Source: https://law.justia.com/cases/federal/appellate-courts/F2/708/372/330326/
Timestamp: 2017-10-18 13:15:39
Document Index: 256667773

Matched Legal Cases: ['§ 7513', '§ 2108', '§ 4114', '§ 5101', '§ 3301', '§ 4114', '§ 7512', '§ 7513', '§ 4110', '§ 4104', '§ 4114', '§ 4114', '§ 1302', '§ 7504']

Marshall J. Orloff, M.d., Plaintiff-appellant, v. Max Cleland, As Administrator, of the Veteransadministration, et al., Defendants-appellees, 708 F.2d 372 (9th Cir. 1983) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Ninth Circuit › 1983 › Marshall J. Orloff, M.d., Plaintiff-appellant, v. Max Cleland, As Administrator, of the Veteransadmi...
Marshall J. Orloff, M.d., Plaintiff-appellant, v. Max Cleland, As Administrator, of the Veteransadministration, et al., Defendants-appellees, 708 F.2d 372 (9th Cir. 1983)
U.S. Court of Appeals for the Ninth Circuit - 708 F.2d 372 (9th Cir. 1983)
Argued and Submitted Dec. 9, 1981. Decided April 25, 1983
Summary judgment is proper only when, viewing the evidence in the light most favorable to the nonmoving party, there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56; Hutchinson v. United States, 677 F.2d 1322, 1325 (9th Cir. 1982).
Orloff argues that the manner of his termination violated the procedural protections of the Veterans' Preference Act. See 5 U.S.C. § 7513.1 Orloff is a veteran and would ordinarily be entitled to the protections of the Act. 5 U.S.C. §§ 2108(1) (A) and 2108(3) (A). The VA argues that these procedural requirements do not apply because the Administrator appointed Orloff pursuant to a statute authorizing the employment of part-time physicians "without regard to civil service or classification laws." 38 U.S.C. § 4114(a) (1). We agree with the VA. The plain language of the statute states that civil service laws shall not apply to part-time physicians employed by the VA and the Veterans Preference Act falls within the category of "civil service laws."2
Orloff argues that Congress meant the phrase "civil service laws" in the statute to mean the "classification" laws.3 See 5 U.S.C. §§ 5101 et seq. and 5331 et seq. But the plain meaning of the term "civil service" laws would encompass a scope of laws broader than just the classification laws. See, e.g., 5 U.S.C. § 3301 et seq. If Orloff's interpretation had been Congress's meaning, it is inexplicable why they would use the phrase "civil service or classification laws" if they thought the terms were equivalent. See Tabor v. Ulloa, 323 F.2d 823, 824 (9th Cir. 1963) (Congress, in enactment of statute, is presumed to have used no superfluous words).4
Nevertheless, Orloff argues that his interpretation is supported by the legislative history of the Act. See Heppner v. Alyeska Pipeline Service Co., 665 F.2d 868 (9th Cir. 1981) (discussion of the appropriateness of considering legislative history in interpretation of facially clear statute). The legislative history indicates that, when Sec. 4114 was enacted in 1946, the quality of health care provided by VA doctors concerned Congress. 91 Cong.Rec. 11656-65 (1945). It is true, as Orloff argues, that when Congress amended the statute in 1962 to include the phrase "civil service laws," it intended to give the VA authority to hire additional personnel on a fee-basis in order to obtain the services of qualified personnel without the constraints of the classification laws, which require equal pay for performances of similar jobs in the federal government. See 1962 U.S.Code Cong. & Admin.News 2101-03. Congress in adopting Sec. 4114 also wanted to give the Administrator authority to employ or discharge doctors without the usual time-consuming and detailed civil service procedures. 91 Cong.Rec. 111656-65. This purpose is consistent with a Congressional desire to free the Administrator of the procedural requirements of such statutes as the Veterans' Preference Act. It allows the Administrator to obtain more easily the services of highly qualified personnel and to release more easily unsatisfactory personnel. See Heppner, 665 F.2d at 871-72 ("When the statutory language together with the legislative history makes one interpretation overwhelmingly more plausible than a second interpretation, there is no necessity that the legislative history explicitly rule out the second interpretation").
Finally, we note that the regulations promulgated by the Office of Personnel Management (and formerly by the Civil Service Commission) make this exclusion of the Veterans Preference Act even more explicit by listing the Act as one of the various statutes which does not apply to appointments made pursuant to Sec. 4114(a). See 5 C.F.R. Sec. 752.401(c) (14).5 See also 5 C.F.R. Sec. 212.101(b). In reviewing the administrative interpretation given a statute by the enforcing agency, the agency interpretation is entitled to deference. See Udall v. Tallman, 380 U.S. 1, 16, 85 S. Ct. 792, 801, 13 L. Ed. 2d 616 (1965); Faulkner v. Watt, 661 F.2d 809 (9th Cir. 1981). We conclude that the procedural protections of the Veterans' Preference Act do not apply to part-time physicians, such as Orloff, hired by the VA under the authority of 38 U.S.C. § 4114(a).
The threshold inquiry we must make is whether the VA's actions deprived Orloff of an interest in property or liberty. Board of Regents v. Roth, 408 U.S. 564, 92 S. Ct. 2701, 33 L. Ed. 2d 548 (1972).
To have a property interest in a governmental benefit, including employment, an individual must have an entitlement to the benefit. Id. at 577, 92 S. Ct. at 2709. Entitlements are created by "rules or understandings" from independent sources, such as statutes, regulations, and ordinances, or express or implied contracts. Id.; Perry v. Sindermann, 408 U.S. 593, 92 S. Ct. 2694, 33 L. Ed. 2d 570 (1972).
An entitlement may spring from an understanding if the understanding is "mutually explicit." Board of Regents v. Roth, 408 U.S. at 577, 92 S. Ct. at 2709. Orloff argues that the nature of his employment relationship with the VA and his twenty years of service created such an understanding. See Stretten v. Wadsworth Veterans Hospital, 537 F.2d at 361, 367 (9th Cir. 1976). The VA argues that because Orloff worked past the initial expiration date of his appointment, October 15, 1978, any property interest in that appointment expired and Orloff had no legitimate expectation of a continued appointment sufficient to amount to a property interest. We reject this contention. Despite the apparent expiration date of Orloff's contract there may have arisen an understanding of continued employment based on prior treatment of Orloff or other VA employees sufficient to constitute a de facto property interest under Perry v. Sindermann, 408 U.S. at 593, 92 S. Ct. at 2694. Furthermore, after the VA initially terminated Orloff on July 3, 1978, it twice postponed his termination, and the final termination occurred after the VA had extended his appointment. A property interest may have been created by: (1) the appointment initially terminated in July, despite the fact that the VA did not implement the termination decision until November; or (2) the indefinite extension of Orloff's appointment after the initial termination decision. There remain material factual disputes concerning whether a "mutually explicit" understanding arose. That question must be resolved by the district court on remand.
Orloff also argues that the public disclosure of the VA's charges against him infringed a constitutionally protected liberty interest. The Supreme Court has recognized that a liberty interest is implicated where "a person's good name, reputation, honor or integrity is at stake." Board of Regents v. Roth, 408 U.S. at 573, 92 S. Ct. at 2707. This court has stated:
Stretten v. Wadsworth Veterans Hospital, 537 F.2d at 366. Thus, when the government dismisses an individual for reasons that might seriously damage his standing in the community, he may be entitled to notice and a hearing. Board of Regents v. Roth, 408 U.S. at 573 n. 12, 92 S. Ct. at 2707 n. 12. The accusations, however, must be publicized. See Bollow v. Federal Reserve Bank, 650 F.2d 1093, 1101 (9th Cir. 1981), cert. denied, 455 U.S. 948, 102 S. Ct. 1449, 71 L. Ed. 2d 662 (1982). Moreover, the accuracy of the charges must be contested. Vanelli v. Reynolds School District No. 7, 667 F.2d 773, 777 (9th Cir. 1982).
Charges of "moral turpitude" such as dishonesty or immorality are sufficient to implicate a liberty interest. See id.; Stretten v. Wadsworth Veterans Hospital, 537 F.2d at 365-66; Gray v. Union County Intermediate Education District, 520 F.2d 803, 806 (9th Cir. 1975). See also Board of Regents v. Roth, 408 U.S. at 573, 92 S. Ct. at 2707. The charges made by the VA against Orloff rise to this level. Orloff implicitly and explicitly disputes these charges of wrongdoing levelled at him by the VA. Material issues of fact remain concerning whether the VA publicized the reasons for Orloff's discharge.6 On the record before us, it is not possible to affirm the grant of summary judgment on this issue.
Orloff also contends that the VA's unilateral deduction of money from his final paycheck, without any hearing, apparently based on the VA's belief that Orloff did not earn the money, violated procedural due process. It is obvious that Orloff had a property interest in his salary. See Sniadach v. Family Finance Corp., 395 U.S. 337, 342, 89 S. Ct. 1820, 1823, 23 L. Ed. 2d 349 (1969).
Due process is a flexible concept and its procedural requirements vary depending upon the particular deprivation. See Morrissey v. Brewer, 408 U.S. 471, 481, 92 S. Ct. 2593, 2600, 33 L. Ed. 2d 484 (1972). The determination of what procedures satisfy due process depends upon an analysis of the particular case in accordance with the three-part balancing test outlined in Mathews v. Eldridge, 424 U.S. 319, 96 S. Ct. 893, 47 L. Ed. 2d 18 (1976). The factors that must be considered are: (1) the private interest that will be affected; (2) the risk of an erroneous deprivation of that interest through the procedure used; (3) the fiscal and administrative burdens that any additional procedural requirements would entail. Id. at 335, 96 S. Ct. at 903. On the record before us, application of these principles to Orloff's situation does not compel the conclusion that the procedures employed by the VA to terminate Orloff comported with due process.
First, there is a strong presumption that a public employee is entitled to notice and an opportunity to be heard before being deprived of a liberty or property interest. Vanelli v. Reynolds School District No. 7, 667 F.2d at 778. There is no allegation or indication in the record that Orloff's continued presence at the Veterans Hospital constituted a threat to the welfare of patients or the smooth operation of the hospital. Cf. Stretten v. Wadsworth Hospital, 537 F.2d 361, 368-69 (9th Cir. 1976) (charge of incompetence and inability to cooperate with other personnel). Moreover, the risk of an erroneous deprivation is substantial if Orloff is not given an opportunity to respond to the charges and confront the evidence before the termination. The balance between the fiscal burden on the government of continuing Orloff's employment pending a hearing and Orloff's monetary loss and potential damage to his reputation may weigh in favor of a pretermination hearing. See Mathews v. Eldridge, 424 U.S. 319, 96 S. Ct. 893, 47 L. Ed. 2d 18. On the record before us, we cannot agree that a post-termination hearing is clearly sufficient.
Even were we to assume that a post-termination hearing would suffice, there remain factual disputes concerning whether the VA accorded Orloff any hearing at all. We note that the initial notice of termination stated specifically that he had no appeal within the VA. It is unclear, even after the VA extended the termination date, whether the VA actually reviewed the merits of the termination decision or merely assured itself that its own procedural requirements, if any, had been followed. There is no indication in the record that Orloff was invited to submit evidence, even in the form of affidavits, on his behalf or to examine the evidence against him. Cf. Ong v. Tovey, 552 F.2d 305, 308 (9th Cir. 1977) (meetings held by the Public Health Service satisfied due process requirement that the decision-maker have enough data before him that his decision to terminate is not arbitrary, capricious, or unfair). Moreover, although due process does not always require a full adversary hearing, see Heath v. Redbud Hospital District, 620 F.2d 207, 212 (9th Cir. 1980), it is unclear without first determining the nature of Orloff's property or liberty interest whether such a hearing would be warranted in these circumstances, or to what extent various procedural safeguards, e.g., the right to confront and cross-examine witnesses, should be sacrificed.
The central meaning of procedural due process is that parties whose rights are to be affected are entitled to be heard at a meaningful time and in a meaningful manner. Vanelli, 667 F.2d at 779-80; Fuentes v. Shevin, 407 U.S. 67, 92 S. Ct. 1983, 32 L. Ed. 2d 556 (1972). On the record before this court, it is impossible to determine whether the VA afforded Orloff a meaningful opportunity to be heard in response to the charges made against him.
With regard to the deductions from Orloff's salary made by the VA, the district court must also balance the relevant interests to determine the appropriate procedural protections that Orloff should be afforded. See Sniadach v. Family Finance Corp., 395 U.S. 337, 89 S. Ct. 1820, 23 L. Ed. 2d 349; Mathews v. Eldridge, 424 U.S. 319, 96 S. Ct. 893, 47 L. Ed. 2d 18; Elliott v. Weinberger, 564 F.2d 1219, 1230 (9th Cir. 1977), aff'd in part and rev'd in part on other grounds sub nom. Califano v. Yamasaki, 442 U.S. 682, 99 S. Ct. 2545, 61 L. Ed. 2d 176 (1979). The VA has unilaterally determined that Orloff breached his employment agreement and awarded itself judgment. From the record, it does not appear that the VA provided Orloff with either a prior or a post-termination hearing on this issue.
At the time of his discharge, these protections included at least thirty days advance written notice stating the reasons for the proposed personnel action, a reasonable time for answering the notice and for furnishing affidavits in support of the answer, and notice of an adverse decision. 5 U.S.C. § 7512(a). The Civil Service Reform Act of 1978, Pub. L. No. 95-454, Title II, Sec. 204(a), 92 Stat. 1136, became effective January 13, 1979, and it modified the procedural protections of a preference eligible employee. See 5 U.S.C. § 7513
The adverse action procedure for the Department of Medicine and Surgery is set forth in 38 U.S.C. § 4110. These procedural rights are applicable only to physicians appointed under the authority of 38 U.S.C. § 4104(1). They do not apply to part-time appointments, such as Orloff's, under Sec. 4114(a) (1). See Stretten v. Wadsworth Veterans Hospital, 537 F.2d 361, 363-65 (9th Cir. 1976)
In 1946, when Congress established the Department of Medicine and Surgery in the VA, the statute authorized the appointment of part-time physicians "without regard to the Classification Act of 1949." Congress amended the statute in 1962 to provide that part-time physicians could be employed "without regard to civil service or classification laws." 38 U.S.C. § 4114
Orloff also argues that the use of both terms is inconsistent. He begins with the premise that "civil service" laws are all those laws codified in Title 5. He then argues that it was redundant for Congress to include the phrase "classification laws," in Sec. 4114 because it is also codified in Title 5. Moreover, he argues that several statutes codified in Title 5 have been applied to persons appointed pursuant to 38 U.S.C. § 4114(a)
The Civil Service Commission formerly had authority to prescribe and enforce regulations for the administration of the Veterans' Preference Act. This authority is now vested in the Office of Personnel Management, see 5 U.S.C. § 1302, which also has the authority to prescribe regulations pertaining to the adverse action procedures applicable to preference eligibles. See 5 U.S.C. § 7504