cheatham/huey v. Diciccio/phoenix Law Enforcement Association

379 P.3d 211, 240 Ariz. 314
CourtArizona Supreme Court
DecidedSeptember 13, 2016
DocketCV-15-0287-PR
StatusPublished
Cited by11 cases

This text of 379 P.3d 211 (cheatham/huey v. Diciccio/phoenix Law Enforcement Association) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
cheatham/huey v. Diciccio/phoenix Law Enforcement Association, 379 P.3d 211, 240 Ariz. 314 (Ark. 2016).

Opinions

CHIEF JUSTICE BALES,

opinion of the Court:

¶ 1 The Gift Clause of Arizona’s Constitution bars cities and other public entities from “mak[ing] any donation or grant, by subsidy or otherwise, to any individual, association, or corporation.” Ariz. Const, art. 9, § 7. For decades, the City of Phoenix has contracted in collective bargaining agreements with police officers to allow “release time,” that is, to pay officers for certain time spent on behalf of their authorized representative (a police union) rather than regular police duties. We hold that the release time provisions at issue here do not violate the Gift Clause.

I.

¶ 2 Police officers employed by the City of Phoenix (“the City”) are divided into units. Relevant here is Unit 4, which comprises approximately 2,600 officers, of whom nearly ninety percent are members of the Phoenix Law Enforcement Association (“PLEA”), PLEA is an employee organization or, more colloquially, a police union. Pursuant to the Phoenix City Code, PLEA is the recognized representative for the Unit 4 officers and, every other year, it negotiates with the City the terms of employment for those officers, [317]*317whether PLEA members or not. See Phx. City Code Art. XVII § 2-209. The agreed upon terms are embodied in a collective bargaining agreement called a Memorandum of Understanding (“MOU”), which governs the officers’ wages, hours, and general employment conditions. Since 1977, every MOU has included provisions for release time, that is, times when officers will be excused from usual police duties, but are still paid by the City, while they perform PLEA activities and conduct PLEA business.

¶ S This litigation began in 2011, when William R. Cheatham and Marcus Huey (collectively “Taxpayers”) sued the City, alleging that four release time provisions in the 2010-2012 MOU violated the Gift Clause. Taxpayers challenged three provisions that authorized six full-time officers to each receive full pay, benefits, and 160 hours of overtime per year and allocated to other officers a bank of 1,583 release time hours per year for “legitimate [association business,” including preparing for negotiations with the City. 2010-2012 MOU § 1-8(G), (I), (Q). The fourth challenged category allotted a total of fifteen days of paid leave per year for officers to attend PLEA seminars, lectures, and conventions. Id. § 1-3(K). In June 2012, the trial court granted a preliminary injunction after concluding that at least some of the challenged provisions violated the Gift Clause.

¶ 4 Shortly thereafter, the 2010-2012 MOU was superseded by the 2012-2014 MOU, which contained similar release time provisions. Under the new MOU, the six full-time officers, instead of each receiving 160 hours of overtime, could draw on a bank of 960 hours of overtime for time spent serving on city committees or task forces and the general bank of release time was increased to 1,859 hours, 2012-2014 MOU § 1-3(B)(3), (Q). The 2012-2014 MOU also allowed PLEA to designate up to forty-two representatives who, without losing pay or benefits, and subject to normal departmental scheduling and assignment, could attend grievance meetings and other specified meetings and hearings, when the Unit 4 officer involved in the proceeding designates PLEA as his or her representative. Id. § l-3(B)(2)(a). Time spent by these representatives for purposes other than attending the identified hearings or meetings, such as gathering information or otherwise preparing, would be charged against the bank of release time. Id. § 1-3(B). Finally, PLEA was allowed to appoint a legislative representative who would receive 500 hours of release time, provided the officer “has agreed to work with and assist the [Cjity’s legislative lobbyist.” Id. § 1~3(C).

¶ 5 Taxpayers amended their complaint to challenge the 2012-2014 provisions. The trial court preliminarily enjoined the provisions and, after a bench trial, later issued a permanent injunction, ruling that the provisions violate the Gift Clause because they lack a public purpose and are not supported by adequate consideration. Additionally, the trial court permanently enjoined the City and PLEA from entering into future MOUs with release time provisions absent certain conditions.

¶ 6 The City and PLEA appealed. Without deciding whether the release time provisions serve a public purpose, the court of appeals held that they are not supported by adequate consideration, inasmuch as the MOU does “not obligate PLEA to perform any specific duty or give anything in return for the release time.” Cheatham v. Diciccio, 238 Ariz. 69, 74-75 ¶¶ 16, 20, 356 P.3d 814, 819-20 (App. 2015). The court of appeals affirmed the trial court’s order “to the extent that it enjoins the 2012-2014 MOU release time provisions and that it enjoins the City and PLEA from entering into future MOUs or agreements with release time, unless they imposed upon PLEA binding obligations.” Id. at 76 ¶ 27, 356 P.3d at 821.

¶7 We granted review because whether the Gift Clause bars release time provisions in collective bargaining agreements for public employees is a legal issue of statewide importance. We have jurisdiction pursuant to article 6, section 5(3), of the Atizona Constitution and A.R.S. § 12-120.24.

II.

A.

¶ 8 We review a trial court’s grant of an injunction for an abuse of discretion, Valley Med. Specialists v. Farber, 194 Ariz. [318]*318363, 366 ¶ 9, 982 P.2d 1277, 1280 (1999), and the interpretation and application of constitutional provisions de novo. Ross v. Bennett, 228 Ariz. 174, 176 ¶ 6, 265 P.3d 356, 358 (2011).

¶ 9 The Gift Clause provides: “Neither the state, nor any county, city, town, municipality, or other subdivision of the state shall ever give or loan its credit in the aid of, or make any donation or grant, by subsidy or otherwise, to any individual, association, or corporation.” Ariz. Const. art. 9, § 7. The clause has two primary purposes—preventing the “depletion of the public treasury or inflation of public debt by engagement in non-public enterprise” and protecting public funds against use for “the purely private or personal interest of any individual.” Kromko v. Ariz. Bd. of Regents, 149 Ariz. 319, 320-21, 718 P.2d 478, 479-80 (1986) (internal quotations, emphasis, and citations omitted); Wistuber v. Paradise Valley Unified Sch. Dist., 141 Ariz. 346, 349, 687 P.2d 354, 357 (1984) (“The constitutional prohibition was intended to prevent governmental bodies from depleting the public treasury by giving advantages to special interests])]”).

¶ 10 A two-prong test determines whether a challenged government expenditure violates the Gift Clause. See Turken v. Gordon, 223 Ariz. 342, 348 ¶ 22, 224 P.3d 158, 164 (2010); Wistuber, 141 Ariz. at 349, 687 P.2d at 357.

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Bluebook (online)
379 P.3d 211, 240 Ariz. 314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheathamhuey-v-dicicciophoenix-law-enforcement-association-ariz-2016.