Alpha Energy Savers, Inc., an Oregon Corporation Robert Obrist v. Diane Hansen Multnomah County Judy Swendsen

381 F.3d 917, 21 I.E.R. Cas. (BNA) 1185, 2004 U.S. App. LEXIS 18238, 2004 WL 1908169
CourtCourt of Appeals for the Ninth Circuit
DecidedAugust 27, 2004
Docket03-35142
StatusPublished
Cited by109 cases

This text of 381 F.3d 917 (Alpha Energy Savers, Inc., an Oregon Corporation Robert Obrist v. Diane Hansen Multnomah County Judy Swendsen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Alpha Energy Savers, Inc., an Oregon Corporation Robert Obrist v. Diane Hansen Multnomah County Judy Swendsen, 381 F.3d 917, 21 I.E.R. Cas. (BNA) 1185, 2004 U.S. App. LEXIS 18238, 2004 WL 1908169 (9th Cir. 2004).

Opinion

REINHARDT, Circuit Judge.

This case requires us to consider the scope of constitutional protection afforded to public contractors who serve as witnesses in judicial and administrative proceedings. Robert Obrist testified at a grievance hearing, and filed an affidavit and agreed to be listed as a witness in a *921 federal discrimination lawsuit, on behalf of a former employee of Multnomah County. The County and two of its employees, Diane Hansen and Judy Swendsen (collectively referred to as “the defendants”), allegedly retaliated against Obrist by manipulating the County’s contracting procedures in order to deny work to his company, Alpha Energy Savers, Inc.

The district court granted summary judgment for the defendants on the ground that Obrist’s expressive conduct did not touch upon a matter of public concern and, thus, could not support a First Amendment retaliation claim under 42 U.S.C. § 1983. We reverse that ruling against Obrist and Alpha (collectively referred to as “the plaintiffs”). We also reverse the district court’s grant of summary judgment on the plaintiffs’ supplemental Oregon state law claim of intentional interference with contractual relations.

I. Background

For over ten years, Alpha has contracted with Multnomah County to provide insulation and other energy-saving weatherization services for the homes of low-income residents. 1

In a series of multi-year agreements with the County, Alpha and other vendors each specified the prices that they would charge (i.e.bid) for various types of weatherization services. 2 When a qualified low-income resident requests assistance, the County weatherization department conducts an audit to determine what specific services are required. Then, the County awards the job to the contractor who submitted the lowest bid for the particular combination of services — unless one of several exceptions applies (e.g. the lowest bidder exceeded its bonding limit or the weatherization department determines that the job is appropriate for the County’s welfare-to-work crew).

In April 1999, Curtis Stephens, a former employee of the County weatherization department, subpoenaed Robert Obrist, Alpha’s president and sole owner, to testify at a hearing before the Oregon Employment Relations Board. Stephens alleged that his union, Oregon AFSME Council 775, breached its duty of fair representation by failing to investigate and pursue a grievance against the County, which, he alleged, had wrongfully discharged him. The County’s stated reason for terminating Stephens was that he falsified weatherization audits. According to Stephens, these charges were fabricated by Judy Swendsen and Diane Hansen, two weatherization department employees who, he contended, were biased against him on account of his age and race. At the time that he was fired, Stephens was the oldest employee and the only black in the County weatherization department. 3

*922 At the grievance hearing, Obrist testified that he had never experienced any problems with the weatherization audits conducted by Stephens, recounted critical comments that Hansen and Swendsen had made about Stephens and his work, and expressed his opinion that Hansen and Swendsen “manipulated” the County weatherization program: “it’s either their way or the highway, there’s no gray areas.” On cross-examination, Obrist complained that Stephens was not the only victim of unfair treatment by Hansen and Swendsen; he testified that the two employees were also responsible for failing to award Alpha weatherization contracts to which it was entitled as the lowest bidder.

In addition to his testimony before the Oregon Employment Relations Board, Obrist also came to Stephens’s aid when Stephens filed suit against the County in federal court alleging race and age discrimination. In November 1999, Obrist submitted an affidavit stating that Stephens’s “work was as good as [that of] anyone else in the weatherization department,” that Swendsen and Hansen were “very biased” toward Stephens, and that they “worked toward the goal of getting [him] out of the weatherization department.” Obrist also agreed to testify on Stephens’s behalf, and the contents of his affidavit were summarized in the witness statement that Stephens filed in December 1999. Ultimately, however, Obrist was not required to testify because the County settled with Stephens for “a large sum of money.”

In the same period that Obrist was providing assistance to Stephens, he was also pursuing his own claim against the County for unfair treatment. Beginning in February 1999, Obrist complained to various County personnel that Alpha was being denied work to which it was entitled. An investigation conducted by Assistant County Attorney John Thomas determined that the weatherization department had not always awarded jobs to the lowest bidder. Following Thomas’s investigation, the weatherization department reformed its bidding procedures, and in February 2000, the County settled with Alpha for $18,800. 4 Alpha experienced a temporary spike in contract awards while the investigation was underway, but its share of the County jobs declined again after the settlement. In addition, Swendsen and other weatherization employees subjected Alpha’s work to increasingly rigorous inspections.

Early in 2000, the County began drafting new master weatherization contracts to replace the existing versions that were scheduled to expire. At a weatherization staff meeting, Hansen stated that she intended to “Rob proof’ the new contracts— an obvious reference to Robert Obrist. Hansen also confided to another County employee that she was “fixing it” so that Obrist would not receive further work from the County. Hansen and Swendsen helped revise provisions of the new contracts that increased the County’s discretion not to award jobs to contractors that were the lowest bidders. 5 The new contracts were completed in June and put into *923 effect in July, when they were executed by the individual vendors, each of whom signed a separate agreement.

Alpha, like the other vendors, entered into one of the new agreements with the County and was pre-authorized for up to $100,000 in contract awards. However, it received only two of the 1,004 jobs that the County awarded through October 2002. According to other contractors and County personnel, Hansen and Swendsen tampered with files, altered bidding sheets, manipulated the department’s computer database, and engaged in other schemes to direct work away from Alpha. Hansen and Swendsen also continued to make negative statements about Alpha, its owner, and its employees. For instance, Hansen called Obrist an “asshole” and the “antiChrist” and stated on several occasions: “We don’t want to give Obrist any jobs that he bid on.”

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381 F.3d 917, 21 I.E.R. Cas. (BNA) 1185, 2004 U.S. App. LEXIS 18238, 2004 WL 1908169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alpha-energy-savers-inc-an-oregon-corporation-robert-obrist-v-diane-ca9-2004.