Caldeira v. County of Kauai

• Decision Date: 02 February 1989
• Docket Number: No. 87-2959,87-2959
• Citation: 866 F.2d 1175
• Parties: Ronald CALDEIRA, Plaintiff-Appellant, v. COUNTY OF KAUAI, et al., Defendants-Appellees.
• Court: U.S. Court of Appeals — Ninth Circuit

Page 1175

866 F.2d 1175

Ronald CALDEIRA, Plaintiff-Appellant, v. COUNTY OF KAUAI, et al., Defendants-Appellees.

No. 87-2959.

United States Court of Appeals Ninth Circuit.

Argued and Submitted Nov. 18, 1988.

Decided Feb. 2, 1989.

Robert A. Smith, Honolulu, Hawaii, for plaintiff-appellant.

Warren C.R. Perry, Lihue, Hawaii, for defendant-appellee County of Kauai.

Charles K.Y. Khim, Honolulu, Hawaii, for defendant-appellee Hawaii Government Employees' Ass'n.

Appeal from the United States District Court for the District of Hawaii.

Before CHAMBERS, O'SCANNLAIN and TROTT, Circuit Judges.

TROTT, Circuit Judge:

Ronald Caldeira appeals from an adverse summary judgment in his civil rights action against his former employer and union. Caldeira alleged, pursuant to 42 U.S.C. Sec. 1983, that his employer, County of Kauai ("County"), violated his constitutional rights when it terminated his employment. Caldeira also alleged his former union, Hawaii Government Employee's Association ("Union"), was liable as a co-conspirator with defendant County under 42 U.S.C. Sec. 1985(3). The district court granted summary judgment in favor of both the County and the Union. We affirm.

I FACTS AND PROCEEDINGS

Ronald Caldeira was hired as a lifeguard by defendant County in 1978. Caldeira held this position from 1978 until he was discharged on October 11, 1983. Caldeira alleged that beginning in late 1978 or early 1979, the County developed and engaged in a conspiracy to effect his discharge without just cause. Caldeira also alleged that defendant Union joined in this conspiracy with the County beginning in June 1980.

The gravamen of Caldeira's civil rights claim is that he had a substantive due process right to employment by virtue of the clause in a collective bargaining agreement which provided that, as a county employee, he would not be terminated except for proper cause. To substantiate his claim, Caldeira asserted twelve "episodes" of alleged wrongdoing by the defendants which were ostensibly designed to effect his ultimate discharge.

The district court approached the disposition of the defendants' summary judgment motion in terms of the alleged twelve "episodes." "Episodes" one through ten involved alleged wrongdoing by defendant County to develop a negative work record and hostile work environment for Caldeira in order to effect his eventual discharge. "Episodes" three through ten also involved wrongdoing by defendant Union, in which Caldeira claimed it conspired with the County by acquiescing in the scheme to effect his discharge by failing to represent him adequately and thereby promote the development of his negative work record and hostile work environment.

As the district court recognized, "episode" eleven was "the crux of [Caldeira's] section 1983 claims against defendant County." Excerpt of Record (ER) 78 at 3. It involved incidents occurring during the pool's closing in 1983, when Caldeira was ordered to do some yard and janitorial work. Because he considered this a demotion in his work status, Caldeira disobeyed these work orders. As a result, Caldeira was suspended and discharged by the County. Pursuant to the collective bargaining agreement with the County, defendant Union invoked the arbitration procedure and represented the plaintiff therein.

"Episode" twelve involved the alleged wrongdoing of the defendants to distort and misrepresent the record presented to the arbitrator to prevent Caldeira from having a fair hearing and thereby recover his job.

On January 15, 1985, the arbitrator found that the work orders were proper, Caldeira was insubordinate, and the County had just and proper cause to dismiss him. On July 16, 1985, Caldeira filed this action in the federal district court. On September 25, 1987, the Hawaii Fifth Circuit affirmed the arbitration decision.

On October 9, 1987, the district court granted defendants' motion for summary judgment. The district court judge, Harold M. Fong, ruled that he was precluded from considering "episode" eleven because the Hawaii state court had confirmed the arbitration award, making it binding upon the federal district court under the Full Faith and Credit Statute, 28 U.S.C. Sec. 1738. Judge Fong concluded that once the "linchpin" ("episode" eleven) of Caldeira's Secs. 1983 and 1985 causes of action was removed, "episodes" one through ten were not sufficient to sustain Caldeira's claims, as they were not the cause of Caldeira's discharge. Judge Fong then ruled that, as to "episode" twelve (the arbitration itself), Caldeira had presented no evidence from which a jury could infer the existence of a conspiracy between the two defendants.

Judgment was entered dismissing Caldeira's action on October 13, 1987. On October 26, 1987, the district court denied Caldeira's motion for reconsideration. Caldeira timely appeals.

II ISSUES ON APPEAL

1. Did the district court err in giving preclusive effect to the Hawaii state court judgment upholding Caldeira's discharge?

2. Did the district court err in failing to find a conspiracy between defendant County and defendant Union?

III STANDARD OF REVIEW

We review de novo a district court's ruling on the availability of res judicata both as to claim preclusion and issue preclusion. Guild Wineries and Distilleries v. Whitehall Co., 853 F.2d 755, 758 (9th Cir.1988). If available, we review the district court's application of the doctrine for abuse of discretion. Eilrich v. Remas, 839 F.2d 630, 632 (9th Cir.), cert. denied, --- U.S. ----, 109 S.Ct. 60, 102 L.Ed.2d 38 (1988). A grant of summary judgment is reviewed de novo. Darring v. Kincheloe, 783 F.2d 874, 876 (9th Cir.1986).

IV DISCUSSION

A. Preclusive Effect of State Proceedings

It is well established that, even in a suit under section 1983, 28 U.S.C. Sec. 1738 requires federal courts give the same "full faith and credit" to the records and judicial proceedings of any state court that they would receive in the state from which they arise. ¹ Migra v. Warren City School Dist. Bd. of Educ., 465 U.S. 75, 104 S.Ct. 892, 79 L.Ed.2d 56 (1984); Allen v. McCurry, 449 U.S. 90, 101 S.Ct. 411, 66 L.Ed.2d 308 (1980). It is equally well settled that 28 U.S.C. Sec. 1738 requires federal courts give an administrative adjudication reviewed by a state court the same "full faith and credit" the adjudication would enjoy in the state's own courts. Mack v. South Bay Beer Dist., Inc., 798 F.2d 1279, 1283 (9th Cir.1986) (citing Marrese v. American Academy of Orthopaedic Surgeons, 470 U.S. 373, 105 S.Ct. 1327, 84 L.Ed.2d 274 (1985); McDonald v. City of West Branch 466 U.S. 284, 104 S.Ct. 1799, 80 L.Ed.2d 302 (1984)). ²

While the Supreme Court has not directly addressed the issue of whether an arbitrator's decision that has been reviewed by a state court is entitled to preclusive effect, see, e.g., Byrd, 470 U.S. at 223, 105 S.Ct. at 1243 ("The question of what preclusive effect, if any, the arbitration proceedings might have is not yet before us ... and we do not decide it"), it has consistently held that an unreviewed arbitration decision does not preclude a federal court action. See, e.g., McDonald, 466 U.S. at 288-92, 104 S.Ct. at 1801-04; Barrentine v. Arkansas-Best Freight System, Inc., 450 U.S. 728, 742-45, 101 S.Ct. 1437, 1445-47, 67 L.Ed.2d 641 (1981); Alexander v. Gardner-Denver Co., 415 U.S. 36, 56-60, 94 S.Ct. 1011, 1023-25, 39 L.Ed.2d 147 (1974).

However, the considerations that motivated the Supreme Court to deny preclusive effect to unreviewed arbitration decisions are not present in a case like the one before us, which involves a reviewed arbitration decision. The Supreme Court has declined to create a common law bar to relitigation of unreviewed arbitration decisions, reasoning that because arbitration is not a "judicial proceeding" within the meaning of section 1738, preclusion is not statutorily required. See McDonald, 466 U.S. at 288, 104 S.Ct. at 1801. Here, in contrast, the plain language of section 1738 controls, requiring us to give the state court's determination preclusive effect. The state court's confirmation of the arbitration award constitutes a judicial proceeding for purposes of section 1738, and thus must be given the full faith and credit it would receive under state law. See Rider v. Pennsylvania, 850 F.2d 982, 994 (3d Cir.1988), cert. denied, --- U.S. ----, 109 S.Ct. 556, 102 L.Ed.2d 582 (1988) (giving preclusive effect in a subsequent Title VII suit to a state court's review of an arbitrator's decision).

To determine whether the requirements of issue preclusion have been satisfied, this court must look to the law of the state in question. Takahashi v. Board of Trustees, 783 F.2d 848, 850 (9th Cir.), cert. denied, 476 U.S. 1182, 106 S.Ct. 2916, 91 L.Ed.2d 545 (1986); 28 U.S.C. Sec. 1738. If, under Hawaii law, Caldeira is precluded from litigating his claims in state court, he cannot pursue them in federal court unless the prior state proceedings did not provide him a full and fair opportunity to present his claims. Kremer v. Chemical Constr. Corp., 456 U.S. 461, 480-81, 102 S.Ct. 1883, 1896-97, 72 L.Ed.2d 262 (1982).

1. Preclusion Under Hawaii Law

As the district court noted, the "linchpin" of Caldeira's section 1983 action rests on the allegation that defendant County terminated his employment "when no good cause existed therefore." ER 34 at 5. The district court concluded that this substantive due process claim had been raised and decided by the state circuit court. It held that Hawaii preclusion law would therefore prevent Caldeira from relitigating the claim in state court.

Under Hawaii law, as generally, three basic questions must be answered in the affirmative before "collateral estoppel," or issue preclusion, may be applied: "(1) Was the issue decided in the prior action identical with the issue presented in the present action? (2) Was there a final judgment on the merits in the prior action? (3) Was the party against whom the doctrine is...