Vinyard v. King

728 F.2d 428, 115 L.R.R.M. (BNA) 3563
Court of Appeals for the Tenth Circuit·Decided February 16, 1984·No. No. 82-1521·Published·Cited by 62 cases

Opinion

McKAY, Circuit Judge.

We are asked to decide whether the district court properly granted summary judgment on the issue of whether plaintiff, Eda-leen Vinyard, had a property interest in her continued employment with a municipal hospital.

I. Background

Mrs. Vinyard was hired as the hospital’s Director of Volunteer Services in 1972. She served in that capacity until 1978, when Robert J. King, the hospital’s administrator, fired her for allegedly violating his policy concerning the confidentiality of personnel communications. Mrs. Vinyard has consistently denied that allegation. Both parties stipulate, however, that plaintiff was given no hearing prior to being fired. Record, vol. 2, at 201. At the time she was hired, there was no formal employees’ manual in effect. However, in 1976, Mrs. Vinyard was given a copy of the hospital’s Employee Handbook (“handbook”) which provided information concerning the policies and benefits applicable to hospital employees. Record, vol. 2, at 282.

Mrs. Vinyard filed this suit under 42 U.S.C. § 19831 against Mr. King and the [430] members of the hospital’s board of directors, in their official and individual capacities. She sought, inter alia, reinstatement, compensatory damages, punitive damages against Mr. King, costs and attorney’s fees. She alleged that her termination was state action depriving her of a property interest in her continued employment without due process of the law, in violation of the fourteenth amendment.2 U.S. Const. amend. XIV, § 1. The district court in Vinyard I invoked the Pullman3 abstention doctrine. We reversed4 and remanded for the district court to decide whether the facts surrounding Mrs. Vinyard’s employment gave rise to a property interest under Oklahoma law.5 On remand, defendant filed a motion for summary judgment. Mrs. Vinyard appeals the district court’s grant of defendants’ motion for summary judgment, holding that under Oklahoma law, she does not have a property interest in her continued employment. She claims that there are genuine issues of material fact surrounding her employment contract with the hospital, precluding an award of summary judgment. Fed.R.Civ.P. 56(c).

As we must do, we have considered all factual inferences in the light most favorable to the existence of issues of material fact, and in the light most favorable to the plaintiff, Mrs. Vinyard — the party opposing the summary judgment motion. Exnicious v. United States, 563 F.2d 418, 423 (10th Cir.1977). We reverse the decision of the district court on the ground that as a matter of Oklahoma law, Mrs. Vinyard has a constitutionally protected property interest in her employment with the hospital. We remand for the district court to determine the appropriate award of damages, costs and attorney’s fees.

II. Section 1983 Claim

When bringing a section 1983 action, a public employee must show that she possesses a property or liberty interest in her employment in order to trigger the due process protections afforded by the fourteenth amendment. Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972). In the case before us, Mrs. Vinyard advances two theories in an attempt to support the sufficiency of her property interest claim. First, despite the fact that she had no written employment contract, Mrs. Vinyard alleges that there were special circumstances and considerations giving rise to an implied employment contract with the hospital. Mutually explicit understandings can create a property interest in continued employment by means of an implied contract. Bishop v. Wood, 426 U.S. 341, 344 & n. 6, 96 S.Ct. 2074, 2077 & n. 6, 48 L.Ed.2d 684 (1975) (citing with approval Perry v. Sindermann, 408 U.S. 593, 601, 92 S.Ct. 2694, 2699, 33 L.Ed.2d 570 (1972)). If we thought that plaintiff’s property interest existed by means of an implied annual contract with her employer, we would remand for a factual determination of whether the facts and special circumstances alleged by plaintiff do indeed give [431] rise to such a contract.6 However, the existence and sufficiency of Mrs. Vinyard’s property interest is governed by the terms set forth in the hospital’s handbook.

Mrs. Vinyard’s second theory is that a property interest in her continued employment was created when the hospital issued its employee handbook in 1976.7 Record, vol. 2, at 211-82. She argues that the handbook creates a property interest because it provides that permanent employees, such as herself, could only be discharged for cause.8 See Arnett v. Kennedy, 416 U.S. 134, 94 S.Ct. 1633, 40 L.Ed.2d 15 (1974).

Defendants would like us to believe, however, that the hospital was not restricted to dismissing its employees solely for cause. They argue that classification as a “permanent” employee does not give rise to a contract other than one for an indefinite period of time — terminable at will. The district court, citing to Edwards v. Kentucky Utilities Co., 286 Ky. 341, 150 S.W.2d 916 (1941), and Garza v. United Child Care, Inc., 88 N.M. 30, 536 P.2d 1086 (App.1975), cases cited by the Oklahoma Supreme Court in Singh v. Cities Service Oil Co.,9 554 P.2d 1367, 1369 n. 3 (Okl.1976), concluded that under Oklahoma law the parties’ employment relationship was terminable-at-will and that the handbook did not restrict the hospital to discharge its permanent employees only for cause. Vinyard v. King, No. C-79-185-W, slip op. at 4-5 (W.D.Okla. January 27, 1982). We disagree.

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Vinyard v. King, 728 F.2d 428, 115 L.R.R.M. (BNA) 3563 (10th Cir. 1984).

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