O'Donnell v. Simon

362 F. App'x 300
CourtCourt of Appeals for the Third Circuit
DecidedJanuary 28, 2010
DocketNo. 09-1241
StatusPublished

This text of 362 F. App'x 300 (O'Donnell v. Simon) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Donnell v. Simon, 362 F. App'x 300 (3d Cir. 2010).

Opinion

OPINION

BARRY, Circuit Judge.

Eileen O’Donnell appeals from the District Court’s July 25, 2007 order granting Gale Simon and Lee Barry’s motion to dismiss her complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). We have jurisdiction pursuant to 28 U.S.C. § 1291, and will affirm.

I. Background

Because we write solely for the parties’ benefit, we set forth only those facts necessary to our analysis. In deciding a motion to dismiss under Rule 12(b)(6), all factual allegations must be accepted as true and all reasonable inferences drawn in plaintiffs favor. Phillips v. County of Allegheny, 515 F.3d 224, 228 (3d Cir.2008). Our review of the grant of a motion to dismiss is plenary. Id. at 230.

In 1995, O’Donnell began working as an attorney for First Option Health Plan of New Jersey, a company purchased by Health Net, Inc. (“Health Net”)1 in 1997. While working for Health Net, O’Donnell, among other duties, regularly interacted with the New Jersey Department of Banking and Insurance (“DOBI”), a state agency charged with the oversight of health care companies, and Simon and Barry, both DOBI Assistant Commissioners.2

In 2002, O’Donnell learned that, beginning in July 2001, Health Net used an improper database for calculating claim reimbursements in violation of New Jersey regulations. The incorrect calculations that resulted led to Health Net making restitution, paying a fine, and being named as a defendant in a class action lawsuit. During the course of the class action, it was revealed that Health Net also used an improper database in 1999, but failed to inform DOBI of the error or, if it had, failed to make restitution. Simon and Barry blamed O’Donnell for the 1999 failure, characterizing her actions as “hiding” the violation. (App.21.) In the class action litigation, Health Net blamed O’Donnell [303]*303for the 1999 violation, an allegation she denies.

In the summer of 2005, DOBI met with Health Net officials. At that meeting, Simon and/or Barry informed Health Net that O’Donnell impeded relations between DOBI and Health Net and that O’Donnell was “untrustworthy, uncooperative and too adversarial.” (App.22.) Simon and Barry advised Health Net that DOBI did not wish to interact with O’Donnell. Thereafter, O’Donnell learned that Simon directed DOBI employees not to communicate with O’Donnell, and O’Donnell’s supervisor at Health Net directed her not to interact with DOBI. O’Donnell informed Health Net that she was considering filing a lawsuit against DOBI and its agents for “blackballing” her. She was terminated by Health Net in January 2006. (App.24.)

In November 2006, O’Donnell filed suit against Simon and Barry in the U.S. District Court for the District of New Jersey alleging violations of both 42 U.S.C. § 1983 and the New Jersey Civil Rights Act, N.J. Stat. Ann. § 10:6-1 et seq., as well as common law claims of negligence, intentional or negligent infliction of emotional distress, tortious interference with contractual relationships, tortious interference with prospective economic advantage, and defamation. The District Court granted Simon and Barry’s Rule 12(b)(6) motion to dismiss.

II. Discussion

A.

O’Donnell contends that Simon and Barry’s conduct led to her being barred from dealing with DOBI and, thus, wrongfully deprived her of property and liberty interests under the Fourteenth Amendment, in violation of 42 U.S.C. § 1983.3 Specifically, O’Donnell contends that she was deprived of: (1) her interests in her law license and continuing her chosen profession; and (2) her interest in avoiding debarment which would preclude her interaction with DOBI. Simon and Barry contend that they are shielded by qualified immunity.

“[Qualified immunity protects government officials from liability for civil damages insofar as their conduct does not violate clearly established ... constitutional rights of which a reasonable person would have known.” Pearson v. Callahan, — U.S. -, 129 S.Ct. 808, 815, 172 L.Ed.2d 565 (2009) (quotation omitted). It reflects the “need to hold public officials accountable when they exercise power irresponsibly and the need to shield officials from harassment, distraction, and liability when they perform their duties reasonably.” Id. In Saucier v. Katz, the Supreme Court mandated a two-step qualified immunity analysis — first, whether “the facts alleged show that the [official’s] conduct violated a constitutional right,” and, second, whether the right, if violated, “was clearly established.” 533 U.S. 194, 201, 121 S.Ct. 2151, 150 L.Ed.2d 272 (2001). In Pearson, the Court backed away from that sequence, stating, “while the sequence set forth [in Saucier ] is often appropriate, it should no longer be regarded as mandatory.” 129 S.Ct. at 818. We nonetheless begin by determining whether O’Donnell can establish a constitutional violation. Because she cannot, we need not proceed further.

A plaintiff alleging a property interest in employment “must have more than a unilateral expectation of continued [304]*304employment; rather, [he or] she must have a legitimate entitlement to such continued employment.” Hill v. Kutztown, 455 F.3d 225, 234 (3d Cir.2006). A “plaintiff must demonstrate entitlement to a property interest created expressly by state statute or regulation or arising from government policy or a mutually explicit understanding between a government employer and an employee.” Carter v. Philadelphia, 989 F.2d 117, 120 (3d Cir.1993). Here, O’Donnell fails to cite any statute, regulation, policy, or mutually explicit understanding establishing that she has a property interest in interacting with DOBI or to continued employment with Health Net. Accordingly, her “unilateral expectation of continued employment” does not rise to the level of a constitutionally protected property interest.

“The right to hold specific private employment and to follow a chosen profession free from unreasonable governmental interference” are liberty and property interests protected by the Constitution. Pieck-nick, 36 F.3d at 1259. However, “[s]tate actions that exclude a person from one particular job are not actionable in suits ... brought directly under the due process clause. It is the liberty to pursue a calling or occupation, and not the right to a specific job, that is secured by the Fourteenth Amendment.” Id. (alteration in original; quotations and citations omitted).

Here, O’Donnell contends that Simon and Barry’s conduct “effected a loss of existing employment, a loss of employability in the field of her chosen profession, and a contraction of her law license.” (Appellant Brief at 21.) However, O’Donnell’s contention that Simon and Barry’s conduct amounted to a de facto

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Bluebook (online)
362 F. App'x 300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/odonnell-v-simon-ca3-2010.