Opinion ID: 2977346
Heading Depth: 2
Heading Rank: 2

Heading: Due-Process Property Claim

Text: To prevail on the claim that he was unconstitutionally deprived of his property when his Graduate Faculty status was suspended, Gunasekera must “‘establish three elements; (1) that [he] ha[s] a life, liberty, or property interest protected by the Due Process Clause of the Fourteenth Amendment . . . , (2) that [he] w[as] deprived of this protected interest within the meaning of the Due Process Clause, and (3) that the state did not afford [him] adequate procedural rights prior to depriving [him] of [his] protected interest.’” Med Corp. v. City of Lima, 296 F.3d 404, 409 (6th Cir. 2002) (quoting Hahn v. Star Bank, 190 F. 3d 708, 716 (6th Cir. 1999), cert. denied, 529 U.S. 1020 (2000)). No. 07-4303 Gunasekera v. Irwin et al. Page 7 Gunasekera has alleged that he has a property interest in his Graduate Faculty status protected by the Due Process Clause. On appeal, Gunasekera argues that his “property interest arises from a combination of Kentucky Department of Corrections v. Thompson, 490 U.S. 454, 463 (1989), where rules established ‘specific substantive predicates to limit discretion,’ with Perry v. Sindermann, 408 U.S. 593, 601 (1972), where ‘mutually explicit understandings’ created a property interest.” Gunasekera Br. at 28. He alleges that Graduate Faculty status is “a right intrinsic” that a professor maintains so long as he or she satisfies the four criteria the University requires of its Graduate Faculty.2 Id. He argues that because these criteria limit the University’s discretion to name Graduate Faculty and because “[i]n actual practice . . . professors retain their appointment so long as they satisfy those criteria,” he has a property interest in his Graduate Faculty status. Id. Gunasekera suggests that, per University custom, professors enjoy Graduate Faculty status so long as they meet the four criteria. J.A. at 9-10, 13 (Compl. ¶¶ 43-46, 68). In the context of university employment, the Supreme Court has held that “rules and understandings, promulgated and fostered by state officials” can form the foundation of a protected property interest. Perry, 408 U.S. at 602-03. Similarly, we have held that an employer’s custom and practice can form the basis for a protected property interest. Christian v. Belcher, 888 F.2d 410, 417 (6th Cir. 1989). The district court rejected Gunasekera’s custom-based argument on the grounds that Perry involved university guidelines that explicitly restrained discretion, unlike the criteria for Graduate Faculty status. See Town of Castle Rock v. Gonzales, 545 U.S. 748, 756 (2005) (“[A] benefit is not a protected entitlement if government officials may grant or deny it in their 2 As presented in Gunasekera’s complaint, these criteria are: a. Ph.D. in an appropriate engineering field or related area; b. Group I faculty status at Ohio University; c. having taught at least one year of advanced undergraduate or graduate-level courses within the five years immediately preceding nomination for appointment; and d. having demonstrated currency in the nominee’s field of specialization through publication of at least five technical/professional journal or refereed conference papers, textbooks, or monographs within the five years immediately preceding nomination for appointment; or having served as Principle [sic] or Co-Principle [sic] investigator on externally funded activities. J.A. at 9 (Compl. ¶ 43). The district court stated, and Irwin and Krendl did not dispute, that Gunasekera “currently meets the criteria, as he did at the time of his suspension.” Id. No. 07-4303 Gunasekera v. Irwin et al. Page 8 discretion.”); see also Richardson v. Twp. of Brady, 218 F.3d 508, 517 (6th Cir. 2000) (“[Plaintiff] can have no legitimate claim of entitlement to a discretionary decision.”). However, as in Perry, Gunasekera’s argument does not turn on the language of the regulations, but rather on his ability to show that a common practice and understanding had developed which gave him a legitimate claim to Graduate Faculty status so long as he met the stated conditions. At oral argument, the University admitted that there is no precedent regarding when Graduate Faculty status is retained, because it has never been revoked or suspended. Viewing the allegations in the complaint in the light most favorable to Gunasekera, we believe that he has alleged that University custom gives him a property interest in his Graduate Faculty status. See Bell Atl. Corp. v. Twombly, 127 S. Ct. at 1968-69; Christian, 888 F.2d at 417 (holding that “custom and practice” could give an employee a protected property interest where there were allegations that the employer had never terminated an employee in violation of this custom). In dismissing Gunasekera’s property-interest claim, the district court asserted that any losses Gunasekera suffered were incidental to his suspension and that his suspension did not alter his employment enough to make Graduate Faculty status a property interest. The district court cited Jackson v. City of Columbus, 194 F.3d 737 (6th Cir. 1999), a case in which this court held that there was no deprivation of property when a city suspended its police chief with pay while it investigated allegations of misconduct. However, Jackson held that the police chief had not been deprived of a property interest because he “was neither terminated nor lost any pay or benefits.” Id. at 749 (emphasis added). Gunasekera’s complaint alleges that he lost both pay (including “a summer salary research stipend that complements annual salary” for Graduate Faculty) and benefits (such as a reduced teaching load). J.A. at 10 (Compl. ¶¶ 49-50); see Ridpath v. Bd. of Governors Marshall Univ., 447 F.3d 292, 310 (4th Cir. 2006) (finding an unwanted job transfer to be “a significant demotion to a position outside [plaintiff’s] chosen field . . . tantamount to an outright discharge”); Newman v. Commonwealth, 884 F.2d 19, 25 n.6 (1st Cir. 1989) (“In this case, plaintiff was barred from voting on degrees and from serving on important university committees or as chair of her department. A letter of censure for an act of ‘objective plagiarism’ and ‘seriously negligent scholarship’ was No. 07-4303 Gunasekera v. Irwin et al. Page 9 placed in her permanent file, an action that undoubtedly affects her ability to secure other employment in the future. We think it obvious that this severe sanction substantially damaged plaintiff’s property interest in her position.” (emphasis added)). Viewing the allegations in the complaint the light most favorable to Gunasekera, we believe that his extensive documentation of the ways in which this suspension affects his career suffices to allege that his suspension is a deprivation of property. J.A. at 10-12 (Compl. ¶¶ 47-66). To survive this motion to dismiss, Gunasekera must also allege that Irwin and Krendl deprived him of his property interest without due process. Gunasekera asserts that he was not given notice or an opportunity to be heard regarding “his satisfaction of the criteria for appointment to Graduate Faculty status” before or after his suspension. J.A. at 8-9 (Compl. ¶¶ 38-39); see Flaim v. Med. Coll. of Ohio, 418 F.3d 629, 635 (6th Cir. 2005) (“Notice and an opportunity to be heard remain the most basic requirements of due process.” (emphasis added)). At oral argument, Irwin and Krendl’s lawyer conceded that Gunasekera had not been offered either a pre- or a post-deprivation hearing. “[W]e have held that prior to termination of a public employee who has a property interest in his employment, the due process clause requires that the employee be given ‘oral or written notice of the charges against him or her, an explanation of the employer’s evidence, and an opportunity to present his or her side of the story to the employer.’” Farhat v. Jopke, 370 F.3d 580, 595 (6th Cir. 2004) (quoting Bruckner v. City of Highland Park, 901 F.2d 491, 494 (6th Cir.), cert. denied, 498 U.S. 848 (1990)). Because Gunasekera asserts that he was never given any opportunity to be heard either before or after he was deprived of his property interest in his Graduate Faculty status, the district court’s dismissal of Gunasekera’s property-interest claim must be reversed.