Brecheen v. Lofaro ( 2014 )


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  •                                                                             FILED
    United States Court of Appeals
    Tenth Circuit
    UNITED STATES COURT OF APPEALS
    May 21, 2014
    TENTH CIRCUIT                Elisabeth A. Shumaker
    Clerk of Court
    ROGER BRECHEEN, M.D., individually
    and as successor to ROGER BRECHEEN,
    P.C., a Wyoming corporation; JACKSON
    HOLE OB-GYN P.C., a Wyoming
    corporation; KATHY WATKINS-
    BRECHEEN, CNM,
    Plaintiffs-Appellants,
    No. 13-8059
    v.                                                (D.C. No. 1:10-CV-00263-SWS)
    (D. Wyo.)
    MAURA LOFARO, M.D. - Doctor of
    Medicine, individually and acting through
    MAURA J. LOFARO, M.D., P.C., a
    Wyoming corporation; SHANNON
    ROBERTS, M.D.,
    Defendants-Appellees.
    ORDER AND JUDGMENT*
    Before BRISCOE, Chief Judge, BALDOCK and MATHESON, Circuit Judges.
    Plaintiffs Roger Brecheen, M.D., his wife, Kathy Watkins-Brecheen, and Jackson
    Hole Ob-Gyn, P.C., a professional corporation formed by Brecheen, filed this action
    *
    This order and judgment is not binding precedent, except under the doctrines of
    law of the case, res judicata, and collateral estoppel. It may be cited, however, for its
    persuasive value consistent with Fed. R. App. P. 32.1 and 10th Cir. R. 32.1.
    asserting a host of federal and state claims arising out of Brecheen’s eviction from an
    office building in Jackson, Wyoming. Among those were two claims asserted under 42
    U.S.C. § 1983, one for deprivation of Brecheen’s property interests and another for
    deprivation of Brecheen’s liberty interests, against defendant Maura Lofaro, M.D., a
    former partner of Brecheen’s. The district court granted summary judgment in favor of
    Lofaro on those claims. Plaintiffs now appeal. Exercising jurisdiction pursuant to 28
    U.S.C. § 1291, we affirm.
    I
    Factual background
    a) The parties and their employment
    Plaintiff Roger Brecheen, M.D. (Brecheen), is a board-certified obstetrician and
    gynecologist licensed to practice medicine in the State of Wyoming. Brecheen’s wife,
    plaintiff Kathy Watkins-Brecheen (Watkins-Brecheen), is a certified nurse midwife
    licensed to practice in the State of Wyoming.
    In 1993, Brecheen and his wife moved to Jackson, Wyoming, where Brecheen
    established a solo practice in obstetrics and gynecology. Watkins-Brecheen began
    working for Brecheen shortly thereafter. In June 1994, Brecheen formed Jackson Hole
    Ob-Gyn, P.C. (JHOG), a professional corporation through which he provided obstetric
    and gynecologic care to his patients.
    In July 1997, defendant Maura Lofaro, M.D. (Lofaro), began working for JHOG as
    a board-certified obstetrician and gynecologist. Lofaro also served as a sponsoring
    2
    physician for Watkins-Brecheen in her work as a midwife. On March 1, 2000, Brecheen
    and Lofaro entered into a Stock Purchase and Transfer Agreement pursuant to which each
    of them became a 50% shareholder of JHOG.
    In 2002, defendant Shannon Roberts, M.D. (Roberts), began working for JHOG as
    an obstetrician and gynecologist. She also, as an employee of JHOG, served as a
    sponsoring physician for Watkins-Brecheen in her work as a midwife. Roberts was
    subsequently offered the opportunity to buy into the JHOG partnership, but she declined
    and continued to work as an employee of JHOG.
    b) The lease agreement
    On June 1, 1994, Zadie, Inc. (Zadie), a corporation owned and operated by
    Brecheen, entered into a “Hospital ‘Campus’ Lease Agreement” (Lease Agreement) with
    the Teton County Hospital District d/b/a St. John’s Medical Center (SJMC), to lease Suite
    201 of the St. John’s Professional Office Building. Aplt. App. at 1151. The intended
    purpose of the Lease Agreement was to allow JHOG to utilize Suite 201 in the St. John’s
    Professional Office Building for its medical practice.
    Paragraph 1.2 of the Lease Agreement outlined the lease term:
    1.2 Lease Term. The lease term shall be a period commencing on
    June 1, 1994 and terminating on May 30, 1995, unless extended or
    terminated in accordance with this Agreement.
    The Lessee shall have the option to extend this lease for a period of
    five additional years to be included as part of the lease term. Any such
    extension shall be automatic without any further action unless the Lessee
    gives written notice of non-extension to Lessor by certified mail at least 60
    days prior to the end of the original lease term. Any extension term will be
    3
    treated as part of the lease term.
    Aplee. App. at 185.
    Paragraph 2.3 of the Lease addressed the subject of modifications to the lease
    terms:
    2.3 Entire Agreement. All representations made by the parties in
    negotiations of this Agreement have been incorporated herein; there are no
    verbal agreements between the parties or implied duties to modify the terms
    and conditions thereof, and any further modification of this Agreement
    must be in writing and signed on behalf of the Lessee and Lessor.
    
    Id. at 189.
    On May 30, 2000, the final day of the automatic five-year extension period under
    the Lease Agreement, SJMC’s Assistant Administrator Virgil Boss reviewed and added
    the following handwritten notations to Paragraph 1.2 of the Lease Agreement (which, as
    noted, addressed the lease term): “Monthly Rent. $2874.13 + NNM @ 3.50 = $793 mo”
    and “Month to Month 5/30/00.” 
    Id. at 185.
    Boss then met with Brecheen and reviewed
    the Lease Agreement and Boss’s handwritten notations. Neither Boss nor Brecheen
    initialed or signed the handwritten notations.
    c) Dissolution of JHOG and the separation of Drs. Brecheen and Lofaro
    Brecheen and Lofaro continued their practice as equal partners in JHOG until early
    2007. At that time, they began discussing the possibility of Lofaro purchasing
    Brecheen’s shares in JHOG. The two were unable, however, to agree on a price for
    Brecheen’s share of JHOG. 
    Id. In the
    fall of 2007, Lofaro invited Brecheen to attend a mediation on October 19,
    4
    2007. Brecheen agreed to do so. Lofaro was represented at the mediation by an attorney,
    as were Brecheen and his wife. The mediation ended with no formal written agreement
    having been signed and executed by Lofaro and Brecheen. But Lofaro believed that she
    and Brecheen had agreed on several matters relevant to the dissolution, and Brecheen
    conceded that they “theoretically reached an agreement to dissolve” JHOG, Aplee. App.
    at 419, with “some details pending [his] leaving [Suite 201] . . . to be worked out,” 
    id. at 420.
    Shortly after the mediation session ended, Lofaro contacted Boss and told him, in
    pertinent part, that: she and Brecheen had dissolved JHOG; she and her staff would
    remain in Suite 201; Brecheen and his staff would need new space or an alternative space
    for eighteen months opposite Suite 201; she and Brecheen would be splitting JHOG’s
    accounts receivable and she would be taking JHOG’s furniture; and Brecheen had signed
    an Arbitration Agreement.
    On October 26, 2007, James Schuessler, SJMC’s CEO, sent a letter to Lofaro
    “acknowledging [her] verbal notice . . . that J[HOG] w[ould] be dissolving effective
    November 30, 2007, pending final legal documents.” Aplee. App. at 205. The letter
    further informed Lofaro: “As Lessee of Suites 201 and 203 in the Professional Office
    building, you will be required to have [SJMC] approval for any new business entity
    transfer or assignment on December 1, 2007.” 
    Id. Schuessler sent
    a copy of his letter to
    Brecheen and, on November 15, 2007, Brecheen sent a letter to Schuessler
    acknowledging receipt of Schuessler’s October 26, 2007 letter. In his letter of November
    5
    15, 2007, Brecheen stated, in pertinent part, that “dissolution [of JHOG] w[ould] not be
    completed by November 30th, [but that] this separation of a long-standing medical
    practice w[ould] occur soon,” and that he “w[ould] be moving [his] medical practice off
    the campus of SJMC.” 
    Id. at 207.
    Following the mediation, Brecheen vacillated openly, in a series of emails
    exchanged with Lofaro, regarding whether to keep his practice in Suite 201 or to move it
    elsewhere. For example, in an email sent to Lofaro on October 30, 2007, Brecheen
    stated, in pertinent part: “Relax about the dissolution. I have no problem with that and the
    sooner the better. All that is left undecided about any of this in my mind is where I will
    do what my plans involve. You have the ability to decide/influence that . . . your choice.”
    
    Id. at 375.
    And, on or around October 30, 2007, Brecheen indicated to Lofaro that he
    intended to vacate Suite 201 and leave Lofaro responsible for the employees of JHOG.
    At or about that time, Brecheen was apparently exploring options that included joining a
    medical practice in Wilson, Wyoming, or becoming chief of obstetrics/gynecology at a
    hospital in Afton, Wyoming.
    Lofaro proceeded to move forward with the intention of keeping her post-JHOG
    practice in Suite 201. On October 31, 2007, Boss prepared a new lease agreement for
    Suite 201. The tenant was Gros Ventre OB-GYN, LLP, an entity formed by Lofaro and
    Roberts. Lofaro executed this lease agreement on or about November 2, 2007.
    According to its express terms, this lease agreement became effective on December 1,
    2007.
    6
    On November 5, 2007, Clay Geittmann, an attorney representing Lofaro, sent an
    email to Brecheen’s attorney, Scott Klosterman, stating in pertinent part that “[i]n case
    the office space bec[ame] an issue for Dr. Brecheen,” Lofaro was “still amicable to
    having Dr. Brecheen use the Teton Laser Center space [also located in the SJMC
    Professional Building] at no cost to Dr. Brecheen.” Aplee. App. at 382. Three days later,
    on November 8, 2007, Geittmann sent an email to Klosterman stating, in pertinent part,
    that Lofaro “w[ould] be ready to go with the 12/1 transition date.” 
    Id. at 383.
    On December 3, 2007, Andrea Richard, another attorney representing Lofaro, sent
    a letter to Klosterman stating, in pertinent part:
    Our firm has been asked to assist Dr. Maura Lofaro, MD in connection
    with the separation of Dr. Lofaro’s practice from Dr. Brecheen’s practice
    and the dissolution of [JHOG].
    ***
    Despite the parties’ agreement on the date for a completed transition, we
    understand that Dr. Brecheen is planning to see patients in the office this
    week. We are willing to accommodate his need to see patients in the office
    this week. As you and Dr. Brecheen know, the existing office space is
    being leased by Dr. Lofaro’s new practice effective December 1, 2007. It is
    only fair to both Dr. Brecheen and Dr. Lofaro that the overdue transition
    between the parties be completed. Thus, Dr. Brecheen’s use of and access
    to the office will end on Monday, December 10th, 2007 at 5:00 p.m. * * *
    With respect to the legal aspects of the dissolution, those must also be
    accomplished as soon as possible and without any further delay. As we
    understand it, the parties participated in a mediation on Friday, October 19,
    2007. Mark Gifford served as the mediator and the parties were successful
    in reaching an agreement. The agreement the parties reached included the
    specific terms for the dissolution of [JHOG] . . . .
    
    Id. at 363-64.
    7
    On December 5, 2007, Lofaro sent an email to Brecheen stating as follows:
    Roger - Shannon [Roberts] and I heard that you are moving to an office in
    Wilson and perhaps that space is not ready for occupancy. We would like
    to speak with you in person to try and figure out a reasonable solution so
    that you do not have to move twice in the next month. * * * We would like
    to get a timeline from you, work out a solution so that I can get Andrea
    Richard off of your back, and we can finish JHOG dissolution/collections/
    allocation of equipment in a humane professional manner.
    
    Id. at 367.
    On December 6, 2007, Lofaro asked Boss to have the locks on the doors of Suite
    201 changed. Lofaro also asked Boss about having Brecheen’s name removed from the
    signage.
    On Monday, December 10, 2007, Brecheen arrived for work at Suite 201 to see his
    scheduled patients. At the end of that day, Lofaro approached Brecheen and “asked him
    not to continue to show up to see patients.” Aplt. App. at 1165. Brecheen stated in
    response that he would leave Suite 201 when his new office space in Wilson, Wyoming,
    was ready.
    On that same day, December 10, 2007, Richard (Lofaro’s attorney) sent a letter to
    Brecheen’s attorney stating, in pertinent part:
    As you know on December 3, 2007, we forwarded a letter concerning
    the various deadlines that Dr. Brecheen and Dr. Lofaro agreed to during
    their mediation and later memorialized in their Separation and Dissolution
    agreement. As we advised in our December 3, 2007, letter, Dr. Brecheen’s
    use of and access to the former [JHOG] office will end on Monday,
    December 10th, 2007 at 5:00 p.m. Dr. Lofaro had a discussion with Dr.
    Brecheen today confirming the same again.
    8
    As you know, Dr. Lofaro has attempted to work with Dr. Brecheen to
    make this transition occur with as little disruption as possible to either
    party. Nevertheless, the time has come and the transition, which was due to
    be accomplished by November 30, 2007, needs to be completed. Because
    the lease to the office space is no longer held by [JHOG], Dr. Brecheen has
    no legal right to occupy or use the former [JHOG] office space to see
    patients or conduct other activities. We would appreciate your efforts to aid
    in this transition.
    Aplee. App. at 366.
    At approximately 9:00 a.m. on December 11, 2007, Sergeant Alan John of the
    Jackson Police Department, accompanied by another officer, arrived in uniform at the
    Professional Office Building in which Suite 201 was housed. Lofaro had purportedly
    requested their presence. Sergeant John was met by Boss and Jim Schuessler, who
    informed him that Brecheen needed to be evicted from Suite 201. When Brecheen
    arrived at Suite 201 shortly after 9:00 a.m. that morning, he was met by Sergeant John.
    Sergeant John escorted Brecheen inside one of the offices in Suite 201 and informed him:
    “I was here to keep the peace, but that I was told that he was being evicted and that I was
    asking him to act like a gentleman and allow me to keep the peace.” Aplt. App. at 1166.
    Sergeant John then escorted Brecheen out to the parking lot. After speaking briefly,
    Brecheen asked Sergeant John if he could go back inside to get his coat and make
    arrangements to have an inventory of everything in the office. Sergeant John agreed, and
    the two men walked back towards Suite 201. In a hallway outside of Suite 201, Brecheen
    and Sergeant John spoke with Boss and Schuessler. Schuessler and Boss confirmed that
    they had terminated JHOG’s lease for Suite 201.
    9
    Brecheen continued to practice medicine at SJMC, albeit not out of Suite 201,
    following the events of December 11, 2007. In particular, Brecheen continued to practice
    at SJMC through early 2009, when he voluntarily resigned his privileges. Since that time,
    Brecheen has been employed by Star Valley Medical Center in Afton, Wyoming, and
    Powell Valley Hospital in Powell, Wyoming.
    Procedural background
    On December 9, 2010, Brecheen, Watkins-Brecheen and JHOG initiated this
    action by filing suit against Lofaro, Roberts, SJMC, the Board of Trustees for SJMC,
    Schuessler, Boss, and three other officers of SJMC. The complaint alleged the following
    claims: “(1) deprivation of Plaintiffs[’] contractual and property rights guaranteed under
    the United States and Wyoming Constitutions; (2) interference with Plaintiffs’ medical
    practices and legitimate business interests; (3) breach of contract; (4) breach of the
    implied covenant of good faith and fair dealing; (5) intentional interference with
    contractual relationships; (6) intentional interference with prospective economic
    advantage; (7) civil conspiracy; (8) negligent supervision; (9) defamation; and (10)
    intentional infliction of emotional distress.” Aplt. App. at 27.
    The claims against SJMC, the Board of Trustees for SJMC, Schuessler, Boss and
    the three other officers of SJMC were ultimately dismissed by the district court, leaving
    only the claims asserted against defendants Lofaro and Roberts. See Dist. Ct. Docket
    Nos. 80 (dismissing certain claims against Board of Trustees for SJMC), 170 (dismissing
    claims against Schuessler, Boss, and three other SJMC officers), 185 (dismissing
    10
    remaining claims against SJMC and Board of Trustees).
    On March 13, 2013, defendants Lofaro and Roberts filed a joint motion for
    summary judgment with respect to the claims asserted against them. This included three
    federal claims asserted by Brecheen against Lofaro (deprivation of property without due
    process of law, in violation of 42 U.S.C. § 1983; deprivation of liberty interest without
    due process of law, in violation of 42 U.S.C. § 1983; and conspiracy to deprive Brecheen
    of his constitutionally-protected rights, in violation of 42 U.S.C. § 1985(3)), one federal
    claim asserted by Brecheen against Roberts (conspiracy to deprive Brecheen of his
    constitutionally-protected rights, in violation of 42 U.S.C. § 1985(3)), and three state law
    claims asserted by Brecheen against Lofaro and Roberts (intentional interference with
    contractual relationships and unlawful interference with prospective advantage; breach of
    the implied covenant of good faith and fair dealing; and intentional infliction of emotional
    distress). It also included a single federal claim asserted by Watkins-Brecheen against
    Lofaro and Roberts for conspiracy to deprive her of her constitutionally-protected rights,
    in violation of 42 U.S.C. § 1985(3), and state law claims asserted by Watkins-Brecheen
    against Lofaro and Roberts for breach of the implied covenant of good faith and fair
    dealing, and intentional infliction of emotional distress.
    On May 24, 2013, the district court issued a written order granting Lofaro’s and
    Robert’s motion for summary judgment with respect to the federal claims asserted against
    them. In doing so, the district court focused first on plaintiffs’ federal claims. With
    respect to the claim that Lofaro deprived Brecheen of property without due process of
    11
    law, the district court concluded that Brecheen had no protectable property interest in the
    lease to Suite 201 on December 11, 2007, when he was evicted from Suite 201. Aplt.
    App. at 1561. With respect to the claim that Lofaro deprived Brecheen of a liberty
    interest in practicing medicine, the district court concluded that Brecheen had failed to
    establish the kind of alteration in legal status necessary to give rise to a cognizable liberty
    interest claim. Lastly, the district court concluded that plaintiffs’ assertions that Lofaro
    and Roberts “conspired to deprive them of their constitutional rights on the basis of their
    age” failed “[b]ecause as a matter of law, an age discrimination claim cannot serve as the
    basis of a § 1985(3) claim.” 
    Id. at 1572.
    After disposing of plaintiffs’ federal claims against Lofaro and Roberts, the district
    court concluded that “this matter [wa]s, at its heart, a relatively straightforward dispute
    concerning the termination of the parties’ professional relationship” that gave rise to
    “state law claims that [we]re best decided in the state court forum.” 
    Id. at 37.
    Consequently, the district court “determine[d] that outright dismissal of the pendant state
    law claims, without prejudice, [wa]s . . . appropriate,” particularly in light of the fact that
    there was an “ongoing state court action with which th[o]se claims [we]re intertwined.”
    
    Id. at 36.
    Judgment was entered in the case on May 24, 2013. Plaintiffs filed a timely notice
    of appeal.
    II
    On appeal, plaintiffs challenge only two parts of the district court’s order granting
    12
    summary judgment in favor of defendant Lofaro. First, they contend that the district
    court erred in rejecting Brecheen’s § 1983 claim that he was deprived by Lofaro of a
    constitutionally-protected property interest in Suite 201. Second, they contend that the
    district court erred in rejecting Brecheen’s claim, likewise brought under § 1983, that he
    was deprived by Lofaro of a liberty interest in practicing medicine. For the reasons
    described in greater detail below, we reject plaintiffs’ arguments and conclude that the
    district court properly granted summary judgment in favor of Lofaro on both of these
    claims.
    Standard of review
    We review a grant of summary judgment de novo, applying the same standard as
    the district court. Braswell v. Cincinnati Inc., 
    731 F.3d 1081
    , 1085 (10th Cir. 2013).
    “Summary judgment is appropriate if ‘there is no genuine dispute as to any material fact
    and the movant is entitled to judgment as a matter of law.’” Squires v. Breckenridge
    Outdoor Educ. Ctr., 
    715 F.3d 867
    , 872 (10th Cir. 2013) (quoting Fed. R. Civ. P. 56(a)).
    We “may affirm the decision of the district court on any basis for which there is support
    in the record.” Sanchez v. Vilsack, 
    695 F.3d 1174
    , 1180 (10th Cir. 2012).
    Deprivation of a property interest in Suite 201
    Brecheen alleged in his complaint that, on December 11, 2007, Lofaro deprived
    him of a constitutionally-protected property right by excluding him from Suite 201. To
    prevail on this claim under 42 U.S.C. § 1983, Brecheen must establish, in pertinent part,
    that he was “deprived of a right ‘secured by the Constitution and the laws’ of the United
    13
    States.” Flagg Bros., Inc. v. Brooks, 
    436 U.S. 149
    , 155 (1978); see Johnson v. Rodrigues,
    
    293 F.3d 1196
    , 1203 (10th Cir. 2002).
    “For purposes of the Fourteenth Amendment’s Due Process Clause, property
    interests must derive from some independent source, such as state law, contract, or other
    understandings that give rise to a claim of entitlement.” Eisenhour v. Weber County, 
    744 F.3d 1220
    , 1232 (10th Cir. 2014). A possessory interest in property that arises from a
    contract, such as a lease, has been held “sufficient to invoke the protection of the Due
    Process Clause.” Fuentes v. Shevin, 
    407 U.S. 67
    , 87 (1972) (involving possessory
    interest in goods that arose under a conditional sales contract); see Thomas v. Cohen, 
    304 F.3d 563
    , 576 (6th Cir. 2002) (holding that, “[u]nder Kentucky law, tenants holding
    leasehold estates have a recognized property interest”). Under Wyoming state law, a
    leasehold tenant has a possessory interest in the real property at issue. See Wolin v.
    Walker, 
    830 P.2d 429
    , 433-34 (Wyo. 1992); see generally Connaghan v. Eighty-Eight Oil
    Co., 
    750 P.2d 1321
    , 1323 (Wyo. 1988) (“A person can undertake actual possession of an
    interest in real property if the interest is possessory or related to the land in such a way
    that it can be actually possessed.”).
    The district court in this case properly recognized and applied these principles, and
    ultimately concluded that Brecheen lacked a possessory interest in Suite 201. More
    specifically, the district court concluded that, “even accepting . . . Brecheen’s version of
    the facts as true, as of December 7, 2007, he was aware that [SJMC] had entered into a
    lease agreement for Suite 201 with another medical practice [Gros Ventre] effective
    14
    December 1, 2007.” Aplt. App. at 1560-61. This action on the part of SJMC, the district
    court concluded, “constitute[d] ‘affirmative action’ indicating a desire that [Brecheen]
    surrender the premises.” 
    Id. at 1561.
    In short, the district court concluded, under
    Wyoming law, Brecheen “held no more than a tenancy by sufferance” as of December 11,
    2007, and thus SJMC and Gros Ventre “were perfectly within their rights to exclude . . .
    Brecheen from Suite 201 on the morning of December 11, 2007.” 
    Id. Plaintiffs argue
    that, contrary to the conclusion reached by the district court,
    “Brecheen held a protected property interest in Suite 201, i.e., a periodic tenancy, not a
    tenancy by sufferance.” Aplt. App. at 1175. According to plaintiffs, when Boss “made
    [hand]written modifications to material terms of the Lease Agreement” on May 30, 2000,
    “the parties to th[e] [Lease Agreement] changed so that a new month-to-month lease
    agreement was created between SJMC and . . . Brecheen.” Aplt. Br. at 32. “This is also
    evidenced,” plaintiffs assert, “by the fact that, through December 2007, SJMC directed its
    correspondence and billing invoices relating to Suite 201 to ‘Roger Brecheen, M.D.’” 
    Id. (quoting Aplt.
    App. at 1227). Plaintiffs also point to the deposition testimony of Boss, in
    which he “testified that ‘month-to-month’ meant ‘the tenant [Dr. Brecheen] has the
    flexibility to leave with a month’s notice’ and if the tenant went into default, SJMC
    could evict the tenant on a month’s notice.” 
    Id. (quoting Aplt.
    App. at 1195; emphasis
    added by Appellants).
    Plaintiffs’ arguments prove to be flawed. To begin with, the evidence in the record
    does not support their assertion that the handwritten notations made by Boss on the Lease
    15
    Agreement resulted in a change to the parties to the Lease Agreement. The Lease
    Agreement, by its express terms, was between SJMC and Zadie. Nothing in Boss’s
    simple, handwritten notations could reasonably be construed as substituting Brecheen, in
    his personal capacity, for Zadie as the tenant. Indeed, Boss’s handwritten notations made
    no reference whatsoever to Zadie or Brecheen. Consequently, the record in this case
    establishes that any possessory interest in Suite 201 that arose out of the Lease Agreement
    belonged to Zadie, not Brecheen personally.1
    Furthermore, Boss’s handwritten notations were insufficient to successfully
    modify the terms of the Lease Agreement. As noted, Paragraph 2.3 of the Lease
    Agreement stated, in pertinent part, that “any further modification of this Agreement must
    be in writing and signed on behalf of Lessee and Lessor.”2 Aplee. App. at 189. Although
    Boss’s intended modifications were “in writing,” neither Boss nor Brecheen signed to
    indicate their approval of those modifications. Consequently, the intended modifications
    were not effective, and the Lease Agreement expired by its own terms effective May 30,
    2000.
    Finally, because the Lease Agreement expired by its own terms, the relationship
    between SJMC and Zadie became, by operation of Wyoming Law, a tenancy by
    1
    The district court’s order granting summary judgment in favor of Lofaro and
    Roberts makes reference to Zadie “no longer exist[ing] as a legal entity.” Aplt. App. at
    1559. Precisely how and when Zadie ceased existing is unclear from the record.
    2
    Paragraph 2.3 is consistent with Wyoming law, which requires lease renewals to
    be “in writing” and “signed by the parties thereto.” Wyo. Stat. Ann. § 34-2-129 (2013).
    16
    sufferance. Wyoming law provides that only “a tenancy by sufferance” may exist in
    Wyoming “by implication or operation of law.” Wyo. Stat. Ann. § 34-2-128 (2013).
    Consequently, “[u]pon the expiration of a term created by lease, . . . there shall be no
    implied renewal of the same, for any period of time whatever, either by the tenant holding
    over or by the landlord accepting compensation or rent for or during any period of such
    holding over.” 
    Id. Instead, “[s]uch
    holding over by the tenant and acceptance of rent by
    the landlord shall constitute only a tenancy by sufferance, with the rights, duties,
    obligations and incidents of such tenancy.”3 
    Id. And, under
    Wyoming law, “a tenancy by
    sufferance can be terminated by re-entry or any affirmative action on the part of the
    landlord which indicates that he desires the tenant to surrender the premises occupied by
    the latter.” 
    Welch, 159 P.2d at 506
    . Therefore, it was entirely appropriate for SJMC
    officials, as representatives of the landlord, to bar Brecheen from Suite 201 on and after
    December 11, 2007.
    For these reasons, we conclude that the district court did not err in granting
    summary judgment in favor of defendant Lofaro on Brecheen’s claim that Lofaro
    deprived him of a constitutionally-protected property right by excluding him from Suite
    201.
    3
    Although Brecheen suggests that a tenancy by sufferance arises only when a
    tenant wrongfully holds over past the expiration of the lease term, the Supreme Court of
    Wyoming has quite clearly indicated that “[a] tenant by sufferance is one who holds by
    permission or indulgence, without any right.” Welch v. Rice, 
    159 P.2d 502
    , 524 (Wyo.
    1945) (emphasis added); see also Hutchinson v. Taft, 
    222 P.3d 1250
    , 1255-56 (Wyo.
    2010) (noting that a tenancy at sufferance is a permissive interest and discussing limited
    circumstances under which permissive possession by tenant can become hostile).
    17
    Deprivation of liberty interest
    Brecheen also asserted a second § 1983 claim against Lofaro: that Lofaro, by way
    of “illegally remov[ing]” him from Suite 201 and contemporaneously making defamatory
    statements about him, deprived him of “his ability to practice medicine, a protected
    liberty interest.” Aplt. App. at 1168 (plaintiffs’ response to Lofaro’s motion for dismissal
    or summary judgment). The district court granted summary judgment in favor of Lofaro
    on that claim. In doing so, the district court noted that “the record reveal[ed] several
    alternate bases for granting summary judgment” in Lofaro’s favor. Aplt. App. at 1571.
    We agree.
    As an initial matter, we question whether Brecheen’s claim can survive in light of
    our conclusion that he was legally evicted from Suite 201. To be sure, our ruling on that
    issue still leaves in place Brecheen’s allegation that Lofaro made defamatory statements
    about Brecheen. But Brecheen has consistently argued that it was the combination of
    those statements and his illegal removal from Suite 201 that deprived him of a liberty
    interest. In other words, Brecheen has never argued that the defamatory statements,
    standing alone, resulted in the purported deprivation. And, in any event, our examination
    of the record persuades us that a jury could not reasonably make such a finding.
    We also conclude that Brecheen failed to present sufficient evidence to allow a
    jury to reasonably find that Lofaro acted under color of state law in making the purported
    defamatory statements. To prevail on a cause of action under § 1983, a plaintiff must
    establish “that some person has deprived him of a federal right,” and “that the person who
    18
    has deprived him of that right acted under color of state or territorial law.” Gomez v.
    Toledo, 
    446 U.S. 635
    , 640 (1980). “[T]he under-color-of-state-law element of § 1983
    excludes from its reach merely private conduct, no matter how discriminatory or
    wrongful.” Am. Mfrs. Mut. Ins. Co. v. Sullivan, 
    526 U.S. 40
    , 50 (1999) (internal
    quotation marks omitted). In her motion for summary judgment, Lofaro argued, in
    pertinent part, that Brecheen had failed to “establish[] that [she] deprived [him] of a right
    secured by the Constitution[] or federal law while acting under the color of state law.”
    Aplt. App. at 1039; see 
    id. at 1044
    (arguing that Brecheen failed to “show[] . . .
    government defamation”). Brecheen’s brief in response to Lofaro’s motion for summary
    judgment was virtually silent on this point. And, as the district court subsequently noted,
    “there [wa]s no evidence suggesting any of th[e] [defendant] state actors participated in,
    repeated, or otherwise ratified the defamatory statements allegedly made by . . . Lofaro
    about . . . Brecheen, or further that the statements were in any way connected to the
    eviction or removal of . . . Brecheen from Suite 201.”4 
    Id. at 1570.
    Accordingly, we conclude that the district court did not err in granting summary
    judgment in favor of defendant Lofaro on Brecheen’s claim that Lofaro deprived him of a
    4
    We acknowledge that the district court did not grant summary judgment in favor
    of Lofaro on this basis because it concluded that Lofaro “fail[ed] to set forth any
    meaningful argument on this issue.” Aplt. App. at 1571. Our review of Lofaro’s motion
    for summary judgment persuades us otherwise. To be sure, Lofaro’s arguments on the
    issue were not elaborate. But they were, regardless, sufficient to require some type of
    response from Brecheen and to place the issue squarely before the district court.
    19
    constitutionally-protected liberty interest.5
    III
    The judgment of the district court is AFFIRMED. Volume 5 of the supplemental
    appendix will remain sealed, as will all materials previously submitted as sealed. The
    motion to strike the supplemental appendix is DENIED.
    Entered for the Court
    Mary Beck Briscoe
    Chief Judge
    5
    In granting summary judgment in favor of Lofaro, the district court concluded
    that Brecheen had failed to “identify the kind of alteration in legal status necessary to set
    forth a cognizable liberty interest claim.” Aplt. App. at 1564. We need not reach that
    question.
    20
    

Document Info

Docket Number: 13-8059

Judges: Briscoe, Baldock, Matheson

Filed Date: 5/21/2014

Precedential Status: Non-Precedential

Modified Date: 10/19/2024