Carter v. Smith
366 S.W.3d 414
Ky.2012Background
- Carter served as Bourbon County schools superintendent until December 2002, then became a consultant under a one-year contract.
- In December 2002, the Board discussed Carter's resignation and consulting contract in a closed session.
- Carter received payments of $20,536.92 for January–February 2003 before an injunction halted further payments.
- Attorney General challenges and a Bourbon Circuit Court injunction led to escrow of funds and litigation over OMA compliance.
- The circuit court voided the consulting contract; Board actions were challenged as improper under the Open Meetings Act.
- Kentucky Supreme Court held the Board violated the Open Meetings Act by closing the session to discuss the contract, making the contract voidable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the litigation exception authorize closed session? | Smith: litigation threat justified closure. | Board: closed session permissible under litigation exception. | Litigation exception did not apply; threat was insufficient. |
| Did the personnel exception apply to discuss resignation or contracting an independent contractor? | Smith: personnel exception could cover resignation or contractor issues. | Board: exceptions allowed disclosure of resignation/contract with Carter. | Personnel exception did not cover resignation or independent-contractor contract. |
| Could the Board ratify improper closed-session actions in open session? | Carter: ratification preserves validity of actions. | Board: ratification in open session validates actions. | Cannot ratify actions taken in an improper closed session. |
| Was there substantial compliance with the OMA to render actions valid? | Carter: no substantial compliance occurred; contract voidable. | Board: some compliance; actions should stand. | No substantial compliance; actions voidable; contract voidable, not void ab initio. |
Key Cases Cited
- Ratliff v. Floyd County Bd. of Educ., 955 S.W.2d 921 (Ky. 1997) (strictly construe open meetings exceptions)
- Hammons v. Hammons, 327 S.W.3d 444 (Ky. 2010) (summary-judgment standard and de novo review)
- Giddings & Lewis, Inc. v. Industrial Risk Insurers, 348 S.W.3d 729 (Ky. 2011) (de novo review; standards on evidence)
- Stinson v. State Bd. of Accountancy, 625 S.W.2d 589 (Ky. App. 1981) (voidability vs void for noncompliant actions)
- Lewis v. Morgan, 252 S.W.2d 691 (Ky. 1952) (independent contractor status in public boards)
- Hobson v. Howard, 367 S.W.2d 249 (Ky. 1963) (public school employee vs independent contractor distinction)
- Talbott v. Public Service Comm'n, 291 Ky. 109, 163 S.W.2d 33 (Ky. 1942) (attorneys/consultants as independent contractors)