Thompson v. Community Action of Greater Wilmington, Inc.

567 F. Supp. 1159, 1983 U.S. Dist. LEXIS 15563
CourtDistrict Court, D. Delaware
DecidedJuly 8, 1983
DocketCiv. A. 82-115
StatusPublished
Cited by3 cases

This text of 567 F. Supp. 1159 (Thompson v. Community Action of Greater Wilmington, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompson v. Community Action of Greater Wilmington, Inc., 567 F. Supp. 1159, 1983 U.S. Dist. LEXIS 15563 (D. Del. 1983).

Opinion

OPINION

MURRAY M. SCHWARTZ, District Judge.

Plaintiff, Richard Thompson, instituted this action pursuant to the Civil Rights Act of 1964, 42 U.S.C. § 1983 (“section 1983”) against the Community Action Agency of Greater Wilmington (“CAGW”) and certain officers and members of the CAGW Board of Directors. 1 Thompson alleges violations of his First, Fifth, and Fourteenth Amendment rights in connection with his dismissal as Comptroller of CAGW. Plaintiff also urges three pendent state claims: first, that defendant Fitchett libeled or slandered him; second, that all the individual defendants maliciously interfered with his contract with CAGW; and third, that the acts of CAGW and the individual defendants constituted a breach of his employment contract with CAGW. The defendants have moved, pursuant to Fed.R.Civ.P. 12(b)(1) and 12(b)(6), to dismiss the complaint. 2

I. Background

The complaint alleges that during 1981, while serving in various capacities for CAGW, 3 plaintiff notified defendants Hall-man and Slawik, later the CAGW financial committee, and ultimately the CAGW Board of Directors of cash flow and imminent deficit problems as well as possible other financial irregularities in the operation of CAGW. Dkt. 1, ¶¶ 10-12, 14-16, 18. When the Board failed to undertake any significant corrective action, plaintiff’s complaint states that, in late 1981, Thompson contacted the local news media about the financial difficulties of CAGW. Id. at ¶ 17. Allegedly, plaintiff was fired by the Board of Directors at a meeting on January 4, 1982 in retaliation for his actions. 4

Since section 1983 proscribes only certain activities taken “under color of state law,” the threshold question in this case is whether defendants were engaged in state action when they dismissed Thompson. On October 1, 1982, the Court held a hearing on defendants’ motion to dismiss. After determining that the record was insufficient to draw any conclusion regarding the existence of state action, the Court permitted the parties to supplement the record. 5 The parties proceeded at a relaxed pace and, after discovery regarding the issue, the plaintiff filed a letter memorandum, affidavit, and appendix. The defendant thereaft *1161 er declined to further supplement the record.

CAGW is a community action agency. The genesis of such agencies may be traced to the Economic Opportunity Act of 1964, 42 U.S.C. §§ 2781-2837 (1976) (repealed) (“the EOA”). The EOA was enacted to promote and foster the creation of community action agencies that would coordinate federal, state and private efforts to eliminate poverty through localized programs. See 42 U.S.C. § 2781(a) (repealed) (congressional statement of purpose). While Congress left broad discretion to the local communities in the operation of the agencies, the EOA did establish guidelines for the structure and functions of these agencies. Id. at §§ 2790-2808 (repealed); see also H.R.Rep. No. 1458, 88th Cong., 2d Sess., reprinted in 1964 U.S.Code Cong. & Ad. News 2900, 2909. Compliance with these statutory provisions was required in order to receive federal funding. 6

The EOA afforded the state discretion to determine the basic form of the community action agency. The statute provided that “[a] community action agency shall be a state or political subdivision of a State ... or a combination of such political subdivisions, or a public or private nonprofit agency or organization which has been designated by a State.” 42 U.S.C. § 2790(a) (repealed). Local governments could decline to be included in the community action program of a community action agency. Id. at § 2790(e) (repealed).

If a state decided to designate a private non-profit entity as the community action agency, rather than one of its own public bodies, the EOA required that the board of directors of the entity conform to the following requirement:

Each board to which this subsection applies shall consist of not more than fifty-one members and shall be so constituted that (1) one-third of the members of the board are elected public officials, or their representatives, except that if the number of elected officials reasonably available and willing to serve is less than one-third of the membership of the board, membership on the board of appointive public officials may be counted in meeting such one-third requirement.

42 U.S.C. § 2791(b) (repealed). Congress also established the authority of the board:

The powers of every community action agency governing board shall include the power to appoint persons to senior staff positions, to determine major personnel, fiscal, and program policies, to approve overall program plans and priorities, and to assure compliance with conditions of and approve proposals for financial assistance under this subchapter.

Id. at § 2791(e) (repealed).

CAGW is a private non-profit Delaware corporation organized to fulfill the goals of the EOA. It was created and designated as the official anti-poverty agency for New Castle County, Delaware in the mid-1960’s. CAGW received approximately 70 percent of its funding from federal funds, 20 percent from the state funds, 9.5 percent from local funds, and one-half of one percent from private sources. Affidavit of Richard A. Thompson, Dkt. 30, ¶ 8.

During 1981, the period in question, CAGW’s Board of Directors complied with *1162 the statutorily mandated composition of public, private and target group members. 7 The Board designated and delegated power over daily operations to the Executive Director, defendant Hallman, and Deputy Director, defendant Slawik, as permitted by the EOA. 42 U.S.C. § 2791 (repealed).

CAGW worked closely with the Delaware Office of Economic Opportunity, the state agency charged with oversight of CAGW’s receipt and utilization of state, local, and federal funding. The state entered into several contracts with CAGW focusing on energy conservation and assistance and food programs designed to alleviate the plight of low income citizens of New Castle County. Dkt. 41, P. 2-3.

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Bluebook (online)
567 F. Supp. 1159, 1983 U.S. Dist. LEXIS 15563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-community-action-of-greater-wilmington-inc-ded-1983.