Strickland v. City of Albuquerque, 96-2233

• Citation: 130 F.3d 1408
• Decision Date: 10 December 1997
• Docket Number: No. 96-2233,96-2233
• Parties: 13 IER Cases 1017, 97 CJ C.A.R. 3200 Elbert STRICKLAND, Plaintiff-Appellant, v. CITY OF ALBUQUERQUE, Defendant-Appellee, and Arthur Blumenfeld, PH.D., Chief Administrative Officer, Defendant.
• Court: United States Courts of Appeals. United States Court of Appeals (10th Circuit)

Page 1408

130 F.3d 1408

13 IER Cases 1017, 97 CJ C.A.R. 3200

Elbert STRICKLAND, Plaintiff-Appellant, v. CITY OF ALBUQUERQUE, Defendant-Appellee, and Arthur Blumenfeld, PH.D., Chief Administrative Officer, Defendant.

No. 96-2233.

United States Court of Appeals,

Tenth Circuit.

Dec. 10, 1997.

Paul Livingston, Albuquerque, NM, for Appellant.

Bruce Thompson, Asst. City Attorney (Robert M. White, City Attorney, with him on the brief), Albuquerque, NM, for Appellee.

Before BALDOCK and HOLLOWAY, Circuit Judges, and BROWN, ^* District Judge.

BROWN, District Judge.

Plaintiff appeals a summary judgment order of the district court holding that plaintiff's claims against the City of Albuquerque under 42 U.S.C. § 1983 are barred by res judicata. We have jurisdiction pursuant to 28 U.S.C. § 1291. For the reasons set forth herein, we affirm.

Plaintiff began employment with the City of Albuquerque as a Sun Trans Bus Operator on August 27, 1990, and became a full-time, permanent employee. On March 18, 1992, the City administered a drug test on which plaintiff tested positive for cannabinoids or marijuana. On March 30, 1992, the City advised plaintiff in writing of a disciplinary predetermination hearing that would be held on April 14, 1992. The notification stated that the disciplinary action under consideration was termination. Plaintiff, who was represented by an attorney, attended the hearing. Plaintiff argued that the City did not adhere to its own procedures for mandatory drug testing and that the drug test yielded false positive results because he never used marijuana. Because of the positive drug test, the City decided to terminate plaintiff as of April 17, 1992.

After a post-termination hearing held August 31, 1992, the Personnel Hearing Officer, T. Zane Reeves, issued findings of fact and concluded that the City had just cause to terminate plaintiff's employment. On October 15, 1992, the City Personnel Board voted 3-0 to uphold the Hearing Officer's recommendation to sustain plaintiff's termination. Plaintiff's challenge of his termination and the hearing and appeal afforded to him were made pursuant to the City of Albuquerque's Merit System Ordinance, which provides that city employees may only be terminated for specified reasons and provides them with certain procedural rights, including an adversary hearing before a hearing officer and review of the hearing officer's determination by the Personnel Board. See e.g., Saavedra v. City of Albuquerque, 859 F.Supp. 526, 527 (D.N.M.1994), aff'd 73 F.3d 1525 (10th Cir.1996). The Merit System Ordinance and the New Mexico statutes permit an appeal of a Personnel Board ruling to the New Mexico state district courts. Review of such rulings in the district court is based upon the record and is generally limited to determining whether the Board acted arbitrarily or capriciously or whether the order was unsupported by substantial evidence or was otherwise unlawful. Albuquerque, N.M., Merit System Ordinance § 2-9-25(D)(5).

On November 17, 1992, plaintiff filed a "Petition for Writ of Certiorari" in the Second Judicial District Court of Bernalillo County, New Mexico, seeking review of the Personnel Board's decision. The City was one of the named defendants in the action. The parties filed briefs on the matter and on October 19, 1995, presented oral arguments to District Court Judge Gerard W. Thomson. Based upon a review of the record, Judge Thomson entered a judgment on November 27, 1995, in which he concluded that the Personnel Board's decision was not arbitrary or capricious, contrary to law, or unsupported by substantial evidence. On December 20, 1995, plaintiff appealed Judge Thomson's ruling to the New Mexico Court of Appeals, which subsequently affirmed the judgment. Aplt. Br., Exh. 2.

On August 31, 1993, after plaintiff had filed the state court action but before that court had entered its judgment, plaintiff filed the instant action in the United States District Court for the District of New Mexico. The federal complaint, based upon 42 U.S.C. § 1983, alleged that the defendants violated plaintiff's Fourth Amendment right to be free from unreasonable searches by administering a drug test without reasonable suspicion, and his Fourteenth Amendment rights to due process of law by failing to provide adequate procedures in connection with his termination. The complaint also asserted several state law causes of action. The City was again one of the named defendants. ¹ On August 17, 1994, the district court entered an order staying the federal case pending resolution of the state court proceeding. ² After judgment was entered in the Bernalillo County action, the City moved for summary judgment in the federal case, arguing that plaintiff's claims were now barred by res judicata. The federal district court agreed, finding that the claims were barred because they could have been asserted in the Bernalillo County action. The district court declined to exercise supplemental jurisdiction over plaintiff's state law claims and dismissed them without prejudice. Plaintiff now appeals the summary judgment order, arguing that the district court erred in its application of res judicata.

Discussion.

The starting point for addressing the preclusive effect of the state court judgment is the federal "full faith and credit" statute, 28 U.S.C. § 1738, which provides in part:

Such Acts, records and judicial proceedings or copies thereof, so authenticated, shall have the same full faith and credit in every court within the United States ... as they have by law or usage in the court of such State ... from which they are taken.

Section 1738 requires federal courts to give the same preclusive effect to state court judgments that those judgments would be given in the state courts from which they emerged. Kremer v. Chemical Construction Corp., 456 U.S. 461, 466, 102 S.Ct. 1883, 1889, 72 L.Ed.2d 262 (1982). Accordingly, the court is required to give the Bernalillo County district court judgment the same preclusive effect it would be given in the courts of New Mexico.

Res judicata, or "claim preclusion," bars litigation of claims that were or could have been advanced in an earlier proceeding. State Ex Rel. Martinez v. Kerr-McGee Corp., 120 N.M. 118, 898 P.2d 1256, 1259 (N.M.Ct.App.1995). Under New Mexico law there are four requisite elements for res judicata: (1) the same party or parties in privity; (2) the identity of capacity or character of persons for or against whom the claim is made; (3) the same subject matter; and (4) the same cause of action in both suits. Myers v. Olson, 100 N.M. 745, 676 P.2d 822, 824 (1984). There is no dispute that the first three elements are satisfied here. The conflict centers on the fourth element.

The New Mexico Supreme Court has adopted the rules set forth in Restatement (Second) of Judgments Sections 24 and 25 for defining the scope of a "claim" or "cause of action" that is barred by a prior judgment. See Three Rivers Land Co. v. Maddoux, 98 N.M. 690, 652 P.2d 240, 245 (1982), overruled in part on other grounds by Universal Life Church v. Coxon, 105 N.M. 57, 728 P.2d 467, 469 (1986). Restatement Section 24 provides:

(1) When a valid and final judgment rendered in an action extinguishes the plaintiff's claim pursuant to the rules of merger or bar (see §§ 18, 19)[ ³], the claim extinguished includes all rights of the plaintiff to remedies against the defendant with respect to all or any part of the transaction, or series of connected transactions, out of which the action arose.

(2) What factual grouping constitutes a "transaction", and what groupings constitute a "series", are to be determined pragmatically, giving weight to such considerations as whether the facts are related in time, space, origin, or motivation, whether they form a convenient trial unit, and whether their treatment as a unit conforms to the parties' expectations or business understanding or usage.

In adopting this transactional view of "claim," the Restatement reflects the fact that under modern forms of procedure the parties have the means to present all material relevant to the transaction without confinement to a single substantive theory or form of relief. As such, "[t]he law of res judicata now reflects the expectation that parties who are given the capacity to present their 'entire controversies' shall in fact do so." Restatement(Second) of Judgments § 24, Comment a.

The Restatement rules lead us to conclude that plaintiff's allegations under § 1983 are part of the same claim he asserted in Bernalillo County District Court. In "Strickland I" plaintiff challenged his termination under the City's Merit System Ordinance. He argued that the drug test and the procedures used by the City to terminate him were faulty. In terms of time, space, and origin, these allegations are almost identical to those underlying plaintiff's § 1983 claims. There is a substantial, if not complete, overlap in terms of the witnesses and proof relevant to both actions. See Ford v. New Mexico Dept. of Pub. Safety, 119 N.M. 405, 891 P.2d 546, 554 (1994). The fact that plaintiff's federal claims attempt to vindicate interests or obtain remedies other than those pursued or made available under the Merit System Ordinance does not make the prior action a different "claim." Even where a single act causes a number of different harms or gives rise to liability under a number of different legal theories, there is ordinarily only one transaction. Restatement(Second) of Judgments § 24, Comment c. As the New Mexico Court of Appeals has recognized, "[i]n line with this approach, federal decisions in employment cases have determined under both federal and state law of judgments that where the thrust of both lawsuits is whether the plaintiff was wrongfully discharged, an adverse judgment in the first suit bars the second." Ford, 119 N.M. 405, 891 P.2d at 554 (citing cases from numerous jurisdictions where plaintiff was...