Gresham v. Town of Depew, Oklahoma

Court of Appeals for the Tenth Circuit·Decided March 10, 2025·No. 24-5021·Unpublished

Opinion

FILED

United States Court of Appeals Tenth Circuit

UNITED STATES COURT OF APPEALS March 10, 2025

FOR THE TENTH CIRCUIT

_________________________________ Christopher M. Wolpert Clerk of Court

KEVIN GRESHAM,

Plaintiff - Appellant,

v. No. 24-5021 (D.C. No. 4:20-CV-00306-TDD-SH)

TOWN OF DEPEW, OKLAHOMA, a (N.D. Okla.) municipality and political subdivision of the State of Oklahoma,

Defendant - Appellee.

ORDER AND JUDGMENT *

Before MATHESON, McHUGH, and ROSSMAN, Circuit Judges.

After Appellant Kevin Gresham was terminated from his position as Chief of Police, he sued Appellee Town of Depew in federal district court, claiming breach of contract and a violation of his Due Process rights under the Fourteenth Amendment. The district court granted summary judgment to the Town, and Mr. Gresham now appeals. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

* This order and judgment is not binding precedent, except under the

doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1.

I1

A

The Town is an Oklahoma statutory town under 11 Okla. Stat. §§ 12-

101–14. A five-member Board of Trustees governs the Town. Id. §§ 12-102, 12-106. The Town also has a mayor. Section 12-105 outlines the mayor’s powers. The Town has not expanded the mayor’s powers by ordinance or otherwise.

At a board meeting on July 1, 2019, the Board voted to hire Mr.

Gresham as the Chief of Police. The Board agreed to pay Mr. Gresham “at the rate discussed in his interview”—$42,000 per year. The Board also agreed to send Mr. Gresham “to chief’s school.” App. I at 137. It appears the Board did not provide Mr. Gresham a written contract.

Mr. Gresham insisted on having a written employment contract, so he drafted one (the Employment Contract). Consistent with the oral agreement on July 1, the Employment Contract included a salary of $42,000 per year and stated Mr. Gresham would attend “Chief School.” App. I at 219–20. The

1 The facts recited here derive mostly from the statements of undisputed facts in the parties’ summary judgment briefing. We also recite the facts in the light most favorable to Mr. Gresham, the non-movant. See Deherrera v. Decker Truck Line, Inc., 820 F.3d 1147, 1151 n.1 (10th Cir. 2016) (“In reciting the facts of this case, we view the evidence in the light most favorable to the non-moving party, as is appropriate when reviewing a grant of summary judgment.” (quoting Weigel v. Broad, 544 F.3d 1143, 1147 (10th Cir. 2008)).

Employment Contract also contained additional terms not discussed on July 1. It specified a term of two years, described Mr. Gresham’s “job duties and responsibilities,” App. I at 219, provided for paid time off following a “probationary period,” App. I at 220, promised expense reimbursement, and set out the terms under which the Town could terminate Mr. Gresham. The terms of termination included the following buy-out provision:

Should the Employer decide to terminate their working relationship and/or his Employment Contract, for reasons not pertaining to Employee’s gross misconduct, the party shall pay the Employee half of the remaining salary of his contract.

App. I at 221.

On July 23, 2019, Mr. Gresham presented the Employment Contract to the Town’s mayor, Dionna Marker, and they both signed it. According to Mr. Gresham, when Mayor Marker signed the Employment Contract, she told him “the Town” had approved it. App. II at 386, 338. It is undisputed the Board never voted to approve the Employment Contract. But, at some point in the three months between July 23 and October 21, the Board became aware of the Employment Contract.

Mr. Gresham started work as Chief of Police on August 1, 2019. On September 11, 2019, Mr. Gresham experienced a seizure. The same day, Mr. Gresham met with Mayor Marker and Board Member Jason Hopkins to discuss how to proceed given his health condition. According to Mayor

Marker’s deposition testimony, the Employment Contract and the buy-out provision came up during that conversation.

Days later, on September 17, Mr. Gresham met with the Board to discuss a doctor’s order that he could not drive for six months or use dangerous equipment. The Board then proposed Mr. Gresham accept “paid restricted duties,” primarily including desk work. App. I at 138. The Board also asked Mr. Gresham for more medical documentation. After the September 17 meeting, Board Member Hopkins told Mr. Gresham that the Board “was considering ways to void [his] contract and terminate [his] employment.” App. II at 340.

On October 21, the Board held a special meeting to discuss Mr.

Gresham’s job performance. Mr. Gresham attended the meeting. Mr. Gresham also was invited to attend the Board’s private “executive session,” but he declined because he was not allowed to bring his lawyer. App. I at 236; see 25 Okla. Stat. § 307(B)(1) (discussing “executive sessions”).

The Board then voted four to one to terminate Mr. Gresham. Board Member Hopkins dissented. The Board paid Mr. Gresham his salary until his termination, but it took no action under the buy-out provision in the Employment Contract.

B

In June 2020, Mr. Gresham sued the Town in the United States District Court for the Northern District of Oklahoma. 2 He claimed the Town breached the Employment Contract by refusing to comply with the buy-out provision after it terminated him. Mr. Gresham also brought a Due Process claim under federal law. 3 He claimed the Employment Contract created a “property interest in his continued employment,” but he “was denied a meaningful opportunity to be heard regarding the termination of his employment, as required under the Fourteenth Amendment to the United States Constitution.” App. I at 17. The Town then moved—unsuccessfully— to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(6). It argued, among other things, Mr. Gresham failed to state a breach-of- contract claim because he was terminated during a probationary period.

The case proceeded to discovery, followed by cross-motions for summary judgment. As relevant here, the Town insisted it was entitled to summary judgment because the Employment Contract was invalid under Oklahoma law. According to the Town, “the Mayor lacked the authority to

2 Mr. Gresham also sued certain individual Board members. The district court dismissed the individual defendants, and that decision is not before us. The Town is the only remaining defendant.

3 It is because of Mr. Gresham’s federal claim that the district court possessed subject matter jurisdiction. See 28 U.S.C. § 1367(a).

contractually bind” it. App. I at 142. The Town argued this was dispositive for both Mr. Gresham’s breach-of-contract claim and his constitutional claim. Mr. Gresham insisted Mayor Marker “possessed apparent authority sufficient to bind” the Town, App. II at 397 (heading capitalization omitted), and further contended the “Town ratified the Employment Contract through the actions of its Board of Trustees,” App. II at 394 (heading capitalization omitted).

In a written order, the district court granted summary judgment to the Town on both of Mr. Gresham’s claims. The district court first concluded Mayor Marker lacked actual authority under Oklahoma law to contract on behalf of the Board. See App. III at 581–82 (noting 11 Okla. Stat. § 12-105 outlines the mayor’s narrow powers, which do not include executing contracts); App. III at 583–84 (emphasizing that an Oklahoma Attorney General opinion states “in the absence of an ordinance granting certain powers, duties and functions to the mayor of a town with a statutory town board of trustees, a mayor has no powers, duties and functions prescribed by law beyond those listed in Section 12-105” (quoting App. I at 204)).

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