Rebottini v. State Ethics Commission

634 A.2d 743, 160 Pa. Commw. 157, 1993 Pa. Commw. LEXIS 716
CourtCommonwealth Court of Pennsylvania
DecidedNovember 23, 1993
DocketNos. 2165, 2166, 2167, 2168 C.D. 1992
StatusPublished
Cited by6 cases

This text of 634 A.2d 743 (Rebottini v. State Ethics Commission) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rebottini v. State Ethics Commission, 634 A.2d 743, 160 Pa. Commw. 157, 1993 Pa. Commw. LEXIS 716 (Pa. Ct. App. 1993).

Opinion

FRIEDMAN, Judge.

Robert Rebottini, Donald Rhodes, Thomas Manee, and Terry Painter petition for review of four orders of the State Ethics Commission finding that each violated § 3(a) of the 1978 “State Ethics Act”1 (Act) which prohibits the use of [160]*160public office to obtain financial gain other than compensation provided for by law. These four orders have been consolidated for our review. The facts involve actions Petitioners took as members of two separate municipal authority boards. Rebottini and Rhodes were board members of the North Huntingdon Township Municipal Authority (NHTMA). Painter was a member of the Western Westmoreland Municipal Authority (WWMA). Manee was on both boards. We reverse the Commission with regard to the NHTMA board members, Rebottini, Rhodes and Manee. With regard to the WWMA board members, Manee and Painter, we affirm in part and reverse in part.

Petitioners do not challenge the Commission’s factual findings regarding the NHTMA board. From its inception in 1968, the NHTMA had seven board members and five officers. In 1979, however, the number of board members was reduced from seven to five. As a result, each board member could have an officer position. Rebottini served a five-year term on the NHTMA board from 1981 to December 31, 1986. During each of the years he was on the board, he also held an officer position. In all but one year, he participated in the board’s annual reorganization meeting and voted for his own election. Rhodes was appointed to the NHTMA board in 1981 for a five-year term; during this term he also served as an officer. Manee served on the NHTMA board from 1976 to 1992. Each year between 1981 and 1988, the board elected him to an officer position and Manee himself participated in that board vote.

In addition to voting to help elect themselves to officer positions, Manee, Rhodes and Rebottini all participated in setting their own officer salaries. In 1981 the board passed a [161]*161resolution providing that officers would receive $200.00 per month. The board increased this salary to $250.00 in 1982 and to $800.00 in 1983. Officers continued to receive $300.00 per month until 1987.

After an investigation and hearings which together spanned a five-year period, the Commission concluded that Rebottini, Rhodes and Manee in their capacities as NHTMA board members violated § 3(a) of the 1978 Act. However, the Commission imposed no sanctions upon them for their conduct and took no further action in the matter.

We turn now to the facts as they pertain to the WWMA. The WWMA is a joint authority of six municipalities with a ten-member board. Painter served on the WWMA board from 1986 through 1990. Manee served on the WWMA board from 1984 through 1988. At a board meeting on May 21, 1986, Painter suggested that WWMA board members should be compensated for their “dedication and services provided.” (R.R. at 150a.) The WWMA solicitor advised the board members that they would first have to obtain permission from all six municipalities and that such salaries could not become effective until the following term.2 (Id.) In response, Mr. Painter stated that the “vehicle for simplicity” would be to create paid officer positions for each board member. (R.R. at 151a.)

On August 20, 1986, the WWMA board passed a motion to create six new officer positions. Both Manee and Painter voted in favor of this proposal. (R.R. at 52a.) The addition of these new officer positions allowed each board • member to become an officer and, in fact, each member of the board was [162]*162officially made an officer.3 The WWMA board set the officer salaries at $150.00 per month. Painter was not present at this meeting, but Manee was present and voted on his own salary. (R.R. at 52a-53a.) Both Manee and Painter voted on their officer salaries in 1987 and 1988. During the years they served in these newly-created “officer” positions, Painter and Manee received $6,150.00 and $3,350.00 respectively in compensation.

After a hearing on this matter, the Commission made the following relevant findings with regard to Manee:

38. This compensation [received by Manee] was not based upon attendance at meetings or services rendered but was rather automatically paid to each Authority member regardless of attendance or service.

42. There was no change in the functions, duties and responsibilities of Authority members after the amendment to the by-laws through which the six additional committee positions were created.

Based on these findings, the Commission concluded:

Manee, Painter and the other WWMA members created officer positions for the WWMA and had the board members appointed to those so called officer positions; through that machination the WWMA board members could compensate themselves even though any work which was done was as a board member and not as an officer.

Manee decision at 51. Similarly, with regard to Painter, the Commission made the following findings:

28. There was no change in the functions, duties and responsibilities of Authority members after the amendment to the by-laws through which the six additional committee positions were created.

[163]*16334. Terry Painter devised a mechanism to circumvent the statutory requirement that the compensation of authority board members be set by the governing body, c. ...

4. The services performed by Painter were in his capacity as WWMA board member and not as an officer.

Accordingly, the Commission concluded:

it is clear that the board members were trying to fix their compensation as board members. In this context we must look at the substance over form ... although the form of the transaction was the utilization of the officer positions, the substance was the WWMA board compensating its board members in derogation of the Municipality Authorities Act which requires that such action be done by the appointing authority.

Painter decision at 31.

Thus, the Commission determined that Manee and Painter violated § 3(a) of the Act and ordered them to pay restitution to the WWMA for all compensation they had received while serving on the WWMA board.

On appeal,4 Petitioners argue that their actions did not violate § 3(a) of the Act and that the doctrine of laches bars the Commission’s action against them.5 Manee and Painter [164]*164further contend that the Commission’s finding that they contrived to be paid as WWMA board members is unsupported by substantial evidence and that the 1978 Act does not authorize the Commission to require them to pay restitution.

We decline to apply the doctrine of laches in this case. Laches applies when a party exhibits a lack of due diligence in instituting a claim and the adverse party has been harmed by the delay. Williamstown Borough Authority v. Cooper, 404 Pa. Superior Ct. 516, 591 A.2d 711 (1991), allocatur granted, 529 Pa. 651, 602 A.2d 861 (1992). We recognize that more than five years elapsed between the commencement of the Commission’s investigation and the conclusion of the case. Certainly, it would have been preferable for the Commission to act more promptly.

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Bluebook (online)
634 A.2d 743, 160 Pa. Commw. 157, 1993 Pa. Commw. LEXIS 716, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rebottini-v-state-ethics-commission-pacommwct-1993.