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Marilyn Hollister v. John Forsythe, a Public Officer Rosebud County, a Montana Political Subdivision

Citations: 22 F.3d 950; 9 I.E.R. Cas. (BNA) 673; 94 Cal. Daily Op. Serv. 2896; 94 Daily Journal DAR 5540; 1994 U.S. App. LEXIS 8698; 1994 WL 145103Docket: 92-36649

Court: Court of Appeals for the Ninth Circuit; April 26, 1994; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by an employee, Hollister, challenging the summary judgment granted in favor of her employer and the county on her claim under 42 U.S.C. § 1983 for alleged due process violations following her termination. The Ninth Circuit Court of Appeals affirmed the district court's ruling, which concluded that Hollister lacked a property interest in her employment under Montana law, thereby negating any constitutional violation claim. Hollister, a secretarial employee, was terminated without cause and sought to challenge the termination through a grievance procedure outlined in the County Personnel Policy. However, the court found that the policy's 'just cause' and post-termination hearing provisions did not create a property interest, as they did not specify a term of employment, affirming her status as an at-will employee according to Mont.Code Ann. Sec. 39-2-503. Furthermore, the court ruled that the implied covenant of good faith and fair dealing recognized in some Montana cases did not apply, as there was no mutual understanding or specified term that would establish such a covenant. Consequently, the court upheld the dismissal of Hollister's federal claim and declined to address her supplemental state law claims, affirming the summary judgment in favor of the employer and the county.

Legal Issues Addressed

Covenant of Good Faith and Fair Dealing in Employment

Application: The court noted that a covenant of good faith and fair dealing could imply job security only in certain circumstances, which were not present in Hollister's case.

Reasoning: However, such a covenant arises only under circumstances that suggest a belief the employee could only be terminated for good cause, which was not applicable in Hollister's case.

Due Process Rights and Job Termination

Application: Hollister's claim of a due process violation was rejected because she did not possess a property interest in her employment, a prerequisite for such a constitutional claim.

Reasoning: The Ninth Circuit affirmed the lower court's decision, determining that Hollister lacked a property interest in her employment under Montana law, thus negating the basis for a constitutional violation.

Employment At-Will and Property Interest under Montana Law

Application: The court determined that Hollister was an at-will employee without a property interest in her job, as the Rosebud County Personnel Policy did not specify a term or create a contractual obligation.

Reasoning: In Montana, the employment-at-will statute (Mont.Code Ann. Sec. 39-2-503) states that employment without a specified term can be terminated by either party.

Interpretation of Employment Policies and Contracts

Application: The court held that the 'just cause' and post-termination hearing provisions in the Personnel Policy did not confer a property interest, as they did not specify a term of employment.

Reasoning: Hollister argued that provisions in the Personnel Policy indicated a property interest, but this was not supported.