Judicial ruling favors city over Palenick

By Eric Maddy
The SCORE

A district court judge ruled Thursday that the city of Rio Rancho did take proper action in correcting any violations of the state’s Open Meetings Act it may have made in terminating Jim Palenick’s employment contract, taking away the major points of contention the former city manager was asserting in his lawsuit against his former employer.

In dismissing summary judgment motions made by both sides, 13th Judicial District Judge George Eichwald ruled the city followed proper corrective action by voting in November 2007 to fire Palenick after also doing so in December 2006.

The state attorney general ruled the city council and then-Mayor Kevin Jackson violated the Open Meetings Act prior to the December meeting by conducting a series of private meetings that were deemed a “rolling quorum.”  Palenick and his attorney Daniel Faber contended that if the private meetings leading up to the firing were illegal, the firing itself did not follow the law and that Palenick was still technically employed by the city.

At a pay rate of $10,000 per month plus benefits, Faber was seeking continuing damages approaching $200,000.

Eichwald said he could not determine as a matter of fact if the Open Meetings Act provided for retroactive correction in the 11-month time gap between Palenick’s firing on Dec. 13, 2006 and a second vote on Nov. 14, 2007. He ordered the two parties to attempt to negotiate a settlement but left open the possibility of a future trial date on the issue.

The attorneys representing the city, hired through the New Mexico Municipal League, said they would have to consult with their client before deciding whether to attempt negotiations or seek a further trial. But given that Palenick received a severance package approaching $100,000 when he left the city, it is unlikely it would agree to give Palenick additional financial compensation.

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