Board of Comm'rs, Wabaunsee Cty. v. Umbehr

518 U.S. 668, 116 S. Ct. 2342, 135 L. Ed. 2d 843, 10 Fla. L. Weekly Fed. S 124, 96 Daily Journal DAR 7732, 64 U.S.L.W. 4682, 96 Cal. Daily Op. Serv. 4821, 11 I.E.R. Cas. (BNA) 1393, 1996 U.S. LEXIS 4262
Supreme Court of the United States·Decided June 28, 1996·No. 94-1654·Published·Cited by 742 cases

Opinions

Justice O’Connor

delivered the opinion of the Court.

This case requires us to decide whether, and to what extent, the First Amendment protects independent contractors from the termination of' at-will government contracts in retaliation for their exercise of the freedom of speech.

I

Under state law, Wabaunsee County, Kansas (County), is obliged to provide for the disposal of solid waste generated [671] within its borders. In 1981, and, after renegotiation, in 1985, the County contracted with respondent Umbehr for him to be the exclusive hauler of trash for cities in the County at a rate specified in the contract. Each city was free to reject or, on 90 days’ notice, to opt out of, the contract. By its terms, the contract between Umbehr and the County was automatically renewed annually unless either party terminated it by giving notice at least 60 days before the end of the year or a renegotiation was instituted on 90 days’ notice. Pursuant to the contract, Umbehr hauled trash for six of the County’s seven cities from 1985 to 1991 on an exclusive and uninterrupted basis.

During the term of his contract, Umbehr was an outspoken critic of petitioner, the Board of County Commissioners of Wabaunsee County (Board), the three-member governing body of the County. Umbehr spoke at the Board’s meetings, and wrote critical letters and editorials in local newspapers regarding the County’s landfill user rates, the cost of obtaining official documents from the County, alleged violations by the Board of the Kansas Open Meetings Act, the County’s alleged mismanagement of taxpayers’ money, and other topics. His allegations of violation of the Kansas Open Meetings Act were vindicated in a consent decree signed by the Board’s members. Umbehr also ran unsuccessfully for election to the Board.

The Board’s members allegedly took Umbehr’s criticism badly, threatening the official county newspaper with censorship for publishing his writings. In 1990, they voted, 2 to 1, to terminate (or prevent the automatic renewal of) Umbehr’s contract with the County. That attempt at termination failed because of a technical defect, but in 1991, the Board succeeded in terminating Umbehr’s contract, again by a 2 to 1 vote. Umbehr subsequently negotiated new contracts with five of the six cities that he had previously served.

In 1992, Umbehr brought this suit against the two majority Board members in their individual and official capacities [672] under Rev. Stat. § 1979, as amended, 42 U. S. C. § 1983, alleging that they had terminated his government contract in retaliation for his criticism of the County and the Board. The Board members moved for summary judgment. The District Court assumed that Umbehr’s contract was terminated in retaliation for his speech, and that he suffered consequential damages. But it held that “the First Amendment does not prohibit [the Board] from considering [Umbehr’s] expression as a factor in deciding not to continue with the trash hauling contract at the end of the contract’s annual term,” because, as an independent contractor, Umbehr was not entitled to the First Amendment protection afforded to public employees. Umbehr v. McClure, 840 F. Supp. 837, 839 (Kan. 1993). It also held that the claims against the Board members in their individual capacities would be barred by qualified immunity, id., at 841, a ruling which was affirmed on appeal and which is not at issue here.

The United States Court of Appeals for the Tenth Circuit reversed (except as to qualified immunity), holding that “an independent contractor is protected under the First Amendment from retaliatory governmental action, just as an employee would be,” and that the extent of protection is to be determined by weighing the government’s interests as contractor against the free speech interests at stake in accordance with the balancing test that we used to determine government employees’ First Amendment rights in Pickering v. Board of Ed. of Township High School Dist. 205, Will Cty., 391 U. S. 563, 568 (1968). 44 F. 3d 876, 883 (CA10 1995). It therefore remanded the official capacity claims to the District Court for further proceedings, including consideration of whether the termination was in fact retaliatory. The Board members who were the original defendants in this suit subsequently resigned their positions on the Board, so in this Court, the Board was substituted for them as petitioner. See this Court’s Rule 35.3.

[673] We granted certiorari to resolve a conflict between the Courts of Appeals regarding whether, and to what extent, independent contractors are protected by the First Amendment. The Fifth and Eighth Circuits agree with the Tenth Circuit. See Blackburn v. Marshall, 42 F. 3d 925, 931-935 (CA5 1995); Copsey v. Swearingen, 36 F. 3d 1336, 1344 (CA5 1994); North Mississippi Communications, Inc. v. Jones, 792 F. 2d 1330 (CA5 1986); Smith v. Cleburne County Hospital, 870 F. 2d 1375, 1381 (CA8), cert. denied, 493 U. S. 847 (1989); but see Sweeney v. Bond, 669 F. 2d 542 (CA8), cert. denied, 459 U. S. 878 (1982). See also Abercrombie v. Catoosa, 896 F. 2d 1228, 1233 (CA10 1990) (allowing an independent contractor to sue for termination based on his speech and political activities). The Third and Seventh Circuits have, however, held that an independent contractor who does not have a property interest in his contract with the government has no right not to have that contract terminated in retaliation for his exercise of First Amendment freedoms of political affiliation and participation. See Horn v. Kean, 796 F. 2d 668 (CA3 1986) (en banc); O’Hare Truck Service, Inc. v. Northlake, 47 F. 3d 883 (CA7 1995), reversed, post, p. 712; Downtown Auto Parks, Inc. v. Milwaukee, 938 F. 2d 705 (CA7), cert. denied, 502 U. S. 1005 (1991); Triad Assocs., Inc. v. Chicago Housing Authority, 892 F. 2d 583 (CA7 1989), cert. denied, 498 U. S. 845 (1990).

We agree with the Tenth Circuit that independent contractors are protected, and that the Pickering balancing test, adjusted to weigh the government’s interests as contractor rather than as employer, determines the extent of their protection. We therefore affirm.

II

A

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Board of Comm'rs, Wabaunsee Cty. v. Umbehr, 518 U.S. 668, 116 S. Ct. 2342, 135 L. Ed. 2d 843, 10 Fla. L. Weekly Fed. S 124, 96 Daily Journal DAR 7732, 64 U.S.L.W. 4682, 96 Cal. Daily Op. Serv. 4821, 11 I.E.R. Cas. (BNA) 1393, 1996 U.S. LEXIS 4262 (1996).

518 U.S. 668 (Board of Comm'rs, Wabaunsee Cty. v. Umbehr) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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