OPINION BY
Senior Judge KELLEY.
Linda J. Bartholomew petitions for review of Order No. 1195 of the State Eth
ics Commission (Commission) finding that she violated Section 1103(a) of the Public Official and Employee Ethics Act (Ethics Act)
while serving as director of the Forest Warren Counties Department of Human Services (DHS) by using the authority of her office to hire her daughter, Sherrie Flannery, to provide computer training services to DHS personnel for the period from July 1, 1994, forward, and imposing restitution for the amount of compensation received by Flannery for these services.
We affirm in part, and reverse in part.
In 1979, Forest and Warren Counties combined the human services departments of each into DHS. One director oversees the associate directors of the several DHS programs, and three commissioners of Forest and Warren Counties compose a Governing Board which oversees DHS. Bartholomew was DHS director from 1991 to 1999.
Although most DHS positions are civil service positions, DHS used the services of contractual employees in its Information Systems Department to assist with the implementation of computer operations. As director, Bartholomew had the responsibility of filling these contractual positions. On April 1, 1993, Bartholomew approved the hiring of Flannery, and the salary to be paid, for one of these contractual positions with DHS. The contract of Flannery’s employment was effective April 1, 1993 through June 30, 1993 at a rate of pay of $15.00 per hour. As DHS director, Bartholomew renewed Flannery’s annual employment contract for the period of July of 1993 through June of 1998 at the same rate of pay.
From July of 1994 forward, Flannery received $4,927.50 in compensation from DHS based on her contract salary. Flannery also received the payment of expenses incurred while providing her contract services.
On May 12, 2000, the Commission issued an Investigative Complaint which charged Bartholomew with the instant violation of Section 1103(a) of the Ethics Act.
The
complaint made the following relevant findings of fact:
95. The hiring of Flannery into a contract position, as consultant, was
approved by the Governing Board in or around April 1994.
a. No official vote of the board is recorded.
b. Flannery had already served for approximately one year on a contractual basis with DHS prior to this approval.
96. Conditions were placed on the contract hiring of Flannery by the Governing Board.
a. [Marlene Leidecker, the director of the Information Systems Department of DHS,] was to negotiate the rate of pay.
b. Leidecker was to supervise Flan-nery.
c. Leidecker was to communicate any problems, disciplinary or otherwise, directly to the Governing Board.
d. Any expansion or changing of the contract required Governing Board approval.
Reproduced Record (R.R.) at 8a.
On August 9, 2000, Bartholomew filed an answer to the Investigative Complaint which admitted the foregoing findings of fact.
See
R.R. at 15a.
On January 17, 2001, a hearing was conducted before members of the Commission.
See
N.T. 1/17/01
at 7-486. On May 30, 2001, the Commission mailed a Final Adjudication and Order in which made the following relevant findings and conclusions:
80. Averment 95 of the Investigative Complaint which was admitted by Bartholomew in her Answer states: “The hiring of Flannery into a contract position, as consultant, was approved by the Governing Board in or around April 1994.
a. No official vote of the board is recorded.
b. Flannery had already served for approximately one year on a contractual basis with DHS prior to this approval.”
a. In that the above is inconsistent with other evidence of record which shows that the Governing Body never gave such an approval, the above averment has been excluded as a Fact Finding.
81. Conditions were placed on the contract hiring of Flannery by the Governing Board.
a. Leidecker was to negotiate the rate of pay.
b. Leidecker was to supervise Flan-nery.
c. Leidecker was to communicate any problems, disciplinary or otherwise, directly to the Governing Board.
d. Any expansion or changing of the contract required Governing Board approval.
Turning to the consulting services that Flannery performed for DHS on an annual basis, Bartholomew used the authority of her office to retain Flannery to provide such training services. Bartholomew did not seek approval of the Governing Board to retain Flannery. Although Bartholomew asserts that the Governing Board approved the hiring of Flannery in April of 1994, the Board did not give any such approval. To the contrary, Bartholomew entered into contracts, the first being for the period from April 1, 1993, until June 30, 1993, for Flannery to provide training services to DHS personnel at the rate of $15 per hour. Thereafter on a fiscal basis, July 1st to June 30th, Bartholomew entered into subsequent contracts with Flannery and signed on behalf of DHS as its Director. The execution of each annual contract by Bartholomew with Flannery was a use of authority of office. Bartholomew solely made the decision to retain Flannery and executed the contracts by signing as DHS Director. Such uses of authority of office each year by Bartholomew resulted in private pecuniary benefits consisting of the compensation that Flannery received for providing those services. That private pecuniary benefit inured to Flannery who is a member of Bartholomew’s immediate family as noted above. Bartholomew violated Section [1103(a) ] when she used the authority of office to retain her daughter on a yearly basis to provide training services for personnel at DHS for the fiscal years July 1,1994, to June 30,1995, and thereafter.
R.R. at 181a, 200a.
Based on the foregoing, the Commission concluded,
inter alia,
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OPINION BY
Senior Judge KELLEY.
Linda J. Bartholomew petitions for review of Order No. 1195 of the State Eth
ics Commission (Commission) finding that she violated Section 1103(a) of the Public Official and Employee Ethics Act (Ethics Act)
while serving as director of the Forest Warren Counties Department of Human Services (DHS) by using the authority of her office to hire her daughter, Sherrie Flannery, to provide computer training services to DHS personnel for the period from July 1, 1994, forward, and imposing restitution for the amount of compensation received by Flannery for these services.
We affirm in part, and reverse in part.
In 1979, Forest and Warren Counties combined the human services departments of each into DHS. One director oversees the associate directors of the several DHS programs, and three commissioners of Forest and Warren Counties compose a Governing Board which oversees DHS. Bartholomew was DHS director from 1991 to 1999.
Although most DHS positions are civil service positions, DHS used the services of contractual employees in its Information Systems Department to assist with the implementation of computer operations. As director, Bartholomew had the responsibility of filling these contractual positions. On April 1, 1993, Bartholomew approved the hiring of Flannery, and the salary to be paid, for one of these contractual positions with DHS. The contract of Flannery’s employment was effective April 1, 1993 through June 30, 1993 at a rate of pay of $15.00 per hour. As DHS director, Bartholomew renewed Flannery’s annual employment contract for the period of July of 1993 through June of 1998 at the same rate of pay.
From July of 1994 forward, Flannery received $4,927.50 in compensation from DHS based on her contract salary. Flannery also received the payment of expenses incurred while providing her contract services.
On May 12, 2000, the Commission issued an Investigative Complaint which charged Bartholomew with the instant violation of Section 1103(a) of the Ethics Act.
The
complaint made the following relevant findings of fact:
95. The hiring of Flannery into a contract position, as consultant, was
approved by the Governing Board in or around April 1994.
a. No official vote of the board is recorded.
b. Flannery had already served for approximately one year on a contractual basis with DHS prior to this approval.
96. Conditions were placed on the contract hiring of Flannery by the Governing Board.
a. [Marlene Leidecker, the director of the Information Systems Department of DHS,] was to negotiate the rate of pay.
b. Leidecker was to supervise Flan-nery.
c. Leidecker was to communicate any problems, disciplinary or otherwise, directly to the Governing Board.
d. Any expansion or changing of the contract required Governing Board approval.
Reproduced Record (R.R.) at 8a.
On August 9, 2000, Bartholomew filed an answer to the Investigative Complaint which admitted the foregoing findings of fact.
See
R.R. at 15a.
On January 17, 2001, a hearing was conducted before members of the Commission.
See
N.T. 1/17/01
at 7-486. On May 30, 2001, the Commission mailed a Final Adjudication and Order in which made the following relevant findings and conclusions:
80. Averment 95 of the Investigative Complaint which was admitted by Bartholomew in her Answer states: “The hiring of Flannery into a contract position, as consultant, was approved by the Governing Board in or around April 1994.
a. No official vote of the board is recorded.
b. Flannery had already served for approximately one year on a contractual basis with DHS prior to this approval.”
a. In that the above is inconsistent with other evidence of record which shows that the Governing Body never gave such an approval, the above averment has been excluded as a Fact Finding.
81. Conditions were placed on the contract hiring of Flannery by the Governing Board.
a. Leidecker was to negotiate the rate of pay.
b. Leidecker was to supervise Flan-nery.
c. Leidecker was to communicate any problems, disciplinary or otherwise, directly to the Governing Board.
d. Any expansion or changing of the contract required Governing Board approval.
Turning to the consulting services that Flannery performed for DHS on an annual basis, Bartholomew used the authority of her office to retain Flannery to provide such training services. Bartholomew did not seek approval of the Governing Board to retain Flannery. Although Bartholomew asserts that the Governing Board approved the hiring of Flannery in April of 1994, the Board did not give any such approval. To the contrary, Bartholomew entered into contracts, the first being for the period from April 1, 1993, until June 30, 1993, for Flannery to provide training services to DHS personnel at the rate of $15 per hour. Thereafter on a fiscal basis, July 1st to June 30th, Bartholomew entered into subsequent contracts with Flannery and signed on behalf of DHS as its Director. The execution of each annual contract by Bartholomew with Flannery was a use of authority of office. Bartholomew solely made the decision to retain Flannery and executed the contracts by signing as DHS Director. Such uses of authority of office each year by Bartholomew resulted in private pecuniary benefits consisting of the compensation that Flannery received for providing those services. That private pecuniary benefit inured to Flannery who is a member of Bartholomew’s immediate family as noted above. Bartholomew violated Section [1103(a) ] when she used the authority of office to retain her daughter on a yearly basis to provide training services for personnel at DHS for the fiscal years July 1,1994, to June 30,1995, and thereafter.
R.R. at 181a, 200a.
Based on the foregoing, the Commission concluded,
inter alia,
that: (1) Bartholomew violated Section 1103(a) of the Ethics Act by using the authority of her office to hire Flannery to provide computer training services to DHS personnel for the period from July 1, 1994 and forward; (2) Flannery had received $4,927.50 in compensation from DHS based upon her contract salary; and (3) Bartholomew must make restitution in the amount of $24,165.12, which included the $4,927.50 that Flannery had received in compensation from DHS based upon her contract salary.
See Id.
at 202a-203a. As a result, the Board issued Order No. 1195 which states, in pertinent part:
5. Bartholomew violated Section [1103(a) ] of the Ethics Act when she used the authority of her office to hire her daughter to provide computer training services to DHS personnel for the period from July 1,1994, forward.
7. Bartholomew is directed within 30 days of the date of mailing of this order to make payment of $24,165.12 through this Commission to the Commonwealth of Pennsylvania. Failure to comply will result in the institution of an order enforcement action.
Id.
at 204a. Bartholomew then filed the instant petition for review.
In this appeal, Bartholomew claims: (1) the Commission erred in disregarding Finding of Fact 95 of the Investigative Complaint in Finding of Fact 80 in the Final Adjudication; (2) the Commission’s Finding of Fact 80 in the Final Adjudication is not supported by substantial evidence; and (3) the Commission erred in
determining that she violated Section 1103(a) of the Ethics Act.
We initially note that this Court’s scope of review of a Commission adjudication is limited to a determination of whether constitutional rights have been violated, if an error of law has been committed, or whether the findings of the Commission are supported by substantial evidence. Section 704 of the Administrative Agency Law, 2 Pa.C.S. § 704;
Snyder v. State Ethics Commission,
686 A.2d 843 (Pa.Cmwlth.1996). Substantial evidence is such relevant evidence as a reasonable person would consider adequate to support the finding.
Id.
In this appeal, Bartholomew claims that the Commission erred as a matter of law by disregarding Finding of Fact 95 of the Investigative Complaint in Finding of Fact 80 of the Final Adjudication. Bartholomew alleges that because the findings of fact in the Investigative Complaint state that Flannery’s hiring was approved by the Governing Board, and because Bartholomew admitted this fact in her answer, the Commission was bound by this factual determination. In addition, Bartholomew asserts that because the Commission based its determination of a violation of Section 1103(a) on a contrary finding of fact, its determination in this regard must be reversed. We agree.
As it has been previously noted:
[WJhen the term admission is used without any qualifying adjective the customary meaning is an evidentiary admission, that is, words in oral or written form or conduct of a party or a representative offered in evidence against the party.
Evidentiary
admissions are to be distinguished from
judicial
admissions. Judicial admissions are not evidence at all. Rather, they are formal concessions in the pleadings in the case or stipulations by a party or its counsel that have the effect of withdrawing a fact from issue and dispensing wholly with the need for proof of the fact. Thus, the judicial admission, unless allowed by the court to be withdrawn, is conclusive in the case, whereas the evi-dentiary admission is not conclusive but is always subject to contradiction or explanation.
Judicial admissions may arise from a party’s statement in its pleadings ... [or] a party’s failure to respond as required by the pleading rules... An attorney’s admission during the course of a trial is treated as a judicial admission. A party’s statements in its brief or oral argument to the trial court are treated as a judicial admission.
As McCormick indicates, judicial admissions are conclusive. A party may not offer evidence to contradict the judicially admitted facts...
L. Packel and A. Poulin, Pennsylvania Evidence 2d ed. § 127, at 30-31 (1999) (footnotes and citations omitted).
As noted above, pursuant to the provisions of Section 1108 of the Ethics Act, the Commission conducted an investigation regarding Bartholomew’s purported violation of Section 1108(a), and issued the instant Investigative Complaint. In Findings of Fact 95 and 96, the Commission found as fact that the Governing Board approved the hiring of Flannery into a contract position in or around April of 1994, and that the Governing Board placed conditions upon the contract hiring of Flannery. Bartholomew admitted these Findings of Fact in her answer to the Investigative Complaint. As a result, these facts were binding upon the Commission, and the Commission was precluded from making contrary findings of fact in its Final Adjudication.
In asserting that it was not bound by Finding of Fact 95 of its Investigative Complaint, the Commission contends that Bartholomew was required to offer the Investigative Complaint into evidence pursuant to Section 35.125(d) of the General Rules of Administrative Practice and Procedure.
However, this assertion over
looks Section 21.25 of the Commission’s regulations
, which supersedes the provisions of Section 35.125 of the General Rules of Administrative Practice and Procedure.
In addition, as this Court has previously noted:
It is true that in trials, especially in jury trials, it is necessary that the party who attempts to prove a fact crucial to his case by an admission in a pleading must do so by reading the averment and the admission into the record.
Buehler v. United States Fashion Plate Co.,
269 Pa. 428, 112 A. 632 (1921);
Churilla v. Barner
[409 A.2d 83, 269 Pa.Super. 100 (1979) ];
Volpe v. Atlantic Crushed Coke Co.
[220 A.2d 393, 208 Pa.Super. 11 (1966) ]. We are of the opinion, however, that the same rule does not hold true in an election hearing where the pleadings are a necessary part of the eviden-tiary record in order to enable the hearing judge to determine what is at issue. This is especially so in election cases such as this one where there are many factual allegations for the judge to adjudicate. There is no necessity for counsel to call to the court’s attention what is already before it by virtue of the pleadings. We think it would be particularly unfair in such a setting for a party to disavow that which it has admitted in a pleading.
See Tops Apparel Manufacturing Co. v. Rothman,
430 Pa. 583, 244 A.2d 436 (1968).
Inasmuch as the hearing judge stated that he had actual knowledge of the content of the pleadings, he was then bound to consider them in adjudicating the matter before him. We hold that the hearing judge erred when he concluded that he could not consider an admission in the pleadings in making a determination of a critical fact.
In re Petition of Shuli
105 Pa.Cmwlth. 462, 525 A.2d 6, 8 (1987),
aff'd per curiam,
514 Pa. 471, 526 A.2d 300 (1987).
Likewise, in proceedings before the Commission, there was no need for Bartholomew to call to the Commission’s attention that which is already before it by virtue of its own pleadings. Pursuant to Section 1108(a) of the Ethics Act, the Commission conducted a preliminary inquiry into Bartholomew’s purported violation of Sections 1103 and 1104. Pursuant to Section 1108(c) of the Ethics Act, the Commission conducted an investigation to determine if Bartholomew had violated
Sections 1103 and 1104. Pursuant to Section 1108(e) of the Ethics Act, the Commission issued the instant Investigative Complaint in which it made Findings of Fact 95 and 96, and Bartholomew admitted these Findings of Fact in her answer to the Investigative Complaint.
It is certainly disingenuous for the Commission to argue to this Court that Bartholomew was required to offer into evidence, at the hearing before members of the Commission, the document prepared by the Commission, containing findings of fact of the Commission, and which was the result of an investigation conducted by the Commission. This is particularly so where, as here, counsel for the Commission’s Investigative Division acknowledged on the record that the relevant findings of fact underlying the instant proceedings had been admitted by Bartholomew, and that these admitted facts “cannot be denied” and “cannot be changed”.
See
N.T. 1/17/01 at 23-24, 28. In short, based upon the provisions of the Ethics Act and the Commission’s regulations, the Commission was bound by the admitted Finding of Fact 95 of its Investigative Complaint, and erred in “excluding” this Finding of Fact in Finding of Fact 80 of its Final Adjudication.
Moreover, in determining that Bartholomew committed the instant violation of Section 1103(a) of the Ethics Act the Commission stated, in pertinent part, that “[she] did not seek approval of the Governing Board to retain Flannery. Although [she] asserts that the Governing Board approved the hiring of Flannery in April of 1994, the Board did not give any such approval.”
See
R.R. at 200a. Because the Commission’s determination that Bartholomew violated Section 1103(a), by using the authority of her office to hire Flannery to provide computer training service to DHS personnel, is based upon Finding of Fact 80 of its Final Adjudication which erroneously “excluded” the admitted facts in Finding of Fact 95 of its Investigative Complaint, that portion of the Board’s order must be reversed.
Accordingly, the order of the Commission is affirmed in part, and reversed in part.
ORDER
AND NOW, this
27th
day of
March,
2002, that portion of Order No. 1195 of the State Ethics Commission, dated May 30, 2001 at File Docket 99-018-C2, stating “Bartholomew violated Section 3(a)/1103(a) of the Ethics Act when she used the au
thority of her office to hire her daughter to provide computer training services to DHS personnel for the period from July 1, 1994, forward.”, and requiring the payment of $4,927.50 in restitution therefor, is reversed; Order No. 1195 of the State Ethics Commission is affirmed in all other respects.