Zaida Lydia De Choudens v. The Government Development Bank of Puerto Rico

801 F.2d 5
CourtCourt of Appeals for the First Circuit
DecidedSeptember 24, 1986
Docket86-1059
StatusPublished
Cited by77 cases

This text of 801 F.2d 5 (Zaida Lydia De Choudens v. The Government Development Bank of Puerto Rico) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zaida Lydia De Choudens v. The Government Development Bank of Puerto Rico, 801 F.2d 5 (1st Cir. 1986).

Opinions

COFFIN, Circuit Judge.

Plaintiff-appellee Zaida Lydia De Choud-ens claims she was demoted from her government position on the basis of her political affiliation in violation of her first amendment rights. See Branti v. Finkel, 445 U.S. 507, 100 S.Ct. 1287, 63 L.Ed.2d 574 (1980); Elrod v. Burns, 427 U.S. 347, 96 S.Ct. 2673, 49 L.Ed.2d 547 (1976). In this companion case to Jimenez Fuentes v. Torres Gaztambide, 803 F.2d 1 (1st Cir.1986), we decide whether political affiliation was an appropriate requirement for plaintiffs position.

In both cases, federal district judges in the District of Puerto Rico had granted preliminary injunctions, requiring the reinstatement of the plaintiffs to their governmental positions.1 The plaintiffs, members of the Partido Nuevo Progresista (PNP), had been removed from their positions by officials from the Partido Popular Demo-crático (PPD), which won the November 1985 general election. In Jimenez Fuentes, we reversed the issuance of an injunction, concluding that the position at issue (regional director of a housing agency) resembled one where, because it involved policymaking, confidential, and spokesperson functions in an area responsive to a party’s governmental goals, political affiliation was an appropriate requirement. In this case, we affirm the district court’s grant of a preliminary injunction because, although the position at issue involves policymaking, the reposing of confidence, and communicating, we presently conclude that such functions are so remote from advancing or thwarting the agency’s partisan-responsive goals that political affiliation would not be considered an appropriate requirement.

I.

Plaintiff served in the Puerto Rico Government Development Bank (Bank) for over twenty years. She rose from the position of accountant through eight career-level positions to Senior Vice President of the Finance Area. She was one of the three vice presidents, serving under the President and Executive Vice President. After the new administration assumed power in January 1985, defendant-appellant Jose Ramon Oyóla2 was appointed president of the Bank. In April 1985, Oyóla notified plaintiff that she was being “separated” from her position of trust and reinstated to a career position.

II.

Defendants claim that the district court abused its discretion in finding that plaintiff had shown a likelihood of success on the merits. Although they do not concede that plaintiff was transferred for political reasons, they do not challenge that finding. They do challenge the district court’s findings that the plaintiff would not have been transferred but for her political affiliation, and that her position was not one for which [7]*7political affiliation was appropriate. We address these asserted errors in turn.

As in Jimenez Fuentes, we preface our discussion by noting that our standard of review is whether the issuance of the injunction constituted an abuse of discretion, id. at 3, and that our conclusions at this juncture are to be understood as statements as to probable outcomes, id. at 4.

A.

The first issue is whether the district court abused its discretion in ruling, pursuant to Mt. Healthy City School District Board of Education v. Doyle, 429 U.S. 274, 97 S.Ct. 568, 50 L.Ed.2d 471 (1974), that defendants failed to show that they would have demoted plaintiff notwithstanding her political affiliation. See Rosaly v. Ignacio, 593 F.2d 145, 149 (1st Cir.1979). Defendants on appeal face an uphill task because their sole witness was Oyóla, the new PPD president of the Bank. Although they introduced much documentary evidence, their Mt. Healthy defense rested upon Oyola’s credibility.

Oyóla stated that he demoted plaintiff because he deemed her incompetent, providing four reasons for his conclusion. First, she had “very bad” relations with the personnel she supervised, based on comments made by union officials. But Oyóla spoke of these comments in conclusory terms, and did not know the eventual outcome of the complaints against her. In fact, the few grievances carried to a conclusion largely, if not completely, vindicated plaintiff and the Bank. A union resolution censoring plaintiff may well have arisen from an institutional position taken by the Bank in its labor negotiations.

A second preferred reason was inadequate internal controls in the food stamp division, which made possible a substantial theft of food stamps by several employees who were later convicted. While some audit reports were critical of various Bank procedures, commendations later followed, and it was plaintiff herself who apparently instituted the lengthy investigation that lead to the apprehension of those responsible. Moreover, the district court might well have been skeptical of this reason in light of the fact that the official (a PPD member) in direct charge of the food stamp operation at the time of the thefts was assigned plaintiffs duties after her removal.

A third ground was plaintiffs alleged delinquence in failing to supply enough accounting personnel to service a high-risk private loan program. But evidence showed that plaintiff recognized the problem and obtained temporary outside help. Oyola’s fourth and final reason for demoting plaintiff was that she had failed to put into operation a computerized loan-administration system. Although the needed software had been acquired but was not in use, the court found that employees in a division outside the plaintiff’s area had not yet developed the files or technique to use it.

In addition to considering the conflicting evidence and inferences relating to the four proffered reasons for demoting plaintiff, the district court was entitled to take into account the following circumstances. Shortly after Oyóla took office, the new Secretary of Justice asked to see all files of employees in positions of confidence, including plaintiff’s.3 Subsequently, the Secretary reported his belief that all were indeed positions of confidence, removable at will. Notwithstanding this report, Oyóla stated that he removed the three Senior Vice Presidents because of their incompetence. He professed not to know that they were PNP members. Moreover, at no time during the two months preceding plaintiff’s demotion did Oyóla talk with her or her supervisors about her work or its shortcomings.

In short, we cannot fault the court for finding Oyóla not credible. And the various documents are not so clear and compelling as independently to make the case against plaintiff. We therefore find that the district court did not abuse its discre[8]*8tion in finding that plaintiff would not have been demoted “but for” her political affiliation.

B.

Defendants’ remaining basis for prevailing on this appeal is their argument that the district court abused its discretion in holding that defendants failed to meet their burden, under Elrod and Branti, of showing that political affiliation is an appropriate requirement for the position at issue.

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Bluebook (online)
801 F.2d 5, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zaida-lydia-de-choudens-v-the-government-development-bank-of-puerto-rico-ca1-1986.