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Keywords

contractlawsuitbreach of contractdefendantdamagesappealhearingmotiondue processbad faith
contractbreach of contractdefendantdamagesappealhearingtrialmotiongood faith

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Rafferty v. Commissioner of Public Welfare, 20 Mass.App.Ct. 718, 482 N.E.2d 841

Facts

Rafferty was employed as an assistant director in the child support enforcement unit of the Department of Public Welfare. He faced issues with his supervisor regarding his performance and personal conduct, leading to a discussion about his potential resignation. After being informed of his discharge due to 'unsatisfactory work performance,' Rafferty did not request an informal hearing as allowed under Massachusetts law. He subsequently filed a lawsuit claiming deprivation of property without due process, emotional distress, and breach of contract.

Rafferty was employed by the Department of Public Welfare (department) as assistant director in charge of field operations for the department's child support enforcement unit (the unit). He was a provisional civil service appointee.

Issue

Did Rafferty have a constitutionally protected property interest in his employment, and was he entitled to damages for breach of contract and emotional distress?

The Appeals Court, Cutter, J., held that: (1) departmental memorandum outlining department's policy on employee discipline and procedures to be followed in disciplinary matters did not afford provisional employee constitutionally protected property interest in continued employment with department; (2) employee who failed to pursue administrative remedy of informal hearing on discharge was not entitled to court review by action for breach of contract; (3) evidence was insufficient to sustain employee's burden of proving that discharge violated any implied obligation of good faith; and (4) employee was not entitled to damages for emotional distress.

Rule

A provisional employee does not have a constitutionally protected property interest in continued employment, and failure to pursue available administrative remedies precludes court review of employment termination.

We think the trial judge concluded wrongly that ER–3 afforded Rafferty a constitutionally protected interest in further employment.

Analysis

The court determined that the departmental memorandum (ER-3) did not create a constitutionally protected property interest for Rafferty, as it primarily applied to tenured employees. Additionally, Rafferty's failure to seek an informal hearing under Massachusetts law meant he could not claim breach of contract in court. The evidence did not support a claim of bad faith in his termination, nor did it substantiate his emotional distress claim.

The court determined that the departmental memorandum (ER-3) did not create a constitutionally protected property interest for Rafferty, as it primarily applied to tenured employees.

Conclusion

The Appeals Court reversed the lower court's judgment, ruling in favor of the defendants on all counts, stating that Rafferty was not entitled to damages.

The judgments for Rafferty are reversed. Judgment (on all counts) is to be entered for each defendant.

Who won?

The defendants (Commissioner, unit director, and Commonwealth) prevailed because the court found that Rafferty lacked a protected property interest and failed to exhaust administrative remedies.

The Appeals Court reversed the decision, concluding that Rafferty did not have a constitutionally protected property interest in his employment and that he failed to pursue available administrative remedies.

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