Bailets v. Pennsylvania Turnpike Commission

123 A.3d 300, 633 Pa. 1, 40 I.E.R. Cas. (BNA) 971, 2015 Pa. LEXIS 1995, 2015 WL 5104623
CourtSupreme Court of Pennsylvania
DecidedAugust 31, 2015
Docket12 MAP 2014
StatusPublished
Cited by35 cases

This text of 123 A.3d 300 (Bailets v. Pennsylvania Turnpike Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bailets v. Pennsylvania Turnpike Commission, 123 A.3d 300, 633 Pa. 1, 40 I.E.R. Cas. (BNA) 971, 2015 Pa. LEXIS 1995, 2015 WL 5104623 (Pa. 2015).

Opinion

OPINION

Justice EAKIN.

In this appeal, we consider the Commonwealth Court’s decision to grant summary judgment and deny relief under the Whistleblower Law, 43 P.S. §§ 1421-1428. 1 We reverse and remand for further proceedings.

For purposes of a summary judgment motion, the record includes the pleadings, depositions, answers to interrogatories, admissions, and affidavits. Pa.R.C.P. 1035.1(1), (2). The record here shows appellant Ralph Bailets was employed by the Pennsylvania Turnpike Commission from 1998 to 2008. Appellant achieved “outstanding” and “commendable” performance ratings while employed as the Commission’s manager of financial reporting and systems. Appellant’s Brief in Opposition to Appellees’ Motion for Summary Judgment, at 30 n. 69. During this time, appellant frequently complained that he *4 observed improprieties and wasteful practices regarding various matters, including a Commission computer systems contract with Ciber, Inc., EZPass discounts, politically motivated personnel actions, and the use of multiple, unnecessary external investment managers. Appellant’s job title and responsibilities were changed in June, 2008, he was removed from an additional position as assistant secretary-treasurer around the same time, and his employment by the Commission was ultimately terminated in November, 2008.

Believing these adverse employment actions were retaliation for his reports of wrongdoing and waste at the Commission, appellant filed a complaint in the Commonwealth Court’s original jurisdiction, alleging a single claim under the Whistle-blower Law, against the Commission; Anthony Q. Maun, the Commission’s director of accounting; and Nikolaus H. Griesh-aber, the Commission’s chief financial officer (collectively, appellees). At relevant times, Maun was appellant’s supervisor at the Commission, and Grieshaber was appellant’s coworker, who later became appellant’s superior.

Specifically, with regard to the Ciber computer systems contract, appellant alleged he made numerous oral and written reports to Maun and Grieshaber about the politically connected vendor’s improper access to insider information for a Request for Proposal (RFP) for the creation of a computerized financial reporting system, which was not equally available to other bidding vendors. Complaint, ¶ 12. In response to appellant’s criticism of the selection process, Maun allegedly stated, “You should not say anything about it,” and warned him not to “make any waves or your job will be in jeopardy.” Id., ¶ 10; Deposition of Ralph M. Bailets, 5/10/18, at 41, 48, 89-91, 97. Appellant further claimed that, when Ciber was awarded a $62 million contract and began its work, he noted deficiencies in performance and initiated a series of meetings with Maun to discuss the problems, but there was no action in response to his complaints. Complaint, ¶¶ 18-16. Appellant also informed Maun about deficiencies in experience and training by Ciber’s consultants, and his concern that it appeared Ciber was angling to get another contract for supplemental *5 training, or “knowledge transfer.” Bailets Deposition, 7/24/13, at 303-04, 326; id., ¶ 19-20. Ciber did get another contract for knowledge transfer (valued at an additional $20 million), and when appellant complained that the contracted-for knowledge transfer never occurred, Maun reminded appellant he was jeopardizing his job by criticizing Ciber. Bailets Deposition, 5/10/13, at 116-17; id., 7/24/13, at 191-94, 326-27, 420-24.

Appellant also talked with Grieshaber about his Ciber concerns and, according to appellant, Grieshaber agreed with appellant, but told him to “tread lightly” with Ciber. Id., 7/24/13, at 275. According to appellant, when Grieshaber was promoted to CFO, he developed “amnesia” on the topic, their relationship changed, Grieshaber eventually demoted appellant, and ultimately played a role in firing him. Id., 5/10/13, at 62-66, 88-89, 92-93, 104-06, 110-11. After his termination, appellant applied to the Commission three times for open positions for which he was qualified, but there was no response to his applications. Id., at 16-21; Complaint, ¶¶ 48-50.

During his time at the Commission, appellant also complained to Maun and Grieshaber about a so-called “discounting scheme” engaged in by the largest EZPass customers, which involved these large organizations getting deep discounts (20% of their toll charges) and then acting as suppliers of the discounted transponders to smaller organizations. Bailets Deposition, 5/10/13, at 147, 151; Deposition of Anthony Q. Maun, 3/14/11, at 86, 90, 91. Appellant told Maun there was a resulting potential loss of millions of dollars in toll revenue. Complaint, ¶¶ 30, 31, 34. In addition, appellant discussed with Maun and Grieshaber his concerns about a policy by which Commissioners would “create, post and fill” staff positions in a single executive session, in derogation of competition and the regular merit selection process; appellant claims he and Grieshaber noted various political appointees who were hired at the Commission in this manner. Id., ¶ 35; Bailets Deposition, 7/24/13, at 202-03, 208. Relatedly, appellant discussed with both Maun and Grieshaber the Commission’s use of too many politically connected external investment managers for Commission treasury funds which, in appellant’s opinion, was *6 unnecessary and a waste of money. Complaint, ¶ 40; Bailets Deposition, 7/24/13, at 214-16, 223, 225, 240, 351, 413-15.

Appellees filed motions for summary judgment claiming appellant was fired from the Commission along with 14 other individuals, not because he was a whistleblower, but “in response to the poor economy, declining traffic and revenue numbers and in an organization-wide effort to reduce expenses.” Appellees’ Memorandum of Law in Support of Motion for Summary Judgment, at 2.

In an unreported, single-judge opinion, Senior Judge Friedman held the decision to terminate appellant was “a management discretionary action, motivated by legitimate employer objectives.” Bailets v. Pennsylvania Turnpike Comm’n., No. 265 MD 2009, unpublished memorandum at 11 (Pa.Cmwlth. filed February 4, 2014). Specifically, the court held the allegations regarding Grieshaber did not support a Whistleblower claim because appellant did not report wrongdoing or waste to Grieshaber while he was his supervisor. Id., at 7-8. With regard to Maun, the court determined there was no report of “wrongdoing,” which it defined as wrongdoing by the employer or a violation of a law or code of conduct the employer is charged to enforce for the good of the public. Id., at 8 (citing Sea v. Seif, 831 A.2d 1288, 1291 (Pa.Cmwlth.2003)).

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Bluebook (online)
123 A.3d 300, 633 Pa. 1, 40 I.E.R. Cas. (BNA) 971, 2015 Pa. LEXIS 1995, 2015 WL 5104623, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bailets-v-pennsylvania-turnpike-commission-pa-2015.