Banish v. City of Hamtramck

157 N.W.2d 445, 9 Mich. App. 381, 1968 Mich. App. LEXIS 1483
CourtMichigan Court of Appeals
DecidedMarch 18, 1968
DocketDocket 2,658
StatusPublished
Cited by46 cases

This text of 157 N.W.2d 445 (Banish v. City of Hamtramck) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Banish v. City of Hamtramck, 157 N.W.2d 445, 9 Mich. App. 381, 1968 Mich. App. LEXIS 1483 (Mich. Ct. App. 1968).

Opinion

Levin, J.

Plaintiffs are retired policemen and firemen and retired members of tbe police signal and fire alarm systems of tbe city of Hamtramck. Under tbe provisions of tbe city charter, they are entitled to receive a pension at the rate of one-half the pay of the rank in which they served at the time of retirement. The charter provides that in the event of any change at any time after retirement “in • such rate of pay” the pension thereafter will be “at the rate of 1/2 the pay for said rank so changed.” 1

The charter provision was adopted in 1938, and from the time of its adoption through the fiscal year preceding 1959-1960 pensioners received their 50% share of adjustments whenever pay changes were approved for persons on active duty. For the fiscal year 1959-1960 the common council adopted the recommendation of its budget board increasing the pay of its class B employees to correspond to that paid in the city of Detroit, but providing that retirees shall not receive one-half of the increment. Such proviso was expressed as follows:

“that the basic pay of the Class B employees for all intents and purposes shall be the same as was prevailing in the 1958-1959 fiscal year and that any *386 amounts paid over and above such basic pay shall be construed as payments made only while in active service for the city of Hamtramck and not constituting part of any salary upon which pension payments are to be computed and paid in the future.” (Emphasis added.)

The parties refer to the increment over basic pay, in 1959-1960 and later years paid only to those in active service, as “in service pay.”

The plaintiffs, and the other members of the class in whose behalf this suit was instituted, are all class B employees.

The separate designation for “in service pay” set forth for the first time in the 1959-1960 budget also appears in subsequent budgets. In the 1964-1965 budget, “in service pay” was supplemented by “hazard risk pay,” a designation continued in the 1965-1966 budget. During these years employees in active service received an annual clothing or uniform allowance, annual holiday pay and annual longevity pay benefits not reflected in the pensions of retired employees.

The retirees made informal efforts to obtain from the city payment of 50% of these amounts. When such efforts failed a petition demanding payment was filed with the common council on August 24, 1964. The petition was rejected on September 29, 1964.

Plaintiffs’ complaint was filed March 1, 1965, and sought a writ of mandamus requiring payment of increased pension benefits. Defendants answered that the charter provision means “one-half of regular salary and not any other pay”, that the common council of the city of Hamtramck might authorize compensation over and above the “regular salary’" payable only to active members of the police and fire departments and signal and alarm systems, and that *387 in service, hazard risk, holiday and longevity pay and clothing and uniform allowances were not part of regular salary.

One of the city officers who was conversant with the matter testified that the action of the common council in adopting the 1959-1960 recommendation of the budget board was a temporary austerity measure due to loss of revenue; the intent was to restore to the retirees full pension benefits; and when the city adopted an income tax ordinance substantial sums were set aside for pension benefit payments once the courts passed on the constitutionality of the income tax ordinance.

There was testimony that the nature of the work of policemen and firemen had not changed, and that the hazard of those positions was not fundamentally different from the hazard faced by the retirees when they served. Deductions were made from the pay of active service employees for city and federal income tax in respect to the portions of their pay designated in service, hazard risk, longevity, and holiday; there was no such deduction in regard to the clothing or uniform allowance.

The trial judge found that both hazard risk and in service pay were increases in regular compensation, and that such increases in pay were so labeled to circumvent the charter requirements that retirees receive one-half thereof. He added: “the same goes for holiday pay and the same goes for uniforms. This is simply giving increases by-virtue of different titles.”

On July 14, 1966, a judgment was entered by the trial judge adjudicating this a class action and that the members of the class — plaintiffs and all persons who had retired as policemen, firemen, and members of the police signal and fire alarm systems — were entitled, as part of their retirement pensions, to; *388 50% “of all pay increases, including ‘in service pay increase’ and ‘hazard risk pay’; 50% of all uniform allowances; 50% of all paid holidays”; hut they “shall not recover any part of the longevity payments made to those of the same rank or grade on active duty”.

The judgment declared the increase in benefits retroactive to March 1, 1959, and covered benefits through the fiscal year 1965-1966. It also provided that, once computed, individual arrearages shall be set forth in a supplemental judgment and bear interest at 5% per annum from the date of said supplemental judgment, except that in the case of deceased employees interest shall'not run until after appointment of a special or general administrator to whom payment may be made.

The defendants appeal. The plaintiffs cross-appeal, claiming a right to 50% of longevity pay and interest from the date [August 24,1964] the petition demanding payment was filed with the city council.

I.

The charter of a city is its fundamental law, and all ordinances in conflict therewith are null and void, upon the principle that a statute which contravenes a constitution must fall. Mayor of City of Dearborn v. Dearborn Retirement Board of Trustees (1946), 315 Mich 18, 24; Thiesen v. Dearborn City Council (1948), 320 Mich 446; Brady v. City of Detroit (1958), 353 Mich 243. 2

The distinction sought to be created between “regular salary” and “any other pay” is clearly fore *389 closed by the charter language, which speaks simply in terms of “pay.” A fair reading of the charter language requires that the term “pay,” as used in the clause “1/2 the pay for said rank so changed”, be interpreted to mean the regular compensation currently paid to those of the rank held by the retiree at the time of his retirement. The crucial question, then, is what is regular compensation? We have no hesitancy in holding, on the facts of this ease, that in service pay and hazard risk pay are regular compensation. Those terms were devised in an attempt to take two bites out of the cherry with the deliberate purpose, and none other, of depriving retirees of the full pension rights which the charter mandates.

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Bluebook (online)
157 N.W.2d 445, 9 Mich. App. 381, 1968 Mich. App. LEXIS 1483, Counsel Stack Legal Research, https://law.counselstack.com/opinion/banish-v-city-of-hamtramck-michctapp-1968.