Holub v. Gdowski

802 F.3d 1149, 2015 WL 5603922
CourtCourt of Appeals for the Tenth Circuit
DecidedSeptember 24, 2015
Docket14-1419
StatusPublished
Cited by8 cases

This text of 802 F.3d 1149 (Holub v. Gdowski) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holub v. Gdowski, 802 F.3d 1149, 2015 WL 5603922 (10th Cir. 2015).

Opinion

MORITZ, Circuit Judge.

After Adams 12 Five Star Schools terminated Gina Holub’s employment as an internal auditor for the School District, she brought this action against the School District and two of its officials, Superintendent Chris Gdowski and Chief Financial Officer Shelley Becker. Holub raised First Amendment and state law claims, alleging the defendants terminated her employment in retaliation for her attempts to uncover and report fraudulent budgeting practices. The district court granted summary judgment for the defendants on all of Holub’s claims.

In this appeal, Holub argues the district court erred in concluding that when she discussed her concerns with two School District board members, she spoke as an employee rather than a citizen and thus her speech was not protected by the First Amendment. Citing Lane v. Franks, — U.S. -, 134 S.Ct. 2369, 189 L.Ed.2d 312 (2014), Holub contends she spoke as a citizen because her speech was not ordinarily within the scope of her job responsibilities. But we conclude that because Ho-lub’s responsibilities as an internal auditor for the District included discovering and reporting accounting and budgeting issues, her comments to the Board members concerning her budget findings were made pursuant to her official duties and were not protected. We also affirm the district court’s grant of summary judgment on Ho-lub’s state law claims. As the district court found, the record contains no controverted material facts to support Holub’s claim that her termination resulted from an ongoing effort to conceal her budget findings.

Background

Gina Holub began employment as an internal auditor for the School District in 2007. She reported to the Chief Financial Officer and her responsibilities included evaluating the District’s internal accounting and operating controls, reviewing financial information, and reporting any irregularities. Her contract specified she could be terminated for cause.

In late 2011 the District hired a new CFO, Shelley Becker, who implemented measures to increase the accuracy of the District’s budget. At Becker’s request, District employee Tracey Cantrell ana *1152 lyzed the District’s salary expenses. Cantrell determined the salary budget included $12 million more in funding than required to pay the number of full-time District employees (FTEs). Cantrell reported her findings to Becker and when Becker failed to address the issue, Cantrell brought her findings to Holub’s attention.

Holub agreed with Cantrell’s conclusion, except Holub identified $17 million rather than $12 million in unsupported salary expenses. Holub believed her findings were significant because they impacted the Board’s requirement that the District’s budget include a 10% reserve. While the budget appeared to satisfy this requirement, if the salary budget included $17 million more than necessary to pay salary expenses, the District had greater budget reserves than appeared in the budget. According to Holub, the District’s concealment of this excess reserve hindered interest groups, such as the teachers’ union, from advocating for increased salaries, benefits, or classroom spending. Holub conveyed her findings to District superintendent Chris Gdowski, who advised her to speak to her supervisor, Becker, about her concerns.

About the same time that Holub raised her budget concerns, she expressed to Gdowski that she felt she should not be reporting to the CFO because it created a conflict of interest. Gdowski asked Holub to research whom she should be reporting to and get back to him. Holub’s research indicated that as an internal auditor, she should report to senior management, which included Becker, and to the Board. After reporting this information to Gdow-ski, Holub remained under Becker’s supervision.

District employees held four separate meetings in July 2012 and August 2012 to discuss Holub’s concerns. Becker, supported by other staff members, explained to Holub that she had erred in her analysis by incorrectly assuming the salary budget included only base salaries, or FTEs. Becker explained that Holub had not considered many other salary budget items, including overtime pay and coaching stipends, which accounted for the greater budgeted amount. This information satisfied Gdowski that Holub’s concerns were unfounded.

But Holub was not satisfied. A few days after the final meeting, Holub approached the Board’s president, Mark Clark, and advised him of her views regarding the inflated salary budget. She told Clark she was worried she would be retaliated against for reporting to him, but Clark responded that she was doing the job she was hired to do.

Two days later, Gdowski introduced Ho-lub to the Board and indicated that as an internal auditor, Holub could be a resource for the Board. About a week later, Holub again emailed Gdowski, reiterating her view that the District’s salary budget had been inflated and asking to present her findings to the full Board. Gdowski responded that based on the information Ho-lub had presented, he believed Holub’s concerns were unfounded and he would not recommend that the Board hear her concerns in a public meeting. But Gdowski did agree to ask Clark if he would meet with Holub and, if so, whether other Board members would be present.

Before any meeting had been arranged, Holub prepared and delivered a memorandum to Gdowski in which she cited accounting standards and state law and asserted the District had acted illegally and unethically in concealing excess budget reserves. Because Holub alleged state law violations, the District hired independent expert Vody Herrmann, a former Assistant for Public School Finance with the Colorado Department of Education, to re *1153 view the budget. The District gave Holub access to Herrmann and permitted Holub to provide documents for Herrmann to review.

But even before Herrmann completed her review, Holub insisted in an email to Gdowski that if Herrmann disagreed with her conclusions, Holub had a responsibility to present her concerns to the Board. The District’s general counsel responded, advising Holub that the Board was aware of her concerns, that her responsibility was to raise concerns to management, and that after receiving the independent review, the Board would determine whether any further action was necessary.

About three weeks later, Herrmann presented her findings to Holub, Gdowski, and Becker. Although Herrmann reported that some District budgeting practices could be improved, she explicitly concluded that Holub’s concerns regarding an inflated salary budget were unfounded.

Shortly after that meeting, Holub met with two Board members, Fred Schaefer and Max Wilsey, at Schaefer’s home office. She explained to them her concerns that the salary budget had been inflated and said that she’d approached them, in spite of potential retaliation, because she believed she had a duty to report inappropriate management actions to the Board. Schaefer agreed she was fulfilling her duties to the District. Following this meeting with Holub, Schaefer and Wilsey met with Gdowski to discuss Holub’s concerns. Both Board members left that meeting satisfied that Holub’s concerns were unfounded.

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Cite This Page — Counsel Stack

Bluebook (online)
802 F.3d 1149, 2015 WL 5603922, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holub-v-gdowski-ca10-2015.