of valid legislative power—does not apply here.
Alden, 527 U.S. at 754–55 (FLSA does not abrogate Eleventh
Amendment immunity).
Plaintiffs rely on the third exception here: a state’s waiver
of immunity and consent to suit in federal court. See College
Savings Bank v. Florida Prepaid Postsecondary Education Expense
Board, 527 U.S. 666, 675 (1999); see also Lapides v. Board of Re‐
gents of Univ. System of Georgia, 535 U.S. 613 (2002) (state’s re‐
moval of suit to federal court amounted to waiver of Eleventh
Amendment immunity in that suit).
The “test for determining whether a State has waived its
immunity from federal‐court jurisdiction is a stringent one.”
Atascadero State Hospital v. Scanlon, 473 U.S. 234, 241 (1985).
Waiver must be “stated by the most express language or by
such overwhelming implications from the text” as to leave no
doubt. Edelman v. Jordan, 415 U.S. 651, 673 (1974) (internal quo‐
tation mark omitted); see also Mueller v. Thompson, 133 F.3d
1063, 1064 (7th Cir. 1998) (waiver requires that “the state has
made its intention to waive its rights under the amendment
4 No. 15‐2800
clear”). Constructive consent will not overcome the presump‐
tion of Eleventh Amendment immunity. Edelman, 415 U.S. at
673–74. Despite the language in Edelman allowing a finding of
implied waiver, at least if it is based on “overwhelming impli‐
cations” from statutory text, we have said more broadly that
“implicit waivers won’t do; the court must be highly confident
that the state really did intend to allow itself to be sued in fed‐
eral court.” Mueller, 133 F.3d at 1064. As shown below, we
need not resolve this tension between these opinions because
the statutory text provides no “overwhelming implications”
of waiver.
Nuñez and Martinez argue first that we can find an ex‐
press waiver in the text of the Indiana Code. They rely on lan‐
guage in the Indiana statute providing a statute of limitations
for contract claims against the state. The statute provides:
“Any person having a claim against the state arising out of an
express or implied contract may bring suit within ten (10)
years after accrual of the claim.” Ind. Code § 34‐13‐1‐1(a). The
express language of this provision does not waive Eleventh
Amendment immunity for any general category of claims or
for FLSA claims in particular.
The Supreme Court has rejected a finding of waiver of
Eleventh Amendment immunity based on such a general
statement allowing suit against the state, even when the state‐
ment was coupled with an express agreement to obey a spe‐
cific federal law. Florida Dep’t of Health and Rehabilitative Ser‐
vices v. Florida Nursing Home Ass’n, 450 U.S. 147, 149–50 (1981)
(per curiam) (statute allowing a state to “be sued” and prom‐
ising to “abide by … the Title XIX Medicaid Program” did not
waive the state’s immunity for suit alleging insufficient Med‐
No. 15‐2800 5
icaid reimbursements). Nor are there “overwhelming impli‐
cations” from the statutory text or related provisions showing
that this statute of limitations was also meant to waive im‐
munity from FLSA suits. Instead, § 34‐13‐1‐1(a) functions pri‐
marily as a statute of limitations for contract disputes with the
state. See Januchowski v. Northern Indiana Commuter Transp.
Dist., 905 N.E.2d 1041, 1048–49 (Ind. App. 2009).
The plaintiffs also compare § 34‐13‐1‐1(a) to § 34‐13‐3‐5(f),
which states that the Indiana Tort Claims Act “shall not be
construed as … a waiver of the eleventh amendment.” Since
the state took the trouble to withhold consent explicitly for
tort claims, plaintiffs argue, its failure to do the same for con‐
tract claims signals consent to federal court jurisdiction over
them. This statutory interpretation argument might have
some force in other contexts, but it runs contrary to the strong
presumption against waiver of Eleventh Amendment im‐
munity. Under plaintiff’s logic, one express disclaimer of
waiver for one category of cases would be transformed by
canons of statutory interpretation into a sweeping implied
waiver of immunity for every other category of cases. Under
the strong presumption against waiver, however, Indiana’s
extra caution shown by an express disclaimer of a waiver for
tort and civil rights suits cannot undermine the presumption
against waiver for every other sort of claim against the state.
Any Eleventh Amendment waiver must be clear, not faintly
implied from silence using canons of statutory construction.
Nuñez and Martinez also suggest a more circuitous route
from § 34‐13‐1‐1(a) to consent to suit under the FLSA. They
rely upon this logical chain: (1) Indiana allows suits to be
brought against the state for violations of express and implied
contracts, (2) an employment relationship is a contract for
6 No. 15‐2800
purposes of Indiana law, and (3) the FLSA’s requirements are
embedded in all employment relationships and thus in con‐
tracts. Ergo, conclude plaintiffs, Indiana has consented to fed‐
eral FLSA suits by its employees. This path around the Elev‐
enth Amendment amounts to a creative argument for the sort
of implied waiver that, as the Supreme Court has said, is not
sufficient. See, e.g., College Savings Bank, 527 U.S. at 678, citing
Edelman, 415 U.S. at 673.
The district court illustrated the barrier to this argument
by correctly comparing this case to Mueller v. Thompson, 133
F.3d 1063 (7th Cir. 1998), where we rejected a stronger argu‐
ment for a state’s waiver of Eleventh Amendment immunity
for FLSA claims. In Mueller, a Wisconsin statute authorized
suits against the state as an employer for overtime pay. The
statute also expressly incorporated the FLSA in defining what
constituted overtime work. We nevertheless rejected the claim
that this “chain of provisions effects a waiver of the State’s
Eleventh Amendment immunity from suit in federal court
under the FLSA.” Id. at 1064. As in Mueller, the state statute
here refers only to state law. The fact that a state incorporates
the standards of the federal FLSA into employment contracts
“does not transform state into federal law, any more than by
copying the Federal Rules of Civil Procedure a state turns its
procedural code into federal law.” Id.
Plaintiffs attempt to distinguish Mueller by arguing that
the Wisconsin statute had been enacted in 1971, just five years
after Congress amended the FLSA to extend it to most state
and local government employees, and when the constitution‐
ality of applying the FLSA to state employees was still unset‐
tled. See generally Maryland v. Wirtz, 392 U.S. 183 (1968), over‐
ruled by National League of Cities v. Usery, 426 U.S. 833 (1976),
No. 15‐2800 7
in turn overruled by Garcia v. San Antonio Metropolitan Transit
Auth., 469 U.S. 528 (1985). When Indiana enacted the current
codification of § 34‐13‐1‐1 in 1998, plaintiffs argue, application
of the FLSA to state employees was settled law, so we should
infer that Indiana legislators made a deliberate choice not to
preserve sovereign immunity expressly in statutory text.
This argument runs into three problems, each of which
would be sufficient to reject it. First, application of the FLSA
to state employees was not settled in 1998, as shown by the
Supreme Court’s decision in Alden v. Maine, 527 U.S. 706
(1999), which held under the Eleventh Amendment that Con‐
gress could not subject states to FLSA suits even in state courts
without the states’ consent. Second, the argument again relies
on an erroneous presumption in favor of waiver. States must
explicitly waive sovereign immunity, not explicitly preserve
it. Finally, the argument reads far too much into the 1998 re‐
codification of Title 34 of the Indiana Code dealing with civil
procedure. Public Law 1‐1998 was intended to recodify exist‐
ing law, not to change substantive law, and certainly not to do
anything as substantive as implicitly waive the state’s Elev‐
enth Amendment immunity. See Ind. Code § 34‐7‐1‐4 (in‐
structions on how to construe recodification act of 1998);
Cheri A. Harris, Cleaning House in Title 34: Recodification of the
Civil Code of 1881, Res Gestae, April 1998, at 26 (“An effort is
made to resolve ambiguities in current law whenever possi‐
ble, but with the condition that no substantive changes are to
be made in the law.”). The recodification of the older statute
of limitations did not indicate any deliberate choice by the
state to waive the protections of the Eleventh Amendment.
The judgment of the district court is AFFIRMED.