Hallberg v. S.D. Board of Regents

2019 S.D. 67
CourtSouth Dakota Supreme Court
DecidedDecember 31, 2019
Docket28683
StatusPublished
Cited by2 cases

This text of 2019 S.D. 67 (Hallberg v. S.D. Board of Regents) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hallberg v. S.D. Board of Regents, 2019 S.D. 67 (S.D. 2019).

Opinion

#28683-aff in pt & rev in pt-JMK 2019 S.D. 67

IN THE SUPREME COURT OF THE STATE OF SOUTH DAKOTA

****

SARA HALLBERG, Plaintiff and Appellant,

v.

SOUTH DAKOTA BOARD OF REGENTS, JEREMY REED, and FRANCESCA LEINWALL, Individually, Defendants and Appellees.

APPEAL FROM THE CIRCUIT COURT OF THE FIFTH JUDICIAL CIRCUIT BROWN COUNTY, SOUTH DAKOTA

THE HONORABLE SCOTT P. MYREN Judge

ALEX M. HAGEN MICHELLE I. STRATTON of Cadwell, Sanford, Deibert & Garry, LLP Sioux Falls, South Dakota Attorneys for plaintiff and appellant.

REED RASMUSSEN of Siegel, Barnett & Schutz, LLP Aberdeen, South Dakota Attorneys for defendants and appellees.

ARGUED ON APRIL 30, 2019 OPINION FILED 12/31/19 #28683

KERN, Justice

[¶1.] Sara Hallberg filed a complaint in circuit court against the South

Dakota Board of Regents and two of its employees, alleging retaliatory discharge.

The circuit court dismissed the case, holding that the court lacked jurisdiction and

that the Board and its employees were shielded from the suit by sovereign

immunity. Hallberg appeals. We affirm in part and reverse in part.

Facts and Procedural History

[¶2.] We relate the following facts as alleged in Hallberg’s complaint. The

Student Affairs Department at Northern State University (NSU) hired Hallberg as

its Director of the Counseling Center (Center). Her employment term ran from

September 25, 2017 to June 21, 2018, with the possibility of an annual

reappointment. Hallberg’s supervisors were Francesca Leinwall, the associate vice

president of student affairs, and Jeremy Reed, the vice president of enrollment

management and student affairs.

[¶3.] Shortly after Hallberg began working at NSU, she noticed unlicensed

student employees counseling patients and signing therapy notes which, in her

view, violated the ethical standards of the American Counseling Association.

Although she communicated her concerns about this practice to her supervisors and

discussed it with NSU’s legal counsel, both informed her that the student employees

were not required to be licensed to perform their employment duties.

[¶4.] Because she still believed the behavior was improper, Hallberg

contacted other Board of Regents institutions about their protocols. She asserted

that each informed her that it did not permit counselors to practice without a

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license. She also contacted the South Dakota Counselors and Marriage and Family

Therapist Examiners Licensing Board. The Board told her that practicing without

a license is prohibited by law.

[¶5.] Additionally, Hallberg discovered that staff members, including

student employees, had access to the Center’s Titanium program, a system used to

store patient records and counseling notes. She likewise observed that student

employees were the primary point of contact for students calling the Center to

schedule counseling services. This practice allowed student employees access to

their peers’s student identification numbers and other sensitive information.

Hallberg began restricting employee access to confidential information by assigning

the primary phone line to Jobi Gramlow, a senior secretary. Gramlow did not agree

with this staffing decision. Hallberg also challenged Gramlow’s attempt to hire a

student who was also a client of the Center.

[¶6.] At a full staff meeting of the student affairs office in December 2017,

Hallberg presented her concerns regarding the Center’s possible violation of the

American Counseling Association’s ethical standards. She discussed the option of

installing a firewall in the Titanium system to restrict access to patient records.

She also explained her decision to make Gramlow the primary phone contact to

remedy the confidentiality issues with the front desk protocol. The following day,

Hallberg received a termination letter from Leinwall for disrupting the “efficiency

or morale of the [D]epartment” in violation of the Board of Regents’s policy.

[¶7.] Hallberg filed suit in circuit court, naming The Board of Regents, along

with Reed and Leinwell individually, as defendants. Although the provisions of

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SDCL 3-16-9 appear designed to protect state employee “whistleblowers,” Hallberg,

in her complaint, claimed whistleblower status generally without citing the statute

and alleged that her termination constituted unlawful retaliation for reporting the

Center’s unethical practices. She sought compensatory damages, back and front

pay, damages for emotional distress and mental anguish, and punitive damages.

Hallberg did not file a grievance before the Civil Service Commission (Commission)

prior to filing her action in circuit court.

[¶8.] The Board of Regents, Reed, and Leinwall moved to dismiss Hallberg’s

complaint for lack of jurisdiction and failure to state a claim under SDCL 15-6-

12(b)(1) and (5). After a hearing on the motion, the circuit court dismissed

Hallberg’s complaint. In its order, it stated, “[T]he [c]ourt has determined it has no

jurisdiction because [d]efendant South Dakota Board of Regents is entitled to

sovereign immunity as the State of South Dakota has only waived sovereign

immunity with respect to claims under SDCL 3-16-9 to the extent that it has

created an administrative remedy.” The court also found Leinwall and Reed

protected by the doctrine of sovereign immunity because their decision to fire

Hallberg was a discretionary act done within the scope of their employment.

[¶9.] Hallberg appeals, raising two issues that we restate as follows:

1. Whether the circuit court erred by dismissing Hallberg’s claims against the Board of Regents.

2. Whether the circuit court erred by dismissing the claims against Leinwall and Reed.

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Analysis and Decision

[¶10.] We review the circuit court’s decision granting a motion to dismiss de

novo with no deference to the circuit court’s determination. N. Am. Truck &

Trailer, Inc. v. M.C.I. Commc’n. Servs., 2008 S.D. 45, ¶ 6, 751 N.W.2d 710, 712. “A

motion to dismiss under SDCL 15-6-12(b) tests the legal sufficiency of the pleading,

not the facts which support it.” Id. For purposes of this appeal, we “treat as true all

facts properly pled in the complaint and resolve all doubts in favor of the pleader.”

Id.

1. Whether the circuit court erred by dismissing Hallberg’s claims against the Board of Regents.

[¶11.] Determining whether the circuit court erred requires that we address

the extent to which the Legislature has waived sovereign immunity against the

Board. When sued in their official capacities, the provisions of Article III, § 27 of

the South Dakota Constitution and the common law provide that the State, its

entities, and its employees are immune from suit. See Pennington Cty. v. State ex

rel. Unified Judicial Sys., 2002 S.D. 31, ¶ 14, 641 N.W.2d 127, 131; Sisney v. Reisch,

2008 S.D. 72, ¶ 12, 754 N.W.2d 813, 818 (“[S]uits against officers . . . in their

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