By Michael Howell
The Montana Supreme Court issued a ruling last week confirming a July 18, 2014 District Court order which found that Valerie Addis (former Ravalli County Treasurer Valerie Stamey’s maiden name) did not have a right to privacy concerning six documents held in her personnel file at the Missoula County Public School District related to an investigation and subsequent disciplinary action taken prior to termination of her employment in February of 2011. Stamey worked as Supervisor of Food Services for the School District under the name Valerie Addis prior to being appointed Ravalli County Treasurer in 2012.
Following Stamey’s appointment as Treasurer, the office fell into a state of dysfunction. Agencies and tax districts across the county began expressing extreme discontent. Claims of incompetence came to a head when the Bitterroot Star published the fact that a default judgment had been rendered against her in a South Carolina Court in which she was accused of cashing the same check twice, once by phone and once by depositing the actual check, and failing to make restitution of close to $18,000.
When Stamey refused to answer questions from the Board of County Commissioners about that court judgment against her, she was placed on administrative leave, her office was locked and an investigation was begun into her activities as Treasurer. Close to a million dollars in un-deposited checks and cash were found in various areas of her office when it was searched. The commissioners eventually found her in violation of her official duties and fined her $500 for each of 58 catalogued offenses for a total of $29,000. Court action against her to collect those fines and penalties was commenced on March 10, 2014, but the filing papers were never served on Stamey. She disappeared soon after picking up her last paycheck. Attempts to serve the papers by the Sheriff’s Department have all been unsuccessful. The Ravalli County Commissioners have placed on their agenda for Thursday, April 9, at 9 a.m., a discussion and decision on hiring a process server for collection of those fines and penalties.
It was during this period, when Stamey’s performance as Treasurer was being called into question, that the Bitterroot Star, along with KECI and the Missoula Independent, made requests for information from the Missoula Public School District about Stamey’s work history and termination. The Bitterroot Star asked specifically for any documents related to any disciplinary actions or any fraudulent or illegal activities.
In response the school district released Addis’s resignation letter and separation agreement in February 2014, but at the same time filed suit in District Court naming the three media outlets and Stamey as respondents and asking the Court for an in camera review of the remaining Addis documents and a determination as to whether they should be released. The school district took no position on the release of the documents and stated that it had filed the petition to avoid being sued by either the media outlets or Stamey (Addis).
The District Court conducted an in camera examination of the school district’s records and concluded that Addis had a right of privacy in some of them and that those documents should not be released. However, the District Court determined that six documents related to “misuse of public money, misuse of public facilities, and careless management practices” should be released. The Court found, contrary to Stamey’s claim, “There is no blanket exemption from the right to know for documents simply because they are contained in a personnel file.” Also, “Documents are not shielded from public disclosure simply because they are in a public official’s personnel file when that official occupies a position of trust.” The District Court determined that “the public has a compelling and substantial interest in investigatory documents concerning the misuse and misappropriation of public funds.”
Finally, the District Court concluded that Addis could have no reasonable expectation of privacy in documents relating to a violation of public trust, citing the similarities to a 2011 Billings Gazette case involving the clerk at the police department.
The Supreme Court concurred and concluded that the District Court had, “conscientiously and correctly determined and applied Montana law, and properly determined that the six disputed documents should be released. Addis has not presented a substantial reason in fact or law to demonstrate that the District Court’s decision was in error.”
The documentation released begins with a letter to Addis written October 12, 2010 from Scott Reed, Director of Operations and Maintenance for MCPS, concerning allegations of misuse of District funds. Reed states that an investigation is being instigated into the allegations and informs her that she has been suspended with pay pending the results of the investigations. He warns her that, if proven to be true, she could be subject to disciplinary action including a reprimand, suspension (with or without pay), and/or dismissal.
The next document is a “Confidential Memorandum” dated October 25, 2014 placed in her personnel file by the investigator Pat McHugh, Director of Business Services for MCPS, describing in detail the findings that led to the investigation and the results of the investigation into the relation between MCPS accounts and the concession business being run by her husband and a catering event that she conducted. McHugh recommends disciplinary action.
In a letter to Addis dated October 28, McHugh states, “Despite the importance of maintaining a clear separation between the business of the concession stand and your duties to the District, the District was billed for products, and in some cases paid for products, used in the operation of the concession stand and the outside catering event. These actions are the result of careless management practices, including the failure to carefully review and approve invoices; and the failure to appropriately separate personal ventures from professional obligations, including poor communication and attention to detail in the operation of the food service program.”
Reed notes that the infractions “were the result of careless management practices and not done with the intent to defraud” but they did call for disciplinary action.
A letter of reprimand was issued by Reed on November 3, 2010. It stated in part, “While Mr. McHugh found no evidence that these actions were deliberate with the intent to defraud the District and that they were more likely the result of careless management practices, this is a matter of serious concern. As managers in a public entity we have a very high degree of responsibility to keep any transactions separate between MCPS and any private enterprise you are associated with. In fact, I emphasized this when the District contracted with Bear Creek knowing your relationship and involvement with this company.
“As the Supervisor of Food Service you are responsible for the ordering, coding and approving of all related expenditures. You also have a duty to keep any activity with a private business separate from MCPS business. You failed in the above areas and therefore I am issuing this Letter of Reprimand.”
The next document was a confidential memorandum placed in her personnel file by MCPS Superintendent Alex Apostle dated February 24, 2011. In it he states that Addis came to him on February 17 and “admitted to me that she used the central kitchen facility for a personal catering event; that she did not have permission from anyone to use the central kitchen for a catering event; that she was paid for the catering event; and that she paid District employees to work for her in the central kitchen to help prepare for the catering event.” He said that she apologized for letting him down.
The final document released was a letter to Addis from McHugh accepting her resignation letter which she tendered on February 18, 2011.