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Case Summary: Raul Garcia and Annette Garcia v. Walder Electronics, Inc., et al.

Factual and Procedural Background

Raul Garcia, formerly a store manager at Walder Electronics, became a Metro Dade Police Department trainee. After an anonymous call alleging Garcia had removed merchandise from Walder, Officer Dieppa contacted Walder's Alan Hill and prepared a report that was forwarded to Officer Knabe, who prepared a background investigation. Metro Dade personnel, resolving doubts against the trainee, recommended termination of Garcia's trainee employment. Garcia sought reinstatement and met with Walder's president, Jack Schneider; Schneider did not affirm Garcia had authorization to take merchandise. Garcia's termination stood. He sued Schneider, Hill and Walder alleging defamation, negligent supervision and tortious interference; later he amended to add Officers Dieppa, Knabe, Egues, Diecidue and Metro Dade, alleging defamation, negligence, unlawful deprivation of an alleged property interest in his employment, and unlawful deprivation of an alleged liberty interest by failing to provide a name-clearing hearing. Defendants moved for summary judgment asserting defenses including qualified privilege, no publication, and failure to request a name-clearing hearing. The trial court granted summary judgment (over plaintiff's motion for continuance). Garcia appealed. The county later offered Garcia a name-clearing hearing, which he declined.

Legal Issues Presented

  1. Whether the trial court erred in granting defendants' motions for summary judgment on Garcia's claims (defamation, negligence, interference with business relationship, deprivation of alleged property and liberty interests).
  2. Whether statements by Walder and its employees were privileged (qualified or absolute) and whether malice was shown to defeat any privilege.
  3. Whether, at the time of Garcia's 1985 termination, Metro Dade was required to provide a post-termination name-clearing hearing and whether notice of that right was required.

Arguments of the Parties

Plaintiff/Appellant (Raul Garcia)

  • Asserted claims of defamation, negligent supervision, tortious interference with business relations, unlawful deprivation of an alleged property interest in employment, and unlawful deprivation of an alleged liberty interest by failing to provide a name-clearing hearing.
  • Sought reinstatement and repeatedly requested hearings to that effect (though such a remedy was not available to probationary trainee officers at the time).

Defendants/Appellees

  • Moved for summary judgment asserting defenses including qualified privilege, no publication, and that Garcia failed to request a name-clearing hearing.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Anderson v. Creighton, 483 U.S. 635, 107 S.Ct. 3034, 97 L.Ed.2d 523 (1987) Authority cited in connection with affirming summary judgment. Included among authorities relied upon in finding no error in granting summary judgment.
Harlow v. Fitzgerald, 457 U.S. 800, 102 S.Ct. 2727, 73 L.Ed.2d 396 (1982) Authority cited in connection with affirming summary judgment. Included among authorities relied upon in finding no error in granting summary judgment.
Boehm v. American Bankers Insurance Group, 557 So.2d 91 (Fla. 3d DCA 1990) Cited regarding the absence of maliciousness to nullify a qualified privilege. Used to support the conclusion that no showing of malice existed to defeat the asserted privilege.
Gray v. Rodriguez, 481 So.2d 1298 (Fla. 3d DCA 1986) Cited in support of finding defendants' responses absolutely privileged. Relied upon in determining Walder and its employees' responses were absolutely privileged.
Southern California Funding Inc. v. Hutto, 438 So.2d 426 (Fla. 1st DCA 1983) Cited in discussion of privilege. Included among authorities supporting privilege analysis.
Purdy v. Cole, 317 So.2d 820 (Fla. 3d DCA 1975) Cited regarding availability (or lack) of a reinstatement hearing to probationary trainee officers. Referenced to show that a hearing remedy was not then available to probationary trainees.
Buxton v. City of Plant City, 871 F.2d 1037, 1046 (11th Cir. 1989) Holds that a public employer must provide opportunity for a post-termination name-clearing hearing when stigmatizing information is made part of the public record and that notice of the right to such a hearing is required. Applied to conclude that, under current construction of due process, a public employer has an affirmative duty to inform a discharged employee of the right to seek a post-termination name-clearing hearing; the court nonetheless found no clear-cut requirement at the time of Garcia's 1985 termination.
Section 943.13(7), Florida Statutes (1985) Cited statutory authority (context not further explained in the opinion). Listed among authorities considered in the court's disposition.
Lewis v. Benson, 101 Nev. 300, 701 P.2d 751 (1985) Cited in support of privilege for defendants' responses. Included among cases supporting the conclusion that Walder's responses were privileged.
In re Selcraig, 705 F.2d 789, 769 (5th Cir. 1983) Language suggesting the state must make known to the stigmatized employee that he may have an opportunity to be heard to clear his name upon request. Discussed as potentially leaving room for argument about an employer's duty to inform employees of the right to a name-clearing hearing.
Campbell v. Pierce County, 741 F.2d 1342, 1345 (11th Cir. 1984) Quoted for the proposition that a name-clearing hearing is required only upon request. Used to support the view that the onus was on the employee to request name-clearing proceedings.
Demesme v. Stephenson, 498 So.2d 673, 676 (Fla. 1st DCA 1986) Cited in connection with other grounds urged for reversal and procedural issues. Referenced as authority relevant to other grounds and the motion for continuance under procedural rules.
Florida Rules of Civil Procedure, Rule 1.510(f) Procedural rule governing motions for summary judgment and continuance. Invoked in discussing the court's ruling on the motion for continuance in relation to the summary judgment.

Court's Reasoning and Analysis

The court reviewed the record and determined there was no error in granting the various summary judgments. It accepted the defendants' asserted defenses (including privilege and procedural defenses) as supporting summary judgment. Specifically, the court concluded Walder and its employees' responses were absolutely privileged and noted no showing of maliciousness to defeat a qualified privilege (citing Boehm). The court found that at the time of Garcia's 1985 termination there was no clear-cut requirement to afford a name-clearing hearing, but acknowledged later authority (Buxton) holding that presently a public employer must inform a discharged employee of the right to a post-termination name-clearing hearing when stigmatizing information is published. The record showed the county offered Garcia a name-clearing hearing as late as May 1989, which he declined. The court therefore modified the summary judgment in favor of the county to direct the county to afford such a hearing if Garcia requests it within a reasonable time fixed by the trial court. Other asserted grounds for reversal were found without merit; the summary judgment was granted despite plaintiff's motion for continuance, which the court addressed with reference to Demesme and Rule 1.510(f).

Holding and Implications

AFFIRMED AS MODIFIED

Holding: The court affirmed the trial court's grant of summary judgment in favor of the various defendants, but modified the judgment as to Metro Dade (the county) by directing that the county afford Garcia a name-clearing hearing if he requests one within a reasonable time to be set by the court.

Implications: The direct effect is affirmation of defendants' summary judgment dismissals and an order requiring the county to provide a name-clearing hearing upon Garcia's request. The opinion does not purport to announce a new rule beyond its application to these parties; it relies on existing case law and statutory authority in reaching its disposition.

RAUL GARCIA AND ANNETTE GARCIA, HIS WIFE, APPELLANTS, v. WALDER ELECTRONICS, INC., A FLORIDA CORP., JACK SCHNEIDER, INDIVIDUALLY, ALAN HILL, INDIVIDUALLY, METRO-DADE COUNTY, ROBERT KNABE, INDIVIDUALLY GENE DIEPPA, INDIVIDUALLY LOU DIECIDUE, INDIVIDUALLY, AND RANDY EGUES, INDIVIDUALLY, APPELLEES.

PER CURIAM.

Plaintiff Raul Garcia, appeals the granting of defendant's motion for summary judgment.

He was joined in the action by his wife Annette seeking loss of consortium damages. In this opinion any reference to Garcia, is to Raul Garcia.

Prior to being accepted as a police trainee with the Metro Dade Police Department, Raul Garcia was employed by Walder Electronics as a store manager. However, soon after becoming employed with the Metro Dade Police, Officer Dieppa, a personnel officer, received a brief anonymous phone call alleging that Garcia had been involved in certain thefts of goods from the electronics store he had previously managed. The caller instructed Officer Dieppa to call a Mr. Alan Hill, a representative of Walder Electronics, regarding the alleged thefts. Dieppa called Hill. Hill told Dieppa that Garcia had, prior to his leaving the company and without authorization, removed certain merchandise from the store, taken it home, and had not returned it. Dieppa also learned during the conversation with Hill that several company employees visited Garcia's home, noticed the equipment, whereupon Garcia immediately paid for it. Dieppa then filed a report which was forwarded to Officer Knabe, another personnel officer. Knabe prepared a background investigation report based on the information he received from Dieppa. No further investigation was made. Later, because Metro Dade policy resolves all doubts regarding a trainee's integrity in favor of excluding the trainee, Commander Lou Diecidue and Detective Randy Egues recommended Raul Garcia's employment as a Metro Dade Police Officer Trainee be terminated. Subsequently Garcia sought to be reinstated and requested that the president of Walder Electronics, Jack Schneider, meet with Detective Egues and with Commander Diecidue. At this meeting Schneider did not specifically state that Garcia stole from Walder Electronics, however he also did not say that Garcia had authorization to take the merchandise home. This meeting, however, had no effect on Garcia's termination. Garcia then filed suit against Schneider, Hill and Walder, alleging defamation as well as negligent supervision and tortious interference with a business relationship. Meanwhile Garcia applied to the Florida Highway Patrol. Accordingly FHP requested Metro Dade's records. Garcia alleges he was denied employment based on the report filed by Knabe and Dieppa. Garcia also, during this time, continued to seek reinstatement, and several times requested a hearing to this effect even though this remedy was not then, and is not now, available to probationary trainee officers. See Purdy v. Cole infra. Subsequently Garcia amended his complaint naming Officers Dieppa, Knabe, Egues and Diecidue as well as Metro Dade as defendants. Garcia alleged defamation, negligence, unlawful deprivation of an alleged property interest in his employment as of police officer trainee, and, finally, unlawful deprivation of an alleged liberty interest by failing to provide him with a name clearing hearing. All defendants subsequently moved for summary judgment on all claims asserting various defenses including qualified privilege, no publication, and that Garcia had failed to request a name clearing hearing. Summary judgment was granted notwithstanding plaintiff's motion for continuance. This appeal followed.

The only language in the record regarding the anonymous phone call is found within Officer Dieppa's deposition wherein he said the following: "Could have been Walder Electronics and said that he, Raul Garcia, who had applied with the department and possibly hired by the department, worked for that company and had been involved in numerous thefts."

On this record we find no error in the trial court's granting of the several summary judgments in favor of various defendants. Anderson v. Creighton, 483 U.S. 635, 107 S.Ct. 3034, 97 L.Ed.2d 523 (1987); Harlow v. Fitzgerald, 457 U.S. 800, 102 S.Ct. 2727, 73 L.Ed.2d 396 (1982); Boehm v. American Bankers Insurance Group, 557 So.2d 91 (Fla. 3d DCA 1990); Gray v. Rodriguez, 481 So.2d 1298 (Fla. 3d DCA 1986); Southern California Funding Inc. v. Hutto, 438 So.2d 426 (Fla. 1st DCA 1983); Purdy v. Cole, 317 So.2d 820 (Fla. 3d DCA 1975); Buxton v. City of Plant City, 871 F.2d 1037, 1046 (11th Cir. 1989); Section 943.13(7), Florida Statutes (1985). As to Walder and its employees, we think the responses were absolutely privileged, See Gray v. Rodriguez supra, Boehm v. American Bankers Insurance Group supra, and Lewis v. Benson, 101 Nev. 300, 701 P.2d 751 (1985). Certainly there was no showing of maliciousness to nullify a qualified privilege. Boehm v. American Bankers Insurance Group supra. We also find that at the time of the termination in 1985, there was no clear cut requirement that a name clearing hearing be afforded. See Buxton supra. We do note in the record that the county as late as May, 1989 offered the plaintiff Garcia a name clearing hearing, which he declined. We therefore modify the final summary judgment in favor of the county with directions to order the county to afford such a hearing, if Garcia makes a request for same, within a reasonable time to be fixed by the court.

The county correctly points out that an employer at the time of the termination in the instant case, was under no obligation to "initiate the hearing process of its own accord." In re Selcraig, 705 F.2d 789, 769 (5th Cir. 1983). And further, that a hearing was required "only upon request." Id., quoted with approval in, Campbell v. Pierce County, 741 F.2d 1342, 1345 (11th Cir. 1984). The onus was upon the employee to discover and initiate such name clearing proceedings. However found in Selcraig, supra, is language which could be construed as requiring an employer to inform the employee of his right to such a name clearing hearing. Specifically, "the state need only to make known to the stigmatized employee that he may have an opportunity to be heard to clear his name upon request." Though Selcraig, supra, may leave room for some argument, Buxton v. City of Plant City Florida, 871 F.2d 1037 (11th Cir. 1989), does not. Buxton clearly states, "We hold that a public employer is required to provide the opportunity for a post-termination name clearing hearing when stigmatizing information is made part of the public record, or otherwise published. Notice of the right to such a hearing is required." Buxton at 1046. Therefore when construing the due process clause of the fourteenth amendment, it would appear that today a public employer has the affirmative duty to inform a discharged employee of his right to seek a post-termination name clearing hearing.

The other grounds urged for reversal are found to be without merit. See Demesme v. Stephenson, 498 So.2d 673, 676 (Fla. 1st DCA 1986) and Florida Rules of Civil Procedure, Rule 1.510(f) as to the motion for continuance.

Affirmed as modified.

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GARCIA v. WALDER ELECTRONICS, INC
(Jul 30, 1990)