Bayh v. Sonnenburg

573 N.E.2d 398, 1991 Ind. LEXIS 113, 1991 WL 102355
CourtIndiana Supreme Court
DecidedJune 12, 1991
Docket37S03-9106-CV-437
StatusPublished
Cited by202 cases

This text of 573 N.E.2d 398 (Bayh v. Sonnenburg) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bayh v. Sonnenburg, 573 N.E.2d 398, 1991 Ind. LEXIS 113, 1991 WL 102355 (Ind. 1991).

Opinions

ON PETITION TO TRANSFER

SHEPARD, Chief Justice.

The Jasper Circuit Court entered a judgment for nearly $28 million against the State of Indiana in this class action brought on behalf of 7400 patients of Indiana's mental hospitals for work they performed while confined in those hospitals in the early 1970's. We hold that the patients are not entitled to compensation and reverse the judgment of the trial court.

I. Background and Procedural History

On May 23, 1974, Leo Sonnenburg and Gerald Hartnett filed this class action in the LaPorte Circuit Court against then-Governor Otis Bowen and then-Commissioner of the Department of Mental Health William Murray. Plaintiffs sought compensation for labor performed while they were patients in state mental hospitals. The original complaint contended the plaintiffs were entitled to payment under the minimum wage and overtime provisions of the Fair Labor Standards Act, 29 U.S.C. §§ 206, 207 (1988) [hereinafter FLSA],1 and the involuntary servitude clause of the thirteenth amendment to the United States Constitution.

In March 1976, plaintiffs amended their complaint to add a count based on Indiana's patient remuneration law, Ind.Code §§ 16-13-12.8-1 to -10 (Burns 1978). Indiana's patient remuneration board, which had been created by that law, was added as a defendant. After the United States Supreme Court ruled in National League of Cities v. Usery, 426 U.S. 833, 96 S.Ct. 2465, 49 L.Ed.2d 245 (1976), that the Constitution prohibited application of FLSA to many state employees, plaintiffs again amended their complaint to drop the FLSA count and add a count based on quasi-contract.

In 1978, the trial court entered an order delineating the plaintiff class and granting partial summary judgment for the class based on the patient remuneration law. Defendants perfected an interlocutory appeal from this order. The Court of Appeals reversed both the class determination and the partial summary judgment, and remanded. Bowen v. Sonnenburg (1980), Ind.App., 411 N.E.2d 390. Following remand, the case was venued to the Jasper Circuit Court. Judge Kanne certified Gerald Hartnett and Dennis Sheffield as class representatives; Leo Sonnenburg was not allowed to serve due to mental incapacity. [401]*401Judge Kanne also certified the class as "[alll patient workers who have labored in the State of Indiana Institutions for the Mentally Handicapped or Mentally Retarded from May 23, 1970 to December 31, 1974." So certified, the class totalled 7419. After the U.S. Supreme Court overruled National League of Cities in Garcia v. San Antonio Metropolitan Transit Authority, 469 U.S. 528, 105 S.Ct. 1005, 83 LEd.2d 1016 (1985), plaintiffs moved to amend their complaint to resurrect their FLSA claim. Defendants opposed the motion on grounds of prejudice, but the trial court granted leave to amend. It also permitted defendants to file a counterclaim for over $200 million against the plaintiff class seeking payment for the cost of providing hospitalization to class members. The counterclaim was withdrawn by the defendants on October 24, 1986.

A special judge, William Andersen, Jr., was appointed in October 1985, and the case was tried to the bench in 1987. During trial, the plaintiffs introduced a new count based on § 21 of the Indiana Bill of Rights (just compensation for particular services),2 and raised a claim under 42 U.S.C. § 1983 (1988). The § 1983 claim alleged violations of the thirteenth and fourteenth amendments, the FLSA, and a federal anti-peonage statute, 42 U.S.C. § 1994 (1988).

Judge Andersen rendered a general judgment for plaintiffs without findings of fact and conclusions of law on November 17, 1987. The court awarded nearly $14 million to the plaintiff class, an amount derived by multiplying the number of hours worked by $1.60. On top of this, the court ordered defendants to pay an equal amount in prejudgment interest, bringing the total judgment to nearly $28 million. From this total, the court awarded $5.5 million in attorney fees to plaintiffs' counsel and nearly $84,000 in costs. The court also reserved $2.5 million for potential payments to counsel for postjudgment services. Defendants moved for a stay of judgment pending appeal, pursuant to Indiana Trial Rule 62, which the court granted without a bond.

On appeal, defendants principally contended that the verdict was contrary to law, unsupported by any of the legal theories advanced by the plaintiffs. They also claimed the trial court erred in allowing the total judgment to increase with the discovery of new class members, in awarding prejudgment interest, in awarding costs, and in awarding attorney fees far above the lodestar amount.3

The Court of Appeals affirmed in part and reversed in part. It held that plaintiffs were entitled to just compensation for particular services rendered under article I, § 21 of the Indiana Constitution. Orr v. Sonnenburg (1989), Ind.App., 542 N.E.2d 201, 205. It refused, however, to allow the judgment to increase as new members of the class were discovered. Over Judge Staton's dissent, the Court of Appeals also reversed the award of prejudgment interest. Having thereby reduced the total award by half, the Court of Appeals vacated the award of attorney fees and remanded to the trial court with instructions to recalculate it. The Court of Appeals did not, however, disagree with the trial court's method for calculating attorney fees. On the contrary, it held that a trial court need not limit a fee award to the lodestar amount and that a trial court may exercise discretion in setting the fee. Id. at 207.

[402]*402Both sides have petitioned this Court for transfer. Plaintiffs claim the Court of Appeals erred in refusing to allow prejudgment interest and in refusing to allow the judgment to increase with the discovery of new class members. Defendants claim the Court of Appeals erred: in interpreting article I, § 21; in deciding that attorney fees need not be based on the lodestar amount; and in failing to specify whether the award constituted damages (presumably untaxed) or wages (presumably taxed). Because the Court of Appeals failed to give a statement in writing on plaintiffs' non-constitutional claims, Ind.Appellate Rule 11(B)(2)(e), and because the constitutional issue is one of first impression, App.R. 11(B)(2)(b), we grant transfer and vacate the opinion of the Court of Appeals.

IL Nonconstitutional Issues Come First

The Court of Appeals recognized that there were six theories on which the trial court could have based its verdict, four of which were nonconstitutional theo-ries.4 Orr v. Sonnenburg, 542 N.E.2d at 203-04. The court also correctly noted that the trial court's general judgment must be affirmed if it is sustainable on any theory supported by the record.5 Id. at 204.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Randall Travis v. Leon S Baine
Indiana Court of Appeals, 2025
Theodore Edward Rokita v. Barbara Tully
Indiana Court of Appeals, 2024
Jeana M. Horner v. Terry R. Curry
125 N.E.3d 584 (Indiana Supreme Court, 2019)
The Peoples State Bank v. Benton Township of Monroe County, Indiana
28 N.E.3d 317 (Indiana Court of Appeals, 2015)
Toby D. Pope v. City of Lawrenceburg
Indiana Court of Appeals, 2014
Eagle Aircraft, Inc. v. Anthony Trojnar
983 N.E.2d 648 (Indiana Court of Appeals, 2013)
Kohl's Indiana, L.P. and Kohl's Dept. Store, Inc. v. Dennis Owens
979 N.E.2d 159 (Indiana Court of Appeals, 2012)
Morris v. Crain
969 N.E.2d 119 (Indiana Court of Appeals, 2012)
Boss v. State
964 N.E.2d 931 (Indiana Court of Appeals, 2012)
Carolyn Boss v. State of Indiana
Indiana Court of Appeals, 2012

Cite This Page — Counsel Stack

Bluebook (online)
573 N.E.2d 398, 1991 Ind. LEXIS 113, 1991 WL 102355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bayh-v-sonnenburg-ind-1991.