Mason v. Oklahoma Turnpike Authority

115 F.3d 1442, 1997 WL 311606
Court of Appeals for the Tenth Circuit·Decided June 11, 1997·No. Nos. 96-6065, 96-6069·Published·Cited by 14 cases

Opinion

STEPHEN H. ANDERSON, Circuit Judge.

Following his discharge on March 22,1993, from the Oklahoma Turnpike Authority (“OTA”), Plaintiff Ronald Mason filed suit against the OTA, the OTA’s Managing Director Terry Young, Young’s principal assistant James Beach, all six OTA members (John Gibbs, Gilbert Gibson, Mick LaFevers, James Orbison, James Scott, and Sam Scott), the OTA’s Director of Human Resources Alan Freeman, the OTA’s outside general counsel Thomas Hilbome, and the Oklahoma Secretary of Transportation Delmas Ford. Mason alleged, pursuant to 42 U.S.C. § 1983, that his discharge violated his constitutional rights to free speech, free association, and due process. As pendent state law claims, Mason also alleged breach of contract, promissory estoppel, wrongful discharge in violation of public policy, fraud, tortious interference with employment contract, and violation of an Oklahoma worker’s hiring statute.

Pre-trial proceedings eliminated most of Mason’s claims. By first amended complaint, Mason dropped his free speech claim. He voluntarily dismissed Delmas Ford and Thomas Hilbome with prejudice. Upon the defendants’ motion, the district court then granted summary judgment dismissing an additional seven defendants and several of Mason’s claims. Thus, at the time of trial, only three claims and three defendants remained: (1) a section 1983 political patronage (free association) claim against the OTA, Sam Scott, and Terry Young; (2) a wrongful discharge in violation of public policy claim against the OTA, Sam Scott, and Terry Young; and (3) a tortious interference claim against Sam Scott.

Following trial, the jury found for Mason on all claims, awarding him compensatory and punitive damages. The district court denied the defendants’ post-trial motions for judgment as a matter of law and a new trial, but altered the judgment to eliminate duplication in the punitive damage awards. The district court also denied Mason’s motion for a new trial on the issue of compensatory damages. On appeal, the defendants1 seek reversal of the jury verdict or at least a further reduction in the punitive damage awards. On cross-appeal, Mason seeks a new trial on the issue of compensatory damages, as well as reversal of the district court’s alterations to the punitive damage [1447]*1447awards. We affirm in part, reverse in part, and stay Mason’s cross-appeal in part.

BACKGROUND

The OTA is an instrumentality of the state of Oklahoma responsible for constructing and operating the State’s turnpike system. The OTA is directed by six Authority members who are appointed by the Governor from separate geographical districts and confirmed by the state senate. These members serve at the Governor’s pleasure and are not compensated. The Governor is an ex-officio Authority member. During the periods relevant to this litigation, David Walters was the Democratic Governor of Oklahoma, and Defendant Sam Scott was an OTA member appointed by Governor Walters.

Operating the turnpikes requires a considerable workforce. Most OTA employees serve in “classified,” terminable-for-cause positions which, pursuant to Oklahoma’s civil service law, may be filled only after advertisement and a competitive application process. Some positions within the OTA, however, are exempt from the civil service laws. Exempt positions may be filled without advertisement or examination, and exempt employees may be terminated at will. For instance, the OTA’s highest-ranking executive, the Managing Director, is exempt and terminable at will. The Managing Director’s principal assistant also is an exempt employee. The Governor may create an additional exempt position ad hoe by issuing what is known as a “Governor’s letter.”

In 1988, the OTA members hired Richard Ridings as Managing Director.2 Upon assuming his office, Ridings obtained the resignation of the previous Managing Director’s principal assistant, and offered the position to Plaintiff Mason. Ridings knew Mason because they had worked together in Oklahoma City government, where Mason had served as the City’s finance director. Ridings wanted Mason to work at the OTA because Ridings believed Mason’s financial expertise would prove valuable to the OTA as it prepared to undertake a major bond issue. Ridings changed the title of principal assistant to Chief Financial Officer, and Mason accepted the position on April 18,1990. It is undisputed that Mason always performed satisfactory, if not excellent, work at the OTA, and that his employment record is free of any misconduct.

At trial, the parties sharply disputed the motivation behind Mason’s eventual discharge. Mason, a political independent, contended he was discharged for at least three reasons: first, to make room for the political patronage hiring of his successor, James Beach; second, in retaliation for his opposition to the proposed illegal hiring of James Beach; and third, in retaliation for his opposition to the proposed illegal construction of the Coweta Toll Plaza from surplus OTA funds. Defendants strenuously denied any such motivations, testifying instead that Mason’s discharge resulted solely from Terry Young’s independent decision to reorganize the OTA upon his appointment as Managing Director. In order to provide context for the issues raised on appeal, we briefly summarize the parties’ competing versions of events.

A. Mason’s Version of Events

At trial, Mason elicited testimony which, if believed, established the following facts. Late in Richard Ridings’ term as Managing Director, OTA member Sam Scott began pressuring Ridings to find work at the OTA for James Beach, a long-time, active Democratic supporter who was experiencing health problems and badly needed both a job and health benefits. App. Vol. Ill at 728.9. Governor Walters’ chief of staff, Jerry Goodman, also pressured Ridings to hire Beach. Id. at 843. Succumbing to this pressure, Ridings asked Mason to interview Beach and hire him on a temporary contract. Ridings described Sam Scott to Mason as an “old-guard type politician” who believed in political patronage hiring. Id. at 728.10. Although Mason did not consider Beach particularly qualified for any available position at the OTA, Ridings told Mason to hire Beach on a temporary contract because they “needed to keep in good standing with the Democrats [1448]*1448who were in the administration at that point.” Id.

As Beach’s temporary contract neared expiration, Scott pulled Mason into an office and asked if Mason had found a way to permanently employ Beach. Mason expressed his opinion to Scott that the OTA could not lawfully hire Beach to a permanent position because all the exempt positions were filled and Beach had not satisfied the requirements for hiring under the civil service system. Scott replied, “Horse manure. I don’t care what the problem is, I want you to hire Mr. Beach or he’ll have your job one of these days.” Id. at 729-30. Not long after this conversation, Ridings received instructions from OTA member James Orbison to hire Beach as an independent contractor to work in the area of patron services and community relations. Beach received such a contract, even though Ridings considered it political patronage and a waste of OTA resources. Beach’s status as an independent contractor, however, was still temporary and did not entitle him to health benefits.

In December 1992, Ridings left the OTA to enter private business.

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Mason v. Oklahoma Turnpike Authority, 115 F.3d 1442, 1997 WL 311606 (10th Cir. 1997).

115 F.3d 1442 (Mason v. Oklahoma Turnpike Authority) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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Mason v. Oklahoma Turnpike Authority
115 F.3d 1442 (Tenth Circuit, 1997)