Mooney v. Ill. Educ. Ass'n
Mooney v. Ill. Educ. Ass'n
Opinion of the Court
This matter is before the Court on Defendants' Motion to Dismiss (Doc. 11). Plaintiff has filed a response (Doc. 14) and Defendants have filed a reply with the Court's leave (Doc. 18). Although Defendants requested oral argument (Doc. 11 at 2), the Court denies the request because this matter can be decided on the papers. The matter is therefore ripe for review.
BACKGROUND
Plaintiff Stacey Mooney is a public school teacher in the Eureka Community School District # 140 and resides in Tazewell County, Illinois. (Doc. 1 at 2). Over the course of her nearly three decades of teaching, she has declined to join Defendant Illinois Education Association or its affiliates, Defendant Congerville-Eureka-Goodfield Education Association and Defendant National Education Association, because she "disapproves of their political advocacy and collective bargaining activities" and "the excessive salaries" paid to high-ranking union officials. (Doc. 1 at 2).
Though not a member of any union, Plaintiff was nevertheless required by law to pay "fair-share" fees to Defendants. (Doc. 1 at 2). Relying on the Supreme Court's recent ruling in Janus v. American Federation of State, County, & Municipal Employees, Council 31 , --- U.S. ----,
DISCUSSION
The discussion of this case must begin with the Supreme Court's decision in Janus , which held the Illinois law requiring certain employees pay fair-share fees violated the First Amendment. Prior to Janus , Illinois law was as follows:
Under the Illinois Public Labor Relations Act (IPLRA), employees of the State and its political subdivisions are permitted to unionize. See Ill. Comp. Stat., ch. 5, § 315/6(a) (West 2016). If a majority of the employees in a bargaining unit vote to be represented by a union, that union is designated as the exclusive representative of all the employees. §§ 315/3(s)(1), 315/6(c), 315/9. Employees in the unit are not obligated to join the union selected by their co-workers, but whether they join or not, that union is deemed to be their sole permitted representative. See §§ 315/6(a), (c).
Janus ,
A similar scheme was held constitutional in Abood v. Detroit Board of Education ,
In Janus , the Supreme Court overruled Abood , holding state laws compelling public employees who are not union members to pay fair-share fees to a union violate the free-speech rights of those non-union employees.
Plaintiff is not the first to offer an argument based on Janus seeking recovery of fair-share fees paid prior to its pronouncement. Among this Court's colleagues to have considered these suits, there is a consensus concluding fair-share fees collected prior to Janus may not be recovered. Danielson v. AFSCME, Council 28, AFL-CIO ,
*697Janus v. AFSCME, Council 31 , No. 15-cv-1235,
I. Good-Faith Defense
Defendants argue Plaintiff's primary claim-that under Janus she and the putative class members are entitled to a refund of all the fair-share fees they paid prior to Janus -is barred by a good-faith defense available to private parties sued under
A. Type of Motion & Legal Standard
As an initial matter, Defendants have erred by making this argument under Federal Rule of Civil Procedure 12(b)(6) rather than Rule 12(c) or Rule 56. The good-faith defense is an affirmative defense. See Wyatt v. Cole ,
Nevertheless, the Seventh Circuit has "found such procedural missteps [are] harmless when all the facts necessary to rule on the affirmative defense are properly before the court on the motion to dismiss." United States v. Rogers Cartage Co. ,
B. There is a Good-Faith Defense for Private Parties Sued Under § 1983
Plaintiff never quite argues the good-faith defense does not exist. (See Doc. 14 at 23 ("There is much to be said in support of a 'good faith' defense that shields private defendants from liability for damages that result from an innocent but unconstitutional seizure of property.") (emphasis in original) ). However, she repeatedly indicates in that direction (e.g. Doc. 14 at 16 ("There is obviously no 'good faith' defense in the text of section 1983") ), uses quotation marks to offset the words "good faith," and spends over a page arguing Defendants overstated the support in the judiciary for the defense (Doc. 14 at 21-23). The Court therefore infers she is not conceding the existence of such a defense. Accordingly, the threshold consideration is whether a good-faith defense exists for private parties sued under § 1983. See Cook , 364 F.Supp.3d at 1190-91,
The Seventh Circuit has yet to issue a decision on the good-faith defense in this context. Janus ,
Lack of binding precedent, however, does not mean this Court is left adrift. State entities, state employees, and municipal entities enjoy labyrinthine fortresses of immunities and protections against liability under § 1983.
However, as noted above, the Supreme Court did not "foreclose the possibility that private defendants faced with § 1983 liability under Lugar ... could be entitled to an affirmative defense based on good faith ... or that § 1983 suits against private, rather than governmental, parties could require plaintiffs to carry additional burdens." Id. at 169,
Since Wyatt , every federal appellate court to have decided the question has held a good-faith defense exists for private parties sued under § 1983. Winner ,
C. The Good-Faith Defense is Available in this Case
Plaintiff argues that if a good-faith defense is available, it is not available here *700for several reasons. Those proffered reasons are: (1) the good-faith defense shields a defendant solely from damages, not from return of unlawfully taken property; (2) the good-faith defense can only exist where the most analogous tort at common law required scienter; (3) Seventh Circuit precedent requires this Court to hold non-members who paid fair-share fees are entitled to a refund; and (4) the good-faith defense ought not apply to private institutional defendants, just as qualified immunity does not apply to public institutional defendants.
1. The Good-Faith Defense is Available in Restitution Cases, at Least Where the Relief Sought is Legal Rather Than Equitable
The Western District of Washington ably explained why merely casting a remedy as equitable relief does not defeat the good-faith defense, even assuming the good-faith defense cannot apply to equitable relief:
A plaintiff may not circumvent qualified immunity or the good faith defense simply by labeling a claim for legal damages as one for equitable restitution. See Lenea v. Lane ,882 F.2d 1171 , 1178-79 (7th Cir. 1989) ("Regardless of what label is placed on the monetary relief which Lenea wants, 'equitable' or 'legal damages,' it remains a personal monetary award out of the official's own pocket."); see also Clanton v. Orleans Par. Sch. Bd. ,649 F.2d 1084 , 1101 (5th Cir. 1981) (rejecting the "distinction between equitable and legal relief for purposes of the qualified immunity defense"). In other words, Plaintiffs cannot save their claim through a mere "semantic exercise" if equitable relief is not actually available. Lenea ,882 F.2d at 1179 .
Carey , 364 F.Supp.3d at 1232-33,
"[N]ot all relief falling under the rubric of restitution is available in equity." Great-West Life & Annuity Ins. Co. v. Knudson ,
If all identifiable monies sought by a plaintiff have been expended, the "plaintiff then may have a personal claim against the defendant's general assets-but recovering out of those assets is a legal remedy, not an equitable one." Montanile ,
Plaintiff argues that Carey and other cases rejecting claims essentially identical to hers fail to sufficiently explain why the good-faith defense can apply against a claim for restitution and suggests the defendants *701in those cases received a windfall. (Doc. 14 at 23-24). The Court disagrees with Plaintiff's suggestion that the Court's counterparts have failed to provide thorough explanations, but will try its hand at one nonetheless.
The gravamen of Plaintiff's objection is that "the union was unjustly enriched by the unconstitutional agency-shop arrangements that it enforced." (Doc. 14 at 17). She further suggests the Janus Court disavowed or abrogated the view that fair-share fees were justly paid for services rendered. (Doc. 14 at 17 n.6 ("Petitioner ... argues that he is not a free rider on a bus headed for a destination that he wishes to reach but is more like a person shanghaied for an unwanted voyage") (quoting Janus ,
Even with Janus holding mandatory fair-share fees are unconstitutional, unions were not unjustly enriched by the payment of fair-share fees because, as the name implies, the fees covered the costs of union representation for non-union members. The Seventh Circuit has explained:
[T]he union negotiated on behalf of these employees as it was required by law to do, adjusted grievances for them as it was required by law to do, and incurred expenses in doing these things .... The plaintiffs do not propose to give back the benefits that the union's efforts bestowed on them. These benefits were rendered with a reasonable expectation of compensation founded on the collective bargaining agreement and federal labor law, and the conferral of the benefits on the plaintiffs would therefore give rise under conventional principles of restitution to a valid claim by the union for restitution if the union were forced to turn over the escrow account to the plaintiffs and others similarly situated to them .... In claiming restitution the plaintiffs are standing that remedy on its head.
Gilpin v. AFSCME, AFL-CIO ,
The legal landscape has shifted since Gilpin , but the underlying principle has not. The unions may not have spent Plaintiff's funds as she would have, but there is no allegation that they failed to provide services as required by Illinois law to her or others similarly situated. Because the fair-share fees were expended on Plaintiff and others similarly situated, she would gain their benefit twice if legal restitution were allowed. Of course, had the fees not been spent for Plaintiff's benefit-and thus been available through equitable restitution-the calculus might be different.
The Court concludes the good-faith defense may be maintained in actions at law, and this action sounds in law rather than equity. Therefore, the good-faith defense is available here. The Court does not reach the question of whether it may be used in suits at equity.
2. No Inquiry into a Common Law Tort Analog is Necessary
The Wyatt concurrence and dissent suggest the good-faith defense is available only where "[t]he common-law tort actions most analogous to the action" required "that the wrongdoer acted with malice and without probable cause."
Plaintiff also asserts the majority opinion in Wyatt is binding precedent which "precludes a 'good faith' defense when the most analogous common-law tort imposed strict liability." (Doc. 14 at 13). Supreme Court decisions interpreting federal law are, of course, binding on this and every court, but not everything stated in a Supreme Court opinion constitutes binding precedent. "When an opinion issues for the Court," courts are bound by the result and "those portions of the opinion necessary to that result." Seminole Tribe of Fla. v. Florida ,
Dicta are "the part[s] of an opinion that a later court, even if it is an inferior court, is free to reject." United States v. Crawley ,
It can be difficult to tell where a holding ends and dictum begins in some situations. But not so with the Wyatt Court's musings on the good-faith defense. The Supreme Court was clear that "the precise issue" decided in Wyatt was "whether qualified immunity ... is available for private defendants faced with § 1983 liability" under Lugar .
Plaintiff's statement that Wyatt is binding precedent in this context brings her perilously close to misrepresenting the state of the law. Particularly concerning is that Attorney Jonathan F. Mitchell, representing Plaintiff, knew or should have known this when he submitted and signed Plaintiff's response. The response cites Carey (Doc. 14 at 23)-a case in which Attorney Mitchell was also counsel and advanced the same argument. Carey states in no uncertain terms that the portion of Wyatt discussed is nonbinding dicta. 364 F.Supp.3d at 1229,
Carey also correctly explained the dicta in Wyatt was "far murkier" than Plaintiff suggests. See
*703Cook , 364 F.Supp.3d at 1191-92,
Several courts recently considering the question have provided compelling reasons why the good-faith defense should not involve looking to the most analogous common law tort. The Northern District of Illinois held "limiting principles of scienter or motive are not consistent with the Supreme Court's approach [in Wyatt ] because they would still leave private parties exposed to a damages verdict for relying on seemingly valid state laws that were later held to be unconstitutional." Winner ,
This Court agrees with the Northern District of Illinois and District of Oregon. The principles of fairness and equality underlying the good-faith defense in the § 1983 context demand a private defendant relying in good faith on a presumptively constitutional statute not be abandoned and exposed when the law is subsequently held unconstitutional, while the State remains cloaked in sovereign immunity and its officials are shielded by the veil of qualified immunity. Quibbles over which tort as it existed at common law in 1871 is most analogous to the harm wrought by the statute in question would only undercut these purposes.
3. Seventh Circuit Precedent Does Not Require the Court to Deny the Good-Faith Defense Here
In Riffey v. Rauner ,
This Court has already explained the difference between binding precedent and dicta in detail. Supra Section I(C)(2). The phrase Plaintiff cites is dicta. The question addressed by the earlier opinion was whether a class could be certified. Riffey v. Rauner ,
As previously explained, not every phrase jotted by the Seventh Circuit or the Supreme Court binds this Court. Although this Court is readily persuaded by dicta from those courts, this single statement taken out of context does not mean the Seventh Circuit intended to suggest no affirmative defenses were available. The Seventh Circuit's express disavowal of deciding such issues in Riffey II makes clear the Court is right to be unpersuaded.
4. The Good-Faith Defense is Available to Private Institutional Defendants
Plaintiff next argues the good-faith defense cannot shield institutions, but only individuals, just as qualified immunity protects officers but not counties and municipal corporations. (Doc. 14 at 18-19). Defendants respond the defense has been applied to institutions and the rationale behind the good-faith defense supports that application. (Doc. 18 at 8).
It is certainly true that some of the circuits to have considered the good-faith defense have allowed it for institutional defendants. Jordan ,
Nothing in the good-faith defense suggests it ought to be understood as perfectly congruent with qualified immunity. As the Supreme Court explained in Wyatt , "the reasons for recognizing [qualified] immunity were based not simply on the existence of a good faith defense at common law, but on the special policy concerns involved in suing government officials."
But these special policy concerns also made qualified immunity improper for municipal corporations. Qualified immunity rests on "two mutually dependent rationales": (1) allowing liability for officers who must exercise discretion and who do so in good faith would be unjust and (2) the threat of liability might deter officers from executing their duties "with the decisiveness and the judgment required by the public good." Owen v. City of Independence ,
These concerns do not inhere in private institutional defendants. Defendants did not make a policy which ultimately was held unconstitutional; the State of Illinois did. Defendants are not governmental actors who should consider at every step the potential they might be violating constitutional rights; they are private actors entitled to rely on the State's laws. So, the reasons against extending qualified immunity to municipal corporations and counties are inapposite.
Plaintiff notes this standard creates the anomaly that public institutions are treated differently from public officials, but private institutions are not treated differently from their agents. But she misunderstands the nature of the anomaly. The oddity is not that private institutions are treated the same as private individuals, but rather that public institutions are not treated the same as public officials. This oddity is justified because of the particular policy concerns essential to the public, legislative character of public institutions. Those concerns being absent here, the Court rejects Plaintiff's argument that private institutional defendants may not avail themselves of the good-faith defense.
D. The Requirements of the Good-Faith Defense
The good-faith defense exists and is available to Defendants in this case to argue against Plaintiff's specific claim. What remains is to determine whether Defendants have shown they acted in good faith. Plaintiff argues Defendants cannot establish a good-faith defense to her Janus claim without (1) affirmatively showing they complied with Abood and (2) presenting evidence of Defendants' officers' subjective beliefs, both of which she argues require factual development and therefore cannot be decided at this time. (Doc. 14 at 20-21). The Court disagrees.
1. Defendants Need Not Show Perfect Compliance with Abood to Avail Themselves of the Good-Faith Defense Against a Janus Claim
Plaintiff asserts "the union cannot establish 'good faith' unless it shows that it fully complied with the pre- Janus constitutional strictures on agency shops." (Doc. 14 at 20). But as the District of Alaska explained, the "argument that discovery is needed on a different claim for different relief on a different class before the court can apply the good faith defense simply does not track." Crockett ,
Janus held the First Amendment is violated when "an agency fee [ ]or any other payment to the union" is "deducted *706from a nonmember's wages." 138 S.Ct. at 2486. Under Abood , this was not true.
2. Defendants Have Shown the Good-Faith Defense Bars Plaintiff's Janus Claim
Although there may be some disagreement as to what showing is needed to establish good faith, see Carey , 364 F.Supp.3d at 1228,
Indeed, to do otherwise results in an odd situation: if Defendants' officers "subjectively believed the Supreme Court would not overrule Abood , [Defendants'] collection of agency fees, up until Janus , would be shielded by the good faith defense, but not so if the same [officers] instead subjectively believed (correctly) that the Supreme Court would overrule Abood ." Danielson ,
Presuming subjective good faith, by contrast, follows from bedrock principles. "It is emphatically the province and duty of the judicial department to say what the law is." Marbury v. Madison ,
*707Danielson ,
In Wyatt , the dissent charged there was no reason "other than a needlessly fastidious adherence to nomenclature" to deny private § 1983 defendants qualified immunity while allowing the existence of a good-faith defense.
II. Availability of Retrospective Monetary Relief for Conduct Previously Authorized by the Supreme Court
The Court also agrees with the Northern District of California's observation "there is a strong argument that when the highest judicial authority has previously deemed conduct constitutional, reversal of course by that judicial authority should never, as a categorical matter, result in retrospective monetary relief based on that conduct." Hough ,
This line of reasoning is deeply persuasive to this Court. It is buoyed, moreover, by the Supreme Court's statement in Janus that although "the loss of payments from nonmembers may cause unions to experience unpleasant transition costs in the short term" those "disadvantages" had to be weighed "against the considerable windfall that unions have received under Abood for the past 41 years." 138 S.Ct. at 2485-86. Although certainly not dispositive, the Supreme Court does not appear to contemplate the "windfall" being disgorged, nor the potential that some unions might face an existential threat from lawsuits such as the present one. Prudence, equity, and fairness would have counseled the same result even absent the good-faith defense.
III. Plaintiff's Possible Abood Claim
In the Complaint, Plaintiff separately requests a refund of "any and all 'fair-share fees' " and "any and all 'fair-share service fees' that were spent on political and ideological expenditures, in violation of Abood and pre- Janus cases." (Doc. 1 at 5-6). Defendants have moved to dismiss this as a separate claim (Doc. 12 at 26-27). Plaintiff does not directly address this portion *708of Defendants' motion but does include the now-rejected argument that Defendants must prove compliance with Abood to establish the good-faith defense against Plaintiff's Janus claim. (Doc. 14 at 20). The Court is uncertain if Plaintiff intended this request to be a separate claim or rather a more limited request in case the Court determined there was a good-faith defense which applied to fair-share fees except where Defendants failed to show they had complied with Abood .
Either way, the request does not survive. Plaintiff has not alleged any facts indicating an Abood violation. If it was intended as an independent claim, the claim lacks "factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Ashcroft ,
IV. State-Law Claims
Invoking supplemental jurisdiction, Plaintiff asserts claims for "conversion, trespass to chattels, replevin, unjust enrichment, restitution, and any other legal or equitable cause of action that offers relief" to her. (Doc. 1 at 5). Defendants seek dismissal of these claims, arguing they are preempted by an Illinois statutory scheme and that Plaintiff has failed to state the elements of the various asserted claims because the fair-share fees were authorized. (Doc. 12 at 24-25). Defendants further argue the state law claims have been abandoned by Plaintiff's failure to defend them in her response. (Doc. 18 at 2 n.1).
The Court declines the invitation to reach these claims. "The supplemental-jurisdiction statute provides that the district court 'may decline to exercise supplemental jurisdiction' over state-law claims if the court 'has dismissed all claims over which it has original jurisdiction.' " RWJ Mgmt. Co., Inc. v. BP Prods. N. Am., Inc. ,
(1) the statute of limitations has run on the pendent claim, precluding the filing of a separate suit in state court; (2) substantial judicial resources have already been committed, so that sending the case to another court will cause a substantial duplication of effort; or (3) when it is absolutely clear how the pendent claims can be decided.
Sharp Elecs. Corp. v. Metro. Life Ins. Co. ,
No claims remain over which this Court has original jurisdiction. There is no statute of limitations issue which the Court is aware of, and the Court has not expended substantial resources such that a duplication of effort would occur in state court. And while Defendants have made strong arguments in favor of the dismissal of the pendent claims, the Court does not believe it is "absolutely clear" that all of the various state theories of liability alleged are preempted or require a wrongful or unauthorized *709taking.
CONCLUSION
Defendants' Motion to Dismiss (Doc. 11) is GRANTED in part as a motion under Rule 12(b)(6) and in part construed as a motion for judgment on the pleadings under Rule 12(c). Plaintiff's Janus claim is DISMISSED WITH PREJUDICE. To the extent Plaintiff sought to plead a claim under Abood , it is DISMISSED WITHOUT PREJUDICE. Plaintiff may replead the Abood claim within twenty-one (21) days of the date of this Order. However, to ensure expedient handling of this matter, Plaintiff MUST submit a notice within seven (7) days of the date of this Order indicating whether she intends to replead the Abood claim; if not, the matter will be terminated and judgment entered. Plaintiff's various and sundry state law claims are DISMISSED WITHOUT PREJUDICE.
SO ORDERED.
The American Federation of State, County, and Municipal Employees is hereinafter referred to as "AFSCME".
Although the Court is persuaded by the above-cited authority concluding the good-faith defense is an affirmative defense, the Court recognizes some authority suggests the good-faith defense is a standard, rather than affirmative, defense. See Wyatt ,
See Will v. Mich. Dept. of State Police ,
Plaintiff suggests the First Circuit in Downs v. Sawtelle ,
If, however, this Court were to reach the issue, it would determine that either tortious interference with a contract (or business expectancy) or abuse of process was more analogous to the instant claim than conversion; and both of those torts require scienter. See Carey , 364 F.Supp.3d at 1230-31,
This is not to imply that executive officials can simply ignore the constitutionality of their actions. Their immunity is qualified rather than absolute for good reason. See Scheuer ,
The Court is skeptical that abandonment applies to the failure to respond to an argument in a motion to dismiss where the movant bears the burden, given that the caselaw cited by Defendants discusses failure to respond to motions for summary judgment and failure to raise arguments in appellant's briefs on appeal. (Doc. 18 at 2 n.1 (citing Palmer v. Marion Cty. ,
Reference
- Full Case Name
- Stacey MOONEY, on behalf of herself and all others similarly situated v. ILLINOIS EDUCATION ASSOCIATION Congerville-Eureka-Goodfield Education Association, as representative of the class of all chapters and affiliates of the Illinois Education Association and National Education Association
- Cited By
- 6 cases
- Status
- Published