Stott v. Haworth

916 F.2d 134
CourtCourt of Appeals for the Fourth Circuit
DecidedOctober 4, 1990
DocketNos. 89-1032, 89-1037, 89-1049 to 89-1052
StatusPublished
Cited by136 cases

This text of 916 F.2d 134 (Stott v. Haworth) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stott v. Haworth, 916 F.2d 134 (4th Cir. 1990).

Opinions

DONALD RUSSELL, Circuit Judge:

This controversy arose after the election of James G. Martin as governor of the state of North Carolina. Governor Martin, a Republican, succeeded Governor James M. Hunt, a Democrat. After taking office, Governor Martin and his cabinet officers made numerous personnel changes which resulted, inter alia, in the termination or demotion of government employees that held “exempt” positions as defined by the North Carolina legislature. That statute, the North Carolina State Personnel Act, N.C.G.S. §§ 126-1 et seq., provides that “no permanent employee subject to [the Act] shall be discharged, suspended or reduced in pay or position except for just cause.” N.C.G.S. § 126-35. However, the Act exempts certain employees by its terms and allows the governor to designate as exempt from the provisions of the Act certain other [137]*137policymaking or decisionmaking employees.1 Each of the plaintiffs in this cause held an exempt position; that position having been so designated as policymaking or confidential by then Governor Hunt.2

The named plaintiffs brought individual actions seeking damages and injunctive relief, alleging the violation of certain rights protected by the first amendment when each was discharged from an exempt government position for the sole reason of political affiliation. Named as defendants were the governor, his cabinet members and other state officials. The plaintiffs then moved for class certification of their cause pursuant to the provisions of Fed.R. Civ.P. 23, purporting to represent over 130 North Carolina government employees, holding exempt positions, who were subject to adverse personnel action3 in violation of both the Personnel Act and their constitutional rights. Specifically, the plaintiffs sought certification of a class defined as those individuals who:

(a) at any point during the period from 6 November 1984 through 7 January 1985 occupied a position designated as “exempt” from the State Personnel Act as provided in N.C.Gen.Stat. § 126-5 in one of the nine cabinet departments; and
(b) have been or will be terminated, transferred, demoted, or had their resignations or retirements coerced by defendants since the first of November 1984, because of their political affiliation or activities.

After a hearing on the matter, the district court certified the class and allowed the plaintiffs to amend their complaint and add nine new .defendants.4

The defendants in turn moved for decer-tification of the class, recusal of the district judge and summary judgment. The defendants based their motion for summary judgment on alternate grounds: first, that each plaintiff was lawfully subject to discharge for political reasons; and, second, that all damage claims should be dismissed because each of the defendants was clothed with qualified immunity. The district court considered the motion and dismissed the claims of 55 class members but kept alive the claims of another 63 class members. In making its ruling, the court found that 46 of these claimants were absolutely protected from discharge for political reasons. The court deferred ruling on ten class members. In a lengthy opinion, the court noted that a decision as to the appropriate[138]*138ness of summary judgment could not be made without a review of the circumstances surrounding each class member. The court focused its inquiry on the job held by each plaintiff prior to the date of the alleged adverse action, as well as the specific action taken. Lastly, with respect to the defendants’ motion for summary judgment, the court granted five defendants’ motions, finding them to be immune from prosecution of the cause with respect to certain members of the class. Two defendants were dismissed. 725 F.Supp. 1365.

The defendants’ motion for recusal was based on the following undisputed facts. During the course of discovery it was noted that Dr. Charles Cook, formerly an employee of the Department of Human Resources, was a member of the class. Discovery also showed that the district judge’s wife, Judith M. Britt, had, for a time, worked under the supervision of Dr. Cook. It was further disclosed by the district judge that he had been a patient of Dr. Cook and that the Britt family had, some time in the past, maintained a social affiliation with him.

The defendants asserted that because Mrs. Britt had direct knowledge of the facts in the dispute regarding the claim of Dr. Cook and that these facts were central to defending against Dr. Cook’s claim, she would be called as a material witness at trial. This, according to the defendants, mandated recusal. The district court, pursuant to 28 U.S.C. § 4555, reviewed the allegations of the defendants and denied the motion for recusal. The court based its decision upon a finding that Mrs. Britt was not a material witness in this case. The defendants’ motion for class decertification was also denied, as the district court found that there was a central issue that predominated and was capable of class resolution. Specifically, the court found that the central issue in this case was whether the Martin administration engaged in a policy and practice of firing state government employees solely because of their political affiliation or activities.

Thereafter, the district court certified all orders entered for review by this court. 28 U.S.C. § 1292(b). After consideration of the record before us, we remand this cause of action to the district court with an order to decertify the class. Fed.R.Civ.P. 23(a).

I.

The facts comprising the cause before us are not complicated, yet they are in dispute. Governor Martin is, to this date, only the second Republican voted to the post of governor by the North Carolina electorate in the twentieth century. After winning the 1984 gubernatorial election, Governor Martin formed a transition team to facilitate the change of administration. This team advised the governor about policy matters relating to personnel decisions, assisted in implementing the governor’s agenda, reviewed and reported to the governor about the efficiency of the nine governmental departments, and assisted the newly appointed department heads in implementing the governor’s policies. Although the actual personnel policy established during the transition period is in dispute, the record reflects that a prime [139]*139goal of the Martin administration was to cut back on the number of state employees holding exempt positions. In fact, this reduction was an issue during the election campaign, and one that Martin promised he would carry out if elected.

The transition team was later replaced by a personnel committee and a special patronage department headed by Wilma Sherrill. The principal task of the committee and Sherrill’s group was to review the structure of the government and the efficiency of those who held governmental positions and report to the governor about proposed personnel changes.6

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916 F.2d 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stott-v-haworth-ca4-1990.