Sandra J. Knudson v. City of Ellensburg, Lawrence M. Loveless and Jane Doe Loveless, and the Marital Community Composed Thereof

Sandra Knudson appeals a summary judgment in favor of the City of Ellensburg (City) and its Chief of Police Larry Loveless of her due process claims arising from the City’s cancellation without a hearing of her disability medical benefit. The district court found Knudson lacked a property interest in the benefit and therefore had no right to due process. We reverse and remand.

BACKGROUND

Knudson began working as a police officer for the City in 1968. In 1975 she applied for and was awarded disability retirement under the Law Enforcement Officers’ and Fire Fighters’ Retirement System Act (LEOFF), Wash.Rev.Code §§ 41.26.010 to -.921. In accordance with LEOFF, the State of Washington paid her a disability pension and the City paid for her medical expenses. In August 1981 she was convicted of a narcotics felony. After determining that the conviction would bar Knudson from further employment, the City discharged her from the police force effective May 1, 1982. Knudson notified the Civil Service Examiner that she did not intend to appeal her discharge. Without a hearing the City found that Knudson’s status as a former member of the force relieved it of its duty to pay the medical…