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Austin v. State Indus. Ins. System
Citations: 741 F. Supp. 1466; 1990 WL 114450Docket: CV-N-89-521-HDM
Court: District Court, D. Nevada; July 16, 1990; Federal District Court
Robert J. Austin filed a civil rights action under 42 U.S.C. § 1983 against the Nevada State Industrial Insurance System (SIIS) and its general manager, Laury M. Lewis. The defendants moved to dismiss the case, asserting immunity under the Eleventh Amendment and Nevada Revised Statutes (Nev.Rev.Stat.) § 41.032.031(3). The court is withholding its ruling on the dismissal pending further review of the parties' arguments regarding immunity. The Eleventh Amendment prohibits lawsuits against a state or its agencies unless there is consent, which Nevada has not provided. If SIIS is deemed a state agency, it would be immune from federal court damages suits. Determining SIIS's status involves assessing whether a judgment against it would affect the state treasury. Key factors include the source of funding, the legislation establishing SIIS, the responsibilities assigned to it by state law, and legislative oversight over its finances. SIIS's funding comes from the State Insurance Fund, which is held in trust by its general manager and maintained in the state treasury. This fund is deemed part of the state treasury, and although the state is not liable for SIIS's operational costs, it is responsible for the fund's safety and preservation. If SIIS were to dissolve, the legislature would manage the fund's remaining assets. Legally, SIIS was established as a public agency supported by the state insurance fund, and its directors are appointed by the governor and enjoy immunity from personal liability. Under Nevada law, the State Insurance and Industrial Insurance System (SIIS) is required to report its legislative needs to the governor and legislature before each session. The SIIS board must appoint a manager who files a bond with the secretary of state and is responsible for approving investment policies, budgets, and the appointment of key personnel such as an actuary and accountant. SIIS has the authority to conduct administrative hearings and adopt regulations with the force of law. The legislative framework governing SIIS is extensive, including regular reviews by state executive and legislative branches. Certain board actions require the governor's approval, and the board must adhere to a list of approved investments while managing the State Insurance Fund. SIIS property must be state-owned, and it can only rent unoccupied space to other state agencies. Additionally, investments in building rehabilitation are limited to ten percent of total assets, and all SIIS records are public. Despite arguments that SIIS is not a state agency due to its public agency designation, the nature of its functions and treatment by the legislature affirm its status as a state agency. This includes the appointment of its counsel by the governor and the classification of its employees. The complaint lacks specific allegations against Laury Lewis, the general manager of SIIS, and any claims related to his official capacity would be protected by sovereign immunity. The court finds that the deficiencies in the pro se complaint cannot be remedied and grants the motion to dismiss the defendants.