Kilmer v. Dillingham City School District

932 P.2d 757, 1997 Alas. LEXIS 24
CourtAlaska Supreme Court
DecidedFebruary 14, 1997
DocketS-5674, S-5694
StatusPublished
Cited by15 cases

This text of 932 P.2d 757 (Kilmer v. Dillingham City School District) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kilmer v. Dillingham City School District, 932 P.2d 757, 1997 Alas. LEXIS 24 (Ala. 1997).

Opinions

OPINION

EASTAUGH, Justice.

I. INTRODUCTION

Henry Kilmer, former superintendent and principal of the Dillingham City School District (District), appeals a superior court decision upholding the decision of the Dillingham City School Board (Board) to terminate his employment for good cause.

The superior court held that Kilmer’s lawsuit was properly an administrative appeal and that the appeal could proceed although it was filed more than thirty days after the Board decided to terminate his employment. Having converted his claim to an administrative appeal, the court held that Kilmer had no right to a jury trial. Kilmer appeals both the court’s decision finding the Board had [759]*759good cause and its decision converting his case to an appeal. The District appeals the court’s decision to waive the time limit for filing an administrative appeal. We affirm.

II. FACTS AND PROCEEDINGS

Kilmer began work as assistant superintendent for the Dillingham City School District in 1982 and became superintendent in 1984. In 1987 Kilmer and the District extended his contract for two years. The contract provided that “[e]ither party may terminate this contract for good cause. With regard to terminating the Superintendent, good cause shall include, but not be limited to, the grounds set forth in [AS] 14.20.170.”1 The parties later agreed that under the contract “good cause” would include the statutory causes or “offenses similar to those enumerated in the statute.” The agreement also provided that Kilmer “waive[d] any rights as set forth in [AS] 14.20.095 through [AS] 14.20.210, inclusive thereof,”2 and waived any right to the District’s grievance procedures. The contract also stated that “[n]evertheless, the Superintendent shall have the right to address the Board concerning any aspect of the Superintendent’s contract or concerning possible termination of the contract.”

On January 4, 1988, the parties renewed Kilmer’s contract for three years. Kilmer drafted an addendum (Addendum One) that purported to memorialize the parties’ agreement. Addendum One was approved by Board President H. Sally Smith and School Board Clerk Joyce Armstrong and was included in minutes later approved by the Board. It provided:

The following changes were approved at the January 4, 1988 Regular School Board Meeting:
1) Renew Superintendent’s Contract for 3 years.
2) No salary determination at this time.
3) The use or reimbursement of all unused leave days at any time.

Pursuant to Addendum One, Kilmer cashed in $19,200 in unused leave during the 1988 fiscal year and another $5,100 in unused leave in June 1989.

Near the end of the 1987-88 school year, Dillingham’s high sehool/middle school principal announced his retirement, effective at the end of the school year. As superintendent, Kilmer attempted to locate another principal. The Board interviewed, but rejected, two local candidates.

On July 16,1988, the Board met in special session to determine what to do about the vacant principal position. Board member Jackson McCormick was not present. Kil-mer and the Board agreed that Kilmer would act in a dual role as superintendent and principal. The parties agreed that Kilmer would receive additional compensation for these extra duties. Kilmer suggested that the Board retroactively purchase pension benefits for him under the Alaska Teachers’ Retirement System (TRS).3 At the time, the parties did not know the precise cost of purchasing the retirement years for which Kilmer was eligible. Kilmer testified that he informed the Board that the cost of purchasing half of the years for which he was eligible would be $30-40,000. Board members testified later, and the trial court found, that the Board believed it had agreed to pay Kilmer [760]*760an additional $30,000 for the 1988-89 school year. The parties agreed that if the arrangement worked out, it would be repeated the following year, for a total of ten years of purchased credit.

Kilmer drafted a second contract addendum (Addendum Two). It stated:

The following changes were approved at the July 16, 1988 Regular School Board Meeting:
1. Base Salary for FY 89 will remain the same as in FY 88.
2. A net sum equal to back retirement years will be paid the Superintendent divided over two years upon assuming the Principal duties.

Board members Smith and Armstrong approved Addendum Two on August 5. The same day, the Board conferred upon giving Kilmer the principal’s position. The Board approved the July 16 and August 5 meeting minutes at the regular August 15 meeting.

The District business manager, Marie Wheeler, consulted a six-month old TRS report and determined that the cost of purchasing five years of credit would be approximately $50,000. Kilmer received this amount in two lump sums, receiving $25,000 on August 11, and, after Wheeler had consulted with TRS and determined the exact cost of purchasing five years of pension credit, Kil-mer received a second cheek, for $24,581, on November 7. Both checks were made out by business manager Wheeler and signed by Board member Shirley Wiggins.

Kilmer did not use this money to purchase past retirement years in TRS. Without telling the Board, Kilmer put the funds into money market accounts and later used them to purchase a travel agency in Oregon. The public was not aware that Kilmer was to receive additional benefits for filling the principal’s position.4

In January 1989 the Board conducted an evaluation of Kilmer which was very positive. In March Kilmer’s principal’s compensation became public knowledge. There were complaints about the compensation during Board meetings and Kilmer stated that “he and the Board need[ed] to sit down and clarify the intent of the [B]oard as to what the compensation was to be.” Board member McCormick launched a recall petition against Board President Smith and Board members Armstrong and Wiggins.

The Board retained an accounting firm to report on the compensation issue. The accountants concluded that the language of Addendum Two was authorized by the motion which the Board had approved in July 1988 and that “it appears that the school board intended to pay the superintendent a lump sum” sufficient to pay for five years of pension credit. The accountants also concluded that the amount of money Kilmer received was consistent with a “reasonable interpretation” of the Addendum. The accountants, however, were not asked to determine if the language of Addendum Two reflected the Board’s intent.

In early April 1989 Kilmer and several Board members met in private to discuss the extra compensation issue, and Kilmer agreed to reimburse the District so that his additional compensation would be reduced to the $30,000 that Board members insisted they had agreed to pay him. Kilmer announced his promise to reduce his principal’s compensation to $30,000 that same day at a public Board meeting.

McCormick’s recall efforts continued, and in late April his lawyer wrote a letter stating that the Board could be sued to recover Kilmer’s principal’s compensation.

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

Related

Marybeth J. v. Troy T.
Alaska Supreme Court, 2023
David Griffith v. Roger Hemphill and Donald Davis
521 P.3d 584 (Alaska Supreme Court, 2022)
Laidlaw Transit, Inc. v. Anchorage School District
118 P.3d 1018 (Alaska Supreme Court, 2005)
Sprucewood Investment Corp. v. Alaska Housing Finance Corp.
33 P.3d 1156 (Alaska Supreme Court, 2001)
Nickels v. Napolilli
29 P.3d 242 (Alaska Supreme Court, 2001)
Mapco Express, Inc. v. Faulk
24 P.3d 531 (Alaska Supreme Court, 2001)
Youvella v. Dallas
2 Am. Tribal Law 369 (Hopi Appellate Court, 2000)
American Computer Institute, Inc. v. State
995 P.2d 647 (Alaska Supreme Court, 2000)
In Re Helm
982 P.2d 1236 (Wyoming Supreme Court, 1999)
Linstad v. Sitka School District
963 P.2d 246 (Alaska Supreme Court, 1998)
Pieper v. Musarra
956 P.2d 444 (Alaska Supreme Court, 1998)
Kilmer v. Dillingham City School District
932 P.2d 757 (Alaska Supreme Court, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
932 P.2d 757, 1997 Alas. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kilmer-v-dillingham-city-school-district-alaska-1997.