City of Fairbanks v. Rice

20 P.3d 1097
CourtAlaska Supreme Court
DecidedOctober 13, 2000
DocketS-8469, S-8470, S-8479/8489
StatusPublished
Cited by29 cases

This text of 20 P.3d 1097 (City of Fairbanks v. Rice) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Fairbanks v. Rice, 20 P.3d 1097 (Ala. 2000).

Opinion

OPINION

EASTAUGH, Justice.

I, INTRODUCTION

Jimmy Rice and Lee DeSpain sued the City of Fairbanks (their former employer) and two city employees alleging violations of the Alaska Whistleblower Act resulting in their constructive discharge, and violations of their civil rights under 42 U.S.C. § 1988 of the federal Civil Rights Act. A jury returned verdicts for Rice and DeSpain,. The city and its employees appeal; Rice and DeSpain cross-appeal. We affirm because sufficient evidence supports the verdicts, because the city was not entitled to qualified immunity on *1101 the Whistleblower Act claim, and because the superior court did not err in rejecting the defendants' claim that Rice and DeSpain failed to exhaust their administrative remedies. We find no prejudicial error in the parties' other appeal and cross-appeal issues.

II, FACTS AND PROCEEDINGS

Jimmy Rice and Lee DeSpain were firefighters employed by the City of Fairbanks, Department of Public Safety (fire department). Both were members of the Fairbanks Fire Fighters Association, affiliated with the International Association of Fire Fighters.

In 1994 DeSpain and Rice reported that Michael Pulice, the city's Director of Public Safety and their indirect supervisor, was overstating his "comp" time. The Fairbanks City Council discussed the report on February 18, 1995. The next day Pulice telephoned Fairbanks attorney Brett Wood, knowing that Wood had represented Rice and DeSpain. According to Wood, Pulice threatened during the telephone conversation to retaliate against DeSpain and Rice for their report and other activities unrelated to their employment, and insinuated that he might "set them up" or entrap them. Wood informed City Manager Patrick Cole of the call and asked that Rice and DeSpain be placed on administrative leave until the issue was resolved. Cole declined to do so.

Three other circumstances contributed to animosity between Rice and DeSpain and the city: the city and Pulice allegedly tried to weaken or discredit the fire fighters' union, Rice and DeSpain engaged in surveillance of Pulice, and Rice told then City Manager Mark Boyer that Pulice had had an extramarital affair with Pulice's administrative assistant.

Rejecting the city's recommendation to submit the issue to dispute resolution, DeS-pain and Rice resigned, claiming that they were concerned about retaliation and "intolerable" working conditions. When they resigned, DeSpain and Rice had each been employed for at least twenty years with the fire department.

Rice and DeSpain sued the city, former City Manager Cole, and Public Safety Director Pulice. They claimed in their various complaints that the city, Cole, and Pulice had violated the Alaska Whistleblower Act, 1 resulting in the plaintiffs' constructive discharge and the loss of a promotion for Rice, and that Cole and Pulice had violated the plaintiffs' federal constitutional rights of free speech. 2 DeSpain also sued Pulice for defamation, alleging that Pulice had told attorney Wood that DeSpain was involved in an extramarital affair.

The case was tried before a jury. The superior court effectively dismissed the Whistleblower Act claims against Pulice and Cole individually when it allowed the jury to consider those claims only against the city. The court instructed the jury to consider the § 1983 claims against Pulice and Cole.

The jury found for DeSpain on his civil rights claims against Cole and Pulice, on his Whistleblower Act claim against the city, and on his defamation claim against Pulice. It awarded DeSpain damages of $142,901 on his § 1983 and Whistleblower Act claims and damages of $8,050 on his defamation claim. The jury. found for Rice on his civil rights claims against Cole and Pulice, and on his Whistleblower Act claim against the city. It awarded Rice damages totaling $353,001. 3

The superior court granted Cole's motion for a judgment notwithstanding the verdict (JNOV), concluding that Cole was entitled to qualified immunity on the § 1983 claims-the only claims the jury considered against him. The superior court concluded, "[alt worst, Cole failed to do as much as he could have to investigate the allegations. However, reasonable people with a clear understanding of the law could not disagree that Cole could have reasonably believed his conduct was lawful."

As a prevailing party, Cole moved for attorney's fees; the superior court awarded *1102 him $5,139. The court awarded Rice attorney's fees of $48,040.94 against the city and $346,739.25 against Pulice. It awarded DeS-pain attorney's fees of $168,114.12 against Pulice on DeSpain's successful § 1988 claim.

The court entered judgments for Rice and DeSpain against the city and Pulice, and for Cole against Rice and DeSpain. The city and Pulice (and Cole to the extent issues affect him) appeal from the denials of their motions for summary judgment, directed verdict and JNOV on the constructive discharge issue; denial of qualified immunity to the city on the Whistleblower Act claims; denial of summary judgment against Rice and DeS-pain because they did not exhaust their administrative remedies; and denial of defendants' new trial motion. They claim errors in the judgments; in awarding attorney's fees to Rice and DeSpain on their civil rights claims; in denying summary judgment and remittitur on the defamation claim; and in calculating Cole's award of attorney's fees. The Fairbanks Office of the City Attorney represents the city, Cole, and Pulice on appeal, and unless context requires otherwise, we refer collectively to them as "the city."

DeSpain and Rice appeal the JNOV entered against them in favor of Cole on the civil rights claim; they also appeal being precluded from asserting a Whistleblower Act claim against Cole individually. Rice appeals being precluded from asserting a Whistleblower Act claim against Pulice individually; he also appeals from evidentiary rulings and raises issues regarding mitigation of damages. DeSpain also challenges trial time limits the superior court imposed and the denial of discovery master fees.

III, DISCUSSION

A. The City's Appeal: S-8469

1. The constructive discharge issue

Rice and DeSpain asserted in their Whis-tleblower Act and § 1988 claims that they had been constructively discharged. The jury found that the fire department constructively discharged Rice and DeSpain. The city argues that Rice and DeSpain's decisions to resign were unreasonable as a matter of law. It asserts that the evidence does not support the constructive discharge finding and that the issue should have been dismissed on summary judgment, or by entry of a directed verdiet or JNOV. 4

We review denial of a motion for summary judgment de novo. 5

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Bluebook (online)
20 P.3d 1097, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-fairbanks-v-rice-alaska-2000.