Bjorklund v. Miller

467 F. App'x 758
CourtCourt of Appeals for the Tenth Circuit
DecidedMarch 7, 2012
Docket11-5037
StatusUnpublished
Cited by9 cases

This text of 467 F. App'x 758 (Bjorklund v. Miller) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bjorklund v. Miller, 467 F. App'x 758 (10th Cir. 2012).

Opinion

ORDER AND JUDGMENT *

JOHN C. PORFILIO, Senior Circuit Judge.

Rick Bjorklund brought this civil rights suit pursuant to 42 U.S.C. § 1983 against four public officials associated with his former employer, the Tulsa County Public Facilities Authority (“TCPFA”). In his complaint, he charged that the officials had terminated his employment and deprived him of a liberty interest in his reputation and good name without affording him due process of law. The defendants moved for summary judgment. The district court granted their motion as to all claims except two: a deprivation-of-property-interest claim against defendant Randi Miller in her individual and official capacities, and a deprivation-of-liberty-interest claim against Ms. Miller in her individual capacity. Ms. Miller appeals the district court’s denial of qualified immunity on the individual-capacity claims. We affirm.

BACKGROUND

1. The Employment Agreement

The TCPFA is a public trust organized under Oklahoma law. It manages activities on the Tulsa County Fairgrounds and other property in Tulsa County, Oklahoma. The TCPFA is governed by its Board of Trustees. During the time period relevant to this action, the Board included Ms. Miller and the other three defendants named in Mr. Bjorklund’s complaint.

On January 1, 2007, the TCPFA employed Mr. Bjorklund as its President and Chief Executive Officer. The TCPFA and Mr. Bjorklund executed a written Employment Agreement (“Agreement”) that provided him with a five-year term of employment. ApltApp., Vol. IV at 829. 1 The Agreement required Mr. Bjorklund to perform the usual duties associated with his position and also other duties as assigned by the TCPFA. Id. at 828. He agreed to act faithfully and industriously and to perform these duties to the TCPFA’s reasonable satisfaction.

The Agreement listed six circumstances under which the TCPFA had “the right to terminate this Agreement at any time, without notice.” Id. at 833. One of these circumstances would occur “[i]f [Mr. Bjorklund should] violate any of the provisions of this Agreement or if [Mr. Bjorklund should], by misconduct or negligent inattention to the rendering and performance of his responsibilities hereunder, injure the business or goodwill of [the TCPFA] or hinder the accomplishment of [the TCPFA’s] objectives.” Id.

2. The “Big Splash” Account

As part of his duties, Mr. Bjorklund managed the account of the TCPFA’s ten *761 ant, Expo Water Park, Inc., also known as Big Splash Water Park (“Big Splash”). Big Splash’s lease required it to make annual rent payments to the TCPFA no later than October 15 of each year. On October 15, 2006, shortly before the commencement of Mr. Bjorklund’s employment, Big Splash failed to make its annual rent payment.

One of Mr. Bjorklund’s duties as President and CEO of the TCPFA was to distribute to its trustees monthly statements detailing the TCPFA’s financial status. These statements included a section entitled “Summary Aging of Accounts Receivable,” which listed by name accounts payable to the TCPFA that were more than sixty days overdue. Preston Jackson, the TCPFA’s controller, prepared these monthly financial statements. Mr. Jackson reported directly to Mr. Bjorklund.

After the Big Splash account became more than sixty days overdue, the account began appearing in the “Summary Aging of Accounts Receivable.” Mr. Bjorklund asserts that in January 2007, he had a telephone conversation with Big Splash’s then-owner concerning the unpaid rent. During the conversation, the owner promised to pay half of its overdue rent immediately and to provide a cheek post-dated to June 2007 for the remainder of the rent. The owner provided the two checks as promised. Mr. Bjorklund did not notify the Board of this arrangement.

Mr. Bjorklund alleges that in June 2007 he had another conversation with Big Splash’s owner. During this conversation, the owner informed Mr. Bjorklund that the post-dated check would not clear and asked Mr. Bjorklund not to deposit it. Acting on Mr. Bjorklund’s instructions, Mr. Jackson retrieved the check from the bank where it had been sent for deposit.

Mr. Bjorklund consulted with Ms. Miller, who was then Chairman of the TCPFA’s Board, about the Big Splash rent issue. According to Mr. Bjorklund, Ms. Miller told him, “[WJell, we need to just keep it off the radar.” Id., Yol. II at 239. Mr. Bjorklund understood her to mean that he should not let the unpaid rent become “a spectacle,” and that he should not “let it be public.” Id. at 239-40.

Mr. Bjorklund passed on to Mr. Jackson Ms. Miller’s admonition to keep the Big Splash account “off the radar.” In response to this instruction, Mr. Jackson removed the account from the “Summary Aging of Accounts Receivable” section of the monthly financial statements, and placed it in a different category. In this new category, the debt to Big Splash was not specifically identified by name. See id., Vol. I at 103.

3. The “Big Splash” Investigation

In August 2007, a local television station filed an Open Records Act request with the TCPFA seeking information on all payments from Big Splash to the TCPFA between 2000 and the date of the request. Even though he was still holding the postdated rent check from Big Splash, Mr. Jackson erroneously reported in response to this request that Big Splash had made its full rent payment due in October 2006. On October 15, 2007, Big Splash again failed to make its annual rent payment.

During the first half of 2008, the TCPFA’s Board and its legal counsel, Thomas Hilborne, received information suggesting that Big Splash was suffering financial difficulties. Board members also became aware that Big Splash had failed a safety inspection by state inspectors. At the end of June 2008, Mr. Bjorklund contacted Mr. Hilborne to discuss with him issues surrounding the Big Splash account.

On June 27, 2008, acting on instructions from Mr. Hilborne, Mr. Bjorklund spoke *762 with John Smaligo, who was by then the Board’s Chairman. He informed Mr. Smaligo of the uncashed check from Big Splash, its subsequent failure to pay rent for 2007, and the fact that this delinquency had been placed “off the radar.” Later that day, Mr. Bjorklund, Mr. Jackson, Mr. Hilborne and Mr. Smaligo met and discussed the Big Splash account, including the removal of the account from the “Summary Aging of Accounts Receivable” section of the monthly financial statements and Mr. Jackson’s inaccurate response to the Open Records Act request concerning Big Splash’s rent payments.

On the following day, a newspaper article appeared in the Tulsa World entitled “Big Splash late on 2007 rent.” Aplt.App., Vol. VI at 1459. The article reported on the delay in Big Splash’s payment of its 2006 rent as well as its delinquency for 2007. It noted that Big Splash owed the TCPFA $130,657. The article quoted both Mr. Smaligo and Mr.

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