7th Circuit dismisses 2019 lawsuit seeking sweeping changes to Indiana DCS policies

The Seventh Circuit Court of Appeals has dismissed a class-action lawsuit demanding sweeping changes to Indiana's child welfare system.

The lawsuit was filed in 2019 on behalf of 10 minor children involved in Child In Need of Services (CHINS) cases, all of whom were in out-of-home or residential placements at the time of filing.

The suit alleged the state, via the Department of Child Services, violated the children's due process rights, their first, ninth and fourteenth amendment rights, the Adoption Assistance and Child Welfare Act of 1980 and the American with Disabilities Act and Rehabilitation Act. (Many of these claims were previously denied by a lower-court judge.)

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More broadly, the plaintiffs alleged Indiana's child welfare system “inflicts further trauma upon an already vulnerable population."

Last fall, after a district court denied the state's motion to dismiss, Indiana officials asked the Court of Appeals for review, in part citing a 1971 ruling that says federal courts do not have jurisdiction over a state-administered system.

The case was argued before a panel of three judges — Frank Easterbrook, David Hamilton and Diane Wood — in late March. In an opinion issued Monday, Easterbrook agreed with the state's argument.

Easterbrook wrote the plaintiffs' attorneys "contended that a federal court could insist that some provisions in state law, which counsel thinks underenforced, be fully enforced. This sounds like a problem that CHINS judges can fix, if the state laws and regulations are pointed out to them.

"But whether or not a CHINS judge would step in, a federal court cannot. It is improper for a federal court to issue an injunction requiring a state official to comply with state law."

DCS spokeswoman Noelle Russell said in a written statement that DCS was pleased by the decision: "These important issues involving Hoosier children are best decided by our own state courts, and DCS has full confidence in Indiana judges to act in the best interest of Indiana children to meet the individualized needs of each case. DCS remains committed to the protection of Indiana’s most vulnerable and will continue to provide the right care to the right child at the right time."

Lawsuit alleged violations of ADA rights

In the 2019 complaint, the plaintiffs also argued children with disabilities are underserved by the agency because of violations to their rights protected by the ADA, particularly when they are sent to a residential setting rather than an in-home placement.

According to data provided by DCS, the agency had over 1,000 children placed in residential settings in 2017. There are currently only 480 children in such placements as of April.

Many of the allegations in the original filing point to a June 2019 assessment of Indiana’s foster care system that found the state had high levels of removals and court involvement, which in turn caused high caseloads and turnover rates.

The plaintiffs sought sweeping changes to DCS practices and policies, including:

• Requiring DCS to maintain caseload standards and that its verification process be public information.
• Requiring the agency to conduct an annual case review to ensure children are receiving timely permanence and the degree of maltreatment and to make these reviews public information.
• Preventing the separation of siblings when they enter the child welfare system “unless it is contrary to the best interest of any of the children to be placed together with his or her siblings.”
• Preventing a child’s placement in a congregate facility due to a lack of available foster homes.
• Taking all steps possible to ensure a child is placed in a safe, adequate foster home and, if necessary, to find an “appropriate adoptive placement.”

In its decision, the appeals court ruled the plaintiffs lacked jurisdiction to bring such a suit — of the 10 original plaintiffs, the majority had been adopted or had turned 18, effectively resolving their cases. In the remaining two instances, legal proceedings were already underway by the time of filing, meaning the arguments concerning pre-litigation investigations did not apply. 

The plaintiffs were represented by attorneys at Indiana Disability Rights and A Better Childhood, a nonprofit providing services to children who have experienced abuse and trauma in the child welfare system.

Both Indiana Disability Rights Executive Director Melissa Keyes and A Better Childhood Executive Director Marcia Lowry said their organizations are considering their legal options as they plan next steps.

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"We are disappointed in the decision by the federal appeals court, which leaves children in foster care in Indiana without access to the federal court to enforce their constitutional and federal rights, a right that is available in many other parts of the country," Lowry said in a written statement. "Unfortunately, the court’s decision did not adequately address our arguments. Given the status of the child welfare system in Indiana, this right is particularly critical."

According to data provided by DCS, Indiana had over 10,000 children in out-of-home placements in April 2022.

You can reach IndyStar reporter Holly Hays at holly.hays@indystar.com. Follow her on Twitter: @hollyvhays.