9 Indiv.Empl.Rts.Cas. (BNA) 1266
Millard McKINNEY, Plaintiff-Appellant,
v.
John PATE, individually and in his official capacity as
Commissioner of the Osceola County Board of Commissioners,
Jack Shannin, individually and in his official capacity as
Development Department Director of Osceola County, and the
Osceola County Board of Commissioners, collectively,
Defendants-Appellees.
No. 91-3416.
United States Court of Appeals,
Eleventh Circuit.
May 5, 1994.
Thomas J. Pilacek, Longwood, FL, for appellant.
Robert H. Chanin, John M. West, Bredhoff & Kaiser, Washington, DC, for amicus curiae-National Educ. Ass'n.
Lewis E. Shelley, Tallahassee, FL, for appellees.
William C. Joy, Carol Atha Cosgrove, Office of the Atty. Gen., Atlanta, GA, for amicus for States of Ga., Fla. and Ala.
R. Read Gignilliat, Walter O. Lambeth, Jr., J. Lewis Sapp, Stanford G. Wilson and William Drummond Deveney, Elarbee, Thompson & Trapnell, Atlanta, GA, for amicus Ga. Municipal Ass'n.
Kevin W. Shaughnessy, Akerman, Senterfitt & Eidson, P.A., Orlando, FL, for amicus Orange Co., Fla.
Susan M. Hartwig, Steve Rothman, Office of the County Atty., Atlanta, GA, for amicus Fulton County, GA.
Anthony C. Musto, Asst. County Atty., Ft. Lauderdale, FL, for amicus Fla. Ass'n of County Attys.
Jody M. Litchford, Orlando, FL, for amicus Fla. League of Cities.
Appeal from the United States District Court for the Middle District of Florida.
Before TJOFLAT, Chief Judge, KRAVITCH, HATCHETT, ANDERSON, EDMONDSON, COX, BIRCH, DUBINA, BLACK and CARNES, Circuit Judges.*
TJOFLAT, Chief Judge:
This case presents the following issue: whether, under the Fourteenth Amendment, a government employee possessing a state-created property interest in his employment states a substantive due process claim, rather than a procedural due process claim, when he alleges that he was deprived of that employment interest by an arbitrary and capricious non-legislative government action. For ten years, as a panel of this court noted in this case,1 the law of this circuit has been that an employee alleging such a termination states a substantive due process claim. This circuit's law, however, diverges from Supreme Court precedent and affords protection not provided by the substantive component of the Fourteenth Amendment's Due Process Clause. Today, we return this circuit's due process jurisprudence to a proper footing and hold that the government action contested here does not give rise to a substantive due process claim.
In part I, we set forth the facts and procedural history of this case. In part II, we first discuss the Supreme Court's due process jurisprudence and then demonstrate how this circuit's cases have diverged from that established law. After demonstrating in part III that the claim in this case implicates only procedural due process guarantees, we find in part IV that the procedures here afforded satisfied constitutionally mandated minima. Finally, we find that this holding applies retroactively and requires the dismissal of appellant's claim.2
I.
Appellant Millard McKinney, the plaintiff below, obtained a position as the County Building Official in Osceola County, Florida, on July 27, 1987.3 The Building Division is one of three divisions within the Osceola County Development Department. Jack Shannin, the Director of the Development Department, hired McKinney and was McKinney's immediate supervisor; Shannin reported to County Administrator Eleanor Anderson.
Prior to McKinney's hiring, both the Building Division and the Development Department had been the subject of numerous public complaints; in part, McKinney was hired to address the public's dissatisfaction with the Building Division. To address ongoing problems in the Development Department and the Building Division, at least two public "workshops" were held during McKinney's tenure. Both prior to and subsequent to these hearings, McKinney's performance evaluations were excellent.
In November 1988, John Pate was elected to serve as one of the five commissioners on the Osceola County Board of County Commissioners ("the Board"). Because the public often directed complaints regarding the administration of the county's governmental business to the Board, not to individual departments, each commissioner also served as a liaison between the Board and a department; Pate's liaison duties included Shannin's Development Department (and, indirectly, McKinney's Building Division). McKinney alleges that members of the Board--particularly Pate, who in addition to his position as a county commissioner was employed by a construction subcontractor--were biased against McKinney because of McKinney's strict enforcement of the county's building codes. The Board allegedly informed County Administrator Anderson that McKinney was to be fired; Anderson in turn instructed Shannin to fire McKinney, asserting political motivations of the commissioners as justification. Shannin twice informed McKinney that he should resign or he would be fired; McKinney refused to resign.
McKinney was a full-time permanent employee of Osceola County. The Osceola County Policy Manual provides that "[a] permanent employee may be dismissed only for cause as outlined in the Code of Conduct and Disciplinary Procedures and this policy." In this case, "cause" would be defined as "incompeten[ce] or inefficienc[y] in carrying out [his] duties." The policy manual also outlines the procedures by which an employee may be terminated and divides employees into two categories: normal employees and "department heads." The termination procedures for department heads involve more procedural protection for the employee. As it was unclear whether McKinney, as County Building Official, qualified as a "department head," the county elected to afford him the maximum amount of process possible and followed the procedures for the termination of a department head.
After McKinney refused to resign, Shannin began the termination process by drafting a "Notice of Reasons for Proposed Termination of Millard McKinney" setting forth thirteen charges against McKinney, each of which presumably justified McKinney's dismissal.4 Immediately thereafter, the Board of County Commissioners held three days of hearings regarding the charges against McKinney. McKinney, who was aware of the bias he now alleges against Pate, attended the hearings with counsel (as well as with a court reporter). The county's labor attorney presented the case against McKinney, and McKinney cross-examined the county's witnesses and presented a case on his own behalf. (With the exception of his charge of bias, McKinney has not claimed that any of the procedures relevant to his termination were in any way deficient.) At the conclusion of the hearings, the Board upheld each of the charges and terminated McKinney's employment.
On October 11, 1989, McKinney brought this suit in the United States District Court for the Middle District of Florida. His complaint contained two counts; only the first count is before us.5 That count, brought pursuant to 42 U.S.C. Sec. 1983 (1988), alleged that the various charges against McKinney were pretextual and that the Board therefore fired McKinney without reason. McKinney alleged that this pretextual termination violated his "constitutional employment rights" and consequently denied him substantive due process of law. McKinney sought money damages for past and future lost wages and benefits; for injury to his liberty interest in his good name and reputation; and for severe emotional distress.6
The Board's answer to the first count of McKinney's complaint, the substantive due process claim, denied McKinney's allegations and interposed as an affirmative defense the failure of the count to state a claim for relief. Following discovery, the Board moved for summary judgment based on that affirmative defense. The district court denied the motion and the case proceeded to trial on McKinney's substantive due process claim. The jury returned a verdict for McKinney in the amount of $145,000. Thereafter, the Board moved for judgment notwithstanding the verdict and, on April 8, 1991, the district court granted the Board's motion, set aside the verdict, and entered judgment for the Board. It is from this judgment that McKinney appeals.
After oral argument, a panel of this court vacated the district court's judgment and reinstated the jury's verdict. McKinney v. Pate,
II.
A.
The Due Process Clause of the Fourteenth Amendment provides "nor shall any State deprive any person of life, liberty, or property, without due process of law." U.S. Const. amend. XIV, Sec. 1. The Supreme Court's interpretation of this clause explicates that the amendment provides two different kinds of constitutional protection: procedural due process and substantive due process. Cf. Zinermon v. Burch,
The substantive component of the Due Process Clause protects those rights that are "fundamental," that is, rights that are "implicit in the concept of ordered liberty," Palko v. Connecticut,
Although the Supreme Court has extended substantive due process protection to certain unenumerated rights, it has not extended Fourteenth Amendment coverage to a host of other areas. In fact,
the Court has always been reluctant to expand the concept of substantive due process because guideposts for responsible decisionmaking in this uncharted area are scarce and open-ended. The doctrine of judicial self-restraint requires us to exercise the utmost care whenever we are asked to break new ground in this field.
Collins, --- U.S. at ----,
In short, areas in which substantive rights are created only by state law (as is the case with tort law and employment law) are not subject to substantive due process protection under the Due Process Clause because "substantive due process rights are created only by the Constitution." Regents of Univ. of Mich. v. Ewing,
2.
Substantive due process rights differ from their procedural counterparts in a second, important fashion: the manner in which a violation of the right occurs. A violation of a substantive due process right, for instance, is complete when it occurs; hence, the availability vel non of an adequate post-deprivation state remedy is irrelevant. Because the right is "fundamental," no amount of process can justify its infringement.9 By contrast, a procedural due process violation is not complete "unless and until the State fails to provide due process." Zinermon,
3.
A final distinctive characteristic of substantive due process rights is the typical remedy awarded to one whose rights have been violated. In substantive due process cases, the claimant seeks compensatory damages for the value of the deprived right.10 In procedural due process cases, however, although the claimant may seek compensatory damages, the primary relief sought is equitable: for instance, in an employment case, the claimant typically seeks reinstatement and a properly conducted pre-termination hearing.11 These process-based remedies are unique to procedural due process rights and, because of the definition of a substantive due process right as one which may not be violated regardless of the process, may not be awarded to one claiming a substantive due process violation. Because the relief awarded to a person claiming a substantive due process violation primarily is monetary, not equitable, a substantive due process deprivation likely is of substantially greater monetary value than a procedural due process deprivation.12
B.
The Eleventh Circuit has considered a number of "substantive" due process employment termination cases in the last ten years.13 The first clear indication that we would recognize a substantive due process violation for the pretextual termination of a state employee came in Hearn v. City of Gainesville,
[T]he layoff was a phony arrangement, carried out for an improper motive, to deprive Hearn of his job. This states a substantive due process violation--deprivation of a property interest for an improper motive and by means that were pretextual, arbitrary and capricious, and, because unrelated to the proper reasons for layoff, without any rational basis.
Id. at 1332 (citing Nebbia v. New York,
A second panel visited the issue some six months later in Barnett v. Housing Auth. of Atlanta,
The rule was applied most recently in Adams v. Sewell,
The Eleventh Circuit law of "substantive" due process in the government employment setting is clear. "A violation of a public employee's right to substantive due process occurs when an employer deprives the employee of a property interest for an improper motive and by means that [are] pretextual, arbitrary and capricious, regardless of whether or not a hearing was held." Nolin v. Douglas County,
C.
Satisfaction of these requirements will not make out a substantive due process claim under the jurisprudence of the Supreme Court, however, because only procedural issues are implicated. Whether an individual complains that a state lacks constitutionally adequate procedures for termination of employees or asserts that his particular hearing was not fair and impartial, he has raised only procedural due process concerns.
The clearest demonstration of the error of this court's precedent results from an examination of Bishop v. Wood,
The truth or falsity of the City Manager's statement determines whether or not his decision to discharge the petitioner was correct or prudent, but neither enhances nor diminishes petitioner's claim that his constitutionally protected interest in liberty has been impaired.
. . . . .
Indeed, the impact on petitioner's constitutionally protected interest in liberty is no greater even if we assume that the City Manager deliberately lied. Such fact might conceivably provide the basis for a state-law claim, the validity of which would be entirely unaffected by our analysis of the federal constitutional question.
Id. at 349 and n. 13,
The federal court is not the appropriate forum in which to review the multitude of personnel decisions that are made daily by public agencies. We must accept the harsh fact that numerous individual mistakes are inevitable in the day-to-day administration of our affairs. The United States Constitution cannot feasibly be construed to require federal judicial review for every such error. In the absence of any claim that the public employer was motivated by a desire to curtail or to penalize the exercise of an employee's constitutionally protected rights, we must presume that official action was regular and, if erroneous, can best be corrected in other ways. The Due Process Clause of the Fourteenth Amendment is not a guarantee against incorrect or ill-advised personnel decisions.
Id. at 349-50,
A decade after Bishop, the Supreme Court addressed the issue of whether the Fourteenth Amendment provided protection to employees who did possess a property right in their positions (unlike the policeman in Bishop who did not possess such a property right). In Cleveland Bd. Of Educ. v. Loudermill,
When these cases are examined, it becomes evident that the law in this circuit diverges from Supreme Court precedent in three distinct and important ways. First, unlike our cases, Supreme Court precedent demonstrates that an employee with a property right in employment is protected only by the procedural component of the Due Process Clause, not its substantive component. Because employment rights are state-created rights and are not "fundamental" rights created by the Constitution, they do not enjoy substantive due process protection.
The second error in this circuit's law is that it allows a terminated employee to sue in federal court under section 1983 before the employee utilizes appropriate, available state remedial procedures. When a state procedure is inadequate, no procedural due process right has been violated unless and until the state fails to remedy that inadequacy. Zinermon,
Finally, this circuit's law provides an inappropriate remedy to pretextually terminated employees. As we state above, the appropriate remedy for a pretextual termination is not damages calculated on the employee's potential earnings for the rest of his or her working life, but rather procedural, equitable remedies: reinstatement and a directive that proper procedures be used in any future termination proceedings.
The Supreme Court's analysis clearly distinguishes between procedural and substantive due process rights, violations, and remedies. To date, however, our cases have confused these two categories and incorrectly placed the claims of pretextually terminated employees on the substantive due process side of the ledger. Today, however, we hold that, in non-legislative cases, only procedural due process claims are available to pretextually terminated employees. Thus, we conclude that our prior decisions, which granted pretextually terminated employees section 1983 causes of action premised on substantive due process violations, are contrary to Supreme Court jurisprudence; to the extent they are contrary to the holding of this opinion, they are overruled.15
III.
When this appropriate standard is applied to McKinney's allegations, we find that those allegations support only a procedural due process claim. In reaching this conclusion, we first note that McKinney styled Count I of his complaint "Substantive Due Process." Our responsibility, however, is to examine McKinney's cause of action for what it actually is, not for what McKinney would have it be. We therefore afford McKinney's denomination of the issue no weight.
What do deserve weight are the facts upon which McKinney builds his claim. In his complaint, McKinney contends that, "by merely 'going through the motions' of an ostensibly unbiased post-termination hearing in the course of [its] attempt[ ] to discharge McKinney without proper cause," the County arbitrarily and capriciously deprived McKinney of his employment; in so doing, McKinney asserts, the County violated McKinney's due process rights. McKinney does not deny that the County followed a facially adequate procedure; in fact, but for his allegations of bias, McKinney acknowledges that there were no failures of process. McKinney's only contentions are that the facially adequate procedure was biased against him and that the Board was preordained to find against him, regardless of the evidence. On its face, then, McKinney's allegation is procedural: the County failed to provide one of the elements of procedural due process--an unbiased decisionmaker.
Our conclusion that McKinney's claim implicates procedural--and not substantive--due process protection garners support from an application of the Supreme Court's due process standards. First, as we discuss above, employment rights are not absolute. See Roth,
Moreover, the appropriate forum for addressing McKinney's claim is not federal court but a Florida state court possessing the ability to remedy the alleged procedural defect; that forum might well have prevented a violation of McKinney's procedural due process rights and thereby obviated the need for this suit. Finally, the appropriate remedy in this case is not lost wages and benefits calculated on the basis of McKinney's remaining working life; rather proper remedies include reinstatement and the correction of any procedural defects in the means by which McKinney was terminated.
As a result, we must analyze McKinney's claims in terms of procedural due process considerations. Accord Burney v. Polk Community College,
IV.
Having determined that McKinney's claim raises procedural, not substantive, issues, our next task is to determine whether the procedure afforded McKinney satisfied constitutionally mandated due process minima.
A.
It is axiomatic that, in general, the Constitution requires that the state provide fair procedures and an impartial decisionmaker before infringing on a person's interest in life, liberty, or property. More specifically, the Supreme Court has explained that a "tenured employee is entitled to oral or written notice of the charges against him, an explanation of the employer's evidence, and an opportunity to present his side of the story" before a state or state agency may terminate an employee. Loudermill,
McKinney acknowledges that he received written notice of the charges against him; at the Board hearing, he also heard an explanation of the Board's evidence; finally, with the assistance of counsel, he had the opportunity to present his side of the story through witnesses, evidence, and argument. He thus received a pre-termination hearing and, with it, all the process due under Loudermill. Our task is to determine whether McKinney's allegation of bias demonstrates that he did not receive due process.
B.
1.
An allegation of bias may arise in either of two scenarios: in the first, the challenger learns of the decisionmaker's alleged bias prior to or during the proceeding; in the second, the challenger learns of the decisionmaker's alleged bias only after the proceeding has terminated. To address these mutually exclusive scenarios, courts provide distinct procedures that afford the challenger an opportunity to address the alleged bias as well as to remedy outcomes that are tainted by bias.
In the first scenario, that of the contemporaneously recognized bias, courts usually require that the challenger contemporaneously object to the bias. Thus, when faced with a supposedly biased venireperson in a criminal case,16 for instance, the defendant must object to the biased individual during voir dire, either by a challenge for cause or by a peremptory strike; if the defendant fails to object to the biased individual at this preliminary stage, the objection is deemed waived. Similarly, a challenger must object to a biased judge in a motion to recuse before trial or as soon as the alleged bias is discovered; again, the penalty for failing timely to object is waiver of the objection.
In the second scenario, the alleged bias is discovered after the proceeding has concluded; a contemporaneous objection therefore is impossible. Due process requires that the challenger have an opportunity to object to the alleged bias, and courts consequently have instituted procedures to address allegations of bias and to set aside bias-tainted outcomes. Typically, courts require that the challenger meet a threshold test of demonstrating harm or prejudice resulting from the alleged bias before they will reopen a closed case. See Lockett v. Blackburn,
2.
In both situations, due process is satisfied when the challenger has an opportunity to present his allegations and to demonstrate the alleged bias. A demonstration that the decisionmaker was biased, however, is not tantamount to a demonstration that there has been a denial of procedural due process. As we mention above, unlike substantive due process violations, procedural due process violations do not become complete "unless and until the state refuses to provide due process." Zinermon,
In Parratt (and its progeny, Hudson v. Palmer,
The precedent established by Parratt is unambiguous: even if McKinney suffered a procedural deprivation at the hands of a biased Board at his termination hearing, he has not suffered a violation of his procedural due process rights unless and until the State of Florida refuses to make available a means to remedy the deprivation. As any bias on the part of the Board was not sanctioned by the state and was the product of the intentional acts of the commissioners, under Parratt, only the state's refusal to provide a means to correct any error resulting from the bias would engender a procedural due process violation. It is to an examination of this state remedy--and a determination of whether it satisfies due process--that we now turn.
3.
In this case, McKinney failed to take advantage of any state remedies, opting instead to pursue his claim in federal court.18 In his en banc brief, McKinney asserts that the state remedy--review by Florida courts--is insufficient, largely because the statute of limitations for certiorari petitions of termination cases is significantly shorter than that for torts. McKinney also states that the state court procedure is deficient because the Florida courts' power to review is limited to the record before the Board. We disagree with McKinney's conclusion that Florida's process is inadequate.
First, Florida courts indeed do have the power to review employment termination cases. Inherent in that power to review is the power to remedy deficiencies and to cure violations of due process. Therefore, the Florida courts have the authority to order the relief to which McKinney claims to be entitled--a new hearing conducted by a fair tribunal. See, e.g., Elder v. Highlands County Bd. of County Comm'rs,
Second, the scope of the Florida courts' review encompasses the claim McKinney brought in federal court--that he was denied due process because of a partial decisionmaker. The Florida circuit courts, on certiorari review, possess broad powers of review:
Where a party is entitled as a matter of right to seek review in the circuit court ..., the circuit court must determine whether procedural due process is accorded ... and whether the administrative findings and judgment are supported by competent substantial evidence.
City of Deerfield Beach v. Vaillant,
Finally, McKinney's state remedy is adequate. The Supreme Court held in Parratt that the state's remedial procedure need not provide all relief available under section 1983; as long as the remedy "could have fully compensated the [employee] for the property loss he suffered," Parratt,
We therefore conclude that McKinney's state remedy was capable of providing McKinney with all the relief warranted. Even if McKinney's bias allegations are true, the presence of a satisfactory state remedy mandates that we find that no procedural due process violation occurred.20
C.
Creating a substantive due process right in pretextual termination cases has two detrimental consequences. First, our past substantive due process jurisprudence provides terminated employees with more protection than criminal defendants whose liberty--and sometimes whose life--is at stake. As we mention above, criminal defendants must make contemporaneous objections to suspected bias on the part of the judge or a member of the jury; otherwise, the objection is considered waived. By allowing pretextually terminated employees to bring substantive due process cases, however, we encourage employees to sandbag the decisionmaker by pocketing their objections and then using them as part of a section 1983 case for damages. This policy also is wasteful of judicial resources (as objections which could be resolved easily before the original decisionmaker promulgate costly and unnecessary litigation and appeals in federal court); this is particularly true since the federal courts often will possess an incomplete record on which to resolve section 1983 cases specifically because the employee failed to raise objections before the decisionmaker and thereby create the necessary factual record. It is apparent that a policy which affords terminated employees greater procedural protection than that afforded criminal--even capital--defendants is misguided.
The second detrimental side effect of our past policy concerns the operation of local governments. By subjecting local officials to indiscriminate blindsiding by their employees (as well as to Monday morning quarterbacking by federal courts), we encourage them not to fire anyone for fear of the resulting federal suit. Our policy also deters individuals from serving in local government, since they know that their decisions--as well as their lives--may be subjected to indiscriminate post hoc searches for impermissible motives. In addition, subordinates can use our policy, which was intended merely to shield employees from their employers' improper actions, as a sword; threatened substantive due process suits for damages all too readily may force employers to retain unsuitable employees. In short, our policy has the effect of frustrating local government employers in their attempts to remove unsatisfactory employees.
D.
In this case, McKinney's allegations state only a procedural--not a substantive--due process claim. Even if McKinney's allegations are taken to be true, the process due McKinney under Loudermill and Parratt was limited to an opportunity to present his case before the Board at a pre-termination hearing and the presence of adequate post-termination remedies. McKinney availed himself of the first opportunity. "The fact that [McKinney] failed to avail himself of the full procedures provided by state law [i.e., the post-termination remedies] does not constitute a sign of their inadequacy." Kremer v. Chemical Constr. Corp.,
V.
We are left with one final task: delimiting the effect of today's holding. The County urges that we apply our decision retroactively, that is, to this case and to all other cases currently pending in the courts. McKinney urges that we announce our decision prospectively, that is, only to cases brought after this date; in the alternative, McKinney asks that we apply our holding in a selectively prospective fashion, thus excepting McKinney from its scope.22
The Supreme Court has established a three-factor test for determining whether to apply a newly announced non-criminal decision retroactively. Chevron Oil Co. v. Huson,
The first reason for believing that Chevron Oil no longer governs retroactivity questions is that the Supreme Court, in Griffith v. Kentucky,
Twice since Griffith, the Court has addressed retroactivity in non-criminal cases. See Harper v. Virginia Dep't of Taxation, --- U.S. ----, ---- - ----,
The first Chevron Oil factor clearly is satisfied: Our holding today is a new rule that overrules our precedent. In addition, if we accept McKinney's allegations as true, the third factor may also be satisfied: McKinney's opportunity to litigate his grievance will be diminished by our holding; applying the old rule thus avoids an alleged inequity to him.23
Regardless of the strength of these two factors, however, McKinney's argument fails on balance24 because of the second Chevron Oil factor: the purpose of the interpreted law. Today, we interpret the substantive component of the Due Process Clause. Our holding, consistent with Supreme Court precedent, is that the Clause does not provide a remedy in cases like McKinney's; rather, the Clause is designed to prompt state and local government to afford citizens due process in, among other situations, employment termination cases. Perpetuating the fiction that the Clause provides a remedy impedes this goal by encouraging claimants to bring premature suits in federal court, thereby circumventing established state procedures specifically designed to provide them with constitutionally required due process and removing all incentive for states to provide remedial procedures. Even though McKinney satisfies the first Chevron Oil factor and may satisfy the third, therefore, the fact that the Due Process Clause does not provide him with a source of relief mandates that we not create a fiction that it does. Our holding must be applied retroactively.
VI.
In this case, McKinney sought extraordinary relief: McKinney wanted the federal courts to engage in an after-the-fact examination of the motives of the individuals who terminated him. Ironically, even in death penalty cases, where the anticipated deprivation of life is of significantly greater magnitude than the deprivation claimed by McKinney, we do not allow the convicted criminal to raise after-the-fact objections to the motives of the judge and jury that convicted him. In this case, McKinney could have availed himself of state court procedures that not only could have provided him with adequate relief, but also would have satisfied his interest in due process. McKinney chose not to utilize those procedures, however; we therefore hold that there was no due process violation and, as a result, no section 1983 claim. The district court's order of judgment notwithstanding the verdict is AFFIRMED.
IT IS SO ORDERED.
HATCHETT, Circuit Judge, specially concurring:
I join in the judgment holding that McKinney did not present a substantive due process claim according to Supreme Court precedent. I write specially to emphasize the fact that we are not holding that one who suffers a due process violation must first seek relief in state courts, or follow state administrative procedures before bringing a lawsuit in the federal courts. The Supreme Court rejected such a contention over twelve years ago in Patsy v. Board of Regents,
EDMONDSON, Circuit Judge, concurring in judgment:
In its application, substantive due process is a puzzling concept. I agree that an allegation of injury resulting from a biased decision maker in a case like this one presents not a substantive due process claim, but a procedural due process claim. I also agree that McKinney is bound by this conclusion.
But today's court opinion speaks of many other things that seem unnecessary to deciding this case. Some of these other things may be important. I would prefer to discuss them when doing so is essential to deciding a concrete case.
I concur in the judgment.
Notes
Senior U.S. Circuit Judge Fay, who was a member of the en banc court which heard oral argument in this case, took senior status on January 19, 1994, and therefore did not participate in this decision
Judge Barkett became a member of the court after October 19, 1993, when this case was argued and taken under submission. She has elected not to participate in this decision.
McKinney v. Pate,
We have jurisdiction over this appeal pursuant to 28 U.S.C. Sec. 1291 (1988)
Because this appeal challenges the district court's entry of judgment notwithstanding the verdict, we view the evidence set before the jury in the light most favorable to appellant McKinney
The Notice alleged that McKinney had failed to provide direction to his department and that, as a result, the performance of the Building Division staff was deficient. Specifically, the Board cited the staff's poor productivity and lack of enthusiasm for its work, its negligence in answering phones, and its wrongful issuance of permits. In addition, the Board's reasons included statements concerning the poor performance of building inspectors and assertions that McKinney had exceeded limits placed on his budget and his authority. Finally, the document mentioned--as an "incidental"--that "Mr. McKinney used very poor judgement [sic] in the building of his house" by building a home not approved by the Plans Examiner; however, the Board stated, "except for poor judgement [sic], this [charge] is not included as part of [the Board's] disciplinary procedure."
Count two, against Pate and Shannin, was a pendant state claim under Florida law for wrongful injury to McKinney's employment. The district court disposed of this count on defendants' motion for summary judgment; it is not before us on appeal. Pate and Shannin were defendants--along with the Board--to the first count of McKinney's complaint as well; once the court granted summary judgment in favor of Pate and Shannin on count two, however, McKinney voluntarily dismissed them from the first count and thus from the case. This action left the Board as the only defendant in the case
McKinney also sought equitable relief in the form of reinstatement to his position with back-pay and benefits. McKinney did not pursue this claim in the district court (choosing instead to recover compensation at the hands of the jury for his claimed injuries); accordingly, his claim for equitable relief is not before us
An alternate substantive due process test finds a violation if the questioned governmental action "shocks the conscience" of federal judges. Cf. Rochin v. California,
In Rochin, a convicted defendant claimed that his right to a fair trial was violated because improperly seized evidence--evidence seized in a fashion that would "shock the conscience"--was admitted at trial against him. The Court held that the evidence could not be admitted; the Court therefore reversed the conviction. Thus, Rochin in no way created a substantive right on which claimants might claim civil damages.
Incorporation, which we consider to be a subset of the substantive component of the Due Process Clause, also may be considered a third, distinct constitutional protection supplementing procedural due process and substantive due process. When the Supreme Court has ruled that a right based in the Bill of Rights should be incorporated against the states, however, the Court effectively has determined that the questioned right is, in Justice Cardozo's famous phrase, "implicit in the concept of ordered liberty." Palko,
In any event, we quickly can dispose of any notion that McKinney's claim is based on an incorporated right. McKinney asserted no such right in the district court; in addition, the facts indicate that no freedom protected by the Bill of Rights is implicated.
When discussing substantive due process protection in this opinion, it is crucial to note the distinction between "legislative" acts and "non-legislative" or "executive" acts, see Greenholtz v. Inmates of Nebraska Penal and Correctional Complex,
Executive acts characteristically apply to a limited number of persons (and often to only one person); executive acts typically arise from the ministerial or administrative activities of members of the executive branch. The most common examples are employment terminations, e.g., Roth,
Legislative acts, on the other hand, generally apply to a larger segment of--if not all of--society; laws and broad-ranging executive regulations are the most common examples. The analysis, and the substantive/procedural distinction discussed above, that is appropriate for executive acts is inappropriate for legislative acts. For instance, only when addressing legislative acts has the Supreme Court mandated that states must demonstrate that they are violating private interests only as necessary to promote state interests. See, e.g., Foucha v. Louisiana, --- U.S. ----, ----,
The Supreme Court's decision in Harrah Ind. School Dist. v. Martin,
The substantive due process deprivation therefore may be likened to a Fifth Amendment "taking." In the typical takings case, the government condemns private property and must compensate the property's owner for the value of the property taken. In a substantive due process deprivation, by comparison, the government has deprived a person of a property or liberty interest and must compensate the interest's owner for the value of the interest taken. In employment cases, if a substantive due process claim lies, the value is measured in terms of lost wages and benefits (both past and future)
Of course, if the claimant elects not to seek a remedial hearing, no compensatory damages may be awarded either
In this case, treating McKinney's loss of employment as a deprivation of a substantive, rather than a procedural, due process right resulted in a substantial monetary award--$145,000; McKinney recovered the wages lost from the date of his termination to the date of his anticipated retirement (in conformance with the district court's instruction to the jury). Had the loss been treated as a deprivation of procedural due process, however, McKinney's monetary recovery would have been limited to the wages lost from the time of his termination through the time of the court's judgment. That recovery could have been supplemented, however, with equitable relief (such as reinstatement)
We have resolved other, similar, cases through procedural reasoning, asking whether the employee had a state-created entitlement to the job, and, if so, whether the state had provided constitutionally adequate procedures before termination. See, e.g., Lee v. Hutson,
In teacher termination cases involving allegations of violations of both procedural and substantive due process, we have inquired "whether the procedures followed by the school authorities comported with due process requirements, and, if so, whether the action taken is supported by substantial evidence." Holley v. Seminole County Sch. Dist.,
The latent confusion between legislative and non-legislative (or executive) acts, see supra note 9, is made manifest in Hearn. In that case, where a terminated employee challenged an executive act, we cited Nebbia, where a legislative act (to wit, a law) was at issue. It is imperative that a stricter segregation of these two distinct case-categories be maintained
As the text indicates, we are not using this case to eviscerate all of our substantive due process precedent. As we discuss above, there continue to be rights that a state may not remove, regardless of the process, as well as actions that can not be countenanced, regardless of the appropriateness of the process. For instance, actions such as those in Gilmere,
It cannot be disputed that criminal defendants often face losses of liberty significantly greater than the loss of employment rights McKinney claims
In Bonner v. City of Prichard,
Significantly, McKinney did not allege in his complaint that the state procedures were inadequate
In analyzing the scope of review adopted by Florida circuit courts (the trial courts of general jurisdiction), the Long court distinguished between county court judgments, which are "presumed to have been correctly reached in an impartial and detached judicial forum," and administrative actions, which are "entitled to none of the deference due initial judicial action[s]." Id. at 942 (emphasis added). The court also noted that separation of powers principles mandated that the judicial branch conduct a full review of executive action in order "to prevent arbitrary fact-finding and actions by the executive." Id. Given this heightened concern on the part of the Florida courts for ensuring that the executive branch accords an employee due process, McKinney's plaint that he is without a remedy in the Florida courts rings hollow
Judge Hatchett, citing Patsy v. Board of Regents,
In Patsy, the Supreme Court held that section 1983 plaintiffs were not required to avail themselves of available state remedies before suing in federal court; the Court's holding presumed the presence of a valid constitutional claim. In this case, however, McKinney cannot state a valid constitutional claim under Parratt and Bishop because Florida provides an adequate process to remedy McKinney's alleged injury. McKinney's case fails, therefore, not for want of exhaustion; indeed, exhaustion is irrelevant to our decision and finds no mention in the opinion. Rather, McKinney's case fails because he fails to state a procedural due process claim under Parratt and its progeny that would give rise to a section 1983 suit.
One might argue that the doctrine of stare decisis mandates that we continue to follow our precedent and reinstate the jury award, even though it is not consistent with the precedent set by the Supreme Court, until the Supreme Court addresses the issue. As stare decisis is a hallmark of our judicial system, this argument is not without appeal
Stare decisis, however, "is not an inexorable command.... Indeed, when [a] Court reexamines a prior holding, its judgment is customarily informed by a series of prudential and pragmatic considerations designed to test the consistency of overruling a prior decision with the ideal of the rule of law, and to gauge the respective costs of reaffirming and overruling a prior case." Casey, --- U.S. at ----,
Since we have determined that our precedent is incorrect, we must also determine what weight to give to that albeit errant precedent. It must be recalled that this is the first time this court sitting en banc has addressed this issue; thus, the implications of stare decisis are less weighty than if we were overturning a precedent established by the court en banc.
Since we find that granting a substantive due process cause of action to individuals in McKinney's position produces several disfavored consequences, we conclude that the pragmatic and prudential considerations supporting overruling outweigh the considerations that support the doctrine of stare decisis.
For a more detailed examination of the three styles of application (retroactive, prospective, and selectively prospective), see James B. Beam Distilling Co. v. Georgia,
Refusing to apply the new rule retroactively, as McKinney desires, would also produce inequities--for defendants in other pending cases and all other state and local governmental bodies that have discharged employees and still may be subject to suit
The Supreme Court has not indicated whether the party seeking prospective-only application satisfies the Chevron Oil test only after meeting all three factors or, rather, after demonstrating that the factors supporting prospectivity outweigh those supporting retroactivity. No panel of this court has conclusively decided the issue, either
Both courts, however, have used language suggesting that a balancing approach is appropriate. For instance, in Beam, five justices signed on to opinions using balancing language; Justice O'Connor's dissent was strongest, stating that the second Chevron Oil factor must be "weigh[ed] in the balance" against the first and third factors. 501 U.S. at ----,
Because McKinney's case fails under either standard, we do not today adopt either standard for Chevron Oil jurisprudence in this circuit.
