Southern Union State Community College et al. v. Susan Salatto (Appeal from Montgomery Circuit Court: CV-08-211) Opinion Of October 7, 2011, Modified

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REL: 10/07/2011 R e l : 03/302012 As m o d i f i e d on d e n i a l o f r e h e a r i n g . Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e Reporter of Decisions, Alabama A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ((334) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . ALABAMA COURT OF CIVIL APPEALS OCTOBER TERM, 2011-2012 2091201 Southern Union State Community C o l l e g e e t a l . v. Susan S a l a t t o Susan S a l a t t o v. Southern Union S t a t e Community C o l l e g e e t a l . Appeals from Montgomery C i r c u i t (CV-08-211) PITTMAN, J u d g e . Court 2091201 These appeals arise from Montgomery Circuit Court concerning removal Susan of Salatto a from the judgment the office entered of the of legality by the president of S o u t h e r n U n i o n S t a t e Community C o l l e g e ( " S o u t h e r n U n i o n " ) . On J a n u a r y 24, 2008, t h e A l a b a m a S t a t e B o a r d o f E d u c a t i o n ("the Board") voted to remove Salatto from the office of p r e s i d e n t of Southern Union over the o b j e c t i o n of her counsel, who contended t h a t the removal c o u l d not v a l i d l y occur except u n d e r t h e a u t h o r i t y o f , and c o n s i s t e n t w i t h t h e t e r m s o f , t h e F a i r D i s m i s s a l A c t , § 36-26-100 e t s e q . , A l a . Code 1975 FDA"). Salatto simultaneously initiated ("the administrative p r o c e e d i n g s and a c i v i l a c t i o n s e e k i n g r e v i e w o f t h e p r o p r i e t y o f h e r r e m o v a l f r o m o f f i c e , and she a l s o s o u g h t review of Salatto's Southern Union's election p r e v i o u s employment a t t h a t administrative proceeding, proceedings a f t e r which were to administrative treat institution. consolidated Southern Union as The into and t h e B o a r d d i s m i s s a l on t h e c l a i m e d b a s e s t h a t t h e FDA ended two one sought d i d not apply to S a l a t t o ' s employment as p r e s i d e n t o f S o u t h e r n U n i o n o r t o h e r f o r m e r employment by S o u t h e r n U n i o n as a d e a n ; t h o s e parties a l s o sought a s t a y of the a d m i n i s t r a t i v e p r o c e e d i n g s pending [ s u b s t i t u t e d page 2] 2091201 t h e outcome o f t h e c i v i l a c t i o n . who had issued been an assigned order on The Salatto's May 23, a d m i n i s t r a t i v e law administrative 2008, declaring r e m o v a l as p r e s i d e n t v i o l a t e d t h e FDA proceedings that and t h a t , she was e n t i t l e d t o r e t u r n t o work i n a p r e v i o u s she judge Salatto's alternatively, h e l d at Southern Union. had p o s i t i o n that The B o a r d , S o u t h e r n U n i o n , and S o u t h e r n U n i o n ' s then sought Montgomery review Circuit pending c i v i l of the Court a c t i o n , and by administrative asserting the circuit court). Salatto 1 filed f a v o r as t o h e r on favor other parties 2010, the decision i n her (who circuit of the claims in as t o t h e claims entered administrative a judge On of denied seeking a a judgment counterclaims judgment law and the Salatto's a motion opposed S a l a t t o ' s m o t i o n ) . court in ( w h i c h r e q u e s t was summary j u d g m e n t i n h e r the p l e a d i n g s decision those p a r t i e s a l s o sought a s t a y the a d m i n i s t r a t i v e law judge's o r d e r by president of the August 24, upholding and the ordered The B o a r d , S o u t h e r n U n i o n , and S o u t h e r n U n i o n ' s p r e s i d e n t p e t i t i o n e d f o r a w r i t o f mandamus, s e e k i n g r e v i e w o f t h e c i r c u i t c o u r t ' s d e n i a l of the s t a y o r d e r ; however, t h i s c o u r t denied that petition as having been filed beyond the p r e s u m p t i v e l y r e a s o n a b l e t i m e s e t f o r t h i n R u l e 2 1 ( a ) , A l a . R. App. P. Ex p a r t e S o u t h e r n U n i o n S t a t e Cmty. C o l l . , (No. 2071238, O c t o b e r 27, 2008) ( A l a . C i v . App. 2008). 1 3 2091201 implementation relief of s o u g h t by that decision, and i t denied all the p a r t i e s . S o u t h e r n U n i o n , t h e B o a r d , and S o u t h e r n U n i o n ' s have a p p e a l e d f r o m t h e c i r c u i t c o u r t ' s decision has the administrative cross-appealed, t h a t the or of circuit adversely she court's Cnty. ( A l a . C i v . App. The judge. procedural the and f a v o r was i n t e r e s t s , and S h e r i f f ' s Dep't, 13 So. r a i s e d by the to terminate Ex 996 FDA such substantive that rights she is set portions has provided the FDA. case i s of Southern Union i s entitled forth Since to the therein. To the h i s t o r y i t s enactment t h a t c e r t a i n procedures are f o l l o w e d when c o u n t y and c i t y b o a r d s o f e d u c a t i o n educational 993, parties in this of FDA See 3d of the erroneous i n such circumstances. f i r s t l o o k t o t h e t e x t and 1983, appeal i t is well settled r e s o l v e t h a t i s s u e , we pertinent Salatto a r g u e i n h e r b r i e f on w h e t h e r S a l a t t o ' s d i s m i s s a l as p r e s i d e n t by Although the 2009). central issue governed president judgment u p h o l d i n g judgment i n her a f f e c t e d her Jefferson law does n o t that dismissal i s appropriate parte other and to in be two-year i n s t i t u t i o n s under the d i r e c t i o n of the Board seek t h e employment o f " e m p l o y e e s " o f t h o s e 4 entities. 2091201 See A l a . Code 1975, § 36-26-100. FDA to apply to a p a r t i c u l a r S t a t e d a n o t h e r way, p e r s o n , he or she e m p l o y e e o f an e n t i t y c o v e r e d u n d e r t h e FDA. P e a r s o n , 20 So. 3d 120, 124 if one i s not employed an " e m p l o y e e " The was ( A l a . C i v . App. f o r the must be an See H o l l a n d v. 2008) ( n o t i n g t h a t by a c o v e r e d e n t i t y , one w o u l d n o t be f o r FDA p u r p o s e s ) . position taken i n t h i s litigation by S a l a t t o , which a d o p t e d by t h e a d m i n i s t r a t i v e l a w j u d g e i n h i s o r d e r and w h i c h was l a t e r e n d o r s e d by t h e c i r c u i t c o u r t i n i t s j u d g m e n t upholding that order, Southern Union, which i s that Salatto i s a two-year was an employee educational of institution under the d i r e c t i o n of the Board, at the time t h a t t e r m i n a t i o n o f h e r employment was s o u g h t . affiliated 1975, § junior 16-60-130 (September 3, 1968) Southern Union college et That Southern Union i s a s t a t e - i s beyond seq.; see doubt. also See A l a . Code E x e c u t i v e Order In 3 ( r a t i f y i n g s t a t e a c q u i s i t i o n of the former College). However, s i m p l y because s e r v e d as p r e s i d e n t o f S o u t h e r n U n i o n does n o t r e s o l v e she was No. Salatto whether an e m p l o y e e o f S o u t h e r n U n i o n . analyzing covered e n t i t y whether under a person t h e FDA, i s an Alabama 5 "employee" courts of are guided a by 2091201 " g e n e r a l A l a b a m a l a w p e r t a i n i n g t o employment r e l a t i o n s h i p s . " P e t e r s o n v. Lowndes C n t y . Bd. (Ala. 2007) . o f Educ., In P e t e r s o n , our 980 So. supreme c o u r t 2d 975, observed 977 that w h e t h e r p a r t i c u l a r p e r s o n s may p r o p e r l y be deemed e m p l o y e e s a covered [entity] were entity had "depends a right upon to select employed Id. at the and extent control 978. to which them w h i l e Peterson also of the they quoted l a n g u a g e f r o m D a v e n p o r t - H a r r i s F u n e r a l Home, I n c . v. C h a n d l e r , 38 A l a . App. 463, 466, 88 So. 2d 875, 877 (1956), indicating t h a t t h e r i g h t t o s e l e c t t h e p e r s o n c l a i m e d t o be an e m p l o y e e is 980 an indispensable element of an employment relationship. So. 2d a t 977-78. What e n t i t y h o l d s t h e r i g h t , u n d e r A l a b a m a l a w , t o s e l e c t the p r e s i d e n t of a two-year Under A l a b a m a l a w , the a u t h o r i t y vested i n a single entity: recommendation officer) of college the s u c h as S o u t h e r n t o make t h a t Union? selection is the Board, a c t i n g pursuant to the chancellor (i.e. , of the Postsecondary Education "The State Board recommendation of the authorized to: chief executive Department. of Education, upon Chancellor, shall be 6 2091201 "(3) A p p o i n t t h e p r e s i d e n t o f e a c h junior c o l l e g e and t r a d e school, each p r e s i d e n t to serve at the pleasure of the board." A l a . Code 1975, § 16-60-111.4. 2d 418, 420 ( A l a . 1 9 9 3 ) , t h e p r o v i s i o n s o f t h a t s t a t u t e were held to permit presidency § I n D e W i t t v. G a i n o u s , 628 So. the Board to u n i l a t e r a l l y terminate at a state 16-60-111.4(3) the junior college: presidents of a person's "Under Alabama's ... junior c o l l e g e s are a t - w i l l employees o f the Board o f E d u c a t i o n serve at the pleasure Although president's United DeWitt d i d not i n v o l v e summary d i s c h a r g e , States Alabama of the Board." did District examine postsecondary-education aff'd, 152 F.3d technical-college 935 f o r the interplay presidents. State Board of Education, an FDA between to a District the In Shuford ( 1 1 t h C i r . 1998) t h a t he h a d been d i s c h a r g e d challenge Middle 978 F. Supp. 1008 president added.) a subsequent d e c i s i o n of the Court the (Emphasis and contended, FDA v. of and Alabama (M.D. A l a . 1 9 9 7 ) , (table), among i n contravention a other former things, of due-process p r i n c i p l e s and a s s e r t e d t h a t , among o t h e r t h i n g s , t h e FDA gave him a property Supp. i n t e r e s t i n h i s p o s i t i o n as p r e s i d e n t . a t 1022-23. After noting 7 the holding 978 F. i n DeWitt, the 2091201 federal district entitlement court claim, t i m e ) an e x c e p t i o n rejected noting that [an]other been state originally t h e FDA property- contained (at that from i t s p r o v i s i o n s t o the e f f e c t t h a t the employment o f " ' e m p l o y e e s who ... the president's [were] ... o t h e r w i s e c o v e r e d by s t a t u t e ' " at the time adopted in 1983 was not i n c l u d e d w i t h i n t h e s c o p e o f t h e FDA. that t h e FDA intended 978 F. Supp. had to be a t 1024 ( q u o t i n g A l a . Code 1975, § 36-26-100, as i t r e a d i n 1 9 9 7 ) . S a l a t t o c o r r e c t l y n o t e s t h a t t h e A l a b a m a L e g i s l a t u r e has not remained deleted "other as to this issue Shuford was enacted that f r o m t h e FDA t h e e x c e p t i o n state statute[s]." In Glass (Ala. since I n 2002, an amendment t o t h e FDA was decided. silent v. A n n i s t o n C i v . App. p e r t a i n i n g t o c o v e r a g e by A c t No. 2002-508, A l a . A c t s C i t y Board of Education, 2 0 0 6 ) , we e m p l o y e d by a m u n i c i p a l held education that 2002. 957 So. 2d 1143 an a t t e n d a n c e officer b o a r d was, by v i r t u e o f t h e 2002 amendment t o t h e FDA, e n t i t l e d t o t h e p r o t e c t i o n s o f t h e FDA despite board's the existence dismissal interpretation removes the of of other powers. the statutory 2002 statutes Although amendment underpinning 8 of addressing this that court's t o t h e FDA in Shuford (while Glass not 2091201 affecting i t s due-process DeWitt or mention alter analysis), i t i n any way, those p r o v i s i o n s G l a s s d i d not address n o r d i d t h e 2002 amendment o f t h e FDA limiting i t s scope p e r t i n e n t p a r t , " p e r s o n s e m p l o y e d by ... t w o - y e a r to, i n educational i n s t i t u t i o n s u n d e r t h e c o n t r o l and a u s p i c e s o f t h e S t a t e B o a r d of E d u c a t i o n . " A l a . Code 1975, § 36-26-100 (emphasis added). S a l a t t o p o s i t s i n her p r i n c i p a l a p p e l l a t e b r i e f that the o n l y argument t h a t can be p r o p e r l y m a r s h a l e d a g a i n s t d e e m i n g her included within t h e FDA i s that there i s a preexisting s t a t u t e d e c l a r i n g t w o - y e a r c o l l e g e p r e s i d e n t s t o be employees. the "at-will" However, § 1 6 - 6 0 - 1 1 1 . 4 ( 3 ) does n o t m e r e l y a d d r e s s n a t u r e o f employment o f a t w o - y e a r college president; i t l o c a l i z e s t h e s o u r c e o f t h e c o r e employment power o f s e l e c t i o n as to such themselves. presidents in the Board, The B o a r d , a l t h o u g h m e n t i o n e d not the colleges i n § 36-26-100 as c o n t r o l l i n g two-year e d u c a t i o n a l i n s t i t u t i o n s t h a t are covered e n t i t i e s under the FDA. (Ala. i s not i t s e l f 2010), that, "unless a p a r t i c u l a r i n § 36-26-100, i t s e m p l o y e e s FDA" a covered e n t i t y n o t e d i n F r a n k s v. J o r d a n , 55 So. 3d 1218, C i v . App. listed the We t h e FDA, and will not have 9 will n o t be "substantive or under 1223 entity i s c o v e r e d by procedural 2091201 employment r i g h t s u n d e r t h e FDA." 2002 a c t e d exclusion right to of eliminate otherwise-covered substantive protections inclusion place as the an Board, any Thus, t h e that "employees" under the the category of might defeat to i t did the procedural but FDA, p e r s o n s e m p l o y e d by within legislature in other and not entities, by such "employees" under the FDA. Salatto may be a l s o contends t h a t the upheld employee of Salatto does on the both the not rationale Board and demonstrate circuit that she Southern in her carried s e l e c t i o n as p r e s i d e n t out s t a t u t e , was her duties as staff brief control Salatto include fire however, i t is a l e g a l r i g h t of himself or h e r s e l f . she herself, t o a c t on behalf to q u a l i f i c a t i o n s p r e s c r i b e d , absurd to a president We construe § 16¬ to to, i n e f f e c t , hire or the that and power agree w i t h 10 by as t o i t s f a c u l t y r e g u l a t i o n s a d o p t e d , by t h e B o a r d ) , see A l a . Code 1975, 60-111.7; that o r o f t h e means by w h i c h president. an However, r i g h t of empowered d u r i n g h e r p r e s i d e n c y (albeit according judgment actually Union. any o f S o u t h e r n U n i o n t o make h i r i n g d e c i s i o n s and was appellate S o u t h e r n U n i o n , as a p u b l i c e n t i t y , had over her court's appellants that 2091201 the l e g i s l a t u r e has c r e a t e d a chain o f command i n t h i s a r e a t h a t i s s i m p l e t o f a t h o m -- j u s t as t h e members o f t h e f a c u l t y and s t a f f o f S o u t h e r n U n i o n a r e a n s w e r a b l e t o i t s p r e s i d e n t to the performance o f t h e i r d u t i e s , the p r e s i d e n t as o f Southern U n i o n i s a n s w e r a b l e t o t h e B o a r d as t o t h e p e r f o r m a n c e o f h i s or h e r d u t i e s . compensation documents, A d d i t i o n a l l y , that f o r her services, 2 S a l a t t o may have and related received income-tax u n d e r S o u t h e r n U n i o n ' s i n s t i t u t i o n a l name does n o t negate the p r o p o s i t i o n responsible t h a t , by s t a t u t e , f o r Salatto's c o n t r o l l e d the exercise Salatto further hiring as of her d u t i e s . contends, t h e B o a r d a l o n e was president and alone 3 and t h e a d m i n i s t r a t i v e law j u d g e d e t e r m i n e d , t h a t h e r p r i o r employment b y S o u t h e r n U n i o n in various academic roles between 1976 a n d 2004, when she T h e r e c o r d r e f l e c t s t h a t t h e B o a r d by r e s o l u t i o n h a s a d o p t e d a s c h e d u l e g o v e r n i n g s a l a r y payments t o " p e r s o n n e l " (including presidents) "employed a t " ( n o t by) two-year colleges. 2 S i m i l a r l y , t h a t S a l a t t o was a f f o r d e d i n s u r a n c e u n d e r t h e P u b l i c E d u c a t i o n Employees' H e a l t h Insurance Plan i s n o t m a t e r i a l g i v e n t h a t t h e s t a t u t o r y d e f i n i t i o n o f an " e m p l o y e e " f o r p u r p o s e s o f s u c h c o v e r a g e i s " [ a ] n y ... p e r s o n who i s e m p l o y e d f u l l - t i m e i n any p u b l i c i n s t i t u t i o n o f e d u c a t i o n , " n o t b y any p u b l i c i n s t i t u t i o n o f e d u c a t i o n . A l a . Code 1975, § 16-25A-1(1) ( e m p h a s i s a d d e d ) . 3 11 2091201 became interim qualified president her for rights l e a v i n g an the FDA which for another under the two-year FDA. That argument divested academic p o s t at a two-year c o l l e g e covered a president's position, for the p o s i t i o n at reasons we another have l e g i s l a t u r e has p r o v i d e d , elementary and stated schools who herein, is Although with respect to teachers secondary by institution, n e c e s s a r i l y n o t employment by t h a t i n s t i t u t i o n . public college, r i g h t s , once a c c r u e d , c a n n o t be p r e s u p p o s e s t h a t FDA by of the employed at have acquired " c o n t i n u i n g s e r v i c e " s t a t u s , f o r r e t e n t i o n of tenure r i g h t s i n the event t h a t such teachers or s u p e r v i s o r y 24-2, the a r e p r o m o t e d t o an p o s i t i o n , see l e g i s l a t u r e has g e n e r a l l y A l a . Code 1975, elected making tenure p o l i c y w i t h r e s p e c t B o a r d , see A l a . Code 1975, no p o r t i o n o f t h e FDA 24-2 in this 2008, had could any p r e v i o u s FDA delegate the issue to two-year c o l l e g e s to o r any B o a r d p o l i c y t h a t p a r a l l e l s § respect. any to § 16¬ of the § 1 6 - 6 0 - 1 1 1 . 4 ( 5 ) , and S a l a t t o c i t e s Simply put, l o n g c e a s e d t o be claim administrative rights, January 24, an e m p l o y e e o f S o u t h e r n U n i o n who and she S a l a t t o , on 16¬ cannot p r o p e r l y tack on employment e x p e r i e n c e i n q u a l i f y i n g employment t o [ s u b s t i t u t e d page 12] 2091201 o b t a i n FDA r i g h t s i n a w h o l l y d i f f e r e n t a r e a . So. See F r a n k s , 55 to the i n a p p l i c a b i l i t y of 3d a t 1224. Our c o n c l u s i o n s with respect t h e FDA t o S a l a t t o ' s employment as p r e s i d e n t o f S o u t h e r n U n i o n necessarily judge's impact order the v a l i d i t y t h a t was of the a d m i n i s t r a t i v e law a f f i r m e d by t h e c i r c u i t a d m i n i s t r a t i v e proceedings court. The i n i t i a t e d by S a l a t t o i n an e f f o r t t o c a u s e r e s c i s s i o n o f h e r d i s c h a r g e were i n i t i a t e d u n d e r A l a . Code 1975, § 36-26-115, providing for direct appeals to a d m i n i s t r a t i v e l a w j u d g e s i n t h e e v e n t a h e a r i n g due u n d e r t h e FDA has been proceedings denied; thus, both of her administrative were i m p l i c i t l y p r e d i c a t e d upon t h e a p p l i c a b i l i t y o f t h e FDA t o h e r s i t u a t i o n . B e c a u s e t h e FDA d i d n o t a p p l y t o S a l a t t o , h o w e v e r , we must c o n c l u d e t h a t the a d m i n i s t r a t i v e law j u d g e d i d n o t have j u r i s d i c t i o n t o d e c i d e t h e d i s p u t e b e t w e e n S a l a t t o and t h e B o a r d . failing to recognize The c i r c u i t the court s i m i l a r l y erred i n inapplicability of the FDA to authorities, we S a l a t t o ' s employment as p r e s i d e n t o f S o u t h e r n U n i o n . Based reverse upon the the judgment administrative foregoing of the facts circuit law judge's order 13 and court upholding the c o n c l u d i n g t h a t S a l a t t o was 2091201 discharged i n c o n t r a v e n t i o n o f t h e FDA. Further, on t h e a u t h o r i t y o f S h u f o r d , s u p r a , we c o n c l u d e t h a t b e c a u s e Salatto n e c e s s a r i l y h a d no p r o t e c t a b l e i n t e r e s t i n h e r employment, h e r constitutional necessarily challenges fail arising as a m a t t e r from and remand must o f l a w ; t h u s , we d e c l i n e h e r r e q u e s t t o remand as t o t h o s e i s s u e s . judgment her discharge t h e case We i n s t e a d r e v e r s e t h e f o r the entry o f a judgment d i s m i s s i n g t h e case and d i r e c t i n g t h e a d m i n i s t r a t i v e law judge (a) t o v a c a t e h i s o r d e r a n d (b) t o d i s m i s s b o t h a d m i n i s t r a t i v e p r o c e e d i n g s i n i t i a t e d by S a l a t t o . REVERSED AND REMANDED WITH INSTRUCTIONS AS TO THE APPEAL; CROSS-APPEAL Thompson, DISMISSED. P . J . , a n d B r y a n a n d Thomas, J J . , c o n c u r . Moore, J . , c o n c u r s i n t h e r e s u l t , w i t h o u t 14 writing.

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