Greenleaf v. DHH, Metropolitan Developmental Center

• Decision Date: 27 December 1991
• Docket Number: Nos. CA,s. CA
• Citation: 594 So.2d 418
• Parties: Wayne A. GREENLEAF v. DHH, METROPOLITAN DEVELOPMENTAL CENTER. Wayne A. GREENLEAF v. DHH, METROPOLITAN DEVELOPMENTAL CENTER. 90 1847, CA 90 1848.
• Court: Court of Appeal of Louisiana — District of US

Page 418

594 So.2d 418

Wayne A. GREENLEAF v. DHH, METROPOLITAN DEVELOPMENTAL CENTER.

Wayne A. GREENLEAF v. DHH, METROPOLITAN DEVELOPMENTAL CENTER.

Nos. CA 90 1847, CA 90 1848.

Court of Appeal of Louisiana, First Circuit.

Dec. 27, 1991.

Writ Denied March 20, 1992.

Ernest E. Barrow, II and Andree H. Greenleaf, Grant and Barrow, Gretna, for appellant.

Frank H. Perez and George D. Allspach, Dept. of Health and Hospitals, Bureau of Legal Services, Baton Rouge, for appellee.

Robert R. Boland, Jr., Civ. Service Gen. Counsel, Dept. of State Civ. Service, Baton Rouge, for Herbert L. Sumrall, Director, Dept. of State Civ. Service.

Before LOTTINGER, EDWARDS and GONZALES, JJ.

EDWARDS, Judge.

Appellant, Dr. Wayne Greenleaf, is a classified civil service employee with the Department of Health and Hospitals (DHH), Office of Mental Retardation, Metropolitan Developmental Center serving with permanent status. Dr. Greenleaf appealed the decision of the Civil Service Commission's confirming his ninety day suspension without pay pending an investigation and his subsequent demotion and transfer. We affirm.

FACTS AND PROCEDURAL BACKGROUND

At the time of the suspension without pay pending investigation, Dr. Greenleaf served as the Mental Retardation/Developmental Disabilities Regional Administrator 3 at the Metropolitan Developmental Center in Belle Chasse, Louisiana. The referee made the following findings of fact concerning the actions of Dr. Greenleaf upon which the disciplinary actions were based:

FINDINGS OF FACT

1. During fiscal year 1986/87, the Metropolitan Developmental Center had four cost reimbursement contracts with Vanco [Human Services, Inc. (Vanco) ].

2. At the beginning of the fiscal year, Vanco received a cash advance in the amount of $37,454.00. The advance was to be repaid in four equal installments of $9,363.00 during the last four months of the fiscal year. The arrangement was proper and had the approval of the agency.

3. However, appellant directed that the May 1987 installment be delayed. The action was contrary to the advice of the Business Manager for the Metropolitan Developmental Center.

4. At the end of the 1986/87 fiscal year Vanco owed the state a balance of $3,410.48 on the amount which had been advanced. The Fiscal Officer for the Metropolitan Developmental Center wrote a letter to Vanco demanding payment. No response was received.

5. Also, after fiscal year 1986/87 had ended, appellant instructed his Fiscal Officer to do a handwritten internal budget revision to Vanco contract No. 3427028, to authorize payment of a $28,209.60 invoice. The payment was for services for clients not named on the contract. It was against agency policy to pay for services to clients not named on a contract.

6. The contract in question was a cost reimbursement contract and required that for reimbursements to be made costs must actually be incurred for services to clients. However, no services were provided to the clients. Appellant's explanation for authorizing the payment was that Vanco had incurred expenses in anticipation of providing services to the clients. However, agency policy required that if a provider had a legitimate claim, then the contract must be amended to include the costs and to include the names of the clients.

7. After advising against making the $28,209.60 payment to Vanco, the Fiscal Officer followed appellant's instructions and made the payment after deducting the $3,410.48 that Vanco owed to the state.

8. Appellant did not personally benefit from the maneuvers channeling money from the state to Vanco. However, appellant's actions allowed Vanco to collect funds to which it was not entitled; and, appellant's actions delayed the recoupment of funds owed to the state by Vanco.

On August 8, 1988, Rose Forrest, the Deputy Assistant Secretary of the Office of Mental Retardation/Developmental Disabilities, sent Dr. Greenleaf a letter that notified him of the possibility of disciplinary actions against him and detailed with some specificity the alleged facts and actions of Dr. Greenleaf upon which the proposed disciplinary action would be taken. The letter also afforded Dr. Greenleaf the opportunity to respond before any formal action was taken. Dr. Greenleaf responded to the proposed disciplinary action and the allegations of fact by letter dated August 18, 1988. The appointing authority, the DHH, did not find that the response justified or adequately explained the actions taken by Dr. Greenleaf.

A verbal notice of a suspension without pay pending an investigation, and not to exceed ninety days, was given on August 25, 1988, followed by a confirmation letter on August 26, 1988. The suspension was effective on August 29, 1988. The August 26 letter stated that Dr. Greenleaf was being suspended because he "allowed the payment of $28,209.60 ... to Vanco Human Services, Inc. on July 29, 1987. This payment was based on an 'internal' and unapproved modification to contract # 342-7028 that was in place between the Greater New Orleans Regional Service Center (Region 1/MDC) and Vanco Human Services, Inc." The allegations of fact that led the DHH to conclude that the payment was inappropriate were provided. Dr. Greenleaf filed an appeal of the suspension with the Civil Service Commission.

By letter from the Division of Mental Retardation dated November 28, 1988, Dr. Greenleaf was notified that he was being transferred and demoted, effective November 30, 1988, to Psychologist 3 at the New Orleans Adolescent Hospital and that his current rate of pay would be maintained. The letter states that the action was only after careful review of Dr. Greenleaf's letter in response to a letter dated November 1, 1988, advising him of the charges against him and the proposed disciplinary actions. The November 28 letter repeats the charges in the suspension letter and charges Dr. Greenleaf with improperly delaying the recoupment of funds owed to the state by Vanco. The demotion letter also informed Dr. Greenleaf that his suspension was being rescinded and that he would receive back pay and all the emoluments of office to which he may have been entitled.

Dr. Greenleaf filed a separate appeal of the demotion. The appeals were consolidated.

The DHH requested the Civil Service Commission to rescind the suspension in compliance with Civil Service Commission rule 15.10. Rule 15.10(c) prohibits modification or rescission of any disciplinary action on appeal without approval of the commission. The request, however, was withdrawn by the appointing authority before the commission acted when the appointing authority was notified by the appellant that he would not dismiss the appeal of the suspension and would pursue other relief, even if the suspension was rescinded and back pay and emoluments of office were ordered. The correctness of the suspension remained on appeal and was argued at the hearing.

A referee was appointed and hearings held on May 11 and 12, 1989. The two days were not sufficient to conclude the testimony and it became necessary to schedule another hearing on July 27, 1989.

The referee issued his decision on January 25, 1990. The referee summarily dismissed appellant's request for the following:

1. The value of emoluments of office, including but not limited to, housing, utilities, and two hundred dollars per month in maintenance allowance.

2. Publication of a retraction, including one to those individuals with whom Rose V. Forrest has conferred regarding these allegations, exonerating Dr. Greenleaf from the implications of the charges levied by the appointing authority.

3. Return of all out-of-pocket expenses Dr. Greenleaf has paid to maintain health, accident and life insurance benefits for himself and his family.

4. Reimbursement to Dr. Greenleaf for all interest lost because standard payroll deductions to the Pelican State Credit Union and the State Employees Deferred Compensation Plan which could not be made, computed from the effective date of the unwarranted and unconstitutional suspension up to and until said amounts are repaid at the rate established by those employee benefit plans.

5. Reimbursement to Dr. Greenleaf for all expenses incurred in purchasing a house and moving his family because of state actions complained of herein.

The referee did not believe that the commission had jurisdiction to award the requested relief and stated that "[t]he maximum relief which can be granted to appellant in this instance is to restore appellant to his position, to restore appellant's lost wages as a result of the suspension, and attorney's fees...." The referee also summarily dismissed appellant's request for damages caused by the harassment of appellant by the news media and personal expenses caused by the disciplinary actions because of his belief that the commission lacked the authority to grant such relief.

The referee denied the appellant's claim that the appointing authority had violated Civil Service Commission rule 15.9 governing confidentiality of Civil Service Commission records while conducting the investigation and denied appellant's request for summary disposition of the suspension and both appeals. In the referee's conclusion of law, he stated the following:

The Referee finds that the agency has borne its burden of proving the charges in the letters of disciplinary action. Such conduct on the part of appellant impaired the efficient operation of the agency employing him and is just cause for disciplinary action. Both the suspension pending investigation and the subsequent demotion and transfer are warranted.

Dr. Greenleaf applied to the Civil Service Commission for review of the referee's decision. The application was denied on June 8, 1990, and the decision of the referee became that of the commission.

Dr. Greenleaf appealed the decision of the Civil Service Commission and listed seven assignments of error. Because of our affirmance of the decision, it is not necessary for us to...