Larry Wheaton v. Freddye Webb-Petett, Administrator, Adult and Family Services Division of the State of Oregon

931 F.2d 613, 91 Daily Journal DAR 4987, 91 Cal. Daily Op. Serv. 3135, 1991 U.S. App. LEXIS 7867
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 1, 1991
Docket89-35470, 89-35524
StatusPublished
Cited by59 cases

This text of 931 F.2d 613 (Larry Wheaton v. Freddye Webb-Petett, Administrator, Adult and Family Services Division of the State of Oregon) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Larry Wheaton v. Freddye Webb-Petett, Administrator, Adult and Family Services Division of the State of Oregon, 931 F.2d 613, 91 Daily Journal DAR 4987, 91 Cal. Daily Op. Serv. 3135, 1991 U.S. App. LEXIS 7867 (9th Cir. 1991).

Opinion

EUGENE A. WRIGHT, Circuit Judge:

Larry Wheaton appeals the dismissal on summary judgment of his action challenging his removal from the State of Oregon’s management service. We review de novo, viewing the evidence in the light most favorable to Wheaton, to determine whether any factual issue precludes summary judgment and whether the district court correctly applied the substantive law. Tzung v. State Farm Fire and Casualty Co., 873 F.2d 1338, 1339-40 (9th Cir.1989). We reverse and remand his property interest claim, affirm the dismissals of his liberty interest and first amendment claims and affirm that Webb-Petett is entitled to qualified immunity as to Wheaton’s claims for damages.

I

BACKGROUND

In 1984, Wheaton became the manager of the Clackamas branch office of Oregon’s Adult and Family Services Division (AFSD). AFSD serves a clientele of persons on welfare. Wheaton had by then *615 served the State of Oregon for 20 years in positions of increasing responsibility. As Clackamas Branch Manager, he consistently received the highest performance ratings possible.

Ben Talley, the manager for AFSD’s Northern Region, was Wheaton’s immediate supervisor. On January 14, 1988, Talley told Wheaton to clear his desk and leave that day because he was suspended. When Wheaton asked Talley what would happen after the suspension, Talley said that the head of AFSD, defendant Administrator Freddye Webb-Petett, wanted Wheaton fired. A few days later, Talley told Wheaton that he had been placed on administrative leave. Wheaton understood this to be a suspension with pay until he could be fired.

By letter of March 4, AFSD personnel specialist Bea Brooks notified Wheaton of his removal from the management service effective March 15 and his restoration to a position in the classified service. The letter described the basis for removal as Wheaton’s “aggressive resistance” during December 1987 and January 1988 to a test program known as “NEW JOBS.”

The purpose of NEW JOBS was to help clients escape welfare dependency through employment. It was to be implemented on a trial basis in selected AFSD offices, including Wheaton’s. Wheaton had accepted the invitation of the legislative taskforce that designed NEW JOBS for Clackamas to serve as a pilot site.

Wheaton planned to contract out NEW JOBS work to existing community organizations. The other six pilot sites planned to implement NEW JOBS using Oregon state employees. Unionized Oregon employees opposed Wheaton’s plan to contract out NEW JOBS work.

In detailing the basis for Wheaton’s removal, the March 4 letter described several incidents. It referred to remarks by Whea-ton during a December 1987 briefing for AFSD managers about NEW JOBS transition training. Reportedly, these remarks were to the effect that Wheaton’s employees were not involved in NEW JOBS because of his plan to contract it out, so they would not be attending the NEW JOBS training. A January 5, 1988 meeting was cited, in which Wheaton was said to have made remarks that were “unsupportive” of AFSD’s top management and of NEW JOBS. 1 Also mentioned was a small staff turnout for the Clackamas Branch Transition Training held on January 13, 1988 and Wheaton’s “resistant behavior” at that training.

Wheaton sued Webb-Petett under 42 U.S.C. § 1983, charging that her actions deprived him of property and liberty interests without procedural due process. He also asserted that his removal was in retaliation for his constitutionally protected speech. The district court granted Webb-Petett’s motion for summary judgment. It found no property, liberty or speech interests of constitutional stature and held that Webb-Petett was entitled to qualified immunity.

II

PROCEDURAL DUE PROCESS CLAIMS

“The requirements of procedural due process apply only to the deprivation of interests encompassed by the Fourteenth Amendment’s protection of liberty and property.” Board of Regents v. Roth, 408 U.S. 564, 569, 92 S.Ct. 2701, 2705, 33 L.Ed.2d 548 (1972). To hold Webb-Petett liable under section 1983 on a procedural due process theory, Wheaton must begin by establishing that he had either a property or a liberty interest meriting constitutional protection.

A

Property Interest

Constitutionally protected property interests “are created and their dimensions *616 are defined by existing rules or understandings that stem from an independent source such as state law.” Roth, 408 U.S. at 577, 92 S.Ct. at 2709. “[Although state law creates a property interest, not all state-created rights rise to the level of a constitutionally protected interest.” Brady v. Gebbie, 859 F.2d 1543, 1548 n. 3 (9th Cir.1988), cert. denied, 489 U.S. 1100, 109 S.Ct. 1577, 103 L.Ed.2d 943 (1989). The question whether a state-created right triggers constitutional protections is a question of federal constitutional law. Id.

The district court found as a matter of law that Wheaton had no property interest in the Clackamas Branch Manager job. We review de novo a district court’s legal rulings, whether these involve federal law or the law of the forum state. Salve Regina College v. Russell, — U.S. -, -, 111 S.Ct. 1217, 1220-21, 113 L.Ed.2d 190 (1991); In re McLinn, 739 F.2d 1395, 1397 (9th Cir.1984) (de novo review applies to any state law interpretation by a district court, not merely to interpretations in diversity cases). After carefully considering the district court’s legal analysis of the property interest issue, we hold it erroneous.

The Oregon management service, which was created in 1981, is a relatively recent refinement of that state’s civil service. See Or.Rev.Stat. § 240.212 (1989). Before 1981, Oregon civil servants were assigned to one of three categories: the classified service, the unclassified service or the exempt service. See id. § 240.195.

The management service appears to be a hybrid between Oregon’s classified and unclassified services. While neither the management nor the unclassified service is covered by the full panoply of Oregon merit system provisions, Or.Rev.Stat. § 240.240(1) (1989), more features of the merit system apply to the management service than to the unclassified service. Compare id. § 240.240 with id. § 240.250 and id. § 240.570(3)-(5).

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931 F.2d 613, 91 Daily Journal DAR 4987, 91 Cal. Daily Op. Serv. 3135, 1991 U.S. App. LEXIS 7867, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larry-wheaton-v-freddye-webb-petett-administrator-adult-and-family-ca9-1991.