Clarksdale Public Utilities Commission v. Mississippi Department of Employment Security and Mark P. Johnson

Court of Appeals of Mississippi·Decided February 13, 2024·No. 2022-CC-01085-COA·Published

Opinion

IN THE COURT OF APPEALS OF THE STATE OF MISSISSIPPI NO. 2022-CC-01085-COA

CLARKSDALE PUBLIC UTILITIES APPELLANT COMMISSION

v.

MISSISSIPPI DEPARTMENT OF APPELLEES EMPLOYMENT SECURITY AND MARK P. JOHNSON

DATE OF JUDGMENT: 09/09/2022 TRIAL JUDGE: HON. CHARLES E. WEBSTER COURT FROM WHICH APPEALED: COAHOMA COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANT: DAVID D. O’DONNELL DAVID R. HUNT

ATTORNEYS FOR APPELLEES: ALBERT B. WHITE MARK P. JOHNSON (PRO SE)

NATURE OF THE CASE: CIVIL - STATE BOARDS AND AGENCIES DISPOSITION: AFFIRMED - 02/13/2024 MOTION FOR REHEARING FILED:

EN BANC.

McDONALD, J., FOR THE COURT:

¶1. Clarksdale Public Utilities Commission (CPUC) appeals from the judgment of the Coahoma County Circuit Court that affirmed the order of the Mississippi Department of Employment Security’s (MDES) Board of Review, which approved unemployment compensation benefits to Mark Johnson, whose employment at CPUC had been terminated. The MDES Board of Review had affirmed an Administrative Law Judge’s (ALJ) finding that Johnson was not disqualified from receiving benefits because of alleged misconduct or insubordination. In its appeal here, CPUC argues (1) that the ALJ refused to admit evidence,

including board minutes, regarding Johnson’s insubordination and other acts of misconduct; (2) that the ALJ’s award of unemployment benefits to Johnson was arbitrary and capricious;1 and (3) that collateral estoppel barred the ALJ from reconsidering the factual determination of whether Johnson’s actions constituted misconduct. Having considered the arguments of counsel and relevant caselaw, we affirm the circuit court’s judgment.

FACTS AND PROCEDURAL HISTORY

¶2. Pursuant to Mississippi Code Annotated section 21-27-13 (Rev. 2015),2 the City of Clarksdale created the Clarksdale Public Utilities Commission (CPUC) to operate the city’s public utility. Although CPUC was a separate legal entity, the Commissioners were selected by the City’s Board of Alderman.3 In accordance with its statutory authority, on June 19, 2017, CPUC hired Mark Johnson as the general manager to oversee the day-to-day

1 Encompassed in this argument is CPUC’s contention that it had proved by clear and convincing evidence that Johnson engaged in acts of misconduct.

2 Mississippi Code Annotated section 21-27-13 provides:

The governing authorities of any municipality which now owns and operates, or hereafter shall own and operate, any system or systems shall have the power and authority to create a commission to control, manage and operate such systems, or any one or more of them, which said commission shall consist of not less than three (3) nor more than five (5) commissioners, to be elected by the governing authorities of such municipality. In any municipality operating under the council-manager plan of government, such commissioners shall be selected by, and shall be under the control of, the mayor and councilmen of the municipality, and not the city or town manager . . . .

3 City authorities can also remove commissioners according to Mississippi Code Annotated section 21-27-15 (Rev. 2015), which provides that “[t]he governing authorities of such municipality shall have the power to remove any member of said commission for inefficiency or incompetency or any other cause.”

operations of the utility.

A. Johnson’s Termination

¶3. During the next year, events occurred that caused the Commission to question Johnson’s job performance. The Commission engaged an independent investigator, James Herring, to look into a number of matters. As a result of Herring’s report and other allegations against Johnson, the Commission suspended Johnson and scheduled a pre- disciplinary hearing. Prior to the hearing, on September 12, 2018, the Commission notified Johnson of five grounds for potential discipline (some of which are repetitive): (1) insubordination based on Johnson’s repeated efforts to have the Board of Aldermen remove the Commissioners and reverse his suspension, his failure to cooperate with the independent investigator, his illegal donation of labor and equipment to a local organization contrary to the Commission’s instructions, and his release of confidential personnel disciplinary files and information; (2) unauthorized and illegal expenditure of Commission funds for the purchase of a new Interactive Voice Response (IVR) answering system,4 engagement of an engineering firm to perform GIS mapping services without Commission approval, and the authorization of illegal donations of Wi-Fi boxes to Clarksdale Revitalization Project; (3) harassment and coercion of an employee to file false allegations of sexual harassment against a Commissioner; (4) authorizing and failing to disclose the recording of all CPUC telephone calls on the new IVR system without the knowledge or consent of the participants; and (5)

4 Often called a “touch-tone” system, IVRs are used to direct callers through menu options over the phone. They can also record automated voicemail messages and route calls to departments.

inefficient management of the advanced metering infrastructure project which resulted in overtime costs and consumer complaints of billing delays and errors. The letter detailed the policies Johnson allegedly violated.5

¶4. The Commission conducted the pre-disciplinary hearing on September 19, 2018, and Johnson was represented by counsel. The Commission made no decision that day, but unanimously decided to reconvene on September 25, 2018. At the reconvened meeting, the Commission voted 4-1 to terminate Johnson. The Commission’s decision was based on the following findings: (1) defying the legal authority of the Commission and failure to comply with Commission policies; (2) making inappropriate expenditures; (3) attempting to obtain a sworn statement from an employee concerning sexual harassment that the employee denies occurred; (4) implementing a telephone call recording system that Johnson knew or should have known was illegal; and (5) inefficient management of the advanced metering infrastructure project. The Commission attached to the termination letter a twenty-nine-page summary of its findings and conclusions, which, according to the letter, were the “complete facts leading to [Johnson’s] discharge” and contained the documents and/or sworn statements

5 They include violations of 18 U.S.C. § 2511(1) (anti-wiretapping law); 18 U.S.C.

§ 4 (reporting law); Mississippi Code Annotated section 31-7-13(b)-(o) (Supp. 2012) (solesource purchasing law); Mississippi Code Annotated section 21-27-27 (Rev. 2015) (prohibition on municipal authorities from furnishing free services); CPUC’s Standard Operating Procedures P-1 (purchasing policies); CPUC’s Governance Policy G-9 (Commission-general manager relationship); CPUC’s Personnel Policies and Procedures Manual §§ 4.300, et seq. and 16.400, et seq. (general manager’s duty to report and investigate sexual harassment allegations of an employee); CPUC’s Personnel Policies and Procedures Manual § 13.500, et seq. (failure of general manager to enforce rules); CPUC’s Access to Public Records Policy (disclosure of personnel files to the public); and coercion of an employee to make a false allegation.

submitted during Johnson’s termination hearing. Based on these findings, the Commission terminated Johnson for inefficiency and misconduct. Johnson did not seek judicial review of that decision.

B. Johnson’s Unemployment Benefits Proceedings 1. Application and Initial Determination

Free access — add to your briefcase to read the full text and ask questions with AI

Clarksdale Public Utilities Commission v. Mississippi Department of Employment Security and Mark P. Johnson, (Mich. Ct. App. 2024).

Clarksdale Public Utilities Commission v. Mississippi Department of Employment Security and Mark P. Johnson (Clarksdale Public Utilities Commission v. Mississippi Department of Employment Security and Mark P. Johnson) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Murray v. State
849 So. 2d 1281 (Mississippi Supreme Court, 2003)
Greenwood School Dist. v. Mdes
962 So. 2d 684 (Court of Appeals of Mississippi, 2007)
Abernathy v. State
30 So. 3d 320 (Mississippi Supreme Court, 2010)
Illinois Cent. R. Co. v. McDaniel
951 So. 2d 523 (Mississippi Supreme Court, 2006)
Allen v. MISSISSIPPI EMP. SEC. COM'N
639 So. 2d 904 (Mississippi Supreme Court, 1994)
Heidel v. State
587 So. 2d 835 (Mississippi Supreme Court, 1991)
McCord v. Healthcare Recoveries, Inc.
960 So. 2d 399 (Mississippi Supreme Court, 2007)
Gordon v. MISSISSIPPI EMPLOYMENT SEC. COM'N
864 So. 2d 1013 (Court of Appeals of Mississippi, 2004)
Gore v. Mississippi Employment Security Commission
592 So. 2d 1008 (Mississippi Supreme Court, 1992)
Wheeler v. Arriola
408 So. 2d 1381 (Mississippi Supreme Court, 1982)
Vaughan v. State
759 So. 2d 1092 (Mississippi Supreme Court, 1999)
CALHOUN CTY. BD. OF ED. v. Hamblin
360 So. 2d 1236 (Mississippi Supreme Court, 1978)
Tinseltown Cinema, LLC v. City of Olive Branch, Mississippi
158 So. 3d 367 (Court of Appeals of Mississippi, 2015)
Ouida J. Claiborne v. Ocwen Federal Bank FSB
194 So. 3d 877 (Court of Appeals of Mississippi, 2015)
John Ashley Hale v. State of Mississippi
191 So. 3d 719 (Mississippi Supreme Court, 2016)
Bobby Leon Gibson v. Williams, Williams & Montgomery, P.A.
186 So. 3d 836 (Mississippi Supreme Court, 2016)
Michael Ray Fontaine v. State of Mississippi
256 So. 3d 615 (Court of Appeals of Mississippi, 2018)
Herman Jackson, Jr. v. State of Mississippi
263 So. 3d 1003 (Court of Appeals of Mississippi, 2018)
Charlotte Dailey v. Mississippi Department of Employment Security
271 So. 3d 715 (Court of Appeals of Mississippi, 2018)