Plaintiffs, individuals with dual diagnoses of mental illness (MI) and developmental disabilities (DD), filed this lawsuit in the U.S. District Court for the Eastern District of North Carolina to challenge North Carolina's termination of state funding for their community-based services. Each plaintiff received home-based care through federal Medicaid waiver services and supplemental state funds for those with MI/DD dual diagnoses. When the state announced that it would end the supplemental state-funded services, the plaintiffs challenged this determination as a violation of the Americans with Disabilities Act and Section 504 of the Rehabilitation Act.

The Plaintiffs filed a complaint on December 11, 2009, along with a motion for a temporary restraining order and preliminary injunction. The court (Judge Terrence W. Boyle) granted the temporary restraining order on December 14th. The United States (Department of Justice) filed a brief supporting the Plaintiffs' motion for preliminary injunction on December 23, 2009. After a hearing held on December 28, 2009, the court granted a preliminary injunction that prevented the state from reducing Plaintiffs' services. On January 14, 2010, Judge Boyle issued a written opinion granting the preliminary injunction, explaining that the Plaintiffs have demonstrated irreparable harm and are likely to succeed on the merits of their claim of an ADA violation in these service reductions.

The parties continued with discovery and mediation until the spring of 2011. At that time, the parties entered into a private settlement agreement, likely continuing the services that the Plaintiffs were receiving. The parties agreed to dismiss the case on June 13, 2011.

Beth Kurtz - 02/21/2013


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