U.S. District Judge JOAN H. LEFKOW.
On February 10, 2014, Edmund Michalowski filed suit against then-Illinois State Treasurer Dan Rutherford and Kyle Ham, Michalowski's direct supervisor, alleging violations of the First Amendment and the Equal Protection Clause of the Fourteenth Amendment under 42 U.S.C. § 1983. (Dkt.1.) The court dismissed Michalowski's
Four motions to dismiss have been filed: (1) by the Romney Campaign (dkt. 39); (2) by Ham, Conrad, the State of Illinois, and the ISTO ("the State Defendants") (dkt. 44); (3) by Rutherford (dkt. 47); and (4) by the Rutherford Campaign (dkt. 51). Rutherford, Ham, and Conrad ("the individual defendants") also have moved for sanctions against Michalowski's counsel (dkt. 41), and Michalowski has moved to strike certain exhibits attached to the State Defendants' and the Romney Campaign's motions to dismiss. (Dkt. 68.) For reasons stated below, Michalowski's First Amendment and Title VII claims (Counts III and V) are dismissed with prejudice. Michalowski's RICO claims (Counts I and II) are dismissed without prejudice. The motion to dismiss Michalowski's hostile work environment claim (Count IV) is denied. Michalowski's motion to strike is granted, and the individual defendants' motion for sanctions is denied.
Dan Rutherford was elected Treasurer of the State of Illinois in November 2010 and assumed office in January 2011. (Compl.¶ 12.) As of the filing of the amended complaint, Kyle Ham was chief of staff and Curt Conrad the deputy chief of staff for the ISTO and statewide political director for the Rutherford Campaign. (Id. ¶¶ 6-7.) Rutherford hired Michalowski as the Deputy Director of Community Affairs for the ISTO in January 2011. (Id. ¶ 13.) Michalowski's official job duties included the "conceptualization, design and management of statewide marketing policies and programs, and the building of partnerships with diverse groups including chambers of commerce, labor unions, and veteran, ethnic, religious and civic organizations." (Id. ¶ 15.) Michalowski reported directly to Ham, who reported to Rutherford. (Id. ¶¶ 16-17.) In March 2011, Michalowski received a promotion in title to Director of Community Affairs. (Id. ¶ 19.) In January 2012, his job was expanded to include the management of the statewide marketing division. (Id. ¶ 49.) He did not receive a raise as a result of either promotion. (Id. ¶¶ 20, 49.)
Soon after Michalowski started at the ISTO, Rutherford told him that he had been hired because he was a Democrat and Rutherford wanted to appear to as a centrist candidate for governor of Illinois and gain "fresh" sources of campaign funding. (Id. ¶¶ 28-29, 62.) Rutherford created a spreadsheet listing potential donors and the amount that Michalowski needed to secure from each one for the Rutherford Campaign. (Id. ¶ 31.)
As an example of the work he was forced to perform, Michalowski alleges that he was required to coordinate groups of college students to collect signatures for the Romney Campaign. (Id. ¶¶ 53-54.) After the students failed to collect enough signatures, Rutherford refused to pay them and told Michalowski that he would be fired if he did not cover the cost of the signature drive out of his own pocket. (Id. ¶¶ 55-57.)
In addition, Michalowski was ordered to donate money to "non-office government functions that would benefit both [the] Rutherford and the Romney Campaigns." (Id. ¶ 50.) When Michalowski complained about the order, Ham informed him that Rutherford required the donations in lieu of political donations to the campaigns. (Id. ¶ 51.) Michalowski gave the demanded cash donation to Ham at the ISTO in Chicago. (Id. ¶ 52.)
Other ISTO employees also were forced to work for the Rutherford Campaign. (Id. ¶ 58.) For example, Rutherford required ISTO employees to accompany him to political campaign events and take pictures, which were then mailed to individuals using reduced postage rates available to the State. (Id. ¶ 59.) Rutherford also used State-employed drivers to transport him to campaign events. (Id. ¶ 64.) When Michalowski objected to these practices, Rutherford, Conrad, and Ham told him he was a "troublemaker" and that ISTO resources were needed for Rutherford's campaign for governor. (Id. ¶¶ 61-63, 65.)
In the summer and fall of 2013, Ham and Conrad directed Michalowski to organize community marketing events with groups likely to vote for Rutherford. (Id. ¶¶ 66-68.) Rutherford also ordered ISTO employees to find personal contacts to fill the community affairs and marketing calendar to benefit Rutherford's campaign for governor. (Id. ¶ 69.) When Michalowski objected, Ham threatened that Michalowski would be fired if he did not follow Rutherford's direction. (Id. ¶ 70.)
Michalowski asserts that he was passed over for raises and promotions during his time at the ISTO and that employees who did not complain about the forced work for the Rutherford and Romney campaigns were rewarded with raises and benefits. (Id. ¶¶ 73-74.) In late 2013, Rutherford and Ham created a "hit list" of ISTO employees, including Michalowski, who would be fired because they did not adequately support the Rutherford and Romney campaigns. (Id. ¶ 72.) Michalowski resigned from the ISTO in February 2014. (Id. ¶¶ 4, 103.)
Michalowski alleges six specific instances of sexual harassment. First, while Michalowski was at Rutherford's house in Chenoa, Illinois on April 2, 2011, Michalowski alleges that Rutherford entered his bedroom and grabbed at his genitals. (Id. ¶¶ 75-79.) Michalowski left Rutherford's house immediately. (Id. ¶ 79.) Second, Conrad texted Michalowski in July 2011, "The treasurer specifically asked that you wear a tank top. Totally your decision if you want to ignore. I am just a messenger." (Id. ¶ 82.) Third, while at a bar with ISTO employees in August 2011, Rutherford complained that Michalowski was talking to a group of women rather than to him and told Michalowski, "[I]f you go home with me, you can have anything you want in the office." (Id. ¶¶ 83-89.) Fourth, Rutherford asked Michalowski to go to his hotel room after a reception at the Republican National Convention in August 2012 and became angry when Michalowski refused. (Id. ¶¶ 91-93.) Fifth, at a holiday party in December 2013, Rutherford rubbed Michalowski's shoulders and said, "[Y]ou need a full body massage." (Id. ¶ 95.) And sixth, in December 2013, Rutherford told another ISTO employee in Michalowski's presence, "I can see your chest through that shirt and t-shirt. Shake it baby, shake it." (Id. ¶ 97.)
Michalowski reported the April 2011, August 2011, and August 2012 events to Ham, who responded that the same things had happened to him, told Michalowski he was not a team player, and stated "at least we have job security." (Id. ¶¶ 80-81, 89-90, 94.) Michalowski alleges that he filed a charge of discrimination against the ISTO and/or the State of Illinois on February 14, 2014. (Id. ¶¶ 146-47.) Michalowski received a notice of right to sue on November 18, 2014. (Dkt. 73.)
A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) challenges a complaint for failure to state a claim on which relief may be granted. Fed. R. Civ. P. 12(b)(6). In ruling on a Rule 12(b)(6) motion, the court accepts as true all well-pleaded facts in the plaintiff's complaint and draws all reasonable inferences from those facts in the plaintiff's favor. Active Disposal, Inc., 635 F.3d at 886. To survive a Rule 12(b)(6) motion, the complaint must not only provide the defendant with fair notice of a claim's basis but must also establish that the requested relief is plausible on its face. See Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009); Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). The allegations in the complaint must be "enough to raise a right to relief above the speculative level." Twombly, 550 U.S. at 555, 127 S.Ct. 1955. At the same time, the plaintiff need not plead legal theories; it is the facts that count. Hatmaker v. Mem'l Med. Ctr., 619 F.3d 741, 743 (7th Cir.2010); see also Johnson v. City of Shelby, 574 U.S. ___, 135 S.Ct. 346, 346, 190 L.Ed.2d 309 (2014) (per curiam) ("Federal pleading rules call for `a short and plain statement of the claim showing the pleader is entitled to relief'.... [T]hey do not countenance dismissal of a complaint for imperfect statement of the legal theory supporting the claim asserted.").
Michalowski claims that all defendants (other than the ISTO and the State of Illinois) violated 18 U.S.C. § 1962(c) by conducting the affairs of the ISTO through a pattern of racketeering activity. To survive a motion to dismiss a § 1962(c) claim, a plaintiff must have standing and must
To state a civil RICO claim, a plaintiff must allege "an injury to [his] business or property result[ed] from the underlying acts of racketeering." Empress Casino Joliet Corp. v. Johnston, 763 F.3d 723, 728-29 (7th Cir.2014) (alterations in original) (quoting Haroco, Inc. v. Am. Nat'l B & T Co. of Chi., 747 F.2d 384, 398 (7th Cir.1984)). "The terms `business or property' are, of course, words of limitation which preclude recovery for personal injuries and the pecuniary losses incurred therefrom." Doe v. Roe, 958 F.2d 763, 767 (7th Cir.1992) (citation omitted). For purposes of his claim under § 1962(c), Michalowski argues that his injuries are (1) making a forced contribution to "non-office government functions" that benefitted the Rutherford and Romney campaigns, (2) performing unpaid labor for the campaigns, and (3) covering the costs of the failed signature drive for the Romney Campaign.
Michalowski's allegations that he was forced to pay the cost of the signature drive and do unpaid political work are sufficient to state an injury to property for purposes of RICO. With regard to covering the costs of the drive, "[m]oney, of course, is a form of property." Reiter v. Sonotone Corp., 442 U.S. 330, 338, 99 S.Ct. 2326, 60 L.Ed.2d 931 (1979); see also Cobbs v. Sheahan, 319 F.Supp.2d 865, 870 (N.D.Ill.2004) (noting that there "is no question that plaintiff here properly alleged that defendants obtained and attempted to obtain property" because defendants allegedly demanded a political contribution in exchange for a patronage job). As for Michalowski's unpaid labor, courts may look to state law to determine whether a particular interest constitutes property, and Illinois law recognizes that "individuals ... have a compensable property interest in their toil and labor." Doe, 958 F.2d at 768 (citing Mowrey v. Mowrey, 65 N.E.2d 234, 238, 328 Ill.App. 92 (1946)); see also Doe I v. The Gap, Inc., No. CV-01-0031, 2001 WL 1842389, at *4 & n.5 (D.N.Mar.I. Nov. 26, 2001) (collecting cases and finding plaintiffs' allegations that they were forced to work with no pay sufficient to show injury to property for purposes of RICO standing). Accordingly, Michalowski has alleged facts supporting his standing to sue.
RICO was designed to prevent the infiltration of a legitimate "enterprise," defined as "any individual, partnership, corporation, association, or other legal entity, and any union or group of individuals associated in fact although not a legal entity." 18 U.S.C. § 1961(4). Michalowski alleges that the enterprise is the ISTO. (Compl.¶ 106.) The State of Illinois and its agencies may be considered enterprises for purposes of RICO. See United States v. Warner, 498 F.3d 666, 696-97 (7th Cir. 2007).
For a defendant to be liable under § 1962(c) for the conduct of an enterprise, it must participate "in the operation or management of the enterprise itself." Reves v. Ernst & Young, 507 U.S. 170, 183, 113 S.Ct. 1163, 122 L.Ed.2d 525 (1993). There is no dispute that Rutherford, Ham, and Conrad participated in the operation and management of the ISTO and thus the amended complaint adequately alleges this element with respect to the individual defendants.
Vicarious liability only applies in civil RICO claims where "(1) the corporation has derived some benefit from the RICO violation and (2) imposing vicarious liability is not inconsistent with the intent of Congress."
Although Michalowski alleges that the Romney Campaign benefited from the operation of the alleged scheme, he does not allege facts from which one could infer that the Romney Campaign was a knowing member, let alone a "central figure," in the alleged scheme of racketeering activity at the ISTO. Michalowski alleges only that Rutherford was appointed as the Illinois chair for the Romney Campaign and that he and Conrad required that Michalowski perform work for and donate money to the campaign. Michalowski's allegations do not suggest that the Romney Campaign (as an entity separate from Rutherford) encouraged, consented to, or even knew about the actions attributed to Rutherford and Conrad in the amended complaint. See Ash, 1986 WL 10379, at *2. Thus, Michalowski has failed to state a claim under § 1962(c) against the Romney Campaign.
Michalowski also argues that the Rutherford Campaign should be held vicariously liable for the actions of its statewide political director, Conrad. Again Michalowski sufficiently alleges that the Rutherford Campaign benefited from the alleged scheme through monetary contributions and Michalowski's labor. And, unlike the allegations with respect to the Romney Campaign, Michalowski's allegations against the Rutherford Campaign indicate that its statewide political director Conrad and Rutherford himself were involved in the alleged misconduct. (See Compl. ¶ 8.) Because the Rutherford Campaign can be charged with the knowledge and intent of its high-level officers, including Conrad, see Ashland Oil, Inc. v. Arnett, 875 F.2d 1271, 1281 (7th Cir.1989), it may be held vicariously liable for the actions of its officers that are to its benefit. Cf. Gruber v. Prudential-Bache Secs., Inc., 679 F.Supp. 165, 181-82 (D.Conn.1987) (declining to impose vicarious liability on a corporation for the racketeering acts of "low-level" employees and noting that a plaintiff must allege knowledge or reckless indifference at the "high corporate level"). Michalowski adequately alleges the conduct element of § 1962(c) against the Rutherford Campaign.
Racketeering activity is limited to specific criminal acts, called predicate acts, set forth in 18 U.S.C. § 1961(1). Section 1961(1)(A) includes "any act or threat involving... extortion ... which is chargeable under State law and punishable by imprisonment for more than one year." 18 U.S.C. § 1961(1)(A).
In this case, Michalowski alleges that the individual defendants
Illinois' official misconduct statute forbids a public officer, in his official capacity, from "[k]nowingly perform[ing] an act which he knows he is forbidden by law to perform." 720 Ill. Comp. Stat. 5/33-3(a)(2). Violation is a class 3 felony punishable by two to five years in prison. See 720 Ill. Comp. Stat. 5/33-3(c); 730 Ill. Comp. Stat. 5/5-4.5-40. Michalowski alleges that defendants knowingly performed acts forbidden by law by
Racketeering activity under § 1961(1)(A) includes "any act or threat involving ... extortion ... which is chargeable [as a felony] under State law[.]" Illinois, however, does not have a crime of extortion. "Instead, conduct that would be described as `extortion' under the laws of most other jurisdictions is prohibited in Illinois under the heading of `intimidation.'" United States v. Unthank, 109 F.3d 1205, 1210 (7th Cir.1997).
720 Ill. Comp. Stat. 5/12-6(a).
Although it is clear that the Illinois crime of intimidation cannot serve as a RICO predicate if the plaintiff does not allege that the defendant demanded something of value, there is disagreement as to whether the crime can serve as a predicate act if the plaintiff does so allege.
That said, whether conditioning employment decisions on campaign contributions is extortionate is not settled. Compare Micnerski v. Sheahan, 2003 WL 22159025, at **2-3 (N.D.Ill. Sept. 9, 2003) (not extortionate), with Cobbs, 319 F.Supp.2d at 870-71 (extortionate). The plaintiffs in Cobbs and Micnerski both worked at the Cook County Sheriff's Department and alleged that they suffered adverse employment decisions when they objected to routine requests to make contributions to the sheriff's campaign. See Cobbs, 319 F.Supp.2d at 869; Micnerski, 2003 WL 22159025, at *1. In Micnerski, the court, expressing concern about expansion of the compass of predicate crimes, concluded that it would be "unreasonable to extend the reach of the RICO statute to allow the conduct complained of here to pass muster as a predicate act." Micnerski, 2003 WL 22159025, at **2-3 (citing Scheidler, 537 U.S. at 412, 123 S.Ct. 1057). In Cobbs, the court held that "demand for a political contribution in return for a patronage job constitutes extortion." Cobbs, 319 F.Supp.2d at 870. Although both cases are well reasoned, the court adopts the view of Cobbs that explicitly conditioning an employment decision on campaign contributions qualifies as extortion. In this case, Rutherford had the right to terminate Michalowski for any lawful reason, but if he (or the other defendants) obtained contributions and unpaid labor from Michalowski through threatened termination from employment, the conduct would be extortionate, and therefore unlawful.
"[T]o prove a pattern of racketeering activity a plaintiff or prosecutor must show that the racketeering predicates are related, and that they amount to or pose a threat of continued criminal activity." H.J. Inc. v. Northwestern Bell Telephone Co., 492 U.S. 229, 239, 109 S.Ct. 2893, 106 L.Ed.2d 195 (1989). At a minimum, there must be at least two predicate acts of racketeering activity over a ten-year period, 18 U.S.C. § 1961(5), and relationship between the predicate acts and a threat of continuing criminal activity—in other words, "relatedness" and "continuity." See H.J. Inc., 492 U.S. at 239, 109 S.Ct. 2893. This standard is known as the "continuity plus relationship" test. DeGuelle v. Camilli, 664 F.3d 192, 199 (7th Cir.2011) (citing H.J. Inc., 492 U.S. at 239, 242, 109 S.Ct. 2893).
Michalowski includes several allegations of extortionate activity. He states, "On multiple occasions throughout Plaintiff's employment, Defendants Rutherford,
Continuity, however, is not demonstrated. "[A] RICO plaintiff can satisfy the continuity prong either by (1) demonstrating a close-ended series of conduct that existed for such an extended period of time that a threat of future harm is implicit, or (2) an open-ended series of conduct that, while short-lived, shows clear signs of threatening to continue into the future." Roger Whitmore's Auto Services, Inc. v. Lake County, Ill., 424 F.3d 659, 672 (7th Cir.2005) (quoting H.J. Inc., 492 U.S. at 241, 109 S.Ct. 2893). Continuity turns on "(1) the number and variety of predicate acts and the length of time over which they were committed, (2) the number of victims, (3) the presence of separate schemes, and (4) the occurrence of distinct injuries." Id. (citing Morgan v. Bank of Waukegan, 804 F.2d 970, 975 (7th Cir. 1986)). No single factor is dispositive. Rather, the analysis is "fact-specific" and aimed at achieving a "`natural and commonsense'" result "consistent with Congress's concern with long-term criminal conduct." Id. (quoting Olive Can Co. v. Martin, 906 F.2d 1147, 1151 (7th Cir. 1990)).
"[A] closed period of racketeering activity involves a course of criminal conduct that has ended." Id. at 672. Because the campaigns ended with the elections,
As stated, because the campaigns have ended, there is little need to address open-ended continuity. Obviously, the facts alleged in the amended complaint do not fulfill relevant factors such as a "specific threat of repetition" or predicates that "can be attributed to a defendant operating as part of a long-term association that exists for criminal purposes." Vicom, Inc. v. Harbridge Merchant Services, Inc., 20 F.3d 771, 782 (7th Cir.1994) (citation omitted) (internal quotation marks omitted). As in Roger Whitmore's, Michalowski "pleaded himself out of showing a continuing threat of continued activity" because the alleged schemes had a natural ending point when the election efforts came to a close. Roger Whitmore's, 424 F.3d at 674. Because Michalowski has failed to allege a pattern of racketeering activity, his § 1962(c) claim must be dismissed. See Luis v. Smith Partners & Assocs., Ltd., No. 12 C 2922, 2012 WL 5077726, at **4-6 (N.D.Ill. Oct. 18, 2012) (dismissing RICO claim when plaintiffs failed to plead either closed- or open-ended continuity).
Count II alleges that all of the defendants other than the State of Illinois and the ISTO engaged in a § 1962(d) RICO conspiracy to violate § 1962(c). Where a plaintiff fails to allege a claim under § 1962(c), however, the plaintiff's § 1962(d) claim based on the same nucleus of operative facts fails as well. See Stachon v. United Consumers Club, Inc., 229 F.3d 673, 677 (7th Cir.2000); Cook-Illinois Corp. v. Teamsters Local No. 777, No. 11 CV 8884, 2012 WL 1655976, at *6 (N.D.Ill. May 10, 2012); Meier v. Musburger, 588 F.Supp.2d 883, 911-12 (N.D.Ill.2008) (noting that the "cases are uniform in holding that failure to make out a substantive RICO claim requires dismissal of a conspiracy claim based on the same nucleus of operative fact" because "[a] conspirator must intend to further an endeavor which, if completed, would satisfy all of the elements of a substantive RICO offense under § 1962(a), (b), or (c)"). Here, for the reasons stated above Michalowski's claim under § 1962(c) fails against all of the RICO defendants, and Michalowski's § 1962(d) claim is based on the same allegations. Accordingly, his § 1962(d) claim must be dismissed.
Michalowski claims that the individual defendants violated his First Amendment right "to not have an affiliation or to support an official or political party in power." (Compl. ¶ 118.) Michalowski's claim is slightly different from the typical "`political patronage hiring and firing"' claims
A state actor may not make employment decisions based on political affiliation unless "the nature of [the public official's] job makes political loyalty a valid qualification." Riley v. Blagojevich, 425 F.3d 357, 359 (7th Cir.2005); see also Branti v. Finkel, 445 U.S. 507, 518, 100 S.Ct. 1287, 63 L.Ed.2d 574 (1980); Elrod v. Burns, 427 U.S. 347, 367-68, 96 S.Ct. 2673, 49 L.Ed.2d 547 (1976). Political loyalty is a valid qualification when the job "involves the making of policy and thus the exercise of political judgment or the provision of political advice" or "gives the holder access to his political superiors' confidential politically sensitive thoughts." Riley, 425 F.3d at 359. For example, the Seventh Circuit determined that the position of Bureau Chief of Accounting and Auditing for the Illinois Department of Transportation ("IDOT") was a policymaking position because its holder had broad discretion over IDOT accounting and auditing. Allen v. Martin, 460 F.3d 939, 943-46 (7th Cir. 2006). The job responsibilities included establishing procedures and informing management of possible problems and "considerable input into government decisionmaking and the implementation of goals stemming from that process" because of the position holder's ability to direct his concerns and possible solutions to his superior. Id. at 945. In addition, the "effective and reliable execution" of the Bureau Chief's job was of "great political value" and had "great impact on the administration's public reputation." Id. In concluding that the bureau chief was a policymaking position, the Seventh Circuit emphasized that the ability to provide input into government decision making was critical to its determination and it was not necessary that the position holder be able to set his own goals or make final decisions. Id.
Michalowski began as Deputy Director of Community Affairs at the ISTO and was promoted to Director of Community Affairs about three months later. (Compl.¶¶ 4, 19.) Although the amended complaint alleges that these positions "do not require a political affiliation" (id. ¶ 115), it describes the specific job activities as including the "conceptualization, design and management of statewide marketing policies and programs, and the building of partnerships with diverse groups including chambers of commerce, labor unions, and veteran, ethnic, religious and civic organizations." (Id. ¶ 15.) These responsibilities are similar to those detailed in Allen. Michalowski had discretion to create policy and programs run by the ISTO; he had the ability to direct concerns and solutions to his superiors and the opportunity to provide input into government policy. Further, the effective and reliable execution of Michalowski's job that, based on his own allegations, included significant interaction with community groups, could have affected the ISTO's public reputation. Although Michalowski argues that the determination whether his position was a policymaking position is fact intensive and should be deferred until summary judgment, the court concludes that the position included policymaking authority based
Michalowski maintains that even if he was a policymaking employee, his position did not require him to support the campaigns, which Michalowski labels "external political organizations." (Dkt. 56 at 18.) Instead, according to Michalowski, he was only obligated to support the defendants' political agenda as it related to the operation of the ISTO. (Id.) The distinction drawn by Michalowski is unpersuasive. While the government may not retaliate against a policymaking employee for "speech on public matters unconnected to political affiliation or policy viewpoints," Embry v. City of Calumet City, Ill., 701 F.3d 231, 235 (7th Cir.2012) (citations omitted), it is undeniable that support (or lack thereof) for a political campaign relates to political affiliation and policy viewpoints. Political affiliation and support for political campaigns are often intimately intertwined, and it is difficult, and in some circumstances impossible, to distinguish between the two. See Branti, 445 U.S. at 518, 100 S.Ct. 1287 (noting that a state governor may appropriately determine that the duties of his assistants "cannot be performed effectively unless those persons share his beliefs and party commitments" (emphasis added)). In this case, the nature of Michalowski's position made political affiliation—of which support for particular campaigns is a part—a valid qualification. Thus, the requirement that Michalowski exhibit support for the campaigns is not a First Amendment violation, even if it may be a violation of Illinois law. See, e.g., 5 Ill. Comp. Stat. 430/5-15(b) ("At no time shall any executive... branch ... officer ... intentionally misappropriate the services of any State employee by requiring that State employee to perform any prohibited political activity ... as a condition of State employment.").
Finally, although not clearly articulated in the amended complaint, Michalowski contends in his response that his First Amendment free speech rights were violated when the defendants retaliated against him for complaining about the use of the ISTO's resources to campaign for Rutherford and Romney. A public employee bringing a First Amendment retaliation claim must establish that "(1) his speech was constitutionally protected, (2) he has suffered a deprivation likely to deter speech, and (3) his speech was at least a motivating factor in the employer's action." Swetlik v. Crawford, 738 F.3d 818, 825 (7th Cir.2013) (citation omitted).
For a public employee's speech to be protected, he must establish that (1) the speech was made as a private citizen, (2) it addressed a matter of public concern, and (3) his interest in expressing the speech was not outweighed by the State's interest as an employer in promoting effective and efficient public service. Id.; see also Kubiak v. City of Chi., No. 14 C 1159, 2014 WL 4248034, at *2 (N.D.Ill. Aug. 27, 2014). Michalowski's complaints fail the first prong of this test because he raised them to his superiors as part of his official duties rather than in his capacity as a private citizen. See Vose v. Kliment, 506 F.3d 565, 570 (7th Cir.2007) (police officer reporting misconduct of officers in another unit was not acting as a private citizen); Sigsworth v. City of Aurora, Ill., 487 F.3d 506, 511 (7th Cir.2007) (plaintiff was not speaking as a citizen when he reported his colleagues' misconduct to supervisors); Foster v. Blagojevich, No. 04 C 2069, 2006 WL 1375060, at *5 (N.D.Ill. May 18, 2006) (assistant warden acting within his official duties in speaking out against unlawful hiring practices and other issues at department of corrections). Michalowski's First Amendment claim against Rutherford, Ham, and Conrad must be dismissed.
Michalowski brings Count IV pursuant to 42 U.S.C. § 1983 and asserts gender discrimination in the form of sexual harassment against Rutherford in violation of the Equal Protection Clause of the Fourteenth Amendment. The allegations point to a hostile work environment claim based on gender. A hostile work environment claim requires Michalowski satisfy the same requirements as a Title VII sexual harassment claim and also show that Rutherford intended to discriminate against him based on his gender. Trautvetter v. Quick, 916 F.2d 1140, 1149 (7th Cir.1990); Chivers v. Central Noble Cmty. Schs., 423 F.Supp.2d 835, 851 (N.D.Ind. 2006).
To state a sexual harassment claim based on a hostile working environment under Title VII, Michalowski must allege that he
Valentine v. City of Chi., 452 F.3d 670, 677 (7th Cir.2006) (quoting Parkins v. Civil Constructors of Ill., Inc., 163 F.3d 1027, 1032 (7th Cir.1998)) (internal quotation marks omitted). Sexual harassment that is so "severe or pervasive as to alter the conditions of the victim's employment and creates an abusive working environment violates Title VII." Faragher v. City of Boca Raton, 524 U.S. 775, 786, 118 S.Ct. 2275, 141 L.Ed.2d 662 (1998) (citation omitted) (internal quotation marks omitted); Patton v. Keystone RV Co., 455 F.3d 812, 815-16 (7th Cir.2006). The work environment must be "both objectively and subjectively offensive, one that a reasonable person would find hostile or abusive, and one that the victim in fact did perceive to be so." Faragher, 524 U.S. at 787, 118 S.Ct. 2275; Hilt-Dyson v. City of Chi., 282 F.3d 456, 463 (7th Cir.2002). Rutherford asserts that Michalowski has not alleged conduct that was objectively offensive and severe or pervasive.
Rutherford also asserts that Michalowski has failed to allege that Rutherford intended to discriminate against him based on his gender because Michalowski's allegations of intent are "conclusory." (Dkt. 49 at 10.) But intent may be alleged generally and Michalowski alleges, "Rutherford's sexual harassment of Plaintiff was based upon Plaintiff's gender." (Compl.¶ 130.) This general allegation of intent is sufficient. See Bennett v. Schmidt, 153 F.3d 516, 518 (7th Cir.1998) ("Because success ... under the equal protection clause ... enforced via 42 U.S.C. § 1983 ... requires proof of intentional discrimination, a plaintiff might want to allege intent—although this is implied by a claim of racial `discrimination.'").
Next, Rutherford contends that even if Michalowski has stated a hostile work environment claim, Rutherford is entitled to qualified immunity as a matter of law. (Dkt. 49 at 13.) Government actors performing discretionary functions are "`shielded from liability for civil damages insofar as their conduct does not violate clearly established statutory or constitutional rights of which a reasonable person would have known.'" Sallenger v. Oakes, 473 F.3d 731, 739 (7th Cir.2007) (quoting Harlow v. Fitzgerald, 457 U.S. 800, 818, 102 S.Ct. 2727, 73 L.Ed.2d 396 (1982)). To determine whether qualified immunity applies, courts consider (1) whether the facts alleged, viewed in the light most favorable to the plaintiff, establish the violation of a constitutional right and (2) if so, whether that right was clearly established at the time of the alleged violation. Saucier v. Katz, 533 U.S. 194, 201, 121 S.Ct. 2151, 150 L.Ed.2d 272 (2001). If the answer to either of the two
While qualified immunity must be resolved at the earliest possible stage, see Leatherman v. Tarrant Cnty. Narcotics Intelligence & Coordination Unit, 507 U.S. 163, 166, 113 S.Ct. 1160, 122 L.Ed.2d 517 (1993), the Seventh Circuit has cautioned that this rule "must be tempered by the notice pleading requirements of Rule 8." Tamayo v. Blagojevich, 526 F.3d 1074, 1090 (7th Cir.2008) (citing Jacobs v. City of Chi., 215 F.3d 758, 765 n. 3 (7th Cir.2000)); see also Alvarado v. Litscher, 267 F.3d 648, 651-52 (7th Cir.2001) ("Because an immunity defense usually depends on the facts of the case, dismissal at the pleading stage is inappropriate: The plaintiff is not required initially to plead factual allegations that anticipate and overcome a defense of qualified immunity."). Here, as discussed above, Michalowski alleged facts sufficient to state a hostile work environment claim, and he has thus satisfied the first prong. Moreover, the right to be free from sexual harassment in the workplace was clearly established at the time of the alleged violation. See Trautvetter, 916 F.2d at 1149 (recognizing a claim for sexual harassment under the Equal Protection Clause pursuant to § 1983). Thus, taking the facts alleged in the amended complaint as true and drawing all inferences in Michalowski's favor, Rutherford violated a clearly established constitutional right and he is not entitled to dismissal based on qualified immunity. See Tamayo, 526 F.3d at 1090-91; Terry v. Talmontas, No. 11 CV 6083, 2013 WL 707907, at **6-7 (N.D.Ill. Feb. 26, 2013) (declining to find qualified immunity at the motion to dismiss stage).
Michalowski asserts a claim of sexual harassment against the ISTO and the State of Illinois under Title VII. The ISTO and the State of Illinois correctly note that public appointees involved in policymaking are not entitled to relief under Title VII. See 42 U.S.C. § 2000e(f). An individual is a policymaking appointee if "`the position held by the individual authorizes, either directly or indirectly, meaningful input into governmental decision-making on issues where there is room for principled disagreement on goals or their implementation.'" Opp v. Off. of State's Attorney of Cook Cnty., 630 F.3d 616, 619 (7th Cir.2010) (quoting Americanos v. Carter, 74 F.3d 138, 141 (7th Cir. 1996)). The test used to determine if an individual is an employee within the meaning of Title VII "is essentially indistinguishable" from that used to ascertain whether a plaintiff is a policymaking employee in the First Amendment context. Americanos, 74 F.3d at 144. As discussed above, Michalowski's position involved substantive input into government policy and the execution of his job would have affected the public reputation of the ISTO. For these reasons and the others discussed previously, the court finds that Michalowski was a policymaking appointee within the meaning of Title VII, and therefore, his claim for sexual harassment under Title VII must be dismissed.
Finally, Rutherford, Ham, and Conrad move for sanctions against Michalowski's counsel. Federal Rule of Civil Procedure 11(b)(2) provides that by "presenting to the court a pleading, written motion, or other paper ... an attorney ... certifies that to the best of the person's knowledge, information, and belief, formed after an inquiry reasonable under the circumstances... the claims, defenses, and other legal contentions are warranted by existing law or by a nonfrivolous argument for extending, modifying, or reversing existing
Although the court agrees with the individual defendants that Michalowski's counsel failed to allege RICO claims adequately, counsel's legal arguments are not without some support in this circuit. As discussed above, the use of official misconduct under 720 Ill. Comp. Stat. 5/33-3(a)(2) is not entirely foreclosed by controlling law. Likewise, there is authority for the proposition that intimidation under 720 Ill. Comp. Stat. 5/12-6 can serve as a predicate act for purposes of RICO. See Ruiz, 770 F.Supp.2d at 942; Overnite Transp. Co., 704 F.Supp. at 862; Roger Whitmore's Auto. Servs., Inc., 2002 WL 959587, at *3 n.2. In such circumstances, sanctions are disfavored.
For the foregoing reasons, the motions to dismiss filed by the Romney Campaign (dkt. 39); Ham, Conrad, the State of Illinois, and the Illinois State Treasurer's Office (dkt. 44); Rutherford (dkt. 47); and the Rutherford Campaign (dkt. 51) are granted in part and denied in part. Michalowski's First Amendment and Title VII claims (Counts III and V) are dismissed with prejudice. Michalowski's RICO claims (Counts I and II) are dismissed without prejudice. The motion to dismiss Michalowski's § 1983 hostile work environment claim (Count IV) is denied. Michalowski's motion to strike (dkt. 68) is granted, and Rutherford's, Ham's, and Conrad's motion for sanctions (dkt. 41) is denied. This case is continued for a status hearing on March 11, 2015 at 10:15 a.m. for plaintiff to indicate whether he intends to file amended RICO claims. Time for defendant Rutherford to answer shall be held in abeyance until the status hearing.