City of Providence v. Employee Retirement Board

749 A.2d 1088, 2000 R.I. LEXIS 81
CourtSupreme Court of Rhode Island
DecidedApril 3, 2000
Docket96-265-Appeal, 96-424-Appeal
StatusPublished
Cited by22 cases

This text of 749 A.2d 1088 (City of Providence v. Employee Retirement Board) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Providence v. Employee Retirement Board, 749 A.2d 1088, 2000 R.I. LEXIS 81 (R.I. 2000).

Opinion

OPINION

BOURCIER, Justice.

These two cases, consolidated here for purposes of appeal, concern two separate final judgments entered in the Superior Court by different trial justices. 1

In the first appeal, No. 96-265-A., one of the plaintiffs, the City of Providence, joined by one of the defendants in that case, the Providence city treasurer, appeals from a November 27, 1996, final judgment entered by Israel, J., denying their Super.R.Civ.P. 60(b)(4) motions to vacate a December 18, 1991, consent judgment (hereinafter, “the consent judgment”) entered in Superior Court civil action PC 90-2119.

In the second appeal, No. 96-424-A., all the parties cross-appeal from a final judgment entered on November 12, 1998, in Superior Court civil action PC 93-5277, by Silverstein, J. The kaleidoscopic chronology of these protracted cases requires that we first unravel from that chronology what we perceive to be the actual and disposi-tive issues presented in each appeal. We take up first, the city council and city treasurer’s appeal from the Superior Court judgment entered in PC 90-2119. In the course of doing so, we will make reference when necessary to certain relevant facts that are part of PC 93-5277, the second and consolidated appeal presented for our review.

I

No. 96-265-Appeal (PC 90-2119)

At a meeting of the Providence Employee Retirement Board (retirement board) *1090 held on December 6, 1989, the retirement board voted to approve a variety of retirement benefits for both Class A and Class B city employees, including various cost of living adjustments (COLAS). 2 That action and vote (hereinafter, the COLA vote) served as the epicenter for the imbroglio that later would develop between the city council and the city retirement board, which in turn produced city council Resolution No. 90-138, on April 6, 1990, and which eventually erupted into Superior Court civil action PC 90-2119.

In PC 90-2119, the City of Providence, as a party plaintiff, had sought declaratory relief to determine the validity of the December 6, 1989, pension action taken by the retirement board. The city treasurer was a named defendant. That action, we‘ note, had been commenced, pursuant to City Council Resolution No. 90-138, by vote of “at least a % vote of all the Members of said City Council” and was intended to be “in the overall best interest of the City of Providence.” In aid of that resolution, the city council voted to retain private counsel who earlier had been engaged to represent the City of Providence, and to compensate that private counsel upon submission of “his bills for payment to the Chairman of the [city council’s] Finance Committee, or his designee.” Subsequently, pursuant to the resolution, attorney Joseph V. Cavanagh (Cavanagh) was retained as the private counsel. Nineteen days later on April 25, 1990, Cavanagh filed the city’s complaint, PC 90-2119, in the Providence Superior Court. 3

In the city’s complaint, the retirement board’s December 6, 1989, COLA and pension award action was put in issue, and its legality was challenged. Following routine discovery procedures, the case was ultimately reached for trial before a Superior Court justice (Gibney, J.), sitting without a jury. Upon completion of that trial, the trial justice prepared and entered a written decision in which she denied the city’s claims. In that decision, she found that the retirement board’s December 6, 1989, vote was valid, and upheld the retirement board’s pension and COLA grants. Counsel were ordered to prepare and submit an appropriate judgment for entry by the trial justice.

Instead of preparing that judgment, counsel informed the trial justice that they were attempting to negotiate a final settlement of the case to avoid any appellate *1091 proceedings and to finally terminate the city pension controversy and litigation. They requested and were granted time within which to negotiate. Negotiations then ensued between the city solicitor (representing the city treasurer), Cav-anagh (representing the City of Providence), the city’s director of administration, and counsel for the retirement board. By December 17, 1991, an agreed case settlement had been negotiated. Its terms and provisions pertaining to the city employee pension grants were adopted formally by vote of the retirement board at a December 18,1991, meeting, and the negotiated consent judgment was thereafter presented to the trial justice for entry. On that same day, the city’s ebullient may- or proceeded to author a press release, and scheduled a press conference at which he announced that a case settlement, most beneficial to the city, had been negotiated. He explained at the press conference that the negotiated settlement would reduce the city’s retiree pension obligations, that otherwise would have been mandated by the trial justice’s decision, by some fifteen million dollars “over the next three years.”

The following day, at a city council meeting, the consent judgment, as well as the mayor’s press release concerning the benefits and provisions of the consent judgment, was the subject of discussion by the council’s finance committee chairman, Councilman David Dillon. At that council meeting, no question was raised concerning attorney Cavanagh’s authority either to agree to, or to enter into, the consent judgment on behalf of the City of Providence. In fact, as later conceded by the city solicitor, the city council and the city of Providence all acted in apparent reliance upon what this Court previously had said in Bruckshaw v. Paolino, 557 A.2d 1221 (R.I.1989), concerning the retirement board’s authority pursuant to the city’s 1980 Home Rule Charter and, therefore, they proceeded to comply fully with the terms of the consent judgment, and its concomitant financial obligations, during 1992 and 1993. 4 That compliance continued even after this Court’s opinion in Betz v. Paolino, 605 A.2d 837 (R.I.1992), filed on April 8,1992.

In Betz, this Court held that the city’s 1980 Home Rule Charter had served to vest in the city council the exclusive authority to legislate city employee benefits, and had delegated to the retirement board the authority only to administer those council-legislated benefits. See Betz, 605 A.2d at 839-40. Notwithstanding that clear holding in Betz, the city solicitor, Charles Mansolillo (Mansolillo), nonetheless, in a May 12, 1992, letter to various city officials, including the city treasurer, city controller, pension administrator and city council finance chairman David Dillon, advised all that the consent judgment “remains a valid order of the Superior Court; consequently, currently its terms remain in effect.” Thereafter, all remained quiet on the City Hall front for some fourteen months. However, on July 29, 1993, the truce ended and the white flag at City Hall came down.

On July 29, 1993, the city council enacted a council resolution pertaining to the COLA vote. 5

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749 A.2d 1088, 2000 R.I. LEXIS 81, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-providence-v-employee-retirement-board-ri-2000.