Free Statement - District Court of Arizona - Arizona

1 Jay A. Zweig (011153) Melissa R. Berren (020993) 2 GALLAGHER & KENNEDY, P.A. 2575 E. Camelback Road, Suite 1100 Phoenix, Arizona 85016-9225 3 (602) 530-8407 4 Attorneys for Defendants 5 Richard J. Harris Richard J. Harris Law Offices, P.C. 6 4445 E. Holmes Avenue, Suite 106 Mesa, Arizona 85206-3398 Attorney for Plaintiff 7 8
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UNITED STATES DISTRICT COURT DISTRICT OF ARIZONA Matthew Shaffer, Plaintiff, vs. No. CIV-03-2344-PHX-FJM JOINT STIPULATED STATEMENT OF THE CASE TO BE READ TO THE JURY

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State of Arizona Citizens Clean Election 14 Commission; Colleen Connor and Chad Jacobs, husband and wife; and Jessica 15 Funkhouser and Lindy Funkhouser, husband and wife; John Does I-X; Jane 16 Does I-X, 17 18 19 20 21 22
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Defendants. Pursuant to the Scheduling Order entered on April 23, 2004, the following is the Joint Stipulated Statement of the Case to be Read to the Jury, to be considered at the Final Pretrial Conference set for September 2, 2005, at 3:00 p.m. before Judge Martone:

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The plaintiff in this case is named Matthew Shaffer. The two defendants are the

2 State of Arizona Citizens Clean Election Commission, which we will call the "CCEC" or 3 the "Commission", and Colleen Connor, the Executive Director of the CCEC at the time 4 of all of the acts complained of by Mr. Shaffer. 5 The CCEC is the public body responsible for implementing all aspects of the

6 Clean Elections Act (which we will often call the "Act"), codified at A.R.S. §§ 16-901, 7 et seq.; A.R.S. §§ 16-904, et seq. The Clean Elections Act is a campaign finance reform 8 measure that was initiated by Arizona citizens and passed by voters in 1998. It was 9 designed to create a campaign financing system that provides non-political, non-partisan 10 public funding to qualified candidates who agree to abide by CCEC guidelines. Both 11 legislative and statewide office candidates are eligible to receive public funding under the 12 Act. 13 Although public funding is available only to what are called "participating

14 candidates" who choose to certify and qualify for such funding, the Act also impacts 15 "nonparticipating candidates," who fund their campaigns with private contributions. 16 Among other things, the Act requires nonparticipating candidates to adhere to certain 17 reporting requirements. If those reporting requirements are not met by a nonparticipating 18 candidate, the CCEC is empowered to impose civil penalties. 19 Implementation of all aspects of the Act includes monitoring and enforcing

20 candidates' compliance with the Act. The CCEC is comprised of a five member board 21 and its staff, including the Executive Director and all other employees of the CCEC. 22
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Candidates must file campaign finance reports to comply with the Act. This

2 case involves the CCEC's handling of certain finance reports from the Salmon For 3 Governor campaign in 2002 (which we will often call "Salmon" or "the Salmon 4 Campaign"). Salmon was a "nonparticipating candidate" who, therefore, had to comply 5 with certain reporting requirements under the Clean Elections Act. The Salmon 6 Campaign filed a finance report on August 12, 2002 and then filed an amended report on 7 August 16, 2002. Each party claims the other did something improper in the handling of 8 the Salmon Campaign's amended report. Shaffer's employment with the CCEC was 9 terminated on October 1, 2002. 10 11 12 13 14 15 16 17 18 19 20 21 22
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This is a case in which Mr. Shaffer is seeking damages under several theories arising from the circumstances surrounding the termination of his employment with the defendant, the CCEC. Mr. Shaffer contends that he was wrongfully fired from the CCEC for reporting what he claims was illegal conduct in the CCEC's handling the Salmon matter and for speaking publicly about the matter. Shaffer also contends that in connection with that firing, Colleen Connor, the CCEC Executive Director, published certain false and defamatory accusations against him. He also contends that he was not given notice of the accusations against him or a meaningful opportunity to clear his name. The defendants, Colleen Connor and the CCEC, contend that Mr. Shaffer's employment was properly terminated because the CCEC and Ms. Connor lost trust in Mr. Shaffer, and lost confidence in his ability and willingness to apply the Clean Elections Act, as his job required him to do. Defendants also contend that Ms. Connor did not

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defame Mr. Shaffer, and that, despite that, she gave him notice and multiple adequate opportunities to defend himself or clear his name, APPROVED AS TO FORM AND CONTENT this 26th day of August, 2005:

s/Richard J. Harris Attorney for Plaintiff

s/Jay A. Zweig Attorneys for Defendants

568-0140/1294030

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