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Lincoln v. Interior Regional Housing Authority9/14/2001
No. 5467
I. INTRODUCTION
Gidget Lincoln petitioned this court for review of the superior court's grant of summary judgment, dismissing her claims against her former employer, Interior Regional Housing Authority, for violation of the Alaska Whistleblower Act, breach of the implied covenant of good faith and fair dealing, and intentional infliction of emotional distress. Because questions of fact were present as to whether Lincoln was discharged for impermissible retaliatory reasons and whether the Authority's explanation for her discharge was pretextual, we reverse the award of summary judgment to the Authority.
II. FACTS AND PROCEEDINGS
A. Facts
The Interior Regional Housing Authority (Authority) is an association established under state and federal law to address housing shortages in interior Alaska. The United States Department of Housing and Urban Development (HUD) provides financial assistance to the Authority.
Gidget Lincoln was hired by the Authority in March 1992 as a collection officer. A portion of the Authority's funding comes through payments by individuals buying or renting homes constructed by the Authority. Lincoln's primary responsibility was to collect delinquent payments.
HUD was notified on January 20, 1995, of "'gross' mismanagement practices which have occurred at [the Authority] for some period and resulted in cost overruns of $2,700,000, unaccounted materials inventory, questionable procurement practices, and neglect of [the Authority's] fiduciary responsibility with its homebuyers' equity accounts estimated at $500,000." HUD scheduled an on-site review of the Authority three days later, on January 23, 1995; part of the haste stemmed from HUD's concern over reports that Authority staff had altered, destroyed, or tampered with records, and falsely certified statements.
Velma Carroll was the acting executive director of the Authority at the time of the investigation. According to Lincoln, Carroll informed her and other employees that they should not cooperate with the HUD investigation of the Authority, and that if they did, they would be subject to disciplinary action, including termination. Lincoln asserts that Authority employees Laura Henderson and Ray Kent made similar threats. Lincoln and three other employees wrote a letter to HUD prior to the investigation expressing their fear of retaliation should they divulge information regarding the Authority's practices. Lincoln cooperated with HUD investigators. Lincoln was laid off by the Authority on February 23, 1995. The letter notifying Lincoln of her layoff explained that the action was required for fiscal reasons. The letter promised that she would "be recalled as soon as fiscally possible." The Authority was in a financial crisis in early 1995. The other three employees who had been concerned about retaliation were also dismissed for various stated reasons, and some other employees were also dismissed.
The HUD investigation of the Authority resulted in the issuance of a corrective action order by HUD on March 3, 1995. HUD substantiated most of the allegations made against the Authority in January, and suspended all of the Authority's procurement, contracting, development, and architectural activities.
Lincoln informed the Authority that she wished to be considered for her position as collections officer as soon as it was reopened. She moved to Seattle later that spring, but informed the Authority that she still wanted her old job. According to the Authority's personnel policy, the Authority was required to recall Lincoln to her position or to a position for which she was qualified and for which
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