Townsend v. Hoover City Board of Education

610 So. 2d 393, 1992 Ala. Civ. App. LEXIS 299, 1992 WL 142196
CourtCourt of Civil Appeals of Alabama
DecidedJune 26, 1992
Docket2910249
StatusPublished

This text of 610 So. 2d 393 (Townsend v. Hoover City Board of Education) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Townsend v. Hoover City Board of Education, 610 So. 2d 393, 1992 Ala. Civ. App. LEXIS 299, 1992 WL 142196 (Ala. Ct. App. 1992).

Opinion

ROBERTSON, Presiding Judge.

In 1987 the City of Hoover elected to form the Hoover City Board of Education (Board) to administer and supervise the city’s public schools. The Board agreed to appoint Dr. C. Robert Mitchell as superintendent. Under the terms of the agreement, Mitchell’s term was to begin on January 16,1988, and was to end on January 15, 1991, with an annual salary of $60,000, plus other benefits. On February 13, 1989, the Board increased Mitchell’s salary to $64,-500. On that same date the Board and Mitchell entered into a new agreement which, inter alia, extended Mitchell’s term as superintendent until June 30, 1992. The Board later amended the second agreement to purchase a retirement plan for Mitchell and acknowledged that Mitchell already had an automatic extension of his employment as superintendent until June 30, 1993.

On March 5,1991, the Board and Mitchell entered into a new employment contract. This agreement expressly superseded all previous agreements. Under the terms of this contract, Mitchell’s term of employ[395]*395ment as superintendent was for five years, from March 5, 1991, to March 4, 1996. This agreement set Mitchell’s annual salary at $71,740, plus any percentage increase approved by the Alabama Legislature for all teachers in Alabama, and $350 a month in travel expenses. This agreement also contained the unilateral right of the Board to terminate Mitchell.

On April 29, 1991, the Board approved a resolution to unilaterally terminate Mitchell’s employment effective April 30, 1991. On this same date, Mitchell and the Board entered into an agreement entitled “Acknowledgment and Mutual Release” which acknowledged that the Board was exercising its authority under § IX, paragraph B, of the March 5, 1991, employment agreement to unilaterally terminate Mitchell as superintendent. Under this release agreement the Board agreed to pay to Mitchell a total of $419,119.62. Of this amount, $392,066.47 represented severance pay and $27,053.15 represented retirement benefits.

George Townsend, Shirley Townsend, James Wilder, Charles Wilson, and Jane Wilson (hereafter collectively referred to as “Townsend”), as residents and taxpayers of the City of Hoover, filed suit against the Board, the Board members in their official capacity, and against Mitchell in his individual capacity. Townsend alleged that the Board violated Article IV, § 68 and Article XVII, § 281 of the Alabama Constitution, §§ 16-21-1, 16-12-20 and 41-16-57(e), Code 1975, and the principles of equity and fair play by passing a resolution agreeing to pay Mitchell in excess of $300,000 (the actual amount being challenged is $392,-066.47) after his employment as superintendent was terminated by the Board. Townsend sought preliminary and permanent injunctions to enjoin the Board from paying Mitchell any further sums of money.

The trial court conducted a hearing on whether to grant Townsend’s request for a preliminary injunction. At this hearing, Townsend contended that the Board lacked the authority to contractually bind itself to pay Mitchell after his employment as superintendent had been terminated. Townsend also maintained that Mitchell served at the pleasure of the Board, and, therefore, his employment could be terminated at any time. The trial court denied Townsend’s request for a preliminary injunction. In its order, the trial court held that the March 5, 1991, agreement, and the subsequent agreement to pay Mitchell the $392,-066.47 in controversy, did not violate Article IV, § 68, or Article XVII, § 281 of the Alabama Constitution, or §§ 16-21-1, 16-12-20, or 41-16~57(e), Code 1975.

Townsend appealed the denial of the request for a preliminary injunction to our supreme court, and this case was subsequently transferred to this court on jurisdictional grounds. The trial court entered a final judgment denying Townsend’s request for a permanent injunction on December 4, 1991, and an amended appeal was filed from that final judgment.

The following issues are before this court on appeal: (1) whether the Board violated Article IV, § 68 of the Alabama Constitution; (2) whether the Board violated Article XVII, § 281 of the Alabama Constitution; (3) whether Mitchell’s appointment as superintendent pursuant to § 16-12-1 constituted an employment-at-will; (4) whether an employment agreement in excess of three years is void under § 41-16-57, Code 1975; and (5) whether Mitchell was a tenured employee.

I

Article IV, § 68, of the Alabama Constitution of 1901, provides in part that:

“The legislature shall have no power to grant or to authorize or require any county or municipal authority to grant, nor shall any county or municipal authority have power to grant any extra compensation, fee, or allowance to any public officer, servant, or employee, agent or contractor, after service shall have been rendered....”

We recognize that our supreme court has held, for purposes of sovereign immunity in tort actions, that county and municipal boards of education are agencies of the state when they are executing a state function, namely education. Hutt v. [396]*396Etowah County Board of Education, 454 So.2d 973 (Ala.1984).

However, three years after the Hutt decision, in Kohen v. Board of School Com’rs of Mobile Cty., 510 So.2d 216 (Ala.1987), our supreme court chose not to directly address the issue of whether the board of education was a county or municipal authority for the purposes of § 68. Justice Maddox wrote that “[h]aving found the policy ... to be constitutional, we need not address the plaintiffs’ argument ... that the Board is not a county or municipal authority for the purposes of § 68.” Ko-hen at 219.

In addressing “whether the severance pay agreement violates Article IV, § 68, of the Alabama Constitution,” the trial court held in part that:

“Even if § 68 applied to municipal boards of education, it would not prohibit a board of education from entering into a new contract with its superintendent for a term which would include the remainder of an existing term under a prior contract. In Kohen v. Bd. of School Comm’rs of Mobile City, 510 So.2d 216 (Ala.1987), the Board on October 12, 1983, approved of a policy authorizing payment of $100 to all employees who achieved perfect attendance for the 1983-84 school year. Two weeks later, the Board voted to change that policy to provide instead of the $100 a bonus of $20 for each unused sick leave day, up to a maximum of nine unused days per year.
“The Board subsequently in March 1984, received a letter from its attorney suggesting that the cash incentive award would be unconstitutional under § 68. When eligible employees then requested pay for the unused sick leave days, the Board replied that the plan was unconstitutional. Kohen and other employees then filed suit to compel the Board to make payment pursuant to its stated sick leave policy. The trial court granted summary judgment in favor of the Board. On appeal the Supreme Court of Alabama reversed. It was argued to the supreme court that the sick leave policy was unconstitutional and in violation of § 68 of the Alabama Constitution because sick leave policy provided additional compensation to employees after services had been rendered. The Board argued that each employee began the school year with a contract which stated his salary and that state law provided a specific number of sick leave days and that any unused days could be retained for future use.

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Related

Hutt v. Etowah County Bd. of Educ.
454 So. 2d 973 (Supreme Court of Alabama, 1984)
State v. Stein
874 So. 2d 279 (Louisiana Court of Appeal, 2004)
Edmonds v. Bronner
547 So. 2d 1172 (Supreme Court of Alabama, 1989)
Ex Parte Weaver
559 So. 2d 178 (Supreme Court of Alabama, 1989)
Kohen v. BD. OF SCH. COM'RS OF MOBILE CTY.
510 So. 2d 216 (Supreme Court of Alabama, 1987)
Jensen v. Independent Consolidated School District No. 85
199 N.W. 911 (Supreme Court of Minnesota, 1924)

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Bluebook (online)
610 So. 2d 393, 1992 Ala. Civ. App. LEXIS 299, 1992 WL 142196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/townsend-v-hoover-city-board-of-education-alacivapp-1992.