Elliott v. Bd. of School Trustees of Madison Consolidated Schools

Dist. Ct. did not err in granting plaintiff-tenured teacher’s motion for summary judgment in section 1983 action alleging that 2012 Indiana statute that allowed defendant to lay off plaintiff instead of non-tenured teachers violated Contract Clause of U.S. Constitution, where U.S. Supreme Ct. in Brand, 303 U.S. 95, previously found that 1927 Indiana teacher tenure statute created contractual rights protected by Contracts Clause. Indiana courts had previously held that school district must retain qualified tenured teachers over non-tenured teachers, and Dist. Ct. could properly find that 2012 statute violated Contract Clause when applied retroactively to plaintiff who had obtained tenure prior to enactment of 2012 statute, where: (1) Indiana teacher tenure law created enforceable contract that did not allow defendant to lay off any teacher it pleased during reduction in force; (2) 2012 statute impaired plaintiff’s contract with defendant; and (3) instant impairment was substantial. Fact that annual teacher contract could change salary and hours did not allow defendant to change degree of job security for tenured teachers.