Justia Government & Administrative Law Opinion Summaries

Appellant Richard Freemantle challenged the legality of a severance agreement between Anderson County and Respondent Joey Preston, a former Anderson County administrator. Respondent was hired as County Administrator in 1998. His contract with the County provided for an initial employment term of three years, with an annual renewal in the absence of written notice not to renew the contract. The November 2008 election changed the "balance of power" on the Anderson County Council. One of the final acts of the outgoing Council was to execute a severance agreement for Respondent that provided him over one million dollars in benefits which was "well in excess of that provided in his employment contract." The severance agreement also included a release provision stating that the County would never seek legal redress against Respondent for any claims relating to his employment with the County. Appellant filed a complaint against Respondents on behalf of himself and all others similarly situated seeking monetary relief and various declaratory judgments. Specifically, Appellant alleged that Council's vote approving the severance agreement was invalid. In addition, Appellant contended the successor Anderson County Council was not bound by the severance agreement. Relief was sought pursuant to various causes of action, including covin and collusion, breach of fiduciary duties, illegal gift of county funds, misfeasance, malfeasance, conspiracy, violations of public policy, and violations of FOIA, The trial court dismissed the action finding that Appellant's status as a taxpayer did not confer standing to challenge the severance agreement. The Supreme Court agreed with the circuit court in most respects concerning Appellant's lack of standing. However, the Court disagreed with the trial court "only insofar as the FOIA claim is concerned, for traditional standing principles do not apply under FOIA because the legislature has conferred standing on any citizen to enforce the Act's provisions." Accordingly, the Court affirmed in part, reversed in part, and remanded the case for further proceedings.

The State Department of Labor and Industry appealed a district court's order that reversed the Department's decision regarding Petitioner Sheila Callahan & Friends, Inc. (SC&F). SC&F, a radio broadcasting company entered into a one-year contract with Joni Mielke. During the term of employment, SC&F evaluated Mielke as being an excellent radio personality and announcer but as underperforming other responsibilities because she either did not want to do them or preferred announcing-related duties. Mielke elected not to renew her contract with SC&F, and on an exit interview form, Mielke indicated her reason for leaving was that she "quit." After Mielke left her employment with SC&F, she was hired by another radio station. After a brief employment with this subsequent employer, she was laid off and filed for unemployment benefits in October 2009. The Department of Labor sent a Notice of Chargeability Determination to SC&F assessing a pro rata share of the costs of Mielke’s unemployment insurance benefits to SC&F’s experience rating account. The Department administratively determined that Mielke was employed for SC&F on a contract basis during her base period of employment and that SC&F’s account was chargeable for a portion of benefits drawn by Mielke. SC&F requested a redetermination, arguing that Mielke had voluntarily left her employment. The Department issued a Redetermination affirming the initial Determination. An administrative hearing was then conducted by telephone; the hearing officer determined that Mielke neither voluntarily quit nor was discharged for misconduct and affirmed the decision to charge SC&F’s account. On appeal, the Department argued the District Court improperly failed to defer to the Board’s findings of facts. Upon review, the Supreme Court concluded that the error of the Board was primarily premised upon application of legal standards, in the nature of a conclusion of law. Given the inapplicability of the imputation rules to the situation here, the District Court properly concluded that the evidence did not support the Board’s determination that Mielke’s work separation was involuntary.

Plaintiff Kenneth Van Dunk and his wife filed this suit in the Law Division after he suffered serious injuries in a trench collapse at a construction site workplace. Following discovery, the trial court granted summary judgment to the employer-defendants Reckson Associates Realty Corporation and James Construction Company, Inc. Based on its assessment of the totality of circumstances, the court concluded that plaintiff did not demonstrate an intentional wrong within the meaning of the Act, notwithstanding that the employer was issued a federal Occupational Safety and Health Administration (OSHA) "willful violation" citation as a result of the incident. The Appellate Division reversed the trial court’s grant of summary judgment to the defendants, and returned the matter to the trial court. The Supreme Court granted the Defendants' petition for certification seeking review of that judgment. Upon review, the Supreme Court concluded that the defendants' conduct fell short of an intentional wrong creating a substantial certainty of bodily injury or death. Therefore the workers' compensation statutory bar against common-law tor actions precluded this suit, and the appellate court's ruling was reversed.

An employee of a tribal enterprise sought to invoke the jurisdiction of the Oklahoma Workers' Compensation Court. Petitioner John A. Waltrip fell on a patch of ice while working as a surveillance supervisor at a casino and injured primarily his right shoulder. Petitioner initially obtained treatment from his personal physician but Tribal First, the employer Osage Million Dollar Elm Casino's claim administrator, sent him to an orthopedic specialist who recommended surgery in 2009. Petitioner filed a claim in the Oklahoma Workers' Compensation Court on July 17, 2009, seeking medical treatment and temporary total disability. The Casino and Insurer Hudson Insurance Company asserted that court lacked jurisdiction based on the tribe's sovereign immunity. A hearing was held solely on the jurisdictional issue; the Workers' Compensation Court denied jurisdiction and dismissed the claim holding that the tribe enjoyed sovereign immunity and that the provisions of the tribe's workers' compensation policy did not subject the insurance company to liability for claims in state court. The Court of Civil Appeals affirmed and the Supreme Court granted certiorari review. Upon review, the Supreme Court held that: (1) the tribe enjoyed sovereign immunity and was not therefore subject to the jurisdiction of the Oklahoma Workers' Compensation Court; and (2) the workers' compensation insurer did not enjoy the tribe's immunity and was estopped to deny coverage under a policy for which it accepted premiums computed in part on the employee's earnings.

The National Labor Relations Board (NLRB) sought enforcement of an order finding Downtown BID (the Company), a non-profit business improvement corporation, committed an unfair labor practice when it refused to bargain with the International Association of Machinists and Aerospace Workers (the Union) following an employee election. The Company contended that agents or supporters of the Union unlawfully threatened and harassed employees and otherwise engaged in electioneering that interfered with the fairness and outcome of the election. The NLRB overruled these objections and certified the Union. The D.C. Circuit Court of Appeals granted the NLRB's application, holding (1) the NLRB's findings and conclusions were supported by substantial evidence and consistent with NLRB precedent; and (2) therefore, the Company's subsequent refusal to bargain was therefore unlawful.

Plaintiff Frank Hall, a longtime employee of the Agency of Transportation (AOT), sued the agency in 2007, alleging discrimination on the basis of a physical disability and retaliation for his having filed a workers' compensation claim. The jury found no disability discrimination, but awarded Plaintiff damages based upon its finding that the State had retaliated against him as alleged. On appeal, the State argued that: (1) Plaintiff's retaliation claim was precluded by a September 2003 Stipulation and Agreement signed by Plaintiff and AOT releasing the State from liability for any and all claims associated in any way with Plaintiff's reclassification and transfer stemming from hostile work environment allegations against him; (2) Plaintiff's retaliation claim was not supported by any causal connection linking his employment reclassification and transfer with his having filed a workers' compensation claim; (3) evidence of a video surveillance of Plaintiff connected with a second workers' compensation claim was insufficient as a matter of law to support his retaliation claim and the resulting damages award; and (4) even if the record supported his retaliation claim, the State's liability is limited to $250,000, as set forth in Vermont's Tort Claims Act during the relevant time period. Plaintiff cross-appealed, challenging the trial court's denial of his request for post-judgment interest and attorney's fees. Upon review, the Supreme Court vacated the judgment against the State and remanded the matter for the trial court to rule on the potentially determinative issue of the scope of the September 2003 release.

Appellant Timothy Daniels appealed a superior court's grant of summary judgment in favor of Defendants Narraguagus Bay Health Care Facility and North Country Associates, Inc. Appellant contended that the court erred in concluding that Narraguagus and North Country were entitled to judgment as a matter of law on his disability discrimination and retaliation claims made pursuant to Maine's Human Rights Act. Appellant suffered a work-related injury to his right shoulder in 2007 and thereafter was given work restrictions by his physician that prevented him from performing all of the work duties he had previously handled. In 2008, Appellant underwent surgery and then began a leave of absence. A few months later, Appellant notified his employer that he was applying for more leave at her insistence. In that letter, Appellant also reported that he had been cleared for light duty work, accused his supervisor of refusing to accommodate his disability, and asked for light duty work. No work was afforded to Appellant as a result of that letter. Appellant suffered another work-related injury to his right shoulder in 2009, and, although he did not lose any time from work as a result of that injury, he was restricted to modified duty for the next three months. During that period Appellant was disciplined for performance issues. Early in November 2009, when Daniels no longer had any work restrictions, a new Narraguagus administrator gave Appellant a performance improvement plan for failing to complete some tasks at all and failing to complete other tasks on time. In November, 2009, in response to the complaint that he filed in 2008, the Commission issued Appellant a right-to-sue letter pursuant to the Human Rights Act. When state regulators visited Narraguagus to conduct a licensing inspection, they uncovered issues that resulted in fines to the facility. Narraguagus blamed Appellant for the negative inspection and terminated his employment on January 29, 2010. After his termination, Appellant filed a two-count complaint against Narraguagus and North Country. On appeal, Appellant advanced two theories of liability against North Country: (1) that it can be liable because it is part of an integrated enterprise with Narraguagus, and (2) that it acted in Narraguagus’s interest in discriminating against him. Finding multiple issues of disputed facts regarding North Country's involvement in the actions that Appellant claimed constituted discrimination and retaliation, the Supreme Court vacated the grant of summary judgment in favor of Defendants, and remanded the case for further proceedings.

In August 2004, Plaintiff-Appellant Gwyniece Hutchins, a letter carrier with the United States Postal Service, stepped on an improperly fitted manhole cover maintained by the Town of Ninety Six, South Carolina. The manhole cover flipped up, and Plaintiff fell into the manhole, sustaining serious injuries. Because she was injured in the course of her duties as a United States Postal Service employee, she filed a claim for workers’ compensation under the Federal Employees' Compensation Act (FECA). The Department of Labor’s Office of Workers’ Compensation Programs accepted Plaintiff's claim as covered by FECA and paid her lost wages and medical benefits. In 2007, Plainitff accepted an offer of judgment arising from a South Carolina state court action that she brought against the Town. The Department of Labor asserted that it was entitled to recover a portion of that judgment. Plaintiff opposed the Department of Labor's assertion, arguing that the Town was not a "person" under 5 U.S.C. sections 8131 and 8132 and that if 5 U.S.C. section 8131 was construed to allow such a claim, it would be unconstitutional. The Office of Workers' Compensation rejected Plaintiff's arguments and determined that the Department of Labor was entitled to reimbursement. Plaintiff paid the sum but appealed the Office of Workers’ Compensation's decision to the Employees' Compensation Appeals Board. The Appeals Board affirmed. Because the Fourth Circuit agreed with the Department of Labor that the Town qualified as a "person other than the United States," the Court upheld the district court's determination that Plaintiff reimburse the Department of Labor from her judgment.

When calculating the income benefit for he claimant's work-related injury, the ALJ apportioned sixty-three percent of the twenty-one percent permanent impairment rating that existed at maximum medical improvement (MMI) to a pre-existing active condition, which was non-compensable. The court of appeals affirmed the workers' compensation board's decision to vacate the calculation on the ground that the ALJ should have subtracted the pre-existing active impairment rating that existed immediately before the injury from the impairment rating that existed at MMI and based the income benefit on the remainder. The employer appealed, arguing that nothing prevented the ALJ from apportioning the impairment rating at MMI based on permissible inferences drawn from the medical evidence. The Supreme Court affirmed, holding that the board and court of appeals applied the correct methodology for determining the impairment rating upon which to base income benefits.

Appellee received temporary total disability compensation (TTC) for a period of a year and a half during which time Appellee also helped his wife with her business. Appellee was not paid for his services. Appellant Industrial Commission of Ohio learned of these activities, determined that they constituted "work," and concluded that TTC should not have been paid. Accordingly, the TTC award was vacated and overpayment was declared. In addition, the Commission found McBee had committed fraud by submitting disability paperwork during the relevant time period, in which Appellee certified he was not working. The court of appeals overturned the finding of fraud after concluding that the evidence did not prove McBee knew that his unpaid activities for his wife's company constituted "work" for purposes of TTC eligibility. The Supreme Court affirmed, holding that there was no evidence that McBee knowingly misled the Commission because there was no evidence McBee knew his unpaid activities constituted work that would preclude TTC.