Tibbetts v. Kulongoski

567 F.3d 529, 29 I.E.R. Cas. (BNA) 129, 2009 U.S. App. LEXIS 11665, 2009 WL 1492156
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 29, 2009
Docket07-36067
StatusPublished
Cited by40 cases

This text of 567 F.3d 529 (Tibbetts v. Kulongoski) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tibbetts v. Kulongoski, 567 F.3d 529, 29 I.E.R. Cas. (BNA) 129, 2009 U.S. App. LEXIS 11665, 2009 WL 1492156 (9th Cir. 2009).

Opinion

MILAN D. SMITH, JR., Circuit Judge:

Defendant-Appellant Oregon Governor Theodore Kulongoski appeals from the district court’s order denying his motion for summary judgment on the ground of qualified immunity. Plaintiffs-Appellees, who are former employees of the State Accident Insurance Fund, brought this action pursuant to 42 U.S.C. § 1983, alleging, among other claims, that Governor Kulongoski violated their Fourteenth Amendment due process rights by making stigmatizing statements about them in two press releases without providing them name-clearing hearings.

Because the relevant parameters of a Fourteenth Amendment right to a name-clearing hearing were not clear at the time of the allegedly stigmatizing statements, we conclude that a reasonable official in the Governor’s position would not have been aware of his alleged obligation to provide Plaintiffs name-clearing hearings. We therefore reverse the district court and hold that Governor Kulongoski is entitled to qualified immunity in this suit.

Factual and Procedural Background

Plaintiffs Cecil Tibbetts and David Thurber (together, Plaintiffs) are former managerial employees of Defendant State Accident Insurance Fund Corporation (SAIF). SAIF is a part of the executive branch of the State of Oregon but is organized to function as a public corporation. The Oregon legislature created SAIF “for the purpose of transacting workers’ compensation insurance and reinsurance business” with Oregon employers. Or.Rev. Stat. § 656.752(1). SAIF is governed by a five-member Board of Directors (Board) whose members are appointed by the Governor of Oregon, Or.Rev.Stat. § 656.752(1) and (3), and who serve at the Governor’s pleasure, id. The Board appoints a manager to run SAIF, who “serves at the pleasure of the board of directors.” Id. Governor Kulongoski was Governor of Oregon at all times material to this dispute.

In the time period leading up to the events that are the subject of this appeal, SAIF was the subject of extensive media attention because of alleged scandals regarding the practices of its then-President, Katherine Keene. Charges of ethics violations had been filed against SAIF for its alleged failure to report its lobbying expenditures accurately, and a lawsuit had been filed alleging a willful failure to produce documents in violation of public records laws. See Oregonians for Sound Econ. Policy, Inc. v. SAIF, 219 Or.App. 310, 182 P.3d 895 (2008) (hereinafter, OSEP litigation). In December 2003, Keene resigned from her position as SAIF’s Presiden/Manager.

After Keene’s resignation, Plaintiff Cecil Tibbetts, who had served as Vice President for Human Resources at SAIF since November 1, 1995, was appointed to act as SAIF’s Interim President/Manager by SAIF’s Board. In April 2004, the SAIF Board responded to Governor Kulongoski’s public demand for a report regarding some of SAIF’s controversial policies and practices. In a letter to Governor Kulongoski, the Board questioned, among other things, SAIF’s relationship with Associated Oregon Industries, a non-profit business advocacy group, with which Plaintiff David Thurber, Vice President for Policy Ser *532 vices at SAIF, was closely associated. The letter noted that the relationship “has been particularly controversial to some, and it therefore merits special attention.” Some Oregon senators called for an “independent review” of spending, and the media reported that the Oregon Government Standards and Practices Commission had voted to initiate an investigation into whether SAIF had under-reported the money it spent to lobby the legislature.

In June 2004, Mark Cohen, a former SAIF employee, filed an affidavit in the ongoing OSEP litigation which, among other things, accused Tibbetts of twice having ordered the destruction of certain records to avoid producing them in the OSEP litigation. Cohen further alleged that Tibbetts was concealing documents in his office and at his home to avoid disclosing them. The contents of the affidavit were covered by the media. SAIF officials called the allegations “erroneous, misleading and untrue” and described Cohen as a “disgruntled former employee who destroyed the documents without their knowledge.” Tibbetts told a legislative committee that “[he] never told anyone to destroy documents that should have been retained.” Governor Kulongoski thereafter issued a prepared statement to the media, reading:

Unauthorized destruction of public records is against the law and cannot be tolerated by any public official. These allegations are very serious, and I believe they require immediate investigation. I am asking the attorney general to ensure there is a thorough investigation.

At the same time, Governor Kulongoski’s spokeswoman stated to the press that “the governor is not taking a position on the allegations.”

On August 12, 2004, Governor Kulongoski issued a press release announcing his intention to appoint Brenda Rocklin to replace Tibbetts as Interim President/Manager of SAIF. Preceding the issuance of that press release, Governor Kulongoski had explained to Board members that he thought Rocklin was an appropriate replacement because of “her credibility as a person that could fix things.” He further told Board members that he thought that, given its problems, SAIF required some housecleaning and that Rocklin was the person who could make that happen. During this conversation, some Board members reminded Governor Kulongoski that they alone had the statutory authority to appoint the President of SAIF. Nevertheless, after discussing the replacement, the Board voted unanimously on August 12, 2004, to appoint Rocklin as interim President and CEO.

In a press release following Rocklin’s appointment, Governor Kulongoski stated that “[f]or months now, I have been very concerned about management decisions at SAIF,” and “I have asked Brenda to conduct a top-to-bottom review of SAIF to make sure it is accountable to the public.” The Governor further stated that “[t]o preserve [SAIF’s] future, the public needs to know that SAIF is being run in an ethical and accountable manner — and the person to lead this effort is Brenda Rocklin.” According to Rocklin’s deposition testimony, in her discussions with Governor Kulongoski prior to accepting the position as interim president, the Governor indicated that “he hoped there would be some role for Mr. Tibbetts at SAIF Corporation, after he was no longer Acting President,” but “that ultimately [Rocklin] would have to make that decision.”

According to Board member Jon Egge’s deposition testimony, in November 2004, after Rocklin’s interim appointment, Governor Kulongoski contacted the SAIF Board and asked it to call off the search for a permanent CEO for SAIF, and to *533 appoint Rocklin as permanent CEO.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
567 F.3d 529, 29 I.E.R. Cas. (BNA) 129, 2009 U.S. App. LEXIS 11665, 2009 WL 1492156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tibbetts-v-kulongoski-ca9-2009.