Case Information
*1 Before C UDAHY , R OVNER and W ILLIAMS , Circuit Judges . C UDAHY , Circuit Judge
. Here we confront the question whether a state breach of contract action provides adequate due process to protect the rights of a school superintendent facing termination, whose pre-termination hearing fell short of due process requirements. For the reasons to be set forth, we conclude that, in the circumstances presented, it does not. We also hold that the superintendent to be terminated did not waive his procedural due process claim by attending his pre-termination hearing only to object to its procedures. Accordingly, we reverse.
I.
The parties to this conflict are the dual centers of au- thority that guide public education throughout the country. On the one hand is the school board, representing the people, and on the other hand, the school board’s selected operating leader of the schools, the superintendent. In 2000, plaintiff Kelly Baird was hired by the Warren County School District No. 205 Board of Education to serve as Superintendent and Principal under a three-year contract that provided he could be dismissed only “for cause.” (Superintendent/Principal Employment Contract at A.7.) The contract broadly defined “cause” as “any conduct, act, or failure to act by the Super- intendent which is detrimental to the best interests of the School District.” ( Id. at A-8.) The contract also provided that reasons for discharge were to be given in writing to the Superintendent, who would then be entitled to notice and a pre-termination hearing before the Board to discuss the merits. ( Id. )
Early in the school year, Baird found himself under close scrutiny by certain Board members, who in conjunction with their observations, began to collect a variety of deprecatory comments about Baird and his activities from secretaries, teachers and other district employees. This on-the-sly in- vestigation of the new Superintendent continued throughout the school year until April of 2001, when the accumulated tidbits of derogation were distilled into the form of Baird’s annual performance review. Pursuant to the contract, on April 18, 2001, the Board presented Baird with its evalua- tion of his performance and a letter that notified him of its intent to terminate him for cause for the reasons contained in the evaluation and advised him of a hearing to consider his termination to take place on May 16, 2001.
Upon receiving this letter, Baird contacted his attorney, who promptly responded to the Board by letter requesting a continuance, copies of underlying documents, the names of individuals who had provided information included in the employment evaluation and the recusal of certain “biased” Board members who had led the investigative efforts against Baird. The Board in its reply denied these requests and stated further that it would not call witnesses, that it would not identify the individuals whose claims had provided the substance of the employment evaluation, that it could not compel any district employees to attend the hearing, that Baird was only entitled to “notice and the opportunity to be heard” and that Baird could question Board members only as to issues about which those members had spoken. In the final communication between the parties, which took place on the day of the hearing, Baird’s attorney objected to the hearing procedures specified by the Board as unfair. That evening, when the Board convened to discuss his termi- nation, Baird appeared with his attorney to protest what he claimed to be contractual and due process violations, and he then departed. The Board proceeded to consider Baird’s termination in his absence, and predictably voted to end what had become an acrimonious employment relationship. Thereafter, it forwarded to Baird a copy of its Resolution of Termination.
Having been fired without receiving what he considered to be a fair hearing, Baird brought an action in state court seeking damages against the Board pursuant to 42 U.S.C. § 1983, alleging that the Board’s termination procedures violated his right to procedural due process. Baird claimed that certain Board members were biased against him and could not have served as neutral decision makers. He also asserted a breach of contract claim under Illinois law. After the Board removed the case to federal court, Baird filed a motion for partial summary judgment as to liability on his due process claim alleging an insufficient hearing, and the Board and Board members filed a motion for summary judgment on all claims. Thus, there were cross-motions on all issues save the issue of biased decision makers.
The district court granted the Board’s motion and declined to exercise supplemental jurisdiction over Baird’s common law breach of contract claim, remanding it back to state court. Citing Cleveland Board of Education v. Loudermill , 470 U.S. 532, 546 (1985), the District Court stated that, provided there was a full due process hearing after termi- nation, a pre-termination hearing need only provide notice of the charge, an explanation of the basis of the charge and an opportunity to respond. Baird’s pre-termination hearing had satisfied these requirements. The district court con- cluded that here the state suit for breach of contract met due process requirements. In addition, the district court rejected Baird’s allegations of bias, finding that his evidence had not overcome the presumption that Board members were acting in the public interest and that their concerns had stemmed from Baird’s job performance and not personal animosity.
The issue here is whether a state breach of contract suit provides due process if the pre-deprivation hearing does not. We also turn to the question whether a public employee waives the right to challenge a pre-termination hearing on due process grounds when he attends the hearing only to object to its procedures.
II.
In reviewing a grant of summary judgment, we review the district court’s determination de novo . New Burnham Prairie Homes, Inc. v. Vill. of Burnham , 910 F.2d 1474, 1477 (7th Cir. 1990).
A.
We agree with the district court’s determination that the Board members’ decision to terminate Baird was not tainted with bias. While the conduct of certain Board members appears to have been petty and maladroit, this seems to have been more a matter of modus operandi and style than of substantial prejudice. We are not persuaded, however, that the Board’s procedures were entirely fair. The trun- cated pre-termination hearing afforded to Baird could comport with due process only if he received full due process promptly after termination. The error here was in determin- ing under what circumstances a breach of contract suit can afford due process.
There can be no due process without “the opportunity to
be heard ‘at a meaningful time and in a meaningful man-
ner.’ ”
Matthews v. Eldridge
,
1.
The Supreme Court has long recognized that a public
employee can have a constitutionally protected property
interest in continued employment; such interests “are cre-
ated and their dimensions are defined by existing rules or
understandings that stem from an independent source such
as state law . . . .”
Bd. of Regents v. Roth
,
Our own Seventh Circuit precedent likewise establishes that, when there is an opportunity for a full post-termina- tion hearing, due process does not require an employer to provide full “trial-type rights” such as the right to present or cross-examine witnesses at the pre-termination hearing. Staples v. City of Milwaukee , 142 F.3d 383, 387 (7th Cir. 1998). See also Head v. Chicago Sch. Reform Bd. of Tr. , 225 F.3d 794, 803 (7th Cir. 2000) (when full post-termination procedures are available, public employer must provide a public employee with a protected property interest with pre- termination notice, explanation of evidence and a chance to tell his side of the story).
The issue in the case before us is whether a post-termina-
tion lawsuit for breach of contract can remedy the full due
process deficiency in the pre-termination proceedings.
Lujan v. G&G Fire Sprinklers, Inc.
,
A present entitlement is immediately distinguishable from the contractual interests dealt with in Lujan and its progeny. In Lujan , the state of California withheld funds from a public works subcontractor and imposed penalties after receiving notice that the subcontractor had violated provisions of the state Labor Code. The Supreme Court characterized the subcontractor’s interest as merely a con- tractual interest, a “deprivation of payment that it contends it is owed under a contract” that could be adequately protected through a breach of contract suit. Lujan , 532 U.S. at 196. Moreover, the Supreme Court contrasted the subcon- tractor’s interest with two illustrative examples of present entitlements in the employment context:
In
Barchi
[
Barry v. Barchi
,
Id . [1] The postdeprivation remedies appropriate to the depri- vation of an interest to which there is a present entitlement are characterized by promptness and by the ability to re- store the claimant to possession. The underlying concept seems to be that the remedy is available before the loss has become complete and irrevocable.
A state law breach of contract action is not an adequate
post-termination remedy for a terminated employee who
possesses a present entitlement and who has been afforded
only a limited pre-termination hearing.
Id
. While it does
provide a species of due process, a lawsuit does not satisfy
the requirement of promptness, which is essential if the em-
ployee is to pursue time-sensitive remedies such as rein-
statement. While there is no specific time frame within
which a hearing must be held to qualify as “prompt,” lack
of a speedy resolution to proceedings may result in a denial
of due process.
Loudermill
,
2.
After reviewing the facts of this case, we conclude that
Baird has established his present entitlement. Baird’s in-
terest is distinguishable from those in
Lujan
and its progeny;
he was terminated in the first year of a three-year contract,
and had a protected property interest in remaining in office
under his contract for its full term and in being compen-
sated accordingly.
[3]
See Lujan
,
The Board takes credit for “generous” pre-termination hearing procedures to a degree such that one might envision the proceedings as a veritable cornucopia of due process protections. In reality, however, the Board’s gestures seem to have been just that—gestures. While Baird was ostensi- bly afforded the opportunity to call and question witnesses, the Board effectively emasculated this provision by refusing to furnish him with the names of district employees who had acted as undercover school board informants. Baird was also allowed to question Board members—but only about matters as to which they had spoken. What the Board gave to Baird with the left hand, it seemed to take away with the right, leaving Baird with a pre-termination hearing that may have satisfied a bare-bones Loudermill standard, but little else. [4] And the Board has offered no reason why more generous measures under the Mathews criteria might have been difficult or impossible to supply.
We are aware that Baird presumably does not now as a practical matter pursue reinstatement as a remedy. How- ever, this does not alter our analysis. The kind of remedies that conform to due process must be available promptly and must generally include the possibility of reinstatement. Otherwise they are not adequate to address the loss of a present entitlement.
3.
In reaching this conclusion, we find persuasive the rea-
soning of
McClure v. Independent School District No. 16
, 228
F.3d 1205 (10th Cir. 2000), in which a principal terminated
under a one-year contract was afforded only a minimal pre-
termination hearing in which the district attorney presented
live witnesses and sought to introduce accusatory affidavits
from identified district employees. The Tenth Circuit found
that the terminated principal was entitled to confront and
cross-examine those individuals “whose work deprives a
person of his livelihood.”
McClure
,
Moreover, Seventh Circuit precedent is to the same effect.
We have never held that a state breach of contract action
provides a terminated public employee with adequate due
process
when that employee possessed a present entitlement
.
The present case is immediately distinguishable from other
cases cited by the Board. The Board’s invocation of
Strasburger
v. Board of Education, Hardin County Community Unit
School District
,
The Board’s reliance on
Schacht v. Wisconsin Department
of Corrections
, 175 F.3d 497, 503 (7th Cir. 1999), and
Papapetropoulous v. Milwaukee Transport Services, Inc.
,
B.
Resolving the central issue whether Baird’s pre-termina- tion hearing provided adequate due process does not end our inquiry. We must also address an issue that is dear to the heart of every lawyer seeking to bolster more elaborate arguments: waiver. The Board not unpersuasively argues that Baird waived the right to contest the adequacy of his pre-termination hearing on due process grounds when he failed to attend the hearing. In response, Baird contends that he did attend the hearing to object to its procedures, and, moreover, claims that he was not legally required to attend to preserve his right to object when he had received advance notice that the hearing would be merely a kangaroo court.
We have frequently held that terminated employees who
do not avail themselves of pre-termination hearings waive
their right to contest the adequacy of such hearings.
See
Fern v. Thorpe Pub. Sch.
,
Although the issue may be close, we conclude that Baird
did not waive his right to contest the adequacy of the hear-
ing on due process grounds. The obvious deficiency of the
procedures offered in the instant case, and the fact that
Baird did appear to state his objection to these procedures,
distinguishes it from
Fern
and similar cases. Seventh Circuit
authority establishes only that the right to object to an ar-
guably deficient hearing is waived when an employer offers
a pre-termination hearing and a public employee facing
termination fails to accept the offer by failing to appear.
Ryan v. Illinois Dep’t of Children & Family Serv.
, 185 F.3d
751, 761 (7th Cir. 1999).
See also Flynn v. Sandahl
, 58 F.3d
283, 288 (7th Cir. 1995) (“employee cannot claim lack of due
process when his employer offered him such a pre-termina-
tion hearing and he refused to attend.”);
Cliff v. Bd. of Sch.
Comm’rs of City of Indianapolis
,
Precedent establishes that, when a pre-termination hear- ing is offered, “the offeree should assume that it will be a fair hearing until the offeror indicates otherwise.” Fern , 532 F.2d at 1133 (citing Suckle v. Madison Gen. Hosp. , 499 F.2d 1364, 1367 (7th Cir. 1974). Baird contends that he was not obligated to participate in the hearing because the presump- tion of fairness evaporated after the Board notified him of the hearing procedures and denied his request for additional procedures. This argument may overstate the appropriate position. Fern and Suckle are silent as to the propriety of conduct after a presumption of a fair hearing is apparently belied by the offeror’s conduct. We believe the presumption of fairness continues and the plaintiff bears the risk of waiver, but under the present facts, when the plaintiff has requested reasonable safeguards and has been flatly denied both before and at the hearing and where nothing useful could apparently be gained by continuing participation, we will not find a waiver as a matter of law.
C.
Having found that the Board is not entitled to summary
judgement on the issue of violation of Baird’s due process
rights and that Baird did not waive, as a matter of law, his
right to contest the adequacy of the hearing on due process
grounds, we turn finally to the question, which was not ad-
dressed by the district court, whether the Board members
qualify for absolute or qualified immunity. Absolute immun-
ity attaches to “all actions taken in the sphere of legitimate
legislative activity.”
Bogan v. Scott-Harris
,
Nor do Board members appear to be entitled to qualified
immunity, which protects public officials who exercise dis-
cretionary or policymaking functions from liability in dam-
ages.
Billings v. Madison Metro. Sch. Dist.
,
We have already found that the Board violated Baird’s
due process rights by according him a hearing whose pro-
cedures were severely deficient. Thus, we proceed directly
to the question whether Baird’s rights were clearly estab-
lished. We conclude that they are. A right must be established
at the “appropriate level of specificity before a court can
determine if it was clearly established.”
Wilson v. Layne
,
Determining the reasonableness of a “mistake” does not
necessitate comparison to a precedent that squares in every
detail with the present case.
See Ulichny v. Merton Comm.
Sch. Dist.
,
III.
It is always pleasant when the troublesome process of ter- minating an employee whose job performance is perceived as unsatisfactory can be concluded with a polite handshake and a heartfelt “fare-thee-well.” Unfortunately, that ideal firing most often remains just that—an ideal. Here, not only did goodwill go by the boards but elementary fairness fell through the cracks. A lawsuit for breach of contract simply does not provide the due process which is missing elsewhere when a present entitlement is at stake.
For the above reasons we R EVERSE and R EMAND for further proceedings consistent with this opinion. A true Copy:
Teste:
________________________________ Clerk of the United States Court of Appeals for the Seventh Circuit USCA-02-C-0072—11-12-04
Notes
[1] Similarly, in applying
Lujan
’s holding to the property interest
of the former managers of a city-owned cemetery whose man-
agement contract was terminated by the city, the Ninth Circuit
reasoned that because the “contract here has not given rise to
greater interest than the contract itself,” the deprivation was a
mere contractual injury that could be adequately protected by a
state breach of contract suit.
DeBoer
,
[2] While Reeves involved a teacher challenging a reassignment on the grounds that it violated the First Amendment, the Fifth Circuit’s treatment of reinstatement applies here as well.
[3] Because we have held that a pecuniary loss is an actionable
deprivation of property, we need not reach the issue whether the
termination’s adverse effect on Baird’s future employment pros-
pects is also an actionable deprivation.
Head
, 225 F.3d at 803
(citing
Swick v. City of Chicago
,
[4] This finding is supported by an application of the factors enunciated in Mathews . The threat of loss of livelihood coupled (continued...)
[4] (...continued)
with an opportunity to promptly pursue reinstatement are the
primary private concerns of a public employee who stands to be
terminated, although the impact of a ‘for cause’ termination on
future employment prospects is serious as well. A public employee
has a right to verify the accuracy of the purported cause(s) of ter-
mination. The opportunity to confront and cross-examine accusers,
a cornerstone of our adversary system, assists in resolving dis-
putes over facts giving rise to the termination or indeed over whether
the termination itself is merited, and so is key to preventing the
deprivation of a constitutionally protected property interest. While
the right to confront and cross-examine witnesses is not absolute
in the civil context under
Catlett v. Woodfin
,
