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Agenda 11/18/2014 Item # 16K311/18/2014 16.K.3. EXECUTIVE SUMMARY Recommendation to direct the County Attorney to pursue an appeal in the case entitled Penny Phillippi v. Collier County, Case No. 14- 416 -CA. OBJECTIVE: To appeal an adverse decision by the Trial Court which granted Ms. Phillippi's Motion for Summary Judgment and awarded severance damages and attorney's fees to Ms. Phillippi. CONSIDERATIONS: On September 30, 2014, the Trial Court granted Ms. Phillippi's Motion for Summary Judgment and awarded Ms. Phillippi severance damages ($42,394.23 plus prejudgment interest for a total of $45,877.32) and attorney's fees pursuant to Section 448.08, Fla. Stat. The Court reserved jurisdiction to determine the amount of the attorney's fees (estimated to be $22,000). The Trial Court's Order is attached together with the Hearing Transcript of the Court's ruling. It is the position of the County Attorney that the decision is in error and that as a matter of law Ms. Phillippi is entitled to neither severance damages nor attorney's fees in that (1) the Board appropriately utilized its Reconsideration Procedure, rescinded the contract extension that had been awarded, and offered a month -to -month extension under the tenns of the original agreement; and (2) shortly thereafter, Ms. Phillippi voluntarily resigned her position with Collier County in a letter dated January 28, 2013 (attached hereto). The County's deadline to file a Notice of Appeal in this matter is Monday, November 24, 2014 The core issue here is identical to the Chris Curry appeal, which is the validity of the Board's Reconsideration Ordinance. If Courts are unwilling to recognize and enforce the Board's exercise of this procedural rule, the Reconsideration Ordinance will need to be substantially revised, as there would never be certainty in the Board's taking such action. FISCAL IMPACT: Outside counsel costs are expected to be under $5,000, as the bulk of the appellate work will be done in- house. There is the possibility that additional attorney's fees could be awarded if the appeal is unsuccessful. GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the County Attorney be directed to pursue an appeal in the case entitled Penny Phillippi v. Collier County, Case No. 14- 416 -CA. PREPARED BY: Jeffrey A. Klatzkow, County Attorney Attachments: (1) Order dated October 27, 2014; (2) Partial Transcript of the Summary Judgment Hearing dated September 30, 2014; and (3) Ms. Phillippi's Letter of Resignation dated January 28, 2013. Packet Page -2165- 11/18/2014 16.K.3. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.K.16.K.3. Item Summary: Recommendation to direct the County Attorney to pursue an appeal in the case entitled Penny Phillippi v. Collier County, Case No. 14- 416 -CA. Meeting Date: 11/18/2014 Prepared By Name: CrotteauKathynell Title: Legal Secretary, CAO Office Administration 11/6/2014 l l: l 1:13 AM Approved By Name: GreeneColleen Title: Assistant County Attorney, CAO General Services Date: 11/6/2014 4:56: l 6 PM Name: IsacksonMark Title: Director -Corp Financial and Mngtnt Svs, Office of Management & Budget Date: 11/7/2014 8:51:06 AM Name: KlatzkowJeff Title: County Attorney, Date: 11/7/2014 11:35:59 AM Name: OchsLeo Title: County Manager, County Managers Office Date: 1 1/] 0/2014 10:29:57 AM Packet Page -2166- 11/18/2014 16.K.3. IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT IN AND FOR COLLIER COUNTY, FLORIDA CIRCUIT CIVIL PENNY PHILLIPPI, Plaintiff, Case No. 2014 CA 416 C, rJ 0 �-- vs. Y� N COLLIER COUNTY, a political 7;Z N a=i subdivision of the State of Florida, ' ° C-) Defendant. C = r 0 W aO ORDER GRANTING PLAINTIFF'S MOTION FOR FINAL SUMMARY JUDGMENT THIS CAUSE having come before this Honorable Court upon Plaintiff s Motion for Final Summary Judgment, and the Court having heard arguments of counsel, and being otherwise fully advised in the premises, it is hereby ORDERED and ADJUDGED that Plaintiff s Motion for Final Summary Judgment is GRANTED on the following grounds: 1. The Collier County Board of County Commissioners entered into a written contract with the plaintiff on November 13, 2012. The Employment Agreement was for three years and included the right to severance benefits if the county terminated the agreement. 2. The Board of County Commissioners rescinded its written agreement on January 22, 2013. At the same meeting, the Board of County Commissioners offered the Plaintiff a replacement month-to -month contract. 3. Collier County's contention that it is authorized to execute contracts and then rescind them through its reconsideration ordinance is without merit. The reconsideration ordinance does not provide the Collier County immunity for its actions in breaching written contract. 4. Under the totality of the circumstances, the Court additionally finds that there was not any type of voluntary resignation. Page 1 of 2 Packet Page -2167- 11/18/2014 16.K.3. 5. The court finds that the Plaintiff is entitled to attorneys fees pursuant to Florida Statute 448.08 and reserves for determination of the amount to be awarded. 6. As a result of the foregoing, the court grants the Plaintiff's Summary Final Judgment motion in the amount of $42,394.20 as set forth in said motion, plus prejudgment interest from January 22, 2013 through October 23, 2014 in the amount of $3,526.28 for a total of $45,920.48. d DONE and ORDERED in Chambers at Collier County, Naples, Florida this yDay of October, 2014. s Hon able J s R. Shenko Cir h Judge Copies provided electronically to: Gregory N. Woods, Esquire (gwoods @lawfn=aples.com) Colleen Greene, Esquire (colleenegreene @colliergov.net) Joseph D. Stewart, Esquire 6stewart@jdslegal.com) Page 2 of 2 Packet Page -2168- 11/18/2014 16.K.3. IN THE 20TH JUDICIAL CIRCUIT COURT IN AND FOR COLLIER COUNTY, FLORIDA CASE NO. 14 -CA -416 PENNY PHILLIPPI, Plaintiff(s), V. COLLIER COUNTY, a political subdivision of the State of Florida, Defendant(s). EXCERPT FROM, TRANSCRIPT OF PROCEEDINGS (Ruling of the Court) DATE TAKEN: September 30, 2014 TIME: 1:30 p.m. PLACE: Collier County Courthouse BEFORE: Honorable James Shenko This cause came on to be heard at the time and place aforesaid, when and where the following proceedings were reported by: Elizabeth M. Brooks, RPR, FPR Gregory Court Reporting Service, Inc. 2650 Airport Road South Naples, FL 34112 Packet Page -2169- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 APPEARANCES For the Plaintiff(s): JOSEPH D. STEWART, ESQ. Joseph D. Stewart, P.A. 2671 Airport Road South Suite 302 Naples, FL 34112 For the Defendant(s): GREGORY N. WOODS, ESQ. Woods, Weidenmiller, Michetti & Rudnick, PL 9045 Strada Stell Court Suite 400 Naples, FL 34109 GREGORY COURT REPORTING SERVICE Packet Page -2170- 11/18/2014 16.K.3. 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11/18/2014 16. K. 3. 3 (The following is an excerpt from the proceedings:) THE COURT: The Court is prepared to make a ruling. The Court has reviewed all of the submissions from both counsel, which, frankly, took much more time to review than the hearing. And I thank you for that. It helps clarify everything for me. It does appear that there was a meeting with the Board of County Commissioners on November 13th, 2012, in which there was a signed contract, which was referenced by Mr. Stewart in his opening comments; that the Board then met on January 22nd, 2013. At that time there was a three -to -two vote to rescind what had previously been a signed contract and restoring the contract to month -to- month. The Court has reviewed the ordinance also -- ordinances also that had been referenced by counsel for the County, and does not see where that ordinance actually provides any immunity for their actions in breaching a signed agreement. And Mr. Stewart's suggestion is that maybe they ought not to be signed until they have the second meeting GREGORY COURT REPORTING SERVICE Packet Page -2171- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11/18/2014 16.K.3. 4 or the 30 days, but there is nothing in there that seems to provide immunity for the County. Under the totality of the circumstances in this case, the Court is additionally not finding that there was any type of voluntary resignation. Also in reviewing the case law that was submitted and the arguments today, the Court does find that there is an entitlement to attorney's fees and the Court reserves on an amount. The Court was provided numerous submissions by counsel, and the Court notes that under Tab 1, Page 2, heading called Damages, referenced by counsel for the plaintiff, Mr. Stewart, outlined is the detailed request for loss of severance pay. The Court accepts those calculations as accurate. And the Court recognizes that there may need to be some slight adjustment for prejudgment interest. The Court is reserving jurisdiction to hear a fee hearing at a later date, if necessary, and respectfully requests that Mr. Stewart prepare a proposed order consistent with this ruling. MR. STEWART: Excuse me, Judge. THE COURT: That you prepare a proposed order. MR. STEWART: Do you want me to just simply grant the motion to incorporate Your Honor's GREGORY COURT REPORTING SERVICE Packet Page -2172- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11 /18/2014 16. K.3. 5 rulings in it? THE COURT: I believe that it should be granted, but you probably ought to incorporate the damages outlined that you've given to the Court. And also indicate the basis, that the Court did not believe that she ordinance provides immunity for the County per the reconsideration ordinance. Thank you. We're adjourned. (Proceedings adjourned at 11:10 a.m.) GREGORY COURT REPORTING SERVICE Packet Page -2173- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 i5 16 17 18 19 20 21 22 23 24 25 11/18/2014 16.K.3. 6 CERTIFICATE OF REPORTER STATE OF FLORIDA COUNTY OF COLLIER I, Elizabeth M. Brooks, Registered Professional Reporter, Florida Professional Reporter, do hereby certify that I was authorized to and did report the foregoing proceedings, and that the transcript is a true and correct record of my stenographic notes. DATED this 3rd day of October, 2014, at Naples, Collier County, Florida. Elizabeth M. Brooks Registered Professional Reporter Florida Professional Reporter GREGORY COURT REPORTING SERVICE Packet Page -2174- CRA Governing Board Commissioner Donna Fiala Chairwoman Commissioner Tom Henning Commissioner Tint Nance Commissioner Fred W. Coyle Commissioner Georgia Hiller CRA Advisory Board Michael "Mike" Facundo Chairman Edward "Ski" Olesky Jeffrey Randall Robert Haiman Fx- officio Julio Estremcra Carrie Williams Dan Rosario Crislina Perez Floyd Crc%vs James Wall Bvu Deyo CRA Staff Penny Phill ippi Executive Director 239.252.2310 Bradley Muckel Project Manager 239.252.5549 Christie Betancourt Administrative Assistant 239.252.2313 Marie Capita Manager fBDC 239169.9629 James sanvihts Project Manager MSTU 239.867.4121 11/18/2014 16.K.3. Collier County Community Redevelopment Agency IMMOKALEE CRA, The Place to Call Home ! January 28, 2013 The Honorable Donna Fiala Chairwoman Collier County Community Redevelopment Agency 3299 Tamiami Trail East Naples, FL 34112 Dear Ms. Fiala: I am writing to notify you that I am resigning from my position as Executive Director of the Collier County Community Redevelopment Agency in Immolcalee. My last day of employment will be February 8, 2013. Although my departure is bitter sweet, I am grateful for having had the opportunity to serve as Director of this fine agency and to have served within this community. I also appreciate your professional guidance and support and wish you and the CRA the best of success in your fiiture endeavors. Very sincerely, Penny Ph9lippi Executive Director Collier County Community Redevelopment Agency - Immolcalee Packet Page -2175-