State ex rel. Reardon v. Brandom

973 S.W.2d 187, 1998 Mo. App. LEXIS 1488, 1998 WL 436063
CourtMissouri Court of Appeals
DecidedAugust 4, 1998
DocketNo. WD 54635
StatusPublished
Cited by1 cases

This text of 973 S.W.2d 187 (State ex rel. Reardon v. Brandom) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Reardon v. Brandom, 973 S.W.2d 187, 1998 Mo. App. LEXIS 1488, 1998 WL 436063 (Mo. Ct. App. 1998).

Opinion

LOWENSTEIN, Judge.

The appellants here are Thomas Brandom, Jay Lawson, and Gene Owen, the elected commissioners of Clay County. (Hereinafter the “Commission”) Clay is a first class county, it does not have a charter form of government, and has more than 100,000 in population. The Commission appeals the trial court’s judgment enjoining it from using public funds to compensate the Clay County Counselor and Assistant Counselors.

The respondent, Michael Reardon, who brought this action, is the Prosecuting Attorney of Clay County. Reardon, in the name of the State of Missouri, and on behalf of the citizens and taxpayers of the county, sought an injunction to prevent an alleged illegal, unlawful and unauthorized expenditure of public funds by the Commission to pay the county’s counselor, and his assistants. At the heart of this case is whether a county can enter into a contract to pay its counselor and assistants on an hourly basis or if the county is required to pay a fixed salary.

Prior to the contracts at issue, in March of 1995, Clay County entered into a contract with Tom Kretsinger making him the County Counselor. Kretsinger had been acting as the County Counselor since 1992. The contract was signed by Kretsinger and Gary Panethiere, County Administrator. The contract was for an indefinite term, at a salary of $48,000 per year and “fees billed.” At the same time, Panethiere, on behalf of Clay County, entered into almost identical contracts with Stephen Caruso, Timothy Flook, and Kevin Graham, in which they were named Assistant County Counselors with annual compensation of $30,000, $18,000 and $12,000, respectively. Flook and Graham also practiced law in the offices of Kretsinger and Kretsinger, a professional corporation. Caruso is a solo practitioner.

In December of 1996 Kretsinger advised Panthiere that he was resigning as County Counselor. He did not feel that he was being properly compensated for his services, and he wanted to be paid by the hour. The following is an excerpt from Panethiere’s testimony at trial.

Q. And were the discussions and the agreement with Mr. Kretsinger re[189]*189garding the hourly compensation, did those occur after he originally advised you that he was going to resign as County Counselor?
A. Oh, definitely.
Q. Who first brought up the idea of switching to an hourly rate?
A I believe Tom first probably brought it up.

Kretsinger expressed to Panethiere that by switching to an hourly rate the county would save money. However, Commissioner Owen testified that he asked Kretsinger what he thought his salary would be if the county went to an hourly rate, and that Kretsinger told Owen that he thought his salary would double.

In December of 1996 the Commission entered into the contract in question, whereby Kretsinger would be compensated as county counselor at an hourly rate, rather than an annual salary. The Commission agreed to pay Kretsinger, as a senior attorney (10 or more years experience), the sum of $125.00 per hour; associate attorneys (less than 10 years experience) the sum of $100.00 per hour; and paralegals the sum of $60.00 per hour. The contract stated that the County Counselor was an independent contractor and not an employee of the county. The term of the contract was for three years, and provided that if the county terminated the contract within three years Kretsinger would receive $50,000 in liquidated damages. The Commission delegated the duty and responsibility of appointing assistants or special county counselors to the County Counselor and the County Administrator. Kretsinger then appointed two of his own employees as Assistant County Counselors.

During 1996, Timothy Flook was assistant county counselor at a rate of $100.00 per hour under a contract entered into with the County Administrator. Flook was then and is now an employee of Kretsinger and Kret-singer. Under a similar contract, Kevin Graham was assistant county counselor during 1996 at a rate of $1,500 per month plus unspecified fees and expenses. Likewise, Graham was then and is now an employee of Kretsinger and Kretsinger. Both men were each paid by the firm $1,000 per month and 50% of all the fees they brought into the firm from all sources including Clay County.

Stephen Caruso and Ronda Reems were also Assistant County Counselors in 1996 under contracts signed by the County Administrator. They were both given independent contractor status and both had contracts which could be terminated at will by either party. Reems was to be paid $1,500 per month. Caruso originally was to be paid $2,500 per month, but some time during 1997 he signed a new contract at a rate of $125 per hour. Caruso and Reems have never been employees of Kretsinger & Kretsinger.

Reardon’s suit alleged the December 1996 contracts were illegal because they violated § 50.340 RSMo.1 1994 and § 12 of Article VI of the Missouri Constitution, which provides that all county officers in all counties of the first class, “... shall be compensated for their services by salaries only.”

The trial court held that: (1) the Commission must pay the County Counselor a fixed salary rather than compensation by the hour, and (2) the Counselor should be appointed as an officer of the county and not given the status of an independent contractor. The court enjoined the Commission from expending any further public funds under the contracts between Clay County and Tom Kret-singer and assistants Caruso, Reems, Flook, and Graham.

The Commission appeals the Order on two points. First, it contests Reardon’s standing to bring suit against them on behalf of the State of Missouri, and second, argues the trial court erred in holding that the county counselor and assistant county counselors may not be compensated on an hourly basis. The Commission does not contest the trial court’s finding that the county counselor and assistant counselors are officers of the county rather than independent contractors. The parameters for appellate review of a bench-tried case are narrowly drawn. Ederle v. Ederle, 741 S.W.2d 888, 885 (Mo.App.1987). The decision of the trial court must be affirmed unless there is no substantial evidence [190]*190to support it, unless it is against the weight of the evidence, or unless it erroneously declares or applies the law. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976).

Point I

The Commission’s first argument is that Reardon did not have the authority as Prosecuting Attorney for Clay County to bring this civil action on behalf of the state. The Commission cites § 56.060(2) which says that the prosecuting attorney does not have the authority to perform duties prescribed by law for the county counselor. Essentially, the Commission’s point is that only the County Counselor had the authority to bring this action to stop the funding of his own office. Section 56.060(1) says “the prosecuting attorney shall commence and prosecute all civil ... actions in his county in which the ... state is concerned....” Because the issue at hand in this case is the spending, of public funds, the court rules that Reardon had the authority as the prosecuting attorney to bring this action.

In State ex rel. Thrash v. Lamb, 237 Mo. 437, 141 S.W.

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Bluebook (online)
973 S.W.2d 187, 1998 Mo. App. LEXIS 1488, 1998 WL 436063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-reardon-v-brandom-moctapp-1998.