Lower’s ‘Whistle Blower Suit’ Involves No-Bid Contract

VILLAS — Inside Lower Township Hall, employees refer to it as the “whistle blower lawsuit.”
It is rumored all who are named, who came to the defense of the plaintiff, are on a hit list to be fired or demoted.
Township employee Margaret Vitelli and her husband are suing Lower Township and Township Manager Joseph Jackson because she sustained “adverse employment actions and sustained damages as well as personal injury” as a result of informing Jackson he could not award a $600,000 contract to township engineers Remington, Vernick and Walberg without putting the contract out to bid for the Bennett’s Crossing Recreation Area.
The Herald obtained the complaint and the township’s answer to the lawsuit.
According to court papers, Vitelli was first hired as an entry clerk/typist for Lower Township police on Dec. 13, 1999. Among her duties was to handle all purchasing for the department.
Vitelli completed public purchasing studies from Rutgers University and was asked by then Township Manager Kathy McPherson and Chief Financial Officer Lauren Read to become township certified purchasing agent.
According to the complaint, on or about Feb. 23, 2007, Jackson told Read that he was not going to bid out a $600,000 contract portion of a $4 million Bennett’s Crossing field project “that had been plagued by overages and general contractors going bankrupt.”
Jackson told Read that the township was going to have Remington, Vernick and Walberg manage the contract.
“Read explained to Jackson that the township had to publicly bid a contract over $29,000 and she would discuss it with the plaintiff, the township purchasing agent (Vitelli.)”
Vitelli and Read explained to Jackson that Remington, Vernick and Walberg could not be awarded the $600,000 Bennett’s Crossing contract without going out to public bid.
According to the complaint, on or about March 6, 2007, when Jackson was told that the no-bid contract was illegal, he replied Remington, Vernick was going into a “design and build” contract.
Vitelli and Read had contacted, on two occasions, Joseph Valente, of the state Division of Local Government Services where he serves as chief public contract law oficer. He explained what Jackson was suggesting was illegal and that Remington Vernick had been awarded a professional services contract with the township for engineering services only.
Valente said only township council could award contracts, not an engineer.
According to the complaint, later that day, Vitelli received a voice message from Mayor Walter Craig requesting a list of stipends and the last month’s telephone bills only for Township Hall.
On March 27, Vitelli contacted Valente to find the outcome of the prior day’s events. He said he instructed Township Solicitor Paul Baldini that design and build contracts were illegal in New Jersey.
According to the complaint, Craig requested the confidential personnel files of Read and Crippen. McPherson, who also serves as head of personnel, informed Jackson, who took custody of the files, those files were confidential and could not leave the building.
Vitelli requested a copy of her own personnel fie, but to the date of the lawsuit filing, that file has not been made available.
According to the complaint, Craig indicated at a Recreation Advisory Board meeting that “someone” cost the township more money and delayed the project’s completion because the project had to be publicly bid.
“Additionally, Jackson told Read that Remington, Vernick estimated that the cost of the project would be $100,000 more because it had to be publicly bid.
“These statements evidence the disdain and negative atmosphere in which compliance with the law was held at City Hall and towards plaintiff,” said the complaint.
It states as a direct result of Vitelli stopping and reporting an illegal contractual scheme, she was intimidated and subjected to public humiliation and emotional distress due to the retrieval of her personnel file “by people who normally have no such business in such a file and later pretextually cited with a fire code violation.”
A fire code violation against Vitelli was dismissed but a note was placed in Vitell’s personnel file, according to the complaint. Vitelli claims she was not given raises while others in her department received raises or promotions.
She claims the township began a “systematic retaliatory campaign” against her beginning in March 2007 by concocting a fire code violation and later withdrawal of allotted stipends and benefits.
Vitelli claims Jackson was in a position to create adverse employment decisions and actions over her. She is seeking compensatory and punitive damages and legal costs.
In its answer,
Lower Township denies the mayor, council or Jackson was attempting to do anything illegal. The answer denies Jackson told Read they were not going to bid $600,000 of the Bennett’s Crossing contract.
It confirms Craig requested confidential personnel files on March 9. The answer also denies Craig had a negative attitude toward Vitelli because of the no-bid contract confrontation.
The answer denies she was subjected to humiliation and emotional stress due to her personnel file being inspected by the mayor. It also denies a fire code violation was concocted against Vitelli and states the violation has not been dismissed.
The township denies Vitelli suffered a lack of raises and claims no adverse employment action has been taken against her by Jackson.
The answer also denies Vitelli sustained damages or personal injury. In addition, the township denies that intentionally false statements, evaluations or presentations were made to township council for her refusal to “acquiesce to an illegal scheme.”
It also denies Vitelli failed to receive raises or was demoted.
Joseph Vitelli’s loss of companionship and services of his wife are also denied in the answer.
Lower Township is asking for a jury trial.