Consolidated Infrastructure Management Authority, Inc. v. Allen

269 S.W.3d 852, 28 I.E.R. Cas. (BNA) 1516, 2008 Ky. LEXIS 295, 2008 WL 5046728
CourtKentucky Supreme Court
DecidedNovember 26, 2008
Docket2006-SC-000188-DG, 2006-SC-000712-DG
StatusPublished
Cited by13 cases

This text of 269 S.W.3d 852 (Consolidated Infrastructure Management Authority, Inc. v. Allen) is published on Counsel Stack Legal Research, covering Kentucky Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Infrastructure Management Authority, Inc. v. Allen, 269 S.W.3d 852, 28 I.E.R. Cas. (BNA) 1516, 2008 Ky. LEXIS 295, 2008 WL 5046728 (Ky. 2008).

Opinion

Opinion of the Court by

Justice CUNNINGHAM.

Consolidated Infrastructure Management Authority, Inc. (“CIMA”) appeals from a judgment of the Logan Circuit Court in favor of its former employee, Thomas Everette Allen. Allen brought the action pursuant to Kentucky’s Whistle-blower Act, KRS 61.101 et. seq., and was awarded back pay, as well as attorney’s fees and costs. The Court of Appeals affirmed the trial court’s judgment in its entirety. For the reasons set forth herein, we likewise affirm.

In 2000, Allen was hired as a Safety Director for the City of Russellville. The following year, Russellville joined with the City of Auburn to form CIMA, which would administer the water and sewer services for both cities. Upon CIMA’s creation, Allen became the Safety Director. The position required Allen’s supervision of safety standards at CIMA’s Russellville and Auburn facilities.

Shortly following his transfer, Allen performed a walk-through of the Auburn facility and found numerous safety violations. He presented his list to CIMA’s Executive Director, Charles McCollum, and the Assistant Executive Director, Wayne Thomas. The list included instances of broken equipment, lack of safety railings, and torn-down exterior fencing. Despite Allen’s characterization of the violations as serious, he was told there was no money to fix the violations.

In August of 2001, Allen sent a letter to McCollum, Thomas, the Chairman of CIMA’s Board of Directors, and CIMA’s Financial Director. The document, entitled “Notification of a Formal OSHA Inspection by Safety Director,” reported the safety violations and his efforts to fix the problems. Allen further stated, “On September 10, 2001 I will make another inspection of the facilities and when I get the violations written then there will be a dead line when they will need to be done. At this point if the violations and safety equipment that is needed is not in place I will request a survey from Frankfort OSHA....”

Allen appeared before CIMA’s Board of Directors in September and October of 2001. At both meetings, he reported on safety violations and again expressed his intention to contact Kentucky OSHA if the problems were not addressed. At the October meeting, the Board voted to repair the exterior fencing, which was completed in November 2001.

In February 2002, Allen was informed that CIMA was reducing its workforce due to financial constraints and that he would be among those laid off. A week later, Allen sent a letter to the Kentucky Labor Cabinet enumerating the safety violations at CIMA’s facilities. and enclosing photographs. He requested an unannounced inspection of the water treatment plant and the wastewater plant. A surprise inspection was conducted, which resulted in several violation notices and penalties.

Approximately one year later, Allen brought suit against CIMA for violation of Kentucky’s Whistleblower Act, wrongful *855 termination, and intentional infliction of emotional distress. At trial, Allen withdrew the intentional infliction of emotional distress claim. The trial court dismissed the wrongful termination claim. With respect to Allen’s whistleblower claim, the trial court refused to instruct the jury on punitive damages or injunctive relief, determining that such claim was barred by the applicable statute of limitations.

The jury found in Allen’s favor, awarding him $40,000 in compensatory damages. The trial court granted Allen’s motion for attorney’s fees and expenses. In its final order and judgment, the trial court reduced the $40,000 award by the amount which Allen had received in unemployment benefits. Shortly after the trial concluded, CIMA announced its dissolution. Allen moved the trial court to require CIMA to post a supersedeas bond; the motion was denied. Thereafter, CIMA appealed the judgment. Allen filed a cross-appeal of the reduction of the jury’s award and the denial of the motion for a supersedeas bond.

The Court of Appeals affirmed the judgment, rejecting CIMA’s primary contention that Allen’s whistleblower claim was barred by the statute of limitations. It likewise rejected CIMA’s claim that Allen’s actions did not constitute “whistle-blowing” within the meaning of the Act. The Court of Appeals also affirmed the trial court’s refusal to require CIMA to post a supersedeas bond. This appeal followed.

CIMA first argues that it was entitled to a directed verdict because Allen’s whistleblower claim was barred by the statute of limitations found within the Whistleblower Act. KRS 61.103(2) provides:

Notwithstanding the administrative remedies granted by KRS Chapters 16, 18A, 78, 90, 95, 156, and other chapters of the Kentucky Revised Statutes, employees alleging a violation of KRS 61.102(1) or (2) may bring a civil action for appropriate injunctive relief or punitive damages, or both, within ninety (90) days after the occurrence of the alleged violation.

The trial court rejected CIMA’s motion, concluding that the limitation applied only to claims for punitive damages and injunc-tive relief, not to claims for compensatory damages. We agree.

To determine whether KRS 61.103(2) applies to all claims brought under the Whistleblower Act, we look first to the plain language of the statute, affording words their ordinary meaning. “We are not at liberty to add or subtract from the legislative enactment or discover meanings not reasonably ascertainable from the language used.” Commonwealth v. Harrelson, 14 S.W.3d 541, 546 (Ky.2000). Statutes must be liberally construed so that the intent of the legislature is carried out. KRS 446.080(1).

The plain language of KRS 61.103(2) indicates that the 90-day limitation applies to civil actions “for appropriate injunctive relief or punitive damages, or both_” This is not to say that whistle-blowers are limited solely to injunctive relief or punitive damages in seeking redress: KRS. 61.990(4) specifically permits a court to order “reinstatement of the employee, the payment of back wages, full reinstatement of fringe benefits and seniority rights, exemplary or punitive damages, or any combination thereof’ in actions filed under KRS 61.102 and 61.103. Yet, there is nothing in the language of KRS 61.103(2) that would require its application to actions for relief other than in-junctive or punitive, such as a compensatory claim for back pay. When the express language of a statute is clear and unambig *856

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Bluebook (online)
269 S.W.3d 852, 28 I.E.R. Cas. (BNA) 1516, 2008 Ky. LEXIS 295, 2008 WL 5046728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-infrastructure-management-authority-inc-v-allen-ky-2008.