Federal Circuits, 4th Cir. (August 19, 1988)
Docket number: 87-3651
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U.S. Supreme Court - Daniels v. Williams, 474 U.S. 327 (1986)
U.S. Supreme Court - Parratt v. Taylor, 451 U.S. 527 (1981)
U.S. Supreme Court - Martinez v. California, 444 U.S. 277 (1980)
U.S. Supreme Court - Codd v. Velger, 429 U.S. 624 <I>(per curiam)</I> (1977)
U.S. Supreme Court - Board of Regents of State Colleges v. Roth, 408 U.S. 564 (1972)
U.S. Court of Appeals for the 4th Cir. - Walker v. Tyler (4th Cir. 1996)
U.S. Court of Appeals for the 4th Cir. - Mtingwa v. North Carolina (4th Cir. 1997)
U.S. Court of Appeals for the 4th Cir. - Notice: Fourth Circuit I.O.P. 36.6 States that Citation of Unpublished Dispositions is Disfavored Except for Establishing Res Judicata, Estoppel, or the Law of the Case and Requires Service of Copies of Cited Unpublished Dispositions of the Fourth Circuit. Lorene H. Bostic, Plaintiff-Appellant, v. Russell County School Board; Roger L. Taylor, Individually and as Principal of Lebanon Elementary School; G. B. Meade, Individually and as Vice-Chairman of the Russell County School Board; Larry A. Massie, Individually and as Division Superintendent of Russell County Public Schools; Miles Hillman, Individually and as a Member of the Russell County School Board; Charlie L. Collins, Individually and as Principal of Clinch River Elementary School; Linda G. Tiller, Individually and as Chairman of the Russell County School Board; Roger D. Sward, Individually and as a Member of the Russell County School Board; John H. Smith, Individually and as a Member of the Russell County School Board; Sammy Lou Rasnake, ..., 968 F.2d 1211 (4th Cir. 1992) Estoppel, or the Law of the Case and Requires Service of Copies of Cited Unpublished Dispositions of the Fourth Circuit. Lorene H. Bostic, Plaintiff-Appellant, v. Russell County School Board; Roger L. Taylor, Individually and as Principal of Lebanon Elementary School; G. B. Meade, Individually and as Vice-Chairman of the Russell County School Board; Larry A. Massie, Individually and as Division Superintendent of Russell County Public Schools; Miles Hillman, Individually and as a Member of the Russell County School Board; Charlie L. Collins, Individually and as Principal of Clinch River Elementary School; Linda G. Tiller, Individually and as Chairman of the Russell County School Board; Roger D. Sward, Individually and as a Member of the Russell County School Board; John H. Smith, Individually and as a Member of the Russell County School Board; Sammy Lou Rasnake, ...
U.S. Court of Appeals for the 4th Cir. - Gravitte v. NC Div of Motor (4th Cir. 2002)
Norman Roy Grutman (Jewel H. Bjork, Grutman, Miller, Greenspoon & Hendler, Henry P. Monaghan, New York City, John Philip Miller, Kaplan, Heyman, Greenberg, Engelman & Belgrad, P.A., Baltimore, Md., on brief), for plaintiff-appellant.
Diana G. Motz (Shale D. Stiller, Frank, Bernstein, Conaway & Goldman, on brief), Ralph S. Tyler, Asst. Atty. Gen., (J. Joseph Curran, Jr., Atty. Gen., Michael A. Anselmi, William F. Howard, Lawrence White, Asst. Attys. Gen., Baltimore, Md., on brief), for defendants-appellees.Mary R. Craig (Doyle & Langhoff, Baltimore, Md., on brief), for intervenor.M. King Hill, Jr. (John R. Penhallegon, Connie E. Williams, Smith, Somerville & Case, Baltimore, Md., on brief), for intervenors.Appeal from the United States District Court for the District of Maryland.Before PHILLIPS, ERVIN, and WILKINSON, Circuit Judges.JAMES DICKSON PHILLIPS, Circuit Judge:This is a 42 U.S.C. § 1983 action brought by Dr. H. Harlan Stone against his former employers, the University of Maryland School of Medicine and the University of Maryland Medical System Corporation, a private corporation which operates the University of Maryland Hospital, as well as various officials of both entities. Stone alleged that the defendants violated his due process rights by forcing him to resign from his employment without a hearing "under duress, threats, intimidation and coercion." The district court granted summary judgment for the defendants, and Stone appeals. Because we conclude that as a matter of law on the summary judgment record, Stone's resignation was voluntary, we affirm on the ground that the state did not "deprive" him of any protected interests in his employment within the meaning of the due process clause.Stone was hired by the University of Maryland School of Medicine (the Medicine School) in January 1983 as a tenured full professor of surgery.[fn1] In May 1984 he accepted an additional appointment as Chief of the Division of General Surgery and member of the medical staff at the University of Maryland Hospital (the Hospital); in that capacity, he was responsible for the supervision of a number of surgery residents. Under the terms of his employment contract with the Medical School, Stone could be discharged only for cause, after written notice of the charges against him and an opportunity for a hearing before the University's Board of Regents, but the President of the University could order a temporary suspension pending action by the Board of Regents. Under the Hospital's Bylaws, the Medical Executive Committee[fn2] was authorized to suspend Stone's clinical privileges whenever it determined that such action was "in the best interest of patient care in the Hospital." He could be permanently dismissed from the medical staff, however, only after written notice of the charges against him and an opportunity for a hearing before the Medical Executive Committee, with a right of appeal to higher authorities within the Hospital.The events leading up to Stone's resignation began in April 1986, when the families of four patients who had died under Stone's care filed medical malpractice actions against him and several surgery residents working under his supervision. The malpractice actions contained allegations of gross recklessness and incompetence in surgical care; in addition, they accused Stone of failing to exercise adequate supervision over surgical residents and of encouraging them to falsify medical records in order to cover up errors in patient care. The malpractice actions received considerable publicity in the local media.The Hospital referred the malpractice cases, together with several other incidents involving patients under Stone's care, to its in-house Peer Review Committee (PRC). The PRC spent approximately one month reviewing the medical charts and records of the specific patients concerned. It concluded that while there was no evidence of actual incompetence or deliberate falsification of patient records in the cases investigated, there were "significant deficiencies" in Stone's supervision of residents and his maintenance of patient records. JA 122-23; 130.Alarmed by these findings, Hospital officials decided to appoint a committee of outside medical experts to investigate the situation in the Department of Surgery. The three-member External Review Committee (ERC) was made up of respected physicians from the medical schools at Harvard, the University of Chicago, and the University of Texas. It was instructed not to focus on the individual malpractice cases, but instead to conduct a broad review of the quality of clinical care throughout the Department of Surgery.On June 10, 1986, the ERC delivered an oral report to the Chancellor of the University, the Dean of the Medical School, the President of the Hospital, and several other officials of the medical staff. According to the uncontradicted testimony of those who were present at the meeting, the ERC was quite critical of Stone's supervision of surgery residents, noting that he sometimes left them "virtually unsupervised," that he did not permit them to question his orders, and that he followed a practice of "two-tiered" medical care in which patients who could afford to pay for medical care received higher quality treatment than those who could not. The experts emphasized that this two-tiered system was indefensible both legally and morally. Finally, and perhaps most importantly, the ERC concluded that Stone had made a series of "self-serving misrepresentations" to the ERC and to his superiors at the Hospital in order to cover up irregularities in the treatment of Theodore Kozowyj, one of the patients who had died under his care.[fn3] J.A. 29; 33; 39-41.Stone's superiors were stunned by the revelation that a professor of surgery and Chief of the Division of General Surgery had misled both the ERC and the Hospital's own Medical Review Committee about the circumstances leading up to the death of a patient under his care. They determined that they could not, under the circumstances, allow Stone to remain on the Hospital's medical staff. Accordingly, on the morning of June 13, 1986, the Dean of the Medical School summoned Stone to his office, advised him of the nature of the ERC's allegations, and suggested that it would be best for both Stone and the University if he resigned immediately. Stone refused to do so, saying he needed time to think and to consult his attorney.Several hours later, the Dean called Stone to ask if he had reached a decision. When Stone said he had not, the Dean ordered him to report to the Chancellor's office, where he was confronted by the Dean, the Chancellor, and the President of the Hospital, together with counsel for both the University and the Hospital. Stone did not bring an attorney with him; he claims he had tried to locate one since speaking to the Dean that morning, but had been unable to do so because of a lawyer's convention. What happened at this meeting is subject to some dispute. Stone's superiors have asserted that they told Stone that the ERC's charges against him were so serious that unless he resigned from the Hospital's medical staff immediately, they would have to ask the Medical Executive Committee, which was scheduled to meet later that afternoon, to institute proceedings for his dismissal from the staff and to suspend his clinical privileges pending the outcome of those proceedings. J.A. 29; 398-99. Stone has characterized the choice put to him a bit differently: he has asserted that he was told that if he did not resign immediately from the medical staff, the Medical Executive Committee would permanently "expel" him from it at its meeting that afternoon. In any event, it is clear that Stone's choice was not a pleasant one; revocation of clinical privileges, even temporarily, can have a devastating effect on a physician's professional reputation, make it difficult to obtain malpractice insurance, and severely jeopardize his prospects for future employment.Stone asked for time to call his attorney and was permitted to leave the room to do so. He was gone approximately one half hour, during which his superiors assumed he was consulting his attorney. According to Stone, he spoke not with an attorney but with a long-time friend and fellow surgeon, who advised him to resign rather than face the possibility of expulsion from the medical staff, which he characterized as "professional suicide." Stone says the friend advised him to try to obtain assurances that his resignation would go on record as having been completely voluntary and that he would continue to receive his salary until he obtained other employment.Stone returned to the Chancellor's office and told his superiors that he would resign immediately from his positions at both the Hospital and the Medical School on the following conditions: (1) that his resignations from both institutions would be "without prejudice" - that is, that they would not constitute an admission of any wrongdoing; (2) that his resignation from the Medical School would be delayed until July 1, 1987, unless he found other employment before that date; and (3) that he would continue to receive his Medical School salary until the effective date of his resignation from that institution. He did not ask for a hearing on the charges against him. Stone's superiors agreed to his terms and directed their attorneys to draw up appropriate letters of resignation. Stone read the letters carefully, demanded several changes, and then signed the revised versions. The President of the Hospital and the Dean of the Medical School promptly executed letters accepting Stone's resignations on behalf of their respective institutions. Each letter acknowledged that Stone's resignation was not an admission of the validity of any of the accusations against him or of any other wrongdoing which might be cause for his termination. J.A. 106; 108.Stone's resignation from the Hospital was effective immediately. As contemplated by the June 13 agreement, however, he was permitted to remain on the Medical School faculty - and to draw his Medical School salary - while he searched for other employment. In June 1987, nearly one year after he agreed to resign, Stone finally notified the Dean by letter that he had obtained employment elsewhere; at that point, his resignation from the Medical School finally became effective. During the eleven-month interval between his decision to resign and his actual departure from the Medical School, Stone did not once request a hearing on the charges against him, nor did he make any effort to withdraw his resignations. He did, however, accept nearly $65,000 in salary payments from the Medical School.In November 1986, five months after he agreed to resign but before he obtained employment elsewhere, Stone filed this § 1983 action against the Dean of the Medical School, the Chancellor of the University, and counsel for the Chancellor, all of whom were employees of the State of Maryland. Also joined as defendants were three nominally private parties - the Hospital, its President, and its counsel - who Stone alleged had acted in concert with the state employees. Stone alleged that the defendants had violated his due process rights by forcing him to resign from his positions at the Hospital and the Medical School without a hearing. For this alleged wrong, he sought $6 million in compensatory and $20 million in punitive damages.Upon completion of discovery, the defendants moved for summary judgment on four alternative grounds: (1) that Stone had resigned from his positions at both institutions voluntarily; (2) that even if the resignations had been obtained involuntarily, Stone could not challenge them because he had "ratified" them by his subsequent acts; (3) that the post-deprivation remedies available to Stone under state law provided all the process that was constitutionally due him and prevented him from making out a due process claim under the doctrine of Parratt v. Taylor, 451 U.S. 527, 101 S.Ct. 1908, 68 L.Ed.2d 420 (1981); and (4) that even if Stone had a viable due process claim, the defendants were immune from damages liability because they had acted in the good faith belief that their conduct did not violate any clearly established law. The district court granted the motion on all four grounds, and this appeal followed.As indicated, the district court based its grant of summary judgment alternatively upon all four of the grounds advanced by defendants.On appeal, the parties have, with varying degrees of emphasis, joined issue on all four grounds. Because it is the core issue and in our view is dispositive of Stone's action, we discuss only the first: Whether Stone was deprived of a constitutionally protected property interest by the defendants' conduct leading to his resignation. If he was not so deprived, that ends the matter; the other issues become irrelevant, without regard to their merits, as to which we therefore need express no view.[fn4]Stone's basic § 1983 claim of course is that he was deprived of his property interest in continued employment by defendants acting under color of state law, hence by state action, without due process of law, in violation of rights secured by the fourteenth amendment. On this appeal he claims the protections of both the substantive and procedural components of the due process clause, and the defendants have argued the issue in those terms.The critical point, however, is that in order to claim entitlement to the protections of the due process clause - either substantive or procedural - a plaintiff must first show that he has a constitutionally protected "liberty" or "property" interest, see Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972), and that he has been "deprived" of that protected interest by some form of "state action," see Daniels v. Williams, 474 U.S. 327, 106 S.Ct. 662, 88 L.Ed.2d 662 (1986). Unless there has been a "deprivation" by "state action," the question of what process is required and whether any provided could be adequate in the particular factual context is irrelevant, for the constitutional right to "due process" is simply not implicated.In this case, there is no question that Stone had a constitutionally protected "property" interest in his continued employment with both the Hospital and the Medical School, as he could be discharged from each position only for cause. See Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532, 538-39, 105 S.Ct. 1487, 1491-92, 84 L.Ed.2d 494 (1985).[fn5] But that leaves the more difficult question whether he was "deprived" of that interest by some form of state action.[fn6] Had he been officially discharged from his public employment, the answer would be evident. But Stone's superiors never officially "fired" him - he resigned. If he resigned of his own free will even though prompted to do so by events set in motion by his employer, he relinquished his property interest voluntarily and thus cannot establish that the state "deprived" him of it within the meaning of the due process clause. Cf. Martinez v. California, 444 U.S. 277, 281, 100 S.Ct. 553, 557, 62 L.Ed.2d 481 (1980) (the mere fact that state action sets in motion a chain of events that ultimately leads to loss of a plaintiff's protected interest does not of itself establish that there has been a "deprivation by state action" in the constitutional sense). If, on the other hand, Stone's "resignation" was so involuntary that it amounted to a constructive discharge, it must be considered a deprivation by state action triggering the protections of the due process clause. A public employer obviously cannot avoid its constitutional obligation to provide due process by the simple expedient of forcing involuntary "resignations." The proper focus of the constitutional inquiry here is therefore on the voluntariness of Stone's resignation. The answer to that factual inquiry is dispositive of the constitutional "deprivation" issue, and potentially of the constitutional claim.Only a handful of courts in addition to the district court here have addressed the question of when a "resignation" from public employment that has been requested by the employer is sufficiently involuntary to trigger the protections of the due process clause. See, e.g., Dusanek v. Hannon, 677 F.2d 538, 542-43 (7th Cir. 1982); Morrell v. Stone, 638 F.Supp. 163, 166-68 (W.D.Va. 1986); Illinois ex rel. Schoepf v. Board of Educ., 606 F.Supp. 385, 390 (N.D. Ill. 1985). In conducting the dispositive factual inquiry into voluntariness, these courts have looked for guidance to a line of cases dealing with the closely analogous question of when a federal employee's "resignation" is actually a constructive discharge entitling him to certain procedural rights under the civil service acts. See, e.g., Christie v. United States, 518 F.2d 584, 207 Ct.Cl. 303 (1975). Those latter cases are of course concerned with a resigning employee's right to procedural protections guaranteed by federal statute, whereas this case involves the right to protections guaranteed by the Constitution itself. The cases are perfectly apposite analytical sources, however, for the dispositive factual inquiry - whether the apparent "resignation" was in fact involuntary - is essentially the same in both situations. We therefore join those courts which have looked to the civil service cases for guidance in conducting the voluntariness inquiry.[fn7]The basic approach in those cases is the obvious one of looking to the circumstances of the resignation to determine whether the employee was denied the opportunity to make a free choice. Scharf v. Department of the Air Force, 710 F.2d 1572, 1574 (Fed.Cir. 1983) (citing Perlman v. United States, 490 F.2d 928, 933, 203 Ct.Cl. 397 (1974)). Inevitably, particular resignations have been found involuntary, hence, per our analysis, "deprivations" of property, in two circumstances: (1) where obtained by the employer's misrepresentation or deception, see, e.g., Scharf, 710 F.2d at 1574-76; Covington v. Department of Health & Human Serv., 750 F.2d 937, 942-44 (Fed.Cir. 1984), and (2) where forced by the employer's duress or coercion, see, e.g., Schultz v. United States Navy, 810 F.2d 1133, 1135-37 (Fed.Cir. 1987). Both obviously involve situations in which the employer's conduct has prevented the employee from making a free and informed choice, hence, in our terms, has effectively deprived the employee of his protected property interest.Under the "misrepresentation" theory, a resignation may be found involuntary if induced by an employee's reasonable reliance upon an employer's misrepresentation of a material fact concerning the resignation. See Scharf, 710 F.2d at 1575. A misrepresentation is material if it concerns either the consequences of the resignation, see id. (effect on accumulated sick leave) or the alternative to resignation, see Covington, 750 F.2d at 942 (omission to explain right to be reassigned if resignation declined). The reliance must be reasonable under the circumstances. Scharf, 710 F.2d at 1575.Under the "duress/coercion" theory, a resignation may be found involuntary if on the totality of circumstances it appears that the employer's conduct in requesting resignation effectively deprived the employee of free choice in the matter. Factors to be considered are (1) whether the employee was given some alternative to resignation; (2) whether the employee understood the nature of the choice he was given; (3) whether the employee was given a reasonable time in which to choose; and (4) whether he was permitted to select the effective date of resignation. See Taylor v. United States, 591 F.2d 688, 691, 219 Ct.Cl. 86 (1979) (using factors derived from Federal Personnel Manual). In applying this totality of circumstances test, the assessment whether real alternatives were offered must be gauged by an objective standard rather than by the employee's purely subjective evaluation; that the employee may perceive his only option to be resignation - for example, because of concerns about his reputation - is irrelevant. See Christie, 518 F.2d at 587-88. Similarly, the mere fact that the choice is between comparably unpleasant alternatives - e.g., resignation or facing disciplinary charges - does not of itself establish that a resignation was induced by duress or coercion, hence was involuntary. Id. This is so even where the only alternative to resignation is facing possible termination for cause, unless the employer actually lacked good cause to believe that grounds for termination existed. Id. at 587-88 ("The fact remains, plaintiff had a choice. She could stand pat and fight") (emphasis in original); see also Pitt v. United States,Try vLex for FREE for 3 days
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