Nye v. Department of Livestock

                                   No. 80-478
                      IN THE SUPREfiE COURT OF THE STATE OF MONTANA
                                      1981


MARGARET NYE ,
                                 Petitioner and Appellant,
    VS.

THE DEPARTMENT OF LIVESTOCK, et al.,
                                 Defendants and Respondents.


Appeal from:          District Court of the Fifth Judicial District,
                      In and for the County of Jefferson
                      Honorable Frank Blair, Judge presiding.
Counsel of Record:
     For Appellant:
                  Patrick Flaherty argued, Great Falls, Montana
     For Respondent:
                  John Bobinski argued, Helena, Montana


                                   Submitted:   September 26, 1981
                                     Decided: January 14, 1982
         ?
          5nrJ 1 ," 1532
             ft


Filed:
M r . J u s t i c e F r e d J. Weber d e l i v e r e d t h e Opinion of t h e
Court    .

        M a r g a r e t Nye b r o u g h t an a c t i o n i n t h e D i s t r i c t C o u r t of

t h e F i f t h J u d i c i a l D i s t r i c t , J e f f e r s o n County, Montana,

s e e k i n g j u d i c i a l r e v i e w of t h e t e r m i n a t i o n of h e r employment

and damages f o r s l a n d e r and wrongful d i s c h a r g e .                   The D i s t r i c t

C o u r t d e n i e d t h e p e t i t i o n f o r j u d i c i a l r e v i e w and d i s m i s s e d

t h e a c t i o n on i t s m e r i t s .      Nye a p p e a l e d .       W reverse the
                                                                           e

p o r t i o n of t h e o r d e r d i s m i s s i n g t h e wrongful d i s c h a r g e c l a i m

and remand t o t h e D i s t r i c t C o u r t f o r f u r t h e r p r o c e e d i n g s .

        M a r g a r e t Nye was h i r e d by t h e Department of L i v e s t o c k

of t h e S t a t e of Montana ("Department") i n October 1977.                                 She

i n i t i a l l y worked a s a p e r m i t c l e r k f o r t h e Department.                 The

r e c o r d d o e s n o t d i s c l o s e t h e g r a d e a t which t h e p e r m i t c l e r k

p o s i t i o n was c l a s s i f i e d under t h e s t a t e employee c l a s s i f i c a t i o n

plan.        I n May 1979, Nye was promoted t o t h e p o s i t i o n of

g e n e r a l o f f i c e c l e r k V a t a p o s i t i o n c l a s s i f i c a t i o n of g r a d e

8.    Nye s t a t e d a t t h e t i m e of h e r promotion t h a t s h e u n d e r s t o o d

t h a t p u r s u a n t t o Department p o l i c y s h e would be p u t i n a

p r o b a t i o n a r y s t a t u s f o r s i x months.        I n August 1979, Nye's

s u p e r v i s o r s i n t h e Department d e t e r m i n e d t h a t s h e was n o t

p e r f o r m i n g a d e q u a t e l y i n h e r new p o s i t i o n .     On August 20,

Nye was t o l d of t h e d e f i c i e n c i e s i n h e r work and was g i v e n a

t e n day warning n o t i c e which informed h e r t h a t t h e d e f i c i e n c i e s

must be c o r r e c t e d .       Nye's work was s p o t checked d u r i n g t h e

e n s u i n g t e n day p e r i o d and h e r s u p e r v i s o r s d e t e r m i n e d t h a t

s h e had n o t c o r r e c t e d c e r t a i n d e f i c i e n c i e s .    Nye was t e r m i n a t e d

on August 31, 1979.

        Nye invoked t h e D e p a r t m e n t ' s g r i e v a n c e p r o c e d u r e s i n

order t o challenge her termination.                           A three-person hearing
committee was formed and a h e a r i n g was had on December 1 8 ,

1979.       Both Nye and t h e Department w e r e r e p r e s e n t e d by

counsel.        The p a r t i e s b r o u g h t w i t n e s s e s , p r e s e n t e d e x h i b i t s ,

and s u b m i t t e d b r i e f s and proposed d e c i s i o n s t o t h e committee.

The h e a r i n g committee t h e n gave i t s o p i n i o n and recommendation

t o t h e head of t h e Department of L i v e s t o c k .                    The committee

concluded t h a t d e p a r t m e n t s of s t a t e government may r e q u i r e

employees t o e n t e r i n t o a p r o b a t i o n a r y p e r i o d when t h e y a r e

promoted t o a new p o s i t i o n             and t h a t t h e Department of

Livestock's personnel p o l i c i e s properly included a probationary

p e r i o d f o r any promotion t o a new p o s i t i o n .                 Nye's r i g h t s

were viewed as t h e r i g h t s of a p r o b a t i o n a r y employee.

        The h e a r i n g committee found t h a t Nye knew and u n d e r s t o o d

t h a t s h e had made m i s t a k e s i n h e r new p o s i t i o n .             The committee

a l s o found t h a t Nye misunderstood t h e t o t a l i t y of t h e m i s t a k e s

made by h e r , and found t h a t s h e was under t h e i m p r e s s i o n

t h a t t h e problems had been r e s o l v e d .               The committee d e t e r m i n e d

t h a t t h e Department had n o t p r o p e r l y t r a i n e d and s u p e r v i s e d

Nye.     The h e a r i n g committee d e c i d e d t h a t t e r m i n a t i o n was a n

unduly h a r s h method of d e a l i n g w i t h Nye's d e f i c i e n c i e s ,

e s p e c i a l l y when h e r e x c e l l e n t p r i o r work r e c o r d w i t h t h e

Department w a s c o n s i d e r e d .        The committee d e t e r m i n e d t h a t

because t h e Department's grievance procedure a p p l i e d t o a l l

employees, even p r o b a t i o n a r y employees must be d e a l t w i t h

fairly.       The committee concluded t h a t t h e r e was a " l a c k of

t o t a l f a i r n e s s " i n t h e t e r m i n a t i o n of Nye.       The h e a r i n g

committee recommended t h a t Nye n o t be r e i n s t a t e d t o h e r

p r e v i o u s p o s i t i o n and n o t be awarded back pay.                    (It is

u n c l e a r whether " p r e v i o u s p o s i t i o n " r e f e r s t o t h e p e r m i t

c l e r k job o r t h e g e n e r a l o f f i c e c l e r k V j o b . )         The committee

f u r t h e r recommended t h a t Nye b e awarded $1,495.36 a s compensation
f o r t h e u n f a i r t r e a t m e n t g i v e n h e r by t h e Department.

F i n a l l y , t h e committee recommended t h a t Nye be g r a n t e d a n

e n t i t l e m e n t t o any g r a d e 7 o r 8 p o s i t i o n i n t h e Department

f o r which s h e was q u a l i f i e d .        The e n t i t l e m e n t was t o a p p l y

t o any such p o s i t i o n which became v a c a n t i n a two-year

period.

        The r e p o r t and recommendations of t h e h e a r i n g committee

were s u b m i t t e d t o t h e d i r e c t o r of t h e Department of L i v e s t o c k

i n a c c o r d a n c e w i t h Department g r i e v a n c e p r o c e d u r e s .       The

d i r e c t o r r e f u s e d t o f o l l o w t h e c o m m i t t e e ' s recommendations

and a f f i r m e d Nye's t e r m i n a t i o n .    Nye f i l e d s u i t i n D i s t r i c t

C o u r t s e e k i n g j u d i c i a l r e v i e w of t h e agency a c t i o n , damages

f o r s l a n d e r , a n d , by way of an amended c o m p l a i n t , damages

f o r wrongful d i s c h a r g e .      The d i s t r i c t judge d e n i e d t h e

p e t i t i o n f o r j u d i c i a l r e v i e w and d i s m i s s e d t h e c a u s e on i t s

m e r i t s b e c a u s e he d e t e r m i n e d t h a t Nye had o n l y a c o n t r a c t a t

will.      Nye a p p e a l e d , and r a i s e d t h e f o l l o w i n g i s s u e s :

        (1) Did t h e D i s t r i c t C o u r t e r r by denying j u d i c i a l

r e v i e w of t h e Department d i r e c t o r ' s d e c i s i o n ?

        (2)     Did t h e D i s t r i c t C o u r t err by d i s m i s s i n g t h e

s l a n d e r c o m p l a i n t ? and

         (3)    Did t h e D i s t r i c t C o u r t err by denying Nye's motion

t o amend t h e c o m p l a i n t f o r t h e p u r p o s e of s e e k i n g damages i n

wrongful d i s c h a r g e ?

J u d i c i a l Review

        Nye based h e r p e t i t i o n f o r r e v i e w i n t h e D i s t r i c t C o u r t
upon t h e language of t h e D e p a r t m e n t ' s g r i e v a n c e p o l i c y and

upon t h e Montana A d m i n i s t r a t i v e P r o c e d u r e Act ( M A P A ) .
        The Department of L i v e s t o c k h a s a d o p t e d p e r s o n n e l

p o l i c i e s developed by t h e Department of A d m i n i s t r a t i o n .

P o l i c y 3-0130,      D i s c i p l i n e Handling; P o l i c y 3-0125,           Grievances;
Vol. I11 Montana O p e r a t i o n s Manual.                    P o l i c y 3-0125,     Grievances,

provides t h a t :

                " I f t h e employee i s n o t s a t i s f i e d w i t h t h e
                outcome of t h e D i r e c t o r ' s d e c i s i o n , t h e
                g r i e v a n c e may be b r o u g h t b e f o r e t h e a p p l i -
                c a b l e s t a t u t o r i l y a u t h o r i z e d r e v i e w body:
                t h e Board of P e r s o n n e l Appeals, t h e M e r i t
                System C o u n c i l , t h e Human R i g h t s Commission,
                o r any a p p r o p r i a t e f e d e r a l e n f o r c e m e n t agency,
                while those grievances - allowed r e d r e s s
                                                         not
                -- a f o r e m e n t i o n e d m a y - pursued a t
                with the                                           be
                the d i s t r i c t court level. "                 (Emphasis s u p p l i e d . )

W a g r e e w i t h t h e Department t h a t t h e c o n c l u d i n g l a n g u a g e of
 e

t h e above e x c e r p t c a n n o t , of i t s e l f , c r e a t e a r i g h t of

j u d i c i a l review.       P o l i c y 3-0125 i s a n a d m i n i s t r a t i v e r e g u l a t i o n .

I n Montana, o n l y t h e l e g i s l a t u r e may v a l i d l y p r o v i d e f o r

j u d i c i a l r e v i e w of agency d e c i s i o n s .        "The l e g i s l a t u r e may

p r o v i d e f o r d i r e c t r e v i e w by t h e d i s t r i c t c o u r t of d e c i s i o n s

of a d m i n i s t r a t i v e agencies."        Mont. Const. a r t . V I I ,             §

4 , c l . 2.      A r i g h t of    j u d i c i a l r e v i e w c a n n o t b e c r e a t e d by

agency f i a t .

        I n o r d e r f o r Nye t o have a r i g h t of j u d i c i a l review

under MAPA, h e r s must be a " c o n t e s t e d c a s e . "                 S e c t i o n 2-4-

702 (1)( a ) , MCA, p r o v i d e s t h a t        I'   [ a ] p e r s o n who h a s e x h a u s t e d

a l l a d m i n i s t r a t i v e r e m e d i e s a v a i l a b l e w i t h i n t h e agency and

who i s a g g r i e v e d by a f i n a l d e c i s i o n i n a c o n t e s t e d c a s e i s

e n t i t l e d t o j u d i c i a l r e v i e w under t h i s c h a p t e r . "     A s defined

a t s e c t i o n 2-4-102 ( 4 ) , MCA,        " ' [ c ] o n t e s t e d c a s e ' means any
p r o c e e d i n g b e f o r e a n agency i n which a d e t e r m i n a t i o n of

l e g a l r i g h t s , d u t i e s , o r p r i v i l e g e s of a p a r t y i s r e q u i r e d

by law t o be made a f t e r a n o p p o r t u n i t y f o r h e a r i n g . "

                "The d e f i n i t i o n r e f e r s t o d e t e r m i n a t i o n s which
                a r e ' r e q u i r e d by law' t o be made a f t e r a n
                opportunity f o r hearing.                   This has broader
                meaning t h a n merely a s t a t u t o r y r e q u i r e m e n t
                f o r an opportunity f o r hearing.                      It includes
                s i t u a t i o n s where a h e a r i n g i s r e q u i r e d a s a
                m a t t e r of c o n s t i t u t i o n a l r i g h t . " Administra-
                t i v e P r o c e d u r e s Subcommittee Comments, T i t l e
                2, C h a p t e r 4 , P a r t 1, MCA ( A n n o t a t i o n s )      .
         A p p e l l a n t Nye h a s c i t e d no a u t h o r i t y , e i t h e r s t a t u t o r y

O r   c o n s t i t u t i o n a l , which i n d i c a t e s t h a t a p e r s o n i n Nye's

p o s i t i o n i s " r e q u i r e d by law" t o be g i v e n a n o p p o r t u n i t y f o r

h e a r i n g p r i o r t o a d e t e r m i n a t i o n of h e r o r h i s r i g h t s o r

privileges.           The r e s e a r c h conducted by t h i s C o u r t h a s n o t

r e v e a l e d any such l e g a l r e q u i r e m e n t .      W e conclude t h a t t h i s

c a s e d o e s n o t q u a l i f y as a c o n t e s t e d c a s e under MAPA.

        The D i s t r i c t C o u r t d i d n o t err i n r e f u s i n g t o g r a n t

Nye's p e t i t i o n f o r j u d i c i a l r e v i e w .

Slander

        Nye's c o m p l a i n t a l l e g e d t h a t h e r s u p e r v i s o r s a t t h e

Department of L i v e s t o c k made s t a t e m e n t s a b o u t h e r a b i l i t y t o

work and p e r f o r m t h e t a s k s a t h e r work s i t e which w e r e

e i t h e r i n t e n t i o n a l l y m a l i c i o u s o r made w i t h g r o s s d i s r e g a r d

for the truth.             The c o m p l a i n t a l s o a l l e g e d t h a t c e r t a i n

Department a d m i n i s t r a t o r s c a u s e d t h e s e s t a t e m e n t s t o b e

p u b l i s h e d i n Nye's n o t i c e o f d i s c h a r g e , and t h a t t h e p u b l i c a t i o n

was made w i t h r e c k l e s s d i s r e g a r d f o r t h e t r u t h .        Nye a l l e g e d

t h a t s h e w a s i n j u r e d i n v a r i o u s ways a s a r e s u l t of t h e

making of t h e above s t a t e m e n t s .            The Department of L i v e s t o c k

argued t o the D i s t r i c t Court t h a t t h e i n t r a d e p a r t m e n t a l

p u b l i c a t i o n s complained of by Nye were a b s o l u t e l y p r i v i l e g e d

under Montana law.               W e agree.

        S e c t i o n 27-1-804(1),         MCA,     provides t h a t a privileged

p u b l i c a t i o n i s one made i n t h e p r o p e r d i s c h a r g e of a n o f f i c i a l

duty.      The language of s e c t i o n 27-1-804(1)                    h a s been a p p l i e d

by t h i s C o u r t t o f a c t s q u i t e s i m i l a r t o t h o s e now b e f o r e u s .

I n S t o r c h v. Board of D i r . of E a s t . Mont. Reg. F i v e M.H.C.

( 1 9 7 6 ) , 169 Mont. 176, 545 P.2d 6 4 4 , t h e p l a i n t i f f was a n

employee of a s t a t e r e g i o n a l m e n t a l h e a l t h c e n t e r who had

been d i s c h a r g e d b e c a u s e he was u n c l e a n and unkempt and was
l i v i n g w i t h a woman n o t h i s w i f e .         One of t h e b a s e s f o r

S t o r c h ' s s u i t a g a i n s t h i s employers was t h a t t h e y had 1 - i b e l e d

him.      T h i s C o u r t h e l d t h a t t h e p r i v i l e g e a f f o r d e d by s e c t i o n

27-1-804 (1), MCA, i s a b s o l u t e .

                " [ I ]t c o n s t i t u t e s an a b s o l u t e p r i v i l e g e w i t h
                the only requirement being t h a t t h e i n t r a -
                d e p a r t m e n t communication be one r e n d e r e d w h i l e
                engaged i n a n ' o f f i c i a l d u t y . '         There c a n be
                no d o u b t t h a t t h e h i r i n g and f i r i n g of em-
                p l o y e e s i s p a r t of t h e ' o f f i c i a l d u t y ' of
                Montana Regional H e a l t h C e n t e r s .           ..
                "Whether s t a t e m e n t s made by s u c h p u b l i c
                o f f i c e r s i n r e l a t i o n t o t h e h i r i n g and f i r i n g
                of employees may be s u b j e c t t o a b s o l u t e
                p r i v i l e g e h a s been answered i n t h e a f f i r m a -
                t i v e many t i m e s .        Under f a c t s s i m i l a r t o t h e
                i n s t a n t c a s e , t h e United S t a t e s Supreme
                C o u r t i n B a r r v . Matteo, 360 U.S. 564, 571,
                79 S.Ct. 1335,-3 L.Ed. 2d 1434, 1 4 4 1 , s t a t e d
                t h a t i n s o f a r as a p u b l i c o f f i c e r w a s a c t i n g
                w i t h i n t h e s c o p e of h i s a u t h o r i t y h i s com-
                m u n i c a t i o n was a b s o l u t e l y p r i v i l e g e d . "
                S t o r c h , 169 Mont. a t 181-82, 545 ~ . 2 d t                   a
                647-48.

        W f i n d t h a t t h e a b s o l u t e p r i v i l e g e a f f o r d e d by s e c t i o n
         e

27-1-804(1),         MCA,    a p p l i e s t o t h e f a c t s of t h i s case.          Margaret

Nye had no c a u s e of a c t i o n f o r s l a n d e r , and t h e D i s t r i c t

C o u r t d i d n o t e r r by d i s m i s s i n g t h a t e l e m e n t of h e r c o m p l a i n t .

Wrongful D i s c h a r g e

        Nye s o u g h t t o amend h e r c o m p l a i n t t o add a c l a i m f o r

wrongful d i s c h a r g e , b u t t h e D i s t r i c t C o u r t r e f u s e d t o a l l o w

amendment.         W e do n o t a g r e e t h a t wrongful d i s c h a r g e c o u l d

n o t l i e a s a m a t t e r of law, and remand t o t h e D i s t r i c t C o u r t

t o a l l o w amendment of t h e c o m p l a i n t .

        The D i s t r i c t C o u r t ' s o r d e r of d i s m i s s a l a p p e a r s t o r e s t

upon t h e f a c t t h a t N y e ' s employment was " a t w i l l . "                Section

39-2-503,       MCA.      However, t h e t o r t o f wrongful d i s c h a r g e may

a p p l y t o a n a t w i l l employment s i t u a t i o n .          I n f a c t , the

t h e o r y o f wrongful d i s c h a r g e h a s developed i n r e s p o n s e t o

t h e h a r s h n e s s of t h e a p p l i c a t i o n of t h e a t w i l l d o c t r i n e ,
under which a n employment may be t e r m i n a t e d w i t h o u t c a u s e .

See P i e r c e v. Ortho P h a r m a c e u t i c a l Corp.               ( 1 9 8 0 ) , 84 N . J .   58,

417 A.2d 505.             The d e t e r m i n a t i o n of whether t h e c a u s e of

a c t i o n a r i s e s r e s t s upon whether a n u n f a i r o r u n j u s t i f i e d

t e r m i n a t i o n was i n v i o l a t i o n of p u b l i c p o l i c y .        Keneally v.

Orgain ( 1 9 8 0 ) ,              Mont.             ,   606 P.2d 1 2 7 , 37 St.Rep.



        A d m i n i s t r a t i v e r u l e s may be t h e s o u r c e of a p u b l i c

p o l i c y which would s u p p o r t a c l a i m of wrongful d i s c h a r g e .

P i e r c e , 417 A.2d a t 512.              The S t a t e of Montana, t h r o u g h t h e

Department of A d m i n i s t r a t i o n , d e v e l o p e d p o l i c y 3-0130,

d i s c i p l i n e h a n d l i n g , and p o l i c y 3-0125,        grievances.             These

r u l e s f o r t h e r e s o l u t i o n of employment d i f f i c u l t i e s w e r e

a d o p t e d by t h e Department of L i v e s t o c k .              P o l i c y 3-0130

states that        "   [ w ] hen p u n i t i v e d i s c i p l i n e i s n e c e s s a r y , j u s t
c a u s e , documentation of f a c t s and due p r o c e s s a r e r e q u i r e d . "

Under p o l i c y 3-0130

                " [ j l u s t cause i s determined i f t h e a l l e g e d a c t
                w e r e a n a c t u a l v i o l a t i o n of a n e s t a b l i s h e d
                agency s t a n d a r d , l e g i t i m a t e o r d e r , p o l i c y ,
                l a b o r agreement, f a i l u r e t o m e e t a p p l i c a b l e
                p r o f e s s i o n a l s t a n d a r d s , o r a s e r i e s of l e s s e r
                v i o l a t i o n s , and i f t h e employee would r e a s o n -
                a b l y be e x p e c t e d t o have knowledge of t h e
                aforementioned."

Due p r o c e s s i s d e f i n e d i n p o l i c y 3-0130 as

                ". . .      a l e g a l check d e s i g n e d t o e n s u r e a n
                employee: 1) i s informed of what a c t i o n i s
                b e i n g t a k e n and t h e r e a s o n s f o r i t , and 2)
                h a s a n o p p o r t u n i t y t o respond t o and q u e s t i o n
                t h e a c t i o n and t o defend o r e x p l a i n t h e
                questioned behavior o r a c t i o n s "              .
The a p p l i c a t i o n o f t h e above r u l e s may b e c h a l l e n g e d t h r o u g h

t h e g r i e v a n c e p o l i c y , 3-0125,      which was d e s i g n e d i n p a r t t o

" g u a r a n t e e a l l e l i g i b l e S t a t e employees a c o n s i s t e n t , e x p e d i t i o u s

and e q u i t a b l e means of a d j u s t i n g g r i e v a n c e s . "         W find that
                                                                                  e

t h e Department of L i v e s t o c k f a i l e d t o a p p l y i t s own r e g u l a t i o n s
 t o M a r g a r e t Nye, and t h e r e b y v i o l a t e d p u b l i c p o l i c y .

         M a r g a r e t Nye w a s t e r m i n a t e d from h e r p r o b a t i o n a r y

s t a t u s p o s i t i o n a s a n o f f i c e c l e r k V f o r performance d e f i c i e n c i e s

related to t h a t position.                   I n t h a t t e r m i n a t i o n , t h e Department

f o l l o w e d i t s t e r m i n a t i o n and g r i e v a n c e p r o c e d u r e s .    However,
t h e same p r o c e d u r e s were - a p p l i e d t o t h e p e r m i t c l e r k
                                    not

p o s i t i o n i n which Nye had a c h i e v e d permanent s t a t u s .                      "'Permanent
s t a t u s ' means t h e s t a t e a n employee a t t a i n s a f t e r s a t i s f a c t o r i l y

c o m p l e t i n g an a p p r o p r i a t e p r o b a t i o n a r y p e r i o d i n a permanent

position."           2-18-101 (6), MCA [now 2-18-101                      (lo),     MCA]   .
Having completed h e r p r o b a t i o n a r y p e r i o d , Nye had permanent

s t a t u s i n t h e p e r m i t c l e r k job.         The f a c t t h a t s h e c h o s e t o

a t t e m p t t o advance w i t h i n t h e Department d i d n o t e l i m i n a t e

h e r permanent s t a t u s i n t h e p e r m i t c l e r k p o s i t i o n .              Before

t h e Department c o u l d remove Nye from t h e p e r m i t c l e r k p o s i t i o n

i n which s h e had permanent s t a t u s , t h e Department had t h e

o b l i g a t i o n t o f o l l o w t h e p u b l i c p o l i c y e x p r e s s e d i n i t s own

regulations.

        There was no showing of " j u s t c a u s e " f o r removing Nye

from h e r permanent s t a t u s i n t h e p e r m i t c l e r k p o s i t i o n .               She

was e n t i t l e d t o p r o p e r t e r m i n a t i o n from h e r permanent p o s i t i o n .

The d i s c i p l i n e p o l i c y d e f i n e s "employee" as " a l l employees

who have s e r v e d a p r o b a t i o n a r y p e r i o d and a r e i n permanent

employment s t a t u s w i t h t h e s t a t e of Montana."                      M a r g a r e t Nye

was d e n i e d a " c o n s i s t e n t , e x p e d i t i o u s and e q u i t a b l e " r e s o l u t i o n

o f h e r problem, c o n t r a r y t o t h e p u b l i c p o l i c y e x p r e s s e d i n

t h e d i s c i p l i n e and g r i e v a n c e p o l i c i e s a d o p t e d by t h e Department

of Livestock.

        The r e c o r d i n d i c a t e s t h a t t h e Department d i d n o t r e a l i z e

o r r e c o g n i z e t h a t i t had an o b l i g a t i o n t o f o l l o w t h e same

procedure with r e g a r d t o t h e permit c l e r k p o s i t i o n as w a s
required f o r the o f f i c e clerk V position.                       I t appears t h i s

w i l l r e q u i r e a change i n p o l i c y s o f a r a s Department o p e r a t i o n s

a r e concerned.          Under s u c h c i r c u m s t a n c e s i t a p p e a r s f a i r t o

g i v e t h e Department t h e o p p o r t u n i t y t o c o n d u c t f u r t h e r

h e a r i n g s and f o l l o w t h e p r o c e d u r e s under i t s r e g u l a t i o n s t o

d e t e r m i n e i f t h e Department and Nye may work o u t a n a c c e p t a b l e

s o l u t i o n of t h e claim.

        W e a f f i r m t h e a c t i o n of t h e D i s t r i c t Court i n denying

t h e p e t i t i o n f o r j u d i c i a l r e v i e w and i n d i s m i s s i n g t h e c l a i m

of damages f o r s l a n d e r .         We, t h e r e f o r e , remand t h e c a s e t o

t h e D i s t r i c t Court with t h e following i n s t r u c t i o n s :

        (1) E n t e r a n a p p r o p r i a t e o r d e r r e i n s t a t i n g t h e c o m p l a i n t

of Nye s o f a r a s t h e c l a i m of wrongful d i s c h a r g e i s concerned.

        (2)     Enter an appropriate order holding t h e cause i n

abeyance f o r s u c h a p e r i o d of t i m e a s t h e D i s t r i c t C o u r t

s h a l l d e t e r m i n e t o be r e a s o n a b l e i n o r d e r t o g i v e t h e

Department o f L i v e s t o c k and t h e c l a i m a n t an o p p o r t u n i t y t o

d e t e r m i n e i f Nye s h a l l be immediately r e i n s t a t e d i n h e r

p e r m i t c l e r k job,     o r i f t h e Department d e s i r e s t o t e r m i n a t e

her i n t h a t p o s i t i o n , t o follow t h e procedures provided i n

t h e Department r e g u l a t i o n s , w i t h t h e aim of s e c u r i n g a f a i r

r e s o l u t i o n of t h e d i s p u t e between t h e p a r t i e s .

        (3)     I n t h e e v e n t t h a t a n e q u i t a b l e r e s o l u t i o n of t h e

controversy i s n o t achieved, t h e D i s t r i c t Court s h a l l e n t e r

s u c h f u r t h e r o r d e r a s i s a p p r o p r i a t e t o a l l o w t h e amendment

of t h e c o m p l a i n t f o r wrongful d i s c h a r g e and p r o c e e d t o

t r i a l of t h e c a s e .                                                                  I




                                                                                                          d
W e Concur:



Chief . , J u s t i c e