cheatham/huey v. Plea

CourtCourt of Appeals of Arizona
DecidedAugust 11, 2015
Docket1 CA-CV 13-0364
StatusPublished

This text of cheatham/huey v. Plea (cheatham/huey v. Plea) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
cheatham/huey v. Plea, (Ark. Ct. App. 2015).

Opinion

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

WILLIAM R. CHEATHAM and MARCUS HUEY, Plaintiffs/Appellees,

v.

SAL DICICCIO in his official capacity as a member of the Phoenix City Council; CITY OF PHOENIX; PHOENIX LAW ENFORCEMENT ASSOCIATION, Defendants/Appellants,

_________________________________

THOMAS COX; VICTOR ESCOTO; RICHARD V. HARTSON; VIVIAN REQUE; and DAVID K. WILSON, Intervenors/Appellants. _________________________________

PHOENIX LAW ENFORCEMENT ASSOCIATION, Defendant/Appellant.

Nos. 1 CA-CV 13-0364; 1 CA-CV 14-0135 Consolidated FILED 8-11-2015

Appeal from the Superior Court in Maricopa County No. CV2011-021634 The Honorable Katherine M. Cooper, Judge

AFFIRMED IN PART; VACATED IN PART COUNSEL

Scharf-Norton Center for Constitutional Litigation at the Goldwater Institute, Phoenix By Clint Bolick, Jonathan Matthew Riches Counsel for Plaintiffs/Appellees

Sherman & Howard, LLC, Phoenix By John Alan Doran, Lori Wright Keffer, Matthew A. Hesketh Counsel for Defendants/Appellants Napier, Coury & Baillie, PC, Phoenix By Michael Napier, Kathryn R.E Baillie Counsel for Defendants/Appellants Phoenix Law Enforcement Association

Judicial Watch, Inc., Washington, DC By Paul J. Orfanedes, Chris Fedeli Counsel for Defendants/Appellants

Gomez & Petitti, PC, Phoenix By David F. Gomez, Michael J. Petitti Jr. Counsel for Intervenors/Appellants

OPINION

Judge Randall M. Howe delivered the opinion of the Court, in which Presiding Judge Samuel A. Thumma and Judge John C. Gemmill joined.

H O W E, Judge:

¶1 The City of Phoenix (“City”) and the intervenor police officers and the Phoenix Law Enforcement Association (collectively, “PLEA”) appeal the trial court’s order enjoining enforcement of “release time” provisions of the 2012–14 Memorandum of Understanding (“MOU”) between the City and PLEA. Under this agreement, the City paid PLEA approximately $1.7 million in release time, which is time police officers are released from police duties for the City to allow them to perform PLEA activities and business. The City and PLEA argue that the trial court erred by finding the release time provisions violated the Arizona Constitution’s Gift Clause. Because the release time provisions do not require PLEA to perform any specific duties, however, any benefit the City received from the release time was grossly disproportionate to the City’s $1.7 million

2 CHEATHAM/HUEY v. DICICCIO Opinion of the Court

payments to PLEA. Accordingly, neither the City nor PLEA has shown that the trial court erred in holding that the release time provisions violated the Gift Clause. For these reasons, we affirm the trial court’s injunction of the 2012–14 MOU release time provisions and prohibition of the City and PLEA from having release time provisions in their MOUs, unless mandatory language obligates PLEA to perform specific duties in exchange for the release time. We vacate the trial court’s other requirements in that order, however, because they are not properly part of the consideration analysis.

FACTS AND PROCEDURAL HISTORY

¶2 The City of Phoenix’s employees are divided into various units, with Unit 4 consisting of 2,500 police officers below the rank of sergeant. PLEA is a labor organization that represents the police officers of Unit 4. Of Unit 4’s 2,500 members, 2,150—nearly ninety percent—are PLEA members. Among other things, PLEA advocates for its members by negotiating contracts with the City and representing members in administrative, civil, and criminal proceedings.

¶3 Every other year, the City and PLEA negotiate a new MOU. MOUs govern the officers’ wages, hours, and other conditions of employment. See PHOENIX, ARIZ., CODE art. XVII, §§ 2–209, –210(11), –214, –215, –218 (1976). A complete MOU is submitted to the Phoenix City Council for approval. See id. §§ 2–210(12), –215(C). Every MOU since 1977—when the arrangement began—has included provisions for “release time,” which is “the practice of relieving police officers from police duties to perform PLEA activities and conduct PLEA business.” The 2010–12 MOU prescribed four categories of release time. The first category—provided in § 1.3.G and Q—authorized six full-time officers to receive full pay and benefits with 160 hours of overtime per year. The second category— provided in § 1.3.G—allocated to other officers a bank of 1,583 release time hours per year for “legitimate association business,” which includes preparation for negotiations with the City. The third category—provided in § 1.3.K—allotted 15 days of paid leave per year for officers to attend PLEA seminars, lectures, and conventions. The final category—provided in § 1.3.I.6—authorized officers to serve as legislative representatives who received 500 release time hours per year to represent PLEA.

¶4 In 2011, William R. Cheatham and Marcus Huey (collectively, “Cheatham”) sued the City, challenging the 2010–12 MOU release time provisions, section 1.3.G, K, and Q, and seeking injunctive and declaratory relief. Cheatham argued that the release time provisions were unconstitutional under the Gift Clause. The clause is violated if, when the

3 CHEATHAM/HUEY v. DICICCIO Opinion of the Court

government contracts with a private entity to expend funds, the funds are not used for a public purpose or the government’s expenditure is “grossly disproportionate” to what it receives in return. Turken v. Gordon, 223 Ariz. 342, 345 ¶ 7, 224 P.2d 158, 161 (2010).

¶5 In June 2012, after an evidentiary hearing on Cheatham’s application for preliminary injunction, the trial court concluded as a matter of law that “at least some applications of release time [were] not for a public purpose,” such as negotiating contracts for members, lobbying for favorable legislation, and attending PLEA functions. The court also concluded that PLEA did not provide adequate consideration for the benefit it received under the agreement because it was not required to “perform specific service or give anything in return” for the release time. In doing so, the court found as fact that the “MOU [did] not obligate PLEA to provide any services to the City in exchange for the compensation and benefits the City [gave] to PLEA for release time.” The court therefore preliminarily enjoined the 2010–12 MOU release time provisions.

¶6 A few weeks later, the 2010–12 MOU expired, and the 2012–14 MOU became effective. The 2012–14 MOU largely authorized the same release provisions as those contested in the 2010–12 MOU, with certain changes. First, the allocated overtime hours for the six full-time officers increased from 160 to 960 hours. Second, the bank of release time for “legitimate association business” increased from 1,583 to 1,859 hours. Third, the MOU provided an unspecified bank of paid leave time for officers designated as association representatives to attend meetings and hearings without losing pay or benefits. Time used for any other purposes, however, had to be subtracted from the 1,859 release time hours. The amount the City paid for the release time provisions in the 2012–14 MOU was approximately $1.7 million.

¶7 Cheatham filed an amended complaint challenging the 2012– 14 MOU release time provisions, section 1-3.B, C, and Q.1 After another evidentiary hearing, the trial court concluded that these provisions of the 2012–14 MOU violated the Gift Clause. The court determined that release time did not advance a public purpose. As relevant here, the court also determined that the exchange lacked consideration, based on its factual findings that the MOU did “not obligate PLEA to provide any services to

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