Opinion ID: 419201
Heading Depth: 3
Heading Rank: 3

Heading: Property Interest in Salary

Text: 18 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). III 19 We next consider whether, if Orloff had a liberty or property interest at stake, he received procedural due process in the manner of his termination. The district court found that Orloff received notice of his imminent discharge, he had an opportunity to respond, the VA postponed the initial termination date twice to permit further investigation into his case, and he received notice of the adverse decision. The district court held that this sequence of events substantially fulfilled the requirements of due process. We disagree. 20 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. 21 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. 22 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. 23 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. 24 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. 25 We hold that if Orloff did have a liberty or property interest in his continued appointment, material issues of fact remain concerning whether the procedures employed in this case to terminate him comported with due process. On remand, the district court must (a) determine what procedures the VA used to review the termination decision; and (b) apply the three-part balancing test of Mathews to determine whether the procedures were sufficient in this context. Because Orloff did have a property interest in his wages, the district court must determine the procedural protections that the VA is required to afford, in order that Orloff have an opportunity to protect that interest.