Leonard v. District of Columbia

794 A.2d 618, 2002 D.C. App. LEXIS 73, 2002 WL 491732
CourtDistrict of Columbia Court of Appeals
DecidedMarch 29, 2002
Docket98-CV-763
StatusPublished
Cited by17 cases

This text of 794 A.2d 618 (Leonard v. District of Columbia) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Leonard v. District of Columbia, 794 A.2d 618, 2002 D.C. App. LEXIS 73, 2002 WL 491732 (D.C. 2002).

Opinion

WAGNER, Chief Judge.

Appellants appeal from a decision of the trial court granting appellees’ motion to dismiss their claims for failure to state a cause of action for injunctive and other relief arising out of their discharge from employment with the District of Columbia government. 1 Appellants sued for unlawful termination, alleging that they were career civil service employees who had been terminated from their employment without cause, prior notice or due process and in violation of their rights under the Comprehensive Merit Personnel Act of the District of Columbia (CMPA), D.C.Code § 1-601.1 et seq. They also alleged that the Chief Financial Officer (CFO) of the District made false, malicious, reckless and defamatory public declarations that they were incompetent. 2 The trial court concluded that appellants’ civil service status had been converted to an “at-will” employment by section 152 of the Omnibus Consolidated Rescission and Appropriations *622 Act of 1996 (OCRA Act) and that the CFO acted lawfully within his broad grant of authority under that Act. The trial court also rejected appellants’ constitutional challenges to the OCRA Act and dismissed their complaint. Appellants argue for reversal on the grounds that: (1) the complaint alleged a justiciable claim that their firings were motivated by bias, political and other unlawful reasons; (2) section 152 did not convert their career status to “at-will” employment; (8) they were terminated in a manner which impugned their reputations thereby requiring a due process “reputation hearing”; and (4) the statute, as applied, unconstitutionally deprived them of procedural and substantive due process. We hold that the OCRA Act implicitly repealed appellants’ career service status and converted them to “at-will” employees subject to discharge without the benefit of the procedures specified in the CMPA. Concluding that the trial court erred in dismissing appellants’ defamation-based claim, we reverse for further proceedings as to that count. Otherwise, we affirm the trial court’s decision.

I.

Factual and Procedural Background

Prompted by concern for a fiscal crisis in the District of Columbia, Congress enacted the D.C. Financial Responsibility and Management Assistance Act (Financial Responsibility Act), Public Law 104-8, on April 17, 1995, which placed various governmental functions under the Financial Responsibility and Management Assistance Authority (commonly referred to as the “Control Board”). The Financial Responsibility Act placed the personnel and functions of the Controller, Office of Information Services and the Department of Finance and Revenue under the direction and control of the CFO. Subsequently, Congress included in section 152 of the OCRA Act a provision for personnel in specified budget, accounting and financial management offices to be appointed by and to serve at the pleasure of the CFO. Thereafter, without advance notice to appellants, the CFO fired appellants, all of whom had been employed in the covered financial operations.

Appellants first challenged their terminations with the Office of Employee Appeals (OEA), claiming that the CFO violated their merit protection rights under the CMPA. Consistent with the position of the CFO, the OEA concluded that appellants had been converted to “at-will” employees by section 152 of the OCRA Act, which had suspended any procedural rights they might have had under the CMPA. Prior to the conclusion of the proceedings before the OEA, appellants filed their initial complaint with the Superior Court seeking in-junctive relief and damages. In their complaint, appellants contended that since the CFO claimed that their appeals to the OEA were a legal nullity in light of controlling legislation, attempts to exhaust administrative remedies would be futile. They alleged unlawful discharge from employment with the District where each had been a permanent career service employee. Appellants alleged that they had performed satisfactorily or better, having received performance evaluations ranging from satisfactory to excellent or outstanding. They alleged, and it is not disputed, that prior to notifying them that they would be terminated, the CFO issued a press release stating his “intention to dismiss a number of employees who clearly lack the skills to perform their job functions and/or have not demonstrated the level of professional commitment required in this new environment of performance and accountability.” Appellants further alleged that these statements were false and made maliciously and recklessly and with *623 out regard as to their truth or falsity. Appellants also filed a motion for preliminary injunction, contending that they were being irreparably harmed as a result of their unlawful terminations from government service. In that motion, appellants challenged: (1) section 152 of the OCRA Act as unconstitutional on its face and as applied to them because it arbitrarily deprived a small group of employees of property rights conferred by the CMPA; (2) section 152 is unrelated to any legitimate objective of Congress and violates appellants’ substantive due process rights; (3) the CFO exceeded his authority under section 152 of the OCRA Act; (4) section 152 does not render them “at-will” employees; and (5) public assertion by the CFO that appellants were incompetent constitutes an unconstitutional deprivation of liberty without due process of law.

After appellants filed their original complaint, the OEA issued a decision holding that section 152 made them “at-will” employees at the time the CFO terminated them, and therefore, they were not entitled to the protections of the CMPA. 3 Appellants then filed an amended complaint reasserting the claims set forth in the original complaint and further seeking review of the OEA’s decision on the ground that it was erroneous as a matter of law and that factual disputed issues precluded summary disposition. The District and the CFO filed a motion to dismiss the amended complaint for failure to state a cause of action upon which relief may be granted. The trial court affirmed the decision of the OEA, denied appellants’ motion for preliminary injunction and granted the District’s motion to dismiss the remaining claims pursuant to Super. Ct. Civ. R. 12(b)(6) for failure to state a cause of action upon which relief can be granted. The trial court agreed with the OEA that section 152 of the OCRA Act converted appellants to “at-will” employees, thereby divesting them of any pre-termination procedural rights or rights to be terminated only for cause under the CMPA. The trial court also rejected appellants’ claims that: (1) section 152 cannot withstand constitutional scrutiny because of the small percentage of employees discharged; and (2) the CFO’s press statements about the reason for their terminations touched any protected liberty interest which might give rise to a due process “reputation” hearing. Further, the court rejected their substantive due process challenge to the statute. 4

II.

A. Due Process and Property Interest

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Bluebook (online)
794 A.2d 618, 2002 D.C. App. LEXIS 73, 2002 WL 491732, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leonard-v-district-of-columbia-dc-2002.