Source: https://law.justia.com/cases/federal/appellate-courts/F2/796/1230/251986/
Timestamp: 2018-03-20 23:19:45
Document Index: 724351999

Matched Legal Cases: ['§ 4104', '§ 144', '§ 455', 'art 2', '§ 4106', 'art 4', '§ 4106', '§ 706']

John J. Franks, M.d., Plaintiff-appellant, v. Robert P. Nimmo, United States Veterans Administration, T.p.mullon, Mansell G. Piper, William S. Hammond,m.d., and Philip A. Varneck, Defendants-appellees, 796 F.2d 1230 (10th Cir. 1986) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Tenth Circuit › 1986 › John J. Franks, M.d., Plaintiff-appellant, v. Robert P. Nimmo, United States Veterans Administration...
John J. Franks, M.d., Plaintiff-appellant, v. Robert P. Nimmo, United States Veterans Administration, T.p.mullon, Mansell G. Piper, William S. Hammond,m.d., and Philip A. Varneck, Defendants-appellees, 796 F.2d 1230 (10th Cir. 1986)
US Court of Appeals for the Tenth Circuit - 796 F.2d 1230 (10th Cir. 1986)
This lawsuit was instituted after administrative separation proceedings had begun but before any decision had been reached. Dr. Franks obtained a preliminary injunction directing defendants to treat him as a non-probationary employee, which had the effect of halting the termination process until this court vacated the injunction. See Franks v. Nimmo, 683 F.2d 1290 (10th Cir. 1982). Although the relevant facts up to that point in the proceedings are set out in that opinion, we briefly repeat them here to help place subsequent events in context. We will discuss in detail facts relevant to specific issues on appeal when we address those issues individually.
At the time administrative action was taken regarding Dr. Franks' termination, he had served as full-time ACOS less than one year and defendants were then treating him as a probationary employee under the applicable statutes and regulations. The appointment of permanent full-time physicians is made pursuant to 38 U.S.C. § 4104 (1982) and is governed by section 4106, which provides:
Dr. Franks filed a motion to disqualify the trial judge under 28 U.S.C. §§ 144, 455(a), and 455(b) (1) (1982). In his supporting affidavit, Dr. Franks stated that during the July 23 hearing on the motion to stay his termination, the judge called counsel for both sides into his chambers, and then spoke with Dr. Franks alone. Dr. Franks further stated that the judge told him these matters never work out for a plaintiff unless they are settled, and that he ought to settle because the judge could not rule in his favor on the injunction issue. Dr. Franks stated his belief that the judge was biased, and that he had prejudged the case and created an appearance of impropriety.
Id. Sec. 144 (emphasis added). "By the terms of section 144, a district court judge must recuse himself in any proceeding upon the filing of a timely and sufficient affidavit of personal bias or prejudice, even if he has no actual personal bias or prejudice." United States v. Hines, 696 F.2d 722, 728 (10th Cir. 1982). In Hines we noted that "the timeliness of the affidavit must ... be judged by a standard of reasonableness in light of the given facts." Id. at 728 n. 8.
In evaluating the timeliness of a section 144 motion, "courts will often consider whether the affiant has participated in substantial pre-trial motions between the time he first learned of the asserted bias and the time he filed the Sec. 144 request." Smith v. Danyo, 585 F.2d 83, 86 (3d Cir. 1978). We find it significant that Dr. Franks filed an unsuccessful motion for partial summary judgment with the trial judge after the alleged bias had arisen. "The judicial process can hardly tolerate the practice of a litigant with knowledge of circumstances suggesting possible bias or prejudice holding back, while calling upon the court for hopefully favorable rulings, and then seeking recusal when they are not forthcoming." Id.
We also uphold the trial judge's refusal to disqualify himself under sections 455(a) and (b) (1). Those provisions state:
28 U.S.C. §§ 455(a), (b) (1). The effective scope of section 455 is broader than that of section 144, in part because it contains no express procedural hurdles. See Hines, 696 F.2d at 728.1
" [W]hile subsection (b) (1) requires recusal if the judge has actual personal bias or prejudice or extrajudicial knowledge of disputed evidentiary facts, subsection (a) requires recusal merely if the circumstances are such that the judge's 'impartiality might be reasonably questioned'.... Under section 455(a), the judge is under a continuing duty to ask himself what a reasonable person knowing all the relevant facts would think about his impartiality."
Id. (quoting United States v. Ritter, 540 F.2d 459, 462 (10th Cir.), cert. denied, 429 U.S. 951, 97 S. Ct. 370, 50 L. Ed. 2d 319 (1976)).
In this case, the district court stated that "no ordinary man in ordinary circumstances could have believed from our conversation, initiated at the behest of his attorney, and with the concurrence of the defendants' counsel, that I had acted in a manner either prejudicial or biased, prejudicial to or biased against him." Rec., vol. VIII, at 4. We agree with the judge that his attempts to encourage a settlement clearly beneficial to Dr. Franks do not give rise to an objective appearance of bias within the meaning of section 455(a). See, e.g., Johnson v. Trueblood, 629 F.2d 287, 291 (3d Cir. 1980), cert. denied, 450 U.S. 999, 101 S. Ct. 1704, 68 L. Ed. 2d 200 (1981). " [S]ection 455(a) must not be so broadly construed that it becomes, in effect, presumptive, so that recusal is mandated upon the merest unsubstantiated suggestion of personal bias or prejudice." Hines, 696 F.2d at 729. Moreover, in view of the court's concern on Dr. Franks' behalf, we find no record evidence of any actual bias against Dr. Franks within the ambit of section 455(b) (1).
When reviewing a grant of summary judgment, this court must examine the record to determine whether any genuine issue of material fact pertinent to the ruling remains and, if not, whether the substantive law was correctly applied. Western Casualty & Surety Co. v. National Union Fire Insurance Co., 677 F.2d 789, 791 n. 1 (10th Cir. 1982). Under Fed. R. Civ. P. 56, the movant must demonstrate beyond doubt that he is entitled to a favorable ruling. Madison v. Deseret Livestock Co., 574 F.2d 1027, 1037 (10th Cir. 1978). In making this evaluation, pleadings and documentary evidence are to be construed liberally in favor of the party opposing the motion. Harman v. Diversified Medical Investment Corp., 488 F.2d 111, 113 (10th Cir. 1973), cert. denied, 425 U.S. 951, 96 S. Ct. 1727, 48 L. Ed. 2d 195 (1976).
The district court concluded as a matter of law that the two-year probationary period of section 4106(b) applies to doctors who convert from temporary status under section 4114 to full-time status under section 4104. We agree. Section 4106(b) unequivocally requires all appointees under section 4104 to serve a probationary appointment, and makes no provision or exception for physicians who move from temporary to permanent appointment. Neither defendants nor the courts may create an exception at odds with an express statutory requirement. See, e.g., Ernst & Ernst v. Hochfelder, 425 U.S. 185, 212-14, 96 S. Ct. 1375, 1390-91, 47 L. Ed. 2d 668 (1976).
Rec., vol. XI, def. ex. G (Department of Medicine and Surgery's Supplement to the VA Manual of Procedures, Chapter 4, Para. 5 e, f, g) (emphasis added). However, these provisions apply only to time spent in a prior probationary period. Defendants could not by regulation exempt a section 4104 appointee from serving the probationary period mandated by section 4106(b). See Ernst & Ernst, 425 U.S. at 212-14, 96 S. Ct. at 1390-91. The record contains no evidence that Dr. Franks' prior service occurred during a probationary period within the meaning of the applicable regulations.
Dr. Franks also argues that defendants are estopped by their conduct from denying him nonprobationary status. The circumstances, if any, giving rise to estoppel against the Government have been a source of confusion. The Supreme Court has declined to hold that estoppel can never run against the Government. See Heckler v. Community Health Services, 467 U.S. 51, 60-61, 104 S. Ct. 2218, 2224, 81 L. Ed. 2d 42 (1984). In that case, the Court nevertheless restated the well settled rule that "the Government may not be estopped on the same terms as any other litigant," and concluded that "the private party surely cannot prevail without at least demonstrating that the traditional elements of an estoppel are present." Id. A plaintiff invoking estoppel against the Government must show at a minimum that he relied on the Government's misconduct in changing his position for the worse. Id. at 59-63, 104 S. Ct. at 2223-24; see also Lurch v. United States, 719 F.2d 333, 341 (10th Cir. 1983), cert. denied, 466 U.S. 927, 104 S. Ct. 1710, 80 L. Ed. 2d 182 (1984).
There is authority for the proposition that in determining whether a material issue of fact exists, an affidavit may not be disregarded because it conflicts with the affiant's prior sworn statements. See 10A C. Wright, A. Miller & M. Kane, Federal Practice & Procedure Sec. 2738, at 473-74 (2d ed. 1983); 6 (Part 2) J. Moore & J. Wicker, Moore's Federal Practice p 56.22, at 56-1325 to 56-1326 (1985 ed.). In assessing a conflict under these circumstances, however, courts will disregard a contrary affidavit when they conclude that it constitutes an attempt to create a sham fact issue. See, e.g., Foster v. Arcata Associates, Inc., 772 F.2d 1453, 1462 (9th Cir. 1985), cert. denied, --- U.S. ----, 106 S. Ct. 1267, 89 L. Ed. 2d 576 (1986); Biechele v. Cedar Point, Inc., 747 F.2d 209, 215 (6th Cir. 1984); Van T. Junkins & Associates, Inc. v. U.S. Industries, Inc., 736 F.2d 656, 657-58 (11th Cir. 1984); Camfield Tires, Inc. v. Michelin Tire Corp., 719 F.2d 1361, 1364 (8th Cir. 1983); Perma Research & Development Co. v. Singer Co., 410 F.2d 572, 578 (2d Cir. 1969). Underlying those decisions is the conclusion that the utility of summary judgment as a procedure for screening out sham fact issues would be greatly undermined if a party could create an issue of fact merely by submitting an affidavit contradicting his own prior testimony. Camfield Tires, 719 F.2d at 1365.
In his complaint, Dr. Franks sought damages for the alleged deprivation of his constitutional rights to due process and free speech.5 The district court pointed out that a federal employee such as Dr. Franks, who is provided administrative proceedings in which to challenge his removal, may be precluded under Bush v. Lucas, 462 U.S. 367, 103 S. Ct. 2404, 76 L. Ed. 2d 648 (1983), from bringing an implied constitutional cause of action for damages. The court then held that, even assuming Dr. Franks could bring such an action, defendants are entitled to qualified immunity under Harlow v. Fitzgerald, 457 U.S. 800, 102 S. Ct. 2727, 73 L. Ed. 2d 396 (1982).
We conclude that the implied cause of action Dr. Franks seeks to assert is barred by the rationale applied in Bush. There, a federal employee covered by the federal civil service statutes and regulations brought a nonstatutory damage action for violation of his First Amendment rights on the authority of Bivens v. Six Unknown Federal Narcotics Agents, 403 U.S. 388, 91 S. Ct. 1999, 29 L. Ed. 2d 619 (1971). The court in Bush recognized that under Bivens an implied cause of action may exist for the denial of constitutional rights by a federal defendant. However, the Court also pointed out that a Bivens action may be defeated either when special factors are present counseling hesitation in the absence of affirmative action by Congress or when Congress intends that an alternative remedy it has provided is exclusive. Bush, 462 U.S. at 377-78, 103 S. Ct. at 2411-12. The Court then concluded that the federal employee's attempt to recover damages from his superior for violation of his First Amendment rights involved two special factors counseling hesitation: the special nature of the government employment relationship, and the need to operate government facilities effectively. The Court observed that
" ' [t]he relations between the United States and its employees have presented a myriad of problems with which the Congress over the years has dealt.... Government employment gives rise to policy questions of great import, both to the employees and to the Executive and Legislative Branches.' ... The decision regarding indemnity involve [s] questions of employee discipline and morale, fiscal policy, and the efficiency of the federal service."
Id. at 379-80, 103 S. Ct. at 2412 (quoting United States v. Gilman, 347 U.S. 507, 509, 74 S. Ct. 695, 696, 98 L. Ed. 898 (1954)). Those factors are present in the instant case. See Heaney v. United States Veterans Administration, 756 F.2d 1215, 1220-21 (5th Cir. 1985).
The Court in Bush concluded that, given the above policy considerations, the existence of an administrative remedy providing some measure of relief from adverse employment decisions constituted an additional special factor which, when considered with the others, precluded judicial creation of a nonstatutory remedy. See Heaney, 756 F.2d at 1220. The procedures available to the civil servant plaintiff in Bush were determined to be adequate even though they were not an equally effective substitute for an implied damage remedy. In finding the existing remedy meaningful, the Court emphasized that an employee could present constitutional claims arising from the adverse personnel decision, receive judicial review of the administrative proceedings, and obtain retroactive reinstatement and back pay. See Bush, 462 U.S. at 385-86 & n. 29, 103 S. Ct. at 2414-15 & n. 29.
After reviewing the procedures available to an employee in the competitive civil service system, the Court weighed "respective costs and benefits that would result from the addition of another remedy for violations of employees' First Amendment rights." Id. at 388, 103 S. Ct. at 2417. The Court pointed out that " [t]he costs associated with the review of disciplinary decisions are already significant--not only in monetary terms, but also in the time and energy of managerial personnel who must defend their decisions." Id. The Court then concluded that any new constitutional remedy should be created by Congress and not the courts, because
Id. at 389, 103 S. Ct. at 2417. Those considerations are equally applicable here. See Heaney, 756 F.2d at 1219.
Dr. Franks argues that the rationale in Bush should not apply in this case because he is not a civil service employee and does not have the comprehensive administrative review rights of such employees. This argument was presented by a VA physician and rejected in Heaney. It is true that employees of the Department of Medicine and Surgery are not protected by the same provisions available to the plaintiff in Bush. See, e.g., 38 U.S.C. §§ 4106(a), 4106(d), 4119. Nonetheless, we agree with the court in Heaney that this argument is unpersuasive in view of the administrative procedures that Congress has provided to these employees, and the Court's conclusion in Bush that the administrative remedy need not fully compensate the employee to be exclusive.
Under the authority of section 4106(b), each employee serving a probationary period receives peer review of his record by a Professional Standards Board (PSB) made up of physicians. See Rec., vol. XI, def. ex. G (Department of Medicine and Surgery's Supplement to the VA Manual of Procedures, Chapter 4, Part 4). The statute provides for removal "if said board shall find him not fully qualified and satisfactory...." 38 U.S.C. § 4106(b). If the peer review reveals evidence that the employee's performance is not satisfactory, he is notified in writing of the reasons for review and of his right to appear personally before the PSB or to submit a written statement on his own behalf. Id. Here Dr. Franks was given an opportunity to respond to the site visit team report and to appear before the PSB. The adverse decision of the PSB was then reviewed and approved by a second board of physicians before it was submitted to the appropriate supervising official. It is undisputed that the members of the two peer review boards were physicians drawn from outside the VAMC who had no connection with the controversy there.
A probationary VA physician who is separated from service under section 4106(b) may obtain judicial review of the administrative decision. See, e.g., Giordano v. Roudebush, 617 F.2d 511 (8th Cir. 1980); see also Heaney, 756 F.2d at 1219 (physician discharged under 38 U.S.C. 4110 entitled to judicial review). Such an administrative decision is a final agency action which may be appealed to a federal court pursuant to the Administrative Procedure Act. Under the Act, the administrative decision may be set aside if it is arbitrary or capricious, 5 U.S.C. § 706(2) (A) (1982), or unconstitutional, id. Sec. 706(2) (B); Stretton v. Wadsworth Veterans Hospital, 537 F.2d 361, 369 n. 19 (9th Cir. 1976). A physician who has been wrongfully discharged may obtain judicial relief in the form of reinstatement and back pay. See Giordano, 617 F.2d at 514-15. Thus this is not, as Dr. Franks alleges, a case of damages for the constitutional tort or nothing at all. In addition, the court has power to grant interim equitable relief such as Dr. Franks obtained in the instant case. See, e.g., Stretton, 537 F.2d at 369. As in Bush, a plaintiff such as Dr. Franks has a forum in which to present constitutional claims, may receive judicial review of the administrative proceedings, and may obtain meaningful relief in the form of reinstatement and back pay.
Moreover, the legislative history of the procedures at issue here indicates that in removing permanent appointments under section 4104 from civil service requirements, Congress intended " 'to free the Veterans Administration from some of the shackles that now, we think, act as an impediment and deterrent to the best medical service.' " Kenneth v. Schmoll, 482 F.2d 90, 95 (10th Cir. 1973) (quoting 91 Cong.Rec. 11658 (1945)). In so doing Congress clearly intended to provide a summary process by which unqualified physicians previously protected by civil service could be expeditiously separated from service. See Heaney, 756 F.2d at 1218-19; Orloff v. Cleland, 708 F.2d 372, 376-77 (9th Cir. 1983); Giordano, 617 F.2d at 517 & n. 9; Stretten, 537 F.2d at 368. Allowing the additional remedy of an implied cause of action would thus thwart the express Congressional intent that probationary employees be subject to separation after summary review.
Dr. Franks argues that the district court's consideration of the preliminary injunction transcript in granting summary judgment was improper. This argument is patently frivolous. The federal rules provide that "any evidence received upon an application for a preliminary injunction which would be admissible upon the trial on the merits becomes part of the record on the trial...." Fed. R. Civ. P. 65(a) (2). Rule 56(e) provides that summary judgment motions may be supported by affidavits supplemented with depositions. Dr. Franks' sworn testimony, subjected to cross-examination, clearly falls within the scope of Rule 56
Dr. Franks asserts that the district court improperly denied his request to amend his complaint a third time. Denial of leave to amend under Fed. R. Civ. P. 15(a) is committed to the trial court's discretion. See State Distrib., Inc. v. Glenmore Distilleries Co., 738 F.2d 405, 416 (10th Cir. 1984). We find no abuse here. To the extent that Dr. Franks sought to add claims for fraud and misrepresentation, based on alleged statements made regarding his nonprobationary status, our holding that he failed to raise a fact issue regarding those statements is dispositive. To the extent that Dr. Franks wanted to add new claims and new parties, his motion, made two years after the case was filed and after discovery had been completed and partial summary judgment granted, was untimely. See id.; see also Brown-Marx Assoc., Ltd. v. Emigrant Sav. Bank, 703 F.2d 1361, 1371 (11th Cir. 1983)
Dr. Franks also asserted common law claims against defendants Piper, Hammond, and Varneck individually for outrageous conduct inflicting severe emotional and physical distress. The district court ruled that defendants were absolutely immune under Barr v. Matteo, 360 U.S. 564, 79 S. Ct. 1335, 3 L. Ed. 2d 1434 (1959). Dr. Franks has not contested this ruling on appeal