Dear v. Minneapolis Fire Department Relief Ass'n

481 N.W.2d 69
CourtCourt of Appeals of Minnesota
DecidedMarch 26, 1992
DocketCI-91-1377
StatusPublished
Cited by2 cases

This text of 481 N.W.2d 69 (Dear v. Minneapolis Fire Department Relief Ass'n) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dear v. Minneapolis Fire Department Relief Ass'n, 481 N.W.2d 69 (Mich. Ct. App. 1992).

Opinion

OPINION

CRIPPEN, Judge.

Relator Gladys Dear sought accumulated pension benefits from the Board of Trustees of the Minneapolis Fire Department Relief Association. She appeals the Board’s denial of these benefits, claiming that the Board identified no legal basis for its actions.

FACTS

In 1947, relator’s first husband, a firefighter with the Minneapolis Fire Department, died in an accident while on the job. Soon after his death, relator began receiving survivor’s benefits from respondent Minneapolis Fire Department Relief Association. Relator continued to receive benefits until July 24, 1965, when she married her second husband. Under the laws then in effect, relator’s benefits automatically terminated upon remarriage. Minn.Stat. § 69.48(2)(a) (1965). Her second husband died in 1971, and the laws then in effect did not contain a provision for a resumption of benefits upon the termination of a remarriage.

In 1975, the Association instituted a change in its bylaws which allowed remarried surviving spouses to resume receiving their survivor’s benefits in the event their remarriage terminated. 1 Relator was unaware of the change and did not seek a resumption of her benefits until 1990.

On May 25, 1990, after learning that she might again be eligible for her pension, *71 Dear contacted the Association to request resumption of her benefits. In July 1990, the Association’s Board of Trustees reinstated Dear’s survivor’s benefits, dating back to her application of May 1990.

In May 1991, Dear made a written request for a formal hearing on the issue of accumulated benefits for the period between 1975 and 1990. After a hearing in July 1991, the Board denied Dear’s request for accumulated benefits.

The Board proposes various justifications for the denial of accumulated benefits. First, the Board claims that Dear is not entitled to benefits because such an award would involve an impermissible retroactive application of the 1975 bylaw changes. Second, the Board claims Dear should be prevented from seeking accumulated benefits because she waited 15 years after the change before asking for benefits. Finally, the Board contends that even if Dear is entitled to receive accumulated benefits, she is not entitled to an award of interest.

ISSUES

1. Did the Board properly conclude that the statutory presumption against retroactive application barred extending benefits to Dear under the amended statute and bylaws?

2. Can the Board raise on appeal issues not found in the record to have been a basis for the Board’s decision?

3. Can Dear receive an award for interest on her claim for accumulated benefits?

ANALYSIS

Reviewing the Association’s actions is similar to reviewing an administrative agency. Nichols v. Borst, 439 N.W.2d 432, 433 (Minn.App.1989). Issues of law are reviewed de novo. Id. Claim determinations by the Association can only be reviewed for arbitrariness. In re Anderson’s Application for Disability Benefits, 468 N.W.2d 338, 340 (Minn.App.1991). However, pension statutes are liberally construed and applied to carry out their purposes. Donaldson v. Mankato Policemen’s Benefit Ass’n, 278 N.W.2d 533, 537 (Minn.1979).

1.

The Board does not question that relator would be an eligible surviving spouse but for her remarriage in 1965. In addition, both parties agree that when relator’s second husband died, she was not entitled to a resumption of her survivor’s benefits. The Board contends, however, that because she was no longer eligible for benefits as of 1965 and because her remarriage terminated in 1971, the changes in eligibility enacted in 1975 had no effect on Dear’s legal right to a pension. The Board argues that eligibility for benefits was fixed when relator was widowed in 1947 and therefore she is not covered by the 1975 change. According to the Board, their July 1990 decision extending continuing benefits to Dear was an “act of grace.” The Board contends that applying the 1975 changes to relator’s situation would invoke a retroactive application of the law that was never intended or desirable.

Relator contends that she was among the class benefitted by the 1975 statutory and bylaw changes. She argues that the statute’s proper interpretation allows any previously eligible surviving spouse to become eligible for pension reinstatement once the remarriage terminates. This contention has merit.

The legislature has created a presumption against giving statutes retroactive effect. Minn.Stat. § 645.21 (1990); Chapman v. Davis, 233 Minn. 62, 45 N.W.2d 822 (1951); see In re Estate of Breole, 298 Minn. 116, 212 N.W.2d 894 (1973) (court did not allow person to benefit from change in paternity statute regarding inheritance even though person was clearly entitled under new law); Spurck v. Civil Service Bd., 231 Minn. 183, 42 N.W.2d 720 (1950) (if amendment of statute is so extensive as to affect substantive rights, then statute will not be retroactively applied). However, we conclude that the statute must be applied to benefit relator.

In determining whether a case is governed by the presumption against retro *72 active application of a statute, the court looks for legislative intent. Brugger v. Brugger, 303 Minn. 488, 495-96, 229 N.W.2d 131, 136 (1975). The Brugger court added:

There are a number of guidelines in general use by courts which are aids in arriving at the legislative intent. Courts frequently consider the consequences of a proposed interpretation. It is presumed that undesirable consequences are not intended. Another rule is that statutes should be interpreted in favor of a just or fair interpretation and one that would promote and effectuate justice.

Id. (footnotes omitted). An award of accumulated benefits to relator is clearly the result intended by the legislature. The statute expressly provided benefits for widows whose remarriages ended. No limitations were stated with regard to when the original eligibility began. We find no other reasonable result than the conclusion that Dear was in the class of persons whom the legislature intended to benefit through the 1975 change.

Equally as important, it is evident here that application of the statute to relator does not actually involve any retroactive effect. The 1975 statute benefits, without limitation, surviving spouses of firefighters. Unlike Spurck and Breóle,

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Cite This Page — Counsel Stack

Bluebook (online)
481 N.W.2d 69, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dear-v-minneapolis-fire-department-relief-assn-minnctapp-1992.