Clyde CONAWAY, Plaintiff-Appellant,
v.
Edward C. SMITH, Director, Neighborhood Preservation
Department of City of Kansas City, Kansas; M. James Medin,
City Administrator of the City of Kansas City, Kansas; and
the City of Kansas City, Kansas, a municipal corporation,
Defendants-Appellees.
No. 85-2914.
United States Court of Appeals,
Tenth Circuit.
Aug. 2, 1988.
Gail A. Bruner of Carson & Fields, Kansas City, Kan., for plaintiff-appellant.
Daniel B. Denk of McAnany, Van Cleave & Phillips, Kansas City, Kan., for defendants-appellees.
Before McKAY, ALARCON,* and MOORE, Circuit Judges.
PER CURIAM.
Plaintiff-appellant brought this action against defendants-appellees claiming they had violated his First Amendment right to free speech and Fourteenth Amendment right to due process by wrongfully discharging him from public employment. Defendants thereafter filed a motion for summary judgment, which the district court granted. Plaintiff appeals this judgment and argues that genuine issues of material fact exist as to his liberty and property interest due process claims and as to his First Amendment claim.
I. Factual Background
Clyde Conaway, plaintiff, was hired on July 27, 1982, by the City of Kansas City, Kansas, as an electrical inspector in the Building Inspection Division of the Neighborhood Preservation Department. At the time he was hired, no written or oral contract of employment was entered into stating the terms, conditions, or duration of his employment.
According to Conaway's verified complaint, several work-related problems arose during the next two years. First, Conaway and his partner were ordered by their immediate supervisor, Robert Wiggins, to perform certain campaign work for the mayor on city time or for compensatory time off. Second, Conaway claims problems developed because he refused to approve or "release as operational" substandard electrical work in certain community development projects, often in opposition to his immediate supervisor's demands. Finally, Conaway alleges that he made public charges against Robert Wiggins and John Mendez, his supervisors, for ordering him to perform electrical work during city time on their homes and the homes of their friends and relatives, sometimes without the proper permits and licenses.1
Conaway was suspended for thirty days on March 16, 1984, for the stated reason that he had threatened his immediate supervisor, Robert Wiggins. On April 3, 1984, Conaway was notified by a letter from Ed Smith, Department Director, that he could return to work after his suspension but was subject to a six-month probation period. While on probation, Conaway was warned he would be immediately terminated for any further "serious misconduct."
The events which led up to Conaway's ultimate dismissal began on May 25, 1984. Conaway was instructed to perform an electrical inspection of the Highland Park baseball fields. He discovered several electrical violations which were dangerously exposed to the public and refused to approve the facility as operational. Upon informing his new supervisor, Lyle Fisher, of the violations, Fisher instructed him to release the facility as operational and to perform a follow-up inspection the next week. Conaway released the electrical job to the Board of Power and Light, but also told the company about the existing violations, which they agreed to fix. Upon reinspection on Friday, June 1, 1984, Conaway found that the violations had not been corrected. Returning to the office that Friday afternoon to report the problem, Conaway found Fisher was not available.2 Conaway prepared a written report concerning the violations which also criticized Fisher's release of the facility due to the danger it posed to the public. He submitted this report on Monday morning, June 4, 1984, to Fisher, to Edward Smith, Director of the Neighborhood Preservation Department, and to James Medin, City Administrator.
Thursday, June 7, 1984, Fisher called Conaway into his office and requested him to sign a letter of reprimand for his failure to immediately notify Fisher on June 1st about the Highland Park violations. Conaway claims that the letter also contained allegations that Conaway had lied on a previous occasion when he testified against the City for a coemployee. Conaway refused to sign the letter, tore it into pieces, and left the office. That same day, Fisher wrote a memorandum to Smith, recommending that Conaway be terminated immediately for his failure to follow instructions and for the insubordinate act in tearing up the letter of reprimand. On June 13, 1984, Smith wrote a memorandum to Medin, informing the City Administrator of his decision to terminate Conaway because of Conaway's attitude toward his supervisor and refusal to perform work assignments. The termination was approved by the Medin on June 14, 1984, for the stated reason of insubordination.
After a formal grievance proceeding, the Board of Review affirmed Conaway's discharge, based on his act of insubordination while on probation. In a later hearing, a referee for the State of Kansas Department of Human Resources, Division of Employment, reviewed defendant's denial of Conaway's unemployment benefits. After hearing testimony by Conaway and Fisher,3 the referee found Conaway's discharge did not demonstrate a breach of duty owed to the employer, and further found a lack of any willful intent on the part of Conaway to go against the authority of his supervisors. He, therefore, held that Conaway was eligible for benefits.
Thereafter, Conaway filed a verified complaint claiming the City of Kansas City, Ed Smith, and James Medin had violated his constitutional rights by wrongfully terminating him. One year later, defendants moved for summary judgment on several grounds, including qualified immunity, failure to state a claim, and absence of any material issue of fact regarding the constitutional claims.
In granting defendants' motion for summary judgment, the district court concluded: (1) Conaway had neither a property nor a liberty interest protected by the Fourteenth Amendment which requires a pretermination hearing, and (2) Conaway's First Amendment rights were not violated because his speech was not protected under the First Amendment. Having decided the motion on these grounds, the district court dispensed with any discussion of defendants' other arguments. We affirm in part and reverse in part.
II. Standards of Review
In reviewing the order of summary judgment issued below, this court does not apply the clearly erroneous standard of Fed.R.Civ.P. 52, but instead views the case in the same manner as the trial court.4 Thus we must examine the record to determine whether any genuine issue of material fact pertinent to the ruling remains, and if not, whether the substantive law was correctly applied. Fed.R.Civ.P. 56. Western Casualty & Sur. v. National Union Fire Ins. Co.,
In responding to defendants' motion for summary judgment, Conaway relied heavily on specific facts he had asserted in his verified complaint to support his First Amendment claim. Although a nonmoving party may not rely merely on the unsupported or conclusory allegations contained in his pleadings, a verified complaint may be treated as an affidavit for purposes of summary judgment if it satisfies the standards for affidavits set out in Rule 56(e). See McElyea v. Babbitt,
Conaway did not rely solely on the "mere" pleadings to oppose the motion for summary judgment regarding his free speech claim. In addition to the factual allegations stated in his verified complaint, Conaway submitted certain documentary evidence to substantiate his claim. Conaway also identified other documents, photos and evidence to corroborate his rendition of the events which evidence was inexplicably missing from the files of the Building Inspection Division and was therefore unavailable to him. Under these circumstances, we will treat the verified complaint as an affidavit for the purpose of the motion for summary judgment. We note that there may be cases where the sole reliance on a verified complaint would be insufficient to meet a nonmoving party's burden under Celotex Corp. v. Catrett,
III. Due Process
Conaway's first claim of error concerns the deprivation of the liberty and property interest without due process. Procedural due process requires a pretermination hearing where liberty or property interests protected by the Fourteenth Amendment are implicated. Board of Regents of State Colleges v. Roth,
A public employee facing discharge is entitled to the safeguards of procedural due process only if he can demonstrate that the termination implicates a property or liberty interest protected by the Due Process Clause; if a property or liberty interest is not implicated, "he must settle for whatever procedures are provided by statute or regulation."
Sipes v. United States,
A. Property Interest
Determination of whether a plaintiff has a property interest is a question of state law. Bishop v. Wood,
Property interests, of course, are not created by the Constitution. Rather, they are created and their dimensions are defined by existing rules or understandings that stem from an independent source such as state law--rules or understandings that secure certain benefits and that support claims of entitlement to those benefits.
Id. Kansas case law recognizes a property interest in public employment when the employee is hired for a definite term. An employee hired for an indefinite term is an "at will employee," whose contract may be terminated at any time by either party. An at will employee has no property interest in employment.
Defendants have established through affidavits and deposition testimony that Conaway never had an oral or written contract with the city for permanent employment. They have further shown that there are no facts from which an implied contract can be inferred. We find defendants have met their initial burden of showing there are no material issues of fact as to the existence of a property interest.
In response, Conaway maintains an implied contract for continued employment may have existed for two reasons. First, he received a letter from Ed Smith which informed him, during his probation, he would be immediately terminated for any further serious misconduct. In addition, Conaway claims he "expected to remain employed as long as [he] performed the duties of [his] employment properly." To have a property interest, a person "must have more than a unilateral expectation, but, must instead, have a legitimate claim of entitlement to the interest." Roth,
Second, Conaway alleges he was given an employee handbook when he was hired. The State of Kansas recognizes that termination procedures in an employment manual "may be one of the relevant circumstances from which an implied contract can be inferred." Rouse v. Peoples Natural Gas Co.,
Kansas law holds that a unilateral expression in a personnel manual, which is not bargained for, cannot alone be the basis for an employment contract. Rouse v. Peoples Natural Gas Co.,
B. Liberty Interest
"The concept of liberty recognizes two particular interests of a public employee: 1) the protection of his good name, reputation, honor, and integrity, and 2) his freedom to take advantage of other employment opportunities." Miller v. City of Mission, Kan.,
In the present case, nothing in the record suggests that appellant's good name, reputation, honor, or integrity was stigmatized. Conaway only generally alleges that he has suffered damage to his personal and business reputation due to the city's false accusations and wrongful termination. No specific facts are asserted to support this claim.
The reasons for Conaway's discharge, neglect of duties and insubordination, even when considered false, do not call into question his good name, reputation, honor, or integrity. In comparison, a liberty interest might be implicated by charges of "dishonesty or immorality" because such charge might seriously damage his standing and associations in the community, Roth,
Conaway failed to present any facts that indicate he experienced any disadvantage in obtaining other employment or that he had been foreclosed from other employment opportunities. The label of insubordination, although somewhat of a negative reflection on a person, is not the type of stigma that seriously damages that person's ability to take advantage of other employment opportunities. Absent any evidence that Conaway's attempts to obtain other employment have been hindered by the charge of insubordination, we find that no protected liberty interest was infringed.
Because no reasonable inference of a property or liberty interest can be drawn from Conaway's complaint and supplemental evidence, summary judgment is appropriate as to the due process claims.
IV. First Amendment
Conaway also asserts a First Amendment claim, arguing that the City terminated him not for the stated reason of insubordination, but in retaliation for his criticism of his supervisors' actions. Conaway contends several work-related incidents contributed to defendants' decision to terminate him. First, Conaway made public comments about Robert Wiggins, the Chief Building Inspector, and John Mendez, Supervisor of the Building Inspection Division, concerning work he was requested to perform on city time for city officials and their friends and relatives, often without the required permits and license.6 Conaway claims he reported the questionable activities to James Medin, the City Administrator, and responded to media personnel who questioned him on the subject. Second, Conaway reported a series of activities involving Lyle Fisher which might have indicated illegal payoffs or kickbacks. Finally, Conaway argues that his termination was directly related to his criticism of Fisher. The week before he was terminated, Conaway sent a written report, dated June 4, 1984, to Ed Smith and James Medin advising them that Fisher had overruled his decision to reject the electrical work at Highland Park baseball fields. Conaway claims he wrote the report out of his concern for public life, health, and safety.7
Under Mt. Healthy City School Dist. Bd. of Educ. v. Doyle,
Under Connick v. Myers, whether an employee's speech addresses a matter of public concern must be determined by the "content, form, and context of a given statement, as revealed by the whole record."
Speech which discloses any evidence of corruption, impropriety, or other malfeasance on the part of city officials, in terms of content, clearly concerns matters of public import. See, e.g., Southside Pub. Schools v. Hill,
Conaway's expression of potential wrongdoing did not address internal policies relevant only to department personnel nor involve essentially a private matter, but concerned information in which the public would definitely be interested. See Piver v. Pender County Bd. of Educ.,
The form and context of Conaway's expression also comes within the "rubic of matters of public concern." Connick,
The second step of the First Amendment test concerns the Pickering balancing test, wherein the employee's interest in free comment upon matters of public concern is weighed against the state's interest in the efficiency of its public services. Pickering v. Board of Educ. of Township High School Dist. 205, Will County, Ill.,
When balancing the rights of the employee against those of the employer, an employee's First Amendment interest is entitled to greater weight where he is acting as a whistle blower in exposing government corruption. See Foster v. Ripley,
The Supreme Court recognizes as pertinent factors of the Pickering test "whether the statement impairs discipline by superiors or harmony among coworkers, has a detrimental impact on close working relationships for which personal loyalty and confidence are necessary, or impedes the performance of the speaker's duties or interferes with the regular operation of the enterprise." Rankin,
We first consider the impact of Conaway's speech on the Building Inspection Division. Disruptions in the working relationship between Conaway and his supervisors, and general disharmony in the office, are foreseeable consequences when an employee reports improper activities of coworkers or supervisors.10 We recognize, as did Justice Powell in his concurring opinion in Rankin, "that a public employer must have authority to maintain the efficiency as well as the integrity of his office." Rankin,
Protecting an employer's interest in preventing disruptions in the office or interference with department functions is most important in an agency where loyalty and confidence are essential to close working relationships. Although confidence and loyalty are attributes which help any office function more efficiently, a building inspection department does not involve as close a working relationship as, for example, a police department, Jurgensen v. Fairfax County, Va.,
An additional factor under the Pickering test is whether the content of Conaway's speech calls into question his general competence to perform his responsibilities. As noted earlier, defendants have not challenged the accuracy of Conaway's statements in any significant way nor otherwise questioned his ability to perform his job. Cf., Koch v. Hutchinson,
Nor does Conaway's former position as an electrical inspector in the Building Inspection Division persuade us that the government's interest outweighs Conaway's First Amendment rights. Under Rankin, an employee whose duties include a "confidential, policymaking, or public contact role," must be more cautious with what he says.
We finally address the manner, time, and place of Conaway's expressions. He privately spoke with Medin about the gratuitous favors he performed for Wiggins and Mendez, and the apparent payoffs involving Fisher. Later, he submitted a written report to Fisher, Smith, and Medin concerning the Highland Park electrical problems. There is no evidence that Conaway openly confronted Fisher in front of other employees or otherwise addressed coworkers about his concerns. Cf. Connick,
This case resembles Rookard v. Health and Hosps. Corp.,
Without any demonstrated adverse impact on the employer's operations apart from the general type of disruption noted by this court above, and in consideration of the importance of protecting reports of government misconduct, we hold Conaway's First Amendment interest in the speech at issue in this case outweighs the governmental interest at stake. We, therefore, conclude that the three incidences of speech are protected by the First Amendment.
Having concluded that Conaway's speech is constitutionally protected, we must now address whether the speech was a substantial or motivating factor in plaintiff's dismissal. The evidence presented in the record indicates a material issue of fact exists as to defendants' motivation in terminating Conaway. Conaway submitted documents and a verified complaint, which alleged specific facts based on personal knowledge, to show that he was terminated for reporting the improper activities of his supervisors. Conaway's personal account of the events which led to his dismissal must be accepted as true. On June 4th, Conaway submitted a report to Fisher, Smith, and Medin describing the Highland Park electrical violations and criticizing Fisher's release of the allegedly hazardous electrical work. Three days later, Fisher presented Conaway with a written reprimand and requested that Conaway sign the document. Although the parties dispute what actually occurred during the meeting, the evidence ties Fisher's reprimand to the very events about which Conaway had criticized Fisher. Immediately after this meeting, Fisher recommended Conaway be dismissed. In a later hearing concerning Conaway's unemployment benefits, Fisher indicated that Conaway's purpose in writing the June 4th report was to embarrass Fisher. See note 3, supra. Conaway also claimed he had a disagreement with defendant Smith the day before he was dismissed which, if accepted as true, puts Smith's motivation in recommending Conaway's termination under suspicion. See note 7, supra.
Reasonable inferences can be drawn from these facts that Fisher and Smith were at least partially motivated by Conaway's criticism of his supervisor's actions and his speech concerning what he perceived as definite problems in the Building Inspection Division. Based on this evidence, when viewed in a light most favorable to the plaintiff and considering the credibility factor involved, we conclude a jury might return a verdict in Conaway's favor on this issue. Anderson v. Liberty Lobby, Inc.,
The decision of the district court is AFFIRMED IN PART and REVERSED IN PART and the case is REMANDED for further proceedings consistent with this opinion.
Notes
The Honorable Arthur L. Alarcon, Circuit Judge, United States Court of Appeals for the Ninth Circuit, sitting by designation
It appears the news media followed Conaway to Mendez's home and took pictures of him working on an appliance. Later, the news reporters approached Conaway for a statement on the subject. Conaway also spoke with James Medin, the City Administrator about the matter. The charges prompted an investigation which resulted in suspension and demotion of the Chief Building Inspector, Robert Wiggins, a thirty-day suspension of the Supervisor of the Building Inspection Division, John Mendez, and Conaway alleges, resulted in his own suspension
Defendants have never alleged that Fisher was available on this particular afternoon
The referee's statement of facts included the following sentence: "[T]he employer also maintains that the claimant's conduct was aimed at embarrassing his immediate supervisor."
Summary judgment is a drastic remedy. We have cautioned that any relief pursuant to Fed.R.Civ.P. 56 should be awarded with care. Jones v. Nelson,
Defendants provided an affidavit by their Benefits Supervisor stating no employee handbook was distributed during the time Conaway was employed. They also produced a copy of the company personnel policy manual, which was distributed only to department heads. Nothing in the manual expressly provides for a fixed term of employment nor is there language from which a contract to that effect could be inferred. On the contrary, the manual states employees may be terminated with or without cause
In addition, Conaway objected to and allegedly made public disclosure of his being ordered by Robert Wiggins to work on the mayor's campaign for reelection in exchange for city compensation time. In the Connick case, the Supreme Court explicitly stated that pressure to work on political campaigns was a matter of public concern. Connick v. Myers,
Conaway also claims his termination was motivated by his refusal to "play ball" within the Building Inspection Division by accepting money in exchange for favorable inspection reports. Plaintiff alleges that on his last day of work before he was terminated, Smith entered his office and strongly suggested Conaway should cease rejecting certain electrical jobs on community projects in return for some tax-free money. Conaway claims he refused to participate in such activity. Plaintiff fails to allege, however, that he communicated these activities to anyone until after he was terminated. Absent any explicit communication, we are unable to find the circumstances involve "speech" under the First Amendment. This testimony may be relevant, however, in determining defendants' motive in terminating Conaway
The first element, including both the public concern and balancing issues, raises questions of law. Wren v. Spurlock,
The district court made reference to a statement Conaway made while out drinking with Robert Wiggins. Conaway said he would "kick his [Wiggins] butt." Depending on the context of his statement, its meaning could vary widely. The only evidence presented pertaining to context is that the two men were out drinking. We do not believe this statement, standing alone, demonstrates that Conaway's motivation in speaking out was for purely personal interest or vindictiveness. Cf. Fiorillo v. United States Dept. of Justice,
The record is devoid of any affidavit or other evidence tending to show Conaway's speech had an actual or potential effect of disruption within the Building Inspection Division. Nor is there any allegation that Conaway's statements were false, which might further disrupt office harmony
