Lead Opinion
Vacated and remanded in part, affirmed in part by published opinion. Judge PHILLIPS wrote the majority opinion in which Judge WILLIAMS joined. Judge WIDENER wrote a concurring in part and dissenting in part opinion.
OPINION
William Dionne, a former Baltimore City employee, appeals the district court’s dismissal by summary judgment of his claims under 42 U.S.C. § 1983. Dionne alleged that the City and his immediate supervisor violated his procedural due process rights in two instances: first, by firing him without pretermination notice and hearing, and second, by then reinstating him to a position that was immediately abolished by the City. Because we conclude that, under the federal common law of claim preclusion, an unreviewed state administrative decision which had found in favor of Dionne on his substantive claim of illegal termination does not preclude his subsequent § 1988 claim challenging the denial of federal procedural due process in the course of that termination, we vacate that part of the district court’s grant of summary judgment which dismissed the § 1983 claim and remand it for further proceedings. ' Because we conclude, however, that Dionne had no proteetible property interest in the continued existence of the job position to which he was reinstated, we affirm the dismissal by summary judgment of his § 1983 claim based upon its abolishment. •
I
In 1985, the City of Baltimore hired William Dionne as Chief of Media Technical Services in the Mayor’s Office of Cable and Communications (“MOCC”). Joyce Jefferson-Daniels (“Daniels”) became MOCC Director in 1990. Daniels was Dionne’s supervisor during all events relevant to this appeal, those events being (1) that Dionne was fired on October 11, 1990, and later reinstated on May 30,1991, and (2) that as the result of a budgetary process which began in August of 1990, the job position held by Dionne and to which he was reinstated was abolished as of July 1, 1991. Because these events form the basis of Dionne’s claims,, we describe them in some detail.
On October 11,1990, Daniels sent Dionne a letter terminating his employment effective that same day for allegedly violating Baltimore City Service Commission Rule 56.
Upon expiration of the thirty-day period, Dionne wrote the Commission urging it to make sure the City complied with its ruling. The City took no action, however, and on May 24,1991, Dionne filed a complaint in the Circuit Court for Baltimore City seeking a Writ of Mandamus ordering the City and Daniels to comply with the Commission’s ruling.
Daniels was served with the summons and complaint on May 29,1991. Later that same day, she sent Dionne a letter notifying him that he would be reinstated as of May 30, 1991, and would receive his back pay and lost benefits.
The process leading to the abolishment of his position actually began about one year earlier. In response to an August 1990 directive concerning budgetary constraints in the upcoming 1991-1992 fiscal year, Daniels recommended to the Director of Finance that two positions in her agency be abolished— Dionne’s position and a vacant contractual position.
On June 25, 1991, Dionne filed this § 1983 action against the Mayor and City Council of Baltimore
The district court dismissed all the claims by summary judgment, finding that Dionne had waived his right to bring a § 1983 claim based on the October 1990 termination under the doctrine of election of remedies, and that legislative immunity prevented a § 1983
This appeal followed.
We review in turn whether Dionne’s termination in October 1990 and the abolishment of his job in June of 1991 are actionable under § 1983. We do not consider any claim under § 1983 of retaliation by the defendants in violation of Dionne’s First Amendment rights as counsel for Dionne conceded that issue before this court.
II
The district court concluded that because of Dionne’s earlier prosecution of his state administrative claims, the City and Daniels could not be held liable for the alleged constitutional violation under § 1983. “In successfully pursuing the Commission’s post-termination administrative remedies, ... Dionne effectively waived his opportunity to seek additional damages from the Defendants.” Dionne v. Mayor & City Council of Baltimore, No. 91-1770,
We hold, initially, that the issue presented is not properly addressed as one of election of remedies, but as one of res judica-ta. The Ninth Circuit, sitting en bane, recently so held, see Haphey v. Linn County,
We therefore address the dispositive issue as one of claim preclusion: whether the unre-viewed state
The Full Faith and Credit Statute, 28 U.S.C. § 1738, obligates federal courts to apply state preclusion rules to determine whether a prior state court judgment has either issue or claim preclusive effect in a § 1983 action. Allen v. McCurry,
University of Tennessee v. Elliott,
Elliott identified as a principal concern of issue preclusion (or collateral estoppel) that of enforcing repose, which includes both the idea of “avoiding the cost and vexation of repetitive litigation” and “conserving judicial resources,” and concluded that a rule of issue preclusion furthered both policies. Id. at 798-99,
Many of the traditional principles of claim preclusion are the same as those of issue preclusion. Both doctrines “relieve parties of the cost and vexation of multiple lawsuits, conserve judicial resources, and, by preventing inconsistent decisions, encourage reliance on adjudication.” Allen,
Precisely because of this drastic consequence, a critical predicate for applying claim preclusion is that the claimant shall have had a fair opportunity to advance all its “same transaction” claims in a single unitary proceeding. Restatement (Second) of Judgments § 26 cmt. c; see also 18 Wright, Miller & Cooper, supra, § 4412, at 93-94 (“It is clear enough that a litigant should not be penalized for failing to seek unified disposition of matters that could not have been combined in a single proceeding_”). While a state can of course provide as wide a scope as it desires for matters that can be determined in particular administrative proceedings, thereby insuring a corresponding claim preclusion scope for its adjudications, see Restatement (Second) of Judgments § 83(1); see also Astoria Fed. Sav. & Loan Ass’n,
Nor would the state court system have provided an alternative forum in which all the theories and remedies sought in the two successive actions could have been fairly prosecuted in a regular civil action. Several barriers to their unitary adjudication in such a forum would have existed. The § 1983 claim, of course, could have been brought in a state court, free of any administrative exhaustion requirement, see Felder v. Casey,
Under these circumstances, a critical predicate for claim preclusion under general claim preclusion principles — that the jurisdiction whose prior adjudication is asserted as pre-clusive shall have provided at least one forum for the unitary adjudication of all the theories of recovery and remedies at issue — is not present. Cf. Davenport v. North Carolina Dep’t of Transp.,
Next, neither private party costs nor the burden of the federal courts would be eased by a rule of claim preclusion. Because plaintiffs might well choose to bypass the administrative agency and go directly to federal or state court with a § 1983 claim rather than forfeit the right to pursue that claim, the cost of litigation and the burden on the federal court system could well rise, instead of fall, if claim preclusion applied.- Plaintiffs would be discouraged from pursuing the generally cheaper and more efficient route of seeking an administrative remedy in order to preserve their federal rights. See Frazier v. King,
Finally, nothing in the legislative history of § 1983 suggests that state administrative proceedings should in these circumstances be afforded claim preclusive effect. Although, as the Elliott court observed, the enactment of the civil rights statutes predates the development of administrative agencies, the court also found “no reason to suppose that Congress ... wished to foreclose the adaptation of traditional principles of preclusion to ... administrative adjudication[s].”
There is also no justification for a rule requiring federal courts to apply state claim preclusion law to determine the preclusive effect of the unreviewed agency decision. The policies underlying the Full Faith and Credit Clause, identified in Elliott, would not be served by such a rule.
We therefore hold, applying federal common law preclusion principles, that the unre-viewed state administrative decision at issue here has no claim preclusive effect in the subsequent § 1983 action, despite arising out of the same transaction or series of transactions. A federal rule applying claim preclusion would not be consistent with traditional claim preclusion principles. Nor would the values underlying the Full Faith and Credit Clause be served by a federal rule requiring application of state claim preclusion law.
Ill
Dionne’s challenge to the dismissal of a second claim under § 1983 based on the June 1991 abolishment of his job is without merit. He argues that by reinstating him to a job that was essentially already non-existent, his due process rights were violated. The district court properly dismissed this claim. Dionne enjoyed no property right in the continued existence of his job and consequently his position could be abolished by the legislature without notice and a hearing. See Goldsmith v. Mayor & City Council of Baltimore,
IV
We vacate the district court’s dismissal by summary judgment of Dionne’s § 1983 claim of a denial of procedural due process in connection with his termination in October 1990 and remand that claim for further proceedings. We affirm the district court’s dismissal by summary judgment of Dionne’s § 1983 claims of procedural due process and First Amendment violations in connection with the June 1991 job abolishment. We vacate that portion of the district court’s judgment which dismissed the pendent state law claims, see note 7 supra, and remand those for reconsideration in light of this opinion.
SO ORDERED.
Notes
. The Baltimore City Service Commission is an administrative body created by the Baltimore City Charter. Among other things, the Commission promulgates rules governing the employment, discipline, termination, and lay-off of employees with civil service status, and oversees compliance with those rules.
Rule 56, section (2)(o) provides that an employee may be discharged if he "has engaged in fraud, theft, misrepresentation of work performance, misappropriation of funds, unauthorized use of City property, obstruction of funds, unauthorized use of City properly, obstruction of an official investigation or any other act of dishonesty.” Baltimore City Civil Serv. Comm’n Rule 56(2)(o).
. Dionne voluntarily dismissed his complaint for Writ of Mandamus on June 17, 1991.
. Dionne did not actually work until the last day of fiscal year 1990-1991 because of accrued credit for sick and leave days.
. See Baker v. Mayor & City Council of Baltimore,
. The Mayor and City Council being sued in their official capacities, the defendant is actually the City of Baltimore. Baker,
. Dionne also alleged pendent state-law claims for "wrongful discharge" and "intentional infliction of emotional distress” in connection with the two incidents upon which his § 1983 claims were based.
. Though the judgment in terms' dismissed all the claims, the court's decision made no specific mention of the pendent state law claims nor the basis for their dismissal. See Part IV.
. Though in literal terms the concession in colloquy with the court ran only to the claim against the City, we construe it in context as running also to the First Amendment claim against Daniels. In view. of the concession, we need not address the issue of legislative immunity upon which the district court based its dismissal of this particular claim, and reserve it for another day.
. For purposes of this appeal, it makes no difference whether the agency was that of a city or state.
. See also Frazier v. King,
. The Restatement (Second) of Judgments' position is consistent with Elliott: If the administrative adjudication has the essential elements of an adjudication, and preclusion is consistent with the scheme of remedies, then
a valid and final adjudicative determination by an administrative tribunal has the same effects under the rules of res judicata, subject to the same exceptions and qualifications, as a judgment of a court.
Restatement (Second) of Judgments § 83(1) (1982).
. The principles encompassed by the Full Faith and Credit Clause and those of claim preclusion overlap to a great extent. Elliott recognized as "the major purpose of the Full Faith and Credit Clause ... to act as a nationally unifying force.”
. The Civil Service Commission reinstated Dionne and awarded back pay and lost benefits. In the § 1983 action, the defendants are entitled to protection against duplication of these awards.
. Though the state rule of claim preclusion is not directly material in view of our holding that federal common law should supply the rule for this case, we observe that Maryland apparently would apply the same general rule of claim preclusion in comparable situations. See Esslinger v. Baltimore City, Maryland,
.Of course, if Dionne were to prevail on his remanded claim of a denial of procedural due process in connection with his October 1990 termination, he is free to attempt proof that any damages he suffered from the job abolishment were causally linked to the earlier violation of rights. We express no opinion on the merits of any such attempt made.
Concurrence Opinion
concurring in part and dissenting in part:
I concur in the body of Part III of the majority opinion, which holds that the district court’s dismissal of Dionne’s second section 1983 claim was proper because he did not have a property interest in the continued existence of his job. Having said that, I emphasize that I do not agree with and dissent from footnote 15 to Part III of the majority opinion. That footnote, purely dicta, suggests to the district court an avenue for it to find damages for violation of a cause
I do not agree, moreover, that Dionne should not be barred from seeking additional remedies in federal district court for his initial termination. I therefore respectfully dissent from Part II of the majority opinion and, as well, from a significant part of the result.
The majority states that a state-court section 1988 claim “could conceivably, but not necessarily, have provided all the relief available in the state’s administrative proceeding.” Maj. op. at 683. I differ with this statement only in that I believe Dionne could certainly have received all the remedies provided at the administrative proceeding, reinstatement and backpay, in a state-court section 1983 action. See, e.g., Maryland National Capital Park & Planning Comm’n v. Crawford,
I believe that the doctrine of election of remedies should be invoked to -avoid just such scenarios' as the present litigation presents.
Although it is true that the section 1983 claim cannot be considered in the state administrative proceeding because of the limited jurisdiction of the Civil Service Commission, and that the statute of limitations provided for such actions is very short, all of which might have the effect of forcing aggrieved employees to bypass the administrative proceeding in favor of full recovery in federal or state court, this should be of no consequence.
The majority apparently finds it significant that Dionne could not have recovered on theories of both federal due process and state wrongful termination in the state-court proceeding, because the state court would have dismissed the latter claim for failure to exhaust administrative remedies. See maj. op. at 683. I note that it is not at all clear that a Maryland court would be required to dismiss such claims for failure to exhaust, since “[i]t is now clearly established that a plaintiff suing under 42 U.S.C. § 1983 ... need not exhaust his administrative remedies prior to bringing his § 1983 action,” Esslinger,
Effectively, what Dionne has done here is to choose from among several options, any one of which would have satisfactorily provided him "with restitution for his injury (although some admittedly better than others), that which might most quickly and inexpensively afford him some amount of recompense. If his administrative grievance was unsuccessful, he would lose nothing, for he could simply bring a claim in state or federal court; as the majority argues, the Commission’s determination apparently would not be given claim-preclusive effect in either forum. But see supra note 2. If he was successful in the administrative proceeding, however, as was the case here, he could then come into federal court wielding the sword of issue preclusion against the defendants, see Hall v. Marion Sch. Dist. No. 2,
Quite simply, I do not believe that this is the sort of purpose for which the federal judiciary should be used. It is not, and could not be, claimed that the State of Maryland provides an inadequate forum or remedy for the injury suffered by Dionne, as was the case in the Title VII cases relied on by the Supreme Court in Alexander v. Gardner-Denver,
I agree with the Ninth Circuit panel in Haphey v. Linn County that Dionne “chose to pursue a remedy through the administrative process when ... [he] could have brought an action directly in federal court under section 1983,”
I would therefore affirm the judgment of the district court granting summary judgment to appellees.
. The several variations on the doctrine of election of remedies were analyzed by the Ninth Circuit in Oubichon v. North American Rockwell Corp.,
In the context of a section 1983 action following a state administrative wrongful-termination decision, these modem election-of-remedies concerns cannot be disregarded. Although the majority circumscribes its opinion to ensure against a double recovery in this case, see maj. op. at 684 — 85 & n. 13, it does not address the piecemeal nature of the litigation or the unfairness to defendants, which are undeniable. Moreover, it -is not relevant in this case whether Congress enacted section 1983 “at least in part, because [state administrative and judicial remedies] had proved inadequate to protect employees from [wrongful termination],”
. As the majority notes, see maj. op. at 684-85 & n. 14, Dionne would probably but not necessarily be permitted to bring suit for additional remedies in the Maryland state courts after following the administrative procedure. See Esslinger v. Baltimore City,
Thus, I am not certain that the Maryland courts would find Dionne’s situation analogous to Esslinger’s and therefore deny preclusive effect to Dionne's administrative award. In any event, even if the State of Maryland would not preclude Dionne’s resort to state court to augment his administrative recovery, the Maryland courts cannot create jurisdiction in the federal courts where it does not otherwise exist. Thus, the fact that the State of Maryland might permit the inefficiency and burden of such piecemeal litigation cannot control our decision whether to do the same.
. As the majority states, "a state can of course provide as wide a scope as it desires for matters that can be determined in particular administrative proceedings." Maj. op. at 683. Whether the State has done so in a manner that would repel potential claimants is within that State’s discretion, but the federal courts should not be compelled by any shortcoming of state administrative procedures to hear piecemeal cases that could have been decided more efficiently and cohesively in one proceeding had the plaintiff chosen to do so. This is all the more apparent in the case where, as here, the State has provided an alternate forum, the state courts, for recovering all that Dionne was owed.
The majority expresses concern that precluding section 1983 litigation following state administrative determinations might result in additional costs and burdens on the federal courts, because litigants might be motivated to avoid the administrative proceeding in fávor of state or federal court. See maj. op. at 684. I note that it will have the same effect on state courts, which should cause States to rethink and expand the jurisdiction of their administrative agencies in order to avoid these problems. Regardless of the effect the federal courts choose to give to them, limited administrative decisions will invariably result in unnecessary burdens, whether on litigants in the form of multiple adjudications and piecemeal litigation or on the state and federal courts because the administrative proceeding will be bypassed as unhelpful. In the light of this, I see no reason not to provide an incentive for the States to structure their administrative proceedings efficiently, rather than to condone any inefficiency of such proceedings by allowing the federal courts to be used to augment them.
