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HomeMy WebLinkAbout90-590 ConfidentialSTATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 ADVICE OF COUNSEL August 30, 1990 90 -590 Re: Conflict, Public Official /Employee, Township Commissioners, Lawsuit, Discrimination, Vote, Personal Liability. This responds to your letter of July 31, 1990, in which you requested confidential advice from the State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Law presents any prohibition or restrictions upon township commissioners from participating or voting regarding the possible settlement of a lawsuit against the township and against them officially and personally relative to an alleged discrimination claim. Facts: As the solicitor for A Township and on behalf of the Board of Commissioners, you request an advisory regarding a potential conflict concerning an action filed by a former township employee under the Civil Rights Act of 1964 and 42 U.S.C. 1983 against the township, the board of commissioners and three commissioners individually and as township commissioners. The lawsuit alleges discrimination against the plaintiff by reason of sex and elimination of plaintiff's job for political reasons. The lawsuit names three of the township commissioners individually as defendants seeking compensatory and punitive damages on the allegations that their official actions were taken for political reasons so as to preclude any immunity under state or federal law. Of the five member board, two of the members are not named as individual defendants. A proposal has been submitted whereby the township would pay the sum of money and settlement of the case which would include dismissal of the claims for compensatory and punitive damages against the three commissioners named as individual defendants. Those commissioners are still in office and their participation in the settlement appears necessary for purposes of the quorum and for the votes necessary to approve use of township funds. You conclude by requesting an advisory as to the legality of participating of the three commissioners named as individual defendants as to voting to use township funds to settle this case. Page 2 Discussion: As commissioners for A Township, the three individuals are public officials as that term is defined under the Ethics Law, and hence they are subject to the provisions of that law Section 3(a) of the Ethics Law provides: Section 3. Restricted Activities. (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. The following terms are defined in the Ethics Law as follows: Section 2. Definitions. "Conflict or conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member or his immediate family or a business with which he or a member of his immediate family is associated. "Authority of office or employment." The actual power provided by law, the .:.:_.... .exercise of - which -is : ,:- necessary : to "the performance of duties and responsibilities unique to a particular public office or position of public employment. In addition, Sections 3(b) and 3(c) of the Ethics Law provide in part that no person shall offer to a public official /employee anything of monetary value and no public official /employee shall solicit or accept any thing of monetary value based upon the understanding that the vote, official action, or judgement of the public official /employee would be Page 3 influenced thereby. Reference is made to these provisions of the law not to imply that there has or will be any transgression thereof but merely to provide a complete response to the question presented. Section 3(j) of the Ethics Law provides as follows: Section 3. Restricted activities. (j) Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee, who in the discharge of his official duties, would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest as a public record in a written memorandum filed with the person responsible for recording the minutes of the meeting at which the vote is taken, provided that whenever a governing body would be unable to take any action on a matter before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted to vote if disclosures are made as otherwise provided herein. In the case of a three - member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest, and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. If a conflict exists, Section 3(j) requires the public official /employee to abstain as well as file a written memorandum to that effect with the person recording the minutes or supervisor. In the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s), then in that Page 4 event participation is permissible provided the disclosure requirements noted above are followed. In applying the provisions of Section 3(a) of the Ethics Law quoted above to the instant matter, it is clear that the three commissioners in question who are sued individually would have a conflict in this case because their use of authority of office through participating and voting on the settlement of this lawsuit would have a private pecuniary benefit to themselves individually in that they would be voting to expend township rather than their own personal funds in attempting to compromise and settle the lawsuit in question. In light of the conflict, Section 3(j) of the Ethics Law would require them to abstain as well as comply with the disclosure requirements set forth above. However, since the conflict of the three commissioners would result in a lack of a quorum, Section 3(j) in that particular instance would allow them to vote on the matter provided once again that the disclosure requirements of Section 3(j) are satisfied. The propriety of the proposed conduct has only been addressed under the Ethics Law; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Law has not been considered in that they do not involve an interpretation of the Ethics Law. Specifically not addressed herein is the applicability of the Second Class Township Code, the allowability of a surcharge action or the propriety of the use of township funds to settle a lawsuit wherein individuals are named in both an official and individual capacity. Conclusion: As commissioners for A Township, the three commissioners are public officials subject to the provisions of the Ethics Law. Under Section 3(a) of the Ethics Law, first class township commissioners who are officially and individually named as defendants in a lawsuit alleging sex discrimination and termination for political reasons have a conflict in voting to use township funds to settle the case. Since the conflict of three of the five board members would result in the lack of a quorum, those three members could vote provided the disclosure requirements of Section (j) of ` the Ethics Law are satisf ied. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Law. Pursuant to Section 7(11), this Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, providing . the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. Page 5 such. This letter is a public record and will be made available as Finally, if you disagree with this Advice or if you have any reason to challenge same, you may request that the full Commission review this Advice. A personal appearance before the Commission will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be in writing and must be received at the Commission within 15 days of the date of this Advice pursuant to 51 Pa. Code §2.12. incerely, Vincent 3'. Dopko, Chief Counsel