Figueroa v. Housing Authority

Citations: 131 Cal. App. 3d 528; 182 Cal. Rptr. 497; 1982 Cal. App. LEXIS 1583Docket: Civ. 48245

Court: California Court of Appeal; May 7, 1982; California; State Appellate Court

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Felix Figueroa, an employee of the Housing Authority of the County of Santa Cruz, was terminated without due process on March 13, 1979, following allegations of insubordination and other misconduct. After a generally satisfactory employment record, including a completed probationary period, Figueroa was informed of his termination without prior notice or a hearing. Following the termination, he received a written statement detailing the reasons for his dismissal, which included unauthorized actions and conflicts with supervisors. 

Figueroa requested an appeal, leading to public hearings held by the Housing Authority's board on June 11 and 20, 1979. During these hearings, he was allowed to present witnesses, but the executive director did not present evidence to justify the termination. The board affirmed Figueroa's dismissal without providing findings or explanations. Subsequently, Figueroa filed for a writ of mandate, arguing that he had a "property right" in his employment that entitled him to due process before termination. 

The trial court agreed with Figueroa’s argument and ordered his reinstatement with back pay, while the Housing Authority appealed the decision. The appeal centered on whether Figueroa had a property interest in his job that warranted due process protections under federal and state constitutional guarantees. Relevant precedents cited included significant cases on due process rights for public employees.

Procedural and substantive safeguards apply to the termination of public employees when it infringes on constitutional rights, such as freedom of speech, as established in Mt. Healthy City Board of Ed. v. Doyle. Figueroa did not claim a violation of his liberty interests or substantive constitutional protections in his termination. The primary legal question is whether Figueroa had a property right in his employment that warranted due process upon termination. Established Supreme Court precedents indicate that a property interest requires more than a mere expectation; it necessitates a legitimate claim of entitlement, supported by rules or mutual understandings. Such entitlements can arise from agreements limiting the employer's dismissal rights or statutory protections against dismissal without cause. The sufficiency of these claims must be determined by state law. If an employee can only be discharged for cause, they possess a property interest deserving of constitutional protection.

Figueroa's employment was governed by the state Housing Authorities Law, which mandates the development of personnel rules that include procedures for hiring and firing. At the time of Figueroa's dismissal, the Housing Authority failed to comply with this requirement, lacking the necessary procedures for employee removal. Although this could potentially invalidate his termination, the court did not decide on this basis since it was not contested. However, the legislative requirement for removal procedures supports the conclusion that Figueroa had a legitimate claim to his job beyond a mere expectancy. This claim is further reinforced by his permanent employee status and the Housing Authority's personnel policies emphasizing merit-based employment decisions.

The trial court determined that Figueroa possessed a "property right" in his job, asserting that the notion of merit-based employee relationships contradicts the idea of serving solely at the discretion of the appointing authority. The court's ruling was affirmed with the concurrence of Judges Racanelli and Goff. During oral arguments, the Housing Authority argued that the post-termination hearing Figueroa received met the Skelly requirement, suggesting his remedy should be limited to back pay up to that hearing date. However, even if the hearing met basic pre-termination notice standards, it did not fulfill the due process requirement for an evidentiary hearing. Additionally, while the Housing Authority has amended its rules to implement a comprehensive grievance procedure, this change does not retroactively validate Figueroa's termination.