West Virginia Department of Education v. McGraw, 800 S.E.2d 230

Tammy McGraw was an at-will Executive Director at the West Virginia Department of Education (DOE) and was terminated after the DOE received a letter from the Virginia Department of Education stating she was the subject of an ongoing investigation for misuse of public funds.
The Virginia letter said the investigation was ongoing and no indictment decision had been made; McGraw does not dispute the truth of being under investigation.
McGraw alleged the DOE leaked that letter to the Charleston Gazette, and that the leak (and her termination) violated her constitutionally protected liberty interest in her good name and amounted to wrongful termination.
The DOE moved to dismiss under Rule 12(b)(6) asserting qualified immunity; the circuit court denied the motion and the DOE appealed under the collateral-order doctrine.
The Supreme Court of Appeals applied qualified-immunity standards for discretionary government acts and evaluated whether McGraw alleged (a) a liberty-interest deprivation or (b) fraud, malice, or oppression to overcome immunity.
Court held McGraw failed to allege falsity of the stigmatizing statements or facts showing fraud/malice/oppression; because the letter’s substance (that she was under investigation) was undisputed, qualified immunity barred her constitutional-tort and wrongful-termination claims and the court reversed and dismissed.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether DOE’s alleged leak and termination violated McGraw’s liberty interest in her good name	Leak publicized stigmatizing charge that damaged reputation; due process required	Statements were true (she was under investigation); no liberty interest implicated; qualified immunity applies	Held for DOE — no liberty-interest violation because McGraw did not dispute truth of the charge
Whether McGraw adequately pleaded falsity (required element)	Implied that DOE’s publication was false and harmful	McGraw admitted she was under investigation; falsity not alleged	Held McGraw failed to allege falsity; claim dismissed
Whether McGraw pleaded fraud, malice, or oppression to overcome qualified immunity for termination claim	DOE acted maliciously/oppressively by leaking without investigation	No particularized allegations of fraud/malice/oppression; termination of at-will employee permissible absent illegality	Held DOE entitled to qualified immunity; no factual allegations of fraud/malice/oppression
Whether wrongful termination claim survives given at-will status and alleged DOE conduct	Termination tied to alleged malicious publication and thus wrongful	Employment was at-will and no statutory/constitutional prohibition shown; no bad faith pleaded	Held for DOE — wrongful termination barred by qualified immunity and at-will doctrine

W.Va. Bd. of Educ. v. Marple, 236 W.Va. 654, 783 S.E.2d 75 (W.Va. 2015) (denial of motion to dismiss based on qualified immunity is immediately appealable)
Waite v. Civil Service Comm’n, 161 W.Va. 154, 241 S.E.2d 164 (W.Va. 1978) (liberty-interest doctrine in public employment; modified here to require falsity)
W.Va. Reg’l Jail & Corr. Facility Auth. v. A.B., 234 W.Va. 492, 766 S.E.2d 751 (W.Va. 2014) (qualified-immunity framework for discretionary acts)
Bd. of Regents v. Roth, 408 U.S. 564 (U.S. 1972) (liberty interest implicated when government action harms good name and requires notice/hearing)
Paul v. Davis, 424 U.S. 693 (U.S. 1976) (reputation alone is insufficient for due-process protection absent a more tangible interest)
Codd v. Velger, 429 U.S. 624 (U.S. 1977) (name-clearing hearing unnecessary if plaintiff does not dispute truth)
Melton v. City of Okla. City, 928 F.2d 920 (10th Cir. 1991) (no liberty-interest violation where publicized statements about an ongoing investigation were true)