Cleland v. Corrections Officer Retirement Plan

818 P.2d 237, 169 Ariz. 252, 96 Ariz. Adv. Rep. 148, 1991 Ariz. App. LEXIS 262, 1991 WL 192221
Court of Appeals of Arizona·Decided September 24, 1991·No. No. 2 CA-CV 91-0090·Published·Cited by 1 cases

Opinion

OPINION

LACAGNINA, Presiding Judge.

In this appeal from the judgment of the superior court, Scott J. Cleland argues that the Corrections Officer Retirement Plan (the Fund) and its manager abused their discretion by failing to properly weigh evidence of his accidental disability and that its definition of “gainful employment” violates A.R.S. § 38-881. We disagree and affirm.

FACTS AND PROCEDURAL HISTORY

On January 30, 1989, Cleland submitted an application for an accidental disability pension, alleging that he had reinjured his knee while working at Fort Grant as a prison guard. Cleland stated in his application that he had had problems with his knee since 1984. He began working for the Department of Corrections in 1985. He also stated that he was not qualified for any other job with the state.

[254] Cleland had four administrative hearings and two superior court hearings beginning on April 28, 1989, and ending with the superior court judgment of February 7, 1991, denying his application for disability benefits from the Fund. The Fund Manager consists of five members selected from the community who serve for nominal pay. It has statutory authority to evaluate Fund members regarding their qualifications for accidental disability retirement. A.R.S. § 38-886(A)(3).1 After receiving evidence at the hearings and following remand from the first superior court hearing, the Fund Manager determined that medical testimony demonstrated Cleland’s December 29, 1987 injury did not prevent him from engaging in “any gainful employment” and that his disabling condition was not the “direct and proximate” result of his employment as a prison guard.

On review of the denial of benefits by the Fund, the superior court found that the decision was based upon a consideration of all the evidence presented; that the deliberations were open to the public and that Cleland’s departure from the hearing while deliberations were in progress was a voluntary act; that the Fund Manager’s interpretations of “any gainful employment” was within its discretion and that there was sufficient evidence in the record to support the denial of benefits.

SUFFICIENCY OF EVIDENCE

We affirm the superior court’s judgment because the record shows the existence of substantial evidence to support the administrative ruling. Petras v. Arizona Liquor Board, 129 Ariz. 449, 631 P.2d 1107 (App.1981). The testimony of medical experts and a rehabilitation specialist, although contradicted in part by other testimony, is nevertheless sufficient to support the denial of benefits. Dr. Dasse believed that Cleland could perform a moderate amount of work with reasonable regularity and that the disabling knee condition was primarily the result of Cleland’s significant past history of knee injuries and surgeries rather than his employment as a prison guard. Ms. Lynch, a rehabilitation specialist, believed that Cleland was capable of working entry-level jobs that do not require a lot of reading or considerable physical strain. The Fund Manager properly rejected testimony indicating that Cleland qualified for social security benefits because the statutory tests for determining eligibility for social security disability are not the same. Substantial evidence exists when the record shows that the administrative agency adopted one of two inconsistent factual conclusions. Williams v. Tucson Unified School District, 158 Ariz. 32, 760 P.2d 1081 (App.1987); DeGroot v. Arizona Racing Commission, 141 Ariz. 331, 686 P.2d 1301 (App.1984).

STATUTORY CONSTRUCTION

A.R.S. § 38-881(1), as it existed when Cleland filed his application, defined “accidental disability” as

[A] physical or mental condition which the Fund Manager finds totally and permanently prevents a member from engaging in any gainful employment and which is the direct and proximate result of the member’s performance of his duty as an employee of an employer. A finding of accidental disability shall be based on medical evidence obtained by a medical doctor or clinic selected by the Fund Manager.

There is no statutory definition of “gainful employment.” During the proceedings on Cleland's application for benefits, the Fund Manager issued a memorandum defining the term “any gainful employment” as provided in A.R.S. § 38-881(1). It was defined as

[T]he capability of performing a moderate amount of work with reasonable regularity, or more specifically, at least four (4) hours of work four (4) days a week for which the claimant earns at least $300 monthly and/or the minimum hourly wage. “Gainful employment” is not [255] restricted to the type of work performed before impairment, nor is it limited to job opportunities actually available and/or located near the claimant’s home.

The Fund Manager’s definition is a reasonable interpretation of the statutory language. “Gainful employment” has not been restricted to the type of work a claimant performed before becoming impaired. Bailey v. Weinberger, 380 F.Supp. 863 (D.Kan.1974). Nor does the retirement plan in this case restrict “gainful employment” to job opportunities actually available and/or located near the claimant’s home. In any event, if not in line with the legislative intent, the definition can be corrected by the legislature. The judgment of this court should not be substituted for the reasoned attempt to define a statutory term by the administrative agency charged with the responsibility for determining eligibility for disability retirement.

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Cleland v. Corrections Officer Retirement Plan, 818 P.2d 237, 169 Ariz. 252, 96 Ariz. Adv. Rep. 148, 1991 Ariz. App. LEXIS 262, 1991 WL 192221 (Ark. Ct. App. 1991).

818 P.2d 237 (Cleland v. Corrections Officer Retirement Plan) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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