Cummings v. Dean
Opinion
*1231 Jason Dean, director of the Labor Relations Division of the New Mexico Department of Workforce Solutions ("DWS"), raises this appeal from the district court's denial of qualified immunity against the claim that he violated Plaintiffs' constitutional rights to substantive due process by failing to issue prevailing rates for wages and fringe benefits as required by New Mexico law.
In the action below, Plaintiffs, individuals who worked on public works projects in New Mexico, filed claims under
Defendants filed a motion to dismiss, claiming qualified immunity. The district court granted it in part and denied it in part. Specifically, the district court granted the motion in its entirety as to Secretary Bussey, and as to Plaintiffs' procedural due-process claim against Director Dean. However, the court denied the motion with respect to Director Dean on Plaintiffs' substantive due-process claim.
Both parties now appeal from the district court's ruling. In Case No. 17-2072, Director Dean appeals from the court's denial of qualified immunity as to Plaintiffs' substantive due-process claim, while in Case No. 17-2079, Plaintiffs cross-appeal the district court's dismissal of (1) their claims against Secretary Bussey, and (2) their claim against Director Dean for violation of their procedural due-process rights.
For the reasons stated below, we dismiss Plaintiffs' cross-appeal, Case No. 17-2079, for lack of jurisdiction, and reverse and remand the district court's denial of qualified immunity as to Director Dean on Plaintiffs' substantive due-process claim in Case No. 17-2072.
I
We first present the state statutory context for Plaintiffs' claims and then review the relevant facts.
A
Every contract for public works in New Mexico in excess of $60,000-including those involving construction and demolition-is required to state the minimum wages and fringe benefits for all tradespeople that work on a particular project. The director of the Labor Relations Division of DWS ("the director") is tasked with publishing a schedule of minimum wages and fringe benefits for such laborers and mechanics. Generally, Plaintiffs are individuals who worked on public-works projects in New Mexico during the three years prior to the date of the filing of their lawsuit on August 23, 2016.
Prior to 2009, § 13-4-11(B) of the Act provided:
[The director] shall conduct a continuing program for the obtaining and compiling *1232 of wage-rate information and shall encourage the voluntary submission of wage-rate data by contractors, contractors' associations, labor organizations, interested persons and public officers. Before making a determination of wage rates for any project, the director shall give due regard to the information thus obtained. Whenever the director deems that the data at hand are insufficient to make a wage determination, the director may have a field survey conducted for the purpose of obtaining sufficient information upon which to make [a] determination of wage rates. Any interested person shall have the right to submit to the director written data, views and arguments why the wage determination should be changed.
N.M. STAT. ANN. § 13-4-11(B) (West 2005). In 2009, § 13-4-11(B) of the Act was amended to state:
The director shall determine prevailing wage rates and prevailing fringe benefit rates for respective classes of laborers and mechanics employed on public works projects at the same wage rates and fringe benefit rates used in collective bargaining agreements between labor organizations and their signatory employers that govern predominantly similar classes or classifications of laborers and mechanics for the locality of the public works project and the crafts involved; provided that:
(1) if the prevailing wage rates and prevailing fringe benefit rates cannot reasonably and fairly be determined in a locality because no collective bargaining agreements exist, the director shall determine the prevailing wage rates and prevailing fringe benefit rates for the same or most similar class or classification of laborer or mechanic in the nearest and most similar neighboring locality in which collective bargaining agreements exist;
(2) the director shall give due regard to information obtained during the director's determination of the prevailing wage rates and the prevailing fringe benefit rates made pursuant to this subsection;
(3) any interested person shall have the right to submit to the director written data, personal opinions and arguments supporting changes to the prevailing wage rate and prevailing fringe benefit rate determination; and
(4) prevailing wage rates and prevailing fringe benefit rates determined pursuant to the provisions of this section shall be compiled as official records and kept on file in the director's office and the records shall be updated in accordance with the applicable rates used in subsequent collective bargaining agreements.
N.M. STAT. ANN. § 13-4-11(B) (West 2009) [hereinafter "the 2009 Amendments"].
The 2009 Amendments had the primary effect of requiring the director to determine the prevailing rates based on the wage rates and fringe-benefit rates used in collective bargaining agreements ("CBAs"), as opposed to the earlier version of the statute's mandate to simply collect data for the "purpose of obtaining sufficient information upon which to make [a] determination of wage rates." N.M. STAT. ANN. § 13-4-11(B) (West 2005); see also Aplt.'s App. at 151-52 (Mem. Op. & Order, dated Apr. 20, 2017).
B
By April 2011-almost two years after the 2009 Amendments came into force-the director still had not set prevailing-wage rates according to the CBAs. The
*1233
New Mexico Building and Construction Trades Council ("NMBCTC"), "an alliance of craft unions" that represent New Mexico public workers,
N.M. Bldg. & Constr. Trades Council v. Dean
,
Despite this assurance from the secretary's counsel, the secretary did not set new prevailing wage or prevailing benefit rates, even though in 2012 she oversaw the promulgation of new regulations and the amendment of others as required by the Act.
Pursuant to [N.M. CODE R. § 11.1.2.17(B)(1) ], Appellant waives its right to stay the effectiveness of the new rules through the filing of this appeal as those rules relate to the determination of new prevailing rates to replace the rates currently in effect.... Appellant desires the Department to update the prevailing rates in some manner as soon as possible given that the current rates are based on 2009 data and have not been updated for more than two years. If necessary, Appellant requests the Commission to waive the automatic stay as herein described as well.
Aplt.'s App. at 106 (Ex. E, Notice of Appeal, dated Mar. 27, 2012). The LIC denied the NMBCTC's challenge, and the NMBCTC appealed that decision to the state district court. The LIC did not act to lift the automatic stay at any point during these proceedings.
While the appeal to the state district court was pending, and in light of the director's continued failure to determine updated rates, the NMBCTC filed a second Petition for Writ of Mandamus in the New Mexico Supreme Court in 2015. The NMBCTC again requested that the New Mexico Supreme Court order the director to determine the rates as required under the Act. The court this time granted the writ, stating:
We hold that under the Act the Director has a mandatory, nondiscretionary duty to set the same prevailing wage and prevailing benefit rates as those negotiated in applicable CBAs and that the Director's failure to do so violates the Act. We therefore issue a writ of mandamus ordering the Director to comply with the Act and set rates in accordance with CBAs as required under the Act within thirty days of the issuance of this opinion.
Dean
,
C
Plaintiffs filed the present suit in federal court alleging that they suffered financial harm due to Defendants' failure to determine *1234 the prevailing rates in accordance with the 2009 Amendments. Specifically, they allege that the wages and benefits they received, which were based on the pre-2009 Amendment determinations, "were less than would have been received had Defendants issued prevailing wage rate and prevailing fringe benefit determinations in accordance with the ... Act as amended in 2009." Aplt.'s App. at 44 (First Am. Compl., dated Aug. 23, 2016).
Pursuant to Federal Rule of Civil Procedure 12(c) (" Rule 12(c)"), Defendants sought judgment on the pleadings with respect to Plaintiff's amended complaint-the operative complaint for our purposes-on qualified-immunity grounds. The district court granted the motion in its entirety with respect to Secretary Bussey since Plaintiffs had failed to allege the necessary " 'affirmative link' demonstrating that Bussey authorized or approved of Dean's noncompliance with the Act." Aplt.'s App. at 159 (quoting
Dodds v. Richardson
,
The court then considered Plaintiffs' constitutional claims against Director Dean. With respect to the procedural due-process claim, the court first determined that Plaintiffs had a protected property interest in CBA-level rates under the Act, giving rise to restrictions on the director's discretion in determining prevailing rates. However, the court noted that "more is required-Plaintiffs must show that they were deprived of the [property] interest without an adequate process by which they could obtain review of the deprivation." Id. at 160 (emphasis added). The court then stated that Plaintiffs failed to establish that the processes available to challenge the director's inaction were constitutionally inadequate, in part because Plaintiffs did "not allege anywhere in the Complaint that they lacked the opportunity to challenge the 2009 rates used by the Director." Id. at 160-61. Accordingly, the court dismissed the procedural due-process claim against Director Dean.
The district court denied Defendants' motion to dismiss Plaintiffs' substantive due-process claim against Director Dean, however. The court reasoned that the failure to set new rates, despite the assurance provided by the secretary's counsel during oral arguments before the New Mexico Supreme Court, was sufficient to show that the director deliberately and arbitrarily deprived Plaintiffs of a protected property right. Furthermore, the court stated the director violated clearly-established law by depriving Plaintiffs of the wages and benefits to which they were entitled under the Act. According to the court, Plaintiffs' right to CBA-based wages and benefits was clearly established by the statute itself given that the plain language of the 2009 Amendments was susceptible to only one reading-"that it guarantees that [the] minimum wage and benefit rates must be equivalent to the rates negotiated in CBAs." Id. at 166.
Director Dean appealed, and Plaintiffs cross-appealed the dismissal of their claims against Secretary Bussey and their procedural due-process claim against Director Dean.
II
As in every matter, we must consider whether we have jurisdiction over all aspects of this appeal.
See
Cellport Sys., Inc. v. Peiker Acustic GMBH & Co. KG
,
A
With respect to Director Dean's appeal in Case No. 17-2072, we exercise jurisdiction over the district court's denial of his qualified-immunity defense pursuant to
*1235
B
Our jurisdiction to hear Plaintiffs' cross-appeal in Case No. 17-2079 is less clear. We ultimately conclude that we do not have jurisdiction to hear this appeal.
We normally lack jurisdiction over a partial dismissal of a complaint because such dismissals do not constitute final, appealable decisions under § 1291.
See
McBride v. CITGO Petroleum Corp.
,
Our exercise of pendent jurisdiction is "
only
appropriate" in either of two scenarios: (1) "when 'the otherwise nonappealable decision is inextricably intertwined with the appealable decision,' " or (2) "where review of the nonappealable decision is necessary to ensure meaningful review of the appealable one."
Crowe & Dunlevy, P.C. v. Stidham
,
Plaintiffs face several obstacles in establishing pendent jurisdiction over their cross-appeal. First, the exercise of pendent jurisdiction is generally disfavored as applied to cases in which primary appellate jurisdiction is based on the denial of qualified immunity.
See
Cox
,
Moreover, Plaintiffs' briefing does not adequately support their assertion that we may exercise pendent jurisdiction over their claims. And it is beyond peradventure that it is Plaintiffs' burden to make such a jurisdictional showing.
See, e.g.
,
Raley v. Hyundai Motor Co.
,
Finally, even were we to overlook Plaintiffs' failure to argue within the pendent-jurisdiction framework, we would conclude that their claims do not present either of the two scenarios where pendent jurisdiction may be appropriately exercised. With respect to Plaintiffs' appeal of the district court's dismissal of all claims against Secretary Bussey, the relevant question on appeal is whether Plaintiffs' amended complaint adequately identified an "affirmative link" between Secretary Bussey and the alleged deprivations in this case. Pls.' Resp. Br. at 26. It is manifest that this question is not "inextricably intertwined" with the appealable issue before us, i.e., whether Director Dean is entitled to qualified immunity as to Plaintiffs' substantive due-process claim.
Crowe & Dunlevy
,
Our jurisdiction over Plaintiffs' appeal from the dismissal of their procedural due-process claim against Director Dean proves to be a closer call, but our conclusion is the same. It is axiomatic that procedural and substantive due-process claims require distinct analyses, undermining the notion that this pendent claim and the appealable claim are inextricably intertwined or that we must review the procedural claim in order to adequately address the substantive due-process claim that is properly before us.
See
Cleveland Bd. of Educ. v.Loudermill
,
And though there is often some overlap between the two analyses when substantive and procedural due-process claims are raised together based on the same facts,
see
Becker v. Kroll
,
Thus, given our general disfavor of pendent jurisdiction in the qualified-immunity context,
see
Bryson
,
III
We next turn to the issue properly before us on appeal: whether the district court erred in denying Director Dean qualified immunity against Plaintiffs' substantive due-process claim. We first lay out the familiar motion-to-dismiss and qualified-immunity standards of review before concluding that the district court erred in denying Director Dean's qualified-immunity defense. More specifically, we hold that the Plaintiffs have failed to carry their burden of showing that Director Dean's actions violated clearly-established federal law.
A
1
"A motion for judgment on the pleadings under Rule 12(c) is treated as a motion to dismiss under Rule 12(b)(6)."
Atl. Richfield Co. v. Farm Credit Bank of Wichita
,
"To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face."
Emps.' Ret. Sys. of R.I. v. Williams Cos., Inc.
,
*1239 2
The qualified-immunity doctrine protects public employees from both liability and "from the burdens of litigation" arising from their exercise of discretion.
Allstate Sweeping, LLC v. Black
,
We may address the two prongs of the qualified-immunity analysis in either order: "[I]f the plaintiff fails to establish either prong of the two-pronged qualified-immunity standard, the defendant prevails on the defense."
A.M. v. Holmes
,
"A clearly established right is one that is 'sufficiently clear that every reasonable official would have understood that what he is doing violates that right.' "
Mullenix v. Luna
, --- U.S. ----,
In furthering the protective aims of qualified immunity, it is important that courts be especially sensitive to the need to ensure "a substantial correspondence between the conduct in question and prior law allegedly establishing that the defendant's actions were clearly prohibited,"
Estate of B.I.C.
,
Specifically, the standard for liability for a violation of a person's substantive due-process rights is broad and general.
See
Washington v. Glucksberg
,
*1241
J.B. v. Washington Cty.
,
Thus, in our assessment here of whether Director Dean's conduct violated Plaintiffs' clearly-established substantive due-process rights, we must be especially sensitive to whether existing relevant precedents at the time he acted "squarely govern[ed],"
Mullenix
,
B
Director Dean challenges the district court's conclusion as to both prongs of the qualified-immunity analysis, i.e., that he violated Plaintiffs' substantive due-process rights and that he did so in violation of clearly-established federal law. We agree with Director Dean that he did not violate clearly-established federal law and thus conclude that he is entitled to the defense of qualified immunity. However, we first address Plaintiffs' argument that the qualified-immunity defense is unavailable because Director Dean's obligation to set CBA-based rates was a ministerial duty, rather than a discretionary function of his position.
1
Qualified immunity only shields an official in the exercise of his or her discretion.
See
Riggins v. Goodman
,
We agree with Director Dean that his duty to publish prevailing rates involved substantial discretion as that term applies in the federal qualified-immunity context, and that he therefore may avail himself of the qualified-immunity defense. Director Dean's implementation of the Act required him to interpret the language of a state statute. And although the New Mexico Supreme Court eventually held that Defendants' interpretation was contrary to the 2009 Amendments,
see
Dean
,
The Supreme Court made this clear in
Davis v. Scherer
,
*1242
Similarly, the Act left to Director Dean a substantial measure of discretion in interpreting its terms. The Act requires the director to establish prevailing rates "at the same wage rates and fringe benefit rates used in collective bargaining agreements," but leaves to the director substantial discretion to determine the method of collecting and aggregating data, and , perhaps most importantly for our present inquiry, the timetable for doing so. N.M. STAT. § 13-4-11(B) (West 2009).
Notably, Plaintiffs fail to cite any caselaw addressing federal qualified immunity that would support a contrary result. And though the New Mexico Supreme Court held that "the Director has a mandatory, nondiscretionary duty to set the same prevailing wage and prevailing benefit rates as those negotiated in applicable CBAs,"
Dean
,
Director Dean's interpretation and implementation of the Act were therefore matters within his discretion, and he is protected from liability under § 1983 unless his conduct violated clearly-established federal law.
2
Turning finally to the issue of whether Director Dean is entitled to qualified immunity under the circumstances giving rise to this § 1983 suit, we conclude that his actions did not violate clearly-established federal law. Specifically, we conclude that Plaintiffs have failed to meet the second prong of the qualified-immunity analysis-i.e., Plaintiffs have failed to identify clearly-established law that would have put Director Dean on notice that his conduct would give rise to liability under federal law-and thus we need not reach the first prong of the qualified-immunity analysis, i.e., whether Director Dean's conduct in fact violated Plaintiffs' rights to substantive due process.
See
A.M.
,
The district court denied qualified immunity based upon a finding that "the Act *1243 clearly and unambiguously required the Director to set prevailing wage rates according to CBAs." Aplt.'s App. at 165. Plaintiffs rely on this reasoning and urge us to affirm.
But the district court's reasoning is flawed because it equates a violation of a clear obligation under
state
law
4
with a violation of clearly-established
federal
law. Whether Director Dean violated clearly-established state law in failing to set CBA-based rates, however, is an entirely separate question from whether that failure violated clearly-established federal law. And even if Director Dean had notice that his reading of the Act was incorrect as a matter of
state
law, this would not necessarily deprive him of qualified immunity from liability under
federal
law.
See
Davis
,
Neither the district court nor Plaintiffs have identified any case from the Supreme Court or this court finding a defendant liable under federal law in factually similar circumstances, i.e., where a public official in the same or similar position as Director Dean was held liable under federal law for failing to set rates for wages and fringe benefits (or for similar items) in apparent contravention of state law that required him to do so. Given that Plaintiffs bear the burden of presenting such a case to overcome qualified immunity,
see
Gutierrez v. Cobos
,
Instead, Plaintiffs cite two factually inapposite cases in arguing that the Act created a clearly-established right for purposes of qualified immunity by virtue of its "clear and unambiguous" description of Director Dean's duties. These cases, however, do not speak to the legal issue present *1244 here and are without controlling force in this circuit.
The first is
Gardner v. Williams
,
Furthermore, even focusing on the merits,
Gardner
lends Plaintiffs little succor. There, a panel of the Sixth Circuit concluded that a state trooper had violated an individual's clearly-established Fourth Amendment rights by arresting him without probable cause given that it was "unambiguous and not reasonably open to an alternative interpretation" that the state statutes used to justify the arrest were inapplicable.
The second case Plaintiffs cite is
Brooks v. George County
,
Because Plaintiffs have offered no authority clearly establishing that Director Dean violated their substantive due-process rights under federal law by failing to discharge his state-law obligation under the Act to publish CBA-based rates for wages and fringe benefits, we conclude that Director Dean is entitled to qualified immunity. 5
IV
For the reasons discussed above, we DISMISS Plaintiffs' appeal of the grant of qualified immunity in Case No. 17-2079 for lack of jurisdiction, and we REVERSE the district court's judgment in Case No. 17-2072 and REMAND the case and instruct the court to grant Director Dean qualified immunity with respect to Plaintiffs' substantive due-process claim.
To avoid confusion in this consolidated appeal and cross-appeal, we refer to the parties' briefs as follows:
• Defendant/Appellant Jason Dean's Brief in Chief = Def.'s Opening Br.
• Appellees' Principal and Response Brief = Pls.' Resp. Br.
• Defendant/Appellant Jason Dean's and Defendant/Cross-Appellee's Response and Reply Brief = Defs.' Reply Br.
• Appellees' Reply Br. = Pls.' Reply Br.
Rather, Plaintiffs assert without analysis that this court "has pend[e]nt jurisdiction" over their claims in light of
Primas v. City of Oklahoma City
,
The director did not address pendent jurisdiction in his briefing. Unlike Plaintiffs' failure to argue within the pendent-jurisdiction framework, however, the director's "silence on the matter is of no moment,"
Cox
,
Director Dean argues, in his opening brief, that he followed a "normal process" by refraining from implementing the Act during the pendency of the challenge before the LIC. Def.'s Opening Br. at 27. In a single sentence, he argues that "state law was ambiguous at the time," given that an appeal to the LIC typically activates an automatic stay,
However, during oral arguments before this court, Director Dean's counsel conceded that there was no confusion regarding the director's state-law obligations-irrespective of whether a stay was in effect-once the secretary's counsel represented to the New Mexico Supreme Court that DWS would update the prevailing rates. Thus, we deem any argument that the director's obligation under state law was ambiguous as either waived due to inadequate briefing on appeal or abandoned by counsel's affirmative admission during oral argument,
see
United States v. Cooper
,
Since our inquiry here solely concerned whether Director Dean violated clearly-established
federal
law for purposes of determining whether he is entitled to qualified immunity from liability under federal law,
see
Davis
,
Reference
- Full Case Name
- Randy CUMMINGS ; Cruz Gallegos ; Robert J. Garcia ; Richard Gonzales; Eloy A. Jaramillo; David Larranaga; Joseph Lopez; Rick Lopez ; David Montano; Angelo Rinaldi ; Chris Sweeney ; Josh Tillinghast; Tomas Trujillo; Jeffrey S. Wade; Joshua Hoselton; Charles W. Lees; Jaime Marquez ; Robert Mendoza; Armando Anchondo; Gustavo Berrospe; Reyes Cabriales; Sergio Escobedo ; Jason Head; Nick Hinojos; Robert G. Hitzman; Michael Lopez; Jose Rodriguez; Sergio A. Rojo; Richard Tenorio; Cesar Torres ; Grant Willis; Harold Brown; Rene Carrillo; Henry Nez, Jr.; Kurt Johnson; Jesus Aguilar-Murillo; Martin F. Alvarez; Arthur Archuleta; Enrique Corona; Ronald Hubbard ; Andrew M. Lugo; Henry Lujan ; David Carr; D. Jeremiah Cordova; Kevin Charvea; Nathan Espalin; Levi Gutierrez; Dennis Moore; Robert Moreno ; Levi Olivas; Thomas D. Payne; Bryan Wheeler, on Behalf of Themselves and All Others Similarly Situated, Plaintiffs-Appellees/Cross-Appellants, v. Jason DEAN, as the Director of the Labor Relations Division of the New Mexico Department of Workforce Solutions, in His Individual Capacity, Defendant-Appellant/Cross-Appellee and Celina Bussey, Secretary of the New Mexico Department of Workforce Solutions, in Her Individual Capacity, Defendant/Cross-Appellee.
- Cited By
- 186 cases
- Status
- Published