By Steve LeBlanc, Associated Press, 05/07/02

Jordan Levy Christy Mihos (Globe Staff File Photos)  BACKGROUND Highlights of the clash between acting Gov. Jane Swift and Massachusetts Turnpike Board members Jordan Levy and Christy Mihos: Oct. 30, 2001 -- Levy and Mihos vote to delay toll hikes by six months, saying they want more time to consider other financing options. Swift calls the vote "fiscally irresponsible." Nov. 11, 2001 -- Swift asks Mihos and Levy to resign from the three-member board. They refuse. Nov. 15, 2001 -- Moody's Investor Services downgrades its outlook for the Turnpike Authority from "stable" to "negative" citing the toll vote. Nov. 16, 2001 -- Swift suspends Mihos and Levy. They again refuse to step down and instead approve more than $10 million in new toll hikes. Nov. 19, 2001 -- Levy and Mihos file a lawsuit to block Swift from firing them. Swift backs off until the court decides if she has the authority to fire members of independent boards. Dec. 5, 2001 -- Lawyers for Levy and Mihos argue their case before the Supreme Judicial Court. Dec. 10, 2001 -- The Supreme Judicial Court rules Swift has the authority to fire Mihos and Levy. Dec. 13, 2001 -- Swift schedules private hearings for Mihos and Levy before making a final decision on firing. Jan. 10-11, 2002 -- Swift holds closed-door hearings. Mihos and Levy argue that their decision to delay toll hike was fiscally sound. Feb. 6, 2002 -- Swift fires Mihos and Levy. The third board member, Chairman David Forsberg resigns. Swift names Highway Commissioner Matthew Amorello to replace Forsberg as chairman and names former State Street Bank executive Nicholas Lopardo and Boston attorney John Moscardelli to replace Mihos and Levy. Feb. 23, 2002 -- Levy files suit in U.S. District Court in Boston alleging Swift infringed on his first amendment rights. March 4, 2002 -- Mihos and Levy ask the Supreme Judicial Court to overturn Swift's decision, arguing she did not have "just cause" and the decision was politically motivated. May 7, 2002 -- The Supreme Judicial Court in a 4-3 decision overturns the firing of Mihos and Levy, ruling that Swift did not show enough evidence to fire the two.  FROM THE ARCHIVES Past coverage of the Levy/Mihos case from the Globe

BOSTON -- The state's highest court on Tuesday reinstated two Turnpike board members fired by acting Gov. Jane Swift in a ruling that could bolster the power of independent state authorities.

The Supreme Judicial Court, by a 4-3 vote, ruled Swift did not have enough evidence to fire Jordan Levy and Christy Mihos from the Massachusetts Turnpike Authority board.

"This case boils down to a difference of opinion between the Governor and two members of the Authority over the policy of the Authority and the ability of the members to fix tolls," the court said.

"That difference of opinion does not constitute substantial evidence that Levy or Mihos acted in a manner that warrants removal by the Governor for cause."

Swift fired Mihos and Levy because she said they acted "fiscally irresponsibly" by voting last year to delay a scheduled toll hike on the Turnpike from January until July.

Swift said she was disappointed by the court's decision, but will not fight it. The board will consist of Levy, Mihos and Turnpike Chairman Matthew Amorello, Swift said.

Levy hailed the ruling, calling it a "great victory for people who aren't afraid to speak their minds."

"I spoke with Chairman Amorello. As long as we have an honest, open candid relationship, things will be just fine," Levy said.

The ruling is also a victory for the state's independent boards. The decision appears to make it more difficult for governors to remove members of authorities without sufficient cause.

"The decision gives very strong authority to independent authorities," Swift said. "It makes the initial appointment of individuals to independent authorities very, very important."

Mihos said he never doubted the decision to delay the tolls.

"There is a simmering anger out there and we felt it. We felt the pulse of the public," he said. "This travesty never had to happen."

After Swift tried to suspend them from the board, Mihos and Levy voted to restore a 75-cent toll at exit 16 in West Newton, and order a study of restoring tolls at exits 1 through 6 in the western part of the state.

Mihos said those ideas were still on the table.

"Everything is in play," he said.

Swift said the toll hike on the Boston end of the road was needed to pay off the Turnpike's share of the Big Dig's bonds. The delay cost the Massachusetts Turnpike Authority about $30 million.

The hike, set to take effect July 1, will increases tolls from 50 cents to $1 at Allston-Brighton, and from $2 to $3 on the Sumner and Williams tunnels. It also increases tolls from 50 cents to $1 at Route 128 for cars continuing to Boston.

Lawyers for Mihos and Levy had argued that Swift's decision was politically motivated and that the Turnpike's ability to pay off its Big Dig bonds was never in jeopardy.

They said Swift's true motivation was her concern that Mihos and Levy might not agree to additional toll increases if the cost of the Big Dig continued to rise.

The legal bill for Mihos and Levy will likely top $500,000 and will be paid by the Turnpike Authority, Levy said.

Mihos said his top priority is to re-negotiate the contract with lead Big Dig contractor Bechtel/Parsons Brinckerhoff. The board has not met in seven months.

The narrow ruling initially split the court with three justices siding with Swift and three with Mihos and Levy. The tie was broken when Justice John Greaney, who had excused himself, re-entered the case to break the tie.

Greaney had initially taken himself out because he had already ruled on other matters concerning the case. He was not present at the March 4 hearing where lawyers for Mihos and Levy asked the court to overturn Swift's decision.

The ruling is the latest legal twist in an eight-month battle pitting Swift against Mihos and Levy.

In December the SJC ruled Swift had the authority to fire the two if she could show enough cause. Mihos and Levy argued she could not because they were members of an independent authority.

In January Swift held closed-door hearings with the two and in February announced she was firing them. Turnpike Chairman David Forsberg, the board's third member, resigned.

Swift named Amorello, then state highway commissioner, to replace Forsberg as chairman and named former State Street Bank executive Nicholas Lopardo and Boston attorney John Moscardelli to replace Mihos and Levy.

The new board held no meetings and took no votes.

The Turnpike board oversees the Massachusetts Turnpike and the $14.6 billion Big Dig, known as Central Artery/Third Harbor Tunnel Project, which will bury part of Interstate 93 beneath the city.