holding that procedural guarantees did not create a property interest in obtaining a gaming license
How later courts described this case
- holding that procedural guarantees did not create a property interest in obtaining a gaming license
- “The Oregon Court of Appeals . . . has described [their] causation standard as a ‘but for’ test.”
Written by the judges who cited it.
The opinion
IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF OREGON
MICHAEL S. COLEMAN,
Plaintiff, Case No. 6:18-cv-01787-MC
v. OPINION AND ORDER
BAY AREA HEALTH DISTRICT, BAY
AREA HOSPITAL, and REBECCA
DAVISSON, in her individual and
personal capacity,
Defendants.
MCSHANE, Judge:
Plaintiff Michael Coleman brings a procedural due process claim against all defendants
and claim under the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 ef seq.
against Bay Area Hospital.' Pl.’s First Am. Compl., □□ 14-28, ECF No. 18 (“FAC”). Defendants
move for summary judgment. ECF No. 23. Because no reasonable jury could find in favor of
Plaintiff on either of his claims, Defendants’ Motion (ECF No. 23) is GRANTED.
BACKGROUND?
Plaintiff worked as a registered nurse at Bay Area Hospital from February 2001 to
November 2016, specifically in the Emergency Department from 2005 on. Pl.’s Resp. 2, ECF
No. 30. Rebecca Davisson is a registered nurse at Bay Area Hospital and became a manager in
' Plaintiff previously alleged disparate impact and retaliation for engaging in protected activities pursuant to the
ADEA but has since withdrawn those claims. FAC § 29-36; Pl.’s Resp. 1, ECF No. 30.
T view the facts in the light most favorable to Plaintiff, the non-moving party.
1 — OPINION AND ORDER
the Emergency Department in 2016. Id. at 3. Marcella Santana did the scheduling. Id. at 5. In
2016, Plaintiff worked the night shifts on April 28 and 29 and planned to have April 30 and May
1 off. Id. Unfortunately, Plaintiff failed to consult the May schedule. Id. Ms. Santana scheduled
Plaintiff to work the night shift on May 1 and called him when he did not show up to work. Id. at
5–6. Plaintiff was upset, complained about the schedule, and said “I’m not f—ing coming in.” Id.
at 6.
Ms. Santana told Ms. Davisson that Plaintiff raised his voice and cursed at her and Ms.
Davisson said she would talk to Plaintiff. Pl.’s Resp. 6. Ms. Davisson spoke with Mr. Coleman
several days later and said that his behavior toward Ms. Santana was inappropriate. Id. at 6–7.
Plaintiff agreed. Id. Ms. Davisson told Plaintiff that he should apologize to Ms. Santana and he
said he would think about it. Id. at 7. Ms. Davisson emailed the Emergency Department manager
at the time, Dustin Hawk, about her concerns over Plaintiff’s behavior and said that if Plaintiff
did not apologize to Ms. Santana, it would be “best that he ride off into the sunset.” Id.
Plaintiff retired effective May 15, 2016 and became a Gray Matters nurse. Pl.’s Resp. 9.
Bay Area Hospital’s Gray Matters program allows experienced nurses who are at least 55 years
old to retire while continuing a reduced work schedule. Pl.’s Resp. 3. Gray Matters nurses cover
other nurses’ shifts and can accept or reject any shift. Defs.’ Mot. 3–4. Regular and Gray Matters
nurses are represented by the Oregon Nurses Association. Id. at 2; Pl.’s Resp. 3. The 2016–2018
Collective Bargaining Agreement provides that its provisions apply to Gray Matters employees
unless specifically stated otherwise. Pl.’s Resp. 3.
Ms. Davisson scheduled Plaintiff to work night shifts on October 7 and 8, 2016 and a day
shift on October 10. Id. at 9–10. Ms. Santana called Plaintiff on October 9 at 8:30 p.m., while he
was sleeping, to discuss future scheduling. Id. at 10. Plaintiff told Ms. Santana he objected to the
2 – OPINION AND ORDER
call and would talk to her when he arrived at the hospital a few hours later. Id. Ms. Santana told
Ms. Davisson that Plaintiff became angry with her, screamed obscenities, sounded intoxicated,
and was abusive. Id. Plaintiff maintains he was not intoxicated and did not curse at Ms. Santana.
Id. On Ms. Davisson’s advice, Ms. Santana emailed Ms. Davisson and Human Resources, stating
that Plaintiff spoke with her aggressively, unprofessionally, and confrontationally. Id. Ms.
Santana later testified that she did not remember Plaintiff sounding intoxicated. Id. at 11.
Plaintiff met with Ms. Davisson on October 10. Pl’s Resp. 11. Plaintiff raised his voice
outside Ms. Davisson’s office, called her a bully, and said management was “screwing” with his
schedule. Id. Ms. Davisson asked Plaintiff to come into her office and he calmed down. Id. Ms.
Davisson later contacted Human Resources and a decision was made to terminate Plaintiff’s
employment sometime between October 10 and 13. Id. On October 16, Plaintiff received a 30-
day Notice of Termination dated October 13 and postmarked October 17. Id. The notice did not
provide a reason for Plaintiff’s termination. Id. On November 14, Ms. Davisson prepared a
Termination Evaluation in which she stated that Plaintiff had two interactions with a coworker
during which he sounded intoxicated and cursed at her multiple times. Id. On November 15,
2016 Plaintiff reviewed his personnel file and found no evaluation or record of why Defendants
terminated him. Id. at 12. Human Resources told Plaintiff he was eligible for rehire. Id.
Defendants told the Oregon Employment Department that they laid Plaintiff off due to lack of
work. Id. Plaintiff received a copy of the Termination Evaluation in June 2017. Id. at 11–12.
Plaintiff filed this Complaint on October 7, 2019.
STANDARDS
The court must grant summary judgment if there is no genuine issue of material fact and
the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). An issue is
3 – OPINION AND ORDER
“genuine” if a reasonable jury could return a verdict in favor of the non-moving party. Rivera v.
Phillip Morris, Inc., 395 F.3d 1142, 1146 (9th Cir. 2005) (citing Anderson v. Liberty Lobby, Inc.,
477 U.S. 242, 248 (1986)). A fact is “material” if it could affect the outcome of the case. Id. The
court reviews evidence and draws inferences in the light most favorable to the non-moving party.
Miller v. Glenn Miller Prods., Inc., 454 F.3d 975, 988 (9th Cir. 2006) (quoting Hunt v.
Cromartie, 526 U.S. 541, 552 (1999)). When the moving party has met its burden, the non-
moving party must present “specific facts showing that there is a genuine issue for trial.”
Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87 (quoting Fed. R. Civ. P.
56(e)).
DISCUSSION
I. Procedural Due Process
To prevail on this claim, Plaintiff must establish: “(1) a liberty or property interest
protected by the Constitution; (2) a deprivation of the interest by the government; [and] (3) lack
of process.” Portman v. County of Santa Clara, 995 F.2d 898, 904 (9th Cir. 1993). “The
fundamental requirement of due process is the opportunity to be heard at a meaningful time and
in a meaningful manner.” Mathews v. Eldridge, 424 U.S. 319, 333 (1976) (internal quotations
and citation omitted).
A. Protected Property Interest
Plaintiff argues that he had a protected property interest in continued employment
entitling him to notice and an opportunity to be heard. FAC ¶¶ 13, 16–17. Plaintiff cites Article
14, Section 1 of the 2016–2018 Collective Bargaining Agreement, which provides that
“[d]isciplinary action may include . . . discharge for just cause.” Id. at ¶ 11; Pl.’s Resp. 14; Defs.’
Mot. Ex. C, at 52. This provision does not apply to Gray Matters nurses. Article 2, Section 6
4 – OPINION AND ORDER
provides that “[a]ll provisions of the labor agreement will continue to apply to [Gray Matters]
employees, except as specifically stated below,” then sets forth six sub-parts. Defs.’ Mot. Ex. C,
at 7–9. None of these sub-parts address discipline or discharge. Article 2, Section 6(a), however,
provides that:
Once a nurse has been appointed to the Hospital’s Gray Matters program, the Hospital
reserves the right to rescind such appointment for any lawful reason with no less than
thirty (30) calendar days’ written notice to the nurse prior to the posting of the work
schedule. Upon request the nurse shall be afforded an exit interview.
Defs.’ Mot. Ex. C, at 7–8 (emphasis added). The “any lawful reason” clause is clearly at odds
with the Article 14, Section 1 “just cause” provision. At first glance, Article 2, Section 6 implies
that Gray Matters nurses are subject to the same terms as regular nurses except where the six
enumerated subjects is concerned. Article 2, Section 6(a), however, unequivocally sets forth a
different standard regarding discharge of Gray Matters nurses. Similarly, Plaintiff’s application
to the Gray Matters program read: “I understand either party may request discontinuation of the
Gray Matters program by providing a 30-day written notice.” Defs.’ Mot. Ex. M. Plaintiff signed
immediately below this statement. See id.
Additionally, Article 2, Section 6(c) states that, “Gray Matters [p]rogram nurses have no
regular schedule. They may be requested to work any number of hours up to, but not exceeding,
the regular shift hours in operation for their appointed department.” Defs.’ Mot. Ex. C, at 8.
Because the Collective Bargaining Agreement did not guarantee Gray Matters nurses shifts, they
were akin to “at will” employees, not employees who could only be fired for “just cause.”
Plaintiff argues that he was “a long-time employee who was recognized as an excellent
nurse and an invaluable asset,” worked many shifts, and “had a legitimate expectation that if he
remained employed . . . he would be given shifts to work.” Pl.’s Resp. 15–16 (citing Cocchiara
5 – OPINION AND ORDER
v. Lithia Motors, Inc., 353 Or. 282 (2013)). Cocchiara was a private sector promissory estoppel
and fraudulent misrepresentation case where the Oregon Supreme Court held that the plaintiff
could reasonably rely on his employer’s promise of employment even though he was an at-will
employee. 353 Or. at 284. Defendants here made no such promise to Plaintiff. Simply working
for an employer for a long time and working many shifts does not establish a protected property
interest.
Plaintiff next argues that even if the just cause provision does not apply to him, he had a
protected property interest. Pl.’s Resp. 14, 17–19. Specifically, Plaintiff argues that Article 2,
Section 6(a)’s lawful reason, 30-day notice, and entitlement to an exit interview terms obligated
Defendants to provide him with an explanation for terminating him and placed substantive
restrictions on the grounds for which they may discharge him, giving him an entitlement to
continued employment. Id. at 19. “Procedural guarantees ordinarily do not transform a unilateral
expectation into a constitutionally protected property interest” unless they are “intended to
operate as a significant substantive restriction” on decision making. Jacobson v. Hannifin, 627
F.2d 177, 180 (9th Cir. 1980) (holding that procedural guarantees did not create a property
interest in obtaining a gaming license). Defendants cite ample case law demonstrating that a
procedural 30-day notice requirement is not a substantive restriction on decision making. Defs.’
Mot. 33 (citing Godwin v. Rogue Valley Youth Corr. Facility, 2013 WL 3712413, at *1–3 (D.
Or. July 12, 2013); Febus-Cruz v. Sauri-Santiago, 652 F. Supp.2d 140, 151–152 (D. P.R. 2009);
Blantz v. Cal. Dep'tof Corr. & Rehab., 727 F.3d 917, 924 (9th Cir. 2013); Mozier v. Board of Ed.
Of Cherry Hill Tp., 450 F. Supp. 742, 747–48 (D. N.J. 1977)).
Even if there was an implicit good faith requirement under the Collective Bargaining
Agreement, it would not establish a protected property interest. See Pl.’s Resp. 17–18. In
6 – OPINION AND ORDER
Wheaton v. Webb-Petett, the Ninth Circuit held that a property interest arose out of a state statute
that said the employer could dismiss an employee “in good faith for cause.” 931 F.2d 613
(1991). A property interest does not arise out of every contract with an implicit good faith
requirement.
B. Qualified Immunity
Defendants argue that Ms. Davisson is entitled to qualified immunity because “no
reasonable public official could have known that the ‘any lawful reason’ language in [] Article 2,
§ 6(a) would constitute a ‘just cause’ property interest.” Defs.’ Mot. 34. Qualified immunity in
this case depends on whether Ms. Davisson violated a clearly established constitutional right in
her individual capacity as a manager. An official's conduct will only violate a “clearly
established” right when “at the time of the challenged conduct, the contours of a right are
sufficiently clear that every reasonable official would have understood that what [s]he is doing
violates that right.” Ashcroft v. Al-Kidd, 563 U.S. 731, 741 (2011) (quoting Anderson v.
Creighton, 483 U.S. 635, 640 (1987)) (internal brackets and quotations omitted). “[E]xisting
precedent must have placed the statutory or constitutional question beyond debate.” Id. The
Supreme Court, in analyzing qualified immunity and the “clearly established” requirement, looks
to whether precedent has “placed the statutory or constitutional question beyond debate.” Id.
Plaintiff argues that Ms. Davisson is not entitled to qualified immunity because Wheaton
and Hayward clearly established liability based on good faith and a legitimate claim of
entitlement. Pl.’s Resp. 20; see Wheaton, 931 F.2d 613; Hayward v. Henderson, 623 F.2d 596
(9th Cir. 1980). As explained above, Wheaton is not dispositive here. In Hayward, the Ninth
Circuit held that the Comprehensive Employment & Training Act of 1973’s notice and
opportunity to be heard requirements did not give rise to a protected property interest. 623 F.2d
7 – OPINION AND ORDER
at 597. The Court reasoned that a property interest in employment arises where there are
restrictions on the grounds for discharge, such as for “just cause.” Id. No such restriction exists
here, and even if the “just cause” provision applied to Gray Matters nurses, its applicability was
not “clearly established,” otherwise the issue would not be so heavily disputed here. There is no
evidence in the record demonstrating that Ms. Davisson made a decision that violated clearly
established law, therefore she is entitled to qualified immunity.
Defendants’ Motion for Summary Judgment on the procedural due process claim is
GRANTED.
II. Age Discrimination
Under the Age Discrimination in Employment Act (“ADEA”), it is unlawful for an
employer to fire an employee because of their age. 29 U.S.C. § 623(a)(1) (2012). This applies
with equal force at the state level. Or. Rev. Stat. § 659A.030(1)(a) (2017). The plaintiff has the
burden to establish that age was the “but for” cause of the employer’s adverse employment
action. Gross v. FBL Fin. Servs., Inc., 557 U.S. 167, 177 (2009).3 In meeting this burden, a
plaintiff may present direct or circumstantial evidence of age discrimination. Id. at 177–78. Here,
Plaintiff claims to have direct and circumstantial evidence. Pl.’s Resp. 21.
A. Direct Evidence
“Direct evidence is evidence ‘which, if believed, proves the fact [of discriminatory
animus] without inference or presumption.’” Coghlan v. Am. Seafoods Co. LLC., 413 F.3d 1090,
1094–95 (9th Cir. 2005) (quoting Godwin v. Hunt Wesson, Inc., 150 F.3d 1217, 1221 (9th Cir.
3 Oregon modeled its employment statute after Title VII, signifying that both federal and state claims are analyzed
under a “but for” standard. Richardson v. Northwest Christian Univ., 242 F. Supp. 3d 1132, 1146 (D. Or. Mar. 16,
2017); see also Siring v. Oregon State Bd. of Higher Educ. ex rel. Eastern Oregon Univ., 977 F. Supp. 2d 1058,
1061 (D. Or. Oct. 15, 2013) (“The Oregon Court of Appeals . . . has described [their] causation standard as a ‘but
for’ test.”).
8 – OPINION AND ORDER
1998). “Direct evidence typically consists of clearly sexist, racist, or similarly discriminatory
statements or actions by the employer.” Id. Plaintiff argues that Ms. Davisson made two
statements that constitute direct evidence. Pl.’s Resp. 23–25. First, Ms. Davisson stated in a May
5, 2016 email that if Plaintiff did not apologize to Ms. Santana for the way he spoke to her over
the phone on May 1, 2016, “it is best that he ride off into the sunset.” Pl.’s Resp. 23–24; see
Coleman Decl. Ex. 6, ECF No. 31. Plaintiff admits to raising his voice and cursing at Ms.
Santana. Pl.’s Resp. 6–7. Plaintiff argues, however, that Ms. Santana knew that he planned to
continue work through the Gray Matters program. Id. at 24. Ms. Davisson stated that she thought
Plaintiff should retire completely if he refused to apologize. This is not direct evidence of age
discrimination. Moreover, Bay Area Hospital accepted Plaintiff into the Gray Matters program
despite his boorish behavior, terminating him more than five months after Ms. Davisson’s
statement and only after Plaintiff acted out again on October 9 and 10. Pl.’s Resp. 9–11; Reply
18.
Plaintiff next cites Ms. Davisson’s August 29, 2016 email stating that Plaintiff did not
renew his Certified Emergency Nurse license because he planned to retire. Pl.’s Resp. 24;
Coleman Decl. Ex. 7. Plaintiff argues that Ms. Davisson forgot or ignored that he failed to renew
his license because had been working extra shifts and mistakenly assumed that he planned to
retire completely. Pl.’s Resp. 24. According to Ms. Davisson, Plaintiff told her he may leave the
Gray Matters program because he had been covering too many shifts and did not correct her after
she sent the email. Defs.’ Reply 19; Davisson Reply Decl. ¶ 5, ECF No. 40. Either way, Ms.
Davisson’s statement that Plaintiff planned to retire is not direct evidence of age discrimination.
9 – OPINION AND ORDER
Age and retirement may be correlated, but Ms. Davisson’s statements that Plaintiff
should retire or plans to retire do not constitute proof of discriminatory animus in these contexts.
No reasonable jury could conclude that either statement is direct evidence of age discrimination.
B. Circumstantial Evidence
ADEA claims utilizing circumstantial evidence are subject to the McDonnell Douglas
burden-shifting analysis. McDonnell Douglas Corp. v. Green, 411 U.S. 792, 802–04 (1973).
First, the employee must establish a prima facie claim of discrimination. Diaz v. Eagle Produce
Ltd. P’ship, 521 F.3d 1201, 1207 (9th Cir. 2008) (citation omitted). To establish a prima facie
case with circumstantial evidence, an employee must show that: (1) he belongs to a protected
class; (2) he was performing his job satisfactorily; (3) he was subject to an adverse employment
action; and (4) he was either replaced by a substantially younger employee with equal or inferior
qualifications or discharged under circumstances “giving rise to an inference of age
discrimination.” Coleman v. Quaker Oats Co., 232 F.3d 1271, 1281 (9th Cir. 2000). The “degree
of proof” required for a prima facie age discrimination claim to survive summary judgment is
minimal and does not need to “rise to the level of a preponderance of the evidence.” Wallis v.
J.R. Simplot Co., 26 F.3d 885, 889 (9th Cir. 1994). If the plaintiff can establish a prima facie
claim, the burden then shifts to the employer to articulate a legitimate, nondiscriminatory reason
for the adverse action taken against the employee. Diaz, 521 F.3d at 1207. If the employer
articulates a legitimate, nondiscriminatory reason for termination, the employee must then offer
evidence that the employer’s proffered reason for taking the adverse action was a pretext for
discrimination. Id.
10 – OPINION AND ORDER
1. Prima Facie Claim
Defendants argue that Plaintiff cannot establish a prima facie disparate treatment claim,
specifically the fourth element.4 Defs.’ Mot. 12. I disagree. Defendants concede that Plaintiff has
raised a question of fact regarding whether Bay Area Hospital replaced him with a substantially
younger employee. Defs.’ Reply 15. Bay Area Hospital did not directly replace Plaintiff or add
any nurses to the Gray Matters program. Defs.’ Mot. 16. Regardless, a nurse or combination of
nurses must have taken the shifts Plaintiff used to work, and Plaintiff was the oldest nurse in the
Emergency Department. Pl.’s Resp. 22; Coleman Decl. ¶ 18. When viewing the evidence in a
light most favorable to Plaintiff and considering that “very little evidence is required to establish
a prima facie case,” Plaintiff has met his initial burden. See Wallis, 26 F.3d at 891.
2. Legitimate, Nondiscriminatory Reason
Because Plaintiff has established a prima facie claim, the burden now shifts to
Defendants to offer a legitimate, nondiscriminatory reason for Plaintiff’s termination. “To suffice
under McDonnell Douglas, an employer’s explanation must explain why the plaintiff ‘in
particular’ was laid off.” Diaz, 521 F.3d at 1211. Defendants argue that they fired Plaintiff based
on his “repeated abusive and hostile behavior.” Defs.’ Mot. 17; Davisson Decl. ¶ 11, ECF No.
26. An employer’s subjective belief that an employee’s performance is inadequate and
inappropriate is a legitimate, nondiscriminatory reason for terminating an employee. Pottenger v.
Potlatch Corp., 329 F.3d 740, 748 (9th Cir. 2003). Consequently, the analysis turns to step three.
4 Defendants also raise issues with respect to the third element, but the parties agree that Plaintiff’s termination was
an adverse employment action. Defs.’ Mot. 16; Pl.’s Resp. 20, 22. Plaintiff limits his disparate treatment claim to his
termination. Pl.’s Resp. 22 n.5.
11 – OPINION AND ORDER
3. Pretext
The final step of the McDonnell Douglas analysis requires Plaintiff to raise a genuine
issue of fact concerning whether the facially legitimate reasons proffered by Defendants are
merely pretextual. See Coleman, 232 F.3d at 1281. Plaintiff may demonstrate pretext “directly by
persuading the court that a discriminatory reason more likely motivated [Bay Area Hospital] or
indirectly by showing that [their] proffered explanation is unworthy of credence.” See Snead v.
Metro. Prop. & Cas. Ins. Co., 237 F.3d 1080, 1093–94 (9th Cir. 2001) (internal quotations and
citations omitted).
Plaintiff has failed to provide evidence to establish pretext. “[W]hen evidence to refute
defendant’s legitimate explanation is totally lacking, summary judgment is appropriate even
though plaintiff may have established a minimal prima facie case based on a McDonnell Douglas
type presumption.” Wallis, 26 F.3d at 890–91. Plaintiff admitted that he deserved discipline for
his abusive conduct and that if firing him was the answer, human resources should have done it.
Defs.’ Mot. 18. Plaintiff admits that his manner of interacting with management “probably had
something to do with” his discharge. Id. Meanwhile, there is nothing in the record indicating that
Bay Area Hospital’s employment decision was motivated by age. Merely expressing a belief that
an employer acted with an unlawful motive without providing additional evidence supporting
that belief is not enough to present a triable issue of material fact. Carmen v. San Francisco
Unified Sch. Dist., 237 F.3d 1026, 1028 (9th Cir. 2001); see also Rogers v. Oregon Trail Elec.
Consumers Coop., Inc., No. 3:10-CV-1337-AC, 2012 WL 1635127, at *11 (D. Or. May 8, 2012)
(“The actual motivation of the employer, not the subjective belief of the employee, is all that is
relevant in an employment discrimination case.”). Even if Bay Area Hospital gave Plaintiff’s
12 – OPINION AND ORDER
shifts to a younger employee or employees, the record lacks additional evidence indicating age
discrimination.
Because Plaintiff does not point to any evidence that Bay Area Hospital’s legitimate,
nondiscriminatory reasons for terminating him were merely a pretext for discrimination, his age
discrimination claim fails. Defendants’ motion for summary judgment on Plaintiff’s age
discrimination claim is therefore GRANTED.
CONCLUSION
Defendants’ Motion for Summary Judgment (ECF No. 23) is GRANTED.
IT IS SO ORDERED.
DATED this 3rd day of April, 2020.
_______/s/ Michael J. McShane ________
Michael McShane
United States District Judge
13 – OPINION AND ORDER