Deluca v. City of Jr.

Decision Date04 June 2019
Docket NumberNO. 3:15-CV-02475,3:15-CV-02475
Citation396 F.Supp.3d 392
Parties Cynthia DELUCA, DeLuca's Auto Repair and Towing, Inc., Plaintiffs, v. CITY OF HAZLETON, Hazleton Police Department, Frank V. DeAndrea, Jr., and Joseph Yannuzzi, Defendants.
CourtU.S. District Court — Middle District of Pennsylvania

Kimberly D. Borland, David Paul Tomaszewski, Borland and Borland, L.L.P., Wilkes-Barre, PA, for Plaintiffs.

Elizabeth Kramer, Frank J. Lavery, Jr., Joshua M. Autry, Lavery Law, Harrisburg, PA, for Defendants City of Hazleton, Hazleton Police Department, Joseph Yannuzzi.

MEMORANDUM

A. Richard Caputo, United States District Judge

Presently before me is a Motion for Summary Judgment (Doc. 59) filed by Defendants the City of Hazleton (the "City") and Joseph Yannuzzi ("Yannuzzi") (collectively, "Defendants"). In June 2015, Plaintiff DeLuca's Auto Repair & Towing, Inc. ("DeLuca's Auto Repair"), owned by Plaintiff Cynthia DeLuca ("DeLuca"), was removed from the City's towing rotation. Plaintiffs contend that this occurred because of their political involvement in the City mayoral primary which took place in May 2015. Plaintiffs also assert that Defendants disseminated false and stigmatizing statements in connection with their removal from the towing rotation in violation of their liberty interest in reputation. Defendants dispute that Plaintiffs were retaliated against in violation of the First Amendment and/or that Plaintiffs were deprived of their liberty interest in reputation without due process of law. Summary judgment will be granted in favor of Defendants on the stigma-plus claims because Plaintiffs were not deprived of a liberty interest in reputation without due process of law. However, because a reasonable jury could find that Plaintiffs' removal from the towing rotation was politically motivated, Defendants' motion for summary judgment with respect to the First Amendment retaliation claim will be denied.

I. Background

The facts are derived from Defendants' statement of facts, (see Doc. 59-3, generally ), Plaintiffs' opposition statement, (see Doc. 70, generally ), and the documents and testimony of record.

DeLuca is the president and owner of DeLuca's Auto Repair. (See Doc. 59-3, ¶ 1; Doc. 70, ¶ 1). Yannuzzi is the former City Mayor, and Frank V. DeAndrea, Jr. ("DeAndrea") is the former City Police Chief. (See Doc. 59-3, ¶ 40; Doc. 70, ¶ 40).1

In 2013, Plaintiffs applied to perform towing services for the City. (See Doc. 59-3, ¶ 15; Doc. 70, ¶ 15). In order to perform such services, Plaintiffs agreed to follow the Hazleton Police Department's Towing Service Requirements. (See Doc. 59-3, ¶ 16; Doc. 70, ¶ 16). Plaintiffs were first placed on the City's towing rotation in or around June 2013, and, at that time, there were three (3) other towing companies that provided towing services to the City. (See Doc. 59-3, ¶¶ 18-19; Doc. 70, ¶¶ 18-19). Pursuant to the City's towing rotation, one company would perform towing services for the City for a two (2) week period and then the City would rotate to the next company on the list. (See Doc. 59-3, ¶ 20; Doc. 70, ¶ 20).

In 2015, Yannuzzi, the City Mayor at the time, was challenged in the Republican mayoral primary by Jeff Cusat. (See Doc. 59-3, ¶ 27; Doc. 70, ¶ 27). In the Democratic mayoral primary, Grace Cuozzo ran against Jack Mundie. (See Doc. 59-3; ¶ 30; Doc. 70, ¶ 30; see also Doc. 59, Ex. "11"). DeLuca supported Cuozzo in her campaign, which was run out of DeLuca's Auto Repair. (See Doc. 59-3, ¶¶ 22-23; Doc. 70, ¶¶ 22-23). Ultimately, both Cuozzo and Yannuzzi lost their respective primaries in May 2015. (See Doc. 59-3, ¶¶ 28, 31; Doc. 70, ¶¶ 28, 31).

Around this time, DeLuca had several Facebook accounts/pages. (See Doc. 59-3, ¶ 32; Doc. 70, ¶ 32). While DeLuca testified that she did not access these pages from her business computer, her passwords for these accounts were stored on her laptop that she kept at DeLuca's Auto Repair. (See Doc. 59-3, ¶¶ 34-35; Doc. 70, ¶¶ 34-35).

Around early June 2015, a Facebook group titled "Hazleton's Corrupts" was created under one of DeLuca's accounts. (See Doc. 59, Ex. "13"). That Facebook page included posts alleging corruption by, inter alia , Yannuzzi and DeAndrea, and also claimed that another towing company in the City was bribing state and local officials. (See Doc. 59-3, ¶¶ 40-42; Doc. 70, ¶¶ 40-42).

DeLuca testified that she learned about the "Hazleton's Corrupts" Facebook group from Sandra DeAndrea, DeAndrea's wife. (See DeLuca Dep., 36:10-15, 40:23-41:1). DeLuca denied creating that group to Mrs. DeAndrea and stated that her Facebook account must have been hacked. (See Doc. 59-3, ¶ 51; Doc. 70, ¶ 51).

After learning about the "Hazleton's Corrupts" page from his wife, DeAndrea went to DeLuca's Auto Repair to speak with DeLuca, who stated that her account had been hacked. (See DeAndrea Dep., 12:1-15:2). DeLuca's theory is that the posts were created by either Dave Sirkot or Dave Basala. (See DeLuca Dep., 94:4-9)

At some point thereafter, DeAndrea and Yannuzzi spoke about their response to the Facebook posts. (See Doc. 59-3, ¶ 76; Doc. 70, ¶ 76). While DeAndrea testified that he told Yannuzzi that DeLuca claimed her Facebook account was hacked, Yannuzzi testified that he was not so informed. (See Doc. 59-3, ¶ 81). Rather, Yannuzzi indicated that he did not know of the purported hacking until he read about it in the newspaper. (See Yannuzzi Dep., 112:18-23). Yannuzzi ultimately concluded that the Towing Service Requirements had been violated. (See Doc. 59-3, ¶ 84; see also Yannuzzi Dep., 29:6-11).

Following his conversation with Yannuzzi, DeAndrea sent Yannuzzi an email stating:

Mayor,
Based on your conversation I have drafted the attached suspension letter for DeLuca's Towing. I have not mentioned anything pertaining to the Basala Parking Ticket incident as that is not public knowledge and I do not feel a parking ticket raises to the level of a 3 year suspension of business privileges.
The offense you have discussed with me of the Facebook posting, although not a repeated violation, is what I have listed for the suspension under section 1.06(6).
It is my professional opinion that this does not at all fit the definition for suspension however, after you review, if you feel it is appropriate I shall send the letter.
Please review this and let me know if you want it sent.
Thank you

(Doc. 57, Ex. "G"). The suspension letter reads as follows:

In accordance with Hazleton Police Department Towing Service requirements section 1.06 SUSPENSION OF TOWING SERVICE(S) you are hereby notified that your business has been suspended from towing vehicles for the City of Hazleton.
The specific reasons for this suspension under section six Repeated conduct by any employee of the towing service of a nature which, by means of the relationship the service has with the Department, tends to demean the public image of the Department are as follows:
Facebook posting under your personal account have accused the Mayor of the City of Hazleton with being criminal and accepting bribes. This by means of the relationship DeLuca's Towing has with the City of Hazleton and the Hazleton Police Department, tends to demean the public image of the Department.
Your suspension shall be for three years. It shall commence immediately and shall end June 10, 2018.
Prior to your towing service becoming eligible to receive service calls at the end of this suspension you must take appropriate remedial action. Your towing services recourse to this suspension is through civil litigation.

(Doc. 59, Ex. "17"). The suspension letter, dated June 9, 2015, was signed by DeAndrea. (See id. ). Pursuant to the cited section of the Towing Service Requirements, towing services can be suspended for "[r]epeated conduct by any employee of the towing service of a nature which, by means of the relationship the service has with the Department, tends to demean the public image of the Department. (3 year suspension up to and including lifetime revocation of privileges)." (Doc. 59, Ex. "9", § 1.06(C)(6)). The suspension letter was delivered by DeAndrea to DeLuca's husband Richard on June 9, 2015. (See Doc. 59-3, ¶ 90; Doc. 70, ¶ 90).

The following day, June 10, 2015, two local newspapers reported on the suspension of DeLuca's Auto Repair. (See Doc. 59-3, ¶ 93; Doc. 70, ¶ 93). An article appearing in the Times Leader stated that "Mayor Joe Yannuzzi did acknowledge that tower Cynthia DeLuca had supported a woman he considered his opponent in May's primary election, and criticized her for that support." (Doc. 59, Ex. "11"). The article goes on:

When contacted about the suspension, Yannuzzi initially cited city regulations when asked why the business was suspended. But he immediately acknowledged his belief that DeLuca's strong support of Cuozzo during her campaign was "over the top."
Yannuzzi said he believed DeLuca Towing employed Dan and Davey Basala, also strong supporters of Cuozzo, during the primary.
"The Basalas drove around and around the block during one of my political events in trucks sporting Cuozzo political advertisement," said Yannuzzi.
"Grace didn't run a campaign against Jack Mundie," he said of Cuozzo's victorious Democratic opponent. "She ran against me."

(Id. ). Yannuzzi, however, testified that it was incorrectly reported that he criticized DeLuca for supporting Cuozzo. (See Yannuzzi Dep., 64:5-14). But he did testify that DeLuca's employees did her campaigning for Cuozzo by driving her trucks around and that was "over the top." (Id. at 65:8-66:7). Yannuzzi though denies that DeLuca's support for Cuozzo factored into the suspension decision. (See id. at 71:3-6).

On June 12, 2015, Plaintiffs, by letter through counsel, responded to the suspension letter. (See Doc. 59-3, ¶ 107; Doc. 70, ¶ 107). Therein, Plaintiffs requested a hearing on the suspension and that the letter be "treated as an appeal from the suspension." (Doc. 59, Ex. "19").

After receiving Plaintiffs' June 12, 2015 letter, Yannuzzi and DeAndrea communicated with...

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