Cuozzo v. State, d/b/a University of North Dakota
Cuozzo v. State, d/b/a University of North Dakota
Dissenting Opinion
[¶20] I respectfully dissent.
*759[¶21] "All contracts, whether public or private, are to be interpreted by the same rules, except as otherwise provided by the laws of this state." N.D.C.C. § 9-07-01. The contract term at issue here was not a negotiated term but became part of the agreement by virtue of being the law of the land in existence at the time the contract was made. Bindas v. Bindas ,
[¶22] Although the district court correctly identified the essential benefit of the contractual provision at issue, it misconstrued its plain language describing the obligation placed on President Kennedy. The court stated:
The policy states that the president shall include "Findings of Fact and Reasons OR Conclusions based on the hearing record." The wording of this specific statute does not necessarily require the president to make findings of fact. It allows the president of the university to make findings of fact and reasons or to make conclusions, either of them based upon the hearing record. Kennedy made conclusions in his letter and e-mail, and stated these conclusions were made after consideration of the SCOFR report.
To interpret the term "findings of fact and reasons or conclusions," the court has to decide whether "and" comes before "or," an instance of the general problem called order of operations in mathematics and computer programming. See generally https://en.wikipedia.org/wiki/Order_of_operations. Depending on whether the "and" or the "or" takes precedence, this phrase means either (a) "findings of fact" and "reasons or conclusions" or (b) "findings of fact and reasons" or "conclusions." The district court chose (b) and easily found Kennedy's perfunctory conclusion to satisfy the requirement. This is an implausible reading of the clause that all but eliminates the obligation of the university president to further the due process purposes of the clause.
[¶23] The district court went on to reason in the alternative that, even if findings of fact were required, Kennedy's letters indicated substantial compliance with the requirement because Cuozzo does not contest the findings made by SCOFR or whether they were sufficient to support his termination. President Kennedy made no findings based on the hearing record in his terse letter terminating Cuozzo. Without a showing of harm arising from President Kennedy's failure to provide "findings of fact and reasons or conclusions based on the hearing record," the Majority dismisses this procedural protection as form over substance. Majority, at ¶ 16. Contra N.D.C.C. § 1-02-05. But it is the very nature of due process to put form (process) over substance (results). By consistently following the form, the reliability of and confidence in the results is enhanced. In Hammond v. North Dakota State Personnel Bd. ,
[¶24] The decision maker (the Board in Hammond or President Kennedy here) need not review the entire record, but must "consider and appraise the evidence," either directly or in summary form.
[¶25] Jerod E. Tufte
Opinion of the Court
*754[¶1] Frank Cuozzo appeals from a judgment dismissing his breach of contract action against the State, doing business as the University of North Dakota (UND), and its president Mark Kennedy. We affirm the judgment, concluding Kennedy substantially complied with his contractual obligations in terminating Cuozzo's employment.
I
[¶2] Cuozzo was a tenured faculty member in UND's Anthropology Department. After failing to inform his department of convictions for driving under the influence and driving with a revoked license, Cuozzo was placed on a performance improvement plan which he subsequently violated. On January 30, 2017, Cuozzo was terminated from his position and he filed a formal grievance. The Standing Committee on Faculty Rights held a hearing and issued a four-page report finding there was clear and convincing evidence of adequate cause to terminate Cuozzo, but recommending that he be allowed to resign instead of being terminated for cause. The Standing Committee submitted its findings and conclusions to Kennedy.
[¶3] Four days after receiving the report, Kennedy wrote a letter to Cuozzo stating:
"I have carefully reviewed the Standing Committee on Faculty Rights (SCoFR) report in the matter of your appeal of the University's decision to terminate you for adequate cause. I value and respect the time and effort of the SCoFR members in reviewing this matter, and I appreciate their service to the University.
"The committee voted unanimously that the University provided clear and convincing evidence, overall, to substantiate your dismissal with cause. I am upholding the University's initial decision to terminate you for adequate cause.
"My decision is final and this matter is now concluded."
[¶4] Cuozzo responded to Kennedy's letter and complained about "such a quick decision," alleging Kennedy failed to comply with the UND Faculty Handbook relating to dismissals which stated "[t]he president shall make a decision and provide written notice of the decision, including findings of fact and reasons or conclusions based on the hearing record." Kennedy replied to Cuozzo's complaint in an email:
"I am writing in response to your May 24, 2017 letter, which you provided as a written response to my decision to uphold the University's decision to terminate you for adequate cause.
"I fully considered the Standing Committee on Faculty Rights (SCoFR) report. As stated in my May 16, 2017 letter, the committee voted unanimously that the University provided clear and convincing evidence, overall, to substantiate your dismissal with cause. I relied on this finding of SCoFR in my decision to uphold the University's initial decision to terminate your [sic] for adequate cause. A finding that your behavior amounted to adequate cause for termination warrants a termination, not a resignation.
"My decision is final and this matter is now concluded. Please do not use UND letterhead for any future communications."
*755[¶5] Cuozzo sued UND and Kennedy claiming they breached his employment contract because Kennedy failed to review the hearing record and make his own findings and conclusions. On cross-motions for judgment on the pleadings, the district court dismissed the action, concluding as a matter of law that UND and Kennedy substantially complied with their obligations under the employment contract and, even if they had not complied, that Cuozzo would be unable to establish any damages resulted from the alleged breach.
II
[¶6] Cuozzo argues the district court erred in ruling UND and Kennedy substantially complied with their obligations under the employment contract.
[¶7] Because the parties and the court relied on matters outside the pleadings, we treat the motions for judgment on the pleadings under N.D.R.Civ.P. 12(b)(6) as motions for summary judgment under N.D.R.Civ.P. 56. See, e.g. , Mills v. City of Grand Forks ,
"Summary judgment is a procedural device under N.D.R.Civ.P. 56(c) for promptly resolving a controversy on the merits without a trial if there are no genuine issues of material fact or inferences that can reasonably be drawn from undisputed facts, or if the only issues to be resolved are questions of law. The party seeking summary judgment must demonstrate there are no genuine issues of material fact and the case is appropriate for judgment as a matter of law. In deciding whether the district court appropriately granted summary judgment, we view the evidence in the light most favorable to the opposing party, giving that party the benefit of all favorable inferences which can reasonably be drawn from the record. A party opposing a motion for summary judgment cannot simply rely on the pleadings or on unsupported conclusory allegations. Rather, a party opposing a summary judgment motion must present competent admissible evidence by affidavit or other comparable means that raises an issue of material fact and must, if appropriate, draw the court's attention to relevant evidence in the record raising an issue of material fact. When reasonable persons can reach only one conclusion from the evidence, a question of fact may become a matter of law for the court to decide. A district court's decision on summary judgment is a question of law that we review de novo on the record."
Dahms v. Nodak Mut. Ins. Co. ,
[¶8] Termination of university faculty members is governed by Board of Higher Education policies, rules and regulations adopted as part of its policy manual, and those provisions are part of the employment contract between the institution and the faculty member. See, e.g. , Ellis v. N.D. State Univ. ,
"11. The Committee's findings of fact, conclusions and recommendations, with *756supporting reasons, shall be reported, in writing, to the institution's president and the faculty member or the faculty member's representative. If the institution's action was a notice of dismissal and if the Committee concludes that adequate cause for dismissal has been established, but that a lesser penalty would be more appropriate, it may so recommend with supporting reasons. The president shall make a decision and provide written notice of the decision, including findings of fact and reasons or conclusions based on the hearing record, to the Committee and the faculty member within twenty calendar days of receiving the report. The faculty member or Committee may, within ten calendar days of the decision, submit a written response to the decision, to which the president may reply."
(Emphasis added.) Cuozzo does not argue that UND produced insufficient evidence to terminate him for cause or that Kennedy erred in not allowing him to resign. Rather, he contends his employment contract was breached because Kennedy failed to review the hearing record and make his own findings and conclusions.
[¶9] Generally, substantial compliance with the procedural requirements for termination is sufficient if their purpose is fulfilled. See Hom v. State ,
[¶10] In Stensrud a probationary nontenured instructor was terminated from employment.
[¶11] In Smith a terminated university professor claimed noncompliance with her department's evaluation procedures which required evaluations be given at the end of each semester, and her second evaluation occurred earlier.
[¶12] By contrast, in Hom a regulation required that a faculty member be given written reasons for a decision to terminate within seven days after the faculty member makes a request, and the university did not provide the faculty member reasons until more than seven months after her first request.
[¶13] In this case, we agree with the district court's summation of the regulation's purpose:
"[T]he purpose of the regulation is to ensure the due process rights of the employee. It appears to the Court that the reasons for the regulations ... is to ensure that faculty members are put on notice, are fully aware of the allegations supporting the termination, to ensure they are given a chance to have a fair hearing before the SCOFR, and to make sure the president of the university reviews and analyzes the facts and recommendation from the SOCFR [sic] and makes a final decision based upon the record."
[¶14] Although the determination of whether conduct is in substantial compliance with a regulation is ordinarily a question of fact, where the facts are undisputed, the issue becomes a question of law. See Stensrud ,
[¶15] Because the Board of Higher Education is a constitutionally created body which invokes the separation of powers between the executive and judicial branches of government, we apply a limited standard of review to its decisions akin to our standard of review for administrative agency decisions. See Ellis ,
"An electronic recording of the hearing was available for review by the Executive Director. The Executive Director stated in his findings, conclusions, and decision that 'the evidence of record in this proceeding has been considered and appraised. The recommended findings of fact and conclusion of law submitted by the hearing officer have been thoughtfully and carefully examined and are not adopted in this instance.' Other than this statement, the record does not reflect the extent of the Executive Director's review."
"The administrive officer deciding a case need not actually hear the witnesses testify or hear oral argument, but the officer deciding the case must consider and appraise the evidence before reaching a decision. Morgan v. United States ,298 U.S. 468 ,56 S.Ct. 906 ,80 L.Ed. 1288 (1936) ; 3 Davis, Administrative Law, § 17:2 (2d Ed. 1980). Although a hearing examiner has the advantage of hearing and seeing witnesses testify, an agency may reject the examiner's decision even on a question involving the credibility of contradictory witnesses. 3 Davis, Administrative Law, § 17:16. A court's review of an agency decision does not include probing an agency decisionmaker's mental process if a hearing was given as required by law. Morgan v. United States ,304 U.S. 1 ,58 S.Ct. 773 ,82 L.Ed. 1129 (1938) ; 3 Davis, Administrative *758Law, § 17:16; Annot.,18 A.L.R.2d 606 , 623 (1951).
"The record reflects that a hearing was conducted as required by law and that the Executive Director stated that he considered and appraised the hearing officer's findings and conclusions. Simply because the Executive Director rejected the hearing officer's recommendation does not imply that the Executive Director did not consider and appraise the record. Section 31-11-03(15), N.D.C.C., provides a rebuttable presumption that an official duty has been performed regularly. Nothing in the record rebuts the presumption that the Executive Director regularly performed his duty and considered and appraised the record. We do not believe it is appropriate to probe the Executive Director's mental process in arriving at his decision. Our inquiry is limited to a review of the findings, conclusions, and decision of the agency under the appropriate standard of review."
Id. at 892. See also Houn v. Workforce Safety and Ins. ,
[¶16] Kennedy did not provide written "findings of fact and reasons or conclusions based on the hearing record," as required by the regulation. Nor did Kennedy expressly adopt the Standing Committee's findings and conclusions. However, Kennedy's initial decision and his response to Cuozzo's objection can only be interpreted as an adoption of the Standing Committee's findings and conclusions that clear and convincing evidence supported Cuozzo's termination for cause. Cuozzo does not dispute any of the Standing Committee's findings and conclusions. The regulation's purpose requiring a university president to make a final decision based on the evidence is not affected by the president's adoption of the Standing Committee's findings and conclusions. To hold Cuozzo's termination improper and remand this case for preparation of written findings and conclusions would under the circumstances exalt form over substance. See, e.g., Quarles v. McKenzie Pub. Sch. Dist. No. 34 ,
[¶17] We conclude Kennedy and UND substantially complied with their contractual obligations in terminating Cuozzo's employment.
III
[¶18] Because of our disposition of this case, it is unnecessary to address other arguments raised. The judgment is affirmed.
[¶19] Daniel J. Crothers
Lisa Fair McEvers
Jon J. Jensen
Gerald W. VandeWalle, C.J.
Reference
- Full Case Name
- Dr. Frank P. CUOZZO, Plaintiff and Appellant v. STATE of North Dakota D/B/A University of North Dakota, and Its President, Mark R. Kennedy, Defendants and Appellees
- Cited By
- 6 cases
- Status
- Published
- Syllabus
- Board of Higher Education policies, rules and regulations adopted as part of its policy manual govern termination of university faculty members and are part of the employment contract between the institution and the faculty member. Generally, substantial compliance with the procedural requirements for termination is sufficient if their purpose is fulfilled. The separation of powers doctrine does not permit judicial examination of the adequacy of a university president's review of the record.