Opinion

Gerald Covell v. Harmon Menkis

Court
Court of Appeals for the Seventh Circuit
Filed
Feb 8, 2010
Status
Published
On the bench
Bauer
Nature of suit
civil
Cited by
0 cases
Authority
More cited than 39.9%

The opinion

In the

United States Court of Appeals

For the Seventh Circuit

No. 08-3245

G ERALD C OVELL,

Plaintiff-Appellant,

v.

H ARMON P. M ENKIS, et al.,

Defendants-Appellees.

Appeal from the United States District Court

for the Central District of Illinois.

No. 3:05-cv-03207-RM-BGC—Richard Mills, Judge.

A RGUED N OVEMBER 5, 2009—D ECIDED F EBRUARY 8, 2010

Before B AUER, M ANION and W ILLIAMS, Circuit Judges.

B AUER , Circuit Judge. After being terminated from

his employment, Gerald Covell filed an action under

42 U.S.C. § 1983. The district court entered summary

judgment for the Defendants. We affirm.

I. BACKGROUND

The Illinois Deaf and Hard of Hearing Commission

(“IDHHC”) is a state government agency that was estab-

2 No. 08-3245

lished after the Illinois General Assembly passed the Deaf

and Hard of Hearing Commission Act (“the Act”) in 1996.

IDHHC coordinates services for, and advocates on

behalf of, deaf and hard-of-hearing individuals in Illi-

nois. Gerald Covell became the Director of IDHHC

in November 1998, and served in that capacity until

August 8, 2003, when the IDHHC Commissioners (the

“Defendants”) voted to terminate him, effective immedi-

ately.

After being terminated, Covell filed suit, claiming that

the Defendants violated his property and liberty interest

rights under 42 U.S.C. § 1983, without due process.

First, Covell maintains that he had a property interest

in his employment, but was terminated without being

afforded a required pre-termination hearing or any post-

termination process to challenge his discharge. Second,

Covell contends that the Defendants deprived him of

his liberty interest in employment, by disseminating

false information related to his termination without

providing a name clearing hearing, and because of these

stigmatizing disclosures, he suffered a tangible loss of

other employment. Specifically, Covell alleges that the

Defendants disclosed that he was terminated for

viewing pornographic material on a state-issued laptop

computer while on state time and altering his own time

sheets.

In entering summary judgment for the Defendants, the

district court concluded that Covell did not have a prop-

erty interest in his position as Director of IDHHC and,

based on the language of the Act and in the bylaws,

Covell did not have an objectively reasonable basis for

No. 08-3245 3

believing that he had such an interest. In the alternative,

the district court held that even if Illinois law did give

Covell a property interest in his position under Illinois

law, that law was not clearly established, and accordingly,

the Defendants were entitled to qualified immunity.

Further, the district court held that Covell could not

prevail on his liberty interest claim because he could not

show that any individual Defendant publicly dis-

seminated any stigmatizing information regarding his

termination. Covell timely filed this appeal.

II. DISCUSSION

We review the district court’s grant of summary judg-

ment de novo, construing all facts and reasonable infer-

ences in Covell’s favor. Winsley v. Cook County, 563

F.3d 598, 602 (7th Cir. 2009). Summary judgment is

proper if the pleadings, discovery materials, disclosures,

and affidavits demonstrate no genuine issue of material

fact such that the Defendants are entitled to judgment as

a matter of law. Fed R. Civ. P. 56(c).

A. Property Interest

In order to make his due process claim, Covell must first

demonstrate that he had a constitutionally protected

property interest. Rujawitz v. Martin, 561 F.3d 685, 688 (7th

Cir. 2009) (citing Border v. City of Crystal Lake, 75 F.3d 270,

273 (7th Cir. 1996)); Moss v. Martin, 473 F.3d 694, 700 (7th

Cir. 2007). A person’s interest in a benefit, such as contin-

ued employment, constitutes “property” for due process

4 No. 08-3245

purposes only if “there are such rules or mutually explicit

understandings that support his claim of entitlement to

the benefit.” Border, 75 F.3d at 273. A protected

property interest in employment can arise from a

statute, regulation, municipal ordinance, or an express

or implied contract, such as “rules or understandings

that secure certain benefits and that support claims of

entitlement to those benefits.” Border, 75 F.3d at 273

(citations omitted).

Since Covell was employed in Illinois, we look to Illinois

law to determine whether he had a substantive property

interest in his employment with IDHHC. Moss, 473 F.3d

at 700. Under Illinois law, a person has a property

interest in his job where he has a legitimate expectation

of continued employment based on a legitimate claim of

entitlement. Id. (citations omitted). “To show a legitimate

expectation of continued employment, a plaintiff must

show a specific ordinance, state law, contract or under-

standing limiting the ability of the state or state entity

to discharge him.” Id. Covell argues that the administra-

tive rules and bylaws support his contention that he had

a legitimate expectation of continued employment.

2 Ill. Admin. Code § 3300.380(a), provides, in part, as

follows:

a) The Director shall be the executive officer of the

Commission; shall be hired, supervised, and

evaluated by the Commission; and shall serve

at the pleasure of the Commission. . . .

....

No. 08-3245 5

2) The Director shall be afforded the same rights

and privileges as outlined in the Personnel

Code [20 ILCS 415], except for hiring.

Similarly, Article VI, Section I of the Commission

Bylaws provides:

1. Director shall be the executive officer of the

Commission; shall be hired, supervised, and

evaluated by the Commission; and shall serve

at the pleasure of the Commission.

....

3. The Director shall be afforded the same rights

and privileges as outlined in the Personnel

Code (20 ILCS 415), except for hiring.

The Personnel Code, mentioned in both the Admin-

istrative Rules and Bylaws, provides a system of personnel

administration for the state government under the gov-

ernor, based on merit principles and scientific methods.

See 20 Ill. Comp. Stat. 415/2. Generally, directors of depart-

ment and members of commissions are exempted from

the Personnel Code. See 20 Ill. Comp. Stat. 415/4c(7),

amended by 2008 Ill. Legis. Serv. P.A. 95-728 (S.B. 970).

However, the Personnel Code provides for partial exemp-

tions for directors and other positions if the Civil

Service Commission determines that the position “in-

volve[s] either principal administrative responsibility

for the determination of policy or principal administra-

tive responsibility for the way in which policies are

carried out,” based upon written recommendation of the

Director of Central Management Services (“CMS”). 20 Ill.

6 No. 08-3245

Comp. Stat. 415/4d(3). Accordingly, provisions of the

Personnel Code, called “jurisdictions”, can be extended to

specified individuals if the CMS Director makes the

recommendation. The Personnel Code provides, in part:

No officer or employee under jurisdiction B, relating

to merit and fitness, who has been appointed under

the rules and after examination, shall be removed

discharged or demoted, or be suspended for a period

of more than 30 days, in any 12 month period, except

for cause. See 20 Ill. Comp. Stat. 415/11 (emphasis

added).

Therefore, if Covell was covered under jurisdiction B,

he could only be terminated for cause.

Covell does not argue that he was covered by the Per-

sonnel Code. See Reply Br. at 5. However, he claims that

he had a property interest in his employment because

he had “the same rights and privileges as outlined in

the Personnel Code [20 ILCS 415], except for hiring.” Based

on the language of the Personnel Code, Covell maintains

that he could not be terminated from his employment

absent good cause, and argues that the lack of either a pre-

disciplinary hearing or a prompt hearing following

the assessment to terminate him violated his rights

under 42 U.S.C. § 1983.

The Defendants dispute that Covell could only be

terminated for cause and maintain that Covell was an

“at will” employee who served “at the pleasure” of the

Commission. To the extent that Covell argues that the

Defendants intended to provide him an extension of

Personnel Code protection for all employment matters,

No. 08-3245 7

other than hiring, the Defendants assert that any

attempt would be beyond the Commission’s authority.

The Defendants note that the General Assembly specifi-

cally created a provision for extension of jurisdiction

within the Personnel Code, see 20 Ill. Comp. Stat. 415/4b,

but there is no evidence that the Defendants sought

to undertake this process in order to provide Covell

with all of its protections, except for the specific pro-

vision related to hiring. Covell maintains that the Com-

mission’s inclusion of the phrase “except for hiring” was

based on its desire to be able to hire a deaf director in

the future.

Viewing the facts in the light most favorable to Covell,

we conclude that he failed to sufficiently demonstrate

that he had a property interest in his employment

because he did not establish that there was a mutually

explicit understanding that he could only be terminated

for cause. Instead, the rules governing the Commission

make clear that Covell’s position as Director of IDHHC

was terminable at will. The language from 2 Ill. Admin.

Code § 3300.380(a) that states that the Director “shall be

hired, supervised, and evaluated by the Commission; and

shall serve at the pleasure of the Commission” as well as

the portion of the bylaws that state that he “shall serve

at the pleasure of the Commission” supports this con-

clusion. The Personnel Code, standing alone, does not

establish that Covell could only be terminated for cause,

as it provides multiple rights and privileges, and Covell

cannot establish that he is entitled to the protections

under jurisdiction B. To find a contrary interpretation, i.e.,

that Covell enjoyed the right to be employed except

8 No. 08-3245

for cause, would conflict with the previously stated

language that states Covell serves “at the pleasure of the

Commission.” As we conclude that Covell was an at-will

employee, it is unnecessary to discuss whether the Defen-

dants would be covered under qualified immunity.

B. Liberty Interest

When an individual is terminated from a position “for

stated reasons likely to make him all but unemployable

in the future, by marking him as one who lost his job

because of dishonesty or other job-related moral turpi-

tude,” due process must be provided. Lawson v. Sheriff of

Tippecanoe County, 725 F.2d 1136, 1139 (7th Cir. 1984). A

government employee’s liberty interests are implicated

where in terminating the employee the government

“make[s] any charge against him that might seriously

damage his standing and associations in the community”

or “impose[s] on him a stigma or other disability that

foreclose[s] his freedom to take advantage of other em-

ployment opportunities.” Bd. of Regents v. Roth, 408 U.S.

564, 573 (1972).

In order to prevail on a liberty interest claim, a plaintiff

must show “that (1) he was stigmatized by the

defendant’s conduct, (2) the stigmatizing information

was publically disclosed, and (3) he suffered a tangible

loss of other employment opportunities as a result of

public disclosure.” Townsend v. Vallas, 256 F.3d 661, 669-70

(7th Cir. 2001) (citations omitted). A plaintiff must demon-

strate that a named defendant was the individual who

made the disclosure; a “res ipsa loquitur[-]like approach,

No. 08-3245 9

while perhaps sufficient to establish that someone . . .

published the information, does not sufficiently establish

that the someone was [a named Defendant].” McMath v.

City of Gary, 976 F.2d 1026, 1031 (7th Cir. 1992) (emphasis

in original). Further, the specific stigmatizing state-

ments must be made public; statements made to

employees within a department are not considered

public dissemination. Id. at 1035-36.

In finding that Covell could not prevail on his liberty

interest claims, the district court reasoned that Covell

failed to demonstrate that any of the Defendants

disclosed the stigmatizing information. The district court

concluded that the Defendants cannot be liable under

42 U.S.C. § 1983 for actions of others, even if the other

individuals who disseminated the stigmatizing infor-

mation were affiliated in some way with the Commis-

sion and the Defendants.

In his appeal, Covell maintains that “[a] constitutional

violation under the Due Process Clause with respect to a

liberty interest claim is not the dissemination of informa-

tion, but instead the failure to provide a name clearing

hearing.” Appellant’s Br. at 29. Citing Mitchell v. Glover,

996 F.2d 164 (7th Cir. 1993), and Ratliff v. Milwaukee,

795 F.2d 612 (7th Cir. 1986), Covell contends that if the

dissemination was by the government, but not neces-

sarily by one of the Defendants, his liberty interest was

implicated because the government employer needs

only to have a role in disclosing the information. Ac-

cordingly, Covell asserts that because the release and

dissemination of the stigmatizing information had to

10 No. 08-3245

originate from either a named Defendant or a Com-

mission employee, a reasonable trier of fact could con-

clude that the Defendants set in motion the dissemina-

tion of information, which would be sufficient to set

forth a cognizable claim.

Like the district court, we disagree with Covell’s asser-

tion. McMath makes clear that a plaintiff must prove that

a defendant disseminated the stigmatizing information

to the public. This court cannot find any evidence that

any individual Defendant disseminated the stigmatizing

information to the public. The district court properly

discounted Mitchell and Ratliff, both of which named

the employing entity as a defendant and both of which

held that the plaintiff failed to establish a liberty interest

claim.

On appeal, Covell notes that while the local governmen-

tal defendants in Mitchell and Ratliff could be named as

defendants, the Commission, as an agency of the state,

could not be joined in an action under 42 U.S.C. § 1983.

App. Br. at 30. He then cites to Hannon v. Turnage, 892

F.2d 693 (7th Cir. 1990), contending that like the case at

bar, Hannon did not require as a condition of liability

that the individual defendants participated in the dissemi-

nation of information. We do not find that Hannon sup-

ports Covell’s argument, as the Hannon court concluded

that there was no liberty interest deprivation. Hannon,

892 F.2d at 660. We further note that even if 42 U.S.C.

§ 1983 permitted an entity like the Commission to be

named in a lawsuit, Covell would still need to establish

that a named defendant violated his liberty interests. See

No. 08-3245 11

McMath (“Furthermore, the City of Gary cannot be held

liable on this claim unless [the mayor], an official whose

acts constituted official policy of the City of Gary, violated

[the plaintiff’s] liberty interests.”) We conclude that

Covell failed to sufficiently demonstrate that the Defen-

dants’ actions deprived him of a liberty interest.

III. CONCLUSION

For the reasons stated above, we A FFIRM the judgment

of the district court.

2-8-10

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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