Bence v. City of Milwaukee

267 N.W.2d 25, 84 Wis. 2d 224, 1978 Wisc. LEXIS 1081
CourtWisconsin Supreme Court
DecidedJune 30, 1978
Docket76-027
StatusPublished
Cited by19 cases

This text of 267 N.W.2d 25 (Bence v. City of Milwaukee) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bence v. City of Milwaukee, 267 N.W.2d 25, 84 Wis. 2d 224, 1978 Wisc. LEXIS 1081 (Wis. 1978).

Opinion

HEFFEENAN, J.

The appeal is from an order overruling a demurrer to the plaintiffs’ complaint for declaratory judgment.

The plaintiffs, who are a class of retired police officers and employees of the Milwaukee Police Department, alleged that Charter Ordinance 410, adopted by the Milwaukee Common Council in 1974, was unconstitutional, because it deprived the plaintiffs of their constitutional rights of equal protection and due process in respect to their pensions. They sought a declaration of unconstitutionally pursuant to sec. 269.56, Stats, (now renumbered as sec. 806.04(2)). 1

The Policemen’s Annuity and Benefit Fund, which was established by the City of Milwaukee, administers two *227 basic pension systems, one for officers who entered service prior to May 17, 1945, and the other for officers who entered the service between May 17, 1945, and July 29, 1947. Police officers who entered the department after the latter date are under a separately administered employees retirement system of the City of Milwaukee.

The officers of whom the named plaintiffs are representative entered the service between May 17, 1945, and July 29, 1947, and retired prior to October 5, 1973. Their pensions were based on the average of their last three years’ salary. Those officers whose service commenced between May 17,1945, and July 29, 1947, but who retired subsequent to October 5, 1973, are paid pensions based on their highest one year’s salary.

It is the argument of the class which brought this lawsuit that the operation of the ordinance which excludes them from a higher pension basis is the result of a violation of due process and denies them equal protection.

The plaintiffs petitioned the common council for redress ; and upon being unsuccessful with the council, they brought an action for declaratory judgment for the purpose of having the court declare unconstitutional the portions of the ordinance which exclude the plaintiffs from the class entitled to increased benefits.

A resume of the chronology is appropriate for an understanding of the present posture of the case.

Originally, the police officers whose service commenced between May 17, 1945, and July 29, 1947, were entitled to receive pensions amounting to 50 percent of the average of their last five years’ salary upon retirement after twenty-five years of service. Collective bargaining agreements subsequently changed the method for determining pensions. A 1971 agreement changed the basis from 50 percent of the average of the last five years’ salary for employees entering service between May 17, 1945, and *228 July 29, 1947, and who were active on or after January 1, 1971, to 50 percent of the average salary of the last three years.

A collective bargaining agreement entered into on October 15, 1973, precipitated this lawsuit. That 1973 agreement provided that all officers who entered service on or after May 17, 1945, and who were still on active duty would have their pensions computed on the basis of 50 percent of the highest salary earned in any one year.

Charter Ordinance 410 was adopted to implement that collective bargaining agreement. The charter ordinance provided that officers within the class, and on active duty on October 5, 1973, would be entitled to pensions based on the revised method of computation. The effect of the charter ordinance, it is alleged, is to afford lower pension rights (in comparison to the new class created by the ordinance) to the 36 officers who retired prior to October 5, 1973, but to permit an increase in retirement benefits for other officers who entered the service at or about the same time but remained on active duty on October 5, 1973. This, it is claimed, results in an arbitrary and unreasonable classification which denies the plaintiffs equal protection.

It is also claimed that the plaintiffs were denied due process because they were not represented in the collective bargaining negotiations that led up to the 1973 agreement and the 1974 ordinance.

The City of Milwaukee and the Policemen’s Annuity and Benefit Fund demurred to the complaint on three grounds: That the complaint did not state a cause of action, that there was a defect of parties, in that not all persons having an interest in the pension fund who would be affected by the declaration had been made parties, and that the court lacked subject matter jurisdiction for failure to serve the attorney general as required by sec. 806.-04(11), Stats. The latter defect was cured by service on *229 the attorney general, and the trial court considered the demurrer only on the first two grounds.

We address ourselves first to the question of whether the complaint states a cause of action for declaratory judgment. We conclude that it does and that the demurrer of the defendants on that basis was properly overruled by the trial court. We have said that, in order to state a cause of action under the declaratory judgment statute, a complaint must set forth:

“(1) A justiciable controversy (2) ripe for judicial determination (3) between persons whose interests are adverse and (4) involving a legally protectible interest in the plaintiff.” American Medical Services, Inc. v. Mutual Federal Savings & Loan Assn, 52 Wis.2d 198, 203, 188 N.W.2d 529 (1971).

The defendants do not dispute that the first three requirements have been satisfied. They base their demurrer in respect to whether a cause of action is stated on the assertion that the plaintiffs have no legally pro-tectible interest in the controversy. They contend that the plaintiffs are receiving the benefits promised to them when they retired and their rights are unaffected by the collective bargaining agreement of 1973 and the ordinance that followed.

While there may be some validity to the defendants’ position, their argument goes to the ultimate merits — the question of whether the plaintiffs in fact have a legally protectible interest at stake in the controversy — rather than to the question, appropriate at this stage of the declaratory judgment action, of whether the plaintiffs have pleaded the existence of such an interest. The question on demurrer is not whether a plaintiff has an interest which is to be protected but whether it has pleaded that such an interest exists.

*230 The defendants’ position may well be appropriate when the trial court addresses itself to the merits of the case, but it is inappropriate at this juncture. We previously stated the rule in respect to a demurrer to a complaint for declaratory judgment in Waukesha Memorial Hospital, Inc. v. Baird, 45 Wis.2d 629, 633, 173 N.W.2d 700 (1970) :

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Bluebook (online)
267 N.W.2d 25, 84 Wis. 2d 224, 1978 Wisc. LEXIS 1081, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bence-v-city-of-milwaukee-wis-1978.