Coutee v. Municipal Police Employees' Retirement System

921 So. 2d 1147, 2006 La. App. LEXIS 136, 2006 WL 231492
CourtLouisiana Court of Appeal
DecidedFebruary 1, 2006
DocketNo. 05-752
StatusPublished

This text of 921 So. 2d 1147 (Coutee v. Municipal Police Employees' Retirement System) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coutee v. Municipal Police Employees' Retirement System, 921 So. 2d 1147, 2006 La. App. LEXIS 136, 2006 WL 231492 (La. Ct. App. 2006).

Opinion

SULLIVAN, Judge.

h Plaintiffs are retirees from the police force of the City of Alexandria (the City).1 They sued the City and the Municipal Police Employees’ Retirement System [1149]*1149(MPERS), seeking a money judgment and other relief to recover losses in retirement benefits allegedly caused by the 1983 merger of the City’s police force with MPERS. The trial court granted summary judgment in favor of the City, dismissing all claims against it, then denied Plaintiffs’ motion for a new trial. While the motion for a new trial was pending, Plaintiffs sought leave to amend their petition to add another Plaintiff,2 to add as a Defendant the Police Pension and Relief Fund of the City (the Relief Fund), and to assert additional claims against the City and MPERS. The trial court denied this motion as moot based upon its ruling on summary judgment. ■

On appeal, Plaintiffs argue that the trial court erred (1) in denying as moot their motion to amend, (2) in granting the City’s motion for summary judgment, and (3) in denying their motion for a new trial. Because the merits of the first assignment of error may depend upon the resolution of the second and third assignments, we will discuss the latter two first.

Factual and Procedural Background

Prior to the legislative establishment of MPERS by 1973 La. Acts No. 189, the Relief Fund administered the City’s police retirement plan pursuant to 1914 La. Acts No. 290. Upon the creation of MPERS, all full-time officers joining the police force after July 1, 1973 were required to become members of MPERS, but full-time officers | ¡.employed before that date were given the choice of remaining with the Relief Fund or transferring into MPERS. The two retirement systems, however, had different rules governing the eligibility for retirement and the calculation of retirement, disability, and survivor benefits. Significantly, the Relief Fund authorized retirement upon twenty years of service at any age, whereas MPERS required twenty-five years of service to retire at any age, with only those reaching age fifty being eligible to retire after twenty years. Differences in the calculation of benefits also resulted in the Relief Fund offering a higher retirement benefit.

By 1982 La. Acts No. 585, the legislature amended La.R.S. 11:3501(D) to require municipalities with a Relief Fund to merge its active members with MPERS, including those who had previously elected to remain with the Relief Fund. Under La’R.S. 11:3501(D)(1), “Any municipality which has a police retirement plan established under R.S. 11:3501 et seq. shall merge' its active members into the Municipal Police Employees’ Retirement System, and such merger shall be binding on all parties.” Addressing one difference in the retirement systems, La.R.S. 11:3501(D)(1) (emphasis added) continues:

The municipalities which provide retirement with sixteen, twenty, or twenty-five years of service credit at any age shall guarantee and pay its regular retirement benefits to any employee who takes a deferred retirement with sixteen, twenty, or twenty-five years of service credit prior to reaching age fifty or fifty-five until the retiree reaches the age of fifty or fifty-five and is eligible to receive a benefit from the Municipal Police Employees’ Retirement System. The municipality paying the benefit shall, in computing said benefit, use the salary and all years of service credit that would have been used had no merger taken place....

Thus, under this statute,-the City was required to pay the full retirement benefit as calculated by the Relief Fund to any fund member who retired with twenty years 13of service, but only until that member reached fifty years of age and was eligible to receive a benefit from MPERS.

[1150]*1150Plaintiffs are former officers who retired prior to age fifty with twenty years of service. The City paid them retirement benefits calculated at the Relief Fund rate until they reached fifty years of age, at which time they began receiving retirement benefits from MPERS, but at a lower rate than that paid by the City.

Plaintiffs filed suit on July 3, 2002, alleging that the merger divested them of vested rights, that the City and MPERS breached implied or express “ho loss” agreements that Plaintiffs relied upon to their detriment, that the City and MPERS failed to explain or misrepresented the nature of the legislative scheme, and that the City either lost or suppressed information regarding the alleged “no loss” agreements. More specifically, Plaintiffs alleged that, before the 1983 merger, civil service employees and other police officials represented to them that “no harm” would occur as a result of the merger or that any loss would be temporary and made up in the first year and that the City would make up the difference if any harm did befall potential retirees. Plaintiffs also pointed to a letter written in 2001 by the City’s mayor at that time, Edward Randolph, who expressed his understanding that the officers in the City’s retirement system were to be merged into MPERS “without any loss of benefit.”3

' In its answer, the City denied that it ever made a “no loss” guarantee and alleged the absence of any City ordinance authorizing a contract for the payment of benefits beyond those required by statute. The City further pointed out that the 1¿merger was the result of legislative mandate; therefore, any loss of benefits to which Plaintiffs had a vested right would be owed by the State through MPERS.

In granting summary judgment for the City, the trial court first rejected Plaintiffs’ claim that the merger acted to deprive them of vested rights, as no Plaintiff had reached the age of retirement at that time. The trial court then concluded there was no genuine issue of material fact that Plaintiffs would not prevail on a breach of contract claim, given the absence of proof as to an ordinance confirming a “no loss” guarantee or as to representations made by anyone with authority to bind the City in the absence of such an ordinance. In response to Plaintiffs’ motion for a new trial, the trial court issued a second opinion rejecting Plaintiffs’ argument that the Relief Fund’s Board of Trustees (the Board) had authority to bind the City under facts of this case. Specifically, the trial court found that, even if the Board issued a “no loss” guarantee, such an action would exceed its legislative authority because it would have required the City to pay funds that it did not statutorily owe. For this reason, the trial court also rejected Plaintiffs’ claims of spoliation, believing that the City could not be bound by such action without the adoption of an ordinance.

Discussion

Appellate courts review summary judgments de novo under the same criteria that govern the trial court’s consideration of whether a summary judgment is appropriate. Schroeder v. Bd. of Sup’rs of La. State Univ., 591 So.2d 342 (La.1991). The mover is entitled to judgment if the pleadings, depositions, answers to interrogatories, and admissions on file, together with supporting affidavits, if any, show there is no genuine issue of material fact and the mover is entitled to judgment as a matter of law. La.Code Civ.P. art. 966(B). Additionally, summary judgment [ ^procedure is [1151]*1151favored and shall be construed “to secure the just, speedy, and inexpensive determination of every action.” La.Code Civ.P. art. 966(A)(2).

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921 So. 2d 1147, 2006 La. App. LEXIS 136, 2006 WL 231492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coutee-v-municipal-police-employees-retirement-system-lactapp-2006.