Antitrust Law Daily Wrap Up, ANTITRUST—M.D. La.: State nursing board immune from collusion suit, (Dec 21, 2015)

By Linda O’Brien, J.D., LL.M.

The Louisiana State Board of Nursing (LSBN), the agency authorized with regulating nursing education within the State, was entitled to immunity under the Eleventh Amendment from a suit alleging that the agency colluded with its members to terminate the accreditation of a public university as a nursing education provider, the federal district court in Baton Rouge, Louisiana has decided. Thus, the Board’s motion to dismiss was granted (Rodgers v. State of Louisiana Board of Nursing, December 18, 2015, Brady, J.).

In June 2015, the Louisiana State Board of Nursing (LSBN), the state agency authorized to regulate the practice of nursing and nursing education within the state, notified Grambling State University of its involuntary termination of the School of Nursing’s BSN programs, for failure to maintain an 80 percent First Time Taker Pass Rate for the National Council Licensure Examination for Registered Nurses. In August 2015, Kourtney Rodgers, a student at Grambling State, filed a complaint against the LSBN, alleging that the Board colluded with its members to exclude the university from recognition as an accredited nursing education provider in violation of the Sherman and Clayton Acts. Before the court was the LSBN’s motion to dismiss for lack of subject matter jurisdiction, failure to state a claim, and failure to join a party.

The court found that the LSBN was an “arm of the State” and therefore entitled to immunity from suit under the Eleventh Amendment of the U.S. Constitution. First, the Board was created by the state legislature with its executive branch. Second, although the Board had significant power to regulate the nursing profession and education, the legislature had oversight over its rule promulgation. Finally, the agency’s authority concerned the statewide issues of preserving and protecting public health, safety, and welfare. Because the Board was so closely connected to the State, such that the State was the “real, substantial party in interest,” the court concluded that the plaintiff’s claims were barred and it lacked subject matter jurisdiction over the case.

The case is No. 3:15-cv-00615-JJB-SCR.

Attorneys: Dianne Lorraine Hill (Family Law) for Kourtney S. Rodgers. Edmond Wade Shows (Shows, Cali & Walsh, LLP) for State of Louisiana Board of Nursing.

Companies: State of Louisiana Board of Nursing

Cases: Antitrust LouisianaNews