Ellis v. Louisiana Board of Ethics

168 So. 3d 714, 2014 La.App. 1 Cir. 0112, 2014 La. App. LEXIS 3080, 2014 WL 7403822
CourtLouisiana Court of Appeal
DecidedDecember 30, 2014
DocketNo. 2014 CW 0112
StatusPublished
Cited by11 cases

This text of 168 So. 3d 714 (Ellis v. Louisiana Board of Ethics) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellis v. Louisiana Board of Ethics, 168 So. 3d 714, 2014 La.App. 1 Cir. 0112, 2014 La. App. LEXIS 3080, 2014 WL 7403822 (La. Ct. App. 2014).

Opinion

PER CURIAM.

lain this writ application, relator, Bob Ellis (Ellis), seeks review of a ruling of the Louisiana Ethics Adjudicatory Board (EAB) overruling his exception raising the objection of prematurity with respect to charges filed by respondent, the Louisiana Board of Ethics (the Board). For the following reasons, we grant relator’s writ application, reverse the ruling of the EAB, and render judgment sustaining the exception of prematurity and dismissing the charges.

FACTS AND PROCEDURAL HISTORY

On September 20, 2004, Ellis was hired as a New Orleans City Attorney and continued as a full-time, salaried employee with the City Attorney until his resigna[718]*718tion on June 27, 2011. While employed with the City Attorney’s Office, Ellis owned 50% of a consulting company known as Opus Consulting, LLC (Opus). On March 1, 2007, Opus entered into a working agreement with Benetech Group (Ben-etech), wherein Opus was to receive a 6% commission for the development of an exclusive list of projects for Benetech. The term of the agreement was for sixty months, terminating in February 2012.

From January 2008 through August 2008, Opus provided business consulting services to Benetech. Opus allegedly provided no further services to Benetech after August 2008. In October 2008, Benetech provided a $5,000.00 payment to Opus for services rendered. Additionally, Benetech LLC/JRDKS Construction LLC, a joint venture, entered into a contract with the City of New Orleans in October 2008.

On September 15, 2011, the Board voted to conduct a confidential investigation of Ellis for various potential violations of the Code of Governmental Ethics (Code of Ethics) connected to Opus’s contract with Benetech and Benetech’s contract with the City of New Orleans. Over ten months later, on | .-¡August 6, 2012, the Board contacted Ellis to set up an appointment for his first interview, which took place on August 14, 2012. Two days later, on August 16, 2014, at its regularly scheduled meeting, the Board voted to file charges against Ellis for violating provisions of the Code of Ethics, specifically La. R.S. 42:llllC(2)(d) (receipt of a thing of economic Value in the form of compensation for services provided to Benetech) and La. R.S. 42:1112B(5) (participation by Ellis in a transaction involving his governmental entity and Benetech, while Ellis already had an existing contract with Benetech, and where by reason thereof he was in a position to directly affect his own economic interests).1

The Board propounded its first set of discovery on Ellis, on March 12, 2018, and on April 5, 2013, filed a motion to compel discovery, alleging that, in violation of La. C.C.P. art. 1458, Ellis had failed to file any responses. On the same date that the Board filed its motion to compel discovery, Ellis filed a motion to stay | ¿discovery, as well as a motion for summary disposition (i.e., summary judgment)2 and an excep[719]*719tion raising the objection of prematurity. In the motion for summary disposition, Ellis asserted that the Board did not have factual support for any of the essential elements of the alleged violations of the Ethics Code with ydiich he was charged. The exception of prematurity was based on his contention that the charges should be dismissed because the Board did not complete its investigation prior to filing charges against him, which constituted a violation of La. R.S. 42:11410.

Ellis argued that for reasons unattributable to him, the Board did not begin its investigation until approximately a month before the accrual of the applicable one-year prescriptive period provided by La. R.S. 42:1141C(3)(e). He asserts that, in an attempt to prevent the matter from prescribing, the Board voted to file formal charges against him without actually investigating the validity of the charges, and then it endeavored thereafter to combine the investigatory and prosecutorial processes to make its case against him. Ellis argued that if the Board was unable to produce factual support sufficient to satisfy its evidentiary burden at the hearing for summary disposition without relying on his discovery responses to meet this burden, then it is clear that the Board prematurely filed charges prior to the completion of the investigation.

A hearing on the opposing discovery motions and Ellis’ exception of prematurity was held on July 31, 2013, after which the EAB took the matter under | ¡¡advisement. Prior to any ruling by the EAB, this Court issued two decisions involving prescriptive periods contained in the Code of Ethics3

[720]*720On November 7, 2013, the EAB reconvened to continue the hearing on the discovery motions and exception in light of the decisions issued by this Court. All parties were allowed to make further arguments relating to their respective motions, at the conclusion of which the EAB granted the Board’s motion to compel discovery and denied Ellis’ exception of prematurity, stating:

Based on the Sneed decision and the Braud decision, the First Circuit has indicated that its interpretation of the Code of Ethics is that, although there is a provision that allows for ... up to a year for investigation, that provision is not necessarily a provision that allows a full year.

lfiOn that basis, the EAB stated it was in favor of “interpreting the law to give the Board of Ethics more broad discretion to determine when [its investigation is complete and to conduct further discovery if necessary after [charges are filed.]”

On December 26, 2013, the EAB issued the following order granting the Board’s motion to compel discovery and overruling Ellis’s exception of prematurity, stating:

The [Board] has broad discretion under the Code to determine when an investigation is complete for the purpose of issuing charges and filing formal charges with the [EAB].... The Code does not specify how much investigation is required before the [Board] can determine that the investigation is “complete” for purposes of issuing charges.

The EAB further stated that:

La. R.S. 42:1141.4 allows all parties, including the [Board] to conduct discovery for purposes of the hearing. The [Board] propounded discovery requests on Respondent, and Respondent has not timely responded to those requests; therefore, the [Board’s] Motion to Compel is granted.

In this writ application, Ellis seeks reversals of the denial of his exception of prematurity and the granting of the Board’s motion to compel.4

STANDARD OF REVIEW

Pursuant to La. R.S. 42:1143, all proceedings conducted by the Board shall be subject to and in accordance with the Louisiana Administrative Procedure Act, La. R.S. 49:950 et seq. The Administrative Procedure Act specifies that judicial review shall be confined to the record, as developed in the administrative proceedings. La. R.S. 49:964(F). The reviewing court may reverse or modify the Board’s decision if substantial rights of the appellant are prejudiced because the administrative findings, inferences, conclusions, or decisions are: (1) in violation |7of constitutional or statutory provisions; (2) in excess of the agency’s statutory authority; (3) made upon unlawful procedure; (4) affected by other error of law; (5) arbitrary, capricious, or an abuse of discretion; or (6) [721]

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168 So. 3d 714, 2014 La.App. 1 Cir. 0112, 2014 La. App. LEXIS 3080, 2014 WL 7403822, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellis-v-louisiana-board-of-ethics-lactapp-2014.