Federal Circuits, 6th Cir. (May 18, 1994)
Docket number: 93-5291
Permanent Link:
http://vlex.com/vid/carmen-finn-bettie-puckett-shadko-butler-36097477
Id. vLex: VLEX-36097477
Click here to download this article in graphic format (Acrobat Reader)

U.S. Supreme Court - Matsushita Elec. Industrial Co. v. Zenith Radio Corp., 475 U.S. 574 (1986)
U.S. Supreme Court - Bishop v. Wood, 426 U.S. 341 (1976)
U.S. Supreme Court - Board of Regents of State Colleges v. Roth, 408 U.S. 564 (1972)
U.S. Supreme Court - Perry v. Sindermann, 408 U.S. 593 (1972)
U.S. Court of Appeals for the 6th Cir. - Beech v. Fuller (6th Cir. 2006)
U.S. Court of Appeals for the 6th Cir. - Feterle v. Chowdhury (6th Cir. 2005)
U.S. Court of Appeals for the 6th Cir. - Stringfield v. Graham (6th Cir. 2007)
U.S. Court of Appeals for the 6th Cir. - International Union, United Automobile, Aerospace & Agricultural Implement Workers of America, Local 737; Martha Poston; Virginia Ligon; Sue Doss; Brenda Maley; Glynda Johnson; Tamala Lavender; Lucy Pinson; Janice Weatherly; Phyllis Law; Diane Armonat; and Mary Peoples, Plaintiffs-Appellants, v. Auto Glass Employees Federal Credit Union; National Credit Union Administration Board; and H. Allen Carver, Defendants-Appellees., 72 F.3d 1243 (6th Cir. 1996) United Automobile, Aerospace & Agricultural Implement Workers of America, Local 737; Martha Poston; Virginia Ligon; Sue Doss; Brenda Maley; Glynda Johnson; Tamala Lavender; Lucy Pinson; Janice Weatherly; Phyllis Law; Diane Armonat; and Mary Peoples, Plaintiffs-Appellants, v. Auto Glass Employees Federal Credit Union; National Credit Union Administration Board; and H. Allen Carver, Defendants-Appellees.
David M. Sullivan, Memphis, TN (briefed), for plaintiff-appellant.
Ronald C. Leadbetter, Assoc. Gen. Counsel (briefed), Beauchamp E. Brogan (briefed), University of Tennessee Knoxville, TN, for defendants-appellees.Before: MERRITT, Chief Judge; and GUY and BOGGS, Circuit Judges.RALPH B. GUY, Jr., Circuit Judge.Plaintiff, Donald V. Gregory, appeals the district court's grant of summary judgment in favor of six individual defendants,1 sued individually and in their official capacities, and the University of Tennessee at Memphis. Pursuant to 42 U.S.C. Secs . 1981, 1983, 1985, and 1986, Tenn.Code Ann. Sec. 4-21-101, et seq., and Tenn.Code Ann. Sec. 47-50-109, Gregory claims that his constitutionally recognized property right in continued employment as a police lieutenant in the Office of Security Affairs at the University of Tennessee was violated when he was discharged. For the following reasons, we affirm.I.On June 27, 1983, Gregory was hired by the University of Tennessee as a police officer in the Office of Security Affairs. He was employed without a written contract and for an unspecified period of time. The University policy pertaining to his employment states:Faculty are employed for a term of one year or other specified period of time subject to renewal in accordance with the policies and procedures set forth in the applicable Faculty Handbook. All other employees are not employed for a specified period of time but, instead, serve on an "at will" basis subject to the policies and procedures set forth in the Personnel Policies and Procedures Manual.By letter of January 27, 1989, Warren J. Shadko, Assistant Vice Chancellor for Security Affairs, advised Gregory that his employment as a University police officer would be terminated effective that day. There was no notice or pre-termination hearing, and the letter set forth no reason for the termination. That same day, Gregory delivered a written request for a hearing to Mary Finn, Personnel Services Manager/Human Resources. Finn informed Gregory that, because he had been terminated for "inadequate work performance," he was not entitled to a hearing under the written University policies and procedures. Finn further advised Gregory that he could submit a written request for a hearing to Chancellor James C. Hunt.2On January 30, 1989, Gregory delivered a letter to Hunt requesting a hearing on his termination. Gregory's counsel later asked Hunt to provide the specific reason(s) for Gregory's termination. Hunt complied with the request. Gregory's attorney then addressed the termination issues in a brief. Hunt subsequently elected to conduct an informal hearing.The hearing was held May 3, 1989. Hunt allowed Gregory to make a statement. Shadko was also allowed to make a statement. Shadko's statement contained "incidents" not previously cited, and he referred to documents not furnished to Gregory's counsel. Hunt ordered Gregory's attorney not to confer with Gregory during the hearing, but allowed them to confer outside the hearing room. Gregory objected to the introduction of the new material and Hunt's refusal to allow his attorney to confer with or advise him during the course of the hearing. Hunt asked Gregory if he wished to continue the hearing; Gregory replied that he would not participate any further.Following the conclusion of the hearing, and after reviewing Gregory's record and several "position papers" submitted by Gregory's attorney and Shadko, Hunt advised Gregory, by letter of July 11, 1989, of his decision to affirm the termination. At the same time, Hunt offered Gregory re-employment as an entry-level police officer with longevity credit for his prior service, but Gregory rejected the offer.Gregory then commenced this action, seeking reinstatement and back pay, as well as compensatory and punitive damages. Under federal and state laws, Gregory claimed that he was deprived of both property and liberty interests in violation of his constitutional right to due process. The district court granted summary judgment for the defendants on the claims brought under Secs. 1981, 1983, 1985 and 1986, and dismissed the state law claims.3 The court found that Gregory lacked a property interest in continued employment, and that Gregory received a constitutionally sufficient hearing for any charge implicating his liberty interest.II.We review a district court's grant of summary judgment under a de novo standard of review. EEOC v. University of Detroit, 904 F.2d 331, 334 (6th Cir.1990). We examine the grant of summary judgment to determine "whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law." Booker v. Brown & Williamson Tobacco Co., 879 F.2d 1304, 1310 (6th Cir.1989) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986)). Although we must draw all justifiable inferences in favor of the non-moving party, Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986), that party must show that there exists a disagreement regarding an item of material fact. Kochins v. Linden-Alimak, Inc., 799 F.2d 1128, 1133 (6th Cir.1986). The evidence presented must be sufficient to permit the plaintiff to recover if accepted by the jury.III.A. Property InterestThe Supreme Court has recognized that an individual may have a "property" interest in public employment. In Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972), the Court stated:Property interests, of course, are not created by the Constitution. Rather they are created and their dimensions are defined by existing rules or understandings that stem from an independent source such as state law--rules or understandings that secure certain benefits and that support claims of entitlement to those benefits.In Perry v. Sindermann, 408 U.S. 593, 601, 92 S.Ct. 2694, 2699, 33 L.Ed.2d 570 (1972), decided the same day as Roth, the Supreme Court expanded on the "property" interest concept: "A person's interest in a benefit is a 'property' interest for due process purposes if there are such rules or mutually explicit understandings that support his claim of entitlement to the benefit and that he may invoke at a hearing." The Supreme Court later stated: "A property interest in employment can, of course, be created by ordinance, or by an implied contract. In either case, however, the sufficiency of the claim of entitlement must be decided by reference to state law." Bishop v. Wood, 426 U.S. 341, 344, 96 S.Ct. 2074, 2077, 48 L.Ed.2d 684 (1976) (footnotes omitted).The doctrine of employment at-will has long been recognized in Tennessee, with the concomitant right of either party to terminate such a relationship with or without cause. See Chism v. Mid-South Milling Co., 762 S.W.2d 552, 555 (Tenn.1988). Recently, the Supreme Court of Tennessee stated:The employment at-will doctrine has been a part of Tennessee's common-law legal tapestry for more than a century. The doctrine recognizes the concomitant right of either party to terminate such a relationship with or without cause. On the other hand a contract of employment for a definite term may not be terminated before the end of the term, except for good cause or by mutual agreement, unless the right to do so is reserved in the contract. It is possible that some contractual right might accrue to an employee as the result of an unlawful termination of such a contract. However, without a clear contract under which such rights may vest, employees in this State possess no property right in their employment under the circumstances which we have at hand. We know of no court decision, nor have we been referred to one, which holds that an employee has a contractual right under the employment at-will doctrine.Bennett v. Steiner-Liff Iron and Metal Co., 826 S.W.2d 119, 121 (Tenn.1992) (citations omitted).An at-will public employee does not have a property interest in continued employment unless it can be shown that the employee had a reasonable expectation that termination would be only for good cause. See Chilingirian v. Boris, 882 F.2d 200, 203 (6th Cir.1989) ("a public employee does not have a property interest in continued employment when his position is held at the will and pleasure of his superiors and when he has not been promised that he will only be terminated for good cause"); Bleeker v. Dukakis, 665 F.2d 401, 403 (1st Cir.1981) ("This lack of any reasonable expectation of continued employment suffices to establish the lack of 'property' in the constitutional sense, and hence the lack of a viable due process claim.").Gregory argues that despite Tennessee's strict adherence to the employment at-will doctrine, he had legitimate expectations that he would not be discharged without good cause. He focuses on section 100 of the Personnel Policies and Procedures Manual, which states: "All ... employees ... serve on an 'at will' basis subject to the policies and procedures set forth in the Personnel Policies and Procedures Manual." Gregory maintains that various provisions in the manual and the Employee Handbook create an implied contract whereby he can only be discharged for cause and, thus, he did have a protectible property interest.Gregory's contention must be reviewed under Tennessee law. Most relevant to our inquiry are those cases that have analyzed what effect an employee handbook has on an employment at-will relationship. Tennessee courts and district courts interpreting Tennessee law have recognized that an employment relationship may, under appropriate circumstances, be modified by promises or representations incorporated into employee handbooks. Williams v. Maremont Corp., 776 S.W.2d 78 (Tenn. Ct.App.1988). The determination of whether an employee handbook is deemed to be part of the employment contract depends upon the specific language of the handbook. Only where the language is specific in stating that the employment manual provides certain guaranteed policies or practices will the employment manual be deemed part of the employment contract. Smith v. Morris, 778 S.W.2d 857 (Tenn. Ct.App.1988); MacDougal v. Sears, Roebuck & Co., 624 F.Supp. 756 (E.D. Tenn.1985). In none of the cases, however, has a court found the terms of an employee handbook converted at-will employment into a protectible property interest. See, e.g., Claiborne v. Frito-Lay, Inc., 718 F.Supp. 1319 (E.D. Tenn.1989) (finding the language in the employee handbook was too vague to constitute a contract of employment); MacDougal, 624 F.Supp. at 756 (same); Whittaker v. Care-More, Inc., 621 S.W.2d 395 (Tenn. Ct.App.1981) (same).The case most on point is Graves v. Anchor Wire Corporation of Tennessee, 692 S.W.2d 420 (Tenn. Ct.App.1985). In Graves, the plaintiff maintained that the employee handbook furnished to her after she began work created an implied contract of employment, thereby altering her status as an employee at-will. In support of this contention, she relied on Hamby v. Genesco, Inc., 627 S.W.2d 373 (Tenn. Ct.App.1981), in which the court had found the language in an employee handbook was specific enough to constitute terms of an implied contract. The Graves court easily distinguished Hamby, however, noting that Hamby did not involve an employee termination, but involved a suit to recover benefits of employment. The Graves court then held that the terms of the employee handbook did not outweigh "the well-established law in [Tennessee] concerning contracts of employment terminable at will." Graves, 692 S.W.2d at 422. Thus, under Tennessee law, it appears that the Personnel Manual and Employee Handbook would not be enough to convert Gregory's at-will employment into a protectible property interest.This finding is consistent with other cases decided by this court. For instance, Gregory draws our attention to the "University Work Rules" section of the Employee Handbook, which lists acts that if committed could "be cause for disciplinary action including possible termination." Gregory argues that these rules created an implied contract to discharge only for cause. We rejected a similar contention in Reid v. Sears, Roebuck & Co., 790 F.2d 453 (6th Cir.1986). In Reid, the plaintiffs signed an application for employment providing that "employment and compensation can be terminated with or without cause, and with or without notice, at any time, at the option of either the Company or myself." Id. at 456. Once employed, plaintiffs received an employee handbook, "Getting Acquainted with Sears," that listed specific conduct for which the employer could terminate its employees. The plaintiffs argued that "by listing conduct that 'may result in the termination of your employment' in the handbook Sears limited its right to discharge employees and that a discharge for any other reason would not be for good cause." Id. at 460. Rejecting this argument, we said:We do not believe the listing of causes that "may result in the termination of your employment" in the Sears handbook detracted in any way from the language in the application or provided a reasonable basis for the conclusion that the plaintiffs were employed under a "for cause" contract. The fact that certain acts were identified as conduct that might lead to discharge did not indicate that these acts were the exclusive permissible grounds for discharge.Id.In Pratt v. Brown Machine Co., 855 F.2d 1225 (6th Cir.1988), the plaintiff brought a wrongful discharge claim against his former employer. The plaintiff argued that because the employee handbook contained "Company Rules" that identified acts "that could 'result in disciplinary action ranging from verbal or written warnings to suspension or to immediate discharge depending upon the act and the circumstances,' " he had an implied contract to discharge only upon cause. Id. at 1233. In reviewing this contention, we noted that the employee handbook also contained a "tear-out page," which read as follows:I hereby acknowledge receipt of a copy of the "Brown Hourly Employee Handbook," and affirm that I realize the significance of the rules, policies and information in this handbook. I also understand these policies are subject to change by management, unilaterally and without notice.It is agreed, that my employment with the Company, is at the will of the Company.Id. at 1228 (emphasis in text). Based on Reid, we held that the "Company Rules" section did not detract from the at-will language in the tear-out page, and thus there was not a jury issue as to an implied just cause contract. See also Elsey v. Burger King Corp., 917 F.2d 256, 260 (6th Cir.1990) ("Because the policy manual at issue unequivocally established that the plaintiff's employment was at-will, the plaintiff cannot avoid summary judgment[.]"); Chilingirian, 882 F.2d at 205 (holding that a city attorney did not have constitutionally protected property interest in his employment in light of a city charter provision indicating that he served at the pleasure of the city council); Dell v. Montgomery Ward and Co., 811 F.2d 970 (6th Cir.1987) (holding that various provisions in an employee reference guide did not create a legitimate expectation of continuing employment); Windsor v. The Tennessean, 719 F.2d 155, 159 (6th Cir.1983) ("When a supervisor possesses unconditional power to discharge a subordinate, that employee obviously has no entitlement to his job."), cert. denied,Try vLex for FREE for 3 days
Access legal information from United States including:
Try vLex without any commitment for 3 days and see why you need it.
3
days of Free Access