IOWA CITY, Iowa -- The former head of Iowa's Weights & Measures bureau has filed a lawsuit claiming he was fired because of complaints from the state petroleum marketer association and a retailer whose practices he questioned, reported the Associated Press.
Michael Manahl filed a lawsuit this week against the Iowa Department of Agriculture & Land Stewardship, alleging he was wrongfully fired because of complaints from Molo Petroleum, a chain of 10 convenience stores based in Dubuque, and the Petroleum Marketers & Convenience Stores of Iowa, over his enforcement and interpretation of the law. The lawsuit seeks his reinstatement to the job and monetary damages.
Agriculture Secretary Bill Northey hired Manahl in 2012 as chief of the Weights & Measures Bureau, which oversees the accuracy of the quality and quantity of fuel sold at the state's gasoline dispensers. Manahl previously worked for the Iowa Department of Public Health.
The bureau began investigating one of Molo Petroleum's Big 10 Mart locations in Bettendorf after customers complained about their vehicles stalling after filling up. The agency was examining whether gasoline sold at the site had become accidentally contaminated with water.
While investigating this issue, Manahl learned that the Bettendorf Big 10 Mart was dispensing 89-octane fuel from both 89-octane pumps and those for the less-expensive, 87-octane fuel. He suggested that this practice fell into a "gray area" and could mislead customers who had paid more for 89 octane, when they could have bought it at the lower 87-octane price.
Petroleum industry officials maintain that this practice is legal because the retailer is selling a higher-quality 89 octane fuel that exceeds requirements for 87 octane. Molo Petroleum argued that doing the opposite--that is, selling 87 octane for the higher 89 price--would qualify as fraud.
Molo Petroleum told Manahl it had stopped selling the 89 octane as 87, the lawsuit said; however, Manahl still sent the retailer a warning letter about the practice, saying it might violate Federal Trade Commission rules and state law that prohibits falsely advertising "the quality or kind of any motor fuel."
According to the lawsuit, a Molo manager then complained to Northey about Manahl. It alleges that Northey spoke to Manahl's supervisor, Steve Moline, who then met with representatives from Molo Petroleum and the industry association about their complaints. After this meeting, Moline sent a letter to Molo Petroleum clarifying that the state was not alleging that the retailer had violated federal law. The lawsuit said that Moline then fired Manahl that same day.
In his lawsuit, Manahl charges that his firing violated state whistleblower laws and his free-speech rights, and that he should have been granted a hearing to challenge the dismissal under a special hiring law covering military veterans (Manahl is an Iraq War veteran).
"He was simply trying to do his job to enforce the laws to the best of his ability," said Nate Willems, Manahl's lawyer. "For doing so, he lost his job."
A Northey spokesperson declined to comment on the lawsuit because of the ongoing litigation. Molo Petroleum and the Petroleum Marketers & Convenience Stores of Iowa told the AP that they disputed the allegations, and said that Manahl was unfairly tarnishing the retailer's reputation.
"Our reputation was being unfairly muddied by a guy who was new to his job and really didn't understand the workings of our industry," Mark Molo, president of Molo Petroleum, told the news agency. He also insisted that he did not ask for Manahl's firing.
"If you sell 89 at an 87 price, it's like giving you a one-pound Snickers bar for the price of a half-pound bar," he said. "It didn't hurt anybody except the company."
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