Opinion

Barrows, Paul v. Wiley, John

Court
Court of Appeals for the Seventh Circuit
Filed
Feb 22, 2007
Status
Published
On the bench
Per Curiam
Nature of suit
civil
Cited by
0 cases
Authority
More cited than 39.8%

The opinion

In the

United States Court of Appeals

For the Seventh Circuit

____________

No. 06-1582

PAUL BARROWS,

Plaintiff-Appellant,

v.

JOHN WILEY and LUOLUO HONG,

Defendants-Appellees.

____________

Appeal from the United States District Court

for the Western District of Wisconsin.

No. 05 C 658—John C. Shabaz, Judge.

____________

ARGUED SEPTEMBER 27, 2006—DECIDED FEBRUARY 22, 2007

____________

Before POSNER, MANION, and WOOD, Circuit Judges.

MANION, Circuit Judge. Paul Barrows filed a com-

plaint pursuant to 42 U.S.C. § 1983 against his employer,

the University of Wisconsin-Madison (“University”), al-

leging that the University violated his Fourteenth

Amendment right to due process by placing him on

unpaid administrative leave and forcing him to use

various types of leave time to obtain compensation. The

district court granted the University summary judg-

ment. Barrows appeals, and we affirm.

2 No. 06-1582

I.

The University employed Paul Barrows beginning

in 1989. Barrows served in various academic capacities

during his employment with the University. Academic

staff may serve in “indefinite” or “limited” appointments.

An “indefinite appointment is an appointment with

permanent status and for an unlimited term, granted by

the chancellor to a member of the academic staff. Such

an appointment is terminable only for cause under

ch. UWS 11 or for reasons of budget or program under

ch. UWS 12.” Wis. Admin. Code UWS § 10.03(2)(b). A

limited appointment is “a special appointment to a desig-

nated administrative position.” Wis. Admin. Code UWS

§ 15.01(1). A person who serves in a limited appointment

does so at the “pleasure of the authorized official who

made the appointment.” Id. Additionally, an employee

with an indefinite appointment can also hold a limited

appointment. Moreover, the limited appointment does

not impact any rights due an individual holding an in-

definite appointment. Id. Thus, for those serving in a

limited appointment who have also received an indef-

inite appointment, the indefinite appointment remains as

a backup position which they may assume at the expira-

tion of their limited appointment. A “backup” position or

appointment is another name for an indefinite appoint-

ment. In 1997, Barrows received an appointment to a full-

time position in the Provost’s Office (which was des-

ignated as an indefinite backup position). In July 2000,

Barrows accepted a limited appointment as Vice Chancel-

lor for Student Affairs, receiving an annual salary of

$191,749.00 and reporting to John Wiley, Chancellor of

the University. For the next several years, Barrows was

apparently successful in performing his assigned duties.

No. 06-1582 3

On or before November 1, 2004, however, while at an

assembly for a University project, Wiley abruptly asked

Barrows to step down from his position as Vice

Chancellor.1 Wiley directed Barrows to submit a letter

of resignation, which he reluctantly did. In a letter dated

November 1, 2004, Barrows stated that he was stepping

down from his position as Vice Chancellor for Student

Affairs, explaining that “[w]ith recent changes in my

family situation, and the stress those bring, I am propos-

ing to take some personal leave time.” In a response

letter dated November 2, 2004, Wiley accepted Barrows’s

resignation and stated that he would schedule a time to

speak with Barrows, but recommended as a short-term

proposal that Barrows “take leave as necessary to address

[his] personal issues.” Wiley indicated that after his leave,

Barrows could complete a fund-raising project and begin

a feasibility study, and after the completion of the latter

project speak with Provost Spears if he was interested

in “additional roles at UW-Madison.” If he was interested

in such a position, it would qualify as part of his academic

staff backup appointment. Barrows, though, later asserted

in an affidavit signed January 3, 2006, that he did not resign

from his position, but rather that Wiley fired him. In the

meantime, regardless of the subsequent characterization,

Barrows went on leave from November 2004 through

June 20, 2005. During this time, by using vacation leave,

1

There were allegations that Barrows, who was married

with two children, had a relationship with a graduate student,

which prompted Wiley’s request. Additional allegations of

improper behavior prompted Barrows’s paid leave of absence

in June 2005 and a subsequent investigation. These circum-

stances are not pertinent to our deliberations apart from the

fact that they precipitated the actions at issue here.

4 No. 06-1582

sick leave, and leave in his Annual Leave Reserve Account

(“ALRA”), Barrows continued to be compensated at the

annual rate of pay he received as Vice Chancellor for

Student Affairs ($191,749.00). Specifically, during that

time, Barrows received $124,140.18 in gross wages

through the use of 524 hours of sick leave, 186 hours of

vacation time, and 124 hours of ALRA leave. Then, from

June 20, 2005, through June 23, 2005, Barrows worked as a

consultant at the University. On June 23, 2005, Barrows

was placed in his backup position at the Provost’s Office

with an annual salary of $72,881.00. That same day, Bar-

rows was placed on paid administrative leave.

Barrows responded by filing a complaint in the district

court pursuant to 42 U.S.C. § 1983, asserting that he had

a right to immediate placement in his backup position

when he was “terminated” in November 2004. He claimed

that forcing him to use his vacation leave, ALRA leave,

and sick time without notice or opportunity to be heard

violated his right to due process. The district court

granted the defendants’ motion for summary judgment,

concluding that Barrows had failed to establish that

the University caused him economic harm and that Wiley

was entitled to qualified immunity. Barrows appeals.2

2

Barrows also brought a state claim against defendant Luoluo

Hong, Dean of Students at the University of Wisconsin-Madison,

over which the district court declined to exercise supplemental

jurisdiction after it granted Wiley’s motion for summary

judgment on qualified immunity grounds. Because Barrows’s

claim against Hong is not raised in his appeal, we need not

address it.

No. 06-1582 5

II.

A district court’s grant of summary judgment is reviewed

de novo. Gillis v. Litscher, 468 F.3d 488, 492 (7th Cir. 2006).

Barrows’s constitutional claim is premised on a denial of

procedural due process. Specifically, he alleges that he was

denied a property right by being required to use leave time,

whether sick, vacation, or ALRA, between November 2004

and June 20, 2005, as opposed to being immediately placed

in his backup position.

“Procedural due process claims require a two-step

analysis. The first step requires us to determine whether

the plaintiff has been deprived of a protected interest; the

second requires a determination of what process is due.”

Luellen v. City of E. Chicago, 350 F.3d 604, 613 (7th Cir. 2003)

(quoting Strasburger v. Bd. of Educ., Hardin County Comm.

Unit Sch. Dist. No. 1, 143 F.3d 351, 358 (7th Cir. 1998)). In

other words, the plaintiff must have a protected prop-

erty interest in that which he claims to have been denied

without due process. See Cleveland Bd. of Educ. v. Loudermill,

470 U.S. 532, 538 (1985).

Ascertaining “whether a particular job action against

a public employee implicates a constitutionally pro-

tected property interest is a question of law; ‘[p]roperty

interests are not created by the Constitution, they are

created and their dimensions are defined by existing

rules or understandings that stem from an independent

source such as state law.’ ” Deen v. Darosa, 414 F.3d 731, 734

(7th Cir. 2005) (quoting Loudermill, 470 U.S. at 538). Those

property interests may also be created by contract with

a state entity. Ulichny v. Merton Cmty. Sch. Dist., 249

F.3d 686, 700 (7th Cir. 2001). “A mere opportunity to

acquire property, however, does not itself qualify as a

property interest protected by the Constitution.” Head v.

Chicago Sch. Reform Bd. of Tr., 225 F.3d 794, 802 (7th Cir.

6 No. 06-1582

2000) (citations omitted). Losing the opportunity to ac-

quire property does not constitute a deprivation. Kyle v.

Morton High Sch., 144 F.3d 448, 452 (7th Cir. 1998). Con-

versely, “[p]eople have a legitimate claim of entitlement

to keep that which presently securely belongs to them.

Where state law gives people a benefit and creates a

system of nondiscretionary rules governing revocation or

renewal of that benefit, the recipients have a secure and

durable property right, a legitimate claim of entitlement.”

Cornelius v. LaCroix, 838 F.2d 207, 210 (7th Cir. 1988).

Further, “to recover for a deprivation of a property

interest, [a plaintiff] must show some economic loss from

the [state’s] action, or at least an identifiable impact on

his future income or economic benefits.” Bordelon v. Chicago

Sch. Reform Bd. of Tr., 233 F.3d 524, 530 (7th Cir. 2000).

Purely dignitary and non-pecuniary interests, such as

professional satisfaction, personal relationships, and

reputation, do not constitute property. Id. “[A] job action

that causes no pecuniary loss whatsoever does not impli-

cate the Constitution.” Deen, 414 F.3d at 734 (citations

omitted). See also Swick v. City of Chicago, 11 F.3d 85, 87

(7th Cir. 1993).

The first step of the due process analysis requires us to

consider initially whether Barrows had property interests

in his backup position and leave time, and secondarily

whether he suffered economic harm from a property

deprivation. As the parties seem to agree that Barrows

had a right to assume his backup position, the question

is at what point the University was obligated to place

him in that position. The University of Wisconsin System

Unclassified Personnel Guidelines § 3.02 provides that

“[s]hould a limited appointee with a faculty or aca-

demic staff backup appointment be terminated from the

limited position, the appointee has no minimum notice

No. 06-1582 7

rights. However, the appointee has the right to assume

the backup position without separation in service.” The

Guidelines do not define what constitutes “separation in

service.” Section 3.02 also provides that if a limited ap-

pointee resigns from the limited appointment and re-

quests to return to his permanent appointment, “[s]uch

requests should be honored as soon as possible by the

authorized official. However, in the event a position is

not readily available, or with the agreement of the li-

mited appointee the authorized official may place the

limited appointee on leave of absence until a vacancy

becomes available.” Id.

While it is clear that Barrows had a right to assume his

backup position, that right was not “immediate,” as he

has characterized it, but only “without separation in

service” in the case of termination, or upon his request

to return to his permanent appointment, in the case of

resignation. See Guideline § 3.02. Thus, if Barrows was

terminated, he had “the right to assume the backup

position without separation in service.” UW Personnel

Guideline § 3.02. In this case, however, the record does not

support Barrows’s claim that he was terminated; an

individual who is terminated does not continue to re-

ceive compensation from his employer, as Barrows did at

the annual rate of nearly $200,000. Moreover, there was

no separation between Barrows and the University be-

cause, although he was placed on unpaid administrative

leave, he continued to receive compensation through

the use of his leave time.

As stated above, the Guidelines also afford the right

to placement in a backup position upon the resignation

from a limited appointment and a request for placement

in the backup position. See Guideline § 3.02. There is no

evidence in the record that Barrows requested to be

8 No. 06-1582

placed in his backup position or challenged the Univer-

sity’s failure to immediately place him in his backup

position. Although Barrows asserted in his affidavit that

he sought to return to work, this generalized statement

is insufficient to establish that he sought his backup

position.

Moreover, Barrows failed to assert economic harm

flowing from the University’s decision not to immedi-

ately place him in his backup position. As noted, while

he was on leave Barrows continued to receive compensa-

tion at the Vice Chancellor rate of pay of $191,749.00

annually, as opposed to the rate of pay for his backup

appointment, $72,881.00. Thus, as opposed to an economic

harm, Barrows seemingly benefitted by cashing in on

his various leave categories.

Barrows argues in response that he suffered an eco-

nomic harm by being forced to use his leave time, in-

cluding sick, ALRA, and vacation time. In support of

his position, Barrows cites several University policies

that allow for employees to receive compensation for

unused sick, ALRA, and vacation time after they leave

the University’s employ. Barrows then argues that by

forcing him to use this leave time, rather than placing

him in the backup position, the University deprived him

of the extra compensation he would have received after

he left the backup position.

The problem with Barrows’s argument is that he did

not present sufficient evidence of an economic harm

because he failed to provide an adequate loss calculation.

In his affidavit filed with the district court, Barrows set

forth the number of hours of leave that he used from

November 1, 2004, through June 20, 2005, calculating

each at the hourly rate of his Vice Chancellor position.

No. 06-1582 9

He concluded that he lost a total of $171,589.48 as a result

of the loss of his vacation, ALRA, sick leave, salary, and

supplemental health insurance conversion credit. There

are several deficiencies in this amplified calculation.

First, Barrows did not take into account the salary dif-

ferential between the two positions. The University paid

Barrows for leave at his Vice Chancellor rate of pay,

which was about two and one-half times higher than

the salary paid in the backup position. Barrows failed to

cite to anything in the record that would establish that

upon leaving his backup position, he would be paid for

unused ALRA or vacation leave time at the higher Vice

Chancellor rate of pay, as opposed to at the rate of pay

he would have earned in the backup position. Second,

Barrows failed to account for the time value of money.

Leave pay paid in 2004 and 2005 is worth more than the

same money paid in the future. Third, Barrows did not

take into account the probability that he would have

used some of the leave time at issue before his retire-

ment. Fourth, Barrows did not address or incorporate into

his loss assessment the possibility that he may leave the

University system before retirement at age fifty-five.3

Finally, Barrows failed to incorporate into his analysis

the caps and other restrictions on the usage of various leave

time. See id; UW Personnel Guidelines § 9.03 (provid-

ing, in part, that “[u]nused vacation may be carried over

3

See The University Wisconsin-Madison, Business Services Sick

Leave Conversion Credit Program, http://www.bussvc.wisc.

edu/ecbs/lev-aslcc-shicc-information-chart-uw1048.html (last

visited February 8, 2007) (setting forth requirements for partici-

pation in sick leave conversion program; individuals who

terminate their employment with the University with less than

twenty years of service are not eligible for that program).

10 No. 06-1582

to the next fiscal year for up to one year after the year

in which it accrues. . . . The institution, after sufficient

notice, may require annual pay basis staff to use all accrued

vacation, personal holidays, floating holidays and leave

accumulated in the Annual Leave Reserve Account prior

to retirement, layoff or termination without cause or for-

feit any unused leave balance.”).

The district court recognized these deficiencies, and aptly

stated:

Where plaintiff had provided a competently computed

present value figure of the lost credit toward his

insurance premiums he would then have to show

that figure was greater than the $76,969.75 difference

between the gross wages he received ($124,140.18) from

November 2004 through June 23, 2005 and the gross

wages he would have received in his back up position

($47,170.23). Since plaintiff has not made this showing,

he has not demonstrated that he suffered any economic

harm.

Barrows v. Wiley, No. 05-C-658-S, 2006 WL 167452, at *3

(W.D.Wis., Jan 23, 2006). In light of the aforementioned

deficiencies, Barrows has not established that he suffered

economic harm through the use of his leave time. See

Bordelon, 233 F.3d at 531.

Barrows counters that under Swick v. City of Chicago,

11 F.3d 85 (7th Cir. 1993), the loss of his leave time was

“great economic harm,” and, thus, a property interest.

Barrows’s reliance on Swick is misplaced. In Swick, we

held that a police officer who was placed on involuntary

sick leave without salary, but received the same amount

of money in the form of sick pay, was not denied

due process because he was not suspended and did not

suffer a pecuniary loss in the loss of his badge or other

No. 06-1582 11

authority. Swick, 11 F.3d at 86. In dicta we stated that “[w]e

can imagine a case in which a period of forced inactivity

impeded promotional opportunities or had other indi-

rect effects on post-retirement income.” Id. Not only is

this passage from Swick dicta that is not controlling,

see Atterberry v. Sherman, 453 F.3d 823, 828 (7th Cir. 2006),

but we certainly cannot rely on our imagination to make

a case that the plaintiff did not prove. As emphasized

above, in this case, Barrows failed to present sufficient

evidence of an economic harm on his post-retirement

or post-termination income. Accordingly, the district

court properly granted the University and Wiley sum-

mary judgment.

III.

Barrows failed to establish either a property interest or

an economic harm flowing from the University’s decision

not to immediately place Barrows in his backup position,

and instead having him use his sick, vacation, and ALRA

leave time for compensation. Accordingly, Barrows’s

due process claim fails, and the district court properly

granted the defendants summary judgment. We AFFIRM.

A true Copy:

Teste:

_____________________________

Clerk of the United States Court of

Appeals for the Seventh Circuit

USCA-02-C-0072—2-22-07

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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