California-Nevada Methodist Homes, Inc. v. Federal Emergency Management Agency

ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS; VACATING HEARING

INTRODUCTION

This case poses the question of whether decisions made by the Federal Emergency Management Agency regarding the allocation of earthquake-relief funds are subject to judicial review. This order holds that Congress intended to preclude this type of suit. Accordingly, defendants’ motion to dismiss is GRANTED. The hearing is VACATED.

STATEMENT

The following well-pled facts taken from plaintiffs complaint are presumed to be true for the purpose of this Rule 12 motion. Plaintiff is a non-profit organization that owns and operates Lake Park, a retirement community in Oakland. Lake Park is a 12-story L-shaped building, divided into two wings. One floor on one of the wings contains a skilled-nursing facility, which provides 24-hour nursing care to residents who require assisted living. In 1989, Lake Park was damaged in the Loma Prieta earthquake. Plaintiff subsequently sought disaster-relief funds.

The Stafford Act, 42 U.S.C. 5124-5204c, and FEMA’s regulations establish different regimes for the provision of federal relief to victims of natural disasters. In general, the Act and accompanying regulations define…