Lucas v. Monroe County Sheriff

• Decision Date: 22 September 1999
• Docket Number: No. 98-1876,98-1876
• Citation: 203 F.3d 964
• Parties: (6th Cir. 2000) Larry Lucas, d/b/a Lucas Towing, Plaintiff, Sottile's Inc., d/b/a S.T.A.R. Towing; James Sottile, Plaintiffs-Appellants, v. Monroe County; Carl Van Wert, Sheriff; Ronald Cole, Undersheriff; Darwin Paz, Captain; Tom Hoffman, Captain, Defendants-Appellees. Argued:
• Court: U.S. Court of Appeals — Sixth Circuit

Page 964

203 F.3d 964 (6th Cir. 2000)

Larry Lucas, d/b/a Lucas Towing, Plaintiff, Sottile's Inc., d/b/a S.T.A.R. Towing; James Sottile, Plaintiffs-Appellants, v. Monroe County; Carl Van Wert, Sheriff; Ronald Cole, Undersheriff; Darwin Paz, Captain; Tom Hoffman, Captain, Defendants-Appellees.

No. 98-1876

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

Argued: September 22, 1999

Decided and Filed: February 18, 2000

Rehearing and Suggestion for Rehearing En Banc Denied April 6, 2000

Appeal from the United States District Court for the Eastern District of Michigan at Detroit; No. 96-72332--Paul D. Borman, District Judge. [Copyrighted Material Omitted] Matthew E. Krichbaum, Richard A. Soble, SOBLE & ROWE, Ann Arbor, Michigan, for Appellants.

Linda E. Taylor, Marcia L. Howe, JOHNSON, ROSATI, LABARGE, ASELTYNE & FIELD, Farmington Hills, Michigan, for Appellees.

Before: MERRITT and CLAY, Circuit Judges; ALDRICH, District Judge.^*

OPINION

CLAY, Circuit Judge.

Plaintiffs-Appellants, James Sottile and Sottile's Inc., d/b/a S.T.A.R. Towing, appeal from the order entered by the United States District Court for the Eastern District of Michigan, granting summary judgment on behalf of Defendants-Appellees, Monroe County and related parties, in this action alleging that Defendants violated Plaintiffs' rights under both the United States and Michigan constitutions, and are liable for tortious interference with Plaintiffs' economic relations. For the reasons set forth below, we REVERSE in part and AFFIRM in part the judgment of the district court.

BACKGROUND

Procedural History

On March 19, 1996, James Sottile and Larry Lucas, two separate wrecker service operators in Monroe County, Michigan, filed suit in state court, in their own behalf and in the names of their separate wrecker service companies, against Defendants alleging violation of 42 U.S.C. § 1983 and various state law claims. Plaintiffs and Lucas alleged improper and retaliatory conduct arising out of the Monroe County Sheriff's Department's ("Sheriff's Department") administration of the County's list of wrecker companies to be called for towing services. Specifically, the complaint charged that Plaintiffs and Lucas were removed from this tow call list in retaliation for making public criticisms of the Sheriff's Department, in violation of their First Amendment rights under the United States Constitution and Article I of the Michigan Constitution; that the Sheriff's Department exercised political patronage in its administration of the tow call list, also in violation of the First Amendment and the Michigan Constitution; that Plaintiffs and Lucas were removed from the tow call list without due process of law, in violation of their constitutional due process rights guaranteed by the Fourteenth Amendment of the United States Constitution; and that the Sheriff's Department's conduct constituted tortious interference with Plaintiffs' and Lucas' economic relations. Defendants removed the action to federal court on May 20, 1996. On February 27, 1998, following discovery, Defendants moved for summary judgment.

On July 1, 1998, the district court entered an order granting in part and denying in part Defendants' motion for summary judgment. Defendants' motion for summary judgment was denied on Lucas' retaliation claim, but granted on Plaintiffs' retaliation claim, on grounds that Plaintiffs were not regular service providers to Monroe County ("County"); summary judgment was also granted on all of Plaintiffs' and Lucas' remaining claims.¹ This timely appeal followed.

Facts

The County Sheriff's Department maintains a towing company rotation list. The call list is maintained to allocate towing services to assist police officers in moving stranded vehicles throughout the County. When an officer needs towing services, the police dispatcher calls a company listed as approved to tow in the "service area" where the tow is needed. If the first towing company called is unavailable, the dispatcher calls the next company listed for that area, and so on until the job is accepted. If towing services are again required, the dispatcher begins with the next company listed for the area involved, in rotation.

A towing company may not be placed on the call list unless the Sheriff's Department authorizes the company's eligibility. Eligibility is based on a number of factors: (i) where the company is located; (ii) whether the location is an area saturated with other companies on the list; (iii) whether the company is properly insured; (iv) whether the company has certain kinds of towing vehicles; (v) whether the company passes a safety and equipment inspection; and (vi) whether the company maintains twenty-four hour service in the service area. However, if a motorist whose vehicle requires towing requests a particular towing company, the dispatcher contacts that company for the job regardless of whether the company requested is on the Sheriff's Department's call list. There are no contracts, either written or oral, between the towing companies and the Sheriff or the County regarding towing services. Payment for towing services is made by the motorist directly to the towing company; the County is not responsible for payments to the towing company.

In 1991, the Sheriff's Department announced that towing companies were required to bring grievances they had regarding the list directly to the Sheriff's Department personnel prior to airing such grievances publicly. Towing companies who failed to comply with this requirement risked removal from the call list. The Sheriff's May 9, 1991, letter to all towing companies then on the list, stated in part:

This is to remind you that, consistent with the present procedure, any complaints/questions you may have regarding tow calls are to be directed to Undersheriff Cole in writing. Do not address these issues with the dispatchers, deputies, or supervisors.

In the future, failure to abide by these procedures will necessitate the removal of your name from the call list at the time you contact an unauthorized person until the time of your complaint is received in writing and throughly investigated.

(J.A. at 114.)

By the mid-1990's, Sheriff Van Wert ("Sheriff") was subjected to increasing public criticism regarding his administration of the tow call list. Accusations were rampant that the Sheriff's Department gave preferential treatment to tow companies owned by "higher end" contributors to the Sheriff's political campaigns. In fact, the Sheriff admitted at his deposition that Dorothy Galina, owner of Monroe Towing, was a "higher end" campaign contributor. Plaintiffs adduced evidence at their deposition indicating that Monroe Towing received preferential treatment compared to other tow companies on the call list: (i) Monroe Towing was the only tow truck company in two areas, and received the greatest number of calls; (ii) Monroe Towing's service area was increased in size to the detriment of another tow truck operator, Larry Lucas; and (iii) Monroe Towing received increased territory when another tow company, McClain's, went out of business. Plaintiffs also adduced evidence that another tow company, Owens Towing, received preferential treatment in exchange for political favors.

Sottile, the sole owner of Sottile's, Inc., d/b/a S.T.A.R. Towing ("S.T.A.R."), applied to be placed on the call list in December 1993. Sottile stated that he had four tow trucks that could perform light and heavy duty towing. Plaintiffs' equipment was inspected, but deficiencies were found in Plaintiffs' equipment. Plaintiffs immediately cured the deficiencies to the County's satisfaction; nonetheless, their application was rejected, as Defendants claimed that the County already had sufficient towing services available in Plaintiffs' geographic service area, Area 8. The Sheriff's February 24, 1994, letter to Plaintiffs stated: "[a]t the present time their [sic] are no intentions to add to our towing services. In April we will be reviewing the services and if we decide to add you will be considered." (J.A. at 254.) However, Plaintiffs noted that in January of 1994, Interstate Towing went out of business in Area 8, thereby leaving only Monroe Towing to service that area². Sottile maintained that S.T.A.R. could have merely taken Interstate Towing's place.

On April 2, 1994, Plaintiffs again reapplied to be placed on the call list for Areas 4 and 8. After three weeks with no response, Plaintiffs contacted Captain Tom Hoffman of the Sheriff's Department. Hoffman reportedly told Plaintiffs that the County had no intention of adding any additional towing services because it did not want to place a financial burden on other tow services and put a good towing company out of business. Hoffman then named three towing companies on the call list that supposedly served the areas for which Plaintiffs had applied. However, Sottile replied that two of those companies were out of business and the third never served those areas. Notably, Hoffman did not name the only active towing company that was actually serving Area 8 at that time: Monroe Towing. Hoffman assured Plaintiffs he would look into the situation. Over the next several months, Sottile tried again to contact Hoffman. After his efforts were unsuccessful, Sottile spoke to Undersheriff Ronald Cole, who repeated what Hoffman had said.

On January 5, 1995, Sottile wrote a letter to a member of the Monroe County Board of Commissioners ("Board") setting forth his frustrations with the Sheriff and the tow list; this letter recounted in detail Sottile's efforts to be placed on the list and his futile communications with the Sheriff's Department. On January 30, 1995, Sottile's attorney requested that Plaintiffs be placed on the list.

At this juncture, the facts central to Plaintiffs' claims occur in the public eye and must be viewed from the perspective of public controversy. Allegations of impropriety reached their peak in the...