Katzberg v. Regents of University of California

58 P.3d 339, 127 Cal. Rptr. 2d 482, 29 Cal. 4th 300, 19 I.E.R. Cas. (BNA) 545, 2002 Daily Journal DAR 13337, 2002 Cal. Daily Op. Serv. 11504, 2002 Cal. LEXIS 8099
CourtCalifornia Supreme Court
DecidedNovember 27, 2002
DocketS097445
StatusPublished
Cited by154 cases

This text of 58 P.3d 339 (Katzberg v. Regents of University of California) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Katzberg v. Regents of University of California, 58 P.3d 339, 127 Cal. Rptr. 2d 482, 29 Cal. 4th 300, 19 I.E.R. Cas. (BNA) 545, 2002 Daily Journal DAR 13337, 2002 Cal. Daily Op. Serv. 11504, 2002 Cal. LEXIS 8099 (Cal. 2002).

Opinions

Opinion

GEORGE, C. J.

We granted review in this matter and in the companion case, Degrassi v. Cook (2002) 29 Cal.4th 333 [127 Cal.Rptr.2d 508, 58 P.3d 360] (Degrassi), to consider whether an individual may bring an action for money damages on the basis of an alleged violation of a provision of the California Constitution, in the absence of a statutory provision or an established common law tort authorizing such a damage remedy for the constitutional violation. In the present case, plaintiff seeks, among other relief, monetary damages based upon defendant’s alleged violation of his due process “liberty” interest under article I, section 7, subdivision (a), of the California Constitution (hereafter article I, section 7(a)), by failing to provide him with a timely “name-clearing” hearing after his removal as department chairman at a university medical center. We conclude that an action for damages is not available.1

[304]*304I.

In 1991, plaintiff Richard W. Katzberg was appointed professor of medicine at the University of California at Davis Medical School and Chairperson of the Department of Radiology at the University of California Davis Medical Center. In July 1995, the university commenced an investigation concerning alleged mishandling of funds by the department of radiology. In February 1996, the university issued a press release regarding the investigation, and the Sacramento District Attorney’s Office thereafter announced that it would initiate a criminal investigation.

The investigation concerned approximately $250,000 that allegedly had been placed inappropriately in radiology accounts to be used for payment of department expenses. Most of this money came from rebates provided by medical equipment vendors. There never has been any allegation that plaintiff made any personal use of the challenged funds. Instead, the alleged improprieties related to placement of funds in the department’s account rather than in the medical center’s general funds.

In March 1996, the university announced that “appropriate personnel actions” had been initiated, but did not name any specific employee. Later that month, plaintiff was removed as chairperson of the department. He remained a tenured professor at the medical school and a staff physician at the medical center.

In February 1997, plaintiff sued various defendants on numerous grounds, and the resulting litigation has moved back and forth between state and federal courts.2 For present purposes, it is sufficient to note that plaintiffs third amended complaint—the one here at issue—named as defendants the Regents of the University of California (the Regents) and the Chancellor of the University of California at Davis, Larry N. Vanderhoef (hereafter collectively, defendants). The complaint alleged that by making stigmatizing statements about plaintiff in the course of removing him from his position as department chairperson, defendants violated the liberty interest of plaintiff protected under article I, section 7(a).

Although the department chairmanship was an at-will position, terminable without cause at the discretion of the chancellor of the Davis [305]*305campus (and hence plaintiff concedes that he had no due process property right to that position), it is well established that “an at-will [public] employee’s liberty interests are deprived when his discharge is accompanied by charges ‘that might seriously damage his standing and associations in his community’ or ‘impose[] on him a stigma or other disability that foreclose^] his freedom to take advantage of other employment opportunities.’ ” (Holmes v. Hallinan (1998) 68 Cal.App.4th 1523, 1530 [81 Cal.Rptr.2d 174], quoting Board of Regents v. Roth (1972) 408 U.S. 564, 573 [92 S.Ct. 2701, 2709-2710, 33 L.Ed.2d 548] (Roth)) When such a liberty deprivation occurs, a party has a right to a “name-clearing hearing.” (Codd v. Velger (1977) 429 U.S. 624, 627 [97 S.Ct. 882, 883-884, 51 L.Ed.2d 92].)

The third amended complaint alleged that plaintiff had not been provided with such a hearing at which he could defend himself, either prior to, or since, his removal. The complaint also sought a variety of relief, including an injunction, damages, attorney fees, and costs.

The trial court granted defendants’ motion to strike the prayer for relief. Later, in October 1999—three and a half years after plaintiff’s removal— defendants offered plaintiff a name-clearing hearing. For the next few months, the parties negotiated unsuccessfully concerning the parameters of such a hearing. In February 2000, defendants revised and renewed the proposal for a name-clearing hearing, but plaintiff rejected that offer, and no such hearing has been held.

Defendants thereafter moved for summary judgment on plaintiff’s due-process-liberty-interest claim on the grounds that (i) a liberty interest violation could not be proved, because the “alleged false statements are not stigmatizing as a matter of law,” and (ii) even if a liberty interest violation could be proved, the remedy would be limited to a name-clearing hearing, which plaintiff previously had rejected. Plaintiff opposed the motion on the ground, among others, that defendants had not offered him an adequate name-clearing hearing.

In April 2000, following a court hearing, the trial judge granted summary judgment to defendants, finding they had offered plaintiff an adequate name-clearing hearing, and that such a postremoval hearing was the sole remedy for the asserted liberty interest violation under the due process clause of article I, section 7(a). The court found that money damages were not available under California law to remedy “infringement of liberty interests,” or to remedy any alleged undue delay in the offer of a name-clearing hearing. The trial court confined its ruling on the summary judgment motion to the damages issue, and did not rule on defendants’ claim that plaintiff’s allegations were insufficient to demonstrate a liberty-interest violation.

[306]*306Upon review, the Court of Appeal began by noting that the state constitutional due process liberty interest alleged to have been violated in this case has been recognized under the due process clause of the Fourteenth Amendment of the federal Constitution in Roth, supra, 408 U.S. 564, 573 [92 S.Ct. 2701, 2707]. In that decision the high court observed that “ ‘[w]here a person’s good name, reputation, honor, or integrity is at stake because of what the government is doing to him, notice and an opportunity to be heard are essential.’ [Citations.] In such a case, due process would accord an opportunity to refute the charge before University officials.” (Ibid,)3 The Court of Appeal stated that it would assume for purposes of analysis that a similar liberty interest exists under article I, section 7(a) of the state Constitution, and it further assumed that the facts alleged in this case state a violation of plaintiffs due process liberty interest under this provision of the state Constitution.

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58 P.3d 339, 127 Cal. Rptr. 2d 482, 29 Cal. 4th 300, 19 I.E.R. Cas. (BNA) 545, 2002 Daily Journal DAR 13337, 2002 Cal. Daily Op. Serv. 11504, 2002 Cal. LEXIS 8099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/katzberg-v-regents-of-university-of-california-cal-2002.