Prager v. LaFaver

103 F. Supp. 2d 1278, 2000 U.S. Dist. LEXIS 10520, 2000 WL 1006066
CourtDistrict Court, D. Kansas
DecidedJune 16, 2000
Docket97-4216-DES
StatusPublished

This text of 103 F. Supp. 2d 1278 (Prager v. LaFaver) is published on Counsel Stack Legal Research, covering District Court, D. Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prager v. LaFaver, 103 F. Supp. 2d 1278, 2000 U.S. Dist. LEXIS 10520, 2000 WL 1006066 (D. Kan. 2000).

Opinion

MEMORANDUM AND ORDER

SAFFELS, District Judge.

This matter is before the court on defendant’s Motion to Dismiss (Doc. 30). This motion pertains only to Count II of the plaintiffs amended complaint. Both parties have fully briefed this issue and the court is now ready to rule.

I. BACKGROUND

Prior to his termination in 1997, the plaintiff had been an Attorney III, classified civil service employee with permanent status with the Kansas Department of Revenue since 1988. On October 31, 1996, the plaintiff delivered a memo to his supervisor, Richard Oxandale, General Counsel for the Department of Revenue, regarding a corporate income tax appeal (“Tax Appeal A”) for which the plaintiff was responsible. The memo stated that the tax laws had been misinterpreted by Mr. Oxandale and the defendant in another tax appeal (“Tax Appeal B”), which was being handled by another attorney in the Department of Revenue. Both Tax Appeal A and Tax Appeal B involved the issue of whether a federal agreement to extend the federal assessment limitation period extends the time period for a Kansas refund claim under Kan.Stat.Ann. § 79-3230(e).

In his memo of October 31, 1996, the plaintiff informed Mr. Oxandale that little or no legal research had been done in arriving at the erroneous interpretation of Kan.Stat.Ann. § 79-3230(e) in Tax Appeal B, resulting in an illegal tax refund of $1.0 million to Taxpayer B. The plaintiffs memo provided three pages of legal analysis, explaining why Kan.Stat.Ann. § 79-3230(e) had been erroneously interpreted by Mr. Oxandale and the defendant in Tax Appeal B. The plaintiffs memo went on to request a meeting with Mr. Oxandale and the defendant to discuss their erroneous interpretation of Kan.Stat.Ann. § 79-3230(e) in Tax Appeal B, and to determine that the law should be properly followed in Tax Appeal A. Mr. Oxandale never arranged such a meeting.

On December 18, 1996, the plaintiff sent a twelve-page letter to Kansas Governor Bill Graves, which included a number of lengthy attachments. The letter to Governor Graves addressed several issues which the plaintiff alleges were of public concern. One of those issues was a well-publicized income tax controversy involving La Siesta Foods, Inc. The plaintiff asserted that the *1280 tax abatement in the La Siesta case was illegal and that the defendant was the one who had agreed to and caused the illegal La Siesta abatement. The plaintiff also asserted that the Kansas Department of Revenue’s administrative process had been circumvented by politics. Finally, the plaintiff expressed his concern over taxpayers’ perception of unfair treatment by the Kansas Department of Revenue.

On January 8, 1997, the defendant sent a letter to the plaintiff, suspending the plaintiff from his employment with pay pursuant to Kan.Admin.Regs. 1-10-7. In the first sentence of this letter, the Secretary stated, “I am in receipt of your unfortunate correspondence to the Governor regarding an array of tax issues at the Department of Revenue.” Referring to the plaintiffs letter to the Governor, the Secretary went on to say, “You have imagined events that did not occur, and you have characterized actions of the Governor and me that I took with full legal advice as ‘illegal’.” The Secretary’s letter further stated:

That you chose to send such a letter to the Governor without discussing it with the General Counsel or me reflects poorly upon your judgment and your willingness and ability to work as a member of this team. Clearly the letter requires a thorough review of matters alluded to in the letter as well as other matters relating to the fairness and propriety of actions the department has taken in corporate tax litigation.

On February 6, 1997, the plaintiff filed a timely appeal with the Kansas Civil Service Board, contending that his suspension by the defendant was contrary to Kan. StatAnn. § 75-2973, the Kansas “whistle-blower” statute. Specifically, the plaintiff contended that his suspension was in retaliation for his reporting to Mr. Oxandale and Governor Graves that the defendant had violated the tax laws in regard to the La Siesta tax case.

On March 17, 1997, the plaintiff sent another letter to Governor Graves, expressing the plaintiffs concerns about a possible illegal tax refund in Tax Appeal A. This same issue had also been the subject of the plaintiffs earlier memo of October 31, 1996, to Mr. Oxandale. The March 17 letter to Governor Graves stated in part:

I am writing to inform you that in a currently pending corporate income tax administrative appeal (“Appeal A”) it is apparent that Secretary LaFaver or Richard Oxandale, or both, intend to act so as to violate the law or violate their legal obligation to the State. The anticipated violation is likely to result in substantial injury to the State through the payment of an illegal refund, which could exceed $1.0 million in Appeal A.
In providing professional, legal representation in the course of my employment with the State of Kansas, the State of Kansas has always been and is my client. While Secretary LaFaver and Mr. Oxandale may have their own opinions regarding the La Siesta appeal, Appeal A and B or other tax appeals, it is my duty to differ with their opinions when they cause the tax laws to be violated. Please act to prevent Secretary LaFaver and Mr. Oxandale from causing an illegal refund to be issued in Appeal A.

The plaintiff sent copies of his March 17 letter to both the defendant and Mr. Oxan-dale.

On May 9, 1997, the defendant sent an eleven-page letter to the plaintiff, advising the plaintiff that he would be terminated from his employment with the Department of Revenue effective May 16, 1997. In the first paragraph of this letter, the Secretary summarized his reasons for discharging the plaintiff, saying:

It is my belief that your actions as an attorney with this Department have evinced an overall lack of judgment, insubordination, violation of confidentiality in revealing private tax matters and matters concerning our former attorney-client relationship, acting contrary to the *1281 interests of your client and exhibiting personal conduct detrimental to the state service which has caused undue disruption of the normal operation and proper functioning of this Department, all and each of which constitutes gross misconduct on your part, and conduct grossly unbecoming an attorney with this Department.

On June 6, 1997, the plaintiff filed a timely consolidated appeal with the Civil Service Board, contending that his suspension and termination from employment were unreasonable and in violation of Kan. Stat.Ann. § 75-2973.

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Bluebook (online)
103 F. Supp. 2d 1278, 2000 U.S. Dist. LEXIS 10520, 2000 WL 1006066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prager-v-lafaver-ksd-2000.