Federal Circuits, 9th Cir. (November 12, 1981)
Docket number: 80-5005,80-5130
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U.S. Supreme Court - Kush v. Rutledge, 460 U.S. 719 (1983)
U.S. Supreme Court - Patsy v. Board of Regents of Fla., 457 U.S. 496 (1982)
U.S. Court of Appeals for the 9th Cir. - Jean Belanger, Plaintiff-Appellant, v. Madera Unified School District; Board of Trustees of Madera Unified School District; Thomas J. Riley, School Superintendent, Defendants-Appellees., 963 F.2d 248 (9th Cir. 1992) Plaintiff-Appellant, v. Madera Unified School District; Board of Trustees of Madera Unified School District; Thomas J. Riley, School Superintendent, Defendants-Appellees.
Robert Ong Hing, Stockton & Hing, Phoenix, Ariz., for plaintiff-appellant.
J. Ruth Sproull, Phoenix, Ariz., argued for defendants-appellees; Michael L. Gallagher, Phoenix, Ariz., on brief.Appeal from the United States District Court for the District of Arizona.Before GOODWIN and SNEED, Circuit Judges, and HALBERT*, District judge.SNEED, Circuit Judge:Appellant's first amended complaint and action were dismissed by the district court on the grounds, first, that the action was barred by the Eleventh Amendment and, second, that the complaint did not allege a violation of appellant's civil rights. Also, costs were taxed against appellant by the district court. Appellant appealed both the dismissal and the order with respect to costs. The appeals were consolidated.We affirm the dismissal of the complaint and action as alleged in Count Four and a portion of Counts Three and Five. We reverse and remand with respect to Counts One and Two, a portion of Count Three and that portion of Count Five that alleges a claim under the first part (that portion preceding the semicolon) of 42 U.S.C. § 1985(2). We also reverse and remand the order taxing costs against the appellant.Our jurisdiction rests on 28 U.S.C. § 1291.I.THE FIRST AMENDED COMPLAINTAppellant in his first amended complaint describes his success as a football player in high school and his recruitment by several colleges and universities, including Arizona State University (A.S.U.), acting through its football coach, the defendant, Frank Kush. Appellant chose to attend Arizona State University in the fall of 1977 on condition that he receive a football scholarship commencing the second semester of his first year. Appellant alleges that he performed successfully as a football player during the 1977 football season and that he obtained his athletic scholarship in the second semester of the 1977-78 academic year.According to appellant's complaint, his troubles commenced shortly after the end of the 1977 football season when he received injuries to his face and chest as the result of an automobile accident. A chest infection resulted which impaired his ability to perform during the spring football practice and the fall training camp. Appellant was demoted from first string defensive back to the last string by the time the training camp closed, although he remained the starting punter.Appellant signed a scholarship contract in the fall of 1978 and thereafter requested that he be permitted to sit out the 1978 season but to continue to practice with the team, a status known as "red-shirting." Appellant alleges appellee Kush consented to "red-shirt" him during the 1978 season. Appellant watched the opening game of the season from the stands, but during the following week's practice he was told by appellee Maskill that he had not been "red-shirted" and Kush called him a liar for saying that he had been. Thereafter appellant was considered by Kush as a full member of the squad. Appellant alleges that he continued to be underweight and weak as a result of the chest infection and that neither Kush nor Maskill attempted to determine the cause of his condition.On October 28, 1978, during the University of Washington game and after what Kush thought was a poor punt, appellant alleges that Kush took appellant's helmeted head between his two hands, shook his head from side to side, yelled obscenities at him, and then struck him with a fist in the mouth. Thereafter, Kush held appellant up to public ridicule and did not permit appellant to punt in a game for the rest of the season. Kush, appellant also alleges, recruited and offered a full scholarship to a new punter.Appellant rid himself of his infection during early 1979 and immediately his weight and strength improved. Upon reporting to spring training, however, he was told by Maskill that he should quit the team and transfer to another school. Also, he was not permitted to scrimmage or play in exhibition games. Kush and Maskill employed scorn and ridicule in an attempt to get appellant to quit the team and transfer to another school, thereby forsaking his scholarship. The appellees "refused to consent to plaintiff's (appellant's) transfer, making plaintiff ineligible for financial aid (by the transferee school) for one year under NCAA rules." First Amended Complaint, P 28. These rules also provide that "institutional aid may not be gradated or canceled (sic) during the period of its award on the basis of (i) a student-athlete's ability or his contribution to a team's success, (ii) because of an injury which prevents the recipient from participating in athletics or (iii) for any other athletic reason." First Amended Complaint P 27. In addition, under the Constitution and By-Laws of the National Collegiate Athletic Association (NCAA) "plaintiff, once having been granted an athletic scholarship at ASU could have that scholarship revoked only for good cause, and only after a proper hearing, if so requested."Appellant alleges he was "forced to leave A.S.U." and "transfer to the University of Nevada at Las Vegas, without a scholarship." Id. at P 28. This required appellant to be red-shirted without a scholarship his first year at Nevada and to extend his stay in school by a semester in order to complete his football eligibility.The complaint, after reciting the above allegations, contains five counts. Count One charges Kush with all the allegations applicable to him and asserts that Kush conspired with his assistant coaches, including Maskill, to deprive appellant of his scholarship and his rights to a hearing under NCAA rules by means of "a pattern of harassment, embarrassment, defamation, and intentional infliction of mental distress" in order to obtain the opportunity to give appellant's scholarship to another. This deprived appellant of an advantageous business and educational relationship with A.S.U. Appellant alleged actual damages in the amount of $100,000, and also requested an award of punitive damages.Count Two was directed at Maskill. It charged him with conspiring with Kush to induce appellant to give up his scholarship and transfer to another school.Count Three incorporates all the preceding allegations and is directed at the Board of Regents of Arizona State University and athletic director Fred L. Miller, who, it is alleged, are vicariously liable for the acts of Kush and Maskill and also are liable because of their failure to supervise Kush and Maskill adequately. A prayer for compensatory damages is included in the count.Count Four, after incorporating all the foregoing, alleges that Kush and Maskill acted under color of state law and deprived appellant of rights, privileges, and immunities under the Constitution and thereby are in violation of 42 U.S.C. § 1983. The count contains prayers for compensatory and punitive damages, attorney's fees, costs, and interest on the judgment until paid.Count Five, again incorporating all preceding allegations, charges Kush, Miller, and one Horton, another A.S.U. assistant football coach, of conspiring to obstruct justice by intimidating material witnesses and encouraging others to deter appellant from enforcing his legal rights. In this manner, appellant, it is alleged, was deprived of equal protection of the laws and of his privileges and immunities in violation of 42 U.S.C. § 1983 and § 1985(2).Jurisdiction in the district court was alleged to be based on diversity of citizenship, 28 U.S.C. § 1332, the deprivation of civil rights, 28 U.S.C. § 1343, and the existence of a federal question, 28 U.S.C. § 1331. The required jurisdictional amount was properly alleged.We shall consider initially the scope of the bar of the Eleventh Amendment as it relates to each of the counts of the complaint. Thereafter, we shall consider briefly the manner in which the appellant's claim based on Arizona law, jurisdiction with respect to which is based on diversity of citizenship, may be affected by the principles of res judicata and collateral estoppel. Finally, we shall consider the appellant's civil rights allegations.II.ELEVENTH AMENDMENT IMMUNITYThe district court held that the appellant had established diversity jurisdiction in that at the time the action was commenced appellant was a citizen of Nevada while the appellees were citizens of Arizona. We affirm that holding.The appellees contend, however, that the Eleventh Amendment deprived the district court of jurisdiction with respect to each count of the appellant's first amended complaint. The district court agreed with this contention. We hold that the immunity of the Eleventh Amendment extends only to the Arizona Board of Regents and Arizona State University. We also hold that appellee Miller is entitled to partial immunity. Appellees Kush, Maskill, and Horton, on the other hand, are not entitled to assert to any extent the immunity of the Eleventh Amendment to deprive the district court of jurisdiction.Our analysis commences with Edelman v. Jordan, 415 U.S. 651, 94 S.Ct. 1347, 39 L.Ed.2d 662 (1974), and Ex parte Young, 209 U.S. 123, 28 S.Ct. 441, 52 L.Ed. 714 (1908). The latter held that an effort by a state official to enforce an alleged unconstitutional state statute could be enjoined notwithstanding the Eleventh Amendment. Under these circumstances the state official acts not on behalf of the state but as an individual. 209 U.S. at 159-60, 28 S.Ct. at 453-454. The former held that when the liability sought to be imposed must be paid from public funds in the state treasury the Eleventh Amendment is a bar to enforcement. 415 U.S. at 663, 94 S.Ct. at 1355. Thus, a suit seeking a refund of taxes paid to a state encounters the Eleventh Amendment bar even when nominally against state officials, Ford Motor Co. v. Department of Treasury, 323 U.S. 459, 65 S.Ct. 347, 89 L.Ed. 389 (1945), while a suit against a state official for acts wrongful under general law does not encounter this bar. See Hopkins v. Clemson Agricultural College, 221 U.S. 636, 642-43, 31 S.Ct. 654, 656, 55 L.Ed. 890 (1911); New England Patriots Football Club, Inc. v. University of Colorado, 592 F.2d 1196, 1201 (1st Cir. 1979).Obviously the source from which the sums sought by the plaintiff must come is the most important single factor in determining whether the Eleventh Amendment bars federal jurisdiction. See Edelman v. Jordan, 415 U.S. at 668, 94 S.Ct. at 1358; Hutchison v. Lake Oswego School District No. 7, 519 F.2d 961, 966 (9th Cir. 1975). Other significant factors include whether the defendant entity performs an essential government function and the manner in which the entity is regarded by the law of the relevant state. See 519 F.2d at 966-68. Whether state law treats the entity as the state, permits it to sue and be sued, permits it to take property in its own name, or permits it to conduct itself substantially independently of the state are relevant aspects of the state law that must be considered.The district court properly applied these factors in reaching the conclusion that this suit against the Arizona Board of Regents and Arizona State University was not cognizable in a federal court. The Arizona Board of Regents is treated as the State of Arizona under Arizona law. See Arizona Board of Regents v. Arizona York Refrigeration Co., 115 Ariz. 338, 565 P.2d 518 (1977). Its funds are state funds. The fact that such funds may have been derived from insurance proceeds does not alter this conclusion. Id. Markowitz v. United States, 650 F.2d 205 (9th Cir. 1981).In support of its holding the district court observed as follows:Analysis of the statutory scheme governing the Board of Regents also weighs in favor of a finding of Eleventh Amendment immunity. The Board of Regents consists of eight members appointed by the governor, and the governor and the state superintendent of public instruction serve as ex officio members. Ariz.Rev.Stat.Ann. § 15-721(A) (1972). The powers and duties of the Board of Regents are regulated by the state legislature. Id. at § 15-725. In addition, the Board of Regents is required to submit a detailed report to the governor after the close of each fiscal year. Id. at § 15-727. Under similar circumstances, other courts have concluded that a suit against the Board of Regents must be considered a suit against the state for Eleventh Amendment purposes. Martin v. University of Louisville, 541 F.2d 1171, 1174 (6th Cir. 1976); Jagnandan v. Giles, 538 F.2d 1166, 1173-76 (5th Cir. 1976). The reasoning in those cases is sound and will be followed in the present action. Thus, the action against the Board of Regents must be dismissed.We find these observations persuasive.The position of Arizona State University is not materially different for Eleventh Amendment purposes. Although it is contended that it is an activity carried on by the Arizona Board of Regents and thus not a jural entity, our holding would not be otherwise even if this were true. Its funds would be state funds from which the damages appellant seeks must be paid.The position of appellees Miller, Kush, Maskill, and Horton is different, however. Count Three charged Miller with vicarious liability for the acts of Kush and Maskill. Such liability, if established, would rest solely upon his position as an official of Arizona State University. To that extent the appellant's suit is against the University and the Board of Regents, which, as we have held, is a suit against the state for Eleventh Amendment purposes. Cf. Stone v. Arizona Highway Commission, 93 Ariz. 384, 393-94, 381 P.2d 107, 113 (1963) (state employee not personally liable under doctrine of respondeat superior). The fact that Miller is the nominal defendant in this aspect of the plaintiff's case does not preclude the operation of the Eleventh Amendment's bar. See Ford Motor Co. v. Department of Treasury, 323 U.S. at 464, 65 S.Ct. at 350.Miller, however, is also charged in Count Three with a failure to supervise Kush and Maskill adequately. This amounts to an allegation under general law of wrongful failure to act by a state official. Cf. Stone v. Arizona Highway Commission, 93 Ariz. at 394, 381 P.2d at 113-14 (state officials may be held liable for their own acts of misfeasance). As to such allegations the Eleventh Amendment bar is inapplicable. See Hopkins v. Clemson Agricultural College, 221 U.S. at 642-43, 31 S.Ct. at 656; New England Patriots Football Club, Inc. v. University of Colorado, 592 F.2d at 1201. Neither the district court nor Miller have pointed to any law of the State of Arizona that would require that any damages, for which Miller would be liable for his failure to supervise Kush and Maskill properly, be paid from state funds. The mere fact that his wrongs occurred in the scope of his employment, in the sense that term is generally used in agency law, does not require the conclusion that the suit in this respect is against the state. It is true, of course, that by reason of the acts of Miller, the appellant under Arizona law may have a claim in state court against the State of Arizona. See Ariz.Rev.Stat. § 12-821 to 826. The fact that such a claim may exist does not invoke the Eleventh Amendment's bar. Nor does Ariz.Rev.Stat. § 41-621(A)(3) have that effect. It does no more than authorize the acquisition of liability insurance on behalf of the state, its agencies, and its employees.Our reasoning is equally applicable to Kush and Maskill. The district court extended the Eleventh Amendment bar to these appellees on the ground that "the alleged acts were committed in the interest of the Arizona State University football program" and that nothing suggests that "the alleged conduct falls outside the scope of Kush's or Maskill's scope of employment." This is not a sufficient ground to invoke the Amendment's bar. That bar is not automatically applicable to a suit brought against a state official in his individual capacity alleging the commission by him of a common law tort in the course of his employment. Johnson v. Lankford, 245 U.S. 541, 38 S.Ct. 203, 62 L.Ed. 460 (1918). Federal jurisdiction, of course, must be established, but that is no problem in this case because of the existence of diversity jurisdiction.III.COLLATERAL ESTOPPEL AND RES JUDICATAIt follows that the appellant's claims against Miller, Kush and Maskill are not entirely barred by the Eleventh Amendment. Inasmuch as appellant has established jurisdiction based on diversity with respect to these defendants, it is necessary to reverse and remand to permit the appellant to proceed to trial on such claims based on Arizona law as are appropriate. These would include proceedings based on the general tort law of Arizona.It is likely, however, that some or all of appellant's claims will be barred by the doctrines of res judicata and collateral estoppel. Proceedings in the state court have occurred with results to date adverse to appellant. Although the complete record of those proceedings is not a part of the record in this case, we have been informed that the state court eschewed consideration of the constitutional claims on the ground that the district court's order dismissing those claims was res judicata. The fact that these issues were not considered in the state court does not prevent its judgment from having res judicata effect in the federal forum. When a party seeks relief in state court for an alleged wrong, he is thereafter barred from seeking relief on constitutional grounds "from the same defendant, for the same wrong, in federal court." Gallagher v. Frye, 631 F.2d 127, 128-29 (9th Cir. 1980); Scoggin v. Schrunk, 522 F.2d 436, 437 (9th Cir. 1975), cert. denied,Try vLex for FREE for 3 days
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