Rayford v. Cmty. Dev. Auth. of Madison
Rayford v. Cmty. Dev. Auth. of Madison
Opinion of the Court
¶1 Charles Rayford received housing assistance benefits through a federal program administered by the Community Development Authority of the City of Madison (CDA). Because of a program rule violation by Rayford, the CDA notified Rayford that his benefits would be terminated. Rayford appealed that decision, and a hearing officer upheld the CDA's decision to terminate Rayford's benefits. Rayford brought a certiorari action in circuit court, and the court remanded for a second hearing. Upon remand, the hearing officer again upheld the CDA's decision to terminate Rayford's benefits. Rayford filed a second certiorari action, and the circuit court again remanded the matter. This time a different hearing officer reversed the CDA's termination decision and ordered that Rayford's benefits be commenced again.
¶2 Having ultimately prevailed in obtaining reinstatement of his benefits, Rayford initiated, pursuant to
BACKGROUND
¶3 There is no material dispute as to the following facts.
¶4 The CDA is a body politic authorized to operate and administer a federal low-income housing program commonly known as the "Section 8 Program." Rayford has been a participant in that program.
¶5 In 2013, the CDA notified Rayford that he would be terminated from the Section 8 Program for violating a program rule, the details of which are not pertinent to this appeal. Rayford exercised appeal rights available to him, and an "informal hearing" was held before a hearing officer designated by the CDA. At that hearing, Rayford challenged the CDA's decision that, because of the rule violation, he should be terminated from the Section 8 Program. More particularly, Rayford argued to the hearing officer that termination of his benefits was disproportionate to the rule violation because of mitigating factors noted in
¶6 Rayford filed a certiorari action against the CDA to challenge the hearing officer's decision. Judge Peter Anderson
¶7 On remand, the hearing officer issued a second written decision and again upheld the CDA's decision to terminate Rayford's Section 8 benefits. The hearing officer stated in her second decision that it was her understanding that it was not the hearing officer but the CDA that is responsible, in its initial decision to terminate Rayford's benefits, for weighing the relevant mitigating factors under
¶8 Rayford commenced a second certiorari action against the CDA. In that action, Rayford sought reversal of the hearing officer's second decision arguing that the hearing officer did not comply with the previous order from Judge Anderson and the requirements of
¶9 The new hearing officer issued a decision concluding that "[u]nder all of the circumstances, Mr. Rayford's failure to [comply with program rules] does not warrant termination of his participation in the Section 8 housing assistance program." As a result of that decision, the CDA restarted Rayford's Section 8 benefits.
¶10 Rayford commenced this action against the CDA pursuant to
¶11 Based on competing summary judgment motions, Judge Genovese concluded that Rayford's right to due process was not violated because: (1) the acts of the hearing officer were random and unauthorized; and (2) Rayford had an adequate post-deprivation remedy of certiorari review in the state court. Rayford now appeals.
¶12 We will mention other pertinent facts in the discussion that follows.
DISCUSSION
I. Summary Judgment and Standard of Review.
¶13 Summary judgment must be granted when there is no genuine issue of material fact and a party is entitled to judgment as a matter of law. WIS. STAT . § 802.08(2) (2017-18).
II. Preliminary Matters.
¶14 Rayford contends, and Judge Anderson determined in each of the two certiorari actions, that pursuant to
¶15 The CDA advances other arguments that we need not reach because we resolve this appeal on other grounds. Those arguments can be summarized as follows.
¶16 The CDA asserts that
¶17 Next, the CDA contends that Judge Anderson's decision in the first certiorari lawsuit was confusing and, for that reason, the hearing officer was unsure what Judge Anderson ordered the hearing officer to do when the case was remanded. We assume without deciding that, in the first certiorari action, Judge Anderson's order and his directions to the hearing officer were not confusing.
¶18 The CDA further argues that, on remand after the first certiorari action, the hearing officer applied the mitigating factors in
¶19 The CDA also asserts that it is not legally responsible for the hearing officer's actions. We will assume, without deciding, that there is no material distinction for purposes of our analysis between the hearing officer and the CDA, and the CDA may be legally responsible for the hearing officer's actions.
III. Procedural Due Process Claims Under
¶20 A claim made pursuant to
¶21 "The [procedural component of the] Due Process Clause does not prevent states from depriving persons of their life, liberty or property." Jones ,
¶22 Generally, the due process clause requires a hearing before a deprivation occurs. Irby ,
¶23 For those reasons, our supreme court has held that "the existence of postdeprivation process defeated the constitutional [procedural due process] claim when a state employee's actions were random and unauthorized." See
IV. Rayford's Procedural Due Process Claim.
¶24 Rayford argues that he suffered a deprivation without due process. More specifically, Rayford contends that the deprivation was the second decision of the hearing officer to affirm Rayford's termination of his housing program benefits. Rayford contends that the lack of due process emanates from the failure of the hearing officer to abide by Judge Anderson's directive that the hearing examiner consider mitigating factors. Under the due process principles we have set forth above, for Rayford to succeed this failure of the hearing officer to abide by Judge Anderson's directive must not be random and unauthorized, and the post-deprivation remedy of certiorari review must be inadequate.
¶25 The CDA argues that Rayford's due process rights were not violated because: (1) the CDA's activities complained of were random and unauthorized; and (2) the availability of certiorari review in state court was a sufficient post-deprivation remedy for Rayford. We discuss, first, whether the CDA's actions were random and unauthorized and then consider whether certiorari review was an adequate post-deprivation remedy.
V. Random and Unauthorized.
¶26 A loss of a property interest "as a result of a random and unauthorized act by a state employee," which by definition is not a loss resulting from an "established state procedure," is beyond the state's control and cannot be predicted. Parratt ,
¶27 An act of a state employee is random if it was "impossible for the state to predict the action." Id. at 916. Also, "[t]he question of 'predictability'-i.e., the question of whether a state actor's conduct can be deemed 'random' from the point of view of the state-does not turn simply on whether that official exercises a certain degree of discretion." Easter House ,
¶28 On the question of authorization, the applicable regulations are considered in determining whether an act is "authorized" in the sense the term is used in Parratt and Hudson . Collins v. City of Kenosha Hous. Auth. ,
A. Whether the Hearing Officer's Action Was Random.
¶29 As discussed, whether an action is random is determined with respect to whether the action was predictable. Easter House ,
¶30 Rayford's predictability argument fails. Rayford points to no regulation (or policy) of the CDA that meets the definition of "established state procedure" that caused Rayford's loss. In other words, Rayford points to no established procedure in the form of a regulation that calls for a hearing officer not to follow a court order. See
B. Whether the Hearing Officer's Failure Was Authorized.
¶31 As best we can tell, Rayford argues that the second hearing officer decision was "authorized" because the CDA supervisor understood Judge Anderson's decision but did not reverse the hearing officer's decision. Although the CDA supervisor has the authority to reverse a hearing officer's decision which is "[c]ontrary to HUD regulations or requirements, or otherwise contrary to federal, State, or local law" under
¶32 Moreover, determining whether a hearing officer's actions are "authorized" in this context is a matter of looking to applicable federal regulations. See Collins ,
¶33 Therefore, we reject Rayford's argument that the CDA's complained-of conduct was not "random and unauthorized."
VI. Adequate Post-Deprivation Remedy.
¶34 We now consider whether the post-deprivation remedy of certiorari review is adequate. See Irby ,
¶35 Wisconsin courts have held that certiorari review is an adequate post-deprivation remedy. See, e.g. , Irby ,
¶36 Rayford argues that certiorari review was a meaningless or nonexistent remedy for him. Specifically, Rayford contends that, because the hearing officer did not follow Judge Anderson's order from the first certiorari action, there was a "defect ... in the established state procedure" which in turn "destroyed" Rayford's due process rights. Regardless of the conclusory labels in Rayford's argument, we determine that, under any applicable definitions of the words "meaningless" or "nonexistent," certiorari review as applied here cannot be readily characterized as either meaningless or nonexistent. Plainly, the process afforded Rayford existed and was not meaningless because he ultimately obtained the restoration of his benefits. To determine whether a remedy is meaningless or nonexistent requires consideration of the totality of the circumstances not, as Rayford asserts, viewing only part of the process in isolation.
¶37 The facts and holding in Irby confirm that Rayford's argument must be rejected. Irby was charged with prison rules violations. Irby ,
When the [committee] allegedly failed a second time to follow the mandated procedural rules, Irby once again had the option of challenging its decision with a petition for certiorari review. The fact that Irby chose not to petition for certiorari review does not, in our opinion, indicate that option's inadequacy .
¶38 The parallels between pertinent facts in Irby and this case, and the holding in Irby , confirm our conclusion that certiorari review was an adequate post-deprivation remedy for Rayford. After the CDA's initial determination to terminate his benefits, Rayford requested an "informal hearing" before a hearing officer. Rayford lost at that hearing, filed his first certiorari action, and prevailed in the circuit court. After remand, the hearing officer issued a second decision, and Rayford again lost. Rayford contends that, at the point of the hearing officer's second decision, his due process rights were violated because the need to file a second certiorari lawsuit caused certiorari review to be an inadequate remedy. However, as quoted, Irby holds that when persons in the position of Irby and Rayford must petition for certiorari review a second time because an agency has again erred, that does not cause certiorari review to be an inadequate remedy for due process purposes. See
¶39 In sum, we conclude that certiorari review was not an inadequate state remedy available to Rayford and, because we reject Rayford's argument that the CDA's actions were not random and unauthorized, Rayford's constitutional rights were not violated by the CDA.
VII. Custom or Policy.
¶40 Finally, Rayford argues that his due process rights were violated solely because of an alleged "custom or policy" of the CDA. According to Rayford, an example of a custom or policy violated was the CDA supervisor's custom of not reviewing hearing officer decisions on benefits termination. However, in a § 1983 action alleging a violation of due process rights by a municipality, the municipality is not liable until, first, it is demonstrated that there is a due process constitutional violation. The municipality is liable only if it is then determined that a custom or policy of the municipality approved or allowed the constitutional violation. See, e.g. , Monell v. Department of Soc. Servs. of New York ,
CONCLUSION
¶41 For those reasons, we affirm the circuit court's grant of summary judgment in favor of the Community Development Authority of the City of Madison dismissing Rayford's claims.
By the Court. -Judgment affirmed.
This opinion will not be published. See WIS. STAT. RULE 809.23(1)(b)5.
The Honorable Peter Anderson presided over the two certiorari actions initiated by Rayford. The Honorable Julie Genovese presided over this case. For clarity, we will refer to each circuit court judge by name.
All citations to the United States Code are to the 2012 version unless otherwise noted.
The parties do not dispute that, pursuant to federal law, Rayford's Section 8 housing benefits could not be restored retroactively to the date of the CDA's initial decision to terminate his benefits. Although Rayford does not directly seek retroactive benefits, the damages he seeks in this action would, effectively, include compensation for the loss of benefits for a portion of the time Rayford was denied benefits by the CDA.
All references to the Wisconsin Statutes are to the 2017-18 version unless otherwise noted.
This holding applies to deprivations of either liberty or property rights. Jones v. Dane Cty. ,
The underlying rationale of Parratt v. Taylor ,
Authorities which refer to the "state" are applicable in these circumstances because the CDA has agreed it was acting under color of state law. See ¶20, above.
This court previously concluded that Irby v. Macht ,
Notably, Rayford does not focus on the proposition that the certiorari proceedings were meaningless with respect to his ability to obtain a remedy for any portion of the time he was denied benefits. Accordingly, Rayford provides no developed argument on this topic. Still, we observe that any argument along this line would likely fail. We do not decide the issue, but we note that a state remedy need not afford the opportunity to receive damages to be "adequate" under
Case-law data current through December 31, 2025. Source: CourtListener bulk data.