Duggan v. Town of Ocean City

516 F. Supp. 1081, 1981 U.S. Dist. LEXIS 12999
CourtDistrict Court, D. Maryland
DecidedJune 16, 1981
DocketCiv. A. J-81-30
StatusPublished
Cited by7 cases

This text of 516 F. Supp. 1081 (Duggan v. Town of Ocean City) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duggan v. Town of Ocean City, 516 F. Supp. 1081, 1981 U.S. Dist. LEXIS 12999 (D. Md. 1981).

Opinion

MEMORANDUM AND ORDER

SHIRLEY B. JONES, District Judge.

This action was filed under 42 U.S.C. § 1983 and the Fourteenth Amendment. Plaintiff alleges that he was deprived of liberty without due process in that he was terminated from his employment for reasons which were damaging to his reputation without the opportunity for a hearing. More specifically, plaintiff alleges that until May 9, 1978, he held the position of Chief of Police of Ocean City, Maryland. Plaintiff claims that he was forced to resign his position by defendants on the basis of accusations that he had ties with organized crime, and that he was not trusted by other law enforcement agencies which consequently declined to provide intelligence data to Ocean City. Plaintiff refused to sign a prepared letter of resignation but, rather, submitted his own letter of resignation which did not recite any of the accusations made against him. It is alleged that this letter was submitted to defendants with the understanding that the reasons given in it, and not the accusations made against him, would constitute the official explanation of why he was resigning.

It is alleged that on August 28, 1978 and September 3, 1978, defendant Kelley released to a local radio station statements which contained accusations similar to those made by defendants at the time of plaintiff’s termination. It is this release of information which plaintiff asserts imposed a stigma upon him sufficient to deprive him of a liberty interest. It is plaintiff’s position that this release of information entitled him to a hearing in order to contest these allegations.

Defendants have moved to dismiss on two grounds. First, it is argued that the complaint simply fails to state a claim under 42 U.S.C. § 1983 or the Fourteenth Amend *1083 ment. Second, it is argued that plaintiff’s claims are barred by the statute of limitations.

Dealing with defendants’ arguments in inverse order, the Court finds the arguments going to the statute of limitations to be without merit. It is defendants’ position that the appropriate statute of limitations in this case is one year. This argument is premised on the fact that Maryland has a one year statute of limitations for defamation and because this action is based upon a defamatory statement, the one year limitation should apply.

Section 1983 contains no statute of limitations and, consequently, it has been held that the most analogous state statute of limitations would apply. In Maryland that has been held to be three years. Davidson v. Koerber, 454 F.Supp. 1256 (D.Md.1978); McIver v. Russell, 264 F.Supp. 22 (D.Md. 1967). The Court finds no justification for holding that the applicable statute of limitations varies with the facts upon which an action under § 1983 is premised and the Court declines to do so.

Defendants’ second argument, however, presents a far more difficult issue. Defendants contend that because the statements, which ' plaintiff claims stigmatized him, were made almost four months after his termination, that plaintiff cannot make a claim under § 1983. Defendants assert that plaintiff has merely made a claim for defamation.

It is well established that a public employee who is terminated for reasons which stigmatize him and tend to foreclose future employment opportunities is being deprived of a liberty interest and, hence, must be accorded due process. Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972). It is also clear that the stigmatizing allegations must be false, Codd v. Velger, 429 U.S. 624, 97 S.Ct. 882, 51 L.Ed.2d 92 (1977) and that these allegations must be made public. Sims v. Fox, 505 F.2d 857 (5th Cir. 1974).

It does not appear to be seriously contested that the allegations which were made against plaintiff were stigmatizing, nor does it appear to be contested that those allegations were publicized. The issue which is presented by this case is whether the publicizing of these facts some four months after the employee’s termination requires the according of due process.

The real foundation for defendants’ argument lies in the Supreme Court’s original ruling in Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972). The Court elaborated upon its ruling in Paul v. Davis, 424 U.S. 693, 96 S.Ct. 1155, 47 L.Ed.2d 405 (1976), wherein the Court stated:

Thus it was not thought sufficient to establish a claim under § 1983 and the Fourteenth Amendment that there simply be defamation by a state official; the defamation had to occur in the course of the termination of employment. Certainly there is no suggestion in Roth to indicate that a hearing would be required each time the State in its capacity as employer might be considered responsible for a statement defaming an employee who continues to be an employee.

Id. at 710, 96 S.Ct. at 1165 (emphasis added). Defendants argue that because the termination did not occur during the course of termination of employment, no liberty interest was implicated.

There is a paucity of precedent on this issue. The only indication the Supreme Court has given on this issue was in Bishop v. Wood, 426 U.S. 341, 96 S.Ct. 2074, 48 L.Ed.2d 684 (1976). In that case, a policeman had been terminated without the benefit of a hearing. The reasons for his discharge were disclosed to him in a private meeting and were not made public until they were given in response to discovery requests after suit had already been filed. The Court held that because the revelation of the reasons for plaintiff’s termination “was made in the course of a judicial proceeding which did not commence until after petitioner had suffered the injury for which he seeks redress, it surely cannot provide retroactive support for his claim.” Id. at 348, 96 S.Ct. at 2079. This statement is *1084 somewhat ambiguous as it can be interpreted as meaning that the statements could not serve as a basis for plaintiff’s claim because it had occurred after his termination, or it can be interpreted as meaning that the statements cannot serve as a basis for a claim because they were made in the course of a judicial proceeding.

The Supreme Court made reference to the language from Paul in Owen v. City of Independence, 445 U.S. 622, 100 S.Ct. 1398, 63 L.Ed.2d 673 (1980). In that case, the Chief of Police had been terminated under allegations of improper conduct.

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Bluebook (online)
516 F. Supp. 1081, 1981 U.S. Dist. LEXIS 12999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duggan-v-town-of-ocean-city-mdd-1981.