D & M HEALTHCARE, INC. v. Kernan

800 N.E.2d 898, 2003 Ind. LEXIS 1101, 2003 WL 22962059
CourtIndiana Supreme Court
DecidedDecember 17, 2003
Docket49S05-0310-CV-437
StatusPublished
Cited by23 cases

This text of 800 N.E.2d 898 (D & M HEALTHCARE, INC. v. Kernan) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
D & M HEALTHCARE, INC. v. Kernan, 800 N.E.2d 898, 2003 Ind. LEXIS 1101, 2003 WL 22962059 (Ind. 2003).

Opinions

BOEHM, Justice.

House Enrolled Act 1866 as passed by the 2001 General Assembly would prohibit the Family and Social Services Administration ("FSSA") from adopting rules that would reduce reimbursements to nursing facilities. The bill was passed by both houses but the Governor vetoed it and delivered the bill back to the House after the legislative session had adjourned. The Plaintiffs are several nursing home facilities who seek a declaratory judgment that House Enrolled Act 1866 became law despite the Governor's veto. The Plaintiffs claim that the Governor's veto, subsequently sustained by a vote of 85-1, was ineffective because the Governor's veto message was delivered six months before the Indiana Constitution calls for it to be returned to the legislature. The trial court entered a judgment in favor of the Defendants but the Court of Appeals reversed, agreeing with the Plaintiffs that the Governor's attempted veto did not prevent the bill from becoming law. This Court granted transfer.

For the reasons explained in Part II, we conclude there was no violation of the constitution. But the short answer to the Plaintiffs' claim is set forth in Part I. In summary, if there is any irregularity, it is [899]*899not a matter the courts have any business entertaining because any departure from prescribed procedure was wholly trivial and provides no basis to invalidate the Governor's veto.

Why We Are Not Recusing

The parties cite a number of bills over the past twenty years that, like the bill involved in this case, were also vetoed and returned by Governors Orr, Bayh, and O'Bannon before the next legislative session. Among these is a bill providing a raise in pay for all state judges and legislators.1 The issue presented in this case is therefore of intense interest to both judges and legislators.

This important legislation was long overdue. Unlike many government employees, legislators, judges, and elected executive officers receive no annual salary review. Even if the veto had been overridden, judicial and legislative salaries would not have kept up with inflation since the last pay adjustment. The State has failed to address judicial pay since 1995, with the last adjustment in 1997. This is particularly egregious because judges participate in the state medical plan and bear the costs shifted by the State to its employees in recent years, but do not receive the compensating allowance given to executive branch employees. As a result, judges have not only seen declines since 1995 in real income measured by cost of living, and they now have their net dollars reduced as well. Legislators have other employment and executive officers typically serve for a period of time and return to the private sector. Most judges, on the other hand, are full-time career government employees. Many are principal breadwinners and are dependent on their salaries to provide for their families and educate their children.

Acting in our capacity as leaders of the judicial branch, members of this Court have attempted to persuade the legislature that it should frequently revise judicial pay. Indeed, we have specifically contended that the State should place legislative, executive, and judicial salaries on a regular system of review to reflect inflation without the large, irregular, and sometimes long-delayed increases generated by sporadic individual legislation. We have also argued to both executive and legislative officers that failure to have predictable, modest pay adjustments costs the State substantially in financial terms through high turnover and early retirement and also in efficiency through loss of morale. We even spoke directly to Governor O'Bannon in favor of the 2001 legislative and judicial pay bill. Therefore, although we have expressed no view on the validity of the veto, we have expressed positions in public on the desirability of vetoed legislation that we assume would be affected by the ruling on this case.

~- Our personal financial interests and expressed views would normally preclude participation in this case. Yet we must address this claim because there is no one else to do it. United States v. Will, 449 U.S. 200, 211-16, 101 S.Ct. 471, 66 L.Ed.2d 392 (1980) (because every judge had an interest in the outcome of the case involving judicial salaries, the "Rule of Necessity" required that they not recuse themselves); Evans v. Gore, 253 U.S. 245, 246-48, 40 S.Ct. 550, 64 L.Ed. 887 (1920) (taxation of judicial salaries), overruled on other grounds, United States v. Hatter, 532 U.S. 557, 121 S.Ct 1782, 149 L.Ed.2d 820 (2001); Bd. of Trs. of Pub. Employees' Ret. Fund v. Hill, 472 N.E.2d 204, 206 (Ind.1985) (Judicial pension); Chairman of Bd. of Trs. of Employees' Ret. Sys. v. Waldron, 285 Md. 175, 401 A.2d 172, 173-75 (1979) [900]*900(judicial pension); Nellius v. Stiftel, 402 A.2d 359, 361-62 (Del.1978) (judicial salary); Schwab v. Ariyoshi, 57 Haw. 348, 555 P.2d 1329, 1331 (1976) (judicial salary). Despite our view that this legislation is important to the State, we cannot simply decree our own policies. Rather, we are obliged to address this claim, like any other, based on our best assessment of the applicable law. We conclude that we must sustain the Governor's veto. ‘

Factual Background

The relevant facts are few and simply stated. On April 29, 2001, the House passed House Enrolled Act 1866 in the form previously passed by the Senate after it was recommended by a Conference Committee composed of members of both houses. The General Assembly adjourned that day. The Clerk of the House of Representatives presented the bill to Governor O'Bannon on May 4, 2001. Seven days later, on May 11, the Governor vetoed and delivered the bill to the House. His veto and veto message were reported in the House and Senate Journals on that date. The House was not in session on May 11 and first reconvened on November 20, 2001, the "Organization Day" for the 2002 session. The initial meeting day of the 2002 session was January 7, 2002. On March 14, 2002, the House voted 85-1 to sustain the Governor's veto.

Article V, Section 14 of the Indiana Cén— stitution reads in relevant part:

(a) Every bill which shall have passed the General Assembly shall be presented to the Governor. The Governor shall have seven days after the day of presentment to act upon such bill as follows:
ook
(2) He may veto it:
ok
(D) In the event of a veto after final adjournment of a session of the General Assembly, such bill shall be returned by the Governor to the House in which it originated on the first day that the General Assembly is in session after such adjournment.... If such bill is not so returned, it shall be a law notwithstanding such veto.

Ind. Const. Art. V, § 14(a)(2)(D).

I. Plaintiffs Cite No Cognizable Harm

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D & M HEALTHCARE, INC. v. Kernan
800 N.E.2d 898 (Indiana Supreme Court, 2003)

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Bluebook (online)
800 N.E.2d 898, 2003 Ind. LEXIS 1101, 2003 WL 22962059, Counsel Stack Legal Research, https://law.counselstack.com/opinion/d-m-healthcare-inc-v-kernan-ind-2003.