Opinion ID: 887645
Heading Depth: 1
Heading Rank: 5

Heading: Federal Claims Against the Council Members in their Individual Capacities

Text: ¶ 45 Germann relies on Martinez v. California (1980), 444 U.S. 277, 100 S.Ct. 553, 62 L.Ed.2d 481, to support her position that state law cannot immunize federal claims. Martinez involved a California statute that purported to provide absolute immunity to government entities and employees from liability for injuries resulting from parole release determinations. Martinez, 444 U.S. at 280, 100 S.Ct. at 556. The U.S. Supreme Court concluded that Martinez failed to establish a violation of § 1983, but noted that state law cannot immunize conduct by persons acting under color of state law that violates § 1983. Martinez, 444 U.S. at 284, n. 8, 100 S.Ct. at 558, n. 8. ¶ 46 Germann further relies on our decision in Miller v. City of Red Lodge, 2003 MT 44, 314 Mont. 278, 65 P.3d 562. The plaintiff in Miller sued the City of Red Lodge, but did not bring an action against individual government employees. Miller, ¶ 27. We held that the doctrines of judicial and quasi-judicial immunity do not afford local government entities immunity from § 1983 actions, overruling our previous decision in Reisdorff v. County of Yellowstone, 1999 MT 280, 296 Mont. 525, 989 P.2d 850. Miller, ¶ 26. We reiterated our statement from Reisdorff that state immunity laws do not shield the State or its officials from liability based on 42 U.S.C. § 1983. Miller, ¶ 18 (quoting Reisdorff, ¶ 32). ¶ 47 We distinguish these cases from Germann's claims. In Martinez, the statute at issue purported to grant absolute immunity to both the governmental entity and its employees, thereby entirely depriving plaintiffs of a remedy. Martinez, 444 U.S. at 280, 100 S.Ct. at 556. Conversely, granting immunity to the Council Members under § 2-9-305(5), MCA, would not deprive Germann of a remedy. She still could pursue an action against the City for the conduct of the Council Members. ¶ 48 Although we cited to Reisdorff in Miller for the proposition that state immunity laws do not shield the State or its officials from § 1983 liability, our recitation of that proposition in both cases paints too broadly. In Miller, the plaintiff brought an action against only the governmental entity. Miller, ¶ 27. We did not squarely address the issue Germann presentswhether state immunity laws afford immunity to government employees for violations of § 1983 where the government entity remains a viable defendant. Reisdorff, in turn, relied on Morrison v. Jones (9th Cir.1979) 607 F.2d 1269, 1273, in stating that state immunity laws . . . do not shield the State or its officials from liability based on . . . § 1983. Reisdorff, ¶ 32. Morrison addressed a state statute that purported to grant absolute immunity to a governmental employee, without mention of the governmental entity's liability. See Morrison, 607 F.2d at 1273. The actual language employed by Morrison recognized that state law immunities . . . cannot override a section 1983 cause of action. Morrison, 607 F.2d at 1273 (emphasis added). Again, application of § 2-9-305(5), MCA, would not override Germann's § 1983 action because the City remains liable for the actions of its Council Members. ¶ 49 The U.S. Supreme Court provided further instruction in Felder v. Casey (1988), 487 U.S. 131, 108 S.Ct. 2302, 101 L.Ed.2d 123. Felder addressed the application of a Wisconsin notice-of-claim statute to plaintiff's § 1983 action. Felder, 487 U.S. at 134, 108 S.Ct. at 2304-05. The Court noted that where state courts entertain a federally created cause of action, the federal right cannot be defeated by the forms of local practice. Felder, 487 U.S. at 138, 108 S.Ct. at 2306. The Court recognized the preemption question at issue, namely whether the application of the State's notice-of-claim provision to § 1983 actions brought in state courts [is] consistent with the goals of the federal civil rights laws, or [whether] the enforcement of such a requirement instead stand[s] as an obstacle to the accomplishment and execution of the full purpose and objectives of Congress[.] Felder, 487 U.S. at 138, 108 S.Ct. at 2306-07, (internal quotations omitted). The Court further noted that the main objective of the civil rights statutes serves to ensure that individuals whose federal constitutional or statutory rights are abridged may recover damages or secure injunctive relief. Felder, 487 U.S. at 139, 108 S.Ct. at 2307. ¶ 50 The Court accordingly reasoned that any assessment of the applicability of a state law to federal civil rights litigation must be made in light of the purpose and nature of the federal right. Felder, 487 U.S. at 139, 108 S.Ct. at 2307. To illustrate, the Court observed that we have held that a state law that immunizes government conduct otherwise subject to suit under § 1983 is preempted, even where the federal civil rights litigation takes place in state court, because the application of the state immunity law would thwart the congressional remedy. Felder, 487 U.S. at 139, 108 S.Ct. at 2307. The Court went on to hold that the burdensome requirements of Wisconsin's notice-of-claim statute conflicted with the remedial objectives of the civil rights laws and federal law thus preempted the state statute. Felder, 487 U.S. at 153, 108 S.Ct. at 2314. ¶ 51 Our recent decision in Kiely further illuminates the issue. Kiely Construction (Kiely) brought state and federal claims, including a § 1983 action, against the City of Red Lodge (City) and against individually named City Council members based on the City Council's denial of Kiely's subdivision plat application. Kiely, ¶¶ 8, 12. The District Court granted summary judgment to the individually named City council members, concluding that § 2-9-305(5), MCA, provided immunity from suit. Kiely, ¶ 14. ¶ 52 We determined that Kiely failed to demonstrate a § 1983 claim on appeal. Kiely, ¶ 47. We then addressed whether the District Court properly dismissed the individual defendants before trial based on § 2-9-305(5), MCA. Kiely, ¶¶ 78-90. All of Kiely's alleged complaints turned on actions performed by the individually named defendants while serving as members of the city council. Kiely, ¶ 88, 57 P.3d 836. As a result, we determined that the district court properly dismissed the individual defendants in light of the fact that allowing Kiely to collect damages from both the City and the council members would violate the first sentence of § 2-9-305(5), MCA. Kiely, ¶ 88, 57 P.3d 836. ¶ 53 Although we did not address the application of the second sentence of § 2-9-305(5), MCA, we upheld the district court's decision to dismiss the individual defendants before trial and thus before any determination of liability under § 1983 and before any recovery from the City. Kiely, ¶ 88, 57 P.3d 836. Our holding therefore suggests that § 2-9-305(5), MCA, affords immunity to government employees under § 1983 where the government entity remains a viable defendant for the same course of conduct. ¶ 54 We turn to the application of § 2-9-305(5), MCA, to Germann's federal law claims and whether the District Court properly concluded that § 1988 entitled the Council Members to attorneys' fees because Germann knew or should have known that § 2-9-305(5), MCA, shielded the Council Members from suit. The main objective of § 1983 serves to ensure that individuals who have suffered a deprivation of their constitutional or statutory rights are afforded relief through damages or injunctive relief. Felder, 487 U.S. at 139, 108 S.Ct. at 2307. Our analysis of the applicability of § 2-9-305(5), MCA, to Germann's federal claims must be taken in light of this objective. ¶ 55 The District Court's determination to afford immunity to the Council Members for Germann's federal claims against them in their individual capacities under § 1983 does not immunize fully the governmental conduct of which Germann complains. The City has acknowledged that the Council Members acted within the scope and nature of their employment when they undertook the actions giving rise to Germann's complaint. Granting immunity to the Council Members would not deprive Germann of a remedy against the City for these same actions. See Monell v. New York City Dept. of Social Services (1978), 436 U.S. 658, 690, 98 S.Ct. 2018, 2035-36, 56 L.Ed.2d 611 (holding that § 1983 subjects municipalities and other local government units to liability). Indeed, to succeed on her claims against the City would require Germann to prove the same set of alleged facts as her claim against the Council Members. Affording immunity from Germann's federal claims to the Council Member's under § 2-9-305(5), MCA, would not thwart the objectives of § 1983. ¶ 56 We disagree, however, with the District Court's determination that Germann should have known that § 2-9-305(5), MCA, affords the Council Members immunity from Germann's federal claims. The District Court relied upon § 2-9-305(5), MCA, and Kiely in determining that Germann should have known that the Council Members were immune from federal claims. Kiely indicates that § 2-9-305(5), MCA, affords immunity to government employees under § 1983 where the government entity remains a viable defendant for the same course of conduct. It does not, however, explicitly hold so. We based our decision in Kiely on the first sentence of § 2-9-305(5), MCA, but it is the statute's second sentence that grants immunity to government employees. ¶ 57 Given the ambiguity of Kiely's holding and the prolixity of analysis necessary to conclude that § 2-9-305(5), MCA, affords immunity to government employees for federal claims where the governmental entity remains a viable defendant, we cannot conclude that Germann should have known that § 2-9-305(5), MCA, shielded the Council Members from her federal law claims. Accordingly, we cannot deem unreasonable her federal claims against the Council Members in their individual capacities. Section 1988 therefore does not entitle the Council Members to attorneys' fees for their defense of Germann's federal claims against them in their individual capacities. ¶ 58 4. Whether the District Court abused its discretion by denying Germann's motion for costs incurred in preparation for a mandatory settlement conference. ¶ 59 The Scheduling Order required the parties to hold a settlement conference before January 21, 2005. It further provided that failure of counsel to adhere to this Scheduling Order could result in sanctions. Germann argues that the City failed to participate in the settlement conference in good faith by sending a representative with no settlement authority and by failing to notify her that the settlement conference would be futile. The City counters that it had no duty to make a settlement offer and that it participated in the settlement conference as required by the Court's Rule 16 Scheduling Order. ¶ 60 Rule 16(a), M.R.Civ.P., allows courts to create scheduling orders, wherein a court can require parties to attend settlement conferences to facilitate the settlement of a case. Rule 16(f) authorizes courts to impose sanctions against a party who fails to comply with a scheduling order or fails to participate in good faith, including the expenses incurred as a result of noncompliance. Vermeer of Washington, Inc. v. Jones, 2004 MT 77, ¶ 12, 320 Mont. 435, ¶ 12, 87 P.3d 516, ¶ 12; Rule 16(f), M.R.Civ.P. The City revealed to Germann before the settlement conference that its representative has extremely limited settlement authority. The City suggested pushing back the settlement conference by two weeks to allow the City's representative to potentially [gain] some greater authority. The City noted, however, that it did not believe that there was much settlement value to the case. The record does not disclose the actual settlement authority vested in the City's representative. ¶ 61 The City concedes that its representative's authority may have been extremely limited. Courts have recognized, however, that sending representatives with very little authority does not necessarily constitute grounds for sanctions. E.g., Halaby, McCrea & Cross v. Hoffman (Colo.1992), 831 P.2d 902, 908. The Rule 16 Scheduling Order here merely required the parties to attend a settlement conference. The City attended the conference as required by the court. The City declined to offer Germann a settlement, but failure to settle a case, without more, does not constitute grounds for sanctions. National Ass'n of Gov't Emp., Inc. v. Nat. Feder. of Fed. Emp. (5th Cir. 1988), 844 F.2d 216, 223. The City candidly informed Germann before the settlement conference that its representative had limited authority to settle and that it did not believe there was much potential for settlement. ¶ 62 The District Court determined that Germann was not entitled to sanctions for the City's conduct. The district court sits in the best position to evaluate whether litigants have abused the rights of other parties during the course of litigation. Seal, ¶ 26. We therefore conclude that the District Court did not abuse its discretion in denying Germann's motion for sanctions.