Gorin v. Osborne

• Decision Date: 29 March 1985
• Docket Number: No. 84-8366,84-8366
• Citation: 756 F.2d 834
• Parties: Cynthia B. GORIN, Plaintiff-Appellant, v. Elton S. OSBORNE, Jr., M.D., et al., Defendants-Appellees.
• Court: U.S. Court of Appeals — Eleventh Circuit

Page 834

756 F.2d 834

Cynthia B. GORIN, Plaintiff-Appellant, v. Elton S. OSBORNE, Jr., M.D., et al., Defendants-Appellees.

No. 84-8366.

United States Court of Appeals Eleventh Circuit.

March 29, 1985.

Frank E. Specht, Atlanta, Ga., for plaintiff-appellant.

Irma B. Glover, Marietta, Ga., Patricia Downing, Asst. Atty. Gen., Atlanta, Ga., for defendants-appellees.

Appeal from the United States District Court for the Northern District of Georgia.

Before JOHNSON and HATCHETT, Circuit Judges, and LYNNE ^*, District Judge.

LYNNE, District Judge:

Only one issue presented in this appeal merits discussion--namely, whether a prior state court affirmance of a state administrative ruling is entitled to res judicata and collateral estoppel effect in a subsequent federal civil rights action brought pursuant to 42 U.S.C. Sec. 1983, notwithstanding the fact that the state court's review was limited to a determination of whether there was "any evidence" in the record sufficient to support the factual findings of the administrative tribunal. The court below found that the plaintiff's Sec. 1983 claims were precluded under the doctrines of res judicata and collateral estoppel, and therefore granted the defendant's motion for summary judgment as to those claims. We agree with the decision of the court below, and accordingly affirm.

The facts may be briefly stated. In May, 1980, plaintiff-appellant Cynthia B. Gorin was notified by her supervisors that she was being discharged from her position as a service coordinator of the Cobb-Douglas Mental Health/Mental Retardation Center, an agency operated by the Cobb County (Georgia) Board of Health. Plaintiff protested her discharge by filing a complaint with the State Personnel Board, which held a hearing on the complaint on June 5 and June 6, 1980. Before the conclusion of the hearing, however, plaintiff and her supervisors entered into a settlement agreement which provided for reinstatement subject to certain conditions and deadlines. Pursuant to this agreement, plaintiff returned to work on June 9, 1980. Her return to work was short-lived, however, for she received a new notice of discharge effective July 24. Again, plaintiff filed a complaint with the State Personnel Board to protest the discharge. Following a full adversarial hearing, in which the parties were represented by counsel and had the opportunity to present and cross-examine witnesses, the hearing officer found that plaintiff had been "negligent or inefficient in performance of duties and in failure to comply with some of the terms of a previously agreed settlement." He expressly based these findings of fact on "the preponderance of the evidence" presented to him. On appeal, the decision was affirmed by the State Personnel Board. Alleging that her termination was motivated by caprice and malice and that she had been deprived of her "property right to her employment," plaintiff filed an appeal in the Cobb County Superior Court. Applying the "any evidence" standard of review for administrative findings of fact enunciated in Hall v. Ault, 240 Ga. 585, 242 S.E.2d 101 (1978), ¹ the court affirmed the Board's decision and upheld the termination. A further appeal to the Georgia Court of Appeals was voluntarily dismissed.

Obviously unsatisfied with the results of these proceedings, plaintiff decided to try a new avenue of attack to relitigate her discharge. In June of 1982, plaintiff filed this Sec. 1983 action, alleging that her termination was in violation of due process and her rights to equal protection. The remedy sought was reinstatement with back pay. Plaintiff also sought damages from certain of the defendants for tortious interference with her performance of the terms of the settlement agreement previously reached between the parties. On the defendant's motions for summary judgment, the district court held that plaintiff's Sec. 1983 claim was barred by the earlier proceedings before the State Personnel Board and the state courts under the doctrines of res judicata and collateral estoppel.

We conclude that the district court's ruling was entirely correct. ² Kremer v. Chemical Construction Corp., 456 U.S. 461, 102 S.Ct. 1883, 72 L.Ed.2d 262 (1982), a case quite similar to the one sub judice, is the controlling precedent. Kremer involved a Title VII claim that was alleged to be precluded by prior state administrative and judicial proceedings. A state administrative agency had summarily dismissed Kremer's employment discrimination claims, and the Appellate Division of the New York Supreme Court had affirmed. Subsequently, Kremer filed a Title VII suit in federal district court. On writ of certiorari, the Supreme Court affirmed the rulings of the district court and the Court of Appeals for the Second Circuit and held that Kremer's Title VII claims were precluded by the prior state proceedings. In so doing, the Court held that under 28 U.S.C. Sec. 1738, ³ federal courts must give preclusive effect to the judgment of a state court whenever the courts of the state from which the judgment emerged would do so, provided that the litigants had a "full and fair opportunity" to litigate their claims and the prior state proceedings satisfied "the applicable requirements of due process." Kremer, 456 U.S. at 480-482, 102 S.Ct. at 1896-1897. Moreover, the Court in Kremer made clear that where these prerequisites are satisfied,

[i]t is well established that judicial affirmance of an administrative determination is entitled to preclusive effect.... There is no requirement that judicial review must proceed de novo if it is to be preclusive.

456 U.S. at 480-81, n. 21, 102 S.Ct. at 1896-97, n. 21. Thus, the Kremer Court held that the judicial affirmance by the Appellate Division of the New York Supreme Court was entitled to preclusive effect even though the underlying agency ruling was a summary dismissal without a formal hearing, and even though the reviewing court found only that the agency ruling was not "arbitrary and capricious." 456 U.S. at 484.

We believe that the Kremer case is squarely applicable here. It is clear that Georgia courts would accord preclusive effect to the decision of an administrative tribunal as affirmed by the Superior Court. See Woods v. Delta Air Lines, Inc., 237 Ga. 332, 227 S.E.2d 376 (1976) (doctrines of res judicata and estoppel by judgment are applicable to awards of the State Board of Workmen's Compensation on all questions of fact in matters in which it has jurisdiction); Seaboard Fire & Marine Ins. Co. v. Smith, 146 Ga.App. 893, 247 S.E.2d 607 (1978) (an award of the State Board of Workmen's Compensation, unappealed from or affirmed on appeal, is res judicata). Accord, Hicks v. Standard Accident Ins. Co., 52 Ga.App. 828, 184 S.E. 808 (1936). Therefore, the district court was bound by statute to accord preclusive effect to the prior state proceedings, see 28 U.S.C. Sec. 1738, so long as the prior state proceedings provided the plaintiff with a full and fair opportunity to litigate her claims and satisfied the applicable requirements of due process. Kremer, 456 U.S. at 482, 102 S.Ct. at 1897. The fact that this action is brought pursuant to 42 U.S.C. Sec. 1983, whereas Kremer involved an action brought pursuant to Title VII, is not a material distinction. The Supreme Court has made it abundantly clear that "nothing in the language of Sec. 1983 remotely expresses any congressional intent to contravene the common-law rules of preclusion or to repeal the express statutory requirements of the predecessor of 28 U.S.C. Sec. 1738." Allen v. McCurry, 449 U.S. 90, 97-98, 101 S.Ct. 411, 416-417, 66 L.Ed.2d 308 (1980). Accord, Migra v. Warren City School District Bd. of Education, 465 U.S. 75, 104 S.Ct. 892, 79 L.Ed.2d 56, 64 (1984). Thus, the principles enunciated in Kremer apply with equal force here.

In the present case, appellant claims that the standard of review applied by the state court in reviewing the administrative board's findings of fact was so narrow and deferential that the state proceedings failed to satisfy due process. Therefore, she argues, the state judicial affirmance of the administrative result is not entitled to preclusive effect under Kremer. ⁴ This contention is without merit. We are satisfied that Ms. Gorin had a full and fair opportunity to litigate her claims in the prior state proceedings, and that the "panoply of procedures" offered Ms. Gorin at the administrative level, "complemented by administrative as well as judicial review, is sufficient under the due process clause." Cf. Kremer, 456 U.S. at 484, 102 S.Ct. at 1899. Nor is Kremer distinguishable from the case at hand in terms of the standards of judicial review applied in the two cases. The Kremer decision specifies no minimum level of judicial review as a prerequisite to the preclusivity of a judicial affirmance of state administrative rulings. Indeed, the Kremer Court emphasized that "when a complainant has had a full opportunity to present his evidence and exhibits" before the administrative tribunal--as Ms. Gorin clearly did--then even judicial review confined to a determination of whether there was a "rational basis in the record" for the agency decision would constitute a "decision on the merits" and would be entitled to preclusive effect under 28 U.S.C. Sec. 1738. 456 U.S. at 480-81, n. 21 (discussion of State Div. of Human Rights v. New York State Drug Abuse Commission, 59 App.Div.2d 332, 336, 399 N.Y.S.2d 541, 544 (1977)). Accord, Unger v. Consolidated Foods Corp., 693 F.2d 703, 706 (7th Cir.1982), cert. denied 460 U.S. 1102, 103 S.Ct. 1801, 76 L.Ed.2d 366 (1982). See also Frazier v. East Baton Rouge Parish School Board, 363 F.2d 861, 862 (5th Cir.1966) ("[i]f state administrative action is first challenged in the state court, and the state court acts judicially, the state court decision is res judicata and bars a decision by a federal court" in a subsequent Sec. 1983 action based upon the same actionable...