Wynkoop v. Town of Cedar Lake

970 N.E.2d 230

Doug WYNKOOP, Appellant–Plaintiff,

v.The TOWN OF CEDAR LAKE, Indiana, and the Town Council of the Town of Cedar Lake, Indiana, Appellees–Defendants.

No. 45A05–1111–PL–602.

Court of Appeals of Indiana.

June 29, 2012.

John P. Reed, Abrahamson, Reed & Bilse, Hammond, IN, Attorney for Appellant.

Liberty L. Roberts, Collier–Magar & Roberts, P.C., Indianapolis, IN, Attorney for Appellee.

OPINION

BAILEY, Judge.

Case Summary

Doug Wynkoop (“Wynkoop”) appeals the grant of summary judgment in favor of his former employer, the Town of Cedar Lake, Indiana (“Cedar Lake”), and the Town Council of the Town of Cedar Lake, Indiana (collectively, “the Town”).

We affirm.

Issue

Wynkoop raises one issue, which we restate as whether he possessed a constitutionally protected property interest in his position with Cedar Lake so that he was entitled to due process before his employment was terminated.

Facts and Procedural History

Wynkoop was employed by Cedar Lake for approximately seven years, working as a part-time Building Inspector and then as a full-time Code Enforcement Officer. In 2009, by ordinance, Cedar Lake adopted a sixty-page “Town of Cedar Lake Policy and Procedure Manual” (“Procedure Manual” or “Manual”), which states upfront that it is not a contract of employment. The Manual also contains a lengthy at-will employment provision, a progressive disciplinary policy provision, and an employee appeal provision. Wynkoop acknowledged receipt of the Manual on December 4, 2009.

By letter dated June 16, 2010, Cedar Lake notified Wynkoop of a disciplinary job action against him; the recommended discipline was employment termination. Alleging violations of the Procedure Manual and the Town Code of Conduct, the Town Administrator advised Wynkoop that, in accordance with the Manual, he was entitled to request an administrative hearing before the Town Council. A hearing was held in June and, on July 7, 2010, the Town Administrator sent Wynkoop another letter informing him of the Town Council's decisions to suspend him without pay for thirty days and to demote him to the position of part-time Building Inspector. Wynkoop was provided documents pertaining to that position but, apparently, refused to formally acknowledge their receipt. His employment was eventually terminated.

Wynkoop filed a “Complaint for Writ of Certiorari, Declaratory Judgment, Injunctive Relief and Damages” against the Town. (App. at 13.) In part, he asked the trial court to declare that the disciplinary procedure “was violative of the Due Process rights afforded [him] under the Town's Personnel Policy” because the Town Council considered subject matter “beyond the four corners of the charging instrument.” (App. at 16.) ¹ The Town moved for summary judgment and filed a supporting memorandum of law, arguing that Wynkoop had no constitutionally protected property interest in his job. It designated as evidence an affidavit of the Town Administration to which was attached a copy of the Procedure Manual.

Wynkoop responded, designating his affidavit and the June 16, 2010 and July 7, 2010 letters from the Town Administrator. The Town filed a motion to strike portions of Wynkoop's affidavit, which was granted in part. On October 4, 2011, the trial court entered summary judgment in favor of the Town with the following explanation:

The policy and procedure manual adopted by the Town of Cedar Lake did not create a contract of employment with Mr. Wynkoop. As such, Mr. Wynkoop had no property interest in his employment with the town. Mr. Wynkoop had the rights only of an employee at will. As such, he cannot bring a claim for breach of contract, nor can the disciplinary procedures described in the handbook provide a basis for making a claim for breach of due process.

(App. at 11.) (Citations omitted.) Wynkoop now appeals.

Discussion and Decision

Standard of Review

We review an appeal of a trial court's ruling on a motion for summary judgment using the same standard applicable to the trial court. Wilson v. Isaacs, 929 N.E.2d 200, 202 (Ind.2010). Summary judgment is appropriate only if the evidence designated by the parties “shows that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Ind. Trial Rule 56(C). All facts and reasonable inferences drawn from the facts are construed in favor of the non-moving party. Mangold ex rel. Mangold v. Ind. Dep't of Natural Res., 756 N.E.2d 970, 973 (Ind.2001). When material facts are not in dispute, our review is limited to determining whether the trial court correctly applied the law to the undisputed facts. Hayes v. Trustees of Ind. Univ., 902 N.E.2d 303, 312 (Ind.Ct.App.2009), trans. denied. We review a question of law de novo. Id. Further, this Court is not bound by the trial court's findings and conclusions although they aid appellate review and offer valuable insight into the court's rationale for its decision. SCI Ind. Funeral Serv., Inc. v. D.O. McComb & Sons, Inc., 820 N.E.2d 700, 706 (Ind.Ct.App.2005), trans. denied.

Analysis

Wynkoop contends that triable issues of material fact exist concerning whether his due process rights were violated when he was discharged from his employment. The Due Process Clause of the Fourteenth Amendment proclaims that no State shall “deprive any person of life, liberty, or property, without due process of law.” U.S. Const. amend. XIV, § 1; Perdue v. Gargano, 964 N.E.2d 825, 832 (Ind.2012). Due process challenges require a two-part inquiry. The first question is whether the plaintiff was deprived of a protected interest in “property” or “liberty.” Only after finding the deprivation of a protected interest do we determine whether the State's procedures comport with due process. Perdue, 964 N.E.2d at 832.

To have a property interest in a benefit, a person “must have more than a unilateral expectation of it. He must, instead, have a legitimate claim of entitlement to it.” Board of Regents v. Roth, 408 U.S. 564, 577, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972). Further, property interests are not created by the Constitution. Id. The hallmark of property is “an individual entitlement grounded in state law, which cannot be removed except ‘for cause.’ ” Logan v. Zimmerman Brush Co., 455 U.S. 422, 430, 102 S.Ct. 1148, 71 L.Ed.2d 265 (1982) (citations omitted); Tri–City Comprehensive Cmty. Mental Health Center, Inc. v. Franklin, 498 N.E.2d 1303, 1305 (Ind.Ct.App.1986). The source of such entitlement generally arises from statute, ordinance, or contract, but can also arise by agreement with a governmental entity for continued employment. Bankhead v. Walker, 846 N.E.2d 1048, 1053 (Ind.Ct.App.2006).

Here, Wynkoop identifies three “state-law sources” of his purported property interest: the Procedure Manual, the Town's “rules and regulations” and the Town's ordinance. Clearly, however, the basis of each is the Procedure Manual. Thus, we set forth in some detail the relevant portions of that document.

The Procedure Manual

First, under “Introduction and Purpose,” the Manual states its purpose and declares that “[i]t is written, adopted, and interpreted exclusively by the Town Council and their designee, and is not subject to modification, change, or contrary interpretation by any employee....” (App. at 50.) A “disclaimer” follows: “This manual is not a contract of employment and does not guarantee employment for any specified duration.” Id.

Later, under “Employee–at–Will,” the Procedure Manual explains:

A. Public employment is based on the “at-will” doctrine. “At-will” employment means, any individual may voluntarily leave employment or may be terminated by the Town at any time with or without cause.

B. This policy may not be modified by any statements contained in this manual or any other employee materials, including applications, memoranda, or other documents provided to applicants and employees in connection with their employment. None of these documents whether single or combined, create any expressed or implied contract of employment for a definite period, or an express or implied contract concerning any terms or conditions of employment.

C. Similarly, Town policies and practices with respect to any matter should not be considered as creating any contractual obligation on the Town's part or as stating in any way that termination will occur only “for cause.” Statements of specific grounds for termination set forth in this manual or any other Town documents are examples only, not all-inclusive lists, and are not intended to restrict the Town's right to terminate at-will.

D. Completion of a Probationary Period or conferral of regular status does not change an employee's status as an at-will employee or in any way restrict the Town's right to terminate the employee or change the terms or conditions of employment.

(App. at 56–57, emphasis supplied.)

Under the “Employee Behavior/Conduct” section, the Manual incorporates a “Progressive Disciplinary Policy” with “established rules of conduct.” Included is a non-exhaustive list of “Group I Rules” with an associated four-step approach for disciplinary violations, and a non-inclusive list of Group II Rules, for which an employee “may be subject to termination pending an Administration hearing.” (App. at 73, 78–80.) Preceding the recitation of disciplinary violations is a statement that disciplinary action “rang[es] from verbal or written warnings to suspension or to immediate termination depending on the act and the circumstances.” (App. at 79, emphasis supplied.)

The “Employee Appeal” part of the Procedure Manual is of particular interest. It reads:

A. In the event that disciplinary action must be taken against an employee, it will be for just cause and normally in a progressive manner in an attempt to correct an employee's behavior, except in those cases of gross or serious misconduct where an employee may be subject to suspension, reduction, or removal from employment for violation...