Sperry v. Roberts

Court of Appeals for the Tenth Circuit·Decided July 18, 2022·No. 21-3151·Unpublished

Opinion

Appellate Case: 21-3151 Document: 010110712170 Date Filed: 07/18/2022 Page: 1 FILED

United States Court of Appeals UNITED STATES COURT OF APPEALS Tenth Circuit

FOR THE TENTH CIRCUIT July 18, 2022

Christopher M. Wolpert

Clerk of Court

JEFFREY J. SPERRY,

Plaintiff - Appellant,

v. No. 21-3151 (D.C. No. 5:18-CV-03120-HLT-GEB)

RAYMOND ROBERTS, Retired (D. Kan.) Secretary, Kansas Department of Corrections, in his individual and official capacity; JOHNNIE GODDARD, Kansas Department of Corrections, in his individual and official capacity; REX PRYOR, Retired Warden, Lansing Correctional Facility, in his individual and official capacity; JAMES HEIMGARTNER, Warden, El Dorado Correctional Facility, in his individual and official capacity; LINDSEY WILDERMUTH, Unit Team Manager, Lansing Correctional Facility, in her individual and official capacity,

Defendants - Appellees.

ORDER AND JUDGMENT *

Before MATHESON, BACHARACH, and MORITZ, Circuit Judges.

*

After examining the briefs and appellate record, this panel has determined unanimously to honor the parties’ request for a decision on the briefs without oral argument. See Fed. R. App. P. 34(f); 10th Cir. R. 34.1(G). The case is therefore submitted without oral argument. This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. It may be cited, however, for its persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1.

Appellate Case: 21-3151 Document: 010110712170 Date Filed: 07/18/2022 Page: 2

Jeffrey J. Sperry, a Kansas prisoner proceeding pro se, sued defendants Raymond Roberts, Johnnie Goddard, Rex Pryor, James Heimgartner, and Lindsey Wildermuth, in their individual and official capacities, for failing to pay him the interest earned on his inmate trust account. 1 The district court entered judgment in favor of defendants and Mr. Sperry now appeals. Exercising jurisdiction under 28 U.S.C. § 1291, we affirm.

I. BACKGROUND

Mr. Sperry, an inmate in the custody of the Kansas Department of Corrections (KDOC), sued 24 KDOC defendants, alleging claims related to his conditions of confinement. After he filed an amended complaint, the district court severed four claims into separate lawsuits. One of them led to this appeal and involves a single count.

A. Alleged Claims

In that count, Mr. Sperry alleged that from 1997 to February 2012, the interest he accrued was added to his inmate trust account each month, but starting in February

1

Under Kan. Stat. Ann. § 76-173, “all moneys belonging to and held by the [corrections] institution for the use and benefit of each individual who is a[n] inmate of the institution . . . shall deposit such moneys in one or more interest-bearing accounts. . . . Such moneys shall constitute a[n] . . . inmate trust fund.”

“The moneys of each trust fund” may be invested in “certificates of deposit” but “shall continue to be a part of the trust fund from which the money originates.” Id. § 76-175(a). “Interest earned on moneys invested” in the certificates of deposit “shall be regularly prorated . . . and credited to the . . . inmate . . . on the basis of the amount of money . . . inmate . . . has in the trust fund.” Id. § 76-175(b).

2012, the Defendants started embezzling the accrued interest and stopped adding it to his account. He asserted the Defendants (1) violated the Fifth Amendment Takings Clause, (2) violated his rights to due process and equal protection under the Fourteenth Amendment, (3) embezzled his funds under the Racketeer Influenced and Corrupt Organizations (RICO) Act, and (4) conspired to violate his civil rights under 42 U.S.C. § 1985. He also alleged the state-law torts of (1) conversion, (2) outrageous conduct, (3) breach of fiduciary duty, and (4) negligence. For relief, he sought an injunction ordering the Defendants to “immediately start paying plaintiff his proper interest on his inmate trust accounts,” ROA at 32, and asked for monetary damages “in the total amount of interest embezzled from every inmates’ [sic] trust account,” id. at 33.

B. Martinez Report

The district court ordered Defendants to prepare a Martinez report to address Mr. Sperry’s allegations. 2 In response, the KDOC submitted a report explaining that it regulates inmate trust funds through Internal Management Policy and Procedure 40-103. Consistent with that policy and state law, KDOC allocates interest on a regular basis to each inmate’s trust fund account. Specifically, “[i]mmediately upon

2 “When the pro se plaintiff is a prisoner, a court-authorized investigation and report by prison officials (referred to as a Martinez report) is not only proper, but may be necessary to develop a record sufficient to ascertain whether there are any factual or legal bases for the prisoner’s claims.” Hall v. Bellmon, 935 F.2d 1106, 1109 (10th Cir. 1991) (citing Martinez v. Aaron, 570 F.2d 317, 318-19 (10th Cir. 1978) (en banc) (per curiam)).

close of the monthly interest earning period, interest earned on inmate trust fund less the applicable bank service fee shall be credited to each active account as of the date of allocation in the same proportion as the average daily balance of the investment group.” ROA at 151 (emphasis added). The report further explained that from February 2012 through June 2017, the amount of bank service fees charged on the inmate trust accounts exceeded the interest earned from those accounts, so Mr. Sperry did not receive any interest during that time. In June 2017, the interest earned from Mr. Sperry’s account once again exceeded the account’s service fees, so interest income started to be credited in his account.

C. First Order

Defendants filed a motion to dismiss the complaint under Rules 12(b)(1) and 12(b)(6) of the Federal Rules of Civil Procedure or, in the alternative, for summary judgment. The district court granted in part and denied in part the motion to dismiss. It dismissed the federal claims for monetary damages against defendants in their official and individual capacities based on Eleventh Amendment immunity and qualified immunity, respectively. It also determined that it lacked jurisdiction over Mr. Sperry’s state-law claims. But it concluded Mr. Sperry could proceed on his federal claims for injunctive relief. We refer to this as the “first order.”

Appellate Case: 21-3151 Document: 010110712170 Date Filed: 07/18/2022 Page: 5

D. Second Order

Mr. Sperry moved for reconsideration of the first order, 3 and Defendants moved for summary judgment on the federal claims for injunctive relief. Mr. Sperry then moved to strike the second motion for summary judgment and also filed a separate response.

In its order addressing the pending motions, the district court first noted Mr. Sperry could seek injunctive relief against Defendants only in their official capacities. It next granted summary judgment for Defendants Goddard, Pryor, Heimgartner, and Wildermuth because the uncontroverted facts showed they had no authority or control over Mr. Sperry’s inmate trust fund account. As for Mr. Sperry’s federal claims for injunctive relief against Defendant Roberts, the court first determined Mr. Sperry had failed to exhaust his Fourteenth Amendment, RICO Act, and § 1985 claims. The court next determined he had failed to show a triable issue of fact on his Fifth Amendment Takings Clause claim.

In sum, the district court denied Mr. Sperry’s motion for reconsideration and motion to strike and granted Defendants’ motion for summary judgment. We refer to this as the “second order.” This appeal followed.

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