Rico v. Sch. Bd. of Miami-Dade County Pub. Sch.

Decision Date29 June 2010
Docket NumberCase No. 09-22281-Civ
Citation733 F.Supp.2d 1319
PartiesJulieann RICO, Plaintiff, v. SCHOOL BOARD OF MIAMI-DADE COUNTY PUBLIC SCHOOLS, Defendant.
CourtU.S. District Court — Southern District of Florida

John Scarola, Searcy Denney Scarola Barnhart & Shipley, West Palm Beach, FL, Tod N. Aronovitz, Leslie Elijah Stiers, Aronovitz Law, Miami, FL, for Plaintiff.

Gerald Edward Greenberg, Robert T. Kofman, Stearns Weaver Miller Weissler Alhadeff & Sitterson, Miami, FL, for Defendant.

ORDER ON MOTIONS FOR SUMMARY JUDGMENT AND TO REMAND

URSULA UNGARO, District Judge.

THIS CAUSE is before this Court upon Defendant's Motion for Summary Judgment (D.E. 47) and Plaintiff's Partial Motion for Summary Judgment (D.E. 50), both filed on May 7, 2010. Both parties filed Responses on June 1, 2010. (D.E. 69& 72.) And both parties filed Replies on June 18, 2010. (D.E. 89 & 93.)

THE COURT has reviewed the Motions and the pertinent portions of the record and is otherwise fully advised in the premises.

I

Plaintiff Julieann Rico claims her former employer, Defendant School Board of Miami-Dade County Public Schools (the "School Board") wrongfully terminated her employment. Accordingly, on July 6, 2009, Rico filed a four-count Complaint against the School Board and School Board member Marta Perez in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade County Florida. (D.E. 1.) In the Complaint, Rico alleges: breach of contract (Count I); defamation (Count II); abuse of process (Count III); and, violation of her civil rights by denying her due process pursuant to 42 U.S.C. § 1983 (Count IV).

The School Board removed the action to this Court on August 3, 2009 pursuant to 28 U.S.C. §§ 1441 and 1446, invoking federal question jurisdiction under 28 U.S.C. § 1331. (D.E. 1.) The School Board filed its Answer and Affirmative Defenses on August 10, 2009. (D.E. 5.) On September 18, 2009, this Court dismissed Marta Perez from the lawsuit. (D.E. 11.) Thereafter, the parties filed the instant Motions for Summary Judgment.

In its Motion for Summary Judgment, the School Board argues that it is entitled to summary judgment as to the breach of contract, abuse of process, and § 1983 due process claim. Specifically with respect to the § 1983 due process claim, the School Board argues that Rico had no property interest in her continued employment because her employment contract was terminable at will and that, in any event, the School Board provided constitutionally adequate process prior to her termination. In her Partial Motion for Summary Judgment, Rico argues that she is entitled to summary judgment as to the § 1983 due process claim.

II

The following facts are undisputed. On August 31, 2005, the School Board selected Rico as its next School Board Attorney.1 (D.E. 48-5, pp. 38-39; 48-2; 74-10.) After her selection, School Board member Frank Bolaños negotiated the terms of the Employment Agreement between the School Board and Rico. (D.E. 48-5, 17:6-25:25, 29:1-12; 74-10.) On September 28, 2005, the School Board approved Rico's Employment Agreement at a special School Board meeting. (D.E. 54, 57:10-64:22; 74-10.) The same day, Rico and the School Board entered into the Employment Agreement. (Compl. ¶ 6; Ans. ¶ 6; D.E. 48-8, 74-1 & 74-5.)

The Employment Agreement contemplated a term of employment "commencing November 14, 2005, and ending November 13, 2009, unless sooner terminated as provided herein." (Compl. ¶ 6; Ans. ¶ 6; D.E. 48-8 & 74-5.) With respect to termination, the Employment Agreement stated the following:

V. Termination.
A. Termination for Cause. The ATTORNEY may be removed from office after public notice of the action at any time by a majority vote of the Board as a whole, for cause, in accordance with the provisions set forth hereinafter. The term "for cause" shall be deemed to include:
Misconduct in office, incompetency, gross insubordination, willful neglect of duty, or conviction of a crime involvingmoral turpitude, as these terms are defined by Chapter 435, Florida Statutes.
The removal process "for cause" shall require a majority vote of the Board to adopt a Notice of Termination setting forth the reasons for removal and after such adoption, to furnish a copy to the ATTORNEY. At or subsequent to the adoption of the Notice of Termination, the Board may suspend the ATTORNEY from duty with pay for a period not to exceed thirty (30) days. The ATTORNEY shall have a period of thirty days from the adoption of the Notice of Termination to submit to the Board a response in writing to any or all of the reasons set forth in the Notice of Termination. In the event the ATTORNEY provides such written response in the thirty (30) day period, than at the end of the aforesaid thirty (30) day period, the Board shall make a final determination as to termination. If the ATTORNEY does not provide a written response in the thirty (30) day period, the termination shall then be considered final without further Board consideration. In the event of termination pursuant to this paragraph, the ATTORNEY shall be paid only for salary and benefits accrued to the date of termination....
B. Termination for No Cause. The ATTORNEY may be removed from her position at any time after public notice in the event that a majority of the Board determines that it is in the Board's best interest to terminate this Employment Agreement. In the event the Board terminates this Agreement pursuant to this subparagraph, the Board shall provide as severance payment to the ATTORNEY, all salary and accrued benefits under this Agreement; provided, however, that the ATTORNEY shall in no event receive less than two (2) years severance pay if termination occurs within the first two (2) years of the term of this Agreement; and if termination occurs within the months 24-36, then there shall be an equivalent of all salary and benefits for an eighteen (18) month period; and if termination occurs in months 36-48 of this Agreement, then ATTORNEY shall be due an equivalent of twelve (12) months salary and benefits.

(Compl. ¶¶ 6 & 7, Ex. 1; Ans. ¶¶ 6 & 7; D.E. 48-8 & 74-5.) Importantly, the Employment Agreement also provided for a "one-time moving expense allocation" of $15,000 relating to Rico's moving to Miami-Dade County. (D.E. 48-8.) (As discussed below, some dispute exists as to the exact language of the moving-expense provision.)

On June 16, 2008, School Board member Marta Perez questioned Rico regarding Rico's acceptance of the moving expense allocation under the Employment Agreement without having permanently moved to Miami-Dade County. (Compl. ¶ 11; Ans. ¶ 11; D.E. 48-4, 104:8-17; 48-13, pp. 18-19.) The next day, June 17, 2008, Rico sent a memorandum to the School Board in which she took issue with the "clear implication ... that [she had] improperly accepted benefits from the district." (D.E. 48-15.) Rico explained that her actions were in compliance with the terms of the Employment Agreement. (D.E. 48-15.) Rico also requested that an auditor review the agreement and her acceptance of the allocation. (D.E. 48-15.)

On or around June 26, 2008, the Miami-Dade County Office of the Inspector General (the "OIG") commenced an inquiry into the matter. (D.E. 48-12, 15:20-16:14.) The OIG's investigation included a number of meetings with Rico wherein she was interviewed "about the circumstances of the hiring and negotiations of the contract and what [she] did and the moving that [she] did to Miami during the summers,the costs." (D.E. 48-4, 65:12-21.) During these meetings Rico provided the OIG with numerous documents. (D.E. 48-12, 26:7-28:9; 48-17.) On July 10, 2008, the OIG provided a draft report of its findings to Rico (the "Draft Report"), which concluded, among other things, that: (i) Rico never moved to Miami-Dade County, but continued to reside in Palm Beach County; (ii) Rico accepted the $15,000 allocation (less taxes) on January 17, 2006; and, (iii) Rico and then School Board member Frank Bolaños made material handwritten changes to the Employment Agreement relating to the moving expense allocation which were not approved by the School Board. 2 (D.E. 48-16.) The draft report invited, but did not require, a response from Rico. (D.E. 48-16.) Rico eventually did respond in writing to the OIG, but not before the School Board held a meeting on the matter.

Before Rico responded to the Draft Report, the School Board published its agenda for the July 15, 2008 meeting, which included the following items:

H-1 REPAYMENT OF MOVING EXPENSE ALLOCATION
ACTION PROPOSED BY DR. MARTA PEREZ: That the School Board of Miami-Dade County, Florida:
1. direct the School Board Attorney to repay the money she received as a moving expense allocation; and
2. take appropriate action against the School Board Attorney for improperly taking the moving expense allocation.

* * *

H-18 ADMINISTRATIVE LEAVE FOR SCHOOL BOARD ATTORNEY JULIE ANN RICO
ACTION PROPOSED BY MR. RENIER DIAZ DE LA PORTILLA: That The School Board of Miami-Dade County, Florida direct Julie Ann Rico to be placed on Administrative Leave until the investigation by the Inspector General's Office is completed, and recommended action is proposed to the School Board of Miami-Dade County, Florida.3

(D.E. 48-19; 48-21; 48-23.) On the morning of July 15, 2008, prior to the School Board meeting, Rico delivered a memorandum to the School Board chairman and attached a check in the amount of the moving expense allocation previously paid to her by the School Board. (D.E. 48-24.) The memorandum stated, in pertinent part:

Contrary to the accusations in agenda items H-1 and H-18 scheduled for today's Board meeting, I believe that I have substantially complied with the terms of my contract providing for a moving expense allocation.... Even though I did everything reasonably possible to fulfill the contractual provision and actually expended amounts equaling or exceeding the allocation, I have decided to refund the allocation.... In light of this refund, the Board should deem that District
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