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Cheatham v. Vir. Alcoholic Beverage Control

United States Court of Appeals, Fourth Circuit
Aug 1, 1974
501 F.2d 1346 (4th Cir. 1974)

Opinion

No. 74-1243.

Argued June 3, 1974.

Decided August 1, 1974.

Edwin M. Young, Richmond, Va., for appellant.

Henry M. Massie, Jr., Asst. Atty. Gen. of Virginia (Andrew P. Miller, Atty. Gen. of Virginia, on brief), for appellee.

Appeal from the United States District Court for the Eastern District of Virginia.

Before HAYNSWORTH, Chief Circuit Judge, and WINTER and CRAVEN, Circuit Judges.


Milton O. Cheatham brought suit versus the Virginia Alcoholic Beverage Control Board in the United States District Court for the Eastern District of Virginia alleging that his discharge from employment for failure to make reasonable provision for payment of his just debts was in violation of Section 304(a) of the Consumer Credit Protection Act, 15 U.S.C. § 1674(a). The district court dismissed the action on the ground that the Board, an agency of the state, was immune from suit under the Eleventh Amendment in the absence of a showing that it had consented to suit. Cheatham has appealed.

Section 304(a) provides:

No employer may discharge any employee by reason of the fact that his earnings have been subjected to garnishment for any one indebtedness.

While appellant raises interesting questions as to whether the state has waived either explicitly or constructively its Eleventh Amendment immunity and whether a private cause of action should be implied under the Consumer Credit Protection Act, we find decisions of these questions unnecessary to the disposition of the case.

See Va. Code §§ 4-12, 2.1-223.1 and 8-752. See also Edelman v. Jordan, 415 U.S. 651, 94 S.Ct. 1347, 39 L.Ed.2d 662, 681 n. 19 (1974).

Compare Parden v. Terminal R. Co., 377 U.S. 184, 84 S.Ct. 1207, 12 L.Ed.2d 233 (1964) with Employees of the Dep't. of Public Health Welfare v. Dep't. of Public Health Welfare, 411 U.S. 279, 93 S.Ct. 1614, 36 L.Ed.2d 251 (1973). See also Dawkins v. Craig, 483 F.2d 1191 (4th Cir. 1973).

See Simpson v. Sperry Rand Corp., 350 F. Supp. 1057, 1059 (W.D.La. 1972). vacated 488 F.2d 450 (5th Cir. 1973). We specifically left the question open. Western v. Hodgson, 494 F.2d 379 (4th Cir. 1974). See generally Note. The Implication of a Private Cause of Action Under Title III of the Consumer Credit Protection Act. 47 So.Cal.L. Rev. 383 (1974).

Even if we assume that the Act created a cause of action for private parties and the Board was amenable to suit in federal court under the Eleventh Amendment the complaint is defective on its face. Section 304(a) of the Act protects an employee from discharge where his earnings have been garnished "for any one indebtedness." It does not protect him where there have been, as here, multiple garnishments based on more than a single indebtedness. Nor does the Act purport to wipe the slate clean by defining "garnishments" to mean "garnishments after July 1, 1970." Brennan v. General Telephone Co. of Florida, 488 F.2d 157 (5th Cir. 1973). Since the complaint does not state a claim upon which relief could be granted, the district court's dismissal was proper.

Such an interpretation, here applied, would mean that Cheatham could not be discharged since the two garnishments after July 1, 1970, against his earnings were apparently for the same $150 debt. The Wage-Hour Administrator has adopted this interpretation. Opinion Letter No. 1136 (No. WH89), Oct. 26, 1970, CCH Lab.L.Rep. ¶ 30,703, but we agree with the Fifth Circuit's decision in the General Telephone Co. case, supra.

Affirmed.


Summaries of

Cheatham v. Vir. Alcoholic Beverage Control

United States Court of Appeals, Fourth Circuit
Aug 1, 1974
501 F.2d 1346 (4th Cir. 1974)
Case details for

Cheatham v. Vir. Alcoholic Beverage Control

Case Details

Full title:MILTON O. CHEATHAM, APPELLANT v. VIRGINIA ALCOHOLIC BEVERAGE CONTROL…

Court:United States Court of Appeals, Fourth Circuit

Date published: Aug 1, 1974

Citations

501 F.2d 1346 (4th Cir. 1974)

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