Nampa Charter School, Inc. v. DeLaPaz

• Decision Date: 23 April 2004
• Docket Number: No. 29451.,29451.
• Citation: 140 Idaho 23,89 P.3d 863
• Parties: NAMPA CHARTER SCHOOL, INC., Plaintiff-Appellant-Cross Respondent, v. Conrad and Ersilia DELAPAZ, husband and wife, Defendants-Respondents-Cross Appellants.
• Court: Idaho Supreme Court

89 P.3d 863

140 Idaho 23

NAMPA CHARTER SCHOOL, INC., Plaintiff-Appellant-Cross Respondent, v. Conrad and Ersilia DELAPAZ, husband and wife, Defendants-Respondents-Cross Appellants.

No. 29451.

Supreme Court of Idaho, Boise, February 2004 Term.

April 23, 2004.

Lynch & Associates, Boise, for appellants. James B. Lynch argued.

Eberle, Berlin Kading, Turnbow & McKlveen, Chtd., Boise, for respondent. Warren E. Jones argued.

TROUT, Chief Justice.

I. FACTUAL AND PROCEDURAL BACKGROUND

Nampa Charter School, Inc., (NCS), is a charter school organized under I.C. § 33-5200, the Public Charter School Act of 1998, and is governed by the Board of Trustees of Nampa School District No. 131 (NSD # 131).

NCS hired Ersilia DeLaPaz (DeLaPaz) and assigned her bookkeeping and receptionist duties. DeLaPaz enrolled her child, who suffers from Down's syndrome, in NCS's special education program. After DeLaPaz had been employed by NCS for a few months, School Administrator Rebecca Stallcop (Stallcop) began to feel DeLaPaz was not performing her job properly and repeatedly insisted DeLaPaz improve her performance. In response, according to NCS, DeLaPaz attempted to discredit Stallcop and the special education program by making a series of complaints. Among the statements allegedly made by DeLaPaz were that Stallcop was unhappy with the performance of many teachers and that Stallcop intended to leave NCS, taking four teachers from NCS with her to a new charter school. NCS also claims DeLaPaz informed a parent she had information that would "take the charter down." NCS further contends DeLaPaz made false statements concerning the honesty, integrity, and competence of Stallcop, implied Stallcop engaged in illegal behavior, and commented the teachers were "mean to the students." Finally, NCS contends that in April 2001, DeLaPaz approached a teacher monitoring a class and falsely accused Stallcop of misusing grant money.

NCS terminated DeLaPaz's employment on April 30, 2001, for refusing to follow directions and demonstrating she was not willing or competent to perform her bookkeeping tasks. Shortly thereafter, DeLaPaz filed a complaint with the Department of Education, asserting several deficiencies in the services received by her child. Following an investigation by the Department of Education, NCS agreed to implement some corrective measures.

In September and October of 2001, an NCS special education teacher began to maintain and send notebooks home to De-LaPaz pertaining to the interaction with and assistance rendered to DeLaPaz's child, together with a number of written letters inviting DeLaPaz to meet and discuss the special education program and to set up an individual education plan for DeLaPaz's child. According to NCS, DeLaPaz resisted or ignored the letters and made harassing telephone calls to teachers in response. During this period, DeLaPaz sent five letters to NCS criticizing the special education program and administrators, and sent copies of the letters to members of the Board and certain NSD # 131 employees.

On January 10, 2002, DeLaPaz filed a complaint with the Department of Education asserting NCS violated her right to privacy. The Department of Education rejected this complaint. On June 13, 2002, DeLaPaz filed a complaint with the U.S. Department of Education Office for Civil Rights alleging discrimination and retaliation, which apparently remains unresolved.

NCS filed a complaint against DeLaPaz and her husband September 13, 2002, alleging DeLaPaz used her "child's participation in the special education program in a manner which is calculated to accomplish the often stated purpose of DeLaPaz to `bring down' [NCS]." NCS claimed DeLaPaz's actions caused "serious and unnecessary disruption of the legitimate affairs of [NCS]" and a financial loss in excess of $10,000. Attached to the complaint were letters DeLaPaz had sent to members of the Board, NSD # 131, and NCS. NCS asserts these letters amount to libel and slander because they contain intentionally false statements calculated by DeLaPaz to induce NSD # 131 to revoke or fail to renew NCS's charter. NCS requested an injunction under Rule 65 of the Idaho Rules of Civil Procedure, barring DeLaPaz from making any further false statements concerning NCS and Stallcop and preventing DeLaPaz from sending copies of her letters to the Board and NSD # 131. Further, NCS alleged DeLaPaz tortiously interfered with NCS's responsibilities to fulfill its legislative mandate.

DeLaPaz filed a motion to dismiss for failure to state a claim pursuant to I.R.C.P. 12(b)(6). In response, NCS filed an affidavit in opposition to defendants' motion to dismiss. The district judge held a hearing on the motion and considered only the complaint, refusing to consider the affidavit on the basis that the motion required only an examination of the pleadings. Thereafter the district judge issued a decision and order finding that NCS is a governmental entity and therefore, cannot maintain an action for libel and slander against an individual. Further, the district judge determined that NCS failed to provide any Idaho statute or case law supporting a cause of action in tort for interference with an entity's responsibilities under state statutes. As a result, the district court granted DeLaPaz's 12(b)(6) motion and dismissed NCS's claims with prejudice.

DeLaPaz then filed a motion for attorney fees under I.C. §§ 12-117, 12-121, and 12-123, and I.R.C.P. 11 and 54(d). The district judge issued an order denying most of the attorney fees requested by DeLaPaz, but noted that the cause of action for tortious interference was frivolous and warranted attorney fees under I.C. §§ 12-121 and 12-123. The court awarded DeLaPaz 20% of the attorney fees requested together with costs.

NCS filed a timely notice of appeal and DeLaPaz cross-appealed the attorney fee order.

II. STANDARD OF REVIEW

In Bradbury v. Idaho Judicial Council, 136 Idaho 63, 67, 28 P.3d 1006, 1010 (2001), we stated the standard of review relevant to this case:

The Court's standard of review for an order of the district court dismissing a case pursuant to I.R.C.P. 12(b)(6) is the same as the summary judgment standard of review. See Coghlan v. Beta Theta Pi Fraternity, 133 Idaho 388, 398, 987 P.2d 300, 310 (1999); see also Orthman v. Idaho Power Co., 126 Idaho 960, 962, 895 P.2d 561, 563 (1995). After viewing all facts and inferences from the record in favor of the non-moving party, the Court will ask whether a claim for relief has been stated. Coghlan, 133 Idaho at 398, 987 P.2d at 310." The issue is not whether the plaintiff will ultimately prevail, but whether the party is `entitled to offer evidence to support the claims.' " Id., citing Orthman, 126 Idaho at 962, 895 P.2d at 563, quoting Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 1686, 40 L.Ed.2d 90, 96 (1974).

III. DISCUSSION

A. The district court did not abuse its discretion by treating DeLaPaz's motion as a 12(b)(6) motion.

At the hearing on the motion to dismiss, NCS argued the district judge should treat DeLaPaz's 12(b)(6) motion as a motion for summary judgment and allow the parties to engage in discovery before considering the motion. Specifically, NCS argued that a conflict existed as to whether DeLaPaz's letters and statements amounted to constitutionally protected free speech and asked the district court to consider an affidavit. The district judge refused to consider the affidavit and instead, looked only to the pleadings to determine whether under Rule 12(b)(6), the complaint presented any valid claims for relief. On appeal to this Court, NCS again argues the trial court should have treated the 12(b)(6) motion as a motion for summary judgment, but fails to explain why, other than to argue for more time to conduct discovery.

I.R.C.P. 12(b) provides:

If, on a motion asserting the defense numbered (6) to dismiss for failure of the pleading to state a claim upon which relief can be granted, matters outside the pleading are presented to and not excluded by the court, the motion shall be treated as one for summary judgment and disposed of as provided in Rule 56....

In this case, however, the district judge did not consider any matters outside the complaint and specifically refused to consider the affidavit filed by NCS because the district court considered this only as a motion to dismiss based on the pleadings. Given the nature of the motion filed before the district court, we find no error in the judge's determination that this motion should be resolved solely on the pleadings presented. As discussed below, NCS alleged no valid claim for relief and it was not necessary to prolong this case by permitting discovery in a situation where no claim had been stated.

B. The district judge properly granted DeLaPaz's 12(b)(6) motion to dismiss.

The district judge dismissed NCS's libel and slander claim for failure to state a claim under I.R.C.P. 12(b)(6) because, as a matter of law, a governmental entity cannot maintain a libel and slander claim against a person whose speech is protected as it relates to a matter of public concern¹.

1. Injunctive relief.

In its complaint, NCS requested an injunction "compelling [DeLaPaz] to refrain from making any other unfounded false statements about [Stallcop], and its teachers and administrators," and an injunction "preventing [DeLaPaz] from sending copies of correspondence to Bob Henry or other members of the [Board] of [NSD # 131] which contain false, fraudulent misstatements." The district judge found DeLaPaz's letters and statements concerned a public issue and NCS could not obtain an injunction against DeLaPaz because it would be an impermissible prior restraint on speech.

In Near v. Minnesota, 283 U.S. 697, 51 S.Ct. 625, 75 L.Ed. 1357 (1931), the United States Supreme Court held that an injunction on speech critical of a public official is an impermissible prior restraint. In Near, the state of Minnesota commenced a...