Settlement Finalized in C.B. vs. Livingston County Community Mental Health

Settlement Finalized in C.B. vs. Livingston County Community Mental Health
Statewide Precedent Set

Lansing, MI –After nearly two years of litigation brought by Disability Rights Michigan (“DRM”), C.B., a 24-year-old Medicaid beneficiary, will receive $100,000.00 for harm that a lawsuit alleges he suffered due to Livingston County Community Mental Health’s (“LCCMH”) delay in providing medically necessary Medicaid services.

C.B., an adult with severe disabilities, did not receive authorized Community Living Support and respite services for approximately two years due to LCCMH’s failure to find providers. In July 2022, an administrative law judge issued a written decision granting summary disposition in C.B.’s favor and ordering LCCMH to provide the services. When LCCMH did not provide the services within 72 hours, C.B. filed a mandamus action 1) to enforce the ALJ’s decision, and 2) for monetary damages to compensate him for the harm suffered due to LCCMH’s delay. LCCMH eventually complied with the order, but not before the Livingston Circuit Court had dismissed the case. C.B. appealed the circuit court’s dismissal.

In a published decision, the Michigan Court of Appeals held that, if an individual receives an administrative hearing decision entitling the individual to receive certain Medicaid services, 1) the individual could be entitled to monetary compensation in a lawsuit to enforce the administrative decision, even if the Medicaid entity complies with the administrative decision after the lawsuit is filed, and 2) an entity like a Community Mental Health agency cannot claim the “good faith” exception to a claim for monetary damages in such a lawsuit. The Court of Appeals remanded the case to the circuit court, after which the parties reached a settlement.

“Medicaid beneficiaries must be able to enforce Fair Hearing decisions where medically necessary services are at stake,” said Nick Gable, Senior Attorney at Disability Rights Michigan. “The Court of Appeals’ decision and this settlement are important steps toward ensuring accountability and making sure that the system works.”

Learn more about this case and other DRM litigation: CB Appeal.