ANGELO J. MAIMONE, PLAINTIFF-RESPONDENT, v. THE CITY OF ATLANTIC CITY, THE ATLANTIC CITY POLICE DEPARTMENT AND ARTHUR C. SNELLBAKER, DEFENDANTS-APPELLANTS.
Supreme Court of New Jersey
Argued March 6, 2006—Decided July 20, 2006.
188 N.J. 221 | 903 A.2d 1055
Caren Litvin argued the cause for respondent.
Judge SKILLMAN (temporarily assigned) delivered the opinion of the Court.
This appeal involves a claim under the Conscientious Employee Protection Act (CEPA),
I
Plaintiff Angelo Maimone has been a member of the Atlantic City Police Department since 1988. He was transferred in 1991 from a patrolman position to detective in the Special Investigations Unit. As a result, plaintiff became contractually entitled after one year to receive an additional 3% of his base salary. Beginning in 1993, plaintiff was assigned to conduct investigations of prostitution and other sexually-related offenses, which he continued to do until early 2001.
In May 2000, defendant Arthur C. Snellbaker was appointed Chief of the Atlantic City Police Department. According to plaintiff, around eight months after Snellbaker‘s appointment, Captain William Glass told him at a staff meeting that he could not initiate any new promotion of prostitution investigations unless they “directly impacted the citizens of Atlantic City.” Shortly thereafter, plaintiff‘s immediate supervisor, Sergeant Glenn Abrams, directed him to terminate all pending investigations into the promotion of prostitution
Around the same time Abrams gave plaintiff this directive, the files plaintiff had maintained regarding persons involved in the promotion of prostitution were removed from a filing cabinet under his control, and thereafter, plaintiff‘s access to those files was restricted. When plaintiff complained to Abrams about his loss of access to these files, Abrams allegedly told him: “You‘re never going to see the files again.”
On April 6, 2001, plaintiff sent a memorandum to Sergeant Abrams regarding his inability to gain access to those files, which stated in part:
Late this past year I was advised that Sgt. Coholan of the Chiefs of Police Office seized a filing cabinet from the Special Investigations Office. This filing cabinet contained numerical prostitute background files in two drawers. The other two drawers contained Escort Service/Massage Service as well as pimp intelligence files. (Many of these files contain sensitive material.)
I was advised that if I needed to see these files, the new procedure was that I was to report during the day to the Chiefs Office. I was to log in and out of a secure file room, which I complied with. I was then advised that the files were moved again and only told the lawyers had them.
. . . .
As part of my duties I routinely update files on Escort and Massage services working in Atlantic City. I noted at least seven new servicеs operating this month alone. I have no file space for these new files nor do I have any means of cross-referencing these files against current files without access to them. . . .
I am respectfully requesting this report be forwarded to Chief Arthur C. Snellbaker, for a response. I am requesting instructions as to if I am to continue gathering such files or am I to cease such activities.
According to plaintiff, after Abrams read this memorandum, he shook his head and said to plaintiff: “You‘re asking for it.”
In 2001, Maimone also complained about Atlantic City‘s failure to enforce
I am respectfully asking, that this Office request that the mercantile license of AC News and Video be revoked, due to the fact that this location is clearly in violation of 2C:34-7. This location is clearly a detriment to the neighborhood. There is a Covenant House for juveniles on the same block as well as an elementary school and Synagogue being nearby. As you are aware, it has been and continues to be
the practice of the Atlantic County Prosecutor‘s Office, not to prosecute this statute. It is their contention that civil remedies (IE: Removal of Mercantile license) would be sufficient and thus relieving the Prosecutors Office from utilizing their limited resources in prosecution.
If the city chooses not to enforce this statute in this matter, all future prosecutions will be jeopardized.
Within days after he sent this memorandum, Captain Glass said to plaintiff: “You‘re out of here, you‘re going to patrol.” Effective June 10, 2001, plaintiff was transferred from his detective position in the Special Investigations Unit to patrol officer. Plaintiff was told that the reason for his transfer was an April 17, 2001 newspaper story that disclosed he had attended the wedding of a daughter of a suspected organized crime figure.
II
Plaintiff subsequently brought this CEPA action against Atlantic City and Chief Snellbaker.2 After the completion of discovery, defendants moved for summary judgment. The trial court reviewed the motion under the analytical framework set forth in Dzwonar v. McDevitt, 177 N.J. 451, 462, 828 A.2d 893 (2003):
A plaintiff who brings a cause of action pursuant to
N.J.S.A. 34:19-3c must demonstrate that: (1) he or she reasonably believed that his or her employer‘s conduct was violating either a law, rule, or regulation promulgated pursuant to law, or a clear mandate of public policy; (2) he or she performed a “whistle-blowing” activity described inN.J.S.A. 34:19-3c ; (3) an adverse employment action was taken against him or her; and (4) a causal connection exists between the whistle-blowing activity and the adverse employment action.
The trial court concluded that plaintiff had presented sufficient evidence to support jury findings in his favor under the second, third and fourth tests set forth in Dzwonar. First, the court held that plaintiff‘s complaints to his superiors concerning their alleged policy decision not to enforce laws relating to promotion of prosti-
tution and restrictions on the location of sexually-oriented businesses was a “whistle-blowing” activity. Second, the court held that plaintiff had made a sufficient showing that the 3% reduction in salary and other alleged adverse consequences of his transfer to patrol duty constituted an adverse employment action. Third, the court concluded that a rational trier of fact could find that plaintiff was transferred to patrol because of his whistle-blowing activity.
However, the court concluded that plaintiff had not presented evidencе that could support a jury finding in his favor on the first Dzwonar test—that he “reasonably
The Appellate Division reversed in an unreported opinion. It concluded that the evidence, viewed in a light most favorable to plaintiff, could support a finding that he had an “objectively reasonable belief” that defendants had not simply reduced the police resources allocated to promotion of prostitution investigations, but had made a policy decision “to ignore violations of the prostitution laws within the City.” The court also rejected defendants’ argument that plaintiff‘s transfer from his detective position to patrol did not constitute an “adverse employment action.”
We granted defendants’ petition for certification, 185 N.J. 298, 884 A.2d 1267 (2005), and now affirm the Appellate Division.
III
Plaintiff‘s CEPA claim is based on
An employer shall not take any retaliatory action against an employee because the employee does any of the following:
. . . .
c. Objects to, or refuses to participate in any activity, policy or practice which the employee reasonably believes:
(1) is in violation of a law, or a rule or regulation promulgated pursuant to law . . . ;
(2) is fraudulent or criminal; or
(3) is incompatible with a clear mandate of public policy concerning the public health, safety or welfare or protection of the environment.
As previously noted, the Court held in Dzwonar, supra, 177 N.J. at 462, 828 A.2d 893, that a plaintiff who brings an action under this section must demonstrate that:
(1) he or she reasonably believed that his or her employer‘s conduct was violating either a law, rule, or regulation promulgated pursuant to law, or a clear mandate of public policy; (2) he or she performed a “whistle-blowing” activity described in
N.J.S.A. 34:19-3c ; (3) an adverse employment action was taken against him or her; and (4) a causal connection exists between the whistle-blowing activity and the adverse employment action.
These requirements must be liberally construed to effectuate CEPA‘s important social goals. See Green v. Jersey City Bd. of Educ., 177 N.J. 434, 448, 828 A.2d 883 (2003).
Defendants do not dispute that plaintiffs’ objections to Atlantic City‘s alleged policy decision to cease enforcement of the provisions of the Code that prohibit promotion of prostitution and restrict the location of sexually-oriented businesses constituted a “whistle-blowing” activity, thus satisfying the second requirement of a claim under
A
Plaintiff rests his claim solely on subsection (3) of
However, an employee who proceeds under c(3) must establish an additional element that is not required to prove a claim under c(1). Although an employee may pursue an action under c(1) based on objections to employer conduct that he or she reasonably believes violated any law, rule or regulation, an employee who proceeds under c(3) must make the additional showing that the “clear mandate of public policy” he or she reasonably believes the employer‘s policy to be incompatible with is one that “concern[s] the public health, safety or welfare or protection of the environment.” See Estate of Roach v. TRW, Inc., 164 N.J. 598, 609-11, 754 A.2d 544 (2000). This requirement is “unique” to c(3). Id. at 609, 754 A.2d 544.
The significance of this additional element of a claim under c(3) is illustrated by Maw v. Advanced Clinical Commc‘ns, Inc., 179 N.J. 439, 846 A.2d 604 (2004), in which an employeе brought a CEPA claim challenging her termination for refusing to execute an employment agreement containing what the employee believed to be an overly expansive do-not-compete clause. This Court concluded that case law which allows a no-compete provision only if it is reasonable does not constitute “a clear mandate of public policy” within the intent of c(3) because an employer‘s attempt to impose an unreasonable no-competition agreement impacts solely upon the individual employee and does not “implicate the public interest.” Maw, supra, 179 N.J. at 445, 846 A.2d 604 (quoting Maw v. Advanced Clinical Commc‘ns, Inc., 359 N.J. Super. 420, 446, 820 A.2d 105 (App.Div.2003) (Cuff, J.A.D., dissenting)); see also Cosgrove v. Cranford Bd. of Educ., 356 N.J. Super. 518, 525, 813 A.2d 591 (App.Div.2003) (holding that retaliatory action against employee for complaining about alleged unfair allocation of overtime could not provide foundation for CEPA claim under c(3) because the employee‘s complaint “concern[ed] a personal harm rather than the public harm required under [this subsection]“).
chinery.” II The New Jersey Penal Code, Final Report of the N.J. Criminal Law Revision Commission, 301-02, cmt. 1 on
To prevail on a CEPA claim under 3c(3), plaintiff is not required to show that defendants’ alleged policy decision to cease enforcement of the provisions of the Code prohibiting the promotion of prostitution and restricting the location of sexually-oriented businesses actually violated or was incompatible with a statute, rule or other clear mandate of public policy. See Dzwonar, supra, 177 N.J. at 463-64, 828 A.2d 893. Plaintiff only has to show that he had an “objectively reasonable belief” in the existence of such a violation or incompatibility. Id. at 464, 828 A.2d 893. Plaintiff may carry this burden by demonstrating that “there is a substantial nexus between the complained-of conduct“—the cessation of investigations of promotion of prostitution and failure to enforce laws relating to the location of sexually-oriented businesses—and “[the] law or public policy identified by . . . plaintiff“—in this case the provisions of the Code proscribing such criminal conduct. Ibid.
We conclude that plaintiff‘s proofs met this burden. Viewing the evidence in the light most favorable to plaintiff, as required on a motion for summary judgment, see Brill v. Guardian Life Ins. Co. of Am., 142 N.J. 520, 540, 666 A.2d 146 (1995), it could support a finding that he had an objectively reasonable belief that defendants made a policy decision to cease all investigation and enforcement of the Code provisions prohibiting the promotion of prostitution and restricting the location of sexually-oriented businesses. Plaintiff testified that Captain Glass told him at a staff meeting in January 2001 not to initiate any new prostitution investigations unless they directly impacted the citizens of Atlantic City, and shortly thereafter, Sergeant Abrams issued a directive to terminate all pending promotion of prostitution investigations. Around the same time Sergeant Abrams issued this directive, the files plaintiff had maintained regarding persons involved in the promotion of prostitution were removed from a filing cabinet under his control, and thereafter, his access to those files was severely restricted. Since plaintiff was the only detective still actively involved in promotion of prostitution investigations at that time, he could reasonably have believed that the intent of Sergeant Abrams’ directive and the removal
In addition, when plaintiff sent a memorandum requesting his superiors’ assistance in persuading the municipal solicitor to initiate proceedings to revoke the mercantile licenses of sexually-oriented businesses operating in violation of
Under plaintiff‘s version of his superiors’ statements and actions, the facts of this case are significantly different from Schechter v. N.J. Dep‘t of Law & Pub. Safety, 327 N.J. Super. 428, 743 A.2d 872 (App.Div.2000), which involved a CEPA claim by a Division of Gaming Enforcement supervisor who alleged that he was temporarily suspended and then demoted in retaliation for his objections to the Division‘s failure to act upon his recommendations for placement of names on a list of persons who are barred from casinos. Id. at 431, 743 A.2d 872. Schechter did not allege that the Division had terminated all investigations of potential casino exclusion cases; he only alleged that the Division had failed to follow his recommendations regarding the filing of two petitions for exclusion of specific persons alleged to be involved in criminal activity and that the Division had made a policy decision “to assign a lower degree of priority to exclusion cases than in prior years[.]” Id. at 434, 743 A.2d 872. The Appellate Division concluded that such a policy decision could not be found to “violate any ‘law, rule or regulation’ or ‘clear mandate of public policy,’ as required to maintain a cause of action under CEPA.” Ibid.
In contrast, plaintiff‘s claim is not simply that defendants decided to assign a “lower degree of priority” to investigations of violations of the Code provisions prohibiting promotion of prostitution and restricting the location of sexually-oriented businesses, but rather that they made a policy decision to terminate all enforcement of these criminal laws. Plaintiff was not told, and had no other reason to believe, that this alleged policy decision was due to budgetary constraints or an administrative determination that there was a need to assign additional officers to the investigation of more serious crimes. Therefore, a trier of fact could find that plaintiff had an objectively reasonable belief that defendants made a policy decision that was incompatible with a clear mandate of public policy concerning the public health, safety and welfare.
B
We next consider defendants’ argument that plaintiff failed to present sufficient evidence to support a jury finding that “an adverse employment action” was taken against him.
CEPA prohibits an employer from taking “retaliatory action” against an employee for protected conduct.
Plaintiff presented sufficient evidence that his transfer from a detective position to patrol duty resulted in both a reduction in his compensation and a loss of other benefits to satisfy this element of а cause of action under
C
The requirement that an employee who brings a CEPA claim under
The record shows that plaintiff made a series of verbal and written complaints to his superiors in the Atlantic City Police Department concerning their alleged failure to enforce the laws relating to promotion of prostitution and the location of sexually-oriented businesses during the period from January to May of 2001, following which he was transferred to patrol duty on June 10, 2001. According to plaintiff, he complаined to Sergeant Abrams about the removal of his files relating to promotion of prostitution investigations “more than once a week” for several months. On April 6, 2001, he sent a memorandum to Sergeant Abrams, quoted earlier in this opinion, again complaining about the removal of his prostitution intelligence files. After Abrams read this memorandum, he said to plaintiff: “You‘re
Furthermore, there is evidence that would support a finding that the reason defendants gave for plaintiff‘s transfer to patrol was pretextual. On April 17, 2001, during the period plaintiff was complaining to Sergeant Abrams about the City‘s alleged non-enforcement of the laws relating to the promotion of prostitution, Chief Snellbaker requested the Internal Affairs Bureau to conduct an investigation into plaintiff‘s attendance at the 1998 wedding of the daughter of a suspected organized crime figure. On May 25, 2001, the Internal Affairs Bureau issued a report that concluded plaintiff‘s superiors had authorized his attendance at the wedding for the purpose of “gathering intelligence information,” and that plaintiff had submitted an intelligence report after the wedding describing what he had observed and heard. Consequently, the Internal Affairs Bureau concluded plaintiff‘s attendance at the wedding was “justified, legal and proper.” Although the Internal Affairs Bureau exonerated plaintiff of any wrongdoing in connection with his attendance at the wedding, plaintiff was told that this was the reason for his transfer to patrol duty. The implausibility of this explanation for plaintiff‘s transfer is an additional circumstance that could support a finding that the real reason for this adverse employment action was plaintiff‘s complaints about defendants’ alleged failure to enforce the laws relating to promotion of prostitution and the location of sexually-oriented businesses.
We reject defendants’ argument that a finding of a causal relationship between plaintiff‘s whistle-blowing activity and his transfer to patrol duty cannot be made because there is no evidence that Chief Snellbaker, who made the decision, knew about this activity. Although plaintiff did not present direct evidence that Chief Snellbaker was aware of his whistle-blowing activity, a finding of the required causal connection may be based solely on circumstantial evidence that the person ultimately responsible for an adverse employment action was aware of an employee‘s whistle-blowing activity. See Roach, supra, 164 N.J. at 611-12, 754 A.2d 544. Plaintiff‘s April 6, 2001 memorandum to Sergeant Abrams complaining about his inability to gain access to the files he had compiled regarding promotion of prostitution investigations concluded by asking Abrams to forward the memorandum to Chief Snellbaker “for a response.” Eleven days later, on April 17, 2001, Chief Snellbaker directed the Internal Affairs Bureau to undertake an investigation into plaintiff‘s attendance at the wedding of a suspected organized crime figure‘s daughter three years earlier. We believe that a trier of fact could infer there was a causal connection between plaintiff‘s memorandum concerning the City‘s alleged termination of promotion of prostitution investigations, in response to which Sergeant Abrams said, “You‘re asking for it,” and Chief Snellbakеr‘s initiation of the Internal Affairs investigation. Furthermore, a trier of fact could infer from plaintiff‘s May 26, 2001 memorandum complaining about the City‘s failure to enforce the statutory restriction on the location of sexually-oriented
IV
The dissent charges that our opinion “appears to graft a new limitation on the discretionary governance prerogatives of an employer[.]” Infra at 240, 903 A.2d at 1066. However, there is nothing novel in the proposition that a statute—in this instance the Code of Criminal Justice—constitutes a “clear mandate of public policy” within the intent of CEPA. Mehlman, supra, 153 N.J. at 188, 707 A.2d 1000. Plaintiff does not seеk, as the dissent asserts, “to determine law enforcement policy for [the] entire [Atlantic City Police Department].” Infra at 241, 903 A.2d at 1066-67. He only seeks to avail himself of the judicial remedies provided by CEPA for the adverse employment action taken against him for objecting to the police department‘s alleged policy decision to cease enforcement of the Code provisions prohibiting promotion of prostitution and restricting the location of sexually-oriented businesses. Plaintiff‘s claim does not rest simply on his personal disagreement with this policy decision, but on an objectively reasonable belief that it “is incompatible with a clear mandate of public policy concerning the public health, safety or welfare[.]”
V
Accordingly, the judgment of the Appellate Division is affirmed.
Justice RIVERA-SOTO, dissenting.
As the majority notes, “[t]his appeal involves a claim under the Conscientious Employee Protection Act (CEPA),
I.
In this case, a police officer alleges that his reassignment was precipitated by his complaints that the Atlantic City Police Department was not enforcing the laws against prostitution and related offenses to a degree that was personally satisfactory to that police officer. Principally relying on Dzwonar v. McDevitt, 177 N.J. 451, 828 A.2d 893 (2003), and Schechter v. N.J. Dep‘t of Law & Pub. Safety, 327 N.J. Super. 428, 743 A.2d 872 (App.Div.2000), the trial court correctly framed the issue as follows: “did [plaintiff] reasonably believe that [defendants‘] actions or inactions constituted ‘misconduct’ and ‘illegal’ or ‘wrongful’ activities that were incompatible with a ‘clear mandate of public policy?‘” Highlighting the patent absurdity that results from allowing a rank-and-file police officer to determine law enforcement policy
Extrapolating from the discretion necessarily vested in a single police officer to that which must reside in the decision-makers responsible for law enforcement policy judgments, the trial court observed:
The same discretionary judgment should apply to the decisions by supervising police personnel to prioritize, as they deem appropriate, the allocation of time, attention, personnel, and other resources to the investigation and prosecution of offenses such as those at issue here. It would be an unsupportable extension of the purposes and application of the [CEPA] statute, аs interpreted by any reported decision, to afford to every police officer the ability, under the authority of a CEPA claim, to hold his or her department accountable to the officer for any discretionary determinations of resource allocation and law enforcement priorities solely because those determinations differed from the officer‘s views.
Moreover, [plaintiff‘s] position raises as many problems as it “solves.” If he is correct, then any police officer could seek to hold a police department accountable pursuant to CEPA not only for [the] investigations or prosecutions it does not undertake, as is [plaintiff‘s] concern here, but also for complaints about how aggressively and with what resources the battle is fought in those instances where the department does determine to act. CEPA should not, and I believe does not, have this reach.
The trial court thus concluded that
[t]he alleged “misallocation” of resources and priorities by [defendants] and their “failure to enforce” the law, even if indeed that is what it was, did not violate any “clear mandate of public policy” because there is no such mandate that precludes this type of discretionary judgment. . . . It would be manifestly inappropriate to substitute, for the City‘s judgment, [plaintiff‘s] view or that of a court or jury with regard to the appropriate priorities for applying the law enforcement resources available to the City.
Inasmuch as the City had the discretionary authority to make the determinations that it made in the absence of a clear mandate of public policy to the contrary, and in view of the fact that [defendants‘] actions were not “illegal” or “wrongful” in and of themselves, [plaintiff‘s] belief that [defendants‘] actions constituted “misconduct” and were incompatible with a clear mandate of public policy was not “objectively reasonable” as a matter of law. . . .
I cannot improve on the clear, logical and compelling thoughts expressed by the trial judge. Therefore, I would reverse the judgment of the Appellate Division and reinstate the trial court‘s dismissal of plaintiff‘s complaint. For that reason alone, I respectfully dissent.
II.
There is a further notion in the majority‘s reasoning that is particularly troublesome. According to the majority, “[t]o prevail on a CEPA claim under 3c(3), plaintiff is not required to show that defendants’ alleged policy decision to cease enforcement
[plaintiff] may carry this burden by demonstrating that there is a substantial nexus between the complained-of conduct—the cessatiоn of investigations of promotion of prostitution and failure to enforce laws relating to the location of sexually-oriented businesses—and [the] law or public policy identified by . . . plaintiff—in this case the provisions of the Code proscribing such criminal conduct.
[Ante, 188 N.J. at 233, 903 A.2d at 1062 (2006) (citation and internal quotation marks omitted).]
Under the majority‘s view, a municipality now must be governed by its lowest common denominator or risk the imposition of liability. Stripped to its essence, the majority rules that plaintiff‘s claim survives summary judgment not because of any wrongful municipal action, but because “[plaintiff] was not told, and had no other reason to believe, that this alleged policy decision [to limit the resources assigned to combat the promotion of prostitution or sexually-oriented businеsses] was due to budgetary constraints or an administrative determination that there was a need to assign additional officers to the investigation of more serious crimes.” Ante, 188 N.J. at 235, 903 A.2d at 1063 (2006). That turns the basis of the employer/employee relationship on its head, requiring that, in order to avoid a potential CEPA lawsuit, an employer must explain every discretionary decision to the satisfaction of every line employee. That was never CEPA‘s purpose or intendment.
I, therefore, respectfully dissent.
For affirmance—Chief Justice PORITZ and Justices LONG, LaVECCHIA, ZAZZALI, ALBIN, and SKILLMAN (t/a)—6.
For reversal—Justice RIVERA-SOTO—1.
Notes
[N]o person shall operate a sexually oriented business within 1,000 feet of any existing sexually oriented business, or any church, synagogue, temple or other place of public worship, or any elementary or secondary school or any school bus stop, or any municipal or county playground or place of public resort and recreation, or any hospital or any child care center, or within 1,000 feet of any area zoned for residential use.
Because plaintiff‘s specific complaint was that a particular sexually-oriented business was being allowed to operate within 1,000 feet of a school and synagogue, and for ease of reference, the prohibition contained in