Knox v. Board of School Directors of Susquenita School District

888 A.2d 640, 585 Pa. 171, 23 I.E.R. Cas. (BNA) 1577, 2005 Pa. LEXIS 3097
Supreme Court of Pennsylvania·Decided December 28, 2005·No. 55 MAP 2004·Published·Cited by 20 cases

Opinions

OPINION

Justice CASTILLE.

In this appeal, this Court examines whether the job removal protections outlined in Section 10-1089(c) of the Public School Code of 1949 (the “Code”), 24 P.S. § 1-101 et seq.,1 which governs school “business administrators,” apply where a business administrator, who worked without a written contract of employment for a number of years, is informed by the school [174] district that his employment is being terminated at the end of the fiscal year. A divided panel of the Commonwealth Court held that Section 10 — 1089(c) had no application at all because it governs only written employment agreements and appellant in the case sub judice did not have such a written agreement. This Court disagrees with that broad holding and, for the reasons set forth below, we vacate the order below and remand the matter to the Commonwealth Court for proceedings consistent with this Opinion.

The parties stipulated to the following facts: On September 15, 1987, appellant became the business manager of the Susquenita School District in Perry County (“School District” or “District”), a position that the parties agreed falls within the Code’s definition of “business administrator.” On March 16, 1988, the District’s Board of School Directors (“Board” or “appellee”) formally notified appellant by letter that he had been elected to a three-year term of employment, commencing the prior September 15, and running to September 15, 1990. Appellant was advised to sign and return an attachment to the letter, but neither party was able to locate such a document and appellant could not recall if he had signed it. At the end of the original three-year term of employment, the Board took no further action to define the term of appellant’s position, or the conditions of renewal, but appellant continued to serve as the District’s business manager.

Some seven years later, on June 10, 1997, the Board passed a resolution stating that appellant’s term of employment would expire on June 30, 1997, and that the Board would not extend or renew appellant’s term of employment beyond that date. The resolution directed the School Superintendent to notify appellant of the decision and also announced that the Board would seek a new business manager. On June 11, 1997, Susquenita School Superintendent Mark T. Dietz sent a Memo to appellant advising him of the Board’s determination “that your term of employment will expire as of June 30, 1997.”

By counseled letter dated June 23, 1997, appellant attempted to appeal the Board’s decision, requesting a hearing and a bill of particulars concerning the reasons for the Board’s [175] determination. The Board refused to provide a hearing or a bill of particulars. In the meantime, on or about June 20, 1997, appellant applied to the Public School Employees Retirement System for a lump sum retirement payment. Thereafter, in May of 1998, the School District formally abolished the position of business manager; from July 1, 1997 until September of 2000, the duties of the business manager were performed by an outside consultant.

On July 9, 1997, appellant filed a petition for review of the School Board’s job termination action in the Court of Common Pleas. Following a hearing on September 18, 2000, the trial court filed an order and memorandum opinion in which it concluded, inter alia, that appellant had a property interest in his job as business manager in light of Section 10-1089 of the Code. Section 10-1089, which is entitled simply, “Business Administrator,” provides as follows:

(a) A governing board of a school entity may employ or continue to employ a person serving in the function of business administrator of the school entity who shall perform such duties as the governing board may determine, including, but not limited to, the business responsibilities specified in section 433 of this act.
(b) The governing board may enter into a written employment agreement with a person hired after the effective date of this section to serve as a business administrator or into an amended or renewed agreement with a person serving in that function as of such effective date. The agreement may define the period of employment, salary, benefits, other related matters of employment and provisions of renewal and termination of the agreement.
(c) Unless otherwise specified in an employment agreement, the governing board shall, after due notice, giving the reasons therefor, and after hearing if demanded, have the right at any time to remove a business administrator for incompetency, intemperance, neglect of duty, violation of any of the school laws of this Commonwealth or other improper conduct.
[176] (d) A person serving as business administrator shall not be a member of the governing board of the school entity.
(e) A person serving as business administrator may serve as secretary or treasurer of the governing board.
(f) For purposes of this section, the term “school entity” shall mean a school district, intermediate unit or an area vocational-technical school. The term “governing board” shall mean the board of directors or joint board of such entity.

24 P.S. § 10-1089. The trial court determined from the stipulated facts that appellant was a business administrator as defined in the statute, and that even though there was no written employment agreement in effect at the time of his termination, the due process protections governing “removal” which are set forth in Section 10-1089(c) were applicable. Accordingly, the trial court ordered that the Board, “schedule a hearing ... and make a determination as to whether or not the business manager should be dismissed for cause.”

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Knox v. Board of School Directors of Susquenita School District, 888 A.2d 640, 585 Pa. 171, 23 I.E.R. Cas. (BNA) 1577, 2005 Pa. LEXIS 3097 (Pa. 2005).

888 A.2d 640 (Knox v. Board of School Directors of Susquenita School District) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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