Fishbein v. State ex rel. Louisiana State University Health Sciences Center

898 So. 2d 1260, 2005 La. LEXIS 940, 2005 WL 832400
CourtSupreme Court of Louisiana
DecidedApril 12, 2005
DocketNo. 2004-C-2482
StatusPublished
Cited by52 cases

This text of 898 So. 2d 1260 (Fishbein v. State ex rel. Louisiana State University Health Sciences Center) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fishbein v. State ex rel. Louisiana State University Health Sciences Center, 898 So. 2d 1260, 2005 La. LEXIS 940, 2005 WL 832400 (La. 2005).

Opinions

L KIMBALL, Justice.

Plaintiff, a member of the Teachers’ Retirement System of Louisiana (“TRSL”), filed suit shortly before she retired against her employer and TRSL seeking a declaration that “all earnable compensation” paid to her “be found to be part of her average monthly compensation for purposes of retirement and DROP benefits along with the average base salary.” Plaintiff also sought, subsequent to the requested declaration, the issuance of a writ of mandamus ordering that her average earnable compensation be certified to include both her base salary and her supplemental salary, that her employer fund her retirement account in the appropriate amount, and that her employer authorize the correction and payment of any benefits due and owing based on her total salary. Defendants responded with an exception of prescription. For the reasons that follow, we conclude that plaintiffs suit is one for the recovery of compensation for services rendered and, as such, is subject to the three-year prescriptive period provided in La. C.C. art. 3494. Thus, when plaintiff 1 ¡Tiled suit on August 7, 2000, any claims she had for recovery of compensation for services rendered prior to August 7, 1997, were prescribed. Her suit, however, was timely filed with respect to those claims for recovery of compensation for services rendered that accrued between August 7, 1997, and July 1, 1998. As to those claims that have not prescribed, we find that plaintiffs supplemental salary should have been included as part of her earnable compensation as defined in La. R.S. 11:701(10).

Facts and Procedural History

Dr. Judith Fishbein (“plaintiff’), a pediatrician specializing in neonatology, was employed by the Louisiana State University Health Sciences Center or its predecessor (“LSU”) from 1970 until she retired on April 15, 2001. At the beginning of her career at LSU, plaintiff was an instructor of pediatrics at Earl K. Long Medical Center in Baton Rouge. Plaintiff explained at trial that as a member of the pediatric department, she had “major teaching responsibilities for medical students, residents, and others.” She further described her duties as being “responsible for the care of patients that were at Earl K. Long Hospital, and also [having] some administrative responsibilities which changed over the years.” Plaintiff served as chief of pediatrics for approximately nine years. During her employment with LSU, plaintiff was an untenured faculty member and, as such, could have been terminated without cause upon one year’s notice by LSU.

[1263]*1263Plaintiff earned a salary for the work she performed for LSU that was not contingent on the number of patients she treated. Initially, plaintiffs gross salary consisted solely of a “base salary.” Beginning in 1980, plaintiff began receiving a “supplemental salary” in addition to her base salary. The combination of her base salary and her supplemental salary comprised her total gross salary, with her supplemental salary equaling more than fifty percent of her gross salary in some I «years.

In 1979, plaintiff became a member of TRSL. It is undisputed that LSU did not report plaintiffs total gross salary to TRSL, but reported only her base salary. Similarly, both LSU and plaintiff made retirement contributions to TRSL based only upon plaintiffs base salary. At no time was plaintiffs supplemental salary subjected to employee withholdings for retirement purposes or to the employer’s share of retirement contributions on her behalf.1

Plaintiff received annual statements from TRSL that showed her retirement contributions were being made only on her base salary and not on her supplemental salary. Plaintiff testified that at least by 1989 she knew that only her base salary was being used as the basis for LSU retirement contributions made to TRSL on her behalf. When plaintiff questioned LSU personnel about this practice, she was told, “This is how we do it.” Plaintiff testified that she never raised the issue with TRSL because she was told it was an LSU issue.

On July 1, 1998, plaintiff entered the Deferred Retirement Option Plan (“DROP”), at which time her average compensation and creditable service were fixed. TRSL did not consider plaintiffs supplemental salary in fixing her benefits. On May 8, 2000, plaintiffs attorneys sent a letter to LSU and TRSL requesting that plaintiffs retirement benefit be adjusted to reflect her total compensation, including her supplemental salary.

On August 7, 2000, plaintiff filed a petition against LSU and TRSL for declaratory judgment and writ of mandamus, requesting a declaration that “all earnable compensation” paid to her “be found to be part of her average monthly | compensation for purposes of retirement and DROP benefits along with the average base salary.” Plaintiff then sought, subsequent to the requested declaration, the issuance of a writ of mandamus ordering that her average earnable compensation be certified to include both her base salary and her supplemental salary, that LSU fund her retirement account in the appropriate amount, and that LSU authorize the correction and payment of any benefits due and owing based on her total salary. Defendants answered the petition, generally denying the requested relief and pleading the dilatory exception of prematurity, the declinatory exception of lack of subject matter jurisdiction, and the peremptory exceptions of prescription, no cause of action, and no right of action. Defendants further pleaded the affirmative defense of estoppel. These exceptions were not disposed of prior to trial and were deferred to the merits of the case.

Prior to trial, the parties entered into several stipulations, including the following: (1) LSU has never reported to TRSL the total gross salary of Judith Fishbein, M.D.; rather, LSU has only reported to TRSL what LSU characterized as Dr. Fishbein’s “base pay” or “base salary;” (2) LSU did not deduct the employee contrí-[1264]*1264bution for retirement on the total gross salary of Judith Fishbein, M.D., but rather only deducted and paid to TRSL the employee contribution on what it characterized as Dr. Fishbein’s “base pay” or “base salary;” (3) LSU never paid TRSL the required employer’s share on the total gross salary of Judith Fishbein, M.D., but only paid the employer’s share on what it characterized as Dr. Fishbein’s “base pay” or “base salary;” (4) LSU paid Judith Fishbein, M.D., an average of $17,916.05 per month during her highest thirty-six month period prior to her entering DROP; (5) Judith Fishbein, M.D., received only one pay check per month as an employee of LSU, which represented compensation for the work she performed as an | semployee of LSU.

After trial on the merits, the district court rendered judgment dismissing plaintiffs suit with prejudice and at her costs based on grounds that her claim had prescribed. In its written reasons for judgment, the district court stated:

Applying the law to the facts of this case, the court rules as follows: This court rules that the equitable doctrine of estoppel by laches is applicable to the claim of Dr. Fishbein. The court rules that under the doctrine of laches, she had a claim for those wages for a three year period preceding July 1,1998, when she entered the DROP program. (La. C.C. art. 3494). Since Dr. Fishbein was participating in the DROP program administered by the Teachers’ Retirement System, LSU no longer had an obligation to contribute to the retirement system on her behalf. (La. R.S. 11:787 B). Consequently, her claim has prescribed because suit was not filed timely.

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Cite This Page — Counsel Stack

Bluebook (online)
898 So. 2d 1260, 2005 La. LEXIS 940, 2005 WL 832400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fishbein-v-state-ex-rel-louisiana-state-university-health-sciences-center-la-2005.