John Heineke v. Santa Clara University ( 2018 )


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  •                            NOT FOR PUBLICATION                           FILED
    UNITED STATES COURT OF APPEALS                       MAY 25 2018
    MOLLY C. DWYER, CLERK
    U.S. COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    JOHN M. HEINEKE,                                No.    17-16876
    Plaintiff-Appellant,            D.C. No. 5:17-cv-05285-LHK
    v.
    MEMORANDUM*
    SANTA CLARA UNIVERSITY and
    QIANYUE EVELYN ZHANG,
    Defendants-Appellees.
    JOHN M. HEINEKE,                                No.    17-17408
    Plaintiff-Appellant,            D.C. No. 5:17-cv-05285-LHK
    v.
    SANTA CLARA UNIVERSITY and JANE
    DOE,
    Defendants-Appellees.
    Appeal from the United States District Court
    for the Northern District of California
    Lucy H. Koh, District Judge, Presiding
    Argued and Submitted March 14, 2018
    San Francisco, California
    *
    This disposition is not appropriate for publication and is not precedent
    except as provided by Ninth Circuit Rule 36-3.
    Before: BERZON and BEA, Circuit Judges, and BERG,** District Judge.
    Plaintiff John M. Heineke (Heineke), a long-serving tenured professor at
    Santa Clara University, appeals the district court’s denial of a preliminary injunction
    to lift his suspension from teaching and order his reinstatement. Heineke sought this
    injunction after the university suspended him pending the results of an internal
    investigation of a sexual harassment complaint by a former student. Along with his
    claims for injunctive relief, Heineke brought suit for wrongful termination under the
    Age Discrimination in Employment Act (ADEA), 
    29 U.S.C. § 623
    ; due process
    violations under 
    42 U.S.C. § 1983
    ; intentional infliction of emotional distress;
    negligent infliction of emotional distress; breach of contract; breach of the covenant
    of good faith and fair dealing; and defamation.
    The district court denied the preliminary injunction request,1 resting its
    decision solely on a finding that Heineke had not established a substantial likelihood
    **
    The Honorable Terrence Berg, United States District Judge for the Eastern
    District of Michigan, sitting by designation.
    1
    Heineke appealed the denial of his preliminary injunction motion. Dkt. 13 (Case
    No. 17-16876). While that appeal was pending, the university president affirmed
    the initial finding that Heineke had sexually harassed a former student and
    approved his termination. Heineke then filed a second motion for preliminary
    injunction to enjoin his termination as well as an internal appeal of the president’s
    decision to the faculty judicial board. Pending the outcome of that appeal, Heineke
    remained on paid suspension. The district court denied Heineke’s second
    preliminary injunction motion on the same grounds as the first, noting that his
    “status has not changed since his first motion for a temporary restraining order or
    2                                    17-16876
    of irreparable harm. The district court failed to address the additional preliminary
    injunction factors of likelihood of success on the merits, balance of the hardships
    between the parties absent an injunction, and the public interest in granting the
    injunction. Winter v. Nat. Res. Def. Council, Inc., 
    555 U.S. 7
     (2008). We review the
    district court’s denial of a preliminary injunction for abuse of discretion. See Pom
    Wonderful LLC v. Hubbard, 
    775 F.3d 1118
    , 1123 (9th Cir. 2014). We reverse and
    remand for a complete application of the four-part preliminary injunction test.
    The district court concluded that Heineke’s evidence of reputational damage,
    loss of opportunity to pursue his chosen profession, and emotional distress did not
    support a showing of irreparable harm. The district court read Sampson v. Murray,
    
    415 U.S. 61
     (1974), and this Circuit’s decisions applying Sampson, as rejecting
    “assertions of irreparable harm stemming from lost income, reputational damage,
    and psychological injury” that arise from an adverse employment decision. Citing
    Sampson, 
    415 U.S. at
    89–93 & n.68; Hartikka v. United States, 
    754 F.2d 1516
     (9th
    Cir. 1985); Kennedy v. Sec’y of Army, 
    191 F. 3d 460
     (9th Cir. 1999). In Sampson,
    the Court acknowledged that an extreme case of lost income or reputational harm
    might constitute irreparable injury, but noted that generally “insufficiency of
    savings or difficulties in obtaining other employment – external factors common to
    preliminary injunction.” Heineke again appealed. Dkt. 7 (Case No. 17-17408). His
    two appeals are consolidated.
    3                                       17-16876
    most discharged employees and not attributable to any unusual actions relating to
    the discharge itself – will not support a finding of irreparable injury, however
    severely they may affect a particular individual.” Sampson, 
    415 U.S. at
    92 n. 68.
    The district court erred when it interpreted this language in Sampson to
    create a per se rule for all employment cases. Sampson specifically did not
    foreclose the possibility that reputational damage and emotional distress may
    represent irreparable harm.
    The district court also erred by failing to address Chalk v. U.S. Dist. Court
    Cent. Dist. of Cal., 
    840 F.2d 701
     (9th Cir. 1988), in which we upheld an injunction
    based on the finding that a school district’s decision to reassign a teacher to
    administrative-only duties because of his AIDS diagnosis caused irreparable harm
    in the form of loss of job satisfaction and emotional distress. Chalk, 
    840 F.2d at
    709–10. Heineke has proffered evidence that he will experience emotional distress
    and loss of job satisfaction as a result of his suspension. The district court therefore
    abused its discretion by interpreting Sampson to create a per se rule for all
    employment cases—that reputational damage, lost opportunity, and emotional
    distress caused by a suspension or termination cannot constitute irreparable
    harm—and by ignoring the impact of binding, relevant precedent from Chalk.
    United States v. Hinkson, 
    585 F.3d 1247
     (9th Cir. 2009).
    4                                      17-16876
    Moreover, the district court did not address all of the elements that must be
    shown in order to support a preliminary injunction. In Chalk, we noted first that the
    plaintiff demonstrated a likelihood of success on the merits of his Rehabilitation
    Act claims, and second that the injuries of reputational harm, loss of opportunity,
    and emotional distress resulting from that (likely provable) discrimination were the
    type of non-compensable injury the law was designed to prevent. 
    840 F.2d at
    704–
    10. Chalk therefore suggests that in the employment discrimination context the
    likelihood of success on the merits may inform the irreparable harm analysis.
    Without any analysis regarding the likelihood of Plaintiff’s success on the merits—
    including whether his suspension was discriminatory under the ADEA—the
    district court could not evaluate what impact the strength of Plaintiff’s
    discrimination claims had on the likelihood he would suffer an irreparable, non-
    compensable injury absent an injunction.
    On remand, the district court is therefore instructed to complete a full
    analysis of the preliminary injunction factors to decide whether to issue the
    preliminary injunction.
    The district court’s order denying Plaintiff’s preliminary injunction motion
    is thus REVERSED and REMANDED for consideration of all preliminary
    injunction factors.
    5                                     17-16876