Mandel v. O'HARA

576 A.2d 766, 320 Md. 103, 1990 Md. LEXIS 108
CourtCourt of Appeals of Maryland
DecidedJuly 27, 1990
Docket33, September Term, 1990
StatusPublished
Cited by39 cases

This text of 576 A.2d 766 (Mandel v. O'HARA) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mandel v. O'HARA, 576 A.2d 766, 320 Md. 103, 1990 Md. LEXIS 108 (Md. 1990).

Opinion

RODOWSKY, Judge.

This case involves public official immunity from liability for common law, nonconstitutional torts. At issue is the extent of the immunity of Governors of Maryland when an alleged tort is based upon their vetoing or approving legisla *105 tion. For the reasons set forth below we hold, as a matter of Maryland common law, that the immunity applicable to the gubernatorial veto/approval function is, civilly, as complete an immunity as that which protects members of the General Assembly when voting for or against legislative bills. Under that type of immunity damages in tort may not be awarded against either a Governor or a member of the legislature based upon what a court or jury believes were the motives underlying the public official’s exercise of these functions.

Appellees, James F. O’Hara, III and Michael P. O’Hara (the O’Haras), are the remaining plaintiffs in this suit which was instituted in 1978. They were stockholders in the corporation which owned the Marlboro racetrack. Their complaint now consists of one count alleging that common law deceit was practiced upon them in the December 31, 1971, sale of their Marlboro stock. In a previous appeal in this case, we reversed a summary judgment in favor of the defendants based on limitations. O’Hara v. Kovens, 305 Md. 280, 503 A.2d 1313 (1986). 1

Defendants in this action (collectively, the Kovens Group) include former Governor Marvin Mandel, the instant appellant.

Certain undisputed background facts are set forth in O’Hara.

“Prior to, or during, the 1971 session of the Maryland General Assembly, Marlboro and an entity (Hagerstown) which also conducted horse racing with parimutuel betting had agreed that Hagerstown would sell to Marlboro eighteen racing days theretofore utilized for the Hagerstown meeting. Those eighteen days, together with eighteen days previously allocated to Marlboro, would allow thirty-six days of racing by Marlboro. Transfer of the Hagerstown days was subject to legislative approval. *106 Approval at either the 1971 or 1972 session of the Maryland General Assembly would have satisfied the approval condition in the contract. H.B. 1128, enacted at the 1971 legislative session, conferred the necessary approval. On May 28,1971, then Governor Mandel, expressing concerns about the wisdom and constitutionality of the legislation, vetoed H.B. 1128. Following the sale by the plaintiffs of their stock in Marlboro the General Assembly on January 12, 1972, overrode the veto____ In December 1972 Marlboro merged with another corporation (Bowie) which conducted horse racing with parimutuel betting at the Bowie racetrack. On November 24, 1975, the federal government filed indictments against Governor Mandel and others ... of the Kovens Group.”

305 Md. at 283-85, 503 A.2d at 1314-16 (footnote omitted). 2

Our opinion in the earlier appeal explained the theory of the plaintiffs’ case to be

“that there was a conspiracy between Governor Mandel and others of the Kovens Group which antedated May 28, 1971. Plaintiffs in essence contend that the alleged conspirators planned (1) to have the Mandel veto depress the value of Marlboro stock below the price it would have commanded had H.B. 1128 been signed into law, (2) to acquire the stock at a depressed price, and then (3) to restore its value by having Governor Mandel ‘himself and *107 through his agents’ induce the General Assembly to override the veto.”

Id. at 286, 503 A.2d at 1316. On that previous appeal the only issue related exclusively to the limitations defense. We were not presented any issues concerned “with the sufficiency of any undisputed facts to prove any element of plaintiffs’ deceit theory, or whether any alleged facts, if proved, would establish a cause of action.” Id.

After our remand Governor Mandel moved for summary judgment on the ground of absolute immunity. The trial court denied that motion. Governor Mandel noted an appeal to the Court of Special Appeals and sought a stay which that court granted. He also petitioned this Court for certiorari. We issued the writ prior to any determination on the merits by the Court of Special Appeals in order to decide this question of public importance.

The parties agree that a Governor of Maryland, if performing gubernatorial duties involving the exercise of discretion, enjoys a degree of public official immunity. They disagree over whether an absolute or qualified immunity applies here. An absolute immunity from tort liability “stands even if the official acts in bad faith, or with malice or corrupt motives.” Prosser & Keeton on Torts, § 132, at 1057 (5th ed. 1984) (footnote omitted) (Prosser). “[Qualified immunity is usually destroyed by ‘malice,’ bad faith or improper purpose[.]” Id. at 1059-60 (footnotes omitted).

Absolute “immunity protects both judges and legislators, so long as their acts are ‘judicial’ or legislative in nature and within the very general scope of their jurisdiction.” Prosser at 1056-57 (footnotes omitted). And see Restatement (Second) of Torts § 895D, comment c, at 412 (1977) (a judge or a legislator “is not liable for [that official’s] discretionary acts or omissions even though [the official] is found to have acted with malicious or other improper motives”). “The policy is to free the officer from the necessity of submitting [the officer’s] purposes, motives and beliefs to the uncertain appraisal of juries or even judges.” Id.

*108 Determining immunity defenses at any given point across the wide range of various duties performed by the vast numbers of officials and employees in the executive branch of federal, state and local governments is by no means as relatively clear-cut as determining legislative and judicial immunities. The Restatement's attempt at generalization is that “[a] high-level executive officer is usually accorded the same type of immunity as that given the judge and for the same reasons.” § 895D, comment d, at 413. The high-level executive must feel free to make discretionary decisions “without being subject to influence by the threat of a harassing suit.” Id. Immunity “is not confined to the executive officials who are at the highest level.” Id. There are many situations, some giving rise to absolute immunity, others qualified immunity and still others only a defense based on reasonableness of the decision. Id. at 413-15. Prosser’s attempt at generalization is that, in most states, officials and employees of the executive department, with respect to state law claims against them, “enjoy no immunity at all for ministerial acts and only a qualified immunity on matters calling for the officer’s discretion.” Prosser, at 1059 (footnote omitted).

In the case before us Governor Mandel attempts to avoid the thicket which is the law of immunities resting solely on executive department duties.

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Bluebook (online)
576 A.2d 766, 320 Md. 103, 1990 Md. LEXIS 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mandel-v-ohara-md-1990.