Sarah Lee v. Ohio Educ. Ass'n
951 F.3d 386
6th Cir.2020Background
- Sarah Lee, an Avon Lake public-school teacher, was required by her collective-bargaining agreement to join the union or pay fair-share (agency) fees; she paid the fees as a nonmember.
- Lee filed a putative class action on June 25, 2018 seeking refunds and damages for compelled fair-share fees under 42 U.S.C. § 1983 and several state torts.
- Two days later the Supreme Court decided Janus v. AFSCME, holding that public-sector agency fees violate the First Amendment and overruling Abood.
- Lee dismissed claims against state actors and proceeded only against the Union for money damages and declaratory relief; the Union moved to dismiss, asserting mootness for injunctive relief and a good-faith defense to damages because it followed Ohio law and Abood.
- The district court granted dismissal; the Sixth Circuit assumed Janus retroactive but affirmed dismissal of the § 1983 claim on the ground that the Union’s good-faith reliance on Ohio law and Abood barred liability, and affirmed dismissal of the state-law conversion claim for pleading defects and lack of possessory right.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Retroactivity of Janus | Janus should apply retroactively to permit refunds. | Court may assume retroactivity but other defenses may bar relief. | Court assumed retroactivity but resolved case on other grounds. |
| Good-faith defense to § 1983 for private actor | Lee contended the Union should not escape liability for collecting unconstitutional fees. | Union argued it acted in good faith following Ohio law and Abood, entitling it to a good-faith defense. | Good-faith defense applies; dismissal of § 1983 damages claim affirmed. |
| Nature of remedy — equitable restitution vs legal damages | Lee framed claim as equitable restitution (refund of unconstitutional exaction). | Union and court: fees not traceable to identifiable funds; claim compensates dignitary harm and is legal. | Claim is legal not equitable; good-faith defense controls. |
| State-law conversion claim | Lee alleged conversion of her wages/fees. | Union argued shotgun pleading and that Lee lacked ownership/possession because fees were contractually due. | Conversion claim dismissed for pleading defects and on the merits (no right to possession). |
Key Cases Cited
- Janus v. AFSCME, Council 31, 138 S. Ct. 2448 (2018) (held public-sector agency fees violate the First Amendment and overruled Abood)
- Abood v. Detroit Bd. of Ed., 431 U.S. 209 (1977) (prior precedent permitting agency fees, overruled by Janus)
- Lugar v. Edmonson Oil Co., 457 U.S. 922 (1982) (private-party § 1983 liability framework and suggestion of an affirmative defense for reliance on state law)
- Wyatt v. Cole, 504 U.S. 158 (1992) (private actors not entitled to Harlow-qualified immunity but left open good-faith defense)
- Agostini v. Felton, 521 U.S. 203 (1997) (Supreme Court general practice favors full retroactivity of new rules)
- Reynoldsville Casket Co. v. Hyde, 514 U.S. 749 (1995) (new rule may not change outcome where an existing independent legal basis bars relief)
- Montanile v. Bd. of Trs. of Nat'l Elevator Indus. Health Benefit Plan, 136 S. Ct. 651 (2016) (distinguishes equitable restitution where funds are not traceable)
- Janus v. AFSCME (Janus Remand), 942 F.3d 352 (7th Cir. 2019) (holding good-faith defense precludes § 1983 refunds for fees collected under Abood)
- Danielson v. Inslee, 945 F.3d 1096 (9th Cir. 2019) (same conclusion regarding the good-faith defense to refund claims)