Southern California Rapid Transit District v. Superior Court

30 Cal. App. 4th 713, 36 Cal. Rptr. 2d 665, 94 Cal. Daily Op. Serv. 9119, 94 Daily Journal DAR 16916, 10 I.E.R. Cas. (BNA) 162, 1994 Cal. App. LEXIS 1226
CourtCalifornia Court of Appeal
DecidedNovember 30, 1994
DocketB083598
StatusPublished
Cited by44 cases

This text of 30 Cal. App. 4th 713 (Southern California Rapid Transit District v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern California Rapid Transit District v. Superior Court, 30 Cal. App. 4th 713, 36 Cal. Rptr. 2d 665, 94 Cal. Daily Op. Serv. 9119, 94 Daily Journal DAR 16916, 10 I.E.R. Cas. (BNA) 162, 1994 Cal. App. LEXIS 1226 (Cal. Ct. App. 1994).

Opinion

Opinion

CROSKEY, J.

Petitioners Southern California Rapid Transit District (District), Ernesto Fuentes (Fuentes) and Nick Patsaouras (Patsaouras) (collectively, defendants) 1 seek a writ of mandate from this court compelling the trial court to grant their summary judgment motion on the complaint of the real parties in interest, Allen Laster (Laster) and Richard Yeats (Yeats) (collectively, plaintiffs).

This action arose out of the claim by plaintiffs that they were wrongfully terminated by the District from their position as employees hired by the District to investigate fraud, waste and corruption. They alleged that their terminations were in retaliation for reports made by them of suspected forgery, fraud, mismanagement and an official cover-up of such acts in connection with the certification of a minority contractor.

Defendants filed a motion for summary judgment and summary adjudication of issues as to all seven counts filed by Laster and Yeats. Although the trial court agreed with defendants on all but two of the causes of action filed by plaintiffs, it denied summary relief with respect to their second cause of action (wrongful termination in retaliation for reporting illegal conduct) and their fourth cause of action (wrongful termination in violation of First Amendment free speech rights).

*718 We conclude that issues of fact do exist with respect to plaintiffs’ claims of (1) retaliatory termination in violation of a fundamental statutory public policy and (2) infringement of their First Amendment right of free speech in violation of the Civil Rights Act (42 U.S.C. § 1983). We also reject defendants’ qualified immunity claims under both state and federal law. We therefore deny the requested writ relief.

Factual and Procedural Background

The District was, at the times relevant to this matter, a governmental agency created by statute to plan and operate mass transit in Los Angeles County. (Pub. Utilities Code, § 30001 et seq.) 2 Patsaouras and Fuentes were officials of the District. Patsaouras held the position of president of the District’s Board of Directors; Fuentes was the District’s Inspector General.

On February 25, 1988, the District’s board of directors authorized its inspector general to direct a broad comprehensive program of (1) contract audits, (2) management, operational and performance audits and (3) investigations. Pursuant to a directive of the board, all personnel in the Office of Inspector General (OIG) were exempt from the District’s noncontract personnel policy and served at the pleasure of the inspector general. Such exemption was called to the attention of new OIG personnel by a written notice which expressly stated that the employment was “at-will” and that the “District has the right to discharge them for any reason whatever, with or without good cause.” Plaintiffs, who were career law enforcement investigators, were hired by the OIG in 1989 to serve in that capacity; Laster was hired on October 23 and Yeats on November 6. Each was given a copy of this “Exempt Employment Status” notice at the time that they were hired. They each signed a statement that they had read and understood it. 3

During the period of their employment they were given various investigative assignments. One involved a claim made by a member of the public on February 8,1990, at a meeting of the District’s board, that a company called Communications International Inc. (CII) had been improperly certified as a *719 “Disadvantaged Business Enterprise” (DBE). Because the District receives substantial federal funding, federal regulations require that a certain percentage of contracting opportunities be provided to DBE’s.

The charge which was publicly made was that CII was ineligible for DBE status and that a recertification letter sent by the District to CII was a forgery. Plaintiffs commenced an investigation of this charge and determined that it had substance. 4

Plaintiffs were assigned to investigate the allegation that the signature stamp of one of the District’s certifying officials, one Alvin Rivera, had been utilized without his approval and despite his protestations, to recertify CII as a minority-owned, disadvantaged business enterprise. During the course of the investigation, plaintiffs discovered that CII had initially been certified by the District, even though it did not possess a California contractor’s license in its own name, and utilized a nonminority person as its contractor license holder, suggesting the company might be a “front” rather than a bona fide minority-owned business. They also found that CII had boasted in its 1989 prospectus that it had done a gross volume of business exceeding $199 million, an amount far in excess of the federal regulatory $14 million gross volume qualifying standard for a DBE. A Dun & Bradstreet report also indicated that CII had reportable earnings in excess of the gross volume standards.

According to plaintiffs, the CII file that the District maintained contained neither tax returns for the past three years nor any other documentation indicating its financial eligibility for disadvantaged status. Plaintiffs requested documents from CII and the District’s office of equal employment opportunity (EEO) which they hoped would clear up questions about CII’s status. However, CII declined to supply any documents. Walter Norwood, the EEO director, also refused to provide plaintiffs any access to the documents they had requested, notwithstanding a District board directive which provided that, in conducting investigations, “the Inspector General, and staff of the Inspector General, are authorized to have full, free and *720 unrestricted access to all District functions, records, property, and personnel.”

Plaintiffs reported these events to Fuentes and informed him that they suspected a violation of the law, specifically, forgery. (Pen. Code, § 470.) Plaintiffs also discussed the case with the Los Angeles County Sheriff’s Department, which advised them that there appeared to be such a violation and requested that the inspector general send a letter requesting the assistance of the sheriff. When Laster asked Fuentes to sign such a request letter, Fuentes became angry and refused. Plaintiffs also requested that Fuentes employ the assistance of the United States Department of Transportation (DOT) and its Urban Mass Transportation Administration (UMTA), the agencies responsible for overseeing compliance with the regulations relating to DBE’s. Fuentes again refused, expressing fear that he would lose his job if the matter were made known to the federal agencies. Plaintiffs then spoke to the Los Angeles County District Attorney’s Office about their suspicions of a forgery and cover-up.

Rivera (the certifying officer whose signature stamp allegedly had been improperly used) told plaintiffs that Fuentes had spoken to him after plaintiffs’ had made their report to Fuentes.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Whitehall v. County of San Bernardino
California Court of Appeal, 2017
Whitehall v. Cnty. of San Bernardino
225 Cal. Rptr. 3d 321 (California Court of Appeals, 5th District, 2017)
Spencer v. Sharp Grossmont Hospital CA4/1
California Court of Appeal, 2014
Humphrey v. Bank of America CA4/1
California Court of Appeal, 2014
Jajdelski v. Kaplan, Inc. CA4/1
California Court of Appeal, 2014
Hernandez v. Fusion Food & Boba Cafe CA4/1
California Court of Appeal, 2013
Mcveigh v. Recology San Francisco
213 Cal. App. 4th 443 (California Court of Appeal, 2013)
City of San Diego v. Haas
207 Cal. App. 4th 472 (California Court of Appeal, 2012)
California Traditions, Inc. v. Claremont Liability Insurance
197 Cal. App. 4th 410 (California Court of Appeal, 2011)
Truong v. Glasser
181 Cal. App. 4th 102 (California Court of Appeal, 2009)
Kaye v. Board of Trustees of San Diego County Public Law Library
179 Cal. App. 4th 48 (California Court of Appeal, 2009)
Millard v. BIOSOURCES, INC.
68 Cal. Rptr. 3d 177 (California Court of Appeal, 2007)
In Re Pharmaceutical Industry Average Wholesale Price Litigation
478 F. Supp. 2d 164 (D. Massachusetts, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
30 Cal. App. 4th 713, 36 Cal. Rptr. 2d 665, 94 Cal. Daily Op. Serv. 9119, 94 Daily Journal DAR 16916, 10 I.E.R. Cas. (BNA) 162, 1994 Cal. App. LEXIS 1226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-california-rapid-transit-district-v-superior-court-calctapp-1994.