Douglas Merino, Et Ux v. State Of Washington

Court of Appeals of Washington·Decided March 11, 2014·No. 43865-8·Published

Opinion

AILED

1 ri T OF AE' PEA S

0i \1ISIQi'a I

2014 MAR 1 I AN 8: 88 sT;

BY

IN THE COURT OF APPEALS OF THE STATE OF WASHING DIVISION II

DOUGLAS MERINO and KAY MERINO, No. 43865 -8 -II husband and wife, and the marital community composed thereof,

Appellants,

V.

THE STATE OF WASHINGTON and ITS PUBLISHED OPINION AGENCIES; THE WASHINGTON STATE DEPARTMENT OF RETIREMENT SYSTEMS; THE WASHINGTON STATE PATROL and JOHN R. BATISTE, Chief Thereof, and DAVID J. KARNITZ, Deputy Chief Thereof,

Merinos

HUNT, J. — Douglas and Kay appeal the- superior court' s denial of their motion

for summary judgment and granting of the State' s motion for summary judgment in their action for disability benefits against the Washington State Patrol ( WSP). Merino argues that

Washington law entitles him to disability compensation as long as he remains disabled from injuries incurred in the line of duty, even after WSP terminated his employment as a trooper for violating WSP regulations. Holding that under RCW 43. 43. 040, Merino' s disability benefits

s Although both Douglas Merino and his wife, Kay Merino, filed suit and appeal the superior court' s rulings, the issues relate solely from Douglas Merino' s employment.

vested when he became disabled in the line of duty and that he is entitled to continuing disability payments, we reverse the superior court' s summary judgment rulings and remand for entry of summary judgment in favor of Merino, reinstatement of his disability benefits, and calculation of attorney fees to which he is entitled under RCW 49.48. 030.

FACTS

I. BACKGROUND

A. WSP Disability Status

The parties agree on the facts. Douglas Merino joined the WSP in 1978 and served as a

fully commissioned trooper until October 11, 1988, when he suffered a herniated disc and

injuries to his left neck and left shoulder after being ejected from a patrol vehicle while on duty. As a result of these injuries, Merino was unable to meet the physical requirements for his WSP trooper position and went without pay from 1989 through 1991. On February 10, 1994, then -

Chief Roger Bruett placed Merino on full job- related disability status, for which he received

2

payments equal to one -half of his previous active -

status monthly salary. Sometime monthly

thereafter, Merino found employment as an investigator with the Department of Labor and Industries ( L &I).

2 The WSP' s disability system is divided into ( 1) active status, for WSP employees who perform duties for the WSP; and ( 2) inactive status, for WSP employees " who, while in the performance of their official duties ... have been ... injured or incapacitated to such an extent as to be mentally or physically incapable of active service." RCW 43. 43. 040( 1); see WAC 446 -40 -020. A WSP employee placed on disability status under RCW 43. 43. 040 continues as a WSP employee, but on inactive status; such employee receives monthly payments equal to one -half of his active status monthly salary. RCW 43. 43. 040( 2)( a). Merino was on inactive status from February 1994 until his WSP termination in August 2008.

On November 1, 1999, more than five years after becoming disabled, Merino received a certified letter that the WSP sent to all troopers on disability status at that time. This letter ( 1)

confirmed that Merino was an " employee on inactive status due to a disability," ( 2) informed

him that he must continue to comply with WSP regulations and policies, ( 3) required him to sign

and to return the letter, and ( 4) threatened potential loss of his disability payments if he did not do so. Clerk' s Papers ( CP) at 212. Merino promptly signed and returned the letter.

B. Insurance Fraud; WSP Termination

In 2005 and 2006, while still on WSP disability status, Merino became involved in an insurance fraud scheme: He attempted to defraud Farmers Insurance of $60, 000 and lied to

insurance investigators questioning this claim. On January 28, 2008, a jury convicted Merino of two felony counts of fraud based on this false insurance claim. Three days later, WSP received a letter from Merino asking to retire. On February 1, WSP advised Merino that he was not eligible to retire because he had not yet applied for active duty status.

Merino' s fraud involvement prompted WSP to investigate whether he had violated WSP regulations, and it charged him with several grounds for discipline. On June 2, 2008, WSP Chief John Batiste conducted a predetermination hearing to give Merino an opportunity to respond to WSP' s administrative disciplinary charges; Merino' s attorney was present, but Merino was not. On August 6, Chief Batiste found that Merino had violated WSP regulations and terminated him from WSP for violating WSP Rules of Conduct Regulation 8. 00. 010. As a result of Merino' s

3

employment termination, WSP terminated his disability payments.

3 On November 24, 2009, Merino withdrew all remaining funds from his WSP retirement account.

Il. PROCEDURE

4

Merino did not appeal Chief Batiste' s decision. On January 31, 2011, Merino sued the

State of Washington, the. Washington State Department of Retirement Systems, WSP, Chief

Batiste, and WSP Deputy Chief David Karnitz.5 Merino and the defendants filed cross -motions for summary judgment under CR 56. Merino argued. that WSP had wrongfully terminated his

because he disabled from injuries in the line of duty. The disability payments remained

defendants sought dismissal of all of Merino' s claims.

The superior court denied Merino' s summary judgment motion and granted summary judgment to WSP; ruling that RCW 43. 43. 040 entitled Merino to

a disability benefit so long as he was an officer of [the] WSP and not fit to return to activeduty. The fact that he committed a fraud and that fact that he was convicted of a crime did not affect his right to continued receipt of the disability payment; but when he was terminated from the WSP the right to the payment also terminated because he was no longer an officer.

6

CP at 308. Merino appeals.

ANALYSIS

Merino argues that ( 1) his WSP disability benefits vested when he was hired as a state patrol officer in 1978; ( 2) Washington law requires payment of disability benefits as long as his

disability exists and does not allow termination of these vested benefits, regardless of whether he was terminated from WSP for committing a felony; and ( 3) under Wash. Const. art. I, § 15, his

4 See RCW 43. 43. 100

5 At the time of this lawsuit, Merino was no longer employed by L &I. 6 summary judgment to WSP. Thus, this Merino appeals only the superior court' s grant of

appeal addresses only WSP' s liability, not the other defendants' liability.

disability compensation qualifies as an " estate," which cannot be forfeited based on a felony conviction. WSP counters that the superior court ruled properly on summary judgment because 1) Merino' s disability payments were compensation paid by his employer and, thus, were not vested benefits; and ( 2) the disability compensation that Merino received was specifically provided only to WSP officers, for which Merino no longer qualified when he was terminated 14170711111WAM

Merino' s first argument fails: His disability benefits did not vest when he was hired as a WSP trooper; rather, he was entitled to such benefits only if and when he became disabled in the

line the these benefits See RCW 43. 43. 040( 1); see also State ex of duty, point at which vested.

rel. Johnson v. Funkhouser, 52 Wn.2d 370, 373, 325 P. 2d 297 ( 1958). We agree with Merino' s

second argument; and, therefore, we do not reach his third, constitutional argument. We hold

that the legislature enacted RCW 43. 43. 040 to provide disability benefits to WSP officers that vested upon injury in the line of duty; Merino' s WSP disability benefits vested when he was injured in the line of duty; and, therefore, they are a vested statutory benefit that continues as long as he remains disabled, including after his termination from WSP.

I. STANDARDS OF REVIEW

Free access — add to your briefcase to read the full text and ask questions with AI

Douglas Merino, Et Ux v. State Of Washington, (Wash. Ct. App. 2014).

Douglas Merino, Et Ux v. State Of Washington (Douglas Merino, Et Ux v. State Of Washington) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bakenhus v. City of Seattle
296 P.2d 536 (Washington Supreme Court, 1956)
Newlun v. Department of Retirement Systems
770 P.2d 1071 (Court of Appeals of Washington, 1989)
Cowiche Canyon Conservancy v. Bosley
828 P.2d 549 (Washington Supreme Court, 1992)
Hanson v. City of Seattle
493 P.2d 775 (Washington Supreme Court, 1972)
Teamsters, Local 117 v. Northwest Beverages, Inc.
976 P.2d 1262 (Court of Appeals of Washington, 1999)
Gaglidari v. Denny's Restaurants, Inc.
815 P.2d 1362 (Washington Supreme Court, 1991)
Lacey Nursing Center, Inc. v. Department of Revenue
905 P.2d 338 (Washington Supreme Court, 1995)
Callecod v. Washington State Patrol
929 P.2d 510 (Court of Appeals of Washington, 1997)
Helgeson v. City of Marysville
881 P.2d 1042 (Court of Appeals of Washington, 1994)
HANSON INDUSTRIES INC. v. Kutschkau
239 P.3d 367 (Court of Appeals of Washington, 2010)
Miller v. City of Wilmington
285 A.2d 443 (Court of Chancery of Delaware, 1971)
City of Wilmington v. Miller
293 A.2d 574 (Supreme Court of Delaware, 1972)
Navlet v. Port of Seattle
194 P.3d 221 (Washington Supreme Court, 2008)
Briggs v. Nova Services
213 P.3d 910 (Washington Supreme Court, 2009)
Harris v. Department of Labor & Industries
843 P.2d 1056 (Washington Supreme Court, 1993)
State Ex Rel. Johnson v. Funkhouser
325 P.2d 297 (Washington Supreme Court, 1958)
City of Sequim v. Malkasian
138 P.3d 943 (Washington Supreme Court, 2006)
Andersen v. King County
138 P.3d 963 (Washington Supreme Court, 2006)
Bates v. City of Richland
51 P.3d 816 (Court of Appeals of Washington, 2002)
City of Sequim v. Malkasian
157 Wash. 2d 251 (Washington Supreme Court, 2006)