Plаintiff and appellant Keen A. Umbehr appeals the district court’s grant of summary judgment to Defendants, members or ex-members of the Wabaunsee County Commission, on his 42 U.S.C. § 1983 action alleging that Defendants terminated a trash hauling contract in retaliation for Mr. Umbehr’s exercise of his right to free speech. For the following reasons, we REVERSE and REMAND.
BACKGROUND
Mr. Umbehr operated a trash hauling business in Wabaunsee County, Kansas. By statute, the county was obligated to provide a plan for solid waste disposal. In 1981, the county entered into a contract with Mr. Um-behr. The contract was renegotiated in 1985. The 1985 contract is the one at issue in this ease.
Under the contract, Mr. Umbehr did not in fact haul trash for the county. Rather, the contract provided that Mr. Umbehr could haul trash for cities in the county, at a rate specified in the contract, provided each city endorsed and ratified the contract. No city was under any obligation to ratify the contract. Each city had the right to opt out of the contract on ninety days’ notice. The contract itself was аutomatically renewed for successive one-year terms, unless either party gave sixty days’ notice of termination or ninety days’ notice of intent to renegotiate. The contract further provided that, during its term, the county and each city which approved the contract agreed not to contract with “any other individual or firm to provide solid waste removal from residential premises in any [cjity.” Appellees’ App. at 139.
Mr. Umbehr hauled trash for six of the seven cities in the county from 1985 until the county terminated the contract in 1991. In other words, the contract was automatically renewed each year, according to its terms. Throughout this time period, Mr. Umbehr spoke out at county commission meetings *878 and wrote letters and columns in local newspapers about a variety of topics, including landfill user rates, the cost of obtaining county documents from the county, alleged violations by the county commission of the Kansas Open Meetings Act, and a number of alleged improprieties, including mismanagement of taxpayer money, by the county road and bridge department.
Defendants Joe McClure, Glen Heiser, and George Spencer were all members of the Wabaunsee County Commission in 1990, when the commission voted to terminate the contract with Mr. Umbehr. Mr. Spencer and Mr. Heiser voted for termination, whereas Mr. McClure voted against termination. In fact, the attempted termination was not valid, and the contract continued for another year, until it was validly terminated in January 1991. At the time the contract was terminated, Mr. McClure was no longer on the county commission. His replacement on the commission voted not to terminate the contract, whereas Mr. Spencer and Mr. Heiser again voted in favor of termination. Mr. Umbehr subsequently entered into separate contracts to haul trash with five of the six cities he had previously served. The county did not enter into any other contracts involving trash hauling.
Mr. Umbehr brought suit against Defendants, claiming that they caused the termination of his contract with the county in retaliation for his outspoken criticism of the cоunty and the county commission, thereby violating his First Amendment right of free speech. He sued Defendants Heiser and Spencer in both their official and individual capacities. He sued Defendant McClure only in his individual capacity. Defendants filed motions for summary judgment. The district court assumed, solely for the purpose of its decision, that Mr. Umbehr “would have been protected from termination in retaliation for his statements” had he been a government employee, that his “comments did motivate the votes in favor of terminating [Mr. Umbehr’s] contract with Wabaunsee County,” and that he suffered damages as a result of the termination.
Umbehr v. McClure,
DISCUSSION
Summary judgment is appropriately granted when there are no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(c). ‘We review a district court’s summary judgment determination de novo, viewing the record in the light most favorable to the nonmoving party.”
Artes-Roy v. City of Aspen,
Although neither party has raised this issue, we first determine whether Mr. Umbehr has standing to bring this ease. Standing is a threshold issue, “jurisdictional in nature.”
Doyle v. Oklahoma Bar Ass’n,
We conclude that Mr. Umbehr has standing. Mr. Umbehr asserts a violation of his First Amendment rights — punishment, in the form of termination of a contract beneficial to him, because of his speech. While Defendants assert that the contract provided
*879
no benefit to the county, from which one could infer that its termination could inflict no injury on the county, Mr. Umbehr has alleged a benefit to him from the contract.
1
The contract obviated the need for him to individually negotiate a trash hauling contract with each city; it gave him the exclusive right to haul trash for cities that ratified the agreement; and it gave him, for at least sixty days, the right to haul trаsh for cities pursuant to the agreement, inasmuch as the county could only terminate the contract on sixty days’ notice.
2
Cf. Federal Deposit Ins. Corp. v. Henderson,
Mr. Umbehr was indisputably an independent contractor. As the district court acknowledged, there is conflicting ease law on whether those who independently contract with the government share the same degree of First Amendment protection for their speech as government employees.
3
A number of courts have held that governments may award or terminate publiс contracts on the basis of political affiliation or support.
See Triad Assocs., Inc. v. Chicago Hous. Auth.,
Our own circuit has suggested, without analysis, that independent contractors do enjoy protection against retaliation for the exercise of First Amendment rights.
Abercrombie,
After concluding that the Plaintiff had a property interest in wrecker referrals pursuant to applicable state statutes, we also concluded that the district court erred in granting judgment notwithstanding the verdict on his First Amendment retaliation claim. We gave little reasoning, however, simply stating:
The district court dismissed the entire Section 1983 clаim because it found that plaintiff did not have a property right in continued wrecker referrals. But, as noted above, plaintiff did have a property right in equal referrals. Furthermore, the Supreme Court has held a property right is not required for a first amendment retaliation claim.
Id.
at 1233 (citing
Perry,
Other circuits have provided a more detailed analysis of the issue, in reaching the opposite conclusion. The Seventh Circuit in LaFalce and the Third Circuit in Horn provided the clearest explanation of the reasoning behind those decisions holding that independent contractors enjoy no First Amendment protection when their contracts are terminated or they do not receive government contracts because of their exercise of First Amendment rights. 4 Two broad rationales animated those decisions: (1) the history and legal treatment of patronage practices in government employment; and (2) perceived distinctions between the ecоnomic status and *881 interests of independent contractors and employees. We examine each in turn.
As the
Ham
majority observed, the practice of political patronage is a “centuries’ old” and “historically established and traditionally accepted characteristic[ ] of government, be it on a municipal, county, state, or federal level.”
Horn,
Thus, as the
Horn
majority stated, “We perceive neither authority nor inkling in these decisions to extend first amendment protection beyond stated circumscriptions.”
Horn,
As indicated, the Horn and LaFalce courts also relied upon presumed practical and economic differencеs between independent contractors and employees as a basis for finding no violation of contractors’ First Amendment rights:
[Mjost government contractors also have private customers. If the contractor does not get the particular government contract on which he bids, because he is on the outs with the incumbent and the state does not have laws requiring the award of the contract to the low bidder (or the laws are not enforced), it is not the end of the world for him; there are other governmеnt entities to bid to, and private ones as well. It is not like losing your job. Of course, the contrast can be overstated; unless the government worker who loses his job cannot find another job anywhere, the loss will not be a total catastrophe_ An independent contractor would tend we imagine to feel a somewhat lesser sense of dependency.
LaFalce,
Thus, of the two broad rationales behind
Horn
and
LaFalce
— that the Supreme Court has restricted patronage practices sparingly and only in connection with employees, and that independent contractors have a different economic status vis-a-vis the government than do employees — the first one arguably supports the decisions permitting the award or termination of public contracts on the basis of political affiliation. The question remains whether it supports the termination of government contracts in retaliation for speech on matters of public concern, particularly in light of the Supreme Court’s most recent case involving patronage practices,
Rutan v. Republican Party of Illinois,
497
*882
U.S. 62,
In
Rutan,
the Court extended
Elrod
and
Branti
to hold that “promotions, transfers, and recalls after layoffs based on political affiliation or support” impermissibly infringe the First Amendment rights of public employees.
Rutan,
The Court further explained that governmental interests in efficiency and effectiveness can still be preserved by “discharging, demoting, or transferring staff members whose work is deficient” and by permitting the selection or dismissal of “certain high-level employees on the basis of their political views.”
Id.
at 74,
Nonetheless, the Seventh Circuit has adhered to its
LaFalce
and
Triad Associates
precedents, even after
Rutan.
In
Downtown Auto Parks, Inc. v. City of Milwaukee,
The other rationale behind
LaFalce
and
Horn
was premised on differences between public employees and independent contractors. Some of these differences are open to question, while others are undeniably true. Whether or nоt these are relevant distinctions, for example, independent contractors generally have more discretion and control over the performance of their jobs than do employees, and in that respect some may be more like the high-level policymaking employees who are still subject to patronage dismissals under
Rutan, Elrod,
and
Branti, See Vickery v. Jones,
On the other hand, much of the
LaFalce
and
Horn
rationale for treating independent contractors differently from employees rests on the assumption that independent contractors have less at stake than an employee, and the loss of a contract is less devastating than the loss of a job. While that is undeniably true in some cases, as it was in
Horn,
we have seen no empirical data that it is always or even usually the case.
See Horn,
We of course recognize that there is a long and vital tradition of treating independent contractors differently from employees in many legal contexts. In this First Amendment context, we reject any categorical distinctions based on whether independent contractors have more оr less of an economic interest in their governmental contracts, both because such categorical distinctions are impossible to make and because, in this context, they are irrelevant. There is little justification for a rule that the magnitude of the loss determines whether an individual’s First Amendment rights have been violated. As the dissenting opinion in Horn pointed out, “The constitutional wrong condemned in El-rod and Branti was the state’s attempt to control the beliefs and associations of its citizens. That control can be just as effective and offensive when the state reduces a citizen’s income by twenty percent as when the state reduces the citizen’s income by one hundred percent.” Id. at 683 (Gibbons, C.J., dissenting) (citations omitted). And Rutan’s extension of protection against patronage practices to a variety of employment practices short of dismissal undermines the argument that only the complete loss of one’s job merits First Amendment protection.
In sum, of the two rationales behind decisions such as LaFalce and Horn, which deny independent contractors the First Amendment protections enjoyed by public employees, the first rationale-thе Supreme Court’s cautious restriction of patronage practices in government employment-has been undermined by Rutan and has limited relevance to whether independent contractors should be protected against retaliation for speech on matters of public concern. The second rationale-presumed differences between the status of independent contractors and employees-is of questionable empirical validity and of dubious relevance to the question of whether First Amendment rights have been violated. Neither one explains why independent contractors should be given less First Amendment protection than either ordinary citizens or government employees. We therefore specifically hold, as we assumed in Abercrombie, that an independent contractor is protected under the First Amendment from retaliatory governmental action, just as an employee would be. Thus, the Pickering balancing test would apply to such a retaliatory action. 6 We realize that this decision places us squarely in conflict with several other circuits, a posture we do not adopt lightly. We also agree with the Seventh and Third Circuits that this is an area in which Supreme Court guidance is particularly needed.
The district court also held Defendants qualifiedly immune under
Harlow v. Fitzgerald,
Furthermore, Defendants have raised the issue of absolute legislative immunity, which the district court observed was a “close question.” Mr. Umbehr sued Defendants Heiser and Spencer in both thеir official and individual capacities. In them individual capacities, we have held that they are entitled to qualified immunity. An official capacity suit is just “another way of pleading an action against an entity of which an officer is not an agent.”
Monell v. Dep’t of Social Servs.,
Accordingly, we REVERSE and REMAND this case for further proceedings consistent herewith. All pending motions are DENIED.
Notes
. Mr. Umbehr does not claim, nor need he, that he has a property interest in his contract. "|T]he Supreme Court has held a property right is not required for a first amendment retaliation claim.”
Abercrombie v. City of Catoosa,
For at least a quarter-century, this Court has made clear that even though a person has no "right” to a valuable governmental benefit and even though the government may deny him the benefit for any number of reasons, there are some reasons upon which the government may not rely. It may not deny a benefit to a person on a basis that infringes his constitutionally protected interests — especially, his interest in freedom of speech.
Perry,
. Cities bound by the contract could only opt out on ninety days' notice.
. A public employee speaking on a matter of "public concern” is protected from an adverse employment decision if “the interests of the [employee], as a citizen, in commenting upon matters of public concern [outweigh] the interest of the State, as an employer, in promoting the efficiency of the public services it pеrforms through its employees,”
Pickering v. Board of Educ.,
. Virtually all of the other cases cited above specifically followed the Horn and LaFalce decisions.
.
Horn
involved independent contractors (motor vehicle agents) most of whom in fact were minimally dependent on their contractual arrangements with the government. The court was therefore able to avoid what it called “the emotionally-charged scenario posed at oral argument: Whether the first amendment would protect from politically-motivated discharge an independent contractor with substantial economic dependence on the state,
e.g.,
a one-person shoeshine stand in a public building."
Horn,
. We recognize that, in Mr. Umbehr's case, damages may be small and difficult to prove.
