Chaklos, Richard v. Stevens, Kathleen

CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 30, 2009
Docket07-3444
StatusPublished

This text of Chaklos, Richard v. Stevens, Kathleen (Chaklos, Richard v. Stevens, Kathleen) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chaklos, Richard v. Stevens, Kathleen, (7th Cir. 2009).

Opinion

In the

United States Court of Appeals For the Seventh Circuit

No. 07-3444

R ICHARD C HAKLOS and A NDREW W IST,

Plaintiffs-Appellants, v.

K ATHLEEN S TEVENS, M ICHAEL S HEPPO, D ONNA M ETZGER, and S USAN V ONDRAK,

Defendants-Appellees.

Appeal from the United States District Court for the Southern District of Illinois. No. 06 C 4063—J. Phil Gilbert, Judge.

A RGUED S EPTEMBER 22, 2008—D ECIDED M ARCH 30, 2009

Before E ASTERBROOK, Chief Judge, and R OVNER and W ILLIAMS, Circuit Judges. W ILLIAMS, Circuit Judge. When Richard Chaklos and Andrew Wist discovered that the State of Illinois was going to pay an out-of-state organization $750,000 to train forensic scientists without first soliciting competi- tive bids, they decided to take action and try to save the 2 No. 07-3444

taxpayers some money. They submitted a letter pro- testing the State’s decision not to solicit bids and proposing to provide the same training services for a lower price through their own company. At the time, however, the State employed Chaklos and Wist to train forensic scientists. (They had formed their training com- pany on the side.) Their supervisors (defendants) were taken aback by this letter and suspended Chaklos and Wist, who claim the suspension violated their First Amendment rights. Without deciding whether this amounts to a constitu- tional violation, we hold that defendants are entitled to qualified immunity because the law does not make clear that their action was unconstitutional. See Pearson v. Callahan, 129 S. Ct. 808 (2009). Although some statements in the letter (those regarding Chaklos and Wist’s own proposal for the state contract) do not rise to the level of public concern, we conclude that, in main part, the letter addresses wasteful government spending, which is a matter of public concern. However, it is not obvious whether Chaklos and Wist’s interest in making such speech outweighs their employer’s interest in efficient service. Due to several unusual facts in this case, resolving the issue entails fine line-drawing, the very nature of which entitles defendants to immunity. Therefore, we affirm the grant of summary judgment in defendants’ favor.

I. BACKGROUND In January 2004, the State of Illinois allocated money to process a backlog of DNA evidence from rape victims No. 07-3444 3

that had not been tested due to a shortage of forensic scientists at the Illinois State Police Crime Lab. The Illinois State Police (ISP) received money to hire and train 14 (later 15) new forensic scientists. This case arises from ISP’s plan to use some of that money. Plaintiffs, Chaklos and Wist, were employed by ISP to train forensic scientists. Wist trained scientists in DNA analysis and Chaklos trained scientists in drug chemical analysis. Shortly after the governor of Illinois approved ISP’s request to hire additional scientists, members of ISP’s Forensic Sciences Command discussed how best to train the new scientists. They ultimately decided to hire the National Forensic Science Training Center (NFSTC), a not-for-profit company located in Florida. Although NFSTC had conducted training for ISP person- nel at no cost to the State of Illinois in the past, this training was projected to cost the State nearly $750,000. The State of Illinois encourages competitive bidding for state contracts and purchases. However, contracts can be awarded on a “sole source” or “no-bid” basis (rather than competitively bid) if there is only one economically feasible source able to meet the requirements of the contract. In this case, although several people at ISP thought the training contract should be competitively bid, the Director of ISP recommended the contract be sole- sourced based on the recommendation of Susan Vondrak (Director of Training of ISP’s Forensic Sciences Com- mand), Donna Metzger (Assistant Commander), and Kathleen Stevens (Deputy Director of the Forensic Services Command). 4 No. 07-3444

Chaklos and Wist became upset when they heard about the contract. Wist had participated in some dis- cussions regarding NFSTC’s involvement in the training but had done so under the belief that its training services would be free of cost to the State. Wist had also dis- cussed alternative options such as training the new scien- tists internally rather than outsourcing the training. When he discovered that the State was paying for the services (and overpaying, he thought, at that), however, he and Chaklos decided the State could do better. In addition to their duties with ISP, Chaklos and Wist owned and operated Midwest Forensic Services, Inc. (MFS). After the State’s no-bid contract with NFSTC was published online pursuant to the State of Illinois Depart- ment of Central Management Services (CMS) procedures, Chaklos and Wist submitted a protest letter to Michael Yokley, an ISP procurement official. The letter was on MFS stationery and signed by Wist as President of MFS and Chaklos as Vice President. The first line of the letter stated that “[MFS] must protest the awarding of a no-bid contract to NFSTC for the training of Personnel in DNA analysis.” The letter also stated that MFS could provide superior training at a lower cost “with substantial savings to the State of Illinois” and includes attached documentation regarding available space for the training, a letter of credit from a bank, and a proposed training outline. The letter also suggested problems with NFSTC, specifically indicating that NFSTC did not have the requisite experience to handle the training. The letter did not have the effect its authors might have hoped. Rather than raising concerns about the no-bid No. 07-3444 5

contract, the letter raised concerns within ISP about Chaklos and Wist, and ISP launched an internal investiga- tion into their work with MFS. ISP suspended plaintiffs for thirty days for writing the letter on the ground that the letter violated ISP’s policy regarding secondary em- ployment. Michael Sheppo, along with Stevens, Metzger, and Vondrak, made this decision. Despite the protest, ISP proceeded with its plan to send the scientists to NFSTC. As it turns out, however, Chaklos and Wist were not the only ISP employees with dual interests in this matter. Michael Sheppo, who was the Commander of ISP’s Foren- sic Sciences Command, was also President of the NFSTC’s Board of Directors. His involvement was known to several employees at ISP (including Stevens), and some ISP employees had raised concerns about a potential conflict of interest when NFSTC was being considered for the training services contract. An initial investigation led nowhere (based largely on the misleading representa- tions of Sheppo and Stevens), but after the Office of Executive Inspector General (OEIG) received a formal complaint regarding NFTSC, it opened a full investigation into Sheppo’s involvement with NFSTC. It determined that Sheppo’s position with NFSTC created a conflict of interest. It also concluded that Sheppo’s role in plain- tiffs’ discipline was unethical and recommended that their suspensions be rescinded. Maintaining that their protest letter was protected speech, Chaklos and Wist filed a First Amendment retalia- tion suit under 42 U.S.C. § 1983. The district court deter- 6 No. 07-3444

mined that although the letter was protected speech, defendants were entitled to qualified immunity. Chaklos and Wist now appeal from the entry of summary judg- ment against them.

II. ANALYSIS We review the district court’s grant of summary judg- ment de novo. Petts v. Rockledge Furniture LLC, 534 F.3d 715, 720 (7th Cir. 2008).

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