Re: Perrone B-08 Complaint Investigation Report Summary

The Board of Directors of Ocean Pines Association, Inc. (“Ocean Pines”) releases this summary report as part of its commitment to transparency surrounding the recent complaint logged by Colby Phillips against the President of Ocean Pines, Larry Perrone.  Ms. Phillips tendered her resignation on February 16, 2021.  Following Ms. Phillips’s resignation, community members raised a number of concerns about this matter.  The Board hopes this report answers many of the questions raised about Ms. Phillips’s complaint and the Board’s response to it.  

Background

On Thursday, January 4, 2021, Ms. Phillips submitted an internal email complaint against Larry Perrone.  Ms. Phillips’s email asserted Mr. Perrone yelled at her during a meeting with the General Manager and another Ocean Pines employee on January 4.  She further alleged that Mr. Perrone speaks to her in a condescending and demeaning manner.  Ms. Phillips relayed in her email that Mr. Perrone’s actions caused her a lot of anxiety.

Ms. Phillips and the Human Resources Manager met on January 5 to discuss the complaint.  At the conclusion of that meeting, the two agreed to take the complaint to the General Manager consistent with the complaint procedures set forth in the Ocean Pines employee handbook.   Ms. Phillips met with the General Manager and Human Resources Manager on January 14 to discuss the concerns Ms. Phillips had about Mr. Perrone.  After the meeting, Ms. Phillips provided a detailed written complaint summarizing what she relayed during the meeting.

On January 20, 2021, the General Manager asked Michael J. Neary of Lerch, Early & Brewer, Chtd. to investigate the allegations and make legal recommendations on the appropriate next steps.  Mr. Neary reached out to Ms. Phillips that evening to schedule a time to discuss her complaint.  Mr. Neary spoke with Ms. Phillips in detail about her complaint on January 21.  During this discussion, Ms. Phillips provided Mr. Neary a copy of the Board’s B-08 Resolution and made it clear that she sought action from the Board similar to the action taken in response to the General Manager’s recent complaint against Director Janasek.  Given Ms. Phillips’s request for full Board consideration, Mr. Neary alerted Mr. Perrone of the complaint and notified him that because Mr. Perrone was the subject of the complaint, Mr. Neary needed to work with the Vice President to bring the matter to the attention of the full Board of Directors.  Mr. Perrone understood and stated he would cooperate fully in the investigation.  

Mr. Neary spoke with Ms. Horn late in the evening of Friday, January 22 to brief her on the situation and discuss a process for bringing the matter to the full board for consideration.  Ms. Horn subsequently filed a B-08 complaint against Mr. Perrone on January 26.  Ms. Horn’s complaint relied on Ms. Phillips’s allegations.  The day before Ms. Horn circulated her complaint to the full board, Ms. Phillips sent Mr. Neary an email seeking a status update on the investigation and expressing concern that the Board would be considering other matters in closed session on Tuesday January 26.  Mr. Neary informed Ms. Phillips that he was working with a board member other than Mr. Perrone to bring her complaint to the full board.  Ms. Phillips responded stating that she hoped Mr. Neary was not working with Ms. Horn.  That evening Ms. Phillips’s husband sent an email to the Board raising Ms. Phillips’s complaint.

Summary of the Investigation

In addition to the January 21 meeting with Ms. Phillips, Mr. Neary reviewed the documents Ms. Phillips provided him and interviewed each individual Ms. Phillips identified as having knowledge of the events leading to her allegations. Mr. Neary also interviewed others with knowledge of the interactions between Mr. Perrone and Ms. Phillips.  Mr. Neary spoke again with Ms. Phillips on January 28, 2021 to conclude the investigation.  Mr. Neary submitted a report to the Board of Directors on the evening of January 28, 2021 with his factual findings and legal recommendations.  The report contained a copy of Ms. Phillips’s detailed written complaint.  The Board met in closed session on January 29, 2021 to consider the B-08 complaint filed by Ms. Horn.  The Board found no B-08 violation.  The Board announced the finding at a brief public meeting on February 4, 2021 as required by Resolution B-08.

Summary of the Complaint

Ms. Phillips made the following allegations against Mr. Perrone:

1. On June 30, 2020, Mr. Perrone met with Ms. Phillips, another Ocean Pines employee, and a resident to discuss the resident’s complaints.  When the resident left, Ms. Phillips alleged Mr. Perrone chastised her for allowing the resident complaint to escalate.  Ms. Phillips recounted that Mr. Perrone stated Ms. Phillips should be able to handle the matter.  Ms. Phillips recalled Mr. Perrone spoke to her in a demeaning, condescending, and aggressive manner.  She further recalled that Mr. Perrone was yelling at her.

2. In July/August 2020, Ms. Phillips heard from others in the community that Mr. Perrone was insinuating, along with others, that Ms. Phillips was behind a smear campaign to get rid of the General Manager.  Ms. Phillips alleged she confronted Mr. Perrone about what she was hearing on August 6, 2020.

3. On August 7, 2020, Ms. Phillips understood that Mr. Perrone stated to a homeowner that she could never be General Manager because of Ms. Phillips’s lack of financial background.  She asserted that Mr. Perrone gave an example suggesting Ms. Phillips did not know how to calculate the impact added costs would have on assessments.

4. On August 25, 2020, Ms. Phillips attended a meeting regarding the Bainbridge project.  Ms. Phillips contends Mr. Perrone was condescending and argumentative toward her.  She perceived Mr. Perrone yelled at her during this meeting in front of others causing her embarrassment.

5. In October 2020, Ms. Phillips attended a meeting with Mr. Perrone, Doug Parks, the General Manager, and the Human Resources Manager to discuss a Go Fund Me page Ms. Phillips established for a former employee.  Ms. Phillips claims Mr. Perrone again spoke to her in a demeaning and condescending way.  Ms. Phillips felt she was being disciplined for a charitable gesture for a friend and that her coworkers who were also involved were not similarly counseled.

6. On January 4, 2021, Ms. Phillips had a meeting with Mr. Perrone, the General Manager, and another Ocean Pines employee to discuss the Bainbridge project.  Ms. Phillips recalled that Mr. Perrone asked a series of questions in a yelling voice.  Ms. Phillips reported she pushed back stating to Mr. Perrone “Why are you always yelling at me?”  Ms. Phillips recalled Mr. Perrone continued to disagree with her about the project in an aggressive and condescending manner.  Ms. Phillips submitted her email complaint after this meeting.

7. On January 11, 2021, Ms. Phillips attended a meeting with the General Manager, Mr. Perrone, Ms. Horn, and the Human Resources Manager to discuss the management review report received by the Board.  Ms. Phillips found it objectionable that she was being counseled about allegations raised by other employees about her that were found to be unsubstantiated.  Ms. Phillips felt the only reason she was being told the information was to make her feel bad and get her to quit.

8. On January 19, 2021, Ms. Phillips attended a public budget meeting.  She reported Mr. Perrone picked on her department specifically in a manner to target her.  She recalled feeling like Mr. Perrone was again speaking to her in a condescending and demeaning fashion.  

Summary of the Response  

 Mr. Perrone denied harassing or demeaning Ms. Phillips.  He specifically denied yelling at Ms. Phillips. Mr. Perrone acknowledged that he had significant concerns about the Bainbridge project.  He acknowledged asking direct questions about the project.  He believes that Ms. Phillips often failed to address his questions.  He believes it is his duty as a Board member to scrutinize the project thoroughly to protect Ocean Pines.

Findings of Fact

The following is a summary of the factual findings from Mr. Neary’s report:

1. Ms. Phillips subjectively perceived her interactions with Mr. Perrone as harassing and hostile.  She experienced Mr. Perrone as yelling at her in two meetings.  The evidence supporting this finding was that Ms. Phillips contemporaneously reported general concerns about Mr. Perrone to another employee in June 2020.  Ms. Phillips routinely reported her specific concerns about Mr. Perrone harassing her to two other employees since then.  

3. Mr. Perrone told a resident in August 2020 that he didnot believe that Ms. Phillips could perform the job of General Manager for certain reasons.  The evidence supporting this is that Mr. Perrone admits it happened.  Mr. Perrone subjectively believed this resident was serving as an informal advisor to Ms. Phillips.  He therefore felt it appropriate to disclose the information so this individual could use the information to help Ms. Phillips improve her performance.  Ms. Phillips confirms that through 2019 this resident was informally mentoring her.  She also confirmed that the leadership at Ocean Pines generally knew of the informal mentorship.  She indicated that the informal mentorship ended at the end of 2019.  Ms. Phillips stated that she made the General Manager aware that it had ended in summer of 2020.  Ms. Phillips believed this is the first time she advised management the informal mentorship ended.  This conversation happened shortly after the result of the last Board election was announced.  Thus, it is reasonable for Mr. Perrone to have concluded the resident in question was informally mentoring Ms. Phillips when he relayed his opinions about Ms. Phillips’s performance on the day that votes from the last election were counted.

4. Mr. Perrone was present at two meetings in August 2020 to discuss the Bainbridge project where Ms. Phillips was present.  At the first meeting at Public Works, Mr. Perrone asked a series of questions about the project.  The questions were critical of the work to date on the project.  At the second meeting on August 25th, County officials, another employee, and Doug Parks were present.  Mr. Perrone again asked a series of questions about the Bainbridge project that were critical of the process and status of the project to date.  Mr. Perrone admits asking direct questions seeking answers to alleviate his significant concerns about the status of the project. 

5. Ms. Phillips perceived that Mr. Perrone was yelling at her during the meeting on August 25th with County officials. Another employee present shares this view.  A second employee present recalled no such yelling.  This second employee recalls that Mr. Perrone was direct and firm, but he did not view Mr. Perrone’s tone as yelling.  Mr. Parks recalls that he never witnessed Mr. Perrone yelling at Ms. Phillips, but that Mr. Perrone was animated and was attacking the project.  Mr. Parks found the target of the questions and criticisms about the project was Ms. Phillips.

6. Based on the various accounts of Mr. Perrone’s conduct during the August meetings it is likely that he was frustrated and agitated with the project and the answers he received to his questions.  It is unlikely that he was yelling.  But during the August 25th meeting it is likely his voice was animated at times such that the tone could reasonably be interpreted as yelling.  The support for the determination that Mr. Perrone was not yelling during the meeting is that he denies it, another employee present does not recall yelling, and Mr. Parks does not recall yelling.

7. Mr. Perrone attended a meeting with Ms. Phillips, Doug Parks, the Human Resource Manager, and John Viola in October 2020.  The purpose of the meeting was to discuss Ms. Phillips’s Go Fund Me account for a former employee.  The group sought to educate Ms. Phillips the need to clear such activity with her superiors given her position within Ocean Pines.  Mr. Perrone responded to Ms. Phillips questions by providing additional guidance.  Mr. Viola and the Human Resource Manager felt Mr. Perrone was professional during the meeting and appropriate in his tone.  They both recall Mr. Perrone was respectful with the message and acknowledged he knew Ms. Phillips was trying to do a good thing for a friend.  Mr. Parks recalls that Mr. Perrone’s tone came across as someone dressing down an employee and negative. Mr. Perrone did not yell in this meeting.  His conduct was within the bounds of reasonableness for a counseling session.  The support for this is that Mr. Viola and the Human Resource Manager recounted that Mr. Perrone was professional during the meeting.  While Mr. Parks felt the tone of Mr. Perrone’s comments were negative, he did not describe Mr. Perrone as acting in a condescending or demeaning fashion.

8. Ms. Phillips, John Viola, another employee, and Mr. Perrone had a meeting regarding Bainbridge on January 4.  Ms. Phillips was present through Microsoft TEAMS.  The other three individuals were in the same room.  During the meeting, Mr. Perrone again asked direct questions about the status of the Bainbridge project.  Mr. Perrone was particularly focused on the status of the grant money.  He and Ms. Phillips had a difference of opinion as to what Ms. Phillips had represented previously.  Mr. Perrone continued to push for the answers to his questions.  Ms. Phillips pushed back on Mr. Perrone.  She pressed Mr. Perrone on why he is against the project and said “Why are you always yelling at me?”  Mr. Perrone denied yelling, and indicated he did not believe Ms. Phillips was answering the questions. It is unlikely that Mr. Perrone yelled in this meeting.  Mr. Viola and the other employee present do not recall Mr. Perrone yelling.  They both recall that Mr. Perrone asked direct business oriented questions.  Given that Ms. Phillips was present through Microsoft TEAMS it is possible Mr. Perrone’s voice may have come through differently over that platform than it appeared to those in the room.

9. Mr. Perrone attended a meeting on January 11 to give Ms. Phillips the results of the Board’s management review as approved by the Board.  Mr. Viola, Ms. Horn, and the Human Resource Manager were also present in the meeting.  Mr. Perrone’s role in the meeting was limited. At the end, he reiterated some points Ms. Horn made during the meeting.  Mr. Perrone conducted himself professionally in this meeting.  The support for this finding is that Mr. Viola, Ms. Horn, and the Human Resource Manager all recount that Mr. Perrone acted professionally during the entire meeting.

10. Mr. Perrone’s actions toward Ms. Phillips throughout this period were motivated solely by legitimate business reasons.  The evidence to support this is that no witness suggested Mr. Perrone made any comment referencing a protected characteristic of Ms. Phillips.  The closest any witness came to suggesting Mr. Perrone’s actions were motived by unlawful reasons was Ms. Phillip’s suggestion that Mr. Perrone treats another male employee and “everyone else” differently than her.  Most of the witnesses, however, suggested Mr. Perrone’s usual communication with everyone he comes across professionally is direct and can be abrasive if Mr. Perrone feels his concerns are not being adequately addressed.  Mr. Parks noted one instance in particular where Mr. Perrone acted in a direct and abrasive manner toward a male employee of Ocean Pines.  

11. Ms. Phillips believes that the Board started a process to investigate her in mid-summer for attempting to undermine John Viola.  She believes Mr. Perrone was the leader of these efforts on the Board.  Ms. Phillips has formed this view from community members who she believes had knowledge of the Board’s deliberations.  Based on this perception, Ms. Phillips seems sensitive to any interaction with Mr. Perrone.  Ms. Phillips’s enhanced sensitivity surrounding her interactions with Mr. Perrone is shown by her general complaint that Mr. Perrone treated her in a demeaning fashion during the recent open budget and finance meetings.  A review of the relevant portions of those videos does not objectively support a conclusion that Mr. Perrone was harassing, demeaning, or acting condescendingly toward Ms. Phillips.  Ms. Phillips’s subjective belief that they were harassing and/or demeaning suggests she is sensitive to these issues given her general belief that Mr. Perrone was working to undermine her.  

Conclusion

In addition to the above findings of fact, the Board received a legal analysis and recommendation from Mr. Neary.  Based on the findings of fact and legal analysis, the Board determined Mr. Perrone did not violate Resolution B-08.

Board of Directors

Ocean Pines Association, Inc.