Opinion ID: 3002514
Heading Depth: 3
Heading Rank: 1

Heading: Negligent Hiring, Supervision, and Retention

Text: The Hansens allege that HSSC acted negligently in hiring, supervising, and retaining Alano. The district court granted summary judgment in HSSC’s favor because it found there to be no evidence that the school district knew that Alano had engaged in inappropriate conduct with C.H. or any of his prior students. The Hansens assert that the district court erred by requiring them to demonstrate that HSSC had actual knowledge of Alano’s misconduct. They argue that they produced sufficient evidence to create a genuine issue of fact under what they claim is the correct standard: whether HSSC should have known that Alano had engaged in a habit of misconduct. Indiana recognizes a cause of action against an employer for negligent hiring, supervision, or retention of an employee. Levinson v. Citizens Nat’l Bank of Evansville, 644 N.E.2d 1264, 1269 (Ind. Ct. App. 1994). Indiana has adopted the Restatement (Second) of Torts § 317 as the standard with regard to this tort, under which a court must determine if the employer exercised reasonable care in hiring, supervising, or retaining an employee. Konkle v. Henson, 672 N.E.2d 450, 454-55 (Ind. Ct. App. 1996). Indiana courts are somewhat unclear on the applicable standard for holding an employer liable for negligent No. 08-1205 19 hiring, retention, or supervision. Some decisions state that to be liable an employer must have actual knowledge of an employee’s habit of misconduct and fail to respond reasonably. See, e.g., Levinson, 644 N.E.2d at 1269 (“In order to prevail on this theory, the plaintiff must show that the defendant employer negligently retained an employee who the defendant knew was in the habit of misconducting himself.”(emphasis added)); Briggs v. Finley, 631 N.E.2d 959, 966-67 (Ind. Ct. App. 1994) (stating that an employer may be liable for negligent retention “only if he knows the employee is in the habit of misconducting himself in a manner dangerous to others”(emphasis added)). Other decisions, however, state that an employer may be liable if it merely should have known or had reason to know of the misconduct. See, e.g., Grzan v. Charter Hosp. of Nw. Ind., 702 N.E.2d 786, 793 (Ind. Ct. App. 1998) (holding that a defendant must have known or “had reason to know” of the misconduct and failed to take appropriate action); Konkle, 672 N.E.2d at 460 (citing Levinson, which states an actual knowledge standard, but then stating that “[t]o prevail on her claim [of negligent hiring, supervision, and retention, plaintiff] must show that the Church Defendants knew or had reason to know of [defendant’s] misconduct and failed to take appropriate action” (emphasis added)); Frye v. Am. Painting Co., 642 N.E.2d 995, 998 (Ind. Ct. App. 1994) (noting that in an action for negligent retention of an employee, “evidence of prior similar actions committed by an employee are often admissible to establish the employer’s actual or constructive knowledge of the employee’s propensity to commit a later act of violence” (emphasis added)). 20 No. 08-1205 Based on our review of the record in this case, the Hansens presented no evidence that HSSC either knew, should have known, or had reason to know that Alano was in “the habit of misconducting himself.” Levinson, 644 N.E.2d at 1269. Thus, the Hansens failed to satisfy even the lesser standard, and we need not anticipate how the Indiana Supreme Court would resolve the question of whether actual knowledge of misconduct is required to hold an employer liable for negligent hiring, supervision, or retention. The Hansens base their negligent hiring claim on the fact that Alano allegedly engaged in relationships with two former students prior to his employment at HSE, one of whom had become Alano’s wife by the time HSSC hired him. They further assert that, while the school district may not have acquired knowledge about the prior relationships directly, it should have inquired whether Alano ever had a sexual or physical relationship with a student, and it chose to ignore “red flags.” However, the Hansens produced no evidence that HSSC failed to exercise reasonable care in hiring Alano or that it knew or should have known of any negative employ- ment information when it hired Alano. As detailed above, and taking the facts in the light most favorable to the Hansens, HSSC followed its established hiring procedure when it hired Alano. This required him to submit an application and related materials, provide references, and undergo a series of interviews with school officials. Along with the application, Alano completed a questionnaire stating that he had never been No. 08-1205 21 investigated, charged with, or resigned because of any misconduct, including sexual abuse or contact. He received positive recommendations from the principal and an assistant principal at his previous school, and from Michael Niemiec, HSE’s band director. The school ensured that Alano possessed a valid teaching license, which the state issues only after completing a criminal background check, and also confirmed that Alano’s name was not on a list of known sex offenders. HSE’s principal, Glen Nelson, recommended Alano for employment after interviewing him, checking his references, and discussing his application with Niemiec. The assistant superintendent, Dr. Hogue, also interviewed Alano, contacted Niemiec, and agreed to recommend Alano for employment. During this process, HSSC received no information that Alano had a history of improper conduct with his students. Rather, the Hansens acknowledge that HSSC “may not have had ‘actual knowledge’ of the relationships” with Rhoades and Harker, but they assert that it “should have inquired” about past sexual relationships. As noted above, no one at HSE or Waldron knew about Alano’s improper conduct with Alicia Rhoades, his former student at Waldron, nor do the Hansens point to anything indicating that either school should have known. The Hansens presented no evidence that Alano’s relationship with Harker was improper while they were in a teacher-student relationship. The Hansens seek to impute knowledge to HSSC because Niemiec knew that Alano married a former student. But even if HSSC knew or should have known that Harker was Alano’s former student, the Hansens fail to demonstrate that this knowledge alone 22 No. 08-1205 would put the school district on notice that Alano’s relationship with Harker was improper, that he was in a habit of misconducting himself, or that he otherwise represented a threat to his students. The Hansens also argue that HSSC should have asked Alano directly whether he ever had a sexual or physical relationship with a former student, citing Interim Healthcare of Fort Wayne, Inc. v. Moyer ex rel. Moyer, 746 N.E.2d 429 (Ind. Ct. App. 2001). In Moyer, the plaintiffs alleged that a health care agency negligently hired a home health aide, who later injured a child patient. Id. at 430-31. Because there was no evidence that the employer actually contacted any of the aide’s previous employers, the court found an issue of fact for the jury that precluded the defendant’s motion for summary judgment. Id. at 435. A concurring opinion added that to survive summary judgment, the plaintiffs also must demonstrate proximate cause, i.e., that had the employer contacted the aide’s former employers, it would have discovered negative employment information. Id. at 436-37 (Baker, J., concurring). Unlike the plaintiffs in Moyer, the Hansens have presented no evidence that HSSC acted unreasonably in contacting Alano’s references or former employers, nor have they presented evidence that any additional references would have revealed negative employment information had HSSC contacted them. Quite the opposite, all of the references that Alano provided spoke highly of him. The Hansens suggest that had the school officials asked Alano directly, he would have divulged his No. 08-1205 23 previous relationships, and Alano himself stated this to be true. HSSC, however, required Alano to complete a questionnaire that asked whether he had ever been investigated, charged with, or resigned because of any misconduct, including sexual abuse or contact. He responded that he had not, and he signed the statement. The failure to ask the specific question of whether he engaged in any prior relationships with a student was not unreasonable, particularly in light of the school district’s thorough hiring procedures and the information available. In sum, nothing in the record creates an inference that HSSC knew or should have known of any negative em- ployment information regarding Alano at the time it hired him. Furthermore, given the school district’s hiring process, no evidence indicates that it acted unreasonably in hiring him. The Hansens’ claim that HSSC negligently retained or supervised Alano fails for similar reasons. The Hansens rely on evidence of the same two prior relationships with former students, discussed above, to create an inference that Alano had a habit of misconduct and represented a risk of harm to his current students. For the same reasons, these two relationships do not establish that HSSC knew or should have known of any miscon- duct by Alano. The Hansens point to no additional evidence that suggests that school officials knew or should have known of misconduct during Alano’s tenure at the school or that he presented a risk of harm to his students after he began his employment. Nothing in the record demonstrates that HSSC was aware of Alano’s relationship 24 No. 08-1205 with C.H. while she was a student, a fact to which both parties agree. Nor is there any evidence that the school district acted unreasonably in supervising or retaining Alano in light of any information it may have had. In fact, HSSC promptly suspended Alano upon learning of the allegations. Thus, taking all inferences in the Hansens’ favor, no genuine issue of material fact exists regarding whether HSSC negligently hired, retained, or supervised Alano, and summary judgment in the school district’s favor was proper.