Opinion ID: 793140
Heading Depth: 3
Heading Rank: 1

Heading: issues

Text: 23 In a section 1983 action, the preclusive effect of state administrative findings is governed by New York law. Kosakow v. New Rochelle Radiology Assoc., 274 F.3d 706, 728 (2d Cir.2001). Under New York law, a prior decision has preclusive effect as to any issue that ( inter alia ) both (1) was necessarily decided in the first action, and (2) is decisive in the later action. See Jeffreys v. Griffin, 1 N.Y.3d 34, 39, 769 N.Y.S.2d 184, 801 N.E.2d 404 (2003); Kaufman v. Eli Lilly & Co., 65 N.Y.2d 449, 455, 492 N.Y.S.2d 584, 482 N.E.2d 63 (1985); see also Town of Deerfield v. FCC, 992 F.2d 420, 428-29 (2d Cir.1993). 24 The ALJ's finding that DOH was unbiased was made as part of an evaluation of DOH's credibility. That ruling—if decided necessarily by the ALJ—would be decisive of the present case, which requires a showing of bias. 25 Appellants concede that the ALJ necessarily decided the sufficiency of the State's evidence of violations. Sufficiency on that score, however, does not defeat Beechwood's present claim, because a plaintiff can prove First Amendment retaliation even if the measures taken by the state were otherwise justified. See, e.g., Leather v. Eyck, 180 F.3d 420, 426 (2d Cir.1999) (denying summary judgment on First Amendment selective prosecution claim where plaintiff was convicted of underlying offense); see also Waters v. Churchill, 511 U.S. 661, 681, 114 S.Ct. 1878, 128 L.Ed.2d 686 (1994) (plurality op.) (denying summary judgment where defendants would have been justified in firing [plaintiff] for [certain] statements but there remained a question as to defendants' actual motivation); Gorman-Bakos v. Cornell Coop. Extension, 252 F.3d 545, 557 (2d Cir.2001) (denying summary judgment where employer could have terminated plaintiffs on account of disruptiveness of speech but there was a material issue as to whether, even if such disruption occurred, plaintiffs were in fact not dismissed because of the disruption, but because of the content of their speech). 26 The issue of bias was considered and decided by the ALJ, who found Beechwood's claim of a conspiracy . . . to be a total, complete and ridiculous fabrication without a shred of evidence or support. But the issue was considered in the context of the partnership's challenge to the credibility of DOH personnel. In so doing, did the ALJ decide the issue necessarily? 27 This is a showing that the State, as proponent of collateral estoppel, has the burden to make, Jeffreys v. Griffin, 1 N.Y.3d 34, 39, 769 N.Y.S.2d 184, 801 N.E.2d 404 (2003), and must clearly establish, Colon v. Coughlin, 58 F.3d 865, 869 (2d Cir.1995). 28 An issue that is necessarily decided must have been both actually decided (as it was here) and necessary to support a valid and final judgment on the merits (which is not so clear at all). See Leather, 180 F.3d at 426; Wilder v. Thomas, 854 F.2d 605, 620 (2d Cir.1988). We are not persuaded that the ALJ's discussion and rejection of the partnership's allegations of improper DOH motives was necessary in that sense. The decisive issue before the ALJ was whether Beechwood has demonstrated a pattern of poor resident care, as well as a failure . . . to take corrective action. The ALJ's conscientious discussion of motive concerns the credibility of evidence presented by DOH; and while that may have impacted the ALJ's findings of violations, the State has not shown to us that the ALJ's credibility findings were so influential as to be actually decisive of the ultimate question concerning the quality of resident care: The charges against the partnership might have been sustainable even if they were animated by bias and retaliation. The State, which shoulders the burden on this point, has made no showing as to the scope of the ALJ's jurisdiction, or as to whether a finding of improper motive or adverse credibility would have made a difference— necessarily—in the ALJ's ultimate determination. We therefore conclude that issue preclusion does not bar litigation of the First Amendment retaliation claim. 29 Relying on Scott v. Coughlin, 344 F.3d 282, 287-88 (2d Cir.2003)—which held that an agency is entitled to summary judgment on a First Amendment retaliation claim if it can show that it would have taken exactly the same action absent the improper motive—DOH argues that the surveys undertaken, the deficiencies found, and the resulting revocation of the operating certificate, were statutorily required. However, even if the pre-revocation surveys were mandated, and even if the State must commence revocation proceedings once it has determined that certain classes of deficiencies exist, N.Y. Pub. Health Law § 2806-b, the identification, characterization, and classification of the actual deficiencies found are within the State's discretion, and are therefore subject to a claim of improper motive. 30