“Stigma-Plus” Procedural Due Process Violations

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7^th Circuit Court of Appeals

Case Name: Suzy Martin v. Susan Haling

Case No.: 22-3108

Officials: Flaum, Easterbrook, and Brennan, Circuit Judges.

Focus: “Stigma-Plus” Procedural Due Process Violations

Suzy Martin owns and leads Smart Elevators Co., a certified minority- and woman-owned elevator service and repair firm. Initially, the company primarily served the State of Illinois and the City of Chicago. However, a whistleblower complaint alleged that Martin and her company were involved in a bribery and kickback scheme with a University of Illinois Chicago employee. Consequently, the Office of the Executive Inspector General for the Agencies of the Illinois Governor (OEIG) launched an investigation. They found Martin, Smart Elevators, and the University employee guilty of violating Illinois ethics law and University policy, recommending that the University cut ties with Martin and her company.

Following the report, both the State and City terminated their contracts with Martin and Smart Elevators, resulting in significant financial losses for the company. In response, Martin sued various State and City entities and officials under 42 U.S.C. § 1983, alleging “stigma-plus” procedural due process violations under the Fourteenth Amendment. The district court dismissed her amended complaint with prejudice.

The Seventh Circuit upheld the district court’s ruling. It determined that Martin’s profession was operating an elevator service and repair business, not solely serving the State or City. Despite losing contracts with them, Martin retained her ability to operate her business, as evidenced by Smart Elevators securing a contract with the Department of Justice in 2021. Therefore, the court found no infringement on Martin’s occupational liberty rights.

Affirmed.

Decided 03/01/24

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