Ward v. Anderson

494 F.3d 929, 2007 U.S. App. LEXIS 17531, 2007 WL 2110901
CourtCourt of Appeals for the Tenth Circuit
DecidedJuly 24, 2007
Docket06-8014
StatusPublished
Cited by43 cases

This text of 494 F.3d 929 (Ward v. Anderson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ward v. Anderson, 494 F.3d 929, 2007 U.S. App. LEXIS 17531, 2007 WL 2110901 (10th Cir. 2007).

Opinion

EBEL, Circuit Judge.

Plaintiffs-Appellants Beth and Bryan Ward own a child care facility, Kids’ Connection, that was the subject of an investigation by the Wyoming Department of Family Services (“DFS”). DFS notified the Wards that several allegations of child care licensing rule violations had been substantiated during the investigation. The Wards disputed these allegations, claiming that the DFS investigator lied to them during the investigation and misrepresented the results of her investigation to DFS. After the Wards complained to various DFS employees up to and including the Director, DFS withdrew the allegations without having initiated any action against Kids’ Connection’s license or taken any other disciplinary steps.

The Wards sued several DFS employees involved in the investigation, claiming two violations of the Due Process Clause: first, that the DFS employees violated their procedural due process rights by refusing to grant them a full hearing regarding the disputed allegations; and second, that the *931 DFS investigation was itself improper and inadequate and thus violated their substantive due process rights. The district court granted summary judgment for the defendants, holding that the Wards failed to demonstrate a “clearly established” constitutional violation to overcome the qualified immunity held by defendants as employees of a state agency.

Taking jurisdiction pursuant to 28 U.S.C. § 1291, we agree that the Wards’ due process claims are without merit and therefore AFFIRM the grant of summary judgment to the DFS employees on grounds of qualified immunity.

I. Background

A. Factual History

The Wards are the owners, officers and directors of Kids’ Connection, a child care center in Laramie, Wyoming. In May 2002, the Wards terminated a Kids’ Connection employee for misconduct. The employee threatened to “ruin” Kids’ Connection by complaining to DFS, a state administrative agency which licenses and regulates child care facilities. The employee followed through on this threat, and DFS initiated an investigation into Kids’ Connection in summer 2002. Defendant Leslie Anderson, a licensor at DFS, conducted the investigation; defendants Susan McKellar and Beverly Campbell were Anderson’s supervisors. Rodger McDaniel was Director of DFS. 1

According to the Wards, Anderson’s investigation was improperly conducted. They claim that Anderson “made deliberate misrepresentations in her investigative reports regarding what her investigation showed, that she lied in those reports, and that she made false verbal representations ... about what she had found.”

DFS issued a “Notice of Conclusions” to the Wards in August 2002, which listed eleven allegations substantiated 2 by Anderson’s investigation, including allegations that Kids’ Connection staff were not caring for infants properly; that staff faded to stay in the room with children during nap time; that the Wards failed to maintain confidentiality when discussing staff members with parents and other staff members; that the Wards made false statements to the DFS investigator and instructed staff members to give similarly false and misleading statements; that paperwork regarding medication was not properly collected or maintained; and that the Wards failed to report allegations of suspected child abuse or neglect to DFS.

The Wards immediately contacted Susan McKellar, Anderson’s supervisor, to dispute these substantiated allegations and to request a hearing. McKellar denied their request for a hearing, however, explaining that DFS was not taking any action against Kids’ Connection’s child care license and DFS regulations only require a hearing when action against a license is involved.

In September 2002, DFS issued a second “Notice of Conclusions” containing substantiated allegations very similar to the first. After receiving this second notice, the Wards met in person with *932 Anderson and McKellar to dispute the allegations and again requested a hearing. McKellar again denied the request because no DFS action against Kids’ Connection’s child care license was pending.

The Wards’ attorney sent a letter to Director of DFS Rodger McDaniel in January 2003, again disputing the substantiated allegations and describing “in great detail the deficiencies, falsehoods, untruths, and all of the problems with [the DFS] investigation of Kids’ Connection” and requesting a hearing. The Wards claim they received no response to this letter.

Finally, in May 2003, the Wards met with Beverly Campbell and Director McDaniel to discuss the investigation and the substantiated allegations. The Wards allege that, at this meeting, Campbell admitted that DFS had had problems with Anderson and that she no longer worked for DFS. At the conclusion of this meeting, the Wards were told that all the allegations previously substantiated against Kids’ Connection were withdrawn. After the meeting, Director McDaniel sent a letter to the Wards indicating that no action against Kids’ Connection’s child care license would be forthcoming.

B. Procedural History

The Wards’ October 2004 complaint asserted three causes of action: first, that under 42 U.S.C. § 1983, Anderson’s “wholly inadequate and improper” investigation violated their Fifth Amendment right to due process 3 ; second, also under § 1983, that DFS’s failure to provide a hearing violated their Fifth Amendment right to due process; and third, that Anderson and DFS’s actions were malicious, reckless, or wantonly disregarded the Wards’ rights and therefore merited punitive damages. 4

The complaint alleged that Anderson’s investigation was inadequate; that Anderson misrepresented her findings and made false allegations, “whether intentionally or negligently,” in the Notices of Conclusions; that McKellar participated in the faulty investigation and failed to properly supervise or train Anderson; and that Campbell failed to adequately train or supervise McKellar and Anderson. The complaint also alleged, “on information and belief,” that DFS employees allowed the substantiated allegations to become public knowledge in violation of DFS policy. As a result, the complaint alleged that the Wards suffered monetary losses and loss of standing and reputation.

The defendant DFS employees moved for summary judgment, contending that they were entitled to qualified immunity and that the Wards had failed to allege any “clearly established” constitutional violation. They argued that the Wards were not constitutionally entitled to an adequate investigation and, therefore, that the lack *933

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Bluebook (online)
494 F.3d 929, 2007 U.S. App. LEXIS 17531, 2007 WL 2110901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ward-v-anderson-ca10-2007.