Sapia v. Bd. of Educ. of Chi., 14-cv-07946

BENNETT SAPIA, JOEL PASSMORE, and ANNETTE HALL, Plaintiffs, v. BOARD OF EDUCATION OF THE CITY OF CHICAGO, Defendant.

No. 14-cv-07946

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

March 31, 2018

Judge Andrea R. Wood

MEMORANDUM OPINION

Plaintiffs Bennett Sapia, Joel Passmore, and Annette Hall claim they were let go from their tenured teaching positions by Defendant Board of Education of the City of Chicago ("Board") without receiving the benefit of mandated procedures for terminating tenured teachers. Plaintiffs assert that this denial amounts to a violation of their due process rights and so they have filed the instant lawsuit pursuant to 42 U.S.C. § 1983 seeking monetary damages and declaratory relief. Now before the Court are the following motions: the Board's motion for judgment on the pleadings (Dkt. No. 188), the Board's motion to strike and dismiss portions of Plaintiffs' Second Amended Complaint ("SAC") (Dkt. No. 136), Plaintiffs' motion for leave to issue notice to absent class members (Dkt. No. 122), Plaintiffs' motion to strike certain affirmative defenses (Dkt. No. 141), and Plaintiffs' motion to set aside or modify the Magistrate Judge's May 15, 2017 order (Dkt. No. 160). The Court addresses each of the motions below.

BACKGROUND

Plaintiffs were working as tenured teachers in the City of Chicago's public school system when they received layoff notices—Passmore in July 2012, and Sapia and Hall in October 2012. Plaintiffs claim that throughout their careers they received consistently good performance evaluations; but then, in June of 2012, they were rated "unsatisfactory" and shortly thereafter they were fired. The parties do not dispute that in deciding which teachers would be let go, the Board looked first to those with unsatisfactory ratings, including tenured teachers, before considering others with less seniority and no tenure. Plaintiffs assert that the Illinois School Code prohibits the removal of tenured teachers except for cause and also mandates specific pre-termination evaluation and decision procedures plus administrative review of any adverse decision. See 105 ILCS 5/24A-5, 5/34-85. Thus, according to Plaintiffs, by firing them and exposing them to the resulting stigma, the Board deprived them of a protected property interest without due process in violation of the Fourteenth Amendment to the United States Constitution.

The initial complaint in this lawsuit was filed on October 10, 2014 and later followed by the First Amended Complaint ("FAC"). The FAC alleged that the Board denied Plaintiffs, and a putative class of other similarly-situated persons, due process of law. The Board moved to dismiss the FAC arguing, among other things, that Plaintiffs' due process claims failed because Plaintiffs did not have protected property interests under either the Illinois School Code or the operative collective bargaining agreement ("CBA") between the Board and Plaintiffs' union. The Board also argued that Plaintiffs' claims for reputational harm failed because Plaintiffs' unsatisfactory ratings were not stigmatizing, were unpublished, and did not bar Plaintiffs from reemployment. While this Court ultimately denied the Board's motion to dismiss the FAC, the scope of the surviving due process claims was significantly narrowed by the Court's ruling. Specifically, the Court held that,

although Plaintiffs do not state a claim for relief with the bare allegation that the Board used performance ratings to determine their eligibility for layoff, they do state a sufficient claim to the extent they allege that the Board's actions againstthem were not the result of a layoff necessitated by economics or enrollment, but instead were prompted by individual animus towards them.

Sapia v. Bd. of Educ. of the City of Chicago, No. 14-cv-07946, 2016 WL 5391134, at *3 (N.D. Ill. Sept. 26, 2016). After the ruling, the Board moved to join the Chicago Teachers Union ("CTU") as an indispensable party to this action. (Dkt. No. 109.) The Court denied that motion because, due to the ruling on the motion to dismiss, Plaintiffs' claims had been limited to the theory that the layoff label was a pretext for terminations actually prompted by individual animus against each of them, the layoff procedures established by the CBA were no longer at issue, and the challenged actions did not substantially impact the CTU membership. (Feb. 20, 2017 Order, Dkt. No. 124.)

Plaintiffs next sought leave to amend their complaint again to remove the class allegations and to issue notice to absent class members pursuant to Federal Rule of Civil Procedure 23(d)(1). (Dkt. No. 122.) The Court granted Plaintiffs leave to file the SAC, which is now the operative complaint, but deferred ruling on the notice issue at that time. (Feb. 21, 2017 Minute Order, Dkt. No. 125.) The SAC asserts the following claims: Count I alleges denial of due process based on Plaintiffs' pre-termination rights; Count II alleges denial of due process based on Plaintiffs' post-termination rights; and Count III claims a due process violation based on injuries to Plaintiffs' reputations.

The Board answered the SAC but also moved to strike or dismiss portions of it. (Dkt. Nos. 136, 137.) Plaintiffs, in turn, moved to strike certain affirmative defenses raised by the Board. (Dkt. No. 141.) While those motions were pending, the Board also moved for judgment on the pleadings. (Dkt. No. 188.) Additionally, in light of the Board's motion to strike or dismiss portions of the SAC, the Magistrate Judge, who was supervising discovery, suspended briefing on the parties' discovery motions—namely, the Board's motion to quash Plaintiffs' depositionsubpoenas (Dkt. No. 146) and Plaintiffs' motion to compel (Dkt. No. 149). (May 15, 2017 Mem. Op. and Order, Dkt. No. 158.) Thus, Plaintiffs filed a motion asking this Court to set aside or modify the Magistrate Judge's order. (Dkt. No. 160.)

DISCUSSION

I. The Board's Motion for Judgment on the Pleadings

The Court first considers the Board's motion for judgment on the pleadings, as a ruling in the Board's favor could dispose of the case in its entirety. To survive a motion for judgment on the pleadings, the complaint must "state a claim to relief that is plausible on its face." ADM All. Nutrition, Inc. v. SGA Pharm Lab, Inc., 877 F.3d 742, 746 (7th Cir. 2017) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). In reviewing such a motion, the Court draws all reasonable inferences and view all facts in favor of the non-moving party. Id.

For its motion, the Board argues that Plaintiffs' claims are barred by the doctrine of res judicata as a result of a final decision on the merits and stipulation of dismissal with prejudice entered in 2012 in Chicago Teachers Union v. Board of Education of the City of Chicago, No. 10-cv-04852 (N.D. Ill.) ("CTU case"). Under the doctrine of res judicata, a final judgment on the merits of an action precludes the parties or their privies from relitigating issues that were or could have been raised in that action. Barr v. Bd. of Trs. of W. Ill. Univ., 796 F.3d 837, 839 (7th Cir. 2015). Res judicata blocks a second lawsuit if there is (1) an identity of the parties in the two lawsuits; (2) a final judgment on the merits in the first lawsuit; and (3) an identity of the causes of action in the two lawsuits. Id. at 840. The third element is satisfied if the claims comprise the same core of operative facts giving rise to a remedy—in other words, the two lawsuits must be based on the same, or nearly the same, factual allegations. Id.

Here, Plaintiffs' current lawsuit and the CTU case do not arise from the same core of operative facts. The present suit has been limited to Plaintiffs' claim that they were fired due to individual animus towards them and not, as the Board claimed, due to a "drop in enrollment" in the schools. The events at issue took place in 2011 and 2012. Specifically, Sapia became outspoken about problems in his school and advocated against the school's principal in October 2011. (SAC ¶ 20, Dkt. No. 126.) In February 2012, the principal observed Sapia in the classroom, which led to Sapia receiving an "unsatisfactory" rating in June 2012. Sapia was subsequently fired on October 10, 2012, due to allegedly "low enrollment" in his school. (Id. ¶¶ 21-27.) Likewise, Passmore outspokenly opposed the principal of his school in 2011; he was given an "unsatisfactory" rating in June 2012; and he was fired in July 2012 due to the alleged "drop in enrollment" in his school. (Id. ¶¶ 43, 49, 50.) Finally, Hall got an unsatisfactory rating in June 2012 and was let go in October 2012, also due to a purported "drop in enrollment." (Id. ¶¶ 63, 66.)

In contrast, the CTU case dealt with layoffs surrounding a 2010 budget deficit. See Chicago Teachers Union v. Bd. of Educ. of the City of Chicago, No. 10-cv-04852, 2010 WL 3927696, at *1-2 (N.D. Ill. Oct. 4, 2010). On the eve of the 2010-2011 school year, the Board laid off nearly 1,300 teachers. Id. at *1. The layoffs were implemented through a series of resolutions—the June 15, 2010 resolution authorized the "honorable termination" of tenured teachers and the June 23, 2010 resolution authorized schools to first lay off teachers who were under remediation or whose most recent performance ratings were negative. Id. Although the Board suggested to the media that the layoffs involved teachers with unsatisfactory evaluations, the majority of the laid-off teachers had good ratings. Id. The Board later announced plans to dismiss more teachers. Id. By August 31, 2010, the Board had laid off nearly 1,300 teachers. Id. at *2. Those teachers received notice of their terminations but were not provided an opportunity todemonstrate their qualifications for retention within the school system. Id. The Board later restored some of the teachers to their positions due to an increase in federal funding. Id.

On August 2, 2010, the CTU filed a lawsuit against the...