Gamboa

I

Paul M. Gamboa represents a certified class of individuals who were denied benefits under the Aid' to Families with Dependent Children (AFDC) and Medicaid programs. Gamboa applied to the Hawaii Department of Human Services (DHS) for these benefits, but was rejected because he owns an automobile with an equity value of more than $1500. This rendered him ineligible under 45 C.F.R. § 233.20 (a)(3)(i)(B)(2)—the so-called “automobile resource exception”—a means test for AFDC and Medicaid recipients. Gamboa sought judicial review of this administrative decision in the Hawaii state courts, naming the Director of DHS as defendant.

Because the case turned on the validity of a federal regulation, the Director filed a third-party complaint against the Secretary of Health and Human Services, who prompt ly removed the case to federal court. Once there, Gamboa filed an amended complaint seeking certification of a class of affected applicants and requesting prospective and retrospective relief. The district court eventually certified the class and upheld the $1500 equity limit, granting the Secretary’s and the Director’s motions for summary judgment on plaintiffs’ AFDC claims. See Order…