PER CURIAM.
Plaintiff Joseph J. Potena appeals from a January 23, 2009 order dismissing his CEPA
We summarize the pertinent evidence as follows. Plaintiff has been employed as the BPU's Chief Fiscal Officer since 1994. The BPU regulates the rates charged and services provided by certain public utilities and addresses complaints of utilities customers. The BPU is "in, but not of" the Department of the Treasury (Treasury). Plaintiff worked for the BPU in other capacities when it was in the Department of Environmental Protection (DEP) and was involved in restructuring the BPU's financial office in 1994 when it was transferred to Treasury.
As Chief Fiscal Officer, plaintiff is in charge of the BPU's Office of Budget and Finance and is responsible for pro-ducing the agency's annual budget and assuring that expenditures comply with all legal requirements. To fulfill his duties, plaintiff must interact with the BPU's division directors and upper management.
In 2002, plaintiff began reporting to Miller, who had been named the BPU's Chief of Staff by Fox, the BPU's newly appointed President, rather than reporting directly to the BPU President. From the start, plaintiff had an uncomfortable working relation-ship with Fox and Miller. Plaintiff did not like reporting to the Chief of Staff instead of the President. He also had a negative impression of Miller based upon a "reputation that [he] was aware of" and a negative impression of Fox based upon his first conversations with her. In addition, plaintiff did not like having Fox and Miller require him to post a vacancy in 2003, rather than allow him to hire the person he wanted without posting. A contentious struggle over this issue continued for about one year until plaintiff prevailed in early 2004. Miller also had negative feelings about plaintiff because he believed plaintiff was not "a team player."
In March 2003, the BPU created the Office of Clean Energy (OCE), which was responsible for implementing the State's Clean Energy Program and promoting energy efficiency and the develop-ment of renewable energy resources. The OCE was headed by defendant Winka, who also reported to Miller. Winka did not supervise plaintiff or control plaintiff's pay or benefits.
A Clean Energy Council (the Council) was established to advise the OCE and the BPU Commissioners on organizing and administering the Clean Energy Program, including the societal benefit funds collected by utilities from their customers, which funded the program. The Council recommended that the Clean Energy Program be administered by the OCE and recommended that the societal benefit funds be held by a fiscal agent outside Treasury. This recommendation addressed a concern that, if the funds were placed in a state account, Treasury would have the ability to "lapse" them into the general fund and use them to balance the state budget, rather than fund the Clean Energy Program.
In September 2003, the BPU adopted orders accepting the Council's recommendations. The BPU also approved a contract with Wachovia Bank to serve as the fiscal agent. The three signatories on the Wachovia account were Fox, Miller, and Winka.
In the fall of 2003, Miller and Winka on behalf of the OCE negotiated with Rutgers University's Center for Energy, Eco-nomic, and Environmental Policy for its evaluation of the BPU's energy efficiency and renewable energy programs, and a letter of intent was issued. However, the final contract was not executed until the following summer.
Before that happened, plaintiff found a copy of the draft BPU-Rutgers contract on his desk. His review of the document caused him to be concerned about its funding source, the payment of eighty to ninety percent of the funds to subcontractors (pos-sibly violating rules on procurement), and the identity of the signatory for Rutgers, Scott Weiner, who was a former BPU Presi-dent. He also believed that maintaining the Wachovia account outside the State's accounting system violated various rules and regulations promulgated by Treasury.
Plaintiff first spoke to Winka and Miller about the con-tract in January 2004 and spoke to them again that March. Both Winka and Miller responded to his inquiries by stating that he should not worry about it; it was none of his business; no state or taxpayer funds were involved and, therefore, there was no need to comply with Treasury rules and regulations; and there was approval for the transaction from the Governor's office and the BPU. Plaintiff was not persuaded and continued to raise his concerns with others. That spring, he communicated with the BPU ethics officer and in-house attorneys, who communicated the issues to Fox and several Deputy Attorneys General.
In late February or early March 2004, plaintiff also spoke directly with Fox about his concerns. In-house discussions at BPU continued through at least June 2004. Plaintiff was dissat-isfied with the responses to his inquiries so he raised the issues with people at Treasury, including David Ridolfino, the Deputy Director of the Division of Administration; Charles Chianese, the Associate Deputy State Treasurer, Director of Administration, and Chief Financial Officer; and Kenneth Kutch, an analyst in the Office of Management and Budget (OMB).
People at Treasury began to inquire about plaintiff's com-plaint, communicating with both Fox and Miller. In August 2004, Treasury began an audit of the OCE. The parties stipulated that Treasury found as follows:
From January 2004 until the trial of this matter, plaintiff refused to work on matters arising from the Clean Energy Program or any contracts with Rutgers. At various times, plaintiff also instructed his staff not to work on such matters, although Treasury later advised him that he could not do so. Plaintiff also questioned whether a number of defendants' additional busi-ness transactions complied with Treasury rules and regulations. This led to a series of disagreements between plaintiff, Miller, and Winka. In several instances, individuals from Treasury were called in to resolve those disputes.
There were two notable disputes with Miller during this time period. First, in July 2004, plaintiff refused to approve two contracts sent to him by Miller. Winka came to speak with plaintiff about the contracts, and they argued. Thereafter, plaintiff received a telephone call from Personnel regarding Miller's inquiry about bringing insubordination charges against him.
Second, in early August 2004, Miller visited plaintiff's office and thanked him for bringing in the auditors from Treas-ury. Plaintiff told Miller to stop patronizing him and said that management of the BPU was "piss poor." Miller threatened him with insubordination charges if he did not lower his voice, although no such charges were ever filed.
In September 2004, Treasury advised Fox that, effective November 1, 2004, it would begin serving as the fiscal and pro-curement agent for the BPU's Clean Energy Program. In the fall of 2004, however, Treasury decided to service the entire BPU because it was not feasible to provide services only to the Clean Energy Program. This decision was reportedly at the request of Fox. This request later led to an Inter-Departmental Agreement (IDA).
At meetings held in November and December 2004, Treasury briefed the BPU, including plaintiff and his department, about the IDA. Plaintiff did not object to Treasury's plan, although he and his staff expressed some concern about what their roles would be.
In his complaint, plaintiff alleged CEPA violations and intentional infliction of emotional distress.
Plaintiff testified that the reason for the reduction in his responsibilities was that, under the IDA, Treasury had final authority to electronically authorize expenditures. Plaintiff no longer had that authority. Therefore, at Treasury's direc-tion, plaintiff's "security profile" was reduced, which reduced his involvement in fiscal matters.
Plaintiff admitted that he had the same job title and job description, the same responsibilities for managing the fiscal office, and the same reporting relationship to the Chief of Staff. Also, he remained the individual at the BPU with the most authority over fiscal and budget matters; Treasury would not approve any expenditure without his signature.
Kutch explained that after the IDA, plaintiff maintained the same responsibilities and level of authority that he had previously; the only difference was that Treasury "push[ed] the button" to electronically generate a payment. Similarly, Ridolfino explained that it was still necessary for plaintiff to fulfill the role of Chief Fiscal Officer for the BPU:
Plaintiff also claimed that defendants retaliated against him by hiring Beth Sztuk in 2005. He alleged that her hiring constituted a "firing" and "replacement" of him. That year, Fox was faced with two vacancies on her five-person senior staff: the Executive Director had resigned to take another job and the Chief Economist had retired. The BPU had major on-going projects at that time, including a petition by Exelon to merge with PSE&G and the preparation of a draft energy master plan. In need of assistance, Fox reached out to Sztuk, whom she knew from the Economic Development Authority and the Clean Energy Council. Sztuk began work with the BPU on September 12, 2005, under the title of Chief Financial Officer. She worked for the BPU until June 2006, when she left to work for the School Construction Corporation. Plaintiff was on medical leave for about six months of Sztuk's nine-month tenure.
Ridolfino testified that Treasury considered terminating the IDA in September 2005 after the BPU hired Sztuk. However, Miller responded that the timing was not appropriate because plaintiff had filed this lawsuit and because Sztuk's duties had nothing to do with plaintiff's areas of responsibility.
Fox testified that the IDA has been kept in place because it was working well. She further stated that Treasury's involvement with the BPU was still necessary because plaintiff refused to work on the Clean Energy Program, and it was impossible for Treasury to limit its involvement to only that program.
Sztuk's job duties at the BPU included oversight of the Division of Administration and Audits, the Offices of Communica-tions and the Economist, and the Office of the Business Ombuds-man. She oversaw the major financial issues with which the BPU dealt, such as, the deregulation of certain industries, the merger of PSE&G and Exelon, and the financing of new technologies. Sztuk never met plaintiff, never supervised him, and never worked with him. Plaintiff admitted that his job duties did not change after Sztuk was hired, and he had no knowledge that Sztuk ever performed any of his duties. Fox specifically had the description of Sztuk's position altered so that Sztuk had no responsibility for the fiscal office; plaintiff continued to report to Miller.
The crux of plaintiff's complaint about Sztuk was her starting title. He became upset when he learned that she was hired as Chief Financial Officer. He believed that he had been replaced, because although he held the title of Chief Fiscal Officer, not Chief Financial Officer, he had in the past been referred to as the BPU's Chief Financial Officer. When Fox learned of this concern, she had Sztuk's title changed to Chief Operating Officer about six to seven weeks after she was hired.
Plaintiff also claimed defendants retaliated against him because his fellow employees ostracized him. After he blew the whistle, he no longer heard from colleagues who used to routinely call or stop by his office for advice or assistance. He felt like "a prisoner[,] a man on an island by [him]self." Plaintiff's secretary testified that he had fewer phone calls, meetings, and visitors than previously; however, she could not identify by name any person who no longer spoke to plaintiff. Another employee in the BPU's Trenton office, who worked near plaintiff but under Winka's supervision, testified that the atmosphere in the office was uncomfortable; people kept their distance from plaintiff because they knew that he did not get along with Winka; and they did not want anybody to believe that they were on plaintiff's side. Plaintiff presented no evidence that any of the defendants instructed people not to speak with him. Plaintiff's supervisors, Miller and Noreen Giblin, understood that plaintiff was communicating with everyone necessary to do his job. Giblin stated that she spoke to plaintiff regularly, and he attended many budget meetings with her. Similarly, Ted Kukowski, an employee at the OMB, testified that he worked closely with plaintiff on BPU's budget.
Defendants also presented evidence that working with plain-tiff became difficult after he blew the whistle, causing people to voluntarily steer clear of him. Both Kutch and Chicqueta Britton-Nutt, the BPU's Director of Administration, testified that they avoided plaintiff because of things he said about the IDA, Fox, Miller, and Winka.
Finally, plaintiff testified that, as a result of defendants' retaliatory acts, he suffered both physically and emotionally. He felt as though his career was over. He admitted, however, that he was not discharged, suspended, or disciplined in any way. He retained the same title and had not suffered any diminution in salary, benefits, or perquisites associated with his job. Further, he continued to receive regular salary increases.
Pretrial, defendants moved to strike the expert report of plaintiff's cardiologist, Dr. Michael Lux, and to preclude tes-timony relating to plaintiff's heart attack.
At the close of plaintiff's evidence at trial, defendants moved for judgment under
On September 29, 2008, after two days of deliberations, the jury reported that it was unable to reach a complete verdict. The jury found that plaintiff reasonably believed that an activ-ity, policy, or practice of the BPU violated the law and was fraudulent or criminal, and that he disclosed that activity, policy, or practice to a supervisor or public body, objected to it, and refused to participate in it. However, the jury could not agree as to whether plaintiff suffered any adverse employment action in retaliation for his whistle blowing.
Post-verdict, defendants reasserted their motion for judgment under
The judge addressed each of plaintiff's three claims of retaliation separately. As to plaintiff's claims of retaliation based on the implementation of the IDA, its terms, and its continuation, the judge found that its implementation was "consistent with Treasury policy and ha[d] historical precedent." He further found that "[t]he IDA was designed by Treasury and implemented by Treasury. No evidence adduced support[ed], directly or inferentially, plaintiff's allegation that [the] BPU was responsible for input in the structuring of the IDA in order to adversely affect him." He pointed out that the IDA caused across-the-board changes, not ones targeted at plaintiff, and those changes were de minimis. As to its continuation, he concluded:
With respect to plaintiff's claims of retaliation based on the hiring of Sztuk, the judge found that no reasonable mind could conclude that her hiring was an adverse employment action. He reasoned that her background was entirely different from plaintiff's, she was hired to serve as a member of a management team, and her duties did not conflict with those of plaintiff. Further, her employment had no effect on plaintiff's authority and responsibilities. She was hired while plaintiff was on leave, and her title was changed when plaintiff expressed concern about it.
As to the alleged personal isolation and ostracism, the judge found that plaintiff discharged his job duties and responsibilities, interacting with others at the BPU, Treasury, and the OMB. He continued to be consulted on budgetary and financial matters, supervised his staff, and had sign-off authority. The judge found no evidence to suggest that changes in the way plaintiff was treated by others were the product of retaliation rather than normal workplace reticence in dealing with an employee who has brought suit against his employer. "Lawsuits create difficulties for all." He concluded by observing that "the critical question[] is whether [the] BPU encouraged or brought about the changes perceived and complained of by plaintiff" and answered the question "no" because "[t]he record speaks for itself." The order dismissing plaintiff's complaint was filed on January 23, 2009, and this appeal followed.
Plaintiff contends on appeal that the judge erred in grant-ing the
The standard for granting a judgment at trial pursuant to
Our review of an order dismissing a complaint pursuant to
With respect to plaintiff's claims regarding the judge's discretionary rulings, such rulings will not be reversed on appeal absent a showing of a mistaken exercise of discretion.
Plaintiff contends that a jury issue was presented as to whether defendants took any adverse employment action against him in retaliation for his whistle blowing. He urges that the judge erred in granting defendants' motion for a directed verdict under
Preliminarily, plaintiff contends that the judge erred in considering all of the evidence introduced at trial, including the evidence presented by defendants, when ruling on their
CEPA "is intended to encourage employees to speak up about [employer actions] that violate the law or public policy and to provide protection for those who do so."
CEPA prohibits "[a]n employer [from taking] any retaliatory action against an employee because the employee" engages in protected activity.
CEPA defines "[r]etaliatory action" as "the discharge, suspension or demotion of an employee, or other adverse employment action taken against an employee in the terms and conditions of employment."
Retaliation "need not be a single discrete action."
Because CEPA is a civil rights statute, like the New Jersey Law Against Discrimination (LAD),
Some employer actions do not constitute retaliation under CEPA, even though the employee is negatively affected by them.
Plaintiff asserts that he presented the following evidence of retaliation, all of which the judge ignored: (1) the implementation of the IDA; (2) Fox's own admission that she asked Treasury to take over all of the BPU's financial and fiscal duties, which occurred after Fox and plaintiff could not resolve their discussions, and Ridolfino's testimony that Treasury was doing so; (3) the loss of his job duties and the reduction in his financial authority to a level equal to his subordinates; (4) Ridolfino's testimony that he asked Miller and Sztuk to take back the fiscal duties after Sztuk was hired, which was rejected because his lawsuit was pending; (5) the continuation of the IDA for almost five years although defendants could have terminated it; (6) Sztuk being hired as the new Chief Financial Officer; and (7) the ostracism and isolation he suffered as a result of his whistle blowing. Continuing, plaintiff also claims retaliation in the form of: (8) confrontations between plaintiff and defendants after the Treasury audit began; (9) Miller's threats of insubordination on two occasions and his attempt to file insubordination charges; (10) Fox's attempt to intimidate and threaten him into not suing; (11) the effort of Miller and Winka to force plaintiff to authorize the Rutgers contracts even though they violated Treasury rules and regulations; (12) Miller's attempt to intimidate him three days after the audit began; and (13) the "campaign" of Miller and Winka to threaten him with loss of vacation time, their dissatisfaction with his work despite his prior and current good performance, and their complaints to Treasury about him.
First, as to plaintiff's retaliation claims (1) through (7), we affirm substantially for the reasons expressed by the trial judge in his written opinion dated January 23, 2009. We add only that the IDA was not retaliatory because it was applied uniformly to all, as other employees in the BPU fiscal office were affected by the IDA in a manner similar to plaintiff.
Finally, we find no merit in plaintiff's retaliation claims (8) through (13), in part because some of these arguments were not raised below, such as plaintiff's contention that defendants retaliated against him based upon the incidents in which Miller threatened him with charges of insubordination and complained about him to Treasury.
After carefully reviewing the record in the light of the written and oral arguments advanced by the parties, we conclude that the remaining issues presented by plaintiff are without sufficient merit to warrant extensive discussion in this opinion.
We note that the Treasury report addressed many issues unrelated to plaintiff's CEPA claims and the judge acted well within the discretion accorded him in controlling the submission of evidence at trial pursuant to
With respect to the jury charge and the exclusion of medical evidence, these issues are moot because we have affirmed the dismissal of plaintiff's complaint under Rule 4:40-2(a).
Affirmed.