Gibson v. Office Atty General Off the State of California ( 2009 )


Menu:
  •                    FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    PAULA LAUREN GIBSON and                 
    ANNETTE D. GOODE-PARKER,
    Plaintiffs-Appellants,
    No. 07-56124
    v.
    D.C. No.
    OFFICE OF THE ATTORNEY GENERAL,
    STATE OF CALIFORNIA; BILL                  CV-07-00838-FMC
    ORDER AND
    LOCKYER; RICHARD M. FRANK;
    AMENDED
    JAMES THOMAS GREENE; KATHLEEN
    OPINION
    FOOTE; LOUIS MAURO; JACOB
    APPLESMITH; and BARBARA MOTZ,
    Defendants-Appellees.
    
    Appeal from the United States District Court
    for the Central District of California
    Florence-Marie Cooper, District Judge, Presiding
    Argued and Submitted
    November 17, 2008—Pasadena, California
    Filed January 27, 2009
    Amended March 18, 2009
    Before: Susan P. Graber and Richard R. Clifton,
    Circuit Judges, and Edward C. Reed,* District Judge.
    Opinion by Judge Graber;
    Partial Concurrence and Partial Dissent by Judge Clifton
    *The Honorable Edward C. Reed, Jr., Senior United States District
    Judge for the District of Nevada, sitting by designation.
    3429
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL        3433
    COUNSEL
    Paula Lauren Gibson, Los Angeles, California, in propria per-
    sona, for the plaintiffs-appellants.
    Stephanie L. Quinn, Randolph Cregger & Chalfant LLP, Sac-
    ramento, California, for the defendants-appellees.
    ORDER
    The opinion filed on January 27, 2009, slip opinion page
    909, and published at 
    2009 WL 174915
    , is replaced by the
    amended opinion filed concurrently with this order.
    With this amendment, the panel has voted to deny the peti-
    tion for rehearing. Judges Graber and Clifton have voted to
    deny the petition for rehearing en banc, and Judge Reed has
    so recommended.
    The full court has been advised of the petition for rehearing
    en banc, and no judge of the court has requested a vote on it.
    The petition for rehearing and petition for rehearing en
    banc are DENIED. No further petitions will be entertained.
    3434       GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    OPINION
    GRABER, Circuit Judge:
    Plaintiffs Paula Lauren Gibson and Annette D. Goode-
    Parker work for the Office of the Attorney General of the
    State of California (“OAG”) as a lawyer and a paralegal,
    respectively. In violation of an internal policy of the OAG,
    Gibson represented Goode-Parker in a private legal malprac-
    tice case without first having obtained permission from the
    OAG. The OAG informed Gibson that she would be fired if
    she continued the private representation. Plaintiffs then filed
    this action against the OAG and individual decision-makers,
    alleging a violation of their First Amendment rights and a
    breach of contract. We hold that the district court properly
    dismissed the action under Federal Rule of Civil Procedure
    12(b)(6) for failure to state a claim, but erred in awarding
    attorney fees to Defendants.
    FACTUAL BACKGROUND
    A.     First Amendment Claim
    Gibson works as a Deputy Attorney General in the Anti-
    trust Law Section of the OAG. Goode-Parker is employed as
    a Senior Legal Analyst in the same section. On June 25, 2003,
    Gibson filed a private legal malpractice action on behalf of
    Goode-Parker against a California divorce lawyer in the Los
    Angeles Superior Court. The malpractice claim related to the
    divorce lawyer’s representation of Goode-Parker in a divorce
    proceeding. Although the OAG requires its lawyers to obtain
    permission in advance to engage in the private practice of
    law, Gibson did not seek permission to represent Goode-
    Parker until nearly a year after filing the malpractice case.
    Defendant Kathleen Foote, Senior Assistant Attorney General
    for the Antitrust Law Section, ultimately denied Gibson’s
    request on the ground that the existence of a separate, pending
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL         3435
    claim by the divorce lawyer against Gibson with the State
    Board of Control created a conflict of interest.
    Gibson filed a grievance concerning the denial of her
    request to represent Goode-Parker. Gibson argued that the
    OAG’s policy of requiring advance permission for engaging
    in the private practice of law violates the First Amendment.
    Four months later, without any formal action in response to
    Gibson’s grievance, Gibson was informed that she would be
    terminated from her employment with the OAG if she did not
    withdraw from representing Goode-Parker in the malpractice
    action.
    Immediately thereafter, Defendant James Thomas Greene,
    the Chief Assistant Attorney General for the Public Rights
    Division, reviewed and denied Gibson’s grievance. He noted
    in his denial that it is difficult for a deputy attorney general
    to engage in the private practice of law and not come into
    conflict with the OAG’s interests or those of a client. He also
    noted that the prior-approval process is necessary to prevent
    conflicts between a public employee’s official duties and his
    or her outside activities, and he opined that the process is not
    an unconstitutional prior restraint.
    Gibson appealed the denial of her grievance, and Defendant
    Richard M. Frank, Chief Deputy Attorney General, upheld the
    denial. He agreed with Greene’s conclusions that the OAG’s
    pre-approval requirement is not an unconstitutional prior
    restraint and that Gibson’s involvement in the malpractice
    action created a conflict of interest. Gibson appealed Frank’s
    decision to the Department of Personnel Administration. Her
    appeal was denied.
    Around the same time that Gibson submitted her grievance
    and appeals, she requested and received permission to repre-
    sent herself in connection with two additional legal matters
    related to the underlying malpractice case involving the
    divorce lawyer. First, she received permission to appeal a
    3436        GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    sanctions order that had been issued against her in that action,
    subject to certain limitations, including that (1) the representa-
    tion be confined to specific issues, (2) OAG resources not be
    used and Gibson’s affiliation with the OAG not be invoked,
    and (3) any criticisms of Gibson’s performance by the appel-
    late court made in the course of the appeal be reported
    promptly to the OAG.
    Gibson also was given permission to file a malicious prose-
    cution action against the divorce lawyer. The conditions
    placed on Gibson by the OAG were that (1) she would not
    disparage the OAG or its policies; (2) she would not use
    office time, materials, staff, or equipment; (3) she would not
    invoke the OAG or her title in her representation, and (4) she
    would report to Greene any criticisms or concerns expressed
    by the court during the case.
    B.     Contract Claim
    In July 2001, Gibson entered into a written agreement with
    the OAG, which provided that Gibson would transfer to the
    Antitrust Law Section from the Health, Education, and Wel-
    fare Section. The agreement was a response to Gibson’s com-
    plaints of disability discrimination and denial of reasonable
    accommodations, which she had made to the State Personnel
    Board and Department of Fair Employment and Housing.
    Goode-Parker provided many of the reasonable accommoda-
    tion services required by Gibson. Goode-Parker alleges that
    she had an oral agreement with OAG that mirrored Gibson’s
    written agreement.
    Plaintiffs assert that their respective agreements provided
    that (1) transfer to the Antitrust Law Section would take place
    in order for Plaintiffs to make a “fresh start,” (2) the reason-
    able accommodations previously provided would continue,
    (3) all other conditions of employment would remain the
    same, and (4) attorney fees for enforcement of the agreements
    would be available. Plaintiffs allege that these agreements
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL          3437
    were breached by the OAG’s denying Gibson certain over-
    time assistance, not making Goode-Parker’s reasonable
    accommodation assistance a priority over her other work, and
    denying Plaintiffs flexible work hours.
    PROCEDURAL BACKGROUND
    Plaintiffs filed suit against the OAG and a number of
    employees within the OAG. Plaintiffs claimed a breach of
    contract by Defendants and, under 42 U.S.C. § 1983, a viola-
    tion of Plaintiffs’ First Amendment rights. Defendants filed a
    motion to dismiss, arguing that they were entitled to qualified
    immunity because Plaintiffs failed to allege that they had
    engaged in any protected First Amendment activity. The dis-
    trict court agreed with Defendants, but gave Plaintiffs an
    opportunity to file an amended complaint to address the pro-
    tected activity at issue and the adverse employment actions
    taken. With regard to the contract claim, the district court held
    that Plaintiffs failed to allege conduct that was inconsistent
    with the terms of the transfer agreement. The district court
    also held that, even if Plaintiffs had alleged breach of a partic-
    ular contractual term, they failed to allege any foreseeable
    contract damages. As a result, the district court dismissed
    Plaintiffs’ contract claim with prejudice but allowed Plaintiffs
    to file an amended complaint with regard to their § 1983
    claims.
    Plaintiffs did not file an amended pleading. Accordingly,
    Defendants asked the district court to dismiss the entire
    action, and the district court did so. Plaintiffs timely appealed.
    When the district court issued its order granting attorney fees
    of $21,803.52 to Defendants, Plaintiffs timely appealed that
    decision as well. We consolidated the appeals.
    STANDARDS OF REVIEW
    We review de novo a dismissal under Rule 12(b)(6) of the
    Federal Rules of Civil Procedure for failure to state a claim.
    3438        GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    Monterey Plaza Hotel Ltd. v. Local 483 of Hotel Employees
    Union, 
    215 F.3d 923
    , 926 (9th Cir. 2000).
    We review a district court’s award of attorney fees for
    abuse of discretion. Hall v. Bolger, 
    768 F.2d 1148
    , 1150 (9th
    Cir. 1985). But we review de novo the legal standards used
    by the district court in awarding fees. Miller v. Los Angeles
    County Bd. of Educ., 
    827 F.2d 617
    , 619 (9th Cir. 1987).
    DISCUSSION
    A.     Neither Goode-Parker’s private malpractice action nor
    Gibson’s representation of her was constitutionally pro-
    tected speech.
    [1] In evaluating a First Amendment retaliation claim, this
    Court uses “a sequential five-step series of questions.” Eng v.
    Cooley, 
    552 F.3d 1062
    , 1070 (9th Cir. 2009). Those questions
    are as follows: “(1) whether the plaintiff spoke on a matter of
    public concern; (2) whether the plaintiff spoke as a private cit-
    izen or public employee; (3) whether the plaintiff’s protected
    speech was a substantial or motivating factor in the adverse
    employment action; (4) whether the state had an adequate jus-
    tification for treating the employee differently from other
    members of the general public; and (5) whether the state
    would have taken the adverse employment action even absent
    the protected speech.” 
    Id. The pivotal
    element in this case is
    the first one: whether Plaintiffs spoke on a matter of public
    concern.
    [2] Unlike the determination regarding whether the plaintiff
    spoke as a private citizen or as a public employee, which pre-
    sents a mixed question of fact and law, Posey v. Lake Pend
    Oreille Sch. Dist. No. 84, 
    546 F.3d 1121
    , 1123 (9th Cir.
    2008), the “public concern inquiry is purely a question of law,
    which we review de novo.” 
    Eng, 552 F.3d at 1070
    . Moreover,
    the facts regarding the public concern inquiry are undisputed
    here. See Jeffers v. Gomez, 
    267 F.3d 895
    , 903 (9th Cir. 2001)
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL         3439
    (per curiam) (holding that, in the absence of disputed facts,
    qualified immunity is a question of law). The question pre-
    sented here is, therefore, a legal one: whether Plaintiffs’ pri-
    vate malpractice suit is an issue of public concern.
    [3] The Supreme Court has held that speech involves a mat-
    ter of public concern when it fairly can be said to relate to
    “any matter of political, social, or other concern to the com-
    munity.” Connick v. Myers, 
    461 U.S. 138
    , 146 (1983). We
    have explained further that “[s]peech by public employees
    may be characterized as not of ‘public concern’ when it is
    clear that such speech deals with individual personnel dis-
    putes and grievances and that the information would be of no
    relevance to the public’s evaluation of the performance of
    governmental agencies.” McKinley v. City of Eloy, 
    705 F.2d 1110
    , 1114 (9th Cir. 1983). In previous cases, we have held
    that issues of public concern include, for example, speech
    about police officers’ wages and relationships with city offi-
    cials, 
    id., safety and
    emergency policies at a public school dis-
    trict, 
    Posey, 546 F.3d at 1124
    , sexual abuse of public
    employees while on the job, Freitag v. Ayers, 
    468 F.3d 528
    ,
    545 (9th Cir. 2006), discharges of raw sewage into the envi-
    ronment and exposure of public employees to dangerous con-
    taminants, Coszalter v. City of Salem, 
    320 F.3d 968
    , 974 (9th
    Cir. 2003), mismanagement and corruption in county govern-
    ment, Johnson v. Multnomah County, 
    48 F.3d 420
    , 427 (9th
    Cir. 1995), leaks to the IRS about school property purchase
    arrangements leading to additional, more expensive public
    school financing, 
    Eng, 552 F.3d at 1072-73
    , and retaliatory
    prosecution of a government employee, 
    id. at 1073.
    [4] Filing a legal malpractice claim against a private lawyer
    in connection with a private divorce matter is not an “issue of
    public concern.” The malpractice action did not involve any
    suggestion of government malfeasance; nor did it purport to
    inform the public about the operation of government; nor was
    it relevant to the public’s evaluation of a governmental agen-
    cy’s performance; nor did it challenge the conduct of any gov-
    3440         GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    ernment official or agency, but only that of Goode-Parker’s
    former divorce lawyer. In short, the malpractice action itself,
    along with Gibson’s involvement in it, was a private matter
    between Goode-Parker and her former divorce lawyer. The
    mere fact that the action potentially could have affected the
    divorce lawyer’s bar disciplinary record does not transform
    the litigation into a matter of political, social, or other concern
    to the public at large. The action remained an individual
    grievance that did not bear on the public’s evaluation of the
    performance of a public agency.1
    [5] Because Plaintiffs’ speech here, filing a private mal-
    practice action, does not qualify as an “issue of public con-
    cern,” it is not constitutionally protected speech in the context
    of public employment. In the absence of a violation of their
    constitutional rights, Plaintiffs’ 42 U.S.C. § 1983 claim
    against Defendants on First Amendment grounds must fail.
    Therefore, we hold that Defendants did not violate Plaintiffs’
    constitutional rights when they denied Gibson permission to
    represent Goode-Parker in her private malpractice action.
    B.     The OAG’s policy regarding outside litigation by its
    employees does not constitute an improper prior
    restraint.
    Plaintiffs also argue more generally that the OAG’s policy
    regarding outside litigation by its public lawyers who wish to
    represent themselves or others in private litigation, which
    Defendants applied to Gibson here, constitutes an improper
    prior restraint on their speech by “chilling” the speech of oth-
    ers who are not before the court. We are not persuaded.
    “[T]he State has interests as an employer in regulating the
    1
    The purpose of Goode-Parker’s malpractice action was to receive mon-
    etary damages, not to file a public complaint with the California state bar
    association. We need not and do not decide whether filing a public com-
    plaint with a state bar association constitutes an issue of public concern.
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL         3441
    speech of its employees that differ significantly from those it
    possesses in connection with regulation of the speech of the
    citizenry in general.” Pickering v. Bd. of Educ., 
    391 U.S. 563
    ,
    568 (1968). “When employee expression cannot be fairly con-
    sidered as relating to any matter of political, social, or other
    concern to the community, government officials should enjoy
    wide latitude in managing their offices, without intrusive
    oversight by the judiciary in the name of the First Amend-
    ment.” 
    Connick, 461 U.S. at 146
    .
    [6] We have not addressed precisely whether a public
    employer’s policy regulating its employees’ outside employ-
    ment activities is a prior restraint on the employees’ speech,
    but our decision in Hudson v. Craven, 
    403 F.3d 691
    (9th Cir.
    2005), provides some guidance to us. In that case, the plaintiff
    served as an instructor at a community college. 
    Id. at 693.
    She
    organized an unofficial field trip for her students to attend a
    protest against the World Trade Organization despite being
    warned not to do so by college officials. 
    Id. at 694.
    She then
    sued various college administrators when her employment
    contract was not renewed after the protest. 
    Id. at 695.
    We held
    that the plaintiff’s rights to free speech and association were
    at issue. 
    Id. at 696.
    Using the balancing test established in
    
    Pickering, 391 U.S. at 568
    , we held further that the profes-
    sor’s protest activities were a matter of public concern but that
    “the legitimate administrative interests” of the college
    strongly outweighed the plaintiff’s First Amendment free-
    doms. 
    Hudson, 403 F.3d at 699
    .
    [7] Similarly, Plaintiffs’ argument that the OAG’s policy is
    an unconstitutional prior restraint on their speech must fail.
    The first Pickering inquiry explores whether the speech that
    led to the adverse employment action relates to a matter of
    public concern, and the second inquiry questions whether,
    using a balancing test, the public employer can demonstrate
    that its legitimate interests outweigh the employee’s First
    Amendment rights. 
    Hudson, 403 F.3d at 696
    . As we have dis-
    cussed already, Goode-Parker’s private malpractice action is
    3442       GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    not a matter of public concern and, therefore, is not entitled
    to free speech protections. But even if we were to credit Plain-
    tiffs’ assertion that they spoke on an issue of public concern,
    thereby meeting the threshold for protected speech, the
    OAG’s policy is constitutionally sound under the second
    Pickering prong.
    [8] The Court of Appeals for the District of Columbia is the
    only federal circuit court that has faced this precise issue pre-
    viously. In Williams v. IRS, 
    919 F.2d 745
    (D.C. Cir. 1990)
    (per curiam), the court upheld a policy that prohibited an
    Internal Revenue Service (“IRS”) lawyer from engaging in
    the outside practice of law. In that case, the plaintiff was a
    senior tax lawyer employed by the IRS. 
    Id. at 745.
    He filed
    a class action lawsuit against a church’s board of directors for
    an accounting of trust funds. 
    Id. The IRS
    maintained a policy
    requiring its employees to obtain written permission from the
    agency before engaging in any outside employment or busi-
    ness activities. 
    Id. Because the
    plaintiff had failed to seek
    such permission, the agency suspended him for five days.
    
    Id. at 746.
    Noting that “the government may limit the exercise
    of a citizen’s first amendment rights where government regu-
    lations are aimed to address legitimate concerns,” the court
    upheld the agency’s policy and the sanctions imposed on the
    plaintiff. 
    Id. The court
    held that the policy of requiring prior
    written permission was proper because it was tailored to the
    government’s interests in operating efficiently and in avoiding
    the appearance of impropriety. 
    Id. at 747.
    The policy did not
    prohibit all outside activities. Rather, it allowed the agency to
    determine whether (1) there is an apparent conflict of interest,
    (2) tax issues are involved, (3) official information would be
    used improperly, or (4) the expenditure of time would
    adversely affect the employee’s performance of his or her
    official duties. 
    Id. [9] The
    policy at issue here is very similar to the one exam-
    ined in Williams. The OAG’s policy reads in pertinent part:
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL           3443
    No lawyer employed by the Department of Justice
    shall engage in the private practice of the law, pro-
    vided, however, that he may handle personal and
    family legal matters in which there is no conflict
    with his duties as a[n] employee of the state, after
    first obtaining approval of the Attorney General.
    Lawyers, upon becoming members of the Depart-
    ment of Justice, with the approval of the Attorney
    General, will be given a reasonable time within
    which to close pending legal matters.
    Like the policy in Williams, which required an employee to
    obtain written permission from the agency before engaging in
    outside employment or business 
    activities, 919 F.2d at 745
    ,
    the OAG’s policy here does not unduly restrict the constitu-
    tional rights of a state-employed lawyer. The policy does not
    prohibit all outside practice of law. The requirement to seek
    written permission before engaging in outside representation
    allows the OAG to assess whether the requested outside
    employment creates any conflict of interest or impedes any
    other legitimate interest of the state. There is a close and ratio-
    nal relationship between the policy and legitimate govern-
    mental interests: The OAG has a legitimate interest in
    regulating practice-related conduct of its lawyers to avoid any
    conflict of interest and to avoid any potential prejudice to the
    OAG and its clients, as well as a legitimate interest in ensur-
    ing that its employees are devoting their full attention to the
    business of the OAG. Further, the OAG’s policy is even more
    permissive than the policy upheld in Williams in that the
    OAG’s policy requires pre-approval only for the private prac-
    tice of law, not for all outside employment and business activ-
    ities.
    [10] Because the OAG’s policy serves legitimate govern-
    ment interests and does not unduly restrict its employees’
    constitutional rights, we hold that the policy is not an
    improper prior restraint on speech.
    3444         GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    C.     Plaintiffs fail to state a contract claim.
    Plaintiffs allege that the OAG breached two contracts: (1)
    Gibson’s written transfer agreement transferring her to the
    Antitrust Law Section along with Goode-Parker’s analogous
    oral agreement, and (2) the Memorandum of Understanding
    (“MOU”) between the OAG and Plaintiffs’ labor unions.
    The transfer agreement between Gibson and the OAG pro-
    vides for her to move from the Health, Education, and Wel-
    fare Section of the OAG to the Antitrust Law Section. The
    agreement provides that, “by this Agreement, the Parties
    intend to fully and completely resolve any and all remaining
    disputes between them . . . and to create the fresh start desired
    by all.” The agreement lists a number of reasonable accom-
    modations to be provided to Gibson, including voice-activated
    software, a digital voice recorder, an ergonomic chair, and a
    paralegal to assist her on complex cases. The parties to the
    agreement reserved “the right to re-evaluate these accommo-
    dations from time to time based on changing circumstances
    and information.” The agreement further represents that the
    parties discharge each other from any and all claims, that they
    have not initiated any legal or administrative proceeding
    against each other, with an exception not relevant here, and
    that they indemnify each other with regard to attorney fees in
    connection with the agreement.
    Plaintiffs asserted in their complaint that the OAG breached
    the transfer agreement because the OAG denied Gibson the
    overtime assistance of Goode-Parker, the OAG did not pri-
    oritize Goode-Parker’s reasonable accommodation assistance
    over her other work, Plaintiffs were micro-managed and dis-
    trusted by their superiors, and Plaintiffs were not assigned sig-
    nificant cases because of their complaints. None of Plaintiffs’
    complaints are inconsistent with the terms of the transfer
    agreement. The alleged denials of overtime paralegal support
    from Goode-Parker and failure to prioritize that assistance
    over Goode-Parker’s other work are not denials of any
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL         3445
    accommodations specifically set forth in the transfer agree-
    ment. The same is true for the allegations of being micro-
    managed by superiors and not being assigned significant
    cases: Even if Plaintiffs’ allegations are true, they are not
    breaches of any provision in the transfer agreement.
    With regard to the MOU, Plaintiffs allege that they were
    denied certain employment benefits, including flexible work
    hours. Even if Plaintiffs’ allegations are true, however, they
    cannot form the basis of a breach of contract claim. Under
    California law, a “civil service employee . . . cannot state such
    a cause of action” as the terms and conditions of civil service
    employees are fixed by statute, not by contract. Shoemaker v.
    Myers, 
    801 P.2d 1054
    , 1068 (Cal. 1990); see also Kim v.
    Regents of Univ. of Cal., 
    95 Cal. Rptr. 2d 10
    , 12 (Ct. App.
    2000) (“[O]ur Supreme Court has made it clear that civil ser-
    vice employees cannot state a cause of action for breach of
    contract or breach of the implied covenant of good faith and
    fair dealing.”); Miller v. State, 
    557 P.2d 970
    , 973 (Cal. 1977)
    (“Nor is any vested contractual right conferred on the public
    employee because he occupies a civil service position since it
    is equally well settled that the terms and conditions of civil
    service employment are fixed by statute and not by contract.”
    (brackets and internal quotation marks omitted)).
    [11] Finally, Plaintiffs’ contractual claims must fail because
    Plaintiffs have failed to allege any foreseeable contract dam-
    ages. The only alleged damages are for emotional and physi-
    cal distress, neither of which is recoverable on a California
    contract claim. Applied Equip. Corp. v. Litton Saudi Arabia
    Ltd., 
    869 P.2d 454
    , 460 (Cal. 1994); Sawyer v. Bank of Am.,
    
    145 Cal. Rptr. 623
    , 625 (Ct. App. 1978).
    [12] In summary, because there was no breach of any con-
    tractual agreement between Plaintiffs and Defendants and
    because, even if there were, Plaintiffs failed to allege foresee-
    able damages, Plaintiffs failed to state a contract claim.
    3446        GIBSON v. OFFICE OF THE ATTORNEY GENERAL
    D.     Defendants are not entitled to attorney fees.
    The district court, holding that Plaintiffs’ action was “frivo-
    lous” or “meritless,” see Galen v. County of Los Angeles, 
    477 F.3d 652
    , 666 (9th Cir. 2007), awarded attorney fees to
    Defendants pursuant to 42 U.S.C. § 1988. We hold that the
    district court erred in so characterizing Plaintiffs’ claims.
    [13] “A case may be deemed frivolous only when the
    ‘result is obvious or the . . . arguments of error are wholly
    without merit.’ ” Karam v. City of Burbank, 
    352 F.3d 1188
    ,
    1195 (9th Cir. 2003) (quoting McConnell v. Critchlow, 
    661 F.2d 116
    , 118 (9th Cir. 1981)). A losing § 1983 claim is with-
    out merit only if it is “groundless or without foundation.”
    Christiansburg Garment Co. v. EEOC, 
    434 U.S. 412
    , 421
    (1978).
    [14] Plaintiffs’ argument that the OAG’s policy is a prior
    restraint on speech lies at the heart of their action. Although
    we agree with the approach taken by the Williams case, no
    similar precedent in our circuit would have signaled to Plain-
    tiffs that they should not bring this claim at all. Because Plain-
    tiffs raised a question that was not answered clearly by our
    precedent, we hold that their claim was not frivolous and,
    accordingly, that Defendants are not entitled to any attorney
    fees.
    DISMISSAL OF ACTION AFFIRMED; FEE AWARD
    VACATED. The parties shall bear their own costs on appeal.
    CLIFTON, Circuit Judge, concurring in part and dissenting in
    part:
    I fully join most of the majority opinion. My only disagree-
    ment concerns the award of attorneys’ fees. I share the view
    GIBSON v. OFFICE OF THE ATTORNEY GENERAL          3447
    of the district court that the lawsuit filed by Plaintiffs was, in
    substantial part, frivolous and would thus affirm the award.
    A legal proposition can be frivolous even though this court
    has not previously rejected it. The contention that the First
    Amendment guarantees a lawyer employed by the govern-
    ment the right to file and pursue a private legal malpractice
    action on behalf of another person is such a proposition.
    Plaintiffs cite no authority supporting that proposition or any
    reasonable analogy. We might not have gone down this trail
    before, but it was not a hard trail to blaze.
    The majority opinion justifies its reversal of the fee award
    by observing, at 3446, that our circuit did not have precedent
    similar to the D.C. Circuit’s per curiam decision in Williams
    v. IRS, 
    919 F.2d 745
    (D.C. Cir. 1990). But our court did have
    ample precedent on the question of whether Plaintiffs’ speech
    here was constitutionally protected, and we had no difficulty
    concluding that it was not. See majority opinion at 3438-40.
    We reached the Williams issue as an alternative ground for
    decision, by assuming that the speech in question was consti-
    tutionally protected, though we had already held to the con-
    trary. See majority opinion at 3442 (“even if we were to credit
    Plaintiffs’ assertion that they spoke on an issue of public con-
    cern, thereby meeting the threshold for protected speech”).
    Plaintiffs’ First Amendment claim was plainly without merit,
    separate and apart from the Williams issue.
    The district court did not abuse its discretion in finding that
    claim frivolous. On that element, I respectfully dissent.
    

Document Info

Docket Number: 07-56124

Filed Date: 3/18/2009

Precedential Status: Precedential

Modified Date: 10/14/2015

Authorities (21)

Posey v. Lake Pend Oreille School District No. 84 , 546 F.3d 1121 ( 2008 )

Franklin L. Miller v. Los Angeles County Board of Education ... , 827 F.2d 617 ( 1987 )

jack-d-mcconnell-v-edward-b-critchlow-the-county-of-benton-washington , 661 F.2d 116 ( 1981 )

Eng v. Cooley , 552 F.3d 1062 ( 2009 )

Barbara v. Hudson v. James Craven Yvette Jackson Patricia ... , 403 F.3d 691 ( 2005 )

Monterey Plaza Hotel Limited Partnership v. Local 483 of ... , 215 F.3d 923 ( 2000 )

Charles E. Williams v. Internal Revenue Service , 919 F.2d 745 ( 1990 )

donnell-jeffers-v-james-gomez-director-california-department-of , 267 F.3d 895 ( 2001 )

38-fair-emplpraccas-1314-38-empl-prac-dec-p-35496-geraldine-hall-v , 768 F.2d 1148 ( 1985 )

jeffrey-m-galen-v-county-of-los-angeles-los-angeles-county-sheriffs , 477 F.3d 652 ( 2007 )

theresa-karam-v-city-of-burbank-a-municipality-burbank-police-department , 352 F.3d 1188 ( 2003 )

guido-coszalter-gary-jones-steve-johnson-v-city-of-salem-a-municipal , 320 F.3d 968 ( 2003 )

deanna-l-freitag-v-robert-j-ayers-jr-teresa-schwartz-augustine-lopez , 468 F.3d 528 ( 2006 )

Jan Johnson v. Multnomah County, Oregon, a Political ... , 48 F.3d 420 ( 1995 )

Sawyer v. Bank of America , 145 Cal. Rptr. 623 ( 1978 )

Shoemaker v. Myers , 52 Cal. 3d 1 ( 1990 )

Miller v. State of California , 18 Cal. 3d 808 ( 1977 )

Kim v. Regents of University of California , 80 Cal. App. 4th 160 ( 2000 )

Pickering v. Board of Ed. of Township High School Dist. 205,... , 88 S. Ct. 1731 ( 1968 )

Christiansburg Garment Co. v. Equal Employment Opportunity ... , 98 S. Ct. 694 ( 1978 )

View All Authorities »