Lucas v. Monroe County

RECOMMENDED FOR FULL-TEXT PUBLICATION Pursuant to Sixth Circuit Rule 206 ELECTRONIC CITATION: 2000 FED App. 0063P (6th Cir.) File Name: 00a0063p.06 UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT _________________ ;  LARRY LUCAS, d/b/a LUCAS Plaintiff,  TOWING,   No. 98-1876  SOTTILE’S INC., d/b/a > S.T.A.R. TOWING; JAMES   Plaintiffs-Appellants,  SOTTILE,    v.   VAN WERT, Sheriff; RONALD  MONROE COUNTY; CARL COLE, Undersheriff; DARWIN    PAZ, Captain; TOM  HOFFMAN, Captain, Defendants-Appellees. 1 Appeal from the United States District Court for the Eastern District of Michigan at Detroit. No. 96-72332—Paul D. Borman, District Judge. Argued: September 22, 1999 Decided and Filed: February 18, 2000 1 2 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 27 Before: MERRITT and CLAY, Circuit Judges; ALDRICH, wrongful conduct take the form of inducing a third party not District Judge.* to enter a contract with the plaintiff; indeed, the Restatement Second of Torts § 766B expressly states that a defendant is _________________ liable for intentional interference with prospective contractual relations “whether the interference consists of (a) inducing or COUNSEL otherwise causing a third person not to enter into or continue the prospective relation, or (b) preventing the [plaintiff] from ARGUED: Matthew E. Krichbaum, SOBLE & ROWE, Ann acquiring or continuing the prospective relation.” Arbor, Michigan, for Appellants. Linda E. Taylor, RESTATEMENT SECOND OF TORTS § 766B. Plaintiffs have JOHNSON, ROSATI, LABARGE, ASELTYNE & FIELD, presented evidence that the Sheriff’s wrongful conduct in Farmington Hills, Michigan, for Appellees. ON BRIEF: excluding him from the regular tow rotation prevented him Matthew E. Krichbaum, Richard A. Soble, SOBLE & ROWE, from entering into a business relationship with stranded Ann Arbor, Michigan, for Appellants. Marcia L. Howe, motorists who request tow services via central dispatch. JOHNSON, ROSATI, LABARGE, ASELTYNE & FIELD, Accordingly, we conclude that Plaintiffs have adduced Farmington Hills, Michigan, for Appellees. sufficient evidence from which a rational trier of fact could find that the individual Defendants are liable for tortious _________________ interference with Plaintiffs’ economic relations. OPINION For the reasons set forth above, we REVERSE the _________________ judgment of the district court as to Plaintiffs’ claims of CLAY, Circuit Judge. Plaintiffs-Appellants, James Sottile retaliation for public criticism, political patronage, and and Sottile’s Inc., d/b/a S.T.A.R. Towing, appeal from the tortious interference with economic relations claims; we order entered by the United States District Court for the AFFIRM the judgment of the district court as to Plaintiffs’ Eastern District of Michigan, granting summary judgment on due process claim. behalf of Defendants-Appellees, Monroe County and related parties, in this action alleging that Defendants violated Plaintiffs’ rights under both the United States and Michigan constitutions, and are liable for tortious interference with Plaintiffs’ economic relations. For the reasons set forth below, we REVERSE in part and AFFIRM in part the judgment of the district court. * Honorable Ann Aldrich, United States District Judge for the Northern District of Ohio, sitting by designation. 26 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 3 existence of a valid business relationship or expectancy; (ii) BACKGROUND knowledge of the relationship or expectancy on the part of the defendant; (iii) intentional interference causing or inducing Procedural History a termination of the relationship or expectancy; and (iv) resultant actual damage. See Wilkerson v. Carlo, 300 N.W.2d On March 19, 1996, James Sottile and Larry Lucas, two 658, 659 (Mich. 1980). The district court dismissed separate wrecker service operators in Monroe County, Plaintiffs’ claim on grounds that Plaintiffs’ “business Michigan, filed suit in state court, in their own behalf and in relationship or expectancy of a relationship with a third party the names of their separate wrecker service companies, is too attenuated in this case.” against Defendants alleging violation of 42 U.S.C. § 1983 and various state law claims. Plaintiffs and Lucas alleged “The [business relationship or expectancy of a relationship] improper and retaliatory conduct arising out of the Monroe must be a reasonable likelihood or a probability, not mere County Sheriff’s Department’s (“Sheriff’s Department”) wishful thinking.” Trepel v. Pontiac Osteopathic Hosp., 354 administration of the County’s list of wrecker companies to N.W.2d 341, 348 (Mich. Ct. App. 1984). To demonstrate be called for towing services. Specifically, the complaint such a realistic expectation, Plaintiffs must prove an charged that Plaintiffs and Lucas were removed from this tow anticipated business relationship with an identifiable class of call list in retaliation for making public criticisms of the third parties. See Schipani v. Ford Motor Co., 302 N.W.2d Sheriff’s Department, in violation of their First Amendment 307, 314 (Mich. Ct. App. 1981). Plaintiffs have presented rights under the United States Constitution and Article I of the evidence of a reasonable expectancy of an economic Michigan Constitution; that the Sheriff’s Department relationship with stranded motorists who arranged for towing exercised political patronage in its administration of the tow services via the call list maintained by the Sheriff’s call list, also in violation of the First Amendment and the Department. Plaintiffs have presented evidence (i) that but Michigan Constitution; that Plaintiffs and Lucas were for the Sheriff’s unlawful and improper conduct — removed from the tow call list without due process of law, in specifically, his patronage practices — Plaintiffs would have violation of their constitutional due process rights guaranteed been placed on the regular rotation upon satisfying the by the Fourteenth Amendment of the United States requirements of the Sheriff’s Department; and (ii) that Constitution; and that the Sheriff’s Department’s conduct placement on the list entitles a tow company to calls and constituted tortious interference with Plaintiffs’ and Lucas’ contracts within its geographic area that the company would economic relations. Defendants removed the action to federal not otherwise receive. While the amount of towing business court on May 20, 1996. On February 27, 1998, following Plaintiffs would have received if placed on the call list cannot discovery, Defendants moved for summary judgment. be specifically determined, this issue goes only to damages. On July 1, 1998, the district court entered an order granting In dismissing Plaintiffs’ claim, the district court, quoting in part and denying in part Defendants’ motion for summary from Baker Driveaway Co., Inc. v. Bankhead Enterprises, 478 judgment. Defendants’ motion for summary judgment was F. Supp. 857, 860 (E.D. Mich. 1979), asserted that in the denied on Lucas’ retaliation claim, but granted on Plaintiffs’ typical tortious interference case, the defendant “induces a retaliation claim, on grounds that Plaintiffs were not regular private third party not to enter into a contract with the plaintiff service providers to Monroe County (“County”); summary in some improper fashion.” The court concluded that “[t]he facts of this case are simply inapposite to such a claim.” (J.A. at 44.) However, there is no requirement that the tortfeasor’s 4 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 25 judgment was also1 granted on all of Plaintiffs’ and Lucas’ that “several references to and procedures for removal or remaining claims. This timely appeal followed. suspension from the list to compel compliance with the regulations reflect the mutual nature of the relationship Facts established by inclusion on the list.” Id. at 853. In this case, there are no such established “procedures” for suspension or The County Sheriff’s Department maintains a towing removal. The written policies of the Sheriff’s Department — company rotation list. The call list is maintained to allocate however unfair they may be — explicitly provide that a towing services to assist police officers in moving stranded wrecker company may be immediately removed from the list vehicles throughout the County. When an officer needs upon making a complaint to an unauthorized person. As a towing services, the police dispatcher calls a company listed result, these policies did not create a legitimate claim of as approved to tow in the “service area” where the tow is entitlement to remaining on the tow call list even after making needed. If the first towing company called is unavailable, the such complaints. Accordingly, Plaintiffs’ due process claim dispatcher calls the next company listed for that area, and so was properly dismissed on grounds that they have not on until the job is accepted. If towing services are again established the existence of a constitutionally protected required, the dispatcher begins with the next company listed property interest. for the area involved, in rotation. IV. Tortious Interference with Economic Relations A towing company may not be placed on the call list unless the Sheriff’s Department authorizes the company’s eligibility. Plaintiffs allege that by excluding them from the regular Eligibility is based on a number of factors: (i) where the tow rotation, the individual Defendants prevented them from company is located; (ii) whether the location is an area entering into business with stranded motorists who obtain saturated with other companies on the list; (iii) whether the towing service through the call list.8 The elements of a claim company is properly insured; (iv) whether the company has for tortious interference with economic relations are: (i) the certain kinds of towing vehicles; (v) whether the company passes a safety and equipment inspection; and (vi) whether the company maintains twenty-four hour service in the service 8 area. However, if a motorist whose vehicle requires towing Notably, the County is immune from tort liability here under requests a particular towing company, the dispatcher contacts Michigan’s Governmental Tort Liability Act (“GTLA”), Michigan Compiled Laws Annotated § 691.1407, which provides that “all that company for the job regardless of whether the company government agencies shall be immune from tort liability in all cases requested is on the Sheriff’s Department’s call list. There are wherein the government agency is engaged in the exercise or discharge of no contracts, either written or oral, between the towing a governmental function.” Mich. COMP. LAWS ANN. § 691.1407(1) (1987). However, because Plaintiffs allege an intentional tort for which the individual Defendants would have been liable before July 7, 1986, 1 these Defendants are not immune from suit under the GTLA. See MICH. Notably, the district court, quoting Pembaur v. City of Cincinnati, COMP. LAWS ANN. § 691.1407(1) (1987) (stating that “subsection (2) 475 U.S. 469, 480 (1986), held that the County may be held liable under [which covers immunity for individuals] shall not be construed as altering § 1983 for the Sheriff’s decisions regarding operation of the tow list, the law of intentional torts as it existed before July 7, 1986”). “Michigan noting that municipal liability may be imposed where a “deliberate choice does not immunize its governmental employees, including police officers, to follow a course of action is made from among various alternatives by from their intentional torts.” Koehler v. Smith, 1997 WL 595085 (6th Cir. the official or officials responsible for establishing final policy with Sept. 25, 1997) (unpublished disposition); see also Sudul v. City of respect to the subject matter in question.” (J.A. at 43.) The district court Hamtramck, 562 N.W.2d 478, 479 (Mich. Ct. App. 1997) (holding that also held that the County may be held liable for any violations of the “an individual employee’s intentional torts are not shielded by our Michigan Constitution. (J.A. at 43.) governmental immunity statute”). 24 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 5 III. Due Process companies and the Sheriff or the County regarding towing services. Payment for towing services is made by the motorist Plaintiffs allege that their removal from the stand-by tow directly to the towing company; the County is not responsible call list without notice and an opportunity to be heard violated for payments to the towing company. their due process rights. The district court dismissed Plaintiffs’ claim on the ground that they lacked any protected In 1991, the Sheriff’s Department announced that towing property interest in remaining on the stand-by list. We agree companies were required to bring grievances they had with the district court. regarding the list directly to the Sheriff’s Department personnel prior to airing such grievances publicly. Towing “The Fourteenth Amendment’s procedural protection of companies who failed to comply with this requirement risked property is a safeguard of the security of interest that a person removal from the call list. The Sheriff’s May 9, 1991, letter has already acquired in specific benefits.” Board of Regents to all towing companies then on the list, stated in part: of State Colleges v. Roth, 408 U.S. 564, 576 (1972). The mere unilateral expectation of continuing to receive a benefit This is to remind you that, consistent with the present is not enough to create a protected property interest; instead procedure, any complaints/questions you may have a “legitimate claim of entitlement” must exist. Id. at 577. regarding tow calls are to be directed to Undersheriff “[A] property interest exists and its boundaries are defined by Cole in writing. Do not address these issues with the ‘rules and understandings that stem from an independent dispatchers, deputies, or supervisors. source such as state law -- rules or understandings that secure In the future, failure to abide by these procedures will certain benefits and that support claims of entitlement to those necessitate the removal of your name from the call list at benefits.’” Bailey v. Floyd County Bd. of Educ., 106 F.3d the time you contact an unauthorized person until the 135, 141 (6th Cir. 1997) (quoting Roth, 408 U.S. at 577). time of your complaint is received in writing and throughly investigated. In the instant case, however, Plaintiffs can point to no ordinance, contract or other “rules of mutually explicit (J.A. at 114.) understandings” that support their claim of entitlement to remain on the stand-by list. See Perry v. Sinderman, 408 U.S. By the mid-1990’s, Sheriff Van Wert (“Sheriff”) was 593, 601 (1972). The only relevant policy on record, in place subjected to increasing public criticism regarding his since 1991, expressly states that a wrecker service will be administration of the tow call list. Accusations were rampant removed from the call list upon filing a complaint with an that the Sheriff’s Department gave preferential treatment to unauthorized person. Plaintiffs’ reliance on Gregg v. Lawson, tow companies owned by “higher end” contributors to the 732 F. Supp. 849 (E.D. Tenn. 1989), is misplaced. In Gregg, Sheriff’s political campaigns. In fact, the Sheriff admitted at the court held that the plaintiff had a “legitimate claim of his deposition that Dorothy Galina, owner of Monroe Towing, entitlement” in remaining on the wrecker tow list, on grounds was a “higher end” campaign contributor. Plaintiffs adduced evidence at their deposition indicating that Monroe Towing received preferential treatment compared to other tow companies on the call list: (i) Monroe Towing was the only consider this question below because it dismissed Plaintiffs’ constitutional tow truck company in two areas, and received the greatest claims on other grounds, and the parties’ briefing of this issue on appeal number of calls; (ii) Monroe Towing’s service area was is sparse and deficient. This issue is best left for the district court to address in the first instance, should Defendants choose to raise it on increased in size to the detriment of another tow truck remand below. operator, Larry Lucas; and (iii) Monroe Towing received 6 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 23 increased territory when another tow company, McClain’s, because it had refused the new mayor’s request for a went out of business. Plaintiffs also adduced evidence that campaign contribution and had instead supported his another tow company, Owens Towing, received preferential opponent. O’Hare, 518 U.S. at 720. The Court stated: treatment in exchange for political favors. We cannot accept the proposition . . . that those who Sottile, the sole owner of Sottile’s, Inc., d/b/a S.T.A.R. perform the government’s work outside the formal Towing (“S.T.A.R.”), applied to be placed on the call list in employment relationship are subject to what we conclude December 1993. Sottile stated that he had four tow trucks is the direct and specific abridgement of First that could perform light and heavy duty towing. Plaintiffs’ Amendment rights alleged in this complaint. As equipment was inspected, but deficiencies were found in respondents offer no justifications for their actions, save Plaintiffs’ equipment. Plaintiffs immediately cured the for insisting on their right to condition a continuing deficiencies to the County’s satisfaction; nonetheless, their relationship on political fealty, we hold that the application was rejected, as Defendants claimed that the complaint states an actionable First Amendment claim. County already had sufficient towing services available in Plaintiffs’ geographic service area, Area 8. The Sheriff’s Id. at 720. The same holds true here. Plaintiffs have February 24, 1994, letter to Plaintiffs stated: “[a]t the present presented evidence that both Plaintiffs and Lucas were time their [sic] are no intentions to add to our towing services. removed from the tow call list because they voiced their In April we will be reviewing the services and if we decide to opposition to the Sheriff and his policies in a public forum; add you will be considered.” (J.A. at 254.) However, not only may this conduct itself constitute a violation of the Plaintiffs noted that in January of 1994, Interstate Towing First Amendment, but it provides strong evidence that, as a went out of business in Area 8, thereby leaving only Monroe general rule, a wrecker service’s political support for the Towing to service that area.2 Sottile maintained that S.T.A.R. Sheriff (or lack thereof) factors heavily into the Sheriff’s could have merely taken Interstate Towing’s place. administration of the tow call list. Indeed, by promptly removing his most vociferous critics from the tow call list, the On April 2, 1994, Plaintiffs again reapplied to be placed on Sheriff inevitably sent a clear message to the County’s other the call list for Areas 4 and 8. After three weeks with no wrecker services about the importance of maintaining a response, Plaintiffs contacted Captain Tom Hoffman of the positive relationship with the Sheriff’s Department. Sheriff’s Department. Hoffman reportedly told Plaintiffs that Accordingly, we find that Plaintiffs have presented sufficient the County had no intention of adding any additional towing evidence to create a genuine issue of material fact on their services because it did not want to place a financial burden on political patronage7claim, and, therefore, summary judgment other tow services and put a good towing company out of was inappropriate. business. Hoffman then named three towing companies on the call list that supposedly served the areas for which Plaintiffs had applied. However, Sottile replied that two of 7 Defendants on appeal also briefly argue that they are entitled to those companies were out of business and the third never qualified immunity on Plaintiffs’ First Amendment claims on the basis served those areas. Notably, Hoffman did not name the only that, at the time in question, “there was no law establishing Plaintiffs’ rights to be added to the [tow call] list.” (D. Br. at 43-45.) Plaintiffs respond that Defendants are not immune because the First Amendment 2 law on retaliation and political patronage was clearly established at the Police records that track the tow companies used by the County time of Defendants’ misconduct, so that Defendants knew or should have confirm that Monroe Towing did the vast majority of the towing in known that they were violating Plaintiffs’ rights. See, e.g., Chappel, 131 Area 8. F.3d at 580; Barrett, 130 F.3d at 262-64. The district court did not 22 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 7 from tow companies. Second, Sottile quoted Dorothy active towing company that was actually serving Area 8 at Gallina, owner of Monroe Towing, as saying that she had to that time: Monroe Towing. Hoffman assured Plaintiffs he “wine and dine [members of the Sheriff’s Department] and would look into the situation. Over the next several months, buy them tickets to here and there to keep them happy.” (J.A. Sottile tried again to contact Hoffman. After his efforts were at 196.) Third, Sottile quoted the owner of another towing unsuccessful, Sottile spoke to Undersheriff Ronald Cole, who company as telling him that “[i]f you want to get on the list, repeated what Hoffman had said. you have got to spread some money around with the sheriff’s campaign.” (J.A. at 267.) Fourth, Sottile testified that On January 5, 1995, Sottile wrote a letter to a member of officers in the Sheriff’s Department had “jokingly” told him the Monroe County Board of Commissioners (“Board”) if he wanted to be added to the tow6 call list, he would have to setting forth his frustrations with the Sheriff and the tow list; donate to the Sheriff’s campaign. this letter recounted in detail Sottile’s efforts to be placed on the list and his futile communications with the Sheriff’s The Sheriff’s conduct in removing Plaintiffs and Lucas Department. On January 30, 1995, Sottile’s attorney from the tow call list in response to their public criticisms of requested that Plaintiffs be placed on the list. his office constitutes particularly striking evidence of political patronage in his administration of the list. This conduct is At this juncture, the facts central to Plaintiffs’ claims occur akin to a government official firing a public employee who in the public eye and must be viewed from the perspective of spoke out in opposition to the official or his policies - the public controversy. Allegations of impropriety reached their classic political patronage First Amendment violation. See, peak in the winter and spring of 1995. These allegations were e.g., Branti v. Finkel, 445 U.S. 507, 515 (1980) (stating that particularly salient because they came at a time when the the First Amendment prohibits officials from terminating Board was contemplating the merger of central police public employees on the basis of their political beliefs). In dispatch, which administered the call list, with the County’s O’Hare Truck Service, the Court held that the plaintiff towing Emergency Management Division. The Sheriff opposed the company had stated a claim of political patronage in violation merger on grounds that it would encroach the independence of the First Amendment, where the plaintiff alleged that it had and authority of the Sheriff’s Department. been removed from the defendant city’s towing rotation list Allegations concerning the Sheriff’s administration of the call list first became front page news in February of 1995 when Dale Zorn, a member of the Board, and County 6 The district court found that this evidence carried no weight since Administrator/Auditor Charles Londo were denied access to Sottile himself characterized the officers as making their statements a meeting the Sheriff held with tow truck operators on the call “jokingly” and said that he did not take it seriously at the time. However, list. Sottile was also excluded from this meeting. Zorn said the weight to be attributed the officer’s statements is for the jury to that he had been invited to the meeting in his capacity as a decide. As Plaintiffs point out, the mere fact that the statement was made in a “joking” manner does not render it devoid of truth. A jury viewing commissioner to discuss the potential merger of central this exchange in the light most favorable to Plaintiffs could reasonably dispatch and emergency services. After being refused construe it as evidence in support of Plaintiffs’ political patronage claim, admittance, Zorn wrote a public letter severely criticizing the particularly in light of the aggregate evidence that Plaintiffs have adduced. Sheriff. See, e.g., NLRB v. Homemaker Shops, Inc., 724 F.2d 535, 550 (6th Cir. 1984) (“threatening or manipulative statements can . . . be couched in On February 27, 1995, the Sheriff appeared before the ostensibly friendly, or even humourous, terms [but] [t]he threat or manipulation remains nonetheless”) (citing Seligman & Assocs., Inc. v. Board to respond to Zorn’s charges. The Sheriff’s comments NLRB, 639 F.2d 307, 309 (6th Cir. 1981)). and the dispute in general were thoroughly covered in a 8 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 21 lengthy front-page article in the February 28, 1995, Monroe (Areas 4 and 8). Monroe Towing’s area was increased after Evening News, entitled, “Sheriff rips Zorn, Londo over tow another wrecker service went out of business. meeting.” According to the article, the Sheriff told the Board that Zorn had no reason to attend the meeting with call list Moreover, Plaintiffs have set forth additional evidence that participants, which, he said, addressed only issues of interest these companies benefitted at the expense of non-contributing to companies on the list - including rumors “that tow truck tow companies, including Plaintiffs and Lucas. For example, company owners must contribute to his campaign to get on the Sheriff reduced Lucas’ towing area by one-third, with the the list.” The article reported: lost territory going to Owens Towing. Monroe Towing received calls for towing service in Lucas’ area, even though Sheriff Van Wert said the meeting was to inform drivers Monroe was not formally assigned that service area. When of new salvage vehicle forms, introduce them to acting Plaintiffs applied to be placed on the regular rotation list, Capt. Paz and address rumors among tow truck Plaintiffs were told that the County did not require additional operators. One such rumor, according to the sheriff, was towing services in that area — even though Monroe Towing that he intends to eventually have only two tow truck was the only service operating there at that time. When companies on the rotating list. Plaintiffs were finally placed on the stand-by list, they were again excluded from Area 8 and instead assigned to Area 4 — *** which already had three other wrecker services. Thus, while the Sheriff’s Department claimed that it limited the number of The other rumor, Sheriff Van Wert told the board, was companies on the call list in order to avoid saturating an area that tow truck company operators must contribute to his and to avoid driving a good service out of business, the campaign to get on the list. ‘If they want to donate to my circumstantial evidence detailed above would allow the jury campaign, sure, I’ll take a donation,’ said the sheriff, who to infer a less proper motive; specifically, that the Sheriff said he spends about $80,000 for each election. ‘But it’s sought to reward political supporters at the expense of those surely not a requirement. That would be illegal and I who did not contribute to his campaigns. See Acosta-Orozco, wouldn’t participate in that.’ 132 F.3d at 103 n.6 (noting that rewarding political supporters is a forbidden form of political patronage because it Campaign statements show that the sheriff’s campaign necessarily comes at the expense of “those who are not received donations of $2,050 since 1992 from Dorothy followers and who see their upward mobility . . . thwarted in Galina, owner of Monroe Towing . . . which is on the very concrete ways”). tow list. Indeed, the Sheriff’s statements and reported comments of (J.A. at 248.) The article further reported that Sottile spoke other tow companies in the County further suggest a at the Board meeting and complained about his exclusion connection between campaign contributions and favorable from the Sheriff’s prior meeting with tow truck operators: treatment from the Sheriff’s Department. First, the Sheriff publicly stated that it cost $80,000 to run for office and, while The sheriff’s statement came on the heels of remarks denying that campaign contributions were a requirement for earlier in the meeting by Jim Sottile, owner of Star placement on the tow call list, said that “if they want to Towing in LaSalle, who said he also was removed from donate, sure I’ll take donations.” (J.A. at 306.) Sottile last week’s meeting after initially being allowed in. Mr. testified that, despite the Sheriff’s professed denial, he took Sottile said he’s been trying to get in the tow list for more this very statement as an indirect solicitation of contributions than a year now. He said no one at the Sheriff’s 20 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 9 establish a prima facie case of politically discriminatory department will respond to his letters or phone calls. . . . [employment action].” The court noted that it had long held Sheriff Van Wert said he planned to meet with Mr. that direct evidence was not required to prove political Sottile today to discuss his concerns. favoritism; instead, circumstantial evidence can suffice: “[v]ictims of heavy-handed uses of the spoils system are not (J.A. at 248.) limited to redress in only those (relatively rare) instances in which a ‘smoking gun’ can be produced. To the contrary, we After the February 28, 1995, Board meeting, the Sheriff did have held, time and again, that circumstantial evidence alone in fact arrange to meet with Sottile. Sottile arrived with his can support a finding of political discrimination.” Id. at 102 attorney, and the Sheriff, himself an attorney, told Sottile to (quoting Anthony v. Sundlun, 952 F.2d 603, 605 (1st Cir. return on another day, without his lawyer. According to 1991)). Sottile, when the meeting finally took place, the Sheriff promised to place S.T.A.R. on the regular rotation. However, Here, Plaintiffs adduced sufficient evidence from which a on April 6, 1995, Sottile was notified that S.T.A.R. was rational trier of fact could conclude that the Sheriff’s placed on the stand-by list in Area 4. Plaintiffs claim that Department improperly engaged in political patronage their placement in Area 4 was another act of favoritism to practices in its administration of the tow call list. Most Monroe Towing, in that they were excluded from Area 8, notably, Plaintiffs have provided evidence that campaign where Monroe Towing had a monopoly. In contrast, Area 4 contributors and political supporters received disproportionate was already being served by three wrecker services. tow calls off the list and increased service areas, at the expense of non-contributors. Moreover, Plaintiffs have Meanwhile, public complaints about the Sheriff’s shown that Plaintiffs and Lucas were removed from the list administration of the call list continued to mount. On March because of their public opposition to the Sheriff. 14, 1995, a stranded driver told the Board that he was forced to wait an extraordinarily long time because the Sheriff’s Furthermore, Plaintiffs presented evidence suggesting that Department refused to call the tow service of his choice and the Sheriff rewarded his political supporters, Monroe Towing instead called Owens Towing - owned by one of the Sheriff’s and Owens Towing, with favorable treatment at the expense political supporters - which was some distance away. of wrecker services who did not contribute to his campaigns. The Sheriff stated at his deposition that he knew who his On April 11, 1995, wrecker service owner Larry Lucas, “higher-end” contributors were, and went as far as to identify who had been on the regular rotation since 1968, spoke at the Monroe Towing as one of them. Owens Towing was also Board meeting to voice his complaints about favoritism and known to be one of the Sheriff’s political supporters. There corruption in the Sheriff’s administration of the tow list. is ample evidence that both companies, particularly Monroe, Among other things, he alleged that Monroe Towing had been benefitted from a disproportionate number of calls and given calls in what had been Lucas’ area for almost thirty increased service areas. For example, in 1995, Owens years. Lucas then explained that he tried to get maps from the Towing received over 600 calls from the Sheriff - first on the Sheriff’s Department that showed the areas, but to no avail. list. That year, Monroe Towing received over 300 calls, Lucas finally received a copy of the map, and discovered that which was second on the list. Monroe Towing was the only his area was decreased by one-third, and that his former company on the tow call list for Area 8. Monroe Towing was territory was given to Owens Towing. Additionally, at the the only wrecker service operating in two different areas Board meeting, Lucas reported an incident wherein Commissioner Richard Petticrew, one of the Sheriff’s allies, delivered a message to Lucas, from the Sheriff that if he did 10 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 19 not “back off,” he would be removed from the tow call list. claim of retaliation in violation of their rights under the First Lucas concluded: Amendment. If this is going to take place, where [the Sheriff] can II. Political Patronage dictate . . . then I say central dispatch should be taken out of the Sheriff’s Department and give it to the citizens and The First Amendment prohibits government officials from let the citizens run it. . . . I think you’re going to gave a making employment decisions, such as hiring or firing, based bigger problem later on down the road than you realize. on the employee’s political beliefs, affiliation, or support. See, e.g., Rutan v. Republican Party of Ill., 497 U.S. 62, 77- (J.A. at 316.) 79 (1990) (holding that the First Amendment extends to protect against the politically motivated failure to promote); The events at this Board meeting were reported in the lead Elrod v. Burns, 427 U.S. 347, 373 (1976) (“the practice of story in the next day’s Monroe Evening News: patronage dismissals is unconstitutional under the First and Fourteenth Amendments.”). In O’Hare Truck Serv. Inc. v. A Petersburg wrecker service owner Tuesday night City of Northlake, 518 U.S. 712, 726 (1996), the Supreme accused Sheriff Carl Van Wert of threatening his Court held that private companies that provide services to the business if he doesn’t quit challenging tow truck policy. government — expressly including wrecker services on Larry Lucas, in a heated speech to the Monroe County municipal tow truck rotation lists — are entitled to the same Board of Commissioners, named Commissioner Richard “First Amendment safeguards of political association afforded Petticrew as the messenger who told him two weeks ago to employees.” his business would be dropped from the sheriff’s tow list if he ‘didn’t back off.’ . . . ‘I can’t accept this kind of In the instant case, Plaintiffs’ allege that the Sheriff threat,’ [Mr. Lucas] continued ‘is there a monopoly or a excluded them from the regular rotation list, and limited them conspiracy here? You tell me.’ to Area 4 on the stand-by list because Plaintiffs did not politically support the Sheriff and did not contribute to the (J.A. at 250.) The article reported Lucas’ comments to the Sheriff’s campaign. Plaintiffs further allege that the Sheriff Board in some detail; the article further reported that after took these actions in part to promote the interests of Monroe making his complaints public, Lucas was immediately Towing as well as Owens Towing inasmuch as those entities dropped from the call list “because he failed to comply3 with provided the Sheriff with political support and campaign procedures requiring complaints to be made in writing.” The contributions. The district court held that Plaintiffs had not article also included a sub-story entitled, “How the sheriff’s adduced sufficient evidence to survive summary judgment on system works.” This story, relying on the Sheriff as its their political patronage claim. primary source, explained that the Sheriff’s Department sought to keep the tow list limited, and relayed the Sheriff’s The district court placed undue emphasis on Plaintiffs’ failure to present evidence that the Sheriff had formally solicited them for a campaign contribution or that they had 3 been vocal opponents of the Sheriff before 1995. In Acosta- In a subsequent June 5, 1995, letter confirming Lucas’ removal from Orozco v. Rodriguez-de-Rivera, 132 F.3d 97, 101-02 (1st Cir. the tow call list, the Sheriff’s Department made clear that he was being 1997), the United States Court of Appeals for the First Circuit penalized for “the accusatory remarks about the Sheriff and his wrecker policy [he] made before a Board of Commissioner’s meeting on April 11, explained that “a plaintiff need not produce direct evidence of 1995.” (J.A. at 153.) discriminatory treatment (a so-called ‘smoking gun’) to 18 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 11 Second, we find that Plaintiffs have presented sufficient description of how the call list is administered. The story also evidence to indicate that, after voicing their final comments included Plaintiffs’ allegations, echoing those of Lucas, that at the April 25, 1995, Board meeting, they were subjected to the Sheriff was guilty of favoritism. an adverse action that would deter a person of ordinary firmness from continuing to engage in publicly criticizing the Nearly two weeks later, on April 25, 1995, Sottile again Sheriff. Plaintiffs were removed from the stand-by tow call addressed the Board regarding (i) the Sheriff’s unfulfilled list, thus ending any opportunity to receive business via promise to place him on the regular call list rotation; (ii) the central dispatch or to be added to the regular tow rotation so Sheriff’s suppression of competition among wrecker services; long as the Sheriff remained in office. There is no doubt that and (iii) the lack of fair play and justice in the Sheriff’s such conduct would deter the average wrecker service Department. operator from voicing similar criticisms of the Sheriff. Two days later, on April 27, 1995, the Monroe Evening Third, we find that Plaintiffs have presented overwhelming News ran yet another story on the call list controversy; this evidence that their removal from the stand-by tow call list was story also featured Sottile’s latest remarks to the Board and motivated by their constitutionally protected public criticism the ensuing reaction. Entitled “McKart enters fray over tow of the Sheriff’s Department. The May 4, 1995, letter trucks,” the article reported that at the Board meeting, County informing them of their removal expressly states that the Commissioner Jerry McKart joined in the criticism of the action was being taken because Sottile voiced his complaints Sheriff’s Department and called for changes in policy publicly before the Board rather than in private: following Sottile’s remarks. McKart opined that there was something wrong with the Sheriff’s policy and expressed Since a dialogue had already been opened in regard to concern that the County might be subjected to lawsuits. The your grievance with our office, your appearance before article directly attributed both McKart’s comments and the the County Board can only be viewed as an attempt to Board’s decision to have its attorney examine the call list discredit the Office of the Sheriff. The Office of the policy to Sottile’s statements at the Board meeting. The Sheriff will therefore no longer be requiring your services article then reported Ray Copi’s comments siding with as a standby Wrecker Company. Sottile, and included the response of the Sheriff’s Department. The Sheriff’s Department alleged that Sottile’s (J.A. at 259.) In his deposition, the Sheriff stated that comments were orchestrated by Commissioner Zorn, who, as Plaintiffs were removed from the stand-by list for the same already noted, was head of the County’s Committee reasons that Lucas was removed from the regular rotation. examining the possibility of combining central dispatch with The Sheriff’s Department, of course, informed Lucas that he the County’s Emergency Management Division – a move the was being removed because of “the accusatory remarks about Sheriff opposed because it would wrest central dispatch from the Sheriff and his wrecker policy [he] made before a Board his control. of Commissioner’s meeting on April 11, 1995.” (J.A. at 153.) Therefore, we find that the district court erred in granting In a letter dated May 4, 1995, the Sheriff informed Sottile Defendants’ motion for summary judgment on Plaintiffs’ that Plaintiffs had been removed from the stand-by call list due to his public criticisms of the Sheriff’s Department. The letter read, in pertinent part: Rather than follow up on the matter with Sheriff Van of the County, is a matter of political concern. Wert, or his representative, you appeared before the 12 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 17 County Board of Commissioners with your complaint. We may quite readily concede that Chappel hoped to Since a dialogue had already been opened in regard to gain from his speech. Indeed, this may be a fair your grievance with our office, your appearance before assumption to make about most speech addressing the County Board can only be viewed as an attempt to matters of public concern. Our aim, however, is to discredit the Office of the Sheriff. The Office of the determine whether Chappel’s speech may be “fairly Sheriff will therefore no longer be requiring your services characterize[d] . . . as relating to any matter of political, as a standby Wrecker Company. social, or other concern to the community.” Even if we were to assume that Chappel’s predominant motivation (J.A. at 259.) Plaintiffs were not placed on the tow call list was securing a job for himself, we would not conclude until the Sheriff left office in January 1997; the newly elected that this motivation so dominated the substance of sheriff promptly allowed Plaintiffs to join the regular tow Chappel’s speech that the “point” or “communicative rotation. purpose” of his speech was rendered merely a matter of personal concern. Chappel directly addressed matters Standard of Review that are rightly “near [the] zenith” of public concern -- matters of public safety, and the gross mismanagement We review a district court’s grant of summary judgment de and misappropriation of public monies. novo. See Jackson v. Leighton, 168 F.3d 903, 909 (6th Cir. 1999). Summary judgment is appropriate where “the 131 F.3d at 578 (alterations in original). We find that the pleadings, depositions, answers to interrogatories, and same holds true here. Plaintiffs need only show that their admissions on file, together with the affidavits, if any, show speech somehow related to a matter of community concern. that there is no genuine issue as to any material fact and that As set forth above, with respect to the subject of favoritism the moving party is entitled to a judgment as a matter of law.” and unfairness in the disbursement of government benefits, FED. R. CIV. P. 56(c). The facts and inferences drawn tow calls are a classic issue of community concern. Indeed, therefrom are to be viewed in the light most favorable to Sottile made his comments at various public forums, and his plaintiff. See Jackson, 168 F.3d at 909. Ultimately, this comments were widely reported in prominently featured Court must decide “whether the evidence presents sufficient newspaper articles, clearly demonstrating that the community disagreement to require submission to a jury or whether it is deemed the issues raised to be of public concern. See id. so one-sided that one party must prevail as a matter of law.” (holding that the Plaintiff’s speech was a matter of public Terry Barr Sales Agency, Inc v. All-Lock Co., 96 F.3d 174, concern where, among other things, it was made 5in public 178 (6th Cir. 1996) (quoting Anderson v. Liberty Lobby, Inc., forums and covered extensively in the local press). 477 U.S. 242, 251 (1986)). DISCUSSION 5 We look to the comments of Commissioner McKart and Ray Copi in response to Sottile’s speech as further evidence that Sottile’s April 25, I. Retaliation for Public Criticism 1995, speech was a matter of community concern. In the letter removing Plaintiffs from the stand-by list, the Sheriff’s Department described Plaintiffs allege that Defendants removed them from the Sottile’s speech as an “attempt to discredit the Office of the Sheriff.” stand-by call list as retaliation for Sottile’s public criticism of This is clearly a matter of public concern. See Chappel, 131 F.3d at 573 the Sheriff, in violation of Plaintiffs’ First Amendment (stating that speech addresses a matter of public concern when such expression is related to, among other things, any matter of political concern). Certainly speech which questions the credibility of the Sheriff’s Department, a Department that provides services to the people 16 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 13 In the instant case, Sottile repeatedly accused the Sheriff of rights.4 The district court dismissed this claim on grounds favoritism, lack of competition and unfairness in his that Plaintiffs were not protected under the First Amendment administration of the tow call list, alleging that the Sheriff because Plaintiffs were not government employees or used his authority to reward political supporters and campaign contractors, nor were Plaintiffs a regular provider of services contributors at the expense of other tow companies. This to the County. Court has expressly stated that: “Freedom to criticize public officials and expose their wrongdoing is at the core of First In dismissing Plaintiffs’ First Amendment retaliation claim, Amendment values, even if the conduct is motivated by the district court adopted Defendants’ position that First personal pique or resentment.” Barrett, 130 F.3d at 263. Amendment protections extend only to independent Moreover, the First Amendment protects Sottile’s right to contractors or other regular-service providers subject to voice concerns and criticize the Sheriff and his policies. See termination of pre-existing commercial relationships with the Glasson v. City of Louisville, 518 F.2d 899, 904 (6th Cir. government. The Supreme Court has consistently held that 1975) (“The right of an American citizen to criticize public the “government ‘may not deny a benefit to a person on a officials and policies and to advocate peacefully ideas for basis that infringes his constitutionally protected . . . freedom change is the central meaning of the First Amendment”) of speech’ even if he has no entitlement to that benefit.” (quoting New York Times Co. v. Sullivan, 376 U.S. 254, 273 Board of County Comm’rs v. Umbehr, 518 U.S. 668, 674 (1964)). (1996) (quoting Perry v. Sinderman, 408 U.S. 593, 597 (1972)). The Court explained as follows: Notably, Sottile made his comments at the same time that the Board was contemplating the merger of central dispatch [E]ven though a person has no “right” to a valuable with emergency services. Sottile himself placed his government benefit and even though the government may comments in the context of this larger issue, by making deny him the benefit for any number of reasons, there are comments such as, “That’s all I want to say to the Board so some reasons upon which the government may not rely. you can take it into consideration with Central Dispatch cause It may not deny a benefit to a person on a basis that as far as I’m concerned there’s no justice or fair play or infringes his constitutionally protected interests -- anything in the Sheriff’s Department right now.” (J.A. at especially, his interest in freedom of speech. 318-19.) In addition, Sottile’s comments at the April 25, 1995, Board meeting followed Larry Lucas’ speech at the Perry, 408 U.S. at 597. As set forth more fully in Umbehr’s same forum two weeks earlier, where Lucas voiced similar companion case of O’Hare Truck Serv., Inc. v. City of complaints about the Sheriff’s administration of the tow call Northlake, 518 U.S. 712, 717 (1996), placement on a list. Lucas’ speech, as noted, was the subject of the lead story in the next day’s local paper — a story that also quoted Sottile as joining in Lucas’ criticisms. 4 Because Plaintiffs’ rights under the Michigan Constitution essentially track those guaranteed by the United States Constitution, the In Chappel, this Court expressly rejected the defendants’ same analysis that governs their federal constitutional claims applies to argument that the Plaintiff’s speech did not address a matter their corresponding state claims. See Woodland v. Michigan Citizens of public concern because it was predominantly motivated by Lobby, 378 N.W.2d 337, 343 (Mich. 1985) (noting that the rights to free speech and association under the Michigan Constitution are coterminous his own self-interest: with those under the First Amendment); Roy v. Rau Tavern, Inc., 423 N.W.2d 54, 56 (Mich. Ct. App. 1988) (stating that the “Michigan Constitution secures the same right of equal protection and due process as does the United States Constitution”). 14 Lucas, et al. v. Monroe County, et al. No. 98-1876 No. 98-1876 Lucas, et al. v. Monroe County, et al. 15 municipal tow rotation list is one such benefit that may not be interference with free speech, but the First Amendment denied a person because of his constitutionally protected rights of public employees are restricted by the nature of speech. the employer-employee relationship. In this case, Defendants have admitted that Plaintiffs were Id. Likewise, in the case at hand, we conclude that the district placed on the stand-by tow call list for Area 4. Even though court erred in dismissing Plaintiffs’ retaliation claim on Plaintiffs did not receive any calls during their four-week stint grounds that they were not entitled to First Amendment on the stand-by list, their inclusion on the list undeniably protection against the retaliatory conduct of the Sheriff’s constitutes a governmental benefit. The Sheriff himself Department. admitted that “it was important to be on the tow list because it gives [tow truck operators] community recognition.” (J.A. Since the district court held that Plaintiffs were not entitled at 292.) Moreover, the Sheriff stated that placement on the to any First Amendment protections, the court did not stand-by list was “done so that a record with our office can be consider whether Plaintiffs presented sufficient evidence on established,” thus allowing a wrecker service to eventually their retaliation claim to survive Defendants’ motion for receive tow calls off the regular rotation. (J.A. at 259.) summary judgment. We believe that they have. To prevail on Finally, as Plaintiffs note, their inclusion on the list could their retaliation claim, Plaintiffs must establish (i) that they have been used in advertising or as a credential when were engaged in constitutionally protected conduct; (ii) that applying for other tow lists — which are particularly Defendants’ adverse action caused them to suffer an injury important to a new company. that would likely chill a person of ordinary firmness from continuing to engage in that conduct; and (iii) that the adverse The instant case is reminiscent of Blackburn v. City of action was motivated at least in part as a response to the Marshall, 42 F.3d 925, 929 (5th Cir. 1995), in which the exercise of their constitutional rights. See Thaddeus-X v. plaintiff wrecking service was removed from the city’s Blatter, 175 F.3d 378, 394 (6th Cir. 1999) (en banc); see rotating on-call towing list after making various complaints generally Mt. Healthy City Sch. Dist. Bd. of Educ. v. Doyle, to city officials. The plaintiff brought a § 1983 action against 429 U.S. 274 (1977); Ratliff v. Wellington Exempted Village the city alleging, among other things, that the city wrongly Schs. Bd. of Educ., 820 F.2d 792 (6th Cir. 1987); Barrett v. retaliated against him for the exercise of his First Amendment Harrington, 130 F.3d 246 (6th Cir. 1977). We believe that rights. Id. at 930. The district court dismissed the Plaintiff’s Plaintiffs have adduced substantial evidence in support of retaliation claim on the basis that he was not a public each element. employee, or equivalent to a public employee, and thus was not entitled to First Amendment protection against the city’s First, Plaintiffs have clearly established that they were retaliatory conduct. Id. at 931. On appeal, the United States engaged in constitutionally protected conduct. The First Court of Appeals for the Fifth Circuit expressly rejected this Amendment protects speech that may be “fairly characterized notion: as constituting speech on a matter of public concern.” Chappel v. Montgomery County Fire Protection Dist. No. 1, At the outset, we reject the district court’s apparent 131 F.3d 564, 573 (6th Cir. 1997). “In order to conclude that assumption that only public employees enjoy the speech addresses a matter of public concern, ‘this court must protections of the First Amendment. The district court’s be able to fairly characterize the expression as relating to any reasoning is inverted. Every citizen enjoys the First matter of political, social, or other concern to the Amendment’s protections against governmental community.’” Id. at 574 (citation omitted).