Wayne v. Capital Area Legal Services Corp.

108 So. 3d 103, 2012 WL 4434146
CourtLouisiana Court of Appeal
DecidedSeptember 26, 2012
DocketNos. 2011 CA 1988, 2011 CA 1989
StatusPublished
Cited by2 cases

This text of 108 So. 3d 103 (Wayne v. Capital Area Legal Services Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wayne v. Capital Area Legal Services Corp., 108 So. 3d 103, 2012 WL 4434146 (La. Ct. App. 2012).

Opinion

WELCH, J.

| ¡.Plaintiff, James A. Wayne, Sr., appeals a summary judgment entered in favor of defendant, Capital Area Legal Services Corporation (CALSC), dismissing this lawsuit. We reverse and remand.

BACKGROUND

CALSC, domiciled in East Baton Rouge Parish, is a non-profit corporation which provides legal services or legal assistance in non-criminal proceedings or matters to persons financially unable to afford legal assistance or employ attorneys. On March 16, 2007, Mr. Wayne entered into an extension of a prior employment contract and was hired by CALSC to serve as its Executive Director for a period of five years pursuant to a written employment contract. The contract provided that Mr. Wayne’s employment could be terminated for cause at any time and that a hearing to determine whether cause existed would be held before CALSC’s Board of Directors (Board).

On January 11, 2011, the Board held a termination hearing at which Mr. Wayne and his attorney were present and addressed the Board. The minutes of the hearing reflect that Mr. Wayne and staff member Eva Pratt testified. The Board then went into executive session and when it came out of that session, it voted to terminate Mr. Wayne’s employment with seven votes to terminate, six abstentions, and one no vote. At that meeting, four Board members participated by telephone.

On February 25, 2011, Mr. Wayne filed his first lawsuit seeking declaratory, mandamus, and injunctive relief against CALSC, claiming that the Board violated the Louisiana Open Meetings Law, which rendered his termination null and without [105]*105effect. Specifically, he alleged that the Board violated the Open Meetings Law: (1) by failing to post an agenda; (2) by failing to notify him in writing at least twenty-four hours in advance of the meeting that it intended to go into executive session to discuss his character and/or professional competence; (3) Rby voting to terminate his contract while still in executive session; and (4) because less than a majority of the Board members present at the meeting voted to terminate his employment. Mr. Wayne sought a declaration that all actions taken by the Board at the January 11, 2011 hearing were null and void, that his contract was not validly terminated, that his employment contract was still in effect, that he remained the Executive Director of CALSC, and that he was entitled to all benefits due him under his employment contract. He also sought a writ of mandamus ordering CALSC to reinstate him to his position, injunctive relief prohibiting the Board from enforcing its decision and ordering the Board to award him all benefits due under his employment contract with CALSC, and attorney’s fees.

The Board filed a peremptory exception raising the objection of no cause of action, asserting that the Board is a non-profit corporation and not a public body subject to the Open Meetings Law. The Board also filed a reconventional demand, alleging that Mr. Wayne breached his employment contract by engaging in the outside practice of law during the term of the contract and seeking the return of all salary and other benefits paid to Mr. Wayne by CALSC. CALSC further alleged that Mr. Wayne engaged in multiple violations of its rules and regulations and those of the Legal Services Corporation (LSC). It sought reimbursement from Mr. Wayne for all questioned costs it was required to reimburse to the LSC.1

On March 31, 2011, the trial court signed a judgment granting CALSC’s exception of no cause of action and granted Mr. Wayne leave to amend his petition. Mr. Wayne amended his petition to allege that CALSC is a public body |4as defined by the Open Meetings Law and is subject to its provisions. Specifically, Mr. Wayne alleged that for more than fifty years, CALSC and its predecessor have been organized to provide, and have in fact provided, an important governmental function— the administration of legal services to persons unable to afford such services. He further asserted that CALSC has been supported almost exclusively by tax-derived funds and exercises considerable policy making in administering its legal services and programs and in distributing the public funds that it receives. Lastly, Mr. Wayne claimed that CALSC’s own by-laws acknowledge that it is subject to the Open Meetings Law. In the amended petition, Mr. Wayne added three alleged violations of the Open Meetings Law in connection with the January 11, 2011 meeting: (1) the fact that several Board members were not physically present but participated by tele[106]*106phone; (2) one Board member attempted to vote by proxy; and (3) the Board failed to obtain a quorum to even conduct the meeting. Mr. Wayne claimed that the attempt to vote by proxy and the failure to obtain a quorum also violated the Board’s own by-laws.

On March 31, 2011, the Board held another meeting to discuss Mr. Wayne’s termination. Seventeen board members, including the chair, were present, nine of whom participated in the meeting by telephone. During the meeting, fifteen members of the Board voted to ratify its January 11, 2011 vote to terminate Mr. Wayne’s contract and one member abstained. Thereafter, fifteen members of the Board voted to terminate Mr. Wayne’s contract, and all seventeen members of the Board voted to terminate Mr. Wayne’s contract, effective March 31, 2011, in the event the ratification of the January 11, 2011 termination vote was ineffective.

On April 6, 2011, Mr. Wayne filed a second lawsuit against CALSC, asserting that the March 31, 2011 purported termination hearing was also replete with procedural irregularities in violation of the Open Meetings Law in the following respects: (1) a quorum of the members was not present, as only eight ^members were physically present and eight members improperly cast their votes by telephone; (2) the Board failed to post in the amended agenda that it intended to discuss the pending litigation in executive session; (3) the Board did not go into executive session on the basis of any recognized exception to the Open Meetings Law; and (4) the Board improperly voted during the executive session. Mr. Wayne insisted that the Board’s ratification of its January 11, 2011 vote to terminate his employment contract did not cure any deficiencies in the earlier vote. He sought a judgment declaring all actions taken by the Board at the March 31, 2011 meeting and any action taken by it that day to ratify the January 11, 2011 termination be declared null and void, a writ of mandamus ordering CALSC to reinstate his improperly terminated contract, injunctive relief, and attorney’s fees.

On May 9, 2011, the trial court signed a judgment consolidating Mr. Wayne’s lawsuits. Thereafter, CALSC filed a motion for summary judgment in which it asserted that it is not a public body subject to the Open Meetings Law, but rather, it is a private, non-profit corporation organized pursuant to Louisiana law. It conceded it received tax dollars which are used to support some of its operations, but asserted that the receipt or expenditure of tax dollars was legislatively eliminated as a factor in determining what entities fall within the definition of a “public body” for the purpose of the Open Meetings Law. Accordingly, CALSC argued, there are no genuine issues of material fact with respect to Mr. Wayne’s allegation that CALSC is a public body, and since that status is an essential element of Mr. Wayne’s cause of action, CALSC is entitled to judgment as a matter of law. Alternatively, CALSC argued, even if it was subject to the Open Meetings Law, CALSC’s termination of Mr.

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Bluebook (online)
108 So. 3d 103, 2012 WL 4434146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wayne-v-capital-area-legal-services-corp-lactapp-2012.