OCTOBER TERM, 1998
Syllabus
HADDLE
v. GARRISON ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE
ELEVENTH CIRCUIT
No. 97-1472. Argued November 10, 1998-Decided December 14, 1998
Petitioner, an at-will employee, filed this action for damages
against respondents alleging,
inter alia, that they
conspired to have him fired in retaliation for obeying a federal
grand jury subpoena and to deter him from testifying at their
upcoming criminal trial for Medicare fraud, and that their acts had
"injured [him] in his person or property" in violation of 42 U. S.
C. § 1985(2). In dismissing the suit for failure to state a claim,
the District Court relied on Circuit precedent holding that an
at-will employee discharged pursuant to a conspiracy proscribed by
§ 1985(2) has suffered no actual injury because he has no
constitutionally protected interest in continued employment. The
Eleventh Circuit affirmed.
Held: The sort of the harm alleged by
petitioner-essentially third-party interference with at-will
employment relationships-states a claim for damages under §
1985(2). In relevant part, the statute proscribes conspiracies to
"deter, by force, intimidation, or threat, any ... witness in any
[federal] court ... from attending such court, or from testifying
to any matter pending therein, ... or to injure [him] in his person
or property on account of his having so attended or testified," §
1985(2), and provides that if conspirators "do ... any act in
furtherance of ... such conspiracy, whereby another is injured in
his person or property, ... the party so injured ... may" recover
damages, § 1985(3). The Eleventh Circuit erred in concluding that
petitioner must suffer an injury to a "constitutionally protected
property interest" to state a claim. Nothing in the language or
purpose of the proscriptions in the first clause of § 1985(2), nor
in its attendant remedial provisions, establishes such a
requirement. The gist of the wrong at which § 1985(2) is directed
is not deprivation of property, but intimidation or retaliation
against witnesses in federal-court proceedings. The terms "injured
in his person or property" define the harm that the victim may
suffer as a result of the conspiracy to intimidate or retaliate.
Thus, the fact that employment at will is not "property" for
purposes of the Due Process Clause, see
Bishop v.
Wood, 426 U.
S. 341, 345-347, does not mean that loss of at-will employment
may not "injur[e] [petitioner] in his person or property" for §
1985(2)'s purposes. Such harm has long been, and remains, a
compensable injury under tort law, and there is no reason to
122
ignore this tradition here. To the extent that the terms
"injured in his person or property" refer to such tort principles,
there is ample support for the Court's holding. pp. 124-127.
132 F.3d
46, reversed and remanded.
REHNQUIST, C. J., delivered the opinion for a unanimous
Court.
Charles C.
Stebbins III argued the cause and filed
briefs for petitioner.
Matthew D. Roberts argued the cause for the United States as
amicus curiae urging reversal. With him on the brief were Solicitor
General Waxman, Acting Assistant Attorney General Lee, Deputy
Solicitor General Underwood, David K. Flynn, and Timothy J.
Moran.
Phillip A. Bradley argued the cause for respondents.
With him on the briefs for respondents Garrison et al. were
Barry J.
Armstrong and
David E. Hudson. J.
Patrick Claiborne and
Terrance P. Leiden filed a
brief for respondent Molloy. *
CHIEF JUSTICE REHNQUIST delivered the opinion of the Court.
Petitioner Michael A. Haddle, an at-will employee, alleges that
respondents conspired to have him fired from his job in retaliation
for obeying a federal grand jury subpoena and to deter him from
testifying at a federal criminal trial. We hold that such
interference with at-will employment may give rise to a claim for
damages under the Civil Rights Act of 1871, Rev. Stat. § 1980, 42
U. S. C. § 1985(2).
According to petitioner's complaint, a federal grand jury
indictment in March 1995 charged petitioner's employer,
*Briefs of amici curiae urging reversal were filed for the
Lawyers' Committee for Civil Rights Under Law by George W Jones,
Jr., Jacqueline Gerson Cooper, Daniel F. Kolb, Norman Redlich,
Barbara R. Arnwine, Thomas J. Henderson, Richard T. Seymour, and
Teresa A. Ferrante; for the National Employment Lawyers Association
et al. by Mark Allen Kleiman and Paula A. Brantner; and for the
National Whistleblower Center by Stephen M. Kohn.
123
Healthmaster, Inc., and respondents Jeanette Garrison and Dennis
Kelly, officers of Healthmaster, with Medicare fraud. Petitioner
cooperated with the federal agents in the investigation that
preceded the indictment. He also appeared to testify before the
grand jury pursuant to a subpoena, but did not testify due to the
press of time. Petitioner was also expected to appear as a witness
in the criminal trial resulting from the indictment.
Although Garrison and Kelly were barred by the Bankruptcy Court
from participating in the affairs of Healthmaster, they conspired
with G. Peter Molloy, Jr., one of the remaining officers of
Healthmaster, to bring about petitioner's termination. They did
this both to intimidate petitioner and to retaliate against him for
his attendance at the federal-court proceedings.
Petitioner sued for damages in the United States District Court
for the Southern District of Georgia, asserting a federal claim
under 42 U. S. C. § 1985(2) and various statelaw claims. Petitioner
stated two grounds for relief under § 1985(2): one for conspiracy
to deter him from testifying in the upcoming criminal trial and one
for conspiracy to retaliate against him for attending the grand
jury proceedings. As § 1985 demands, he also alleged that he had
been "injured in his person or property" by the acts of respondents
in violation of § 1985(2) and that he was entitled to recover his
damages occasioned by such injury against respondents jointly and
severally.
Respondents moved to dismiss for failure to state a claim upon
which relief can be granted. Because petitioner conceded that he
was an at-will employee, the District Court granted the motion on
the authority of
Morast v.
Lance, 807 F.2d
926 (1987). In
Morast, the Eleventh Circuit held that an
at-will employee who is dismissed pursuant to a conspiracy
proscribed by § 1985(2) has no cause of action. The
Morast
court explained: "[T]o make out a cause of action under § 1985(2)
the plaintiff must have suffered an actual in-
124
jury. Because Morast was an at will employee, ... he had no
constitutionally protected interest in continued employment.
Therefore, Morast's discharge did not constitute an actual injury
under this statute."
Id., at 930. Relying on its decision in
Morast, the Court of Appeals affirmed. Judgt. order reported
at
132 F.3d
46 (1997).
The Eleventh Circuit's rule in
Morast conflicts with the
holdings of the First and Ninth Circuits. See
Irizarry v.
Quiros, 722 F.2d
869, 871
(CA1 1983), and
Portman v.
County of
Santa Clara, 995 F.2d
898, 909-910
(CA9 1993). We therefore granted
certiorari, 523 U. S. 1136 (1998), to decide whether petitioner was
"injured in his property or person" when respondents induced his
employer to terminate petitioner's at-will employment as part of a
conspiracy prohibited by § 1985(2).
Section 1985(2), in relevant part, proscribes conspiracies to
"deter, by force, intimidation, or threat, any party or witness in
any court of the United States from attending such court, or from
testifying to any matter pending therein, freely, fully, and
truthfully, or to injure such party or witness in his person or
property on account of his having so attended or testified." 1 The
statute provides that if one
1 Section 1985(2) proscribes the following conspiracies: "If two
or more persons in any State or Territory conspire to deter, by
force, intimidation, or threat, any party or witness in any court
of the United States from attending such court, or from testifying
to any matter pending therein, freely, fully, and truthfully, or to
injure such party or witness in his person or property on account
of his having so attended or testified, or to influence the
verdict, presentment, or indictment of any grand or petit juror in
any such court, or to injure such juror in his person or property
on account of any verdict, presentment, or indictment lawfully
assented to by him, or of his being or having been such juror; or
if two or more persons conspire for the purpose of impeding,
hindering, obstructing, or defeating, in any manner, the due course
of justice in any State or Territory, with intent to deny to any
citizen the equal protection of the laws, or to injure him or his
property for lawfully enforcing, or attempting to enforce, the
right of any person, or class of persons, to the equal protection
of the laws."
125
or more persons engaged in such a conspiracy "do, or cause to be
done, any act in furtherance of the object of such conspiracy,
whereby another is injured in his person or property, ... the party
so injured ... may have an action for the recovery of damages
occasioned by such injury ... against anyone or more of the
conspirators." § 1985(3).2
Petitioner's action was dismissed pursuant to Federal Rule of
Civil Procedure 12(b)(6) because, in the Eleventh Circuit's view,
he had not suffered an injury that could give rise to a claim for
damages under § 1985(2). We must, of course, assume that the facts
as alleged in petitioner's complaint are true and that respondents
engaged in a conspiracy prohibited by § 1985(2). Our review in this
case is accordingly confined to one question: Can petitioner state
a claim for damages by alleging that a conspiracy proscribed by §
1985(2) induced his employer to terminate his at-will employment?
3
We disagree with the Eleventh Circuit's conclusion that
petitioner must suffer an injury to a "constitutionally protected
property interest" to state a claim for damages under § 1985(2).
Nothing in the language or purpose of the proscriptions in the
first clause of § 1985(2), nor in its attendant remedial
provisions, establishes such a requirement. The gist of the wrong
at which § 1985(2) is directed is not deprivation of property, but
intimidation or retaliation against witnesses in federal-court
proceedings. The terms "injured in his person or property" define
the harm that the victim may suffer as a result of the conspiracy
to intimidate or retaliate. Thus, the fact that employment at will
is not "prop-
2 Section 1985(3) contains the remedial provision granting a
cause of action for damages to those harmed by any of the
conspiracies prohibited in § 1985. See
Kush v.
Rutledge, 460
U. S. 719,724-725 (1983) (listing the various conspiracies that
§ 1985 prohibits).
3 We express no opinion regarding respondents' argument that
intimidation claims under § 1985(2) are limited to conduct
involving force or threat of force, or their argument that only
litigants, and not witnesses, may bring § 1985(2) claims. We leave
those issues for the courts below to resolve on remand.
126
erty" for purposes of the Due Process Clause, see
Bishop
v.
Wood, 426
U. S. 341, 345-347 (1976), does not mean that loss of at-will
employment may not "injur[e] [petitioner] in his person or
property" for purposes of § 1985(2).
We hold that the sort of harm alleged by petitioner
here-essentially third-party interference with at-will employment
relationships-states a claim for relief under § 1985(2). Such harm
has long been a compensable injury under tort law, and we see no
reason to ignore this tradition in this case. As Thomas Cooley
recognized:
"One who maliciously and without justifiable cause, induces an
employer to discharge an employee, by means of false statements,
threats or putting in fear, or perhaps by means of malevolent
advice and persuasion, is liable in an action of tort to the
employee for the damages thereby sustained. And it makes no
difference whether the employment was for a fixed term not yet
expired or is terminable at the will of the employer." 2 Law of
Torts 589-591 (3d ed. 1906) (emphasis added).
This Court also recognized in
Truax v.
Raich,
239 U. S. 33
(1915):
"The fact that the employment is at the will of the parties,
respectively, does not make it one at the will of others. The
employe has manifest interest in the freedom of the employer to
exercise his judgment without illegal interference or compulsion
and, by the weight of authority, the unjustified interference of
third persons is actionable although the employment is at will."
Id., at 38 (citing cases).
The kind of interference with at-will employment relations
alleged here is merely a species of the traditional torts of
intentional interference with contractual relations and intentional
interference with prospective contractual relations. See
Restatement (Second) of Torts § 766, Com-
127
ment g, pp. 10-11 (1977); see also id., § 766B, Comment
c, at 22. This protection against third-party interference
with at-will employment relations is still afforded by state law
today. See W. Keeton, D. Dobbs, R. Keeton, & D. Owen, Prosser
and Keaton on Law of Torts § 129, pp. 995-996, and n. 83 (5th ed.
1984) (citing cases). For example, the State of Georgia, where the
acts underlying the complaint in this case took place, provides a
cause of action against third parties for wrongful interference
with employment relations. See
Georgia Power Co. v.
Busbin, 242 Ga. 612, 613, 250 S. E. 2d 442, 444 (1978)
("[E]ven though a person's employment contract is at will, he has a
valuable contract right which may not be unlawfully interfered with
by a third person"); see also
Troy v.
Interfinancial,
Inc., 171 Ga. App. 763, 766769, 320 S. E. 2d 872, 877-879
(1984) (directed verdict inappropriate against defendant who
procured plaintiff's termination for failure to lie at a deposition
hearing).4 Thus, to the extent that the terms "injured in his
person or property" in § 1985 refer to principles of tort law, see
3 W. Blackstone, Commentaries on the Laws of England 118 (1768)
(describing the universe of common-law torts as "all private
wrongs, or civil injuries, which may be offered to the rights of
either a man's person or his property"), we find ample support for
our holding that the harm occasioned by the conspiracy here may
give rise to a claim for damages under § 1985(2).
The judgment of the Court of Appeals is reversed, and the case
is remanded for further proceedings consistent with this
opinion.
It is so ordered.
4 Petitioner did bring a claim for tortious interference with
his employment relation against respondents in Georgia state court,
but that claim was dismissed on summary judgment and the dismissal
affirmed on appeal. The ultimate course of petitioner's state-law
claim, however, has no bearing on whether he can state a claim for
damages under § 1985(2) in federal court.
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