OWEN M. PANNER, District Judge.
This matter comes before me on Defendants' Motion for Partial Summary Judgment (#87), Plaintiff's Motion for Partial Summary Judgment (#91), and Defendants' Motion for Leave to File an Amended Answer (#84). Defendants' Motion for Partial Summary Judgment is GRANTED as to all claims except Plaintiff's due process claim for violation of a liberty interest. Plaintiff's Motion for Partial Summary Judgment is DENIED. Defendants' Motion for Leave to File an Amended Answer is MOOT as to the proposed eighteenth affirmative defense and GRANTED as to all other proposed amendments.
Plaintiff Ronald Kramer ("Kramer") was a longtime employee of Defendant Southern Oregon University ("SOU"). SOU is an public university based in Ashland, Oregon. During the relevant period of this case, SOU's President was Defendant Dr. Mary Cullinan ("Cullinan"). SOU is part of Defendant Oregon University System ("OUS"), a public entity comprised of the Oregon public universities. During the relevant period of this case, Defendant George Pernsteiner ("Pernsteiner") served as OUS Chancellor.
SOU runs a network of public radio station known as Jefferson Public Radio ("JPR"). SOU is assisted in its running of JPR by the Jefferson Public Radio Foundation ("JPRF"). SOU and JPRF share ownership and control of the stations, licenses, equipment, and facilities of the JPR network.
Kramer served as the Executive Director ("ED") of JPR. In that capacity, he was an employee of SOU. As part of the contractual arrangement between SOU and JPRF, the Executive Director of JPR also served as the Executive Director of JPRF. Accordingly, Kramer was ED of both organizations for a number of years. This dual role was incorporated into Kramer's job description at SOU.
In 2011, SOU President Cullinan became concerned about new projects being undertaken by JPRF, including the renovation of the Holly Theater in Medford, Oregon ("the Medford Projects"). Cullinan expressed her concerns to OUS Chancellor Pernsteiner. In response to those concerns, Pernsteiner directed the Internal Audit Division of OUS to perform an Asset & Liability Review of JPR beginning in March 2011.
After conducting the Asset & Liability Review, the Internal Audit Division issued an Internal Audit Report on September 22, 2011 ("the OUS Report"). The OUS Report concluded that JPRF's Medford Projects "may not align with policy interests of SOU and may, in fact, harm SOU by limiting the fundraising ability of the SOU Foundation related to their own fundraising priorities." Rubin Decl. Ex. 1, at 10. The OUS Report also concluded that having a single individual serving as the ED of both JPR and JPRF represented a structural problem in the relationship between SOU and JPRF, resulting in "recurring actual or apparent conflicts of interest."
On March 16, 2012, Kramer prepared and distributed a series of proposed resolutions for the JRPF Board which would have fundamentally altered JPRF's relationship with SOU. The JPRF Board was scheduled to consider and vote on those resolutions at a meeting on March 22, 2012. As SOU President, Cullinan also received a copy of the proposed resolutions.
SOU and OUS viewed the proposed resolutions as detrimental to SOU and retained the Miller Nash law firm to prevent the proposed resolutions from being adopted. On March 22, 2012, counsel from Miller Nash prepared a letter addressed to JPRF counsel Jerry Jacobson ("the Miller Nash Letter"). The Miller Nash Letter set forth SOU's opposition to the proposed-resolutions and advised that SOU would proceed with litigation if the resolutions were adopted. Rubin Decl. Ex 1, at 2. The threat of litigation included claims against JPRF, the JPRF Board members personally, and Kramer in particular.
The JPRF Board met as scheduled on March 22, 2012. Members of the local media attended the open session. Cullinan gave a speech urging the board to reject the resolutions and consider mediation. Moore Decl. Ex. 7. Cullinan referred to the Miller Nash Letter, although she did not go into detail about the contents of the letter.
On March 23, 2012, Cullinan sent Kramer a letter informing him that his appointment as ED of JPR "may not be renewed for the upcoming 2012-2013 fiscal year," and that "[a]s a result, your employment with Southern Oregon University may terminate on June 30, 2012." Moore Decl. Ex. 9.
The dispute between SOU and JPRF was covered in local newspapers and generated considerable interest. On June 8 and 9, 2012, SOU and JPRF engaged in mediation, to which Kramer was not a party, and reached an agreement, subject to the to approval by the JPRF Board ("the Lukens Agreement"). After considering the matter, the JPRF Board rejected the Lukens Agreement.
On June 13, 2012, SOU adopted an amendment to its personnel policies; The new policy permitted SOU to terminate administrative appointments without cause at any time during the appointment by providing the employee with ninety days notice prior to termination. Stephens Decl. Ex. 1.
On June 25, 2012, Kramer received a letter from Cullinan informing him that his employment was terminated effective June 30. Stephens Decl. Ex. 8. Kramer performed no work for SOU after June 25, 2012. On or about June 30, 2012, Kramer also stepped down from his position as ED of JPRF. Moore Decl. Ex 11, at 15.
On July 2, 2012, Kramer submitted a written grievance to SOU. Kramer grieved the sufficiency of his notice of termination and the allegations contained in the OUS Report and the Miller Nash Letter. Kramer also alleged that he had been terminated in retaliation for his earlier grievance. Stephens Decl. Ex. 9, at 2 .
On August 17, 2012, the SOU Grievance Committee issued its findings. The Grievance Committee determined that Kramer did not receive proper notice of non-renewal until June 25, 2012, because the March 23 letter used conditional language. The Grievance Committee determined that Kramer had not `been terminated for a retaliatory reason. The Grievance Committee also determined that, although the OUS Report and Miller Nash Letter were public documents, they were not placed in Kramer's personnel file and that disclosure would not violate SOU policy. Stephens Decl. Ex. 9. The Grievance Committee concluded Kramer was entitled to ninety days of pay and benefits beginning on June 25, 2012.
Following a "cooling off" period after the failure of the Lukens Agreement, SOU and JPRF engaged in a second round of mediation on August 21 and 22, 2012, conducted by a, new mediator, Susan Hammer. At the conclusion of the second round of mediation, SOU and JPRF entered into a binding settlement agreement ("the Hammer Agreement"). One of the terms of the Hammer Agreement was that "Ron Kramer may serve as a volunteer consultant or independent contractor consultant to [JPRF] or its affiliates but is not eligible to be an officer, director, advisory board member, or employee of [JPRF] or its affiliates." Moore Decl. Ex. 17., at 1. As part of the Hammer Agreement, SOU and JPRF extended their contract for exchange of services without modification. JPR employee Paul Westehelle was appointed to serve as the interim ED of both JPR and JPRF in the same dual capacity previously occupied by Kramer.
On September 11, 2012, Cullinan accepted the SOU Grievance Committee's determination and Kramer received the recommended ninety days of pay and benefits in a lump sum on October 22, 2012. Kramer then filed this action.
Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). Whether or not a fact is material is determined by the substantive law on the issue.
Special rules of construction apply to evaluating summary judgment motions: (1) all reasonable doubts as to the existence of genuine issues of material facts should be resolved against the moving party; and (2) all inferences must be drawn in the light most favorable to the nonmoving party.
Qualified immunity protects government officials 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."
The Supreme Court has established a two-part analysis for determining whether qualified immunity is appropriate in a suit against an official for an alleged violation of a constitutional right.
In order for a right to be "clearly established," its "contours must be sufficiently definite that any reasonable official in the defendant's shoes would have understood that he was violating it."
Defendants move for summary judgment on all claims against Cullinan and Pernsteiner. Defendants also move for summary judgment on Kramer's state law claims for blacklisting, breach of contract, and statutory wage and hour violations.
Kramer's third claim alleges that Cullinan deprived him of the freedom to engage in his chosen occupation without due process when she failed to provide him with a name clearing hearing before the release of stigmatizing information contained in the OUS Report and the Miller Nash Letter.
The Fourteenth Amendment's guarantee of due process applies when a constitutionally protected liberty or property interest is at stake.
To implicate a liberty interest, the charge "must be sufficiently serious to `stigmatize' or otherwise burden the individual so that he is not able to take advantage of other employment opportunities."
In this case, Kramer contends that the OUS Report and the Miller Nash Letter contain-stigmatizing charges against him. I cannot conclude that the OUS Report makes any allegations about Kramer that implicate moral turpitude. There is no accusation of improper motive or dishonest behavior. The OUS Report simply identifies Kramer's dual role as a structural defect in the SOU-JPRF relationship at the time of Asset & Liability Review and presents recommendations for correcting that issue.
The Miller Nash Letter, by contrast, alleges Kramer engaged in impermissible direct and indirect conflicts of interest, particularly in proposing a resolution which would have resulted in his full-time employment by JPRF. The Miller Nash Letter also charges Kramer with breaches of his fiduciary duties to SOU and violations of the standards of conduct for officers of Oregon nonprofit corporations. Rubin Decl. Ex. 1, at 5.
I am not persuaded by Defendants' argument that the Miller Nash Letter's allegations are softened by being conditioried on the passage of the proposed resolutions. In discussing possible indemnification for Kramer or the directors under JPRF's insurance policy, the letter says:
Rubin Decl. Ex. 1, at 5-6.
The clear implication of this passage is that SOU believed that Kramer had engaged in willful misconduct or acted in bad faith and that, as a consequence, he had no "clear path" to indemnity. Read in the light most favorable to the non-moving party, a reasonable jury could conclude that the Miller Nash Letter contained charges that impaired Kramer's reputation for honesty or morality and that such charges that would exclude Kramer from his chosen profession.
As discussed above, it is well established that charges that impair a plaintiff's reputation for honesty or morality, as opposed to allegations of professional incompetence, will implicate the plaintiff's due process rights.
For a stigmatizing charge to implicate a constitutional right, there must be "some public disclosure" of the stigmatizing charges.
The exact contours of what constitutes publication are somewhat indefinite.
In
The record supports Plaintiff's contention that both the OUS Report and the Miller Nash Letter were public documents. The SOU Grievance Committee concluded as much, saying "SOU and the Oregon University System were and remain obligated to provide these documents upon request to any member of the public." Moore Decl. Ex. 15, at 5. Cullinan herself concurred with the Grievance.Committee's findings on this point. Moore Decl. Ex. 16.
Under
I must also conclude that the right was clearly established at the time of the violation.
Defendants argue that the Miller Nash Letter was unrelated to Kramer's termination and that it was too temporally distant from Kramer's ultimate termination on June 25, 2012 to support a due process violation.
A stigmatizing charge is connected to the termination "when defamatory statements are so closely related to discharge from employment that the discharge itself may become stigmatizing in the public eye."
In this case, the Miller Nash Letter was delivered to the JPRF Board on March 22, 2012. On March 23, 2012, Cullinan informed Kramer by letter that he "may" be terminated, effective June 30, 2012. Moore Decl. Ex. 9. The record supports that Cullinan believed that the March 23 letter was effective notice of termination. Her June 25 letter, which was later determined to have actually been effective notice of termination, was sent to "confirm" the March 23 letter. Moore Decl. Ex 14. Cullinan also disputed the SOU Grievance Committee's determination that notice provided by the March 23 letter was defective. Moore Ex. 16.
Given that Cullinan initiated, or at least attempted to initiate, Kramer's termination only one day after publication of the Miller Nash Letter, I conclude that there is sufficient evidence that the stigmatizing charges were made in connection with Kramer's termination. Because Cullinan's actions were taken within the time frame established in
I conclude there is sufficient evidence on each of the elements to sustain this claim. I also conclude Kramer's rights were clearly established at the time of the violation. Accordingly, Defendants' Motion for Summary Judgment on this claim is DENIED.
Kramer's third claim alleges that Cullinan deprived him of his property interest in a subsequent year of employment when he was terminated without proper notice. Kramer contends that, absent ninety days notice, he was entitled to a full year of renewed employment with SOU.
Property interests do not arise from the Constitution, but are created and their dimensions defined by existing rules or understandings that stem from an independent source, such as state law.
In this case, Kramer was a non-tenured university employee. Under
Kramer's appointment was classified as "renewable." Stephens Decl. Ex. 3. Under SOU's 2005 policy "Types of Appointment Notice of Non-Renewal and Resignation," renewable appointments "are considered `renewed' for continuing employment in a subsequent fiscal or academic year for the same appointment term as the previous appointment unless the employee receives . . notice of non-renewal." Moore Decl. Ex. 20, at 2. "A ninety (90) day notice of non-renewal is given to employees on renewable appointments with termination being effective at the end of the notice period."
In
The facts of this case are closely analogous to those of
To the extent that a protected property interest may have existed, I also conclude that the contours of the right were not sufficiently definite in 2012. Defendants are entitled to summary judgment on this claim.
Kramer's fourth claim alleges that Pernsteiner violated Kramer's right to equal protection when he endorsed a provision of the Hammer Agreement that prohibited Kramer from being employed by JPRF.
Kramer's claim relies on a "class of one" theory of equal protection. To prevail on an equal protection claim under the "class of one" theory, a plaintiff must show that the official 1) intentionally 2) treated the plaintiff differently than other similarly situated individuals, 3) without a rational basis for the difference in treatment.
In this case, Kramer contends he was treated differently from Paul Westhelle, who was appointed to replace him in the same dual role that gave rise to the conflicts of interest identified in the OUS Report and the Miller Nash Letter. As a preliminary matter, there is no evidence that Pernsteiner was directly involved with any of the terms of the Hammer Agreement. On the contrary, the record suggests that he took a "hands off" approach to the second round of mediation, allowing the local representatives of SOU to resolve the issue. Based on the record, it appears that Pernsteiner learned Kramer was barred from employment by JPRF only when the Hammer Agreement was made public. Rubin Decl. Ex. 5, at 7-10.
In any event, Pernsteiner is entitled to summary judgment on the rational basis element of Kramer's equal protection claim. The record shows that Kramer's relationship with SOU had severely deteriorated in the months leading up to the Hammer Agreement. JPRF's mission, in the view of OUS and SOU, was to support SOU's JPR enterprise. It is reasonable that, in the interest of returning to a smooth working partnership, SOU or OUS would have insisted on the exclusion of the person perceived to be at the center of the SOU-JPRF conflict. Kramer has produced no specific evidence to contradict this rationale. I conclude, therefore, that a rational basis existed for excluding Kramer from employment with JPRF.
Because Pernsteiner's actions did not constitute a violation of Kramer's right to equal protection, I need not address whether that right was clearly established. Defendants' motion for summary judgment on this claim is GRANTED.
Kramer's first claim for relief alleges a common-law claim for blacklisting based on ORS 659.805. Kramer alleges that Defendants blacklisted him by adopting and publishing the Hammer Agreement, which prevented him from being employed by JPRF. Kramer alleges that this act shut him out of all prospect of employment as an Executive Director for a public radio organization in the southern Oregon media market
Defendants move for summary judgment on this claim, essentially reiterating their argument that no common-law claim for blacklisting exists under Oregon law. This Court previously rejected this argument at the motion to dismiss stage (#25), based on the Oregon Supreme Court's decision in
Oregon law prohibits an employer from "blacklisting" a terminated employee. ORS 659.805. Blacklisting involves the intent to injure a person by preventing future employment.
In this case, I have reviewed the entire record carefully. As in
Accordingly, based on the record, I must conclude that Defendants are entitled to summary judgment on this claim.
Kramer's fifth claim for relief alleges that Defendants breached their contract with Kramer by terminating him without the required notice. Defendants contend that on June 13, 2012,
Defendants argue that, under Kramer's contract, any amendment to the SOU employment policies immediately amended the terms of Kramer's employment. Kramer would, therefore, have been subject to the June 13 amendment when he was terminated on June 25. Kramer contends that it is ambiguous whether the June 13 amendment was effective at the time of his termination because SOU failed to electronically circulate the policy, as Kramer contends it was required to do. Kramer argues that, absent that amendment, he would be entitled to the benefit of a subsequent year of employment.
When a contract is ambiguous, ascertaining its meaning is a question of fact and inappropriate for summary judgment.
Based on the record, I conclude Kramer received effective notice of his termination on June 25, 2012. I also conclude that the June 13 amendment applied to Kramer's appointment at the time of his termination. Although Kramer argues SOU was required to electronically circulate any amendments to its employment policies prior to their adoption, he is able to provide only his own declaration and deposition testimony that such a requirement was his understanding. Kramer Decl., at 2; Moore Decl. Ex. 1, at 185-86. Kramer's understanding is not supported by the express terms of SOU's employment policies. The 2005 policy "Types of Appointment Notice of Non-Renewal and Resignation," which Kramer contends was effective at the time of his termination, explicitly says "[t]his policy may be revised at any time without prior notice. All revisions supercede prior policy and are effective. upon approval." Moore Decl. Ex. 20, at 2.
Kramer's employment contract also supports Defendants' contention that the June 13 amendment was effective at the time of Kramer's termination. On December 2, 2004, Kramer received an appointment to an unclassified administrative position. Stephens Decl. Ex. 2. That appointment was renewed annually through the 2011-2012 fiscal year. The contract states that it may be "amended by any changes in the SOU Personnel Policies as may apply to the general terms and conditions of employment for employees in this class of employment with the University. Any such changes to the . . . SOU Personnel Policie.s immediately amened this contract upon the effective date of adoption of the . Policy."
I conclude, therefore, that the terms of Kramer's appointment were immediately amended by the adoption of the June 13 amendment. The June 13 amendment provides that an administrative appointment such as Kramer's could be terminated without cause on ninety days notice. It is undisputed that Kramer received ninety days of pay arid benefits dated from June 25. Kramer is not entitled to any further remedy under his contract.
Nor would Kramer be entitled to any further remedy, even if the June 13 amendment were not effective at the time of his termination. Under the superseded 2005 policy, a renewable appointment was "considered renewed" unless the employed received a notice of non-renewal as described in a subsequent section of the policy: "A ninety (90) day notice of non-renewal is given to employees on renewable appointments with termination being effective at the end of the notice period." Moore Decl. Ex. 20, at 2. The plain language of the policy does not require that the notice of non-renewal actually come ninety days before the end of the employee's term.
Accordingly, I conclude that Kramer has already received any benefit to which he was entitled under his contract. Defendants are entitled to summary judgment on this claim.
Kramer's sixth claim for relief alleges that SOU failed to pay all wages earned and unpaid at the time of his discharge as required by Oregon's wage collection statutes, ORS 652.140 et seq. Specifically, Kramer contends that the SOU Grievance Committee award constituted wages or compensation earned and unpaid.
ORS 652.150 provides that "if an employer willfully fails to pay any wages or compensation of any employee whose employment ceases . . . then, as a penalty for the nonpayment, the wages or compensation of the employee shall continue from the due date thereof at the same hourly rate for eight hours per day until paid or until action therefor is commenced." Compensation under ORS 652.140 et seq. refers to a claim for remuneration for services previously rendered.
In this case, it is undisputed that Kramer did no work for SOU after June 25, 2012. The pay and benefits awarded by the SOU Grievance Committee are not, therefore, wages or compensation for services actually performed. Rather, the SOU Grievance Committee award was a payment made pursuant to contractual obligations. Such awards are not subject to Oregon's wage collection statute. Defendants are entitled to summary judgment on this claim.
Kramer moves for partial summary judgment on Defendants' second, fourth, sixth, eighth, fifteenth, and seventeenth affirmative defenses. At oral argument, Defendants conceded and withdrew the fifteenth and seventeenth affirmative defenses. I accept those concessions.
Defendants' second affirmative defense asserts that the Amended Complaint fails to state a claim for which relief can be granted. This motion is moot as to all claims disposed of in this Order. As to all remaining claims, this motion is denied.
Defendants' sixth affirmative defense is for breach of Kramer's duty of loyalty. Although Kramer argues that public employees do not owe a duty of loyalty, Oregon courts have concluded that every employee owes his or her employer a duty of loyalty.
Defendants move for leave to file an Amended Answer. Kramer opposes only one of the proposed changes, which would incorporate an eighteenth affirmative defense to Kramer's common-law claim for blacklisting. Because I have granted summary judgment on Kramer's blacklisting claim, Defendants' motion for leave to amend is MOOT with respect to the eighteenth affirmative defense. Because Kramer does not oppose any of the other proposed amendments, Defendants' motion is GRANTED with respect to those amendments.
Defendants' Motion for Partial Summary Judgment (#87) is GRANTED in part. Plaintiff's Motion for Partial Summary Judgment (#91) is DENIED. Defendants' Motion for Leave to File an Amended Answer (#84) is GRANTED in part.
IT IS SO ORDERED.