Kennedy v. City of St. Louis

749 S.W.2d 427, 1988 Mo. App. LEXIS 555, 1988 WL 35335
CourtMissouri Court of Appeals
DecidedApril 19, 1988
DocketNo. 53486
StatusPublished
Cited by9 cases

This text of 749 S.W.2d 427 (Kennedy v. City of St. Louis) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kennedy v. City of St. Louis, 749 S.W.2d 427, 1988 Mo. App. LEXIS 555, 1988 WL 35335 (Mo. Ct. App. 1988).

Opinion

SIMEONE, Senior Judge.

I.

This is an appeal by four ophthalmologists, Drs. Wagih A. Satar, Malaz Safi, Nisaruddin Kahn and Shamlal Tekwani, from a judgment entered by the Circuit Court of the City of St. Louis on June 3, 1987 denying their claims for breach of contract of their positions as “physicians-in-training” or “residents” at former City Hospital No. 1 (Max C. Starkloff Memorial Hospital).1

The key issue in this proceeding is whether the appellants, four physicians, [429]*429who, having been offered positions as physicians-in-training (residencies) and who were assured by City officials that if their work was satisfactory they would advance and complete the program, and who were a special class of civil service employees in the classified civil service, have a constitutionally protected property interest to continued employment so that they are entitled to damages against the City, when the City closed the medical program due to budgetary restrictions, financial exigency and other reasons. We hold that these “limited” or “special temporary” public civil service employees do not have such a constitutionally protected property interest in their employment and thus affirm the judgment of the trial court.

II.

The facts in this case consist of testimony, records and numerous exhibits. The essential facts for the resolution of this proceeding are the following. Drs. Satar, Kahn, Safi and Tekwani are physicians whose origins are other than the United States. Dr. Satar is an Egyptian, having attended medical school in Cairo. Dr. Kahn is from India, a United States citizen, and received his medical degree in India. He served a “surgical residency” in Cleveland, Ohio. Dr. Safi is from Syria, a graduate of Damascus University, and served his residency in Cleveland. Dr. Tekwani is a native of Pakistan; he attended medical school there and emigrated to St. Louis. Each of them, after reviewing a “green book” published by the American Medical Association which listed residency programs applied for a residency in the St. Louis City Hospitals. They were interviewed by the then Director of the Residency Program, Dr. Phillip Venable, and offered a position as “physician in training” in ophthalmology Unit I of the City Hospital. There were two units. Dr. Venable directed and supervised Unit I and Dr. Gerald Fivian supervised Unit II. When initially interviewed, Dr. Venable told the doctors that “it was a four-year program.” They were told “we had a four-year program starting out with PG [Post-graduate] I, II, III, and IV, which was authorized by the American Board of Ophthalmology.” They were also told that "if their performance level was satisfactory that they would be appointed to a new year and the next level in the ophthalmology program.” Each of the appellants accepted the position. Each of the physicians incurred moving expenses, discontinued their search for a residency at other hospitals and incurred other detriments. Dr. Satar began his residency in 1980; Drs. Safi and Kahn in 1981; and Dr. Tekwani in 1982. Each physician signed a document entitled “contract” for each year of service. These contract forms had been used for some thirty years. The contract recited that the physician had been “appointed” to the position of “resident physician” at a certain PG level, that it was for one year beginning July 1, of the particular year, and that “under the authority of the Ordinance of the City of St. Louis,” the physician “accepted” the appointment and would receive a definite remuneration biweekly. The “contract” was signed by Dr. Ralph Kinsella, Chief of Staff, St. Louis City Hospital, and each of the ophthalmologists — appellants. In the early part of each year, Dr. Kinsella would forward to each appellant a “housestaff contract” requesting the appellants to sign and return to his office. The “contracts” were signed and returned, and a subsequent letter from Dr. Kinsella acknowledging receipt was sent to each of the physicians. Since the inception of their appointments, each of the physicians performed satisfactorily, advanced to the next level, received increases, and each year signed and accepted their “contract.”

In February, 1983, each of the appellants were again forwarded a “contract” for the year 1983-1984. Each signed it and returned it to Dr. Kinsella. The personnel records of the Department of Personnel— the report of appointment — reflected that the physicians were appointed to a “limited term” for each year of their appointment. The records were signed by Ms. Alvaria Jaquess, Personnel Manager. She signed as the “appointing authority.” The contracts were “approved” by Thomas Sehr, the Director of Health and Hospitals. [430]*430None of the contracts was signed by the comptroller of the City.

In June, 1983, each physician received a letter from Mr. Sehr, the Director of Health and Hospitals “that the 1983-1984 budget of the Division of Health and Hospitals” did not provide for the “continuation of the Unit I Ophthalmology Housestaff after June 30, 1983.” The letter pointed out that this action was part of the severe reductions in the City Health and Hospital budget and indicated that the Department would “make every effort to provide you training opportunity for the year July 1, 1983 through June 30, 1984, within the resources available in our budget.” At the evidentiary hearing, Mr. Sehr testified that when “we were constructing the budget” for the fiscal year starting May 1, 1983, “we were faced with a number of facts that had to be dealt with.” The decision to “eliminate unit one was reached on a number of bases”: (1) the “primary factor” was that the American Board of Ophthalmology “discredited” 2 the service, although “that decision was in the appeal process”; (2) the “second factor” was that the chief of Unit 1. Dr. Phillip Venable “had either announced that he was retiring or had reached the City’s mandatory retirement age ...”;3 (3) the severe reductions in the budget;4 and (4) there was an “accurate perception” that “we had an excessive number of physicians employed at the hospital.”

As a result of the termination of the Unit I program, the personnel records of each of the physicians showed that as of June 30, 1983 they were at the “end of [their] contract[s] effective 6-30-83.” This personnel record was again signed by Alvaria Ja-quess. In August, 1983, each physician was notified that they had been removed from the payroll with the notation, “End of Temp. Apt.”

Despite the ending of their contracts, each of the appellants continued in the ophthalmology Unit I program without pay serving the hospital until they each completed their residency. Dr. Satar completed his residency June 30, 1984; Drs. Safi and Kahn completed their residencies in June, 1985 and Dr. Tekwani’s last year of residency was waived because of the closing of the hospital. But after June 30, 1983, they were not retained on the payroll, although other physicians in Unit II, some with less seniority, were given pay raises and retained. Each appellant did, however, “moonlight,” or worked in other hospitals including the emergency room while they finished their residencies, and each earned compensation.

The ophthalmologists timely appealed their removal from the payroll to the Civil Service Commission, but on January 12, 1984 the Commission informed their attorney that the

Civil Service Rules provide that only employees who have attained permanent civil service status may appeal actions to the Commission.

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Cite This Page — Counsel Stack

Bluebook (online)
749 S.W.2d 427, 1988 Mo. App. LEXIS 555, 1988 WL 35335, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kennedy-v-city-of-st-louis-moctapp-1988.