Martinek v. Belmond-Klemme Cmty. Sc. Dist.

• Decision Date: 21 August 2009
• Docket Number: No. 08-0565.,08-0565.
• Citation: 772 N.W.2d 758
• Parties: Cynthia MARTINEK, Appellant, v. BELMOND-KLEMME COMMUNITY SCHOOL DISTRICT, Appellee.
• Court: Iowa Supreme Court

772 N.W.2d 758

Cynthia MARTINEK, Appellant, v. BELMOND-KLEMME COMMUNITY SCHOOL DISTRICT, Appellee.

No. 08-0565.

Supreme Court of Iowa.

August 21, 2009.

Rehearing Denied October 1, 2009.

Charles Gribble of Parrish Kruidenier Dunn Boles Gribble Cook Parrish Gentry & Fisher, L.L.P., Des Moines, for appellant.

Brian L. Gruhn of Gruhn Law Firm, Cedar Rapids, for appellee.

BAKER, Justice.

The plaintiff, Cynthia Martinek, appeals from the district court's ruling affirming the termination of her employment as a principal under Iowa Code section 279.24 (2007) by the defendant, Belmond-Klemme Community School District. Martinek claims that the district court erred in failing to reverse the school board's decision to terminate her contract because the school district failed to establish just cause for her termination as required under Iowa Code section 279.24. We find that the district court did not err in determining a preponderance of competent evidence in the record supported the Belmond-Klemme Community School District's termination of Martinek due to declining enrollment, budget concerns, and essential staff reductions.

I. Background Facts and Proceedings.

In 1993, Dr. Cynthia Martinek was hired as the elementary school principal for the Belmond-Klemme Community School District (District). She held that position for thirteen years. Martinek has a bachelor's degree, a master's degree, and a doctorate degree in educational leadership. She also holds teaching and administrative licenses which certify her to serve as a superintendent, high school principal, and elementary school principal.

On July 21, 2005, Martinek entered into the contract at issue with the District. This contract stated that Martinek "agrees to serve as Elementary School (PK-6) Principal in the Belmond-Klemme Community School District for a two (2) year period commencing with the 2005-2006 school year...."¹

On April 25, 2007, the District sent Martinek a notification, stating that it intended to terminate her employment at the end of the 2006-2007 school year, on June 30, 2007. As grounds for the termination, the District listed: (1) declining enrollment, (2) budgetary restrictions and problems, (3) reduction of position(s), and (4) realignment of school organization.

Pursuant to the realignment, Larry Frakes, the former 7-12 principal, became the superintendent and part-time elementary school principal, and David Sextro, the former superintendent, served as assistant superintendent, part-time elementary school principal, and construction supervisor for the new elementary school. Five days after terminating Martinek, the District hired administrator Roy Frakes to serve as 7-12 principal and activities director. Roy Frakes is the brother of Larry Frakes. The District claimed that the hiring of Roy Frakes was part of a plan to gradually reduce administrators, and that a portion of Sextro's salary was paid out of the construction fund and had no effect on the school's yearly budget. At the hearing in front of the administrative law judge (ALJ), Sextro testified that at the end of the 2007-2008 school year he would retire, leaving the district with only two administrators.

Martinek sent a letter to the Belmond-Klemme School District Board of Directors (Board) contesting the reasons for her termination and requested a hearing before an ALJ pursuant to Iowa Code section 279.24(5)(c). A hearing was conducted, after which the ALJ issued a proposed decision finding the District had shown by a preponderance of the evidence that "just cause" existed to terminate the continuing contract of Martinek. Martinek appealed the ALJ's decision to the Board, which adopted the ALJ's proposed decision as its own.

Thereafter, Martinek filed a notice of appeal with the district court. The district court concluded the District's decision to terminate Martinek's contract for just cause was supported by a preponderance of the evidence. In ruling in favor of the District, the trial court only addressed three of the reasons argued in support of Martinek's termination: (1) declining enrollment, (2) budgetary problems, and (3) reduction of staff. Martinek appealed the district court's judgment.

II. Discussion and Analysis.

A. Scope of Review. Both parties agree that Martinek's termination is governed by Iowa Code section 279.24. Section 279.24 governs terminations that occur at the conclusion of an administrator's contract term, while section 279.25 governs terminations that occur during the contract term. See Iowa Code §§ 279.24, .25.

As this court has explained, the court must follow the guidelines in Iowa Code section 279.24(6) when reviewing a school board's decision to terminate an administrator's contract. Martinek v. Belmond-Klemme Cmty. Sch. Dist., 760 N.W.2d 454, 456 (Iowa 2009) (hereinafter Martinek I). This Code section states:

The court shall reverse, modify, or grant any other appropriate relief from the school board's action ... if substantial rights of the administrator have been prejudiced because the school board's action is ... [u]nsupported by a preponderance of the evidence in the record made before the school board when that record is reviewed as a whole.

Iowa Code § 279.24(6)(f). In discussing what is meant by reviewing the record as a whole, we said:

This does not mean each [reason] must be considered separately and must itself amount to just cause. It means, rather, that when the record is considered as a whole the proof must show by a preponderance of the evidence that there is just cause for termination on the basis of the reasons stated.

Bd. of Educ. v. Youel, 282 N.W.2d 677, 682 (Iowa 1979).

Martinek claims that none of the District's asserted grounds for her termination constitute a legitimate reason as contemplated by the Iowa Supreme Court and that these stated grounds are not supported by a preponderance of the evidence. She also asserts that the reasons given are not sufficient because the District's actions have not saved it any money. Five days after firing Martinek the District hired another administrator at a salary $16,000 higher than Martinek's.

We must therefore determine whether the District's stated grounds are legitimate under the statute and whether the Board's decision to uphold the termination of Martinek was supported by a preponderance of competent evidence in the record. Bd. of Dirs. v. Banke, 498 N.W.2d 697, 701 (Iowa 1993). The court is limited on review to the record that was before the Board. Id. While a preponderance of competent evidence is a higher standard than substantial evidence, this is not de novo review. Id.; Walthart v. Bd. of Dirs., 694 N.W.2d 740, 744 (Iowa 2005). A preponderance of the evidence is the evidence "that is more convincing than opposing evidence" or "more likely true than not true." Holliday v. Rain & Hail L.L.C., 690 N.W.2d 59, 63-64 (Iowa 2004). It is evidence superior in weight, influence, or force. Walthart, 694 N.W.2d at 744.

B. Preponderance of Competent Evidence. Martinek was terminated on June 30, 2007. Her two-year contract expired at the end of the 2006-2007 school year. Iowa Code section 279.24 governs this controversy. This section reads: "The notice shall state the specific reasons to be used by the school board for considering termination which for all administrators except superintendents shall be for just cause." Iowa Code § 279.24(5)(b).

In Martinek I, this court reiterated that, for the purposes of the nonrenewal provision of Iowa Code section 279.24,² just cause "`include[s] legitimate reasons relating to the district's personnel and budgetary requirements.'" Martinek I, 760 N.W.2d at 457 (quoting Briggs v. Bd. of Dirs., 282 N.W.2d 740, 742 (Iowa 1979)). The District claims Martinek was terminated because of: (1) declining enrollment, (2) budgetary restrictions and problems, (3) reduction of position(s), and (4) realignment of school organization. These alleged grounds for termination are clearly related to the district's personnel and budget needs. Thus, the only issue remaining is to determine whether the Board's decision to terminate Martinek for these stated reasons is supported by a preponderance of competent evidence in the record. Banke, 498 N.W.2d at 701.

In its ruling in favor of the District, the district court explicitly addressed only three of the reasons argued in support of Martinek's termination: (1) declining enrollment, (2) budgetary problems, and (3) reduction of staff. The District did not seek an enlargement under Iowa Rule of Civil Procedure 1.904(2) of the trial court's decision requesting that the court address its fourth rationale; however, the district court discussed the realignment of school organization as part of its discussion about the District's reduction of staff. We will uphold a district court ruling on a ground other than the one upon which the district court relied provided the ground was urged in that court. Jasper v. H. Nizam, Inc., 764 N.W.2d 751, 774-75 (Iowa 2009); see also Ritz v. Wapello County Bd. of Sup'rs, 595 N.W.2d 786, 789 (Iowa 1999) ("Rule [1.904(2)] is directed at unsuccessful parties who intend to challenge the district court's ruling on issues it did not resolve. A successful party would have no motivation to raise a rule [1.904(2)] motion to challenge the basis upon which the district court made its decision. Consequently, the requirements of rule [1.904(2)] are only applied to unsuccessful parties challenging the district court decision.").

1. Declining enrollment. The District asserts that it has experienced a dramatic decline in enrollment since 1999. In upholding Martinek's termination, the Board adopted the ALJ's findings of fact and conclusions of law. In his proposed decision, the ALJ stated:

The Belmond-Klemme School District, like most districts in rural Iowa, has experienced significant declines in student enrollment over the last several decades. Specifically in this district, reductions...