Pasour v. Philadelphia Housing Authority
Frederick K. PASOUR v. PHILADELPHIA HOUSING AUTHORITY
Attorneys
Alan B. Epstein, Jennifer L. Myers, Spector Gadon & Rosen, PC, Philadelphia, PA, for Plaintiff., Eric J. Schreiner, Lorena E. Ahumada, Steven J. Engelmyer, Kleinbard Bell & Brecker LLP, Philadelphia, PA, for Defendant.
Full Opinion (html_with_citations)
MEMORANDUM
Currently pending before the Court is Defendant Philadelphia Housing Authority (âDefendantâ)âs Motion for Summary Judgment as to the sole remaining claim asserted by Plaintiff Frederick K. Pasour (âPlaintiffâ). For the following reasons, Defendantâs Motion for Summary Judgment is denied.
I. FACTUAL HISTORY
Plaintiff was hired by Defendant as labor counsel in June 2003. (Am. Compl.
When Plaintiff was hired, Carl Greene (âGreeneâ) was Defendantâs Executive Director. (Am. Compl. ¶ 16.) In August 2010, a series of allegations regarding Greene were reported in newspapers and on television and radio broadcasts, including allegations that some of Defendantâs former employees made sexual harassment claims against Greene, three of which were settled. (Id. ¶¶ 27, 28.) John F. Street (âStreetâ), at that time the Chairman of Defendantâs Board of Commissioners, conducted an investigation of those allegations which eventually led to the Board terminating Greeneâs employment as Executive Director on September 23, 2010. (Def.âs Mem. Supp. Mot. Summ. J. 3.) In connection with the investigation, Street prepared an investigative report dated September 23, 2010 (âStreet Reportâ). (Am. Compl. ¶ 32.) Michael F. Kelly (âKellyâ), Defendantâs Interim Executive Director, was provided with a copy of the Street Report via email
In December 2010, Defendant hired Kelly as its Interim Executive Director. (Def.âs Mem. Supp. Mot. Summ. J. 4, Ex. D, Deposition of Michael Kelly (âKelly Dep.â), 11:16-23, 25:7-13, May 22, 2014.) On January 28, 2011, Kelly appointed Audrey Lim (âLimâ) as Defendantâs acting-director of human resources. (Id. at 69:24-70:3.) Kelly appointed Lim as acting director because he was in the process of assessing Defendantâs human resources department with a consultant, Paulette Campbell (âCampbellâ). (Id. at 41:3-14.) Kelly wanted Lim to serve in an acting capacity while working under Campbell so that she could assist in reorganizing the human resources department and in recruiting a full-time human resources director. (Id.) Kelly appointed Lim to serve as the acting human resources director until, based on discussions with Campbell, a permanent director could be hired. (Id. at 67:24-68:11.) Kelly did not ask Plaintiff to take on the role of acting human resources director because Plaintiff was the general counsel for labor and Kelly viewed Plaintiffs role âas being one of legal.â (Id. at 42:19-43:1.) Plaintiff never held the title of director of human resources while employed by Defendant. (Pasour Dep. 134:16-22; 135:7-9.) Plaintiff testified at his deposition that, prior to January 2011, he âacted sort of in an HR/head of HR capacityâ because he âdid the functions other than payroll and recruitment that an HR Department normally does.â (Id. at 134:23-135:6.) Plaintiff testified at his deposition that Kelly advised him that he needed âcover,â which indicated to Plaintiff that âthe Board members wanted Plaintiff
When Kelly joined Defendant in December 2010, Defendant had an internal board known as the Administrative Board, which was an internal committee that reviewed issues regarding personnel matters. (Def.âs Mem. Supp. Mot. Summ. J. 5; Pasour Dep. 19:14-17.) In January 2011, the Administrative Board had three voting members who were all PHA executives: Diane Rosenthal (âRosenthalâ), Carolyn Carter (âCarterâ), and Linda Sta-ley (âStaleyâ). (Id. at 23:21-24.) Although Plaintiff was not a voting member of the Administrative Board, he served as an advisor, attended meetings, gave advice regarding personnel matters and policies, and drafted meeting minutes. (Id. at 19:11-13, 19:18-20:6.) Plaintiff did not attend pre-board meetings or executive sessions and did not have the authority to present issues to the Board. (Pl.âs Resp. Oppân Mot. Summ. J. Ex. 1, Affidavit of Frederick K. Pasour (âPasour Aff.â) ¶ 8, Sept. 15, 2014.)
On January 28, 2011, the Administrative Board met to vote on two proposed resolutions. (Pasour Dep. 23:15-20, 34:16-22.) Plaintiff was invited to the meeting and briefly attended it
Kelly, who was by that time the Interim Executive Director for Defendant, was not aware that the Administrative Board was meeting on January 28, 2011, nor was he aware of the actions it was taking.
On February 6, 2011, the Philadelphia Inquirer ran an article titled âPHA Suspends Four Top Employees.â (PLâs Resp. Oppân Summ. J. 8, Ex. 16.) The article referred to the suspended employees as being in Greeneâs inner circle and reported that Street had identified Plaintiff as one of the people who allegedly helped Greene conceal the settlements related to three sexual harassment complaints. (Id.) The article did not report that Plaintiff had been suspended in connection with his involvement with the Administrative Board. (Id.) Mr. Kelly did not contact the articleâs authors to clarify the reason behind Plaintiffs suspension. (PLâs Resp. Oppân Mot. Summ. J. 8; Kelly Dep. 179:11-181:2.)
Either in late January or early February 2011, Defendant retained the law firm of Blank Rome LLP (âBlank Romeâ) to conduct an investigation of the Administra
On March 16, 2011, Defendant sent Plaintiff a letter advising him of the investigation as well as Defendantâs preliminary finding that Plaintiff should be separated from his employment. (Def.âs Mem. Supp. Mot. Summ. J. 9.) The letter invited Plaintiff and his personal counsel to meet with Defendant on March 25, 2011 to discuss Defendantâs findings and gather any additional information Plaintiff wanted Defendant to consider, and also informed Plaintiff that he would remain on paid leave for the time being. (Pasour Dep. 91:12-21; Pasour Dep. Ex. 8.) Upon Plaintiffs counselâs request that the meeting be postponed, Defendant advised Plaintiff, in a May 18, 2011 letter, that the meeting would be rescheduled for May 20, 2013.
(Id. at 95:15-25, Ex. 9.) In that letter Defendant also advised Plaintiff that it had âlost confidence in [Plaintiffs] ability to advise PHA as an attorneyâ and listed specific items that âcaused PHA to call [Plaintiffs] judgment into question,â including the following:
1) In connection with the January 28, 2011 Administrative Board meeting, you acted under a conflict of interest by participating in drafting the Vacation Accrual Resolution which would financially benefit you.
2) In connection with the January 28, 2011 Administrative Board meeting, although you purported to be a legal advisor to the Administrative Board, you failed to notify the Board members that they were operating under a conflict of interest when they passed the Vacation Accrual Resolution which would financially benefit them.
3) In connection with the January 28, 2011 Administrative Board meeting, although you purported to be a legal advisor to the Administrative Board, you failed to advise the Board members that the Boardâs actions were subject to Pennsylvaniaâs Sunshine Act (65 Pa.C.S.A. § 701 et seq.).
4) In connection with the January 28, 2011 Administrative Board meeting, as PHAâs attorney and an attorney providing advice to the Administrative Board, you failed to notify Michael Kelly, the Interim Executive Director, of the meeting on January 28 or the Administrative Boardâs pro*691 posed actions despite Mr. Kellyâs membership in the Administrative Board by virtue of his position at PHA, as well as past practices within PHA.
(Id. at Ex. 9.)
On May 20, 2011, Plaintiff and his counsel met with Defendantâs representatives and its counsel at Defendantâs office. (Pasour Dep. 117:2-8, 118:10-25.) At the meeting, Plaintiff was given the opportunity to provide Defendant with any additional information he wished Defendant to eon-sider. (Id. at 120:11-17.) On May 27, 2011, Defendant sent a letter to Plaintiff advising him that his employment was terminated effective May 27, 2011. (Id. at 122:3-123:10, Ex. 10.) In the letter, Defendant outlined the basis for Plaintiffs termination:
On May 18, 2011, PHA sent you a letter outlining the issues that have caused PHA to call your judgment into question, including, in connection with the January 28, 2011 Administrative Board meeting; acting under a conflict of interest by participating in drafting a resolution which would financially benefit you; failing to notify the Board members that they were operating under a conflict of interest when they passed a resolution which would financially benefit them; failing to advise the Board members that the Boardâs actions were subject to the Pennsylvania Sunshine Act; and failing to notify the Interim Executive Director of the meeting on January 28 or the Administrative Boardâs proposed actions.
(Pasour Dep. Ex. 10.)
Kelly testified at his deposition that he made the decision to terminate Plaintiffs employment, and that he did so based on â[Plaintiffs] involvement in the administrative board, nothing more.â (Kelly Dep. 146:19-22; 154:4-23.) In making his decision, Kelly relied on the Kroll and Blank Rome Reports. (Id. at 154:25-155:16.) At his deposition, Kelly, was asked whether he told any reporters that Plaintiffs actions concerning Greene, as discussed in the Street Report, had nothing to do with Plaintiffs termination, to which he responded, âI may have because it didnât have anything to do with it.â (Id. at 192:15-24.)
Defendantâs employment of Rosenthal, Carter, and Staley also ended as a result of their involvement with the Administrative Board meeting on January 28, 2011. (Def.âs Mem. Supp. Mot. Summ. J. 11.) They never returned from administrative leave and negotiated agreements with Defendant that resolved issues related to their employment with Defendant and which allowed them to retire. (Kelly Dep. 143:8-144:21.) Defendant also engaged in discussions with Plaintiff prior to his termination as part of an effort to âamicably end his employment,â but the parties were unable to reach an agreement. (Id. at 143:8-144:21, 149:10-22, Ex. 15; Def.âs Mem. Supp. Mot. Summ. J. 12.)
An article entitled âPHA Lawyer Terminated, Three Other Staffers Leaveâ appeared on Philly.com on June 23, 2011. (PLâs Resp. Oppân Mot. Summ. J. 9, Ex. 21.) The article identified Plaintiff as the employee whose employment was terminated and quoted the letter from Kelly to Plaintiff that explained the reasons for Plaintiffs termination and which stated that â Defendant had âlost confidence in [Plaintiffs] ability to advise PHA as an attorney.â (Id.) Kelly testified at his deposition that he spoke with one of the articleâs authors to confirm Plaintiffs termination. (Id.) The article referenced the fact that Plaintiff had worked on sexual harassment complaints against Greene and that Plaintiff had been criticized in an internal investigation into Greeneâs con
Plaintiff, through his attorneys, requested several times, both' orally and in writing, that he be given a public due process .hearing to âclear his name.â (PLâs Resp. Oppân Mot. Summ. J. 9, Ex. 7, Plaintiffs Responses to Defendantâs Interrogatories, No. 3; Am. Compl. ¶41.) Plaintiff made these requests in April, May, and September 2011. (Id.) A âpublic name-clearing hearingâ did not occur. (Id.) On May 20, 2011, Plaintiff attended a private meeting with Lim, Defendantâs acting general counsel, Defendantâs outside counsel, and Plaintiffs attorney. (Id.; Pasour Dep. 118:10-121:3.) At that meeting, no members of the public or press were present, and there was no court reporter. (Id. at 10-11; Harbist Dep. 57:1-14.)
Plaintiff has been unable to obtain permanent employment as an attorney since Defendant terminated his employment. (Pasour Dep. 170:10-171:7.) Plaintiff has been told by prospective and former employers that they could not employ him âbecause of the political volatility attached to him,â that he âwas radioactive and could not be placed at [a particular] firm,â and that his âpresence would bring unwanted attention.â (PLâs Resp. Oppân Mot. Summ. J. 13; Pasour Dep. 179:1-22, 181:13-183:6, 13:14-15:19.)
After satisfying the requisite procedural requirements, Plaintiff filed a complaint in the Court of Common Pleas for Philadelphia County on March 28, 2013, asserting claims for liberty interest, defamation, and invasion of privacy/false light. Defendant removed the complaint to federal court on April 26, 2013 and moved to dismiss it. Plaintiff filed an Amended Complaint on May 20, 2013, which Defendant moved to dismiss on May 29, 2013. The Motion to Dismiss was granted in part and denied in part on August 7, 2013, allowing Plaintiff to proceed with his deprivation of liberty interest in reputation claim. Defendant filed its Motion for Summary Judgment on July 13, 2014. Plaintiff filed a response on September 15, 2014. Defendant filed its reply on September 23, 2014. The Court heard the arguments of the parties on December 3, 2014. As the briefing process has been exhausted, Defendantâs Motion for Summary Judgment is now ripe for judicial consideration.
II. STANDARD OF REVIEW
Summary judgment is proper âif the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.â Fed.R.Civ.P. 56(c)(2). A factual dispute is âmaterialâ only if it might affect the outcome of the case. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). For an issue to be âgenuine,â a reasonable fact-finder must be able to return a verdict in favor of the non-moving party. Id.
On summary judgment, the moving party has the initial burden of identifying evidence that it believes shows an absence of a genuine issue of material fact. Conoshenti v. Pub. Serv. Elec. & Gas Co., 364 F.3d 135, 145-46 (3d Cir.2004). It is not the courtâs role to weigh the disputed evidence and decide which is more probative, or to make credibility determinations. Boyle v. Cnty. of Allegheny, 139 F.3d 386, 393 (3d Cir.1998) (citing Petruzziâs IGA Supermkts., Inc. v. Darling-Del. Co. Inc.,
Although the moving party must establish an absence of a genuine issue of material fact, it need not âsupport its motion with affidavits or other similar materials negating the opponentâs claim.â Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). It can meet its burden by âpointing out ... that there is an absence of evidence to support the nonmoving partyâs claims.â Id. at 325, 106 S.Ct. 2548. If the non-moving party âfails to make a showing sufficient to establish the existence of an element essential to that partyâs case, and on which that party will bear the burden at trial,â summary judgment is appropriate. Celotex, 477 U.S. at 322, 106 S.Ct. 2548. Moreover, the mere existence of some evidence in support of the non-movant will not be adequate to support a denial of a motion for summary judgment; there must be enough evidence to enable a jury to reasonably find for the non-movant on that issue. Anderson, 477 U.S. at 249-50, 106 S.Ct. 2505.
III. DISCUSSION
Plaintiff claims he was deprived of a liberty interest in reputation without due process in violation of 42 U.S.C. § 1983. Specifically, Plaintiff alleges that the former Chairman of Defendantâs Board of Commissioners, John Street, falsely accused him of engaging in an unlawful conspiracy to conceal sexual harassment charges against Defendantâs former Executive Director, Carl Greene. Plaintiff goes on to assert that Streetâs statements were made public and disseminated in the news, after which Plaintiff was demoted,, suspended, and ultimately terminated, and which have left him unable to obtain continuing employment in the legal profession. After careful consideration, the Court finds that Defendant has not eliminated all genuine issues of material fact, and therefore summary judgment for Defendant, with respect to the remaining claim asserted in the Amended Complaint, would not be appropriate.
A. Deprivation of Liberty Interest
The Supreme Court has held that â[w]here a personâs good name, reputation, honor, or integrity is at stake because of what the government is doing to him, notice and an opportunity to be heard are essential.â Wisconsin v. Constantineau, 400 U.S. 433, 437, 91 S.Ct. 507, 27 L.Ed.2d 515 (1971). When notice and an opportunity to be heard are not provided, a plaintiff may bring âa due process claim for deprivation of a liberty interest in reputation.â Hill v. Borough of Kutztown, 455 F.3d 225, 236 (3d Cir.2006) (citation omitted). To prevail, the plaintiff must demonstrate âa stigma to his reputation plus deprivation of some additional right or interest.â Id. (emphasis in original) (citing Paul v. Davis, 424 U.S. 693, 701, 96 S.Ct. 1155, 47 L.Ed.2d 405 (1976)). This is referred to as the âstigma-plusâ test, and in the context of public employment, it âhas been applied to mean that when an employer âcreates and disseminates a false and defamatory impression about the employee in connection with his termination,â it deprives the employee of a protected liberty interest.â Id. (quoting Codd v. Velger, 429 U.S. 624, 628, 97 S.Ct. 882, 51 L.Ed.2d 92 (1977)).
Plaintiff argues that he âwas deprived of his interest in his reputation and his ability to earn a living in his chosen profession as an attorney as a result of the statements falsely accusing him of unethical professional conduct which were broadly disseminated by the Defendant,â and that he âwas thereafter demoted, suspended and terminated under circumstances leading to the false impression that these actions were a result of the false allegations made in the Street Report and was not provided with a public hearing to clear his name with respect to this false impression.â (Pl.âs Resp. Oppân Mot. Summ. J. 16.) Defendant argues that Plaintiff cannot satisfy the requirements of the âstigma plusâ test because: 1) Defendantâs hiring of Lim as acting director of human resources and Defendantâs placement of Plaintiff on paid leave are not, as a matter of law, deprivations of a legal right that support a due process claim; 2) Streetâs alleged statements in September 2010 were not made in connection with Limâs appointment on January 28, 2011, Plaintiffs placement on administrative leave on February 4, 2011, or the termination of Plaintiffs employment on May 27, 2011; and 3) the news articles published February 6, 2011 and June 23, 2011 cannot support Plaintiffs liberty interest claim because they do not contain stigmatizing statements that were made publicly by Defendant. (Def.âs Mem. Supp. Mot. Summ. J. 19.) The Court will first consider which of the alleged deprivations could support Plaintiffs âstigma-plusâ claim and then determine which of the statements Plaintiff identifies as stigmatizing were made in connection with those deprivations.
1. Deprivation of a Liberty Interest in a Right or Status
As a preliminary matter, the Court must determine whether Defendant deprived Plaintiff of a constitutionally protected right or interest through demotion, suspension, lost career prospects, and termination. First, Defendant argues that Plaintiff was not demoted when Lim was appointed acting director of human resources because, while Plaintiff testified at his deposition that he performed certain duties that would typically be performed by a human resources department employee, his actual position was general counsel for labor and employment and he never held the title of human resources director. Plaintiff responds by relying on his deposition testimony and arguing that he âwas replaced in his responsibilities as the Head of Human Resources by Audrey Lim, who was not qualified to handle this positionâ and that he was âremove[d] ... as the Head of Human Resources.â (PLâs Resp.
Second, Defendant argues that as a matter of law, Defendantâs placement of Plaintiff on administrative leave with pay does not constitute a deprivation of a right or interest sufficient to support a liberty interest claim. Plaintiff responds by arguing that even though Defendant characterizes his suspension as âadministrative leave,â Defendant intended that he be precluded from being on PHA premises, denied access to PHA apparatuses, and prevented from communicating with current PHA staff, and also began drafting descriptions for Plaintiffs job in order to seek applicants for his position. (Pl.âs Resp. Oppân Mot. Summ. J. 23.) Thus, according to Plaintiff, his âpurported suspension was more akin to a termination.â (Id.) The suspension, however, was not a termination, and Defendant correctly points out that, within the Third Circuit, suspension with pay does not constitute a deprivation of rights sufficient to support a claim for deprivation of liberty interest in reputation without due process. See Edwards v. Cal. Univ. of Pa., 156 F.3d 488, 492 (3d Cir.1998) (âWhile [the plaintiffs] temporary removal from [job] duties may have further stigmatized him, this action does not constitute a deprivation of employment.â). Accordingly, Plaintiffs suspension with pay cannot support a claim for deprivation of liberty interest in reputation.
Third, to the extent that Plaintiff alleges a deprivation because he has been unable to find employment in the legal profession, either because of the Street Report or because of statements which appeared in newspaper and online news articles, those allegations go to the âstigmaâ element of his claim, rather than the deprivation, or âplusâ element. See Arneault v. OâToole, 513 Fed.Appx. 195, 198â99 (3d Cir.2013) (stating that to the extent a plaintiff alleged that he lost possible career prospects, that is âpart of the stigma alleged and not an additional lost interest or right.â). Lost career prospects are not âpurportedly stigmatizing statementsâ by an employer, and accordingly, any difficulty Plaintiff has had in finding employment in the legal profession since Defendant terminated his employment does not by itself support Plaintiffs deprivation of liberty interest claim. Plaintiff cites dis
As neither Limâs appointment as acting director of human resources, Plaintiffs placement on paid leave, nor lost future career prospects, can provide the âplusâ for a claim for deprivation of liberty interest in reputation, the Court will analyze Plaintiffs claim using the âstigma-plusâ test only with respect to Defendantâs termination of his employment.
2. The âStigmatizingâ Statements
Plaintiff alleges three stigmatizing statements were made in connection with his termination, thus depriving him of his liberty interest in reputation: 1) statements in the Street Report; 2) statements in a February 6, 2011 article that appeared in the Philadelphia Inquirer, and 3) statements in a June 23, 2011 article which appeared on Philly.com.
With respect to the statements attributed to the Street Report, Defendant â argues that Plaintiff cannot establish a liberty interest claim because those statements âwere made well before the alleged deprivation of the plaintiffs rightsâ and because âthe subject matter of the statements on which [the] claim is based is unrelated to the reasons for the alleged deprivation of rights.â (Def.âs Mem. Supp. Mot. Summ. J. 20-21.) The Court will first address the issue of timing.
To rise above the level of the tort of defamation to the level of a violation of a constitutionally protected liberty interest, any allegedly defamatory statements in the Street Report must have been made âincident to the terminationâ of Plaintiffs employment. Siegert v. Gilley, 500 U.S. 226, 234, 111 S.Ct. 1789, 114 L.Ed.2d 277 (1991). The Third Circuit has stated that â[i]n- order to be considered âin connection withâ a termination, an allegedly defamatory statement and the firing must be at least roughly contemporaneous.â Orelski v. Bowers, 303 Fed.Appx. 93, 94 (3d Cir.2008) (finding that two and a half months was âa long delay [which] eviscerates any temporal nexus between the statements and the termination.â) (citations omitted). More generally, in the civil rights context, the Third Circuit Court of Appeals has suggested that a temporal proximity of two days is sufficient to establish causation, see Farrell v. Planters Lifesavers Co., 206 F.3d 271, 279-80 & n. 5 (3d Cir.2000),
Here, the statements in the Street Report, assuming they were defamatory, were publicly disseminated approximately eight months before Defendant terminated Plaintiffs employment, and approximately four months before the events on which Plaintiffs suspension and termination were based occurred. Generally speaking, a gap of four months to eight months between the stigmatizing statements and the deprivation would be too long for the statements to have been made âincident toâ Plaintiffs termination. In this case, however, Plaintiff has alleged that there was a âcontinuing course of conduct by the Defendant leading to [Plaintiffs] termination[,] [which] demonstrate^] that the actions taken against [Plaintiff] were directly related to the Street Report.â
In response to Defendantâs subject matter argument relating to the Street Report, Plaintiff argues that it does not matter that his termination was ostensibly for reasons unrelated to allegations about Plaintiffs conduct which appeared in the Street Report, relying on Povish v. Pennsylvania Department of Corrections for the proposition that the âstigma-plusâ test can be satisfied even where the conduct underlying the stigmatizing remarks is not the reason for the termination. (PLâs Resp. Oppân Mot. Summ. J. 25-26 (citing Povish, No. Civ.A.13-0197, 2014 WL 1281226, at *5-6 (E.D.Pa. Mar. 28, 2014)).)
Defendant argues that Plaintiffs arguments are unavailing because, in order for Plaintiffs pretext argument to work, a jury would have to believe that it fired three other employees so that it could also fire Plaintiff. (Def.âs Reply 8-9.) It could also be argued, however, that the events that necessitated terminating the employment of the three Administrative Board members presented a convenient means of terminating Plaintiffs employment in light of the statements about Plaintiff which appeared in the Street Report. Defendantâs arguments are not unreasonable, but on summary judgment review, th'e Court must consider the evidence in the light most favorable to Plaintiff. Accordingly, summary judgment for Defendant must be denied.
Plaintiff also alleges that Defendant made stigmatizing statements which appeared in the Philadelphia Inquirer on February 6, 2011,
As discussed above, the statements concerning Greene and the Street Report which appeared in the Philly.com article were not made by Defendant, even though Plaintiff argues that they should be âattributedâ to Defendant. (Id.) Moreover, the statements which can be attrib-, uted to Kellyâs letter to Plaintiff, specifically that Plaintiff had been terminated because Defendant âlost confidence in [Plaintiffs] ability to advise PHA as an attorney,â and which alluded to âa conflict-of-interest matter that would have been financially beneficial to [Plaintiff],â (Pl.âs Resp. Oppân Mot. Summ. J., Ex. 21, Philly.com Article June 23, 2011), âwere not sufficiently stigmatizing to implicate a liberty interest.â See Brown v. Montgomery Cnty., 470 Fed.Appx. 87, 91 (3d Cir.2012) (observing that the complained-of statements regarding âimproperâ behavior âdid little, if anything, to add to the stigma that [the Plaintiff] brought upon himself with his behavior.â) (citing Mercer v. Cedar Rapids, 308 F.3d 840, 845-46 (8th Cir.2002) (â[N]o liberty interest of constitutional significance is implicated when âthe employer has alleged merely improper or inadequate performance, incompetence, neglect of duty or malfeasance.â â) (additional citations omitted)). Accordingly, the statements in the Philly.com article do not support Plaintiffs liberty interest claim against Defendant.
3. Public Name-Clearing Hearing
Plaintiff argues that he requested, but was denied, a public name-clearing hearing, and was therefore denied due process in connection with his termination. (Pl.âs Resp. Oppân Mot. Summ. J. 27-29.) As Defendantâs Motion for Summary Judgment is being denied, Plaintiff will have the opportunity at trial to demonstrate that the circumstances of his termination satisfy the âstigma-plusâ test and that the private meetings between Plaintiff and Defendant which occurred prior to his termination did not provide sufficient due process.
IV. CONCLUSION
Having reviewed the briefs and pleadings and their exhibits, and having heard the arguments of counsel, the Court finds that Defendant has not shown an absence of genuine issues of material fact that would preclude a jury from reasonably finding in Plaintiffs favor. Accordingly, the Court shall deny Defendantâs Motion for Summary Judgment.
An appropriate Order follows.
ORDER
AND NOW, this 17th day of December, 2014, upon consideration of Defendant Philadelphia Housing Authorityâs Motion for Summary Judgment (Docket No. 30), Plaintiff Frederick K. Pasourâs Response in Opposition (Docket No. 36), and Defendant Philadelphia Housing Authorityâs Re-ply (Docket No. 38), and having heard the partiesâ arguments on December 3, 2014, it is hereby ORDERED as follows:
1. Defendantâs Motion for Summary Judgment is DENIED.
2. A STATUS CONFERENCE will be held on Wednesday, January II,*700 2015 at 2:00 p.m. in the Chambers of the Undersigned.
. The statement of facts is compiled from a review of the parties' briefs and the evidence submitted in conjunction with those briefs. To the extent the parties allege a fact that is unsupported by evidence, the Court does not include it in the recitation of facts. Where
. Kelly testified at his deposition that, while he generally recalled seeing the Street Report, he never read it or had discussions with anyone about it. (Def.'s Mem. Supp. Mot. Summ. J. 22, Ex. C, Deposition of Michael Kelly (âKelly Dep.â), 59:9-13, 62:18-20, 65:10-12, 202:25-203:1, May 22, 2014.) Specifically, when asked by his attorney whether he had "ever actually read that reportâ Mr. Kelly answered "No.â (Id. at 202:25-203:1 (emphasis added).)
In spite of that portion of Kellyâs testimony, which Plaintiff did not cite, Plaintiff stated in his brief that "Mr. Kelly also read the Street Report but conveniently does not recall whether it was before or after he made staffing decisions.â (Piâs Resp. Oppân Mot. Summ. J. 6 (citing Kelly Dep., 64:4-18).) The portion of Kellyâs deposition that Plaintiff cited reads as follows: "Mr. Epstein: Q. You earlier said that you don't remember when it is that you read this report. You read it at some point? Mr. Schreiner: Objection to the form. Mr. Epstein: Q. Do you know whether or not you read this report before or after you made any staffing decisions? Mr. Schreiner: Objection to the form. Mr. Epstein: Q. You can say T don't know.' Whatever your answer is is perfectly okay. Just answer. A. I do not remember.â (Kelly Dep., 64:4-18.)
That exchange was preceded by the following one, which Plaintiff did not reference:
The Court cautions Plaintiff's counsel against future mischaracterization of a deponent's testimony.
. Plaintiff states that he "was not even pres- âą ent at the January 28, 2011 meetingâ but also states that "[he] made a brief appearance at the meeting.â (Pl.'s Resp. Oppân Mot. Summ. J. 12.) These conflicting statements in Plain- â tiffâs brief are not explained. According to the Kroll Report, Plaintiff stated that he was absent from the meeting because "he went for a walk (because he was upset over something that had occurred that he did not wish to reveal) and did not appear for the meeting,â and "confirmed that he stopped by to drop off the resolutions and indicated that he could not stay for the meeting.â (Kroll Report at 11 n. 7.)
. Defendant still works with Mr. Nixonâs law firm. (PL's Resp. Opp'n Mot. Summ. J. 12; â Kelly Dep. 114:9-117:7.)
. Plaintiff states that he was not a benefits attorney and asserts that he did not have the responsibility of advising Administrative Board members regarding the Pennsylvania Sunshine Act. (PLâs Resp. Oppân Mot. Summ. J. 12; Pasour Dep. 45:14-18, 105:4-23.)
. According to Kelly, as stated in the Kroll Report, discussed below, he was not aware that the Administrative Board even existed until January 31, 2011, when other PHA employees brought the Administrative Board's actions, also discussed below, to his attention. (Def.âs Mem. Supp. Mot. Summ. J., Ex. E, Affidavit of Nicholas Harbist, Ex. 1, Kroll Report, Mar. 1, 2011, at 13.)
. According to the Kroll Report, "James recalled that [Plaintiff] only told him about the meeting later in the day, when James called [Plaintiff] and asked why he did not make the meeting that James had requested he attend.â (Kroll Report at 11 n. 7.)
. With regard to Plaintiff, the Kroll Report noted, among other events, the following: In March 2010, Plaintiff spoke with outside benefits counsel regarding the need for a draft resolution to allow employees enrolled in both pension plans to take the cash value of excess leave either as taxable compensation or as an added contribution to their deferred compensation account; a similar conversation Plaintiff had with outside counsel at a Pension Board meeting in December 2010; and conflicting reasons given by Plaintiff and other individuals for Plaintiffâs absence from the January 28, 2011 Administrative Board meeting. (Kroll Report at 8, 9, 11 n. 7.)
. Plaintiff testified at his deposition that, when Kelly told him Lim would become his supervisor, Plaintiff was also told that his salary would be reduced by approximately $10,000 and that his title would be changing. (Pasour Dep. 26:16-21.) Plaintiff argued in his counterstatement of material facts that this was a âdemotionâ (Pl.âs Resp. Oppân Mot. Summ. J. 6), but also testified at his deposition that his last position at PHA, at the time his employment was terminated, was still âgeneral counsel for labor and employment.â (Pasour Dep. 10:22-27:2.) Any pay cut which occurred around the same time as Defendant's appointment of Lim, in the absence of any other evidence aside from Plaintiff's deposition testimony, appears to be a reduction in salary rather than a "demotion.â As Defendant's Motion for Summary Judgment is being denied, however, Plaintiff may choose to argue at trial that the purported reduction in salary constituted a constitutional deprivation.
. Unfortunately, the Court must again caution Plaintiffs counsel, this time against mis-characterizing case law. Plaintiff cites Arneault v. OâToole, 864 F.Supp.2d 361 (W.D.Pa.2012), aff d on other grounds, for the proposition that negative implications for employment prospects establishes a "plusâ for the âstigma-plusâ test, without mentioning the Third Circuit's opinion in the same case, discussed above, which states that lost career âą prospects are part of the "stigmaâ rather than the "plus.â See Arneault, 513 Fed.Appx. at 198-99.
While not including the Third Circuit case in his brief is itself problematic, Plaintiff's mischaracterization of the district court opinion in Ameault is more troubling. Plaintiffâs brief states that "[r]ecognizing that there may be doubts whether the plaintiff adequately 'pled an alteration of his legal status,â the court determined that he nevertheless â... alleged sufficient facts to establish the necessary plus.â â (Pl.âs Resp. Oppân Mot. Summ. J. 22 (emphasis added) (citing Arneault, 864 F.Supp.2d at 398).) What the district court actually stated was "[w]e therefore have some doubts as to whether Arneault [...] has successfully pled an alteration of his legal status .... Nonetheless, this Court will proceed on the assumption, without deciding, that Arneault has alleged sufficient facts to establish the necessary "plus.â â Arneault, 864 F.Supp.2d at 398.
. This Court stated previously, at the motion to dismiss phase when Plaintiffs allegations were taken as true, that Plaintiffs argument regarding a "continuing course of conduct connecting the termination to the damaging statements made by Chairman Streetâ could lead a jury to conclude that his 'eventual termination was the direct result of Chairman Streetâs statements.â Pasour v. Phila. Hous. Auth., No. Civ.A. 13-2258, 2013 WL 4014514, at *5 (E.D.Pa. Aug. 7, 2013).
. See supra note 2.
. Plaintiff states that his claim "is not premised on the February 6, 2011 article. Rather, the article is simply additional evidence of the false impression created by PHA." (Pl.'s Resp. Oppân Mot. Summ. J. 19.) As Plaintiff has also stated that allegedly stigmatizing statements from the Street Report were "republishedâ in that article (id. at 18), however, the Court will briefly discuss this article in the context of Plaintiff's claim.