Opinion ID: 586964
Heading Depth: 2
Heading Rank: 1

Heading: Packett

Text: 7 Packett first asserts that issues of material fact exist. The only conflicting evidence in the case involves the historical policies and customs of the Attorney General's office. This conflict is irrelevant to our holding. Because we find that Stenberg was entitled to rescind the personnel policies, the prior policies are of no consequence to resolution of the case. 8 Packett next asserts a property interest in continued employment. To have a property interest in employment a person must have a legitimate claim of entitlement. Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 2709, 33 L.Ed.2d 548 (1972). The existence of a property interest must be determined with reference to state law. Weeks v. State Bd. of Educ., 204 Neb. 659, 663, 284 N.W.2d 843 (1979). Typically, this interest arises from statutory or contractual limitations on the employer's ability to terminate an employee. Blankenbaker v. McCook Pub. Power Dist., 940 F.2d 384, 385 (8th Cir.1991). A property interest in employment can also be created by implied contract, arising out of customs, practices and de facto policies. Perry v. Sindermann, 408 U.S. 593, 601-02, 92 S.Ct. 2694, 2699-700, 33 L.Ed.2d 570 (1972). When such a property interest exists, the employee is entitled to a hearing or some related form of due process prior to termination. Cleveland Bd. of Educ. v. Loudermill, 470 U.S. 532, 542, 105 S.Ct. 1487, 1493, 84 L.Ed.2d 494 (1985). Packett claims that his protected property interest arises both from the written personnel handbook and the customs of the Attorney General's office. 9 There is no dispute that Packett had no written contract of employment with the Attorney General's office and that any policies, rules or regulations contained in the handbook or implied contractual terms created by virtue of customs of the Attorney General's office were expressly rescinded when Stenberg took office. The issue, then, is whether Stenberg and the State of Nebraska are bound by any agreements between Stenberg's predecessor and his employees so as to give the employees a protected property interest in continued employment. We find that the United States Constitution and the Constitution and statutes of Nebraska support Stenberg's right to terminate at will. 10 State employees in Nebraska are arguably granted a property interest in their employment by the state personnel system, Neb.Rev.Stat. § 81-1301, et seq. (Reissue 1987) (setting forth procedures for selection, compensation, grievances, etc. of state employees). See Hill v. Gerber, 217 Neb. 670, 673, 350 N.W.2d 545 (1984) (impliedly recognizing a property interest in public employment under the Nebraska Merit System). All personnel of the office of the Attorney General, however, are exempted from the state personnel system. Neb.Rev.Stat. § 81-1316(1)(e) (Reissue 1987). Moreover, the Nebraska Constitution provides that the heads of the various executive or civil departments shall have power to appoint and remove all subordinate employees in their respective departments. Neb. Const. art. IV, § 1. 11 The apparent import and rationale of the Constitution and statutes is to allow certain elected officials to recruit, hire and supervise critical policymaking personnel without restrictions. See e.g., Neb.Rev.Stat. § 81-1316(2) (providing for a number of noncovered positions in each government department). Because limitations on an Attorney General's right to terminate at will are not authorized by Nebraska law, a successor Attorney General and the State of Nebraska cannot be bound by any rules, regulations, or customs of a former Attorney General to that effect. 2 Accordingly, such policies, if valid at all, cannot extend beyond the former Attorney General's term of office. Merely because some prior officeholder has maintained the customs of a predecessor does not make such acts mandatory. We find that Stenberg had legal authority to hire and fire personnel and correspondingly, to revoke any personnel policies of an earlier vintage. To hold otherwise would prevent an incoming elected official from assembling a work-force able to willingly carry out his mandates and could deny a newly elected official the opportunity to assess the competence and loyalty of his underlings. 12 Packett argues that since he was appointed prior to the enactment of the statutory exemption to the state personnel scheme, he acquired a property interest which cannot now be taken away without due process. Packett commenced employment with the Attorney General's office in 1959. The statute creating the state personnel system was enacted in 1967. 1967 Neb. Laws 1885. At that time, only the Governor, the Attorney General and several other executive officers were exempted from its coverage. Id. at 1896-97. The statute was amended in 1969 to exempt the office personnel of those executive officers. 1969 Neb. Laws 3025. Consequently, Packett was covered by the personnel system for 2 years. He argues that he was thus grandfathered in before the enactment of the exemption. 13 Packett's contention is without merit. A property interest in continued employment is in the nature of a statutory entitlement. See, e.g., Atkins v. Parker, 472 U.S. 115, 128, 105 S.Ct. 2520, 2528, 86 L.Ed.2d 81 (1985) (holding food stamp benefits are property protected by the Due Process Clause). The legislature that creates a statutory entitlement (or other property interest) is not precluded from altering or terminating the entitlement by a later enactment. Gattis v. Gravett, 806 F.2d 778, 780 (8th Cir.1986). While the legislative alteration or elimination of a previously conferred property interest may be a deprivation, the legislative process itself provides citizens with all the process they are due. Id. at 781. Thus, the legislature which creates a property interest may rescind it, whether the legislative body is federal or state and whether the interest is an entitlement to economic benefits, a statutory cause of action or civil service job protections. Id. Accordingly, Packett's property interest, if it ever existed, was extinguished by the enactment of the statutory exemption in 1969. 14 Packett next asserts that the district court erred in granting qualified immunity to Stenberg. Because we find no constitutional infringement, we need not address the issue. The assertion of a violation of a constitutional right is a threshold issue. See Siegert v. Gilley, --- U.S. ----, ----, 111 S.Ct. 1789, 1793, 114 L.Ed.2d 277 (1991); Cross v. City of Des Moines, 965 F.2d 629, 631 (8th Cir.1992) (a court must first determine whether the plaintiff has asserted the violation of a constitutional right). 15 Packett finally asserts that the district court erred in refusing to certify issues to the Nebraska Supreme Court. This is a matter addressed to the discretion of the district court. Lehman Bros. v. Schein, 416 U.S. 386, 391, 94 S.Ct. 1741, 1744, 40 L.Ed.2d 215 (1974). We find no abuse of discretion here.