Facts

Kourosh Kenneth Hamidi and similarly situated state employees filed a section 1983 lawsuit against the Service Employees International Union and the California State Controller over the procedures used to collect "agency fees" from nonmember State employees.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended that defendant's "opt-out" provision for collecting agency fees unconstitutionally burdened their right to free speech. Plaintiffs contended that allowing the union to collect full dues in the absences of a formal objection compels them to speak in favor of the union's political message against their will. They sought retrospective relief in the form of reimbursement of all their prior paid dues.

DEFENDANTS' CONTENTIONS: The Union Defendant contended that its "opt-out" provision was legal at the time the fees were collected, under subsequently-overruled Supreme Court precedent. The Union Defendant contended that because it relied in good faith on controlling law in effect when the fees were collected, it was entitled to a defense to the 1983 lawsuit. The State Controller contended that, due to the Eleventh Amendment, she could not be held liable for money damages.

Result

The court granted the State Controller's motion to dismiss. The court also granted the Union Defendant's motion for summary judgment because the Union's good faith reliance on subsequently-overruled Supreme Court precedent shielded it from having to pay retrospective money damages.