Diaz-Garcia v. Surillo-Ruiz

• Decision Date: 23 June 2015
• Docket Number: Civil No. 13–1473 (FAB).
• Parties: Alba DIAZ–GARCIA, et al., Plaintiffs, v. Rafael SURILLO–RUIZ, et al., Defendants.
• Court: U.S. District Court — District of Puerto Rico

113 F.Supp.3d 494

Alba DIAZ–GARCIA, et al., Plaintiffs,

v.Rafael SURILLO–RUIZ, et al., Defendants.

Civil No. 13–1473 (FAB).

United States District Court, D. Puerto Rico.

Signed June 23, 2015.

Claudio Aliff–Ortiz, Eliezer Alberto Aldarondo–Lopez, Eliezer Aldarondo–Ortiz, Sheila J. Torres–Delgado, Ivan M. Castro–Ortiz, Aldarondo & Lopez Bras, Guaynabo, PR, for Plaintiffs.

Aurea Yadira Rivera–Alvarado, Janitza M. Garcia–Marrero, Department of Justice, Michelle Pirallo–Di Cristina, Michelle Pirallo–Di Cristina Law Offices, Lavinia Aparicio–Lopez, Rafael E. Rivera–Sanchez, San Juan, PR, for Defendants.

OPINION & ORDER

BESOSA, District Judge.

Current and former employees of the Diagnosis and Treatment Health Center of Yabucoa ("CDT–Yabucoa") brought this suit, pursuant to 42 U.S.C. § 1983, against SM Medical Services, CSP ("SM Medical"), the president of SM Medical, Victor Simmons ("Simmons"), the director of SM Medical, Ricardo Rivera–Garcia ("Rivera") (collectively, the "SM Medical defendants"), the Municipality of Yabucoa (the "Municipality"), the mayor of Yabucoa, Rafael Surillo–Ruiz ("Mayor Surillo"), and the Municipality's liaison officer, Lydia Cruz ("Officer Cruz") (collectively, the "Municipal defendants"), alleging political discrimination in violation of the First and Fourteenth Amendments to the United States Constitution as well as the laws of Puerto Rico. (Docket Nos. 1, 44.)

Currently before the Court are defendants' motions for summary judgment, (Docket Nos. 131, 135), which plaintiffs opposed, (Docket No. 155). For the reasons discussed below, the Court GRANTS in part and DENIES in part the SM Medical defendants' motion for summary judgment, (Docket No. 131), and GRANTS in part and DENIES in part the Municipal defendants' motion for summary judgment, (Docket No. 135).

SUMMARY JUDGMENT STANDARD

A court will grant summary judgment if the moving party shows, based on the materials in the record, "that there is no genuine dispute as to any material fact and [she] is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). A fact is "material" if it potentially affects the outcome of the case. Calero–Cerezo v. U.S. Dep't of Justice, 355 F.3d 6, 19 (1st Cir.2004). A factual dispute is "genuine" if its resolution could favor either party at trial. Id.

If the moving party shows the absence of a genuine issue as to any outcome-determinative fact, the nonmoving party must "demonstrate, through submissions of evidentiary quality, that a trialworthy issue persists" to forestall the entry of summary judgment. DePoutot v. Raffaelly, 424 F.3d 112, 117 (1st Cir.2005). Conclusory allegations, improbable inferences, and rank speculation are insufficient to discharge the nonmovant's burden. Id.

At the summary judgment stage, a court must construe the entire record in a light most hospitable to the nonmoving party and draw all reasonable inferences in her favor. Id. What is more, the reviewing court refrains from making credibility determinations, weighing the evidence, and drawing legitimate inferences from the facts, because those tasks are properly left to the jury. See Hicks v. Johnson, 755 F.3d 738, 743 (1st Cir.2014) ; cf. Calero–Cerezo, 355 F.3d at 19 ("So long as the plaintiff's evidence is both cognizable and sufficiently strong to support a verdict in her favor, the factfinder must be allowed to determine which version of the facts is most compelling.").

BACKGROUND

Viewing the evidence in a light most favorable to plaintiffs, as the nonmoving party, and drawing all reasonable inferences in their favor, the factual background is as follows:

The CDT–Yabucoa

Puerto Rico law creates government-owned health care centers—"centros de diagnostico y tratamiento de salud" ("CDTs")—designed to provide services to indigent persons. See Docket No. 44 at pp. 23–24 & n. 3. The relevant statute directs Puerto Rico's Secretary of Health to enter into agreements with municipalities to effectuate the administration and operation of those health care centers. See id. Pursuant to this statute, the Municipality of Yabucoa¹ entered into an agreement with the Puerto Rico Department of Health (the "PRDOH") by which the Municipality assumed responsibility for the administration and control of its local CDT. Id. at ¶ 21. With this agreement, the Municipality became the nominating authority at the CDT–Yabucoa. Id. at ¶ 22. The CDT–Yabucoa's employees were considered municipal employees. Id.

The SM Medical Contract

On February 3, 2011, the Municipality entered into a five-year contract with SM Medical, a private corporation registered and organized under the laws of Puerto Rico, to assist with fulfilling its obligations to the PRDOH. Docket No. 44 at ¶¶ 24–25; see also Docket No. 160–1 at p. 1. Pursuant to the contract, SM Medical agreed to assume the responsibility of, at a minimum, the following services:

(A) The full operation of the CDT that includes, among others: Laboratory; X–Rays; Pharmacy; specialist clinics such as Pediatrics, Cardiology, Gynecology and other agreed by the Municipality and SM Medical; and

(B) Emergency Room—24hrs/7days a week services.

(Docket No. 160–1 at p. 2.) SM Medical further committed to "improv[ing] and maximiz[ing]" these services, "develop[ing] and implement[ing] new services [and] programs," and "maintain[ing] a quality of services in accordance to the public health standard for good practice." Id. SM Medical is required to "provide periodic reports to the Municipality of the functioning and operation of the [emergency room] facilities." Id. at p. 3.

For its services, the Municipality agreed to pay SM Medical $95,833.33 per month for the first seventeen months of the contract's five-year term, and $83,333.33² per month thereafter. (Docket No. 160–1 at p. 7.) The contract also provided for profit-sharing with respect to certain earnings from SM Medical's operation of the facilities. See Docket No. 44 at ¶ 27.

Upon execution of the contract, SM Medical assumed the CDT–Yabucoa's personnel, employees,³and professional service contracts. (Docket No. 160–1 at p. 5.) Employees hired to work at the CDT–Yabucoa after the contract's execution would not be considered "municipal employees" unless: (1) the Municipality recruited them directly; and (2) the municipal budget covered their salary. Id. For its general hiring, SM Medical agreed to consult with the Municipality regarding the selection of personnel. Id. at p. 9. The contract calls for the creation of a municipal officer position, a "municipal liaison," to be appointed by the mayor. (Docket No. 160–1 at p. 5.) As the title suggests, the municipal liaison is "the liaison between the [M]unicipality and SM Medical," as well as "the advisor who governs on administrative matters in [the contract]." Id. The municipal liaison is specifically responsible for evaluating SM Medical's requests and making corresponding recommendations to the mayor.Id. The municipal liaison is to be considered a municipal officer. Id.

According to the contract, SM Medical's relationship to the Municipality is that of an "independent contractor," and "[n]othing contained in th[e] agreement will constitute or be interpreted as [creating] a partnership, joint venture, or lease" between the Municipality and SM Medical. (Docket No. 160–1 at p. 7.)

The contract was signed by Angel "Papo" Garcia-de Jesus ("Garcia"), the mayor of Yabucoa at the time, on behalf of the Municipality, and Simmons, SM Medical's president, on behalf of SM Medical. See Docket No. 160–1 at p. 10. After making the arrangement with SM Medical, Garcia frequently visited the CDT–Yabucoa and remained actively involved in its affairs. See, e.g., Docket No. 156–6 at pp. 42–43; Docket No. 156–1 at pp. 10–13.

Approximately two years into the contract, the Municipality became delinquent on its payments to SM Medical. See Docket No. 44 at ¶ 33. By the end of 2012, uncertainty arose as to whether SM Medical would maintain its contractual relationship with the Municipality. See id. at ¶¶ 2, 33, 55–56.

The 2012 Yabucoa Mayoral Election

On November 6, 2012, after a highly contentious race, Mayor Surillo, the Popular Democratic Party ("PDP") candidate, defeated Garcia, the New Progressive Party ("NPP") candidate and incumbent, to become the mayor of Yabucoa. (Docket No. 44 at ¶¶ 10, 38.) Mayor Surillo took office on January 14, 2013. Id. at ¶ 10.

After the election, rumors began to circulate at the CDT–Yabucoa regarding the impact of the regime change. See Docket No. 156–3 at pp. 36–53. A politically-charged environment developed, and within it, employees affiliated with the former mayor's campaign felt an air of uncertainty. See id.

Against this backdrop emerge the events giving rise to the political discrimination claims at issue.

The Plaintiffs

Plaintiffs are four current and former CDT–Yabucoa employees who allegedly suffered adverse employment actions because of their political leanings: (1) Alba Diaz–Garcia ("Diaz"); (2) Nezmaida Medina–Sanchez ("Medina"); (3) Carlos Lazu–Santiago ("Lazu"); and (4) Juana Velazquez–Torres ("Velazquez"). The nature of each plaintiff's employment and political affiliation is discussed below.

Plaintiff Diaz

Diaz worked as the administrative secretary at the CDT–Yabucoa from May 11, 2011, until she was terminated on January 31, 2013. (Docket No. 156–3 at pp. 13, 24–32.) During her tenure, Diaz provided administrative support for the municipal liaison, the corporate representative, the director of nursing, and the 911 supervisor. Id. at p. 31. Diaz's duties also included greeting visitors, assisting with payroll, answering phones, and other tasks assigned to her by Rivera or Simmons. Id. at pp. 31–32.

Diaz is a member of the NPP and is active in Yabucoa politics. (Docket No. 156–3 at pp. 52–53.) She often worked at polling centers and attended meetings, caravans, walkabouts, and other political events. Id. Diaz is the niece of former mayor Garcia, who was involved in Yabucoa politics for twelve or more years. Id. In light of...