Clapp v. Goffstown School District

977 A.2d 1021, 159 N.H. 206
CourtSupreme Court of New Hampshire
DecidedAugust 5, 2009
Docket2008-689
StatusPublished
Cited by47 cases

This text of 977 A.2d 1021 (Clapp v. Goffstown School District) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clapp v. Goffstown School District, 977 A.2d 1021, 159 N.H. 206 (N.H. 2009).

Opinion

Hicks, J.

The respondent, Goffstown School District (district), appeals an order of the Trial Court (Abramson, J.) granting the petitioner, Diane Clapp, restitution for the unjust enrichment of the district resulting from its failure to partially fund a pension on her behalf. We reverse.

The record supports the following facts. Clapp worked as a principal’s assistant in the district from July 1971 to July 2004. Each year, Clapp signed a new employment contract running from July 1 to June 30 of the next year. Among other things, these contracts governed Clapp’s compensation and “fringe benefits.” When Clapp started working for the district in 1971, she neither expected nor received pension or retirement benefits.

Although enrollment in the New Hampshire Retirement System (NHRS) is mandatory for teachers in this state, school districts may choose whether to enroll support staff. See RSA 100-A:3, 1(a) (Supp. 2008); RSA *208 100-A:20,1 (2001); cf. State Employees’ Ass’n of N.H. v. Belknap County, 122 N.H. 614, 619 (1982). Sometime in the 1980s, the district established a non-NHRS retirement saving plan, to which Clapp contributed through payroll deductions. In the late 1980s, a union started bargaining on behalf of the district’s support staff. Thereafter, Clapp’s employment contracts were subject to collective bargaining agreements between the union and the district.

In 1999, Clapp joined a committee to investigate the possibility of enrolling district support staff in the NHRS. Sometime before December 20, 1999, Clapp discovered that the district had voted on March 18, 1950 (the 1950 vote) to include support staff in the prior state retirement system (prior system). The prior system was established in 1945 and was the predecessor to the modern NHRS. See Petition of Goffstown Educ. Support Staff, 150 N.H. 795, 796 (2004). However, for reasons unknown, a participation date for enrollment in the prior system was never established. Id. at 797. Consequently, the district support staff were never enrolled. See id. at 801. The record does not indicate that the parties, or the NHRS, had any knowledge of the 1950 vote at the time Clapp discovered it. There is no indication that the 1950 vote was rescinded.

Enrollment in the NHRS is important to the district’s support staff because, in addition to prospective retirement benefits, enrollment allows employees to purchase retirement benefits credit for their years of prior service. RSA 100-A:3, VI (Supp. 2008); RSA 100-A:22 (Supp. 2008); see, e.g., McKenzie v. City of Berlin, 145 N.H. 467, 472 (2000). In some cases, the cost of prior service credit is split between employer and employee. RSA 100-A:3, VI(d)(l) (2001). In other cases, when an employer is “unable or unwilling to make [accrued liability] contributions,” employees may petition to purchase the credit themselves. RSA 100-A:22. Clapp and the union did not initially ask the district to pay for any retroactive credit. As stated in a January 2001 address to the district budget committee, “[a]t this time we [the union] are not asking for retroactive payments by the School district. We just want to be part of the NH Retirement System as of July 1, 2001.” On March 13, 2001, the district voted to enroll all support staff employees in the NHRS (the 2001 vote) pursuant to RSA 100-A:20. Goffstown, 150 N.H. at 796. The district set July 1,2001, as the effective participation date. Id.

After the 2001 vote, the committee that Clapp joined began researching the circumstances of the 1950 vote and did seek prior service credit from the district, on the grounds that the 1950 vote entitled the employees to retirement benefits for each year that they worked after 1950. See id. at 797. The district refused, and the union petitioned the NHRS for assistance. The NHRS denied the union’s request because the NHRS had no *209 record of the 1950 vote, no participation date was ever set, and thus the union employees had not become eligible for NHRS membership until July 1, 2001. Id. The Board of Trustees (board) of the NHRS upheld the decision, and the union petitioned this court for review. Id. at 798.

We affirmed the board’s ruling, holding that the employer oversight provision, RSA 100-A:3, VI(d) (2001), did not apply to the union and thus did not entitle the employees to retroactive credit. Id. at 800-01. Although the district could not be forced to pay for the credit, we pointed out that employees could purchase the credit themselves under RSA 100-A:22 (2001) (amended 2002,2004,2006) or ask their employer to purchase it. Id. at 803. We also held that the board’s decision did not deprive the employees of their constitutional right to a remedy. Id. In the course of rejecting the argument that Part I, Article 14 of the State Constitution rendered RSA chapter 100-A infirm, we said that, “[although the support staff have no remedy under the employer oversight provision, they may have equitable remedies against the school district for failing to notify the NHRS of the 1950 vote.” Id. (emphasis added).

Clapp subsequently purchased twenty-eight years of prior service credit and sought reimbursement from the district for half of the cost. The district refused. Clapp then brought this suit seeking declaratory judgment and recovery under theories of negligence and unjust enrichment. Clapp specifically sought the full cost of the credit she purchased plus attorney’s fees. The trial court denied Clapp’s petitions for declaratory judgment, negligence, and attorney’s fees, and declined to address whether the district had a duty to inform the NHRS of the 1950 vote. The trial court granted Clapp’s petition for unjust enrichment on the theory that the district retained funds it previously voted to spend on behalf of the support staff.

The district appeals the trial court’s ruling that it was unjustly enriched, arguing that: (1) it made no contributions to the NHRS for any employee before July 1, 2001; (2) there was insufficient evidence of any wrongdoing on its part; (3) Clapp was paid all she was contractually entitled to receive; and (4) the trial court failed to address whether the district received a benefit that it would be unconscionable for it to retain. Clapp did not cross-appeal any decision of the trial court, and now argues that the trial court’s decision was within its “broad and flexible equitable powers” because “[t]he equities of this case plainly favor [her].”

We first address the proper standard of review. On appeal, the district argues that because the trial court did not conduct an evidentiary hearing, “[we] may review the matter without any deference to the trial court’s findings and rulings.” We disagree. The trial court has “broad and flexible *210 equitable powers which allow it to shape and adjust the precise relief to the requirements of the particular situation.” Claremont School Dist. v. Governor (Costs and Attorney’s Fees), 144 N.H. 590, 594 (1999) (quotation and ellipsis omitted).

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Cite This Page — Counsel Stack

Bluebook (online)
977 A.2d 1021, 159 N.H. 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/clapp-v-goffstown-school-district-nh-2009.