Klein, Barbara v. Perry, Sidney

216 F.3d 571
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 8, 2000
Docket98-3158
StatusPublished
Cited by1 cases

This text of 216 F.3d 571 (Klein, Barbara v. Perry, Sidney) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Klein, Barbara v. Perry, Sidney, 216 F.3d 571 (7th Cir. 2000).

Opinions

ILANA DIAMOND ROVNER, Circuit Judge.

In 1996 Barbara Klein filed this suit under 42 U.S.C. § 1983, claiming that the defendants suspended her from work for 30 days and involuntarily transferred her from her position with the Human Resources Department of the Family and Social Services Administration (FSSA) to a position with the Division of Mental Health in retaliation for hpr exercise of her First Amendment right to freedom of speech. The defendants countered by arguing that Klein’s claim was precluded by a prior decision of the Indiana State Employees’ Appeals Commission (SEAC). The district court agreed and granted the defendants’ motion for summary judgment. Klein appeals.

As did the district court, we accord preclusive effect to the SEAC’s factual findings. Federal courts give preclusive effect to the findings of state administrative tribunals in subsequent actions under § 1983. See University of Tennessee v. Elliott, 478 U.S. 788, 799, 106 S.Ct. 3220, 92 L.Ed.2d 635 (1986) (“[W]hen a state agency ‘acting in a judicial capacity ... resolves disputed issues of fact properly before it which the parties have had an [573]*573adequate opportunity to litigate,’ federal courts must give the agency’s factfinding the same preclusive effect to which it would be entitled in the State’s courts.”) (citation omitted); Crot v. Byrne, 957 F.2d 394, 396 (7th Cir.1992). We believe the Indiana state courts would find that an issue of fact litigated and determined in an agency’s decision is preclusive between the parties in a subsequent action, even though a different claim is involved. See Fruehauf Corp. v. Review Bd. of the Indiana Employment Security Div., 148 Ind.App. 627, 269 N.E.2d 184, 189 (1971); see also Flowers v. Carson, 917 F.Supp. 614, 619 (S.D.Ind.1996); Kelly v. Municipal Ct. of Marion Co., 852 F.Supp. 724, 739 (S.D.Ind.1994), aff'd. 97 F.3d 902 (7th Cir.1996).

Accordingly, the following statement of facts summarizes the facts found by the SEAC. Klein was employed as a personnel officer in the Human Resources Section of the FSSA. On or about September 25, 1995, Klein received a telephone call from a caseworker at the Marion County Division of Family and Children (DFC) who alleged some problems in the Child Protective Services (CPS) division and expressed fear of retaliation and dismissal if she disclosed those problems. Klein and fellow officer Fred Schute, who had been hired only recently, met with and interviewed the DFC caseworker, as well as a former colleague of the caseworker who had been dismissed from her employment with DFC. Klein and Schute met several times that week and reviewed many documents that had been copied by the caseworkers from the CPS division.

Klein updated her supervisor Sidney Perry, the Director of Employee/Labor Relations for FSSA, on the investigation’s progress on a daily, almost hourly, basis. By Friday, September 29, 1995, Perry had determined that some expertise in CPS matters was needed to review the records brought in by the two complaining caseworkers. Perry gave Klein the names - of two investigators whom he asked to be assigned to the case and told her to call the Acting Director of Marion County DFC to set up a meeting that day with the two investigators to officially review the records, files, and documents. Upon examining staffing reports, Klein discovered that the two investigators whom Perry had designated to review the documents were themselves supervisors in the very same CPS division of Marion County DFC. Thus, Klein believed there was a conflict of interest in having those investigators review the documents that alleged wrongdoing by CPS supervisors. Klein testified that she was also concerned that Perry himself may have had a conflict of interest because he had previously advised Marion County DFC to dismiss one of the complaining caseworkers.

Klein had a doctor’s appointment scheduled for the afternoon of September 29, 1995, for which she had already been given permission to leave work. Prior to leaving for that appointment, Klein tried to meet with Perry or his supervisor, James Ladd, but learned that both were in meetings. She then asked Schute to help her carry her notes regarding the investigation and the CPS caseworkers’ documents to the Office of the General Counsel of FSSA, Rachel McGeever, for safekeeping. McGeever is the person designated to receive allegations of ethical problems. But McGeever was not in her office, nor was her Deputy General Counsel, Marianne Wilson. Klein then recognized another attorney walking in the hallway and asked him if he had a place where confidential documents could be safeguarded. The attorney, William Bogard, replied that he did and placed the documents in his office while he searched for the key to a locked file cabinet. Klein left for her doctor’s appointment, and Schute returned to his office in Labor/Employee Relations.

Upon returning to his office, Schute saw Perry and, recalling that Klein had been looking for him earlier, told Perry the location of the documents. Schute accompanied Perry back to Bogard’s office, [574]*574where they retrieved the documents. When Klein telephoned Schute from her doctor’s office later that afternoon and learned that the documents had been brought back to the Labor/Employee Relations office, she instructed Schute to return the documents to the Office of General Counsel. He did so, and this time found McGeever back in her office; he turned over the documents to her and requested that she safeguard them. Later that day, Perry learned that the documents had been delivered to the Office of General Counsel again, and for a second time he retrieved them and took them back to the Employee/Labor Relations office.

The next Monday, October 2,1995, Klein received written notice of a possible disciplinary action charging her with gross misconduct, insubordinate behavior, disobeying an order, failure to follow instructions, and interfering with the completion of an investigation. The notice stated that a pre-deprivation hearing would be held at 2:30 that afternoon. At the hearing, Klein expressed her concerns about ethical violations in the investigation and explained her reasons for removing the documents. After hearing Klein’s explanation, the hearing officer imposed a 30-day suspension without pay. Once Klein had served the suspension, she was transferred to the Division of Mental Health at Perry’s' instigation. Klein filed a grievance challenging her punishment, but this was denied. She appealed the denial to the SEAC.

Following an evidentiary hearing at which Klein was represented by counsel, the SEAC concluded that the disciplinary actions against her were warranted. The SEAC found that Klein did not explain to Schute her concerns about potential ethical dilemmas in allowing employees from the CPS division of the Marion County DFC to review the documents; concerns that someone might destroy or tamper with the documents; or concerns about Perry’s involvement in the decision to dismiss one of the caseworkers who instigated the present complaint.

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216 F.3d 571, Counsel Stack Legal Research, https://law.counselstack.com/opinion/klein-barbara-v-perry-sidney-ca7-2000.