Goldberg V. Kelly - Discussion

Discussion

The Goldberg decision set the parameters for procedural due process when dealing with the deprivation of a government benefit or entitlement. The Court held that a person has a property interest in certain government entitlements, which require notice and a hearing before a governmental entity (either state or federal) takes them away. Government-provided entitlements from the modern welfare state increased substantially in the United States during the 20th century. The Goldberg court decided that such entitlements (e.g., welfare payments, government pensions, professional licenses), are a form of "new property" that require pre-deprivation procedural protection, doing away with the traditional distinction between rights and privileges.

This specific case dealt with 20 individuals who had been suspected of welfare fraud by New York City officials and were then denied municipal benefits. The opinion of the Court was delivered by Justice William Brennan, while dissenting opinions were filed by Justices Hugo Black and Potter Stewart and Chief Justice Warren Burger. Brennan said at his retirement that he considered it the most important case he'd ever decided; conservative columnist David Frum once opined that the case was a major factor in New York City's 1975 budget meltdown.

John Kelly, acting on behalf of New York residents receiving financial assistance either under the federally-assisted program for Families with Dependent Children or under New York State's home relief program, challenged the constitutionality of procedures for notice and termination of such aid. Although originally offering no official notice or opportunity for hearings to those whose aid was scheduled for termination, the State of New York implemented a hearing procedure after commencement of Kelly's litigation.

The decision in Goldberg v. Kelly answered questions which had been unresolved in the previous Supreme Court cases of Rudder v. United States and Thorpe v. Housing Authority of Durham. Those cases involved questions of denial of tenancy or eviction in governmental housing projects. Goldberg established that state action terminating public assistance payments to a particular recipient prior to an evidentiary hearing violates due process. Goldberg was contrasted to the First Circuit decision in Hahn v. Gottlieb where is was determined that tenants were not entitled to a hearing in front of the Federal Housing Authority under the due process clause, even though there was significant government involvement. The Supreme Court distinguished Goldberg v. Kelly on two grounds. The first was that the governmental interest involved was different because the government functions primarily as “an insurer for private investors.” The significance of this distinction is that the government’s “freedom to pursue social goals is limited by the need to avoid excessive losses.” The second basis of distinction was based on the interest of the tenants: the tenants were not “entitled” to low rents in the same sense that recipients of welfare in Goldberg and that a rental increase is not as serious an injury.

It has been noted that the precarious financial status of those in poverty may preclude an extensive litigation process, despite the decision in Goldberg. The federal abstention doctrine presupposes the adequacy of state process to protect constitutional rights. Poor people may lack the funds to pursue a court hearing process. One solution has been through the use of a preliminary injunction which preserves the status quo while the litigation proceeds.