Kistler v. Commonwealth, State Ethics Commission

22 A.3d 223, 610 Pa. 516, 2011 Pa. LEXIS 1420
CourtSupreme Court of Pennsylvania
DecidedJune 22, 2011
Docket59 MAP 2009
StatusPublished
Cited by14 cases

This text of 22 A.3d 223 (Kistler v. Commonwealth, State Ethics Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kistler v. Commonwealth, State Ethics Commission, 22 A.3d 223, 610 Pa. 516, 2011 Pa. LEXIS 1420 (Pa. 2011).

Opinions

OPINION

Justice McCAFFERY.

The State Ethics Commission (hereinafter “the Commission”) appeals from the order of the Commonwealth Court reversing the Commission’s determination that Kenneth Kistler (hereinafter “Appellee”) had violated two provisions of the Public Official and Employee Ethics Act (hereinafter “Ethics Act”).1 We affirm.

The following summary of the relevant facts is excerpted from the Commonwealth Court opinion and the Commission’s final adjudication. Kistler v. State Ethics Commission, 958 A.2d 1092 (Pa.Cmwlth.2008); Final Adjudication of the State Ethics Commission, dated 6/29/07 (hereinafter “Commission’s Adjudication”). Appellee was a member of the Carbon-Le-high Intermediate Unit (hereinafter “CLIU”) Board of Directors (hereinafter “the Board”),2 serving, from January 1998 until March 18, 2002,3• as chairman of the building committee, [519]*519which was charged with pursuing the Board’s interest in various construction projects. In addition, Appellee is the owner and president of two businesses, Kistler Building Supply, Inc., and Kistler Pole Building Company.

In late 1999, the Board began to explore the possibility of constructing a garage in which to house its buses. Staff member Robert J. Keegan, Jr., was placed in charge of the garage construction project, and in June 2001, he began discussions concerning the project with Dale Roth, an architect who had previously worked for the CLIU. Sometime between February 2002, and March 18, 2002, Mr. Roth told Appellee that the design for the planned garage might involve a pole building,4 and Appellee agreed to provide pricing and planning information for the project. Subsequently, Appellee informed the executive director of the CLIU that he was resigning from the building committee because of his possible business involvement with construction of the garage. At the March 18, 2002 meeting of the Board, Appellee’s resignation from the building committee was accepted. The solicitor for the CLIU opined that, although Appellee could properly participate in the construction of the garage, he should abstain from any votes of the Board relating to that project. The Board, with Appellee abstaining, voted to make Mr. Roth’s architectural firm, known as Roth Marz Partnership, its agent in pursuing a lease-purchase agreement for the proposed garage site.

In May 2002, Mr. Roth made an initial commitment to Appellee that Kistler Pole Building Company, Appellee’s business, would be chosen to construct the garage. The construction arrangements were formalized on July 12, 2002, with a written contract between Kistler Pole Building Company and Cornerstone LLC, another of Mr. Roth’s businesses. At its July 15, 2002 meeting, the Board, with Appellee again abstain[520]*520ing, approved a sales agreement, a lease agreement, and an option agreement with Cornerstone LLC. Appellee filed two conflict of interest abstention memoranda, both dated August 19, 2002, explaining that he had abstained from Board votes on March 18, 2002, and July 15, 2002, because of his company’s possible participation in the construction of the garage. Kistler Pole Building Company started construction of the garage in September 2002, and completed the project in February 2003.

While planning the garage construction, the Board was also occupied with a second facility, the Lehigh Learning and Adjustment School (hereinafter “the School”). On June 17, 2002, after it became apparent that the building in which the School was then housed had a mold problem, the Board terminated its lease and authorized Mr. Roth to pursue construction of a new facility. Appellee voted in favor of both of these actions. In April 2003, after Appellee learned that Mr. Roth was considering a pole building design for the School, Appellee ceased any involvement with the Board on the School project. At a meeting on October 20, 2003, the Board authorized Mr. Roth to begin construction of the School, and on May 17, 2004, the Board approved a lease agreement between Mr. Roth and the CLIU for the School. Appellee abstained from both votes. On June 17, 2004, Appellee and Mr. Roth executed an agreement under which Kistler Pole Building Company would construct the building for the School.

By letter dated August 4, 2004, the Commission notified Appellee that he was being investigated for possible violations of the Ethics Act. Appellee contacted counsel, specifically, the law firm of the CLIU solicitor, to inquire as to whether he would be in violation of the Ethics Act if he were to fulfill his contractual obligations to construct the School. In a letter dated August 27, 2004, counsel opined that Appellee had not violated the Ethics Act. Appellee then began construction of the School in September 2004, and completed it in January 2005.

The Commission held hearings concerning its allegations against Appellee, and thereafter concluded that Appellee had [521]*521unintentionally violated the Ethics Act via three actions. First, the Commission determined that Appellee had "violated subsection 1103(a), the conflict of interest provision, on June 17, 2002, when he had voted to authorize Mr. Roth to pursue construction of the School while simultaneously seeking a subcontract from Mr. Roth for construction of the garage. In addition, the Commission determined that Appellee had violated subsection 1103(f) by entering into subcontracts with Mr. Roth’s businesses for construction of the garage and the School, respectively on July 12, 2002, and on June 17, 2004, because the Board had not solicited and accepted competitive bids prior to awarding the contracts to Mr. Roth. The Commission concluded that all the alleged violations were unintentional because Appellee had voted and had entered into the subcontracts in reliance on the solicitor’s legal advice.

The Commonwealth Court reversed in a published opinion in which it concluded that Appellee had not intended his June 17, 2002 vote on the School to lead to his subcontract with Mr. Roth for construction of the garage, and that there was no evidence that the vote did indeed lead to the garage subcontract. Kistler, 958 A.2d at 1100 & n. 15. In addition, the Commonwealth Court concluded that the Ethics Act, with its requirement of “an open and public process” in subsection 1103(f), did not mandate use of a competitive bidding process. Id. at 1098.

We granted the Commission’s Petition for Allowance of Appeal as to the following questions:

a. Whether a public official may violate § 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), despite lacking the intent to use his office for private pecuniary gain.
b. Whether § 1103(f) of the Public Official and Employee Ethics Act requires competitive bidding.

Kistler v. State Ethics Commission, 601 Pa. 314, 972 A.2d 482 (2009).

Both of the questions presented are issues of statutory interpretation, specifically of the Ethics Act. Statutory inter[522]*522pretation is a question of law, for which our standard of review is de novo, and our scope is plenary. St. Elizabeth’s Child Care Center v. Department of Public Welfare, 600 Pa.

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Kistler v. Commonwealth, State Ethics Commission
22 A.3d 223 (Supreme Court of Pennsylvania, 2011)

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Bluebook (online)
22 A.3d 223, 610 Pa. 516, 2011 Pa. LEXIS 1420, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kistler-v-commonwealth-state-ethics-commission-pa-2011.