ESTATE OF Frank P. LAGANO, Appellant v. BERGEN COUNTY PROSECUTOR‘S OFFICE; Michael Mordaga; Various John Doe and Jane Doe Defendants, whose individual identities or wrongful acts are not now known to Plaintiff.
No. 13-3232
United States Court of Appeals, Third Circuit
Argued March 19, 2014. Filed Oct. 15, 2014.
769 F.3d 850
John J. Hoffman, Esq., Lisa A. Puglisi, Esq., Brian G. Flanagan, Esq. [Argued], Eric S. Pasternack, Esq., Office of Attorney General of New Jersey, Trenton, NJ, Attorneys for Defendants/Appellees.
Before: CHAGARES, GREENAWAY, JR., and VANASKIE, Circuit Judges.
OPINION
VANASKIE, Circuit Judge.
Frank P. Lagano was fatally shot on April 12, 2007, in front of a diner in East Brunswick, New Jersey. More than five years later, in August 2012, the Estate of Frank P. Lagano (“the Estate“) filed suit against, inter alia, the Bergen County Prosecutor‘s Office (the “BCPO“) and former BCPO Chief of Detectives Michael Mordaga, alleging that BCPO personnel improperly revealed to members of organized crime that Lagano was an informant and this disclosure led to Lagano‘s murder. Specifically, the Estate contends the alleged disclosure of Lagano‘s status as a confidential informant established a state-created danger in violation of his due process rights. The Estate also challenges a December 2004 search of Lagano‘s home and seizure of his property. The BCPO and Mordaga (collectively, “Appellees“) each filed motions to dismiss the Estate‘s complaint under
I.
According to the Estate, Lagano and Michael Mordaga shared a long-term business and personal relationship.1 Lagano was also the subject of an organized crime investigation by the BCPO, where Mordaga served as Chief of Detectives. On December 1, 2004, BCPO detectives executed a search warrant at Lagano‘s home in New Jersey, during which they seized more than $50,000 in cash along with other items. Detectives from the BCPO also executed search warrants on Lagano‘s safe deposit boxes, which resulted in the seizure of additional funds. Lagano was charged with several crimes, including racketeering, promoting gambling, criminal usury, and conspiracy.
After Lagano was charged, Mordaga allegedly brought Lagano to his office and instructed him to retain a specific attorney with the assurance that the attorney could “make his legal problems go away.” (Estate‘s Br. 12.) Lagano did not follow Mordaga‘s instructions. Instead, according to the Estate‘s allegations, Lagano agreed to serve as a confidential informant for James Sweeney, who was employed at the time as an investigator with the Criminal Justice Division of the New Jersey Attorney General‘s Office (“the DCJ“).
Mordaga subsequently attended a dinner meeting with Lagano, where he once again urged Lagano to hire the attorney he recommended, assuring him that, if he did so, “half his money would be returned and . . . [he] would serve no prison time.” (App. 31a ¶ 28.) Lagano rejected Mordaga‘s offer, and their relationship “soured.” (Id. 30a ¶ 21.)
The Estate avers that sometime thereafter, “[BCPO] personnel . . . disclosed to alleged members of traditional Organized Crime families . . . that [Lagano] had been an informant.” (Id. 32a ¶ 32.) On April 12, 2007, more than two years after his arrest, Lagano was shot and killed. The Estate argues that Lagano‘s death resulted from the actions of Mordaga and other BCPO employees, who allegedly “conspired to illegally arrest and steal funds
On August 29, 2012, the Estate filed a three-count complaint against the State of New Jersey, the BCPO, Mordaga, and various John and Jane Doe Defendants. The bulk of the Estate‘s factual averments were based on allegations made by James Sweeney, who is now deceased, in a complaint he filed in 2010 (“the Sweeney Complaint“).2 The Estate contends that it discovered the facts relevant to this appeal through the Sweeney Complaint.
The Estate filed a first amended complaint (hereinafter, “the amended complaint“) on December 12, 2012, which asserts the same claims as averred in the original complaint but omits the State of New Jersey as a defendant. Count 1 presents a due process claim under the state-created danger theory, asserting that Appellees violated Lagano‘s rights by disclosing his identity as a confidential informant, thus proximately causing his death. Count 2 asserts the same claim, but under the New Jersey Constitution, made actionable via the New Jersey Civil Rights Act,
The BCPO filed a motion to dismiss, and the District Court granted the motion on March 22, 2013. Mordaga then filed a motion to dismiss, which the District Court granted on June 19, 2013. The Estate filed this timely appeal.
II.
The District Court had jurisdiction under
III.
The District Court‘s dismissal rested on several alternative theories: the District Court dismissed all counts on the basis that neither Mordaga nor the BCPO is a “person” amenable to suit under
A. The BCPO and Mordaga as “Persons”
We begin with the question of whether Appellees are “persons” amenable to suit under
1. Sections 1983 and 1985
Section 1983 imposes liability on “[e]very person who, under color of any statute, ordinance, regulation, custom, or usage, of any State . . . subjects . . . any citizen of the United States or other person within the jurisdiction thereof to the deprivation of any rights, privileges, or immunities secured by the Constitution and laws.”
The District Court found that the BCPO was an arm of the State of New Jersey, and that Mordaga, as BCPO Chief of Detectives, was a state official. In Will v. Michigan Department of State Police, 491 U.S. 58, 71 (1989), the Court held that “neither a State nor its officials acting in their official capacities are ‘persons’ under § 1983.”4 Local governmental bodies and their officials, by contrast, are regarded as “persons” amenable to suit under § 1983. See Monell v. Dep‘t of Soc. Servs., 436 U.S. 658, 690 (1978).
Because local governmental bodies and their officials are “persons” under
Here, the District Court found that “the BCPO was acting within its classical function of investigating criminal activities and conducting criminal prosecutions with respect to Mr. Lagano.” (App. 13a.) Similarly, the District Court found that Mordaga “was acting as the Chief of Detectives in the BCPO, a state agency,” and that Mordaga was acting “in his official capacity in connection with the allegations made by Lagano‘s Estate.” (App. 8a.) Based upon these findings, the District Court concluded that neither the BCPO nor Mordaga were amenable to suit under
It is, of course, true that in some respects the amended complaint avers activity within the BCPO and actions taken by Mordaga that fall within the ambit of “classic law enforcement and investigative functions.” Coleman, 87 F.3d at 1505. But the amended complaint must be read as a whole, and its averments and the inferences reasonably drawn from those averments must be viewed in the light most favorable to the plaintiff. See S.H. ex rel. Durrell v. Lower Merion Sch. Dist., 729 F.3d 248, 256 (3d Cir. 2013). In this case, the amended complaint is replete with allegations that Mordaga and others within the BCPO were not performing the classic functions of law enforcement or criminal investigators.
For instance, the amended complaint alleged that Lagano and Mordaga “enjoyed a personal and business relationship,” (App. 29a ¶ 11), which included “vacation[ing], visit[ing,] . . . socializ[ing,]” and “multiple business ventures.” (Id. ¶ 12, 14.) The amended complaint also alleged that Mordaga met with Lagano after Lagano‘s home was searched, provided him with the name of a specific attorney, and assured Lagano that, if he retained this attorney, “90% of [his] problems would go away.” (Id. 30a ¶ 20.) After Lagano failed to retain the recommended attorney, the amended complaint averred that Mordaga attended a “dinner meeting,” during which Mordaga advised Lagano that “half his money would be returned and guaranteed that [Lagano] would serve no prison time if [he] hired the attorney Mordaga recommended.” (Id. 31a ¶ 27.) As to the disclosure of Lagano‘s identity as a confidential informant, the amended complaint alleged that “[BCPO] personnel thereafter disclosed to alleged members of traditional Organized Crime families arrested in raids on December 1, 2004 that [Lagano] had been an informant.” (Id. 32a ¶ 32.)
The amended complaint clearly alleges that Mordaga‘s relationship with Lagano extended beyond Mordaga‘s official role as BCPO Chief of Detectives during the BCPO investigation of Lagano. It can also reasonably be inferred from the allegations that Mordaga was not performing classic investigatory and prosecutorial functions when he urged Lagano to retain a specific attorney on the assurance that this attorney could make Lagano‘s problems disappear. It can also be inferred from the amended complaint that the alleged disclosure of Lagano‘s status as a confidential informant was unrelated to any lawful investigative or prosecutorial
Even if the amended complaint could not be viewed as alleging conduct outside classic law enforcement and investigative functions, the dismissal as to Mordaga was incorrect for an additional reason. Mordaga is sued not only in his official capacity, but also in his personal capacity. (See Estate Br. 31.) Accordingly, he most certainly is amenable to suit as a “person” under
2. New Jersey Civil Rights Act
In addition to bringing suit under the federal civil rights statutes, the Estate raised a claim under the NJCRA,
B. Eleventh Amendment Sovereign Immunity
The District Court also dismissed the amended complaint as to the BCPO on the alternative basis that the BCPO is protected by Eleventh Amendment sovereign immunity. The Eleventh Amendment of the United States Constitution provides:
The Judicial power of the United States shall not be construed to extend to any suit in law or equity, commenced or prosecuted against one of the United States by Citizens of another State, or by Citizens or Subjects of any Foreign State.
Sovereign immunity extends to state agencies and state officers, “as long as the state is the real party in interest.” Fitchik v. N.J. Transit Rail Operations, 873 F.2d 655, 659 (3d Cir. 1989). It does not extend to counties and municipalities. Bolden v. Se. Pa. Transp. Auth., 953 F.2d 807, 813 (3d Cir. 1991) (“[A]lthough political subdivisions of a state, such as counties and municipalities, fall within the term ‘State’ as used in the Fourteenth Amendment, political subdivisions are not ‘State[s]’ under the Eleventh Amendment.“). To determine whether the state is the real party in interest, this Court considers three factors: (1) whether the money to pay for the judgment would come from the state; (2) the status of the agency under state law; and (3) what degree of autonomy the agency has. Fitchik, 873 F.2d at 659.
Rather than applying Fitchik to the facts alleged by the Estate to reach the
ant to the NJCRA because the District Court‘s analysis assumes that the BCPO and Mordaga acted as agents of the state, and we hold that
conclusion that the BCPO was entitled to Eleventh Amendment sovereign immunity, the District Court relied solely on our decision in Coleman. The District Court‘s reading of Coleman is erroneous. First, Coleman never mentions Fitchik. And second, Coleman does not address Eleventh Amendment sovereign immunity. Instead, Coleman focuses on the question of what entities and public officials may be regarded as arms and officials of the State for the purpose of determining whether the named entity and public official are to be regarded as “persons” subject to suit under
Appellees point to our unpublished decision in Beightler v. Office of Essex Cnty. Prosecutor, 342 Fed. Appx. 829, 832 (3d Cir. 2009) (per curiam), which stated that Coleman “essentially analyzed the same factors presented in Fitchik,” as support for the District Court‘s conclusion that the Fitchik factors are met any time a court finds that county prosecutors act as arms of the state by performing classic law enforcement functions. However, we are not bound or persuaded by Beightler‘s statement that the Fitchik inquiry is satisfied whenever a county prosecutor engages in classic prosecutorial functions. We therefore conclude that Fitchik provides the
the District Court erred in drawing that conclusion at this stage.
C. Qualified Immunity
We turn now to the District Court‘s finding that Mordaga is protected by qualified immunity. “The doctrine of qualified immunity protects government officials ‘from liability for civil damages insofar as their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known.‘” Pearson v. Callahan, 555 U.S. 223, 231 (2009) (quoting Harlow v. Fitzgerald, 457 U.S. 800, 818 (1982)). To resolve a claim of qualified immunity, a court must engage in a two-pronged analysis to decide (1) whether the plaintiff alleged sufficient facts to establish the violation of a constitutional right, and (2) whether the right was “clearly established” at the time of the defendant‘s actions. Id. at 232.
The Estate‘s claim is grounded in the Due Process Clause of the Fourteenth Amendment, which provides that no State shall “deprive any person of life, liberty, or property, without due process of law . . . .”
the state to affirmatively protect its citizens. DeShaney v. Winnebago Cnty. Dep‘t of Soc. Servs., 489 U.S. 189, 195-96 (1989). One exception to this general rule is the state-created danger theory, and it is under this theory that the Estate proceeds on its due process claims.
To establish a claim under the state-created danger theory, a plaintiff must prove that:
- the harm ultimately caused was foreseeable and fairly direct;
- a state actor acted with a degree of culpability that shocks the conscience;
- a relationship between the state and the plaintiff existed such that the plaintiff was a foreseeable victim of the defendant‘s acts, or a member of a discrete class of persons subjected to the potential harm brought about by the state‘s actions, as opposed to a member of the public in general; and
- a state actor affirmatively used his or her authority in a way that created a danger to the citizen or that rendered the citizen more vulnerable to danger than had the state not acted at all.
Bright v. Westmoreland Cnty., 443 F.3d 276, 281 (3d Cir. 2006) (internal quotation marks and footnotes omitted).
The Estate asserts that Appellees—either Mordaga or another employee within the BCPO—disclosed Lagano‘s status as a confidential informant to members of organized crime families, and that this disclosure established a state-created danger that resulted in his murder. Mordaga responded that he is entitled to qualified
The District Court focused on the second prong of the qualified immunity analysis, holding that the constitutional right claimed to have been violated was not clearly established at the time of Lagano‘s murder. In reaching this conclusion, the District Court reasoned that because “[t]here are no published cases that extend the state created danger right to confidential informants in the Third Circuit[,] . . . it would be unfair to hold that a constitutional right was ‘clearly established.‘” (App. 6a-7a.) The District Court defined the right asserted by the Estate as “a confidential informant‘s constitutional right to nondisclosure.” (Id.)
We cannot endorse the District Court‘s unduly narrow construction of the right at issue, or its statement that the right was not clearly established. It has been clearly established in this Circuit for nearly two decades that a state-created danger violates due process. See Kneipp v. Tedder, 95 F.3d 1199, 1211 (3d Cir. 1996) (holding that state-created danger theory is “viable mechanism for establishing a constitutional violation.“). That we have not applied the state-created danger theory in the context of a confidential informant is not dispositive on the qualified immunity defense. As the Supreme Court explained in Hope v. Pelzer, 536 U.S. 730, 741 (2002), “[a]lthough earlier cases involving fundamentally similar facts can provide especially strong support for a conclusion that the law is clearly established, they are not
necessary to such a finding.” Id. at 741. Thus, the Estate can overcome Mordaga‘s qualified immunity defense without proving that we have previously issued a binding decision recognizing a state-created danger in the context of the disclosure of a confidential informant‘s status, and the District Court erred in requiring it to do so.
The focus of the qualified immunity inquiry is on the allegations made by the Estate. Specifically, the question is whether the facts averred by the Estate fall within the elements of the state-created danger theory, and whether “it would be clear to a reasonable officer” that the alleged disclosure was unlawful under the circumstances. Saucier v. Katz, 533 U.S. 194, 202 (2001). We express no opinion as to whether the amended complaint satisfies these inquiries, but, because the District Court failed to apply the proper standard, we must vacate the District Court‘s decision in favor of Mordaga on the qualified immunity defense.
D. Statute of Limitations
The District Court dismissed Count 3 on the alternative basis that it is barred by the statute of limitations. In determining the length of the statute of limitations for a claim arising under
The date of accrual of a
Accrual is the occurrence of damages caused by a wrongful act—“when a plaintiff has ‘a complete and present cause of action,’ that is, when ‘the plaintiff can file suit and obtain relief.‘” [Wallace, 549 U.S. at 388] (quoting Bay Area Laundry and Dry Cleaning Pension Trust Fund v. Ferbar Corp. of Cal., 522 U.S. 192, 201 (1997)). As the Court in Wallace explained, “the tort cause of action accrues, and the statute of limitations commences to run, when the wrongful act or omission results in damages.” Id. at 391 (quoting 1 Calvin W. Corman, Limitation of Actions § 7.4.1 (1991)).
Dique v. N.J. State Police, 603 F.3d 181, 185-86 (3d Cir. 2010).
Here, the search of Lagano‘s home took place on December 1, 2004. On January 13, 2005, the BCPO brought a forfeiture action against Lagano under
The Estate argues that the cause of action did not accrue until Sweeney filed his complaint in federal court in September 2010.10 Although Lagano filed an an-
this State shall be commenced within 2 years next after the cause of such action shall have accrued . . . .”
The Estate‘s arguments are unpersuasive. Lagano‘s home was searched and his property was seized in December 2004, giving rise to the claim for damages. The record demonstrates that Lagano himself knew about the allegedly unlawful search and seizure by March 2005 at the latest, and thus had a complete cause of action at that time. See Dique, 603 F.3d at 185-86. As a result, the two-year period of limitations expired in March 2007, before Lagano‘s death the following month. We therefore hold that Count 3 is barred by the statute of limitations, and we will affirm the District Court‘s dismissal of Count 3 accordingly.
IV.
We must address one final issue. The Estate argues that it should be permitted to file a second amended complaint upon remand. We agree. We have held that whether or not a plaintiff seeks leave to amend, a district court considering a
V.
For the foregoing reasons, we will affirm in part and vacate in part the judgment entered by the District Court, and remand for further proceedings consistent with this opinion.
Notes
(emphasis added). The District Court‘s analysis focused solely on whether the state was used here “to designate the owner of property which may be the subject of an offense,” and concluded that it was not. While we agree with the District Court that this exception for property disputes is not implicated here, we must nevertheless vacate the dismissal pursu-corporations, companies, associations, societies, firms, partnerships and joint stock companies as well as individuals, unless restricted by the context to an individual as distinguished from a corporate entity or specifically restricted to 1 or some of the above enumerated synonyms and, when used to designate the owner of property which may be the subject of an offense, includes this State, the United States, any other State of the United States as defined infra and any foreign country or government lawfully owning or possessing property within this State.
