Bailey-Null v. Valueoptions; Meta Services, Inc.
Ct. Appeals, Div. One, April 7, 2009
Authored by the JSH Appellate Team
Plaintiff underwent emergency psychiatric treatment in a ValueOptions center. ValueOptions is a regional behavioral health authority that contracts with the Arizona Department of Health Services to provide psychiatric services to residents of Maricopa County. Plaintiff claimed various civil rights violations while undergoing treatment, including improper chemical restraint, and violations of her right to treatment on a voluntary basis, and her right to privacy. She filed an administrative grievance and subsequently appealed that decision to the Arizona Department of Health Services. Her appeal was denied. She then requested an administrative hearing, which resulted in an extensive ruling that Plaintiff’s civil and privacy rights were violated for various reasons. The ALJ determined, however, that there was not “sufficient evidence to fashion a good remedy.” Plaintiff filed a motion for rehearing, which was denied. Though Plaintiff had 35 days to appeal to the superior court, instead, she commenced a civil action. The trial court dismissed for failure to exhaust administrative remedies.
The court of appeals reversed, holding that Plaintiff did not have to exhaust her administrative remedies for this type of claim. The threshold question is whether the agency has original jurisdiction over the subject matter of the claims. Here, the relevant regulations (A.A.C. R9-21-402) did not contemplate vesting the Arizona Department of Health Services with jurisdiction to entertain civil damages claims; in fact, they were silent on the authority to award monetary damages. Because monetary damages were the only relief Plaintiff was seeking, the Department did not have original jurisdiction over Plaintiff’s claims, and exhaustion was not necessary.