Abraham Shamie, Cross-Appellant v. City of Pontiac, Cross-Appellee

620 F.2d 118, 1980 U.S. App. LEXIS 18469
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 21, 1980
Docket78-1301, 78-1302
StatusPublished
Cited by20 cases

This text of 620 F.2d 118 (Abraham Shamie, Cross-Appellant v. City of Pontiac, Cross-Appellee) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abraham Shamie, Cross-Appellant v. City of Pontiac, Cross-Appellee, 620 F.2d 118, 1980 U.S. App. LEXIS 18469 (6th Cir. 1980).

Opinion

BOYCE F. MARTIN, Jr., Circuit Judge.

This case is a product of plaintiff-appellee Abraham Shamie’s nine-year effort to obtain a liquor license from the City of Pontiac, Michigan. Between 1970 and 1975, Sha-mie made repeated unsuccessful applications to the local licensing authorities. Finally, in December, 1975, he filed suit in federal district court against the City and various City officials. His complaint, based on 42 U.S.C. § 1983 and 28 U.S.C. § 1331, alleged violation of his due process and equal protection rights. At a preliminary hearing, counsel for defendant-appellant Pontiac assured the court that city authorities would process Shamie’s then-pending license application in accordance with routing procedures prescribed by a new city ordinance. In response to a suggestion by the district judge, Pontiac’s attorney also agreed that the licensing commission would, in the event of a negative decision, furnish Shamie with reasons supporting denial of his application. Shamie accepted the City’s proposals and on December 16, 1975, the court issued an order embodying the parties’ agreement.

In May, 1976, the commission disapproved Shamie’s application. In lieu of intelligible “reasons” for its action, it offered only the pronouncement that the plan was “not consistent with the priorities established.” Shamie amended his proposal, presumably to conform to the “priorities,” and resubmitted it. City authorities again rejected the plan on June 8, 1976, this time without written comment.

Shamie pursued his case in district court, which issued an opinion on December 28, 1977. Shamie v. City of Pontiac, 443 F.Supp. 679 (E.D.Mich.1977). The court found that the City had failed to accord Shamie due process and assessed “exemplary damages” of $25.00 per day, to accrue from June 8,1976, (the date the commission first failed to comply with the agreement between Shamie and the City’s attorney), until the city authorities rectified their omission. The commission finally issued reasons for another rejection of Shamie’s plan on July 12, 1979. The complaint against individual city officials was dismissed.

In this appeal, the City of Pontiac seeks reversal of the damage judgment against it.

Shamie cross-appeals, alleging that he is entitled to damages from the period between 1970 and December 16, 1975. He insists that he was denied due process, equal protection, and the right to petition the government even before he entered into the agreement with Pontiac’s attorney.

Before reaching the merits, we must determine whether Monell v. New York Department of Social Services, 436 U.S. 658, 98 S.Ct. 2018, 56 L.Ed.2d 611 (1978), decided while this appeal was pending, affects our jurisdiction to hear this case. According to Monell, local governments continue to enjoy immunity from suit under 42 U.S.C. § 1983, unless “the action that is alleged to be unconstitutional implements or executes a policy statement, ordinance, regulation or decision officially adopted and promulgated by that body’s officers.” Id. at 690, 98 S.Ct. at 2036. (Emphasis added).

The Supreme Court specifically declined to delineate the precise scope of the Monell rule. Id. at 701, 98 S.Ct. at 2041; see also 26 Cr.L. 2091. In this instance, however, the Pontiac licensing authority’s persistent refusal to give Shamie reasons for *120 denying his application appears to fall within the language quoted above. In effect, Shamie has raised constitutional objections to a decision binding on an organ of city government. What triggers the Monell exception is that such a deprivation has been claimed from a decision issuing from a policy or “custom” of the local government. We therefore find that the jurisdictional limitations imposed by Monell do not encompass the present case. The same reasoning applies to jurisdiction under 28 U.S.C. § 1331, since we have held that the Monell principle extends to that statute as well. Jones v. City of Memphis, Tennessee, 586 F.2d 622 (6th Cir. 1978). Accordingly, we proceed to consider the merits of Sha-mie’s arguments.

We emphasize at the outset that a mere finding of jurisdiction to entertain Shamie’s claim does not determine our ultimate resolution of the substantive issues he presents. Indeed, for the reasons which follow, we hold that Shamie did not in fact suffer a denial of due process as a result of the City’s conduct.

The district court found, correctly, that first-time liquor license applicants are not normally entitled even to “minimal due process” under Michigan state law. Thus, in ordinary circumstances, the City authority’s failure to give reasons for denying a liquor license would be unassailable on constitutional grounds. However, the district court went on to extend the principle of Perry v. Sindermann, 408 U.S. 593, 92 S.Ct. 2694, 33 L.Ed.2d 723 (1972) to this case; on that basis, it decided that the agreement made in district court between Shamie and the City’s attorney gave Shamie a “property interest” in the outcome of his application. This “property interest,” in turn, entitled him to a “minimal due process,” including the right to reasons for any post-agreement denial of his application. We cannot agree with this analysis.

Perry involved a college professor who had been teaching in the Texas state school system for ten years. The junior college where he was employed at the time of the litigation had no formal tenure system. He brought suit when his contract was terminated without a hearing, allegedly because he had exercised his First Amendment rights by criticizing the school’s Board of Regents. Normally, untenured employees have no “property interest” protectible by procedural due process constraints. Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972). Tenured employees, however, do have such a property interest, and are entitled to a pre-termination hearing. Roth, supra, at 576, 92 S.Ct. at 2708, citing Slochower v. Board of Higher Education of New York, 350 U.S. 551, 76 S.Ct. 637, 100 L.Ed. 692 (1956). Perry alleged that he enjoyed de facto tenure because of his long service and an “understanding” with the college administration, embodied in a University Board “Policy Paper.” The Supreme Court held that if Perry’s allegations were true, i. e., if he was in fact the equivalent of a tenured employee, he was entitled to a due process hearing.

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Bluebook (online)
620 F.2d 118, 1980 U.S. App. LEXIS 18469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abraham-shamie-cross-appellant-v-city-of-pontiac-cross-appellee-ca6-1980.