Elder v. TOWN OF EMMITSBURG

437 F. Supp. 2d 404, 2006 U.S. Dist. LEXIS 23045, 2006 WL 1134219
CourtDistrict Court, D. Maryland
DecidedApril 21, 2006
DocketCivil JFM-06-0023
StatusPublished

This text of 437 F. Supp. 2d 404 (Elder v. TOWN OF EMMITSBURG) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elder v. TOWN OF EMMITSBURG, 437 F. Supp. 2d 404, 2006 U.S. Dist. LEXIS 23045, 2006 WL 1134219 (D. Md. 2006).

Opinion

MEMORANDUM

MOTZ, District Judge.

This action arises from a published report of the Ethics Commission of the town of Emmitsburg, Maryland that found plaintiff Arthur Elder, a member of the town’s Board of Commissioners, had inappropriately used his position of authority to benefit the business interests of himself and a family member. In seeking judicial review of the Ethics Commission’s decision as well as compensation for the damage the report inflicted upon his reputation and political career, Elder brought suit in the Circuit Court for Frederick County against the Ethics Commission and its Chair, Patrick Brennan, the Board of Commissioners, and Mayor James Hoover. Because certain of the counts in the complaint allege deprivations of Elder’s federal constitutional right to due process in violation of 42 U.S.C. § 1983, the defendants removed the action to this court. Now pending is the defendants’ motion to dismiss or, in the alternative, for summary judgment. For the reasons that follow, *406 the motion will be granted in part and the case remanded back to the Circuit Court for Frederick County.

I.

A.

The ancestors of Arthur Elder were some of the original settlers of Emmits-burg, Maryland, a town in which Elder himself has lived all his life. (See Elder Affidavit at ¶ 3, Exhibit 1 to Elder Opp. Br.) He ran a printing business named Chronicle Press Inc. until 2002 or 2003, at which point he sold it and the building in which he operated it to David Runkle, who renamed the business Custom Image Printing. (See id; Elder Opp. at 3; Ethics Commission Report at 3, Exhibit B to Compl.) Since 1975 Elder has also owned the Emmitsburg Car Wash. (Elder Affidavit at ¶ 2.) It was from these two business interests that the ethics imbroglio sprang.

During the severe drought of 2002, Elder was required to operate his car wash, then the only one in town, on a restricted schedule. (Id. at ¶ 3.) At the same time, however, a man by the name of Kirby Delauter proposed opening another car wash within the town limits. (Id.) Elder attempted to block this effort by telling the town’s leaders that the combination of water restrictions and Delauter’s competition could bankrupt his own business. (Id.) Despite this protest, Delauter was permitted to proceed with his plan. Soon thereafter he, along with Carl Athey, opened Silo Hill Car Wash. (Id.)

Presumably spurred on by this experience, Elder decided to run for a seat on the town’s Board of Commissioners (“Board”). (See id. at ¶ 4.) Campaigning on a platform committed to limiting growth and development, Elder defeated incumbent Patrick Brennan in a closely contested election held in April 2003. (Elder Affidavit at ¶ 4; see Elder Press Release at ¶ 3, Exhibit 6 to Elder Opp. Br.) Later that year Mayor James Hoover nominated Brennan to serve as Chair of the town’s three-member Ethics Commission (“Commission”). (Brennan Affidavit at ¶ 1, Exhibit 1 to Def. Br.) As required by town ordinance, the nomination was submitted to the Board for their approval, which they, including Elder, gave unanimously on September 8, 2003. (Id.)

Also in September 2003, Runkle filed for bankruptcy on behalf Custom Image Printing. Within months Elder foreclosed on the business’s office building and equipment due to Runkle’s failure to make his mortgage payments. Elder then turned around and sold the business to his cousin Lisa Elder in May 2004. (See Elder Affidavit ¶ 7; Chris Patterson, Court Inspects Ethics Accuser, Gazette.Net, Jan. 27, 2005, at,l Exhibit 3 to Elder Opp. Br.; Commission Report at 3.) Resurrecting the name Chronicle Press, Ms. Elder obtained the necessary permits to begin running the business herself on July 14, 2004. (Commission Report at 3.) One week later, Run-kle applied for a permit to reopen and operate Custom Image Printing from his Emmitsburg home. (Id.) He obtained the permit on September 13, 2004. (Id. at 4.)

B.

The Commission received a complaint from Runkle on October 6, 2004 alleging that Elder and William B. O’Neil, Jr., President of the Board, had violated the town’s ethical code of conduct for its officials. (Brennan Affidavit at ¶ 2.) Specifically, Runkle alleged that Elder and O’Neil had used their positions of authority to try and undermine his printing business in order to benefit Lisa Elder and Chronicle Press. (Runkle Complaint, Exhibit A to Def. Br.) Noting that Runkle had urged him to do so, Delauter filed a similar complaint on November 24, 2004 with respect to his and Elder’s car washes, though he *407 did not mention O’Neil in his allegations. (Brennan Affidavit at ¶ 3; Delauter Complaint, Exhibit B to Def. Br.) Delauter, along with his partner Athey, appeared before the Commission on December 14, 2004 to describe in more detail the facts underlying his complaint. (Brennan Affidavit ¶ 4; Minutes of Commission Meeting (December 14, 2004), Exhibit C to Def. Br.) Within a week the Commission decided to launch a formal investigation, a fact Brennan divulged to a local newspaper. (Comply 26.)

The Commission wrote to Elder on December 23, 2004 to notify him of its inquiry and to request that he appear before it, accompanied by counsel if he so chose. (First Commission Letter to Elder (December 23, 2004), Exhibit E to Def. Br.) Included with the letter were copies of the two complaints. (Id.) Elder did not comply with the request, but rather issued a press release on January 10, 2005 refuting the allegations and claiming that the investigation was a “political witch hunt by individuals who have personal and political grudges against Bill O’Neil and me.” (Elder Press Release at 1-2, Exhibit 6 to Elder Opp. Br.) He further stated that he would not appear before the “kangaroo court” because it was led by his political foe Brennan, and because there were no procedures in place to protect his right to due process. (Id; Elder Opp. Br. at 4.) Despite this unequivocal denunciation of the investigation, the Commission asked him twice more to comply with its request. (Second Commission Letter to Elder (February 7, 2005), Exhibit F to Def. Br.; Third Commission Letter to Elder (February 24, 2005), Exhibit G to Def. Br.) The last letter informed Elder that his refusal to meet with the Commission would not prevent it from continuing its investigation. (See Third Commission Letter to Elder.)

And continue the Commission did, even in the face of a public demand by at least one Emmitsburg citizen that Brennan either recuse himself or halt the investigation. (Comply 34.) In addition to Delauter and Athey, the Commission interviewed the following persons under oath: Michael Lucas, Director of Town Planning; Jennifer Joy, Planning Technician for the town; Deputy James Moxley of the Frederick County Sheriffs Department; David Haller, Town Manager; Mayor Hoover; and Eva Miller, a former code enforcer for the town. (Commission Report at 1-2.) Neither Elder nor O’Neill ever appeared before the Commission.

C.

The investigation wrapped up in April 2005. Its final product was an eight-page report.

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Bluebook (online)
437 F. Supp. 2d 404, 2006 U.S. Dist. LEXIS 23045, 2006 WL 1134219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elder-v-town-of-emmitsburg-mdd-2006.