Gerken v. Sherman

351 S.W.3d 1, 2011 Mo. App. LEXIS 880, 2011 WL 2534145
CourtMissouri Court of Appeals
DecidedJune 28, 2011
DocketWD 72601
StatusPublished
Cited by17 cases

This text of 351 S.W.3d 1 (Gerken v. Sherman) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gerken v. Sherman, 351 S.W.3d 1, 2011 Mo. App. LEXIS 880, 2011 WL 2534145 (Mo. Ct. App. 2011).

Opinion

THOMAS H. NEWTON, Judge.

The Missouri Family Support Division 1 and the Director of the Department of Social Services (collectively “Division”) appeal from the trial court’s judgment in favor of a class composed of pensioners of Missouri’s blind pension fund (Pensioners). They contend the trial court erred in its rulings as to the statute of limitations and its awards of damages, prejudgment interest, and attorney’s fees. We affirm in part, reverse in part, and remand.

Factual and Procedural Background

The Missouri Constitution requires the General Assembly to levy an annual property tax for the blind pension fund in order to pay pensions to “the deserving blind.” Mo. Const, art. Ill, § 38(b); 2 Gerken v. Sherman, 276 S.W.3d 844, 846 (Mo.App.W.D.2009) (Gerken I). On February 16, 2006, Pensioners sought, inter alia, a declaratory judgment that the pension amounts were improperly calculated, and requested an accounting of the fund. See Gerken I, 276 S.W.3d at 847. 3 They contended that pursuant to subsection 209.040.4, which sets out the formula for calculating increases to the pensions, (1) monthly pensions to the blind should have been higher before fiscal year 1999 and (2) the Division incorrectly calculated increases after fiscal year 1999. The parties filed a joint stipulation of facts and exhibits relevant to the claims. The trial court denied Pensioners’ requests, and Pensioners appealed. Id.

In Gerken I, we affirmed the trial court in part, reversed in part, and remanded. 4 Id. We determined that the Division’s method of calculation was incorrect be *5 cause, contrary to the relevant statutes and the Missouri constitution, the Division erroneously tied increases in pension payments to growth in the fund’s balance (the balance method) rather than growth in the fund’s revenue (the revenue method). Id. at 852. Consequently, we reversed the trial court’s finding that the Division’s methodology was correct. Id. at 856. We further found that the trial court had erred in finding that the three-year statute of limitations in section 516.130 applied to Pensioners’ claims and reversed that determination. Id. at 855. We remanded for the circuit court to determine if Pensioners had proven the elements for an accounting, to order an accounting if such was the case, and to “reissue a judgment in accord with [our] opinion concerning those issues.” Id. at 855-56. We otherwise affirmed the judgment. Id. at 856.

On remand, the trial court denied the Division’s request to apply a five-year statute of limitations and ordered an accounting. It suggested the appointment of Dr. James LePage as the special master for the accounting. The Division and Pensioners consented to Dr. LePage’s appointment, although the Division objected to the need for an accounting. Dr. LePage prepared a report calculating a historic underpayment of $23.6 million, which the Division raised issues with during a hearing on December 17, 2009. Dr. LePage submitted a revised report to the court on March 20, 2010; it calculated the aggregate amount of underpayment to the Pensioners from 1992 to 2009 to be $18,832,188. A hearing was held to receive the report on March 22, 2010.

On March 31, 2010, the trial court adopted Dr. LePage’s findings and conclusions as its own accounting and entered an aggregate judgment for $18,832,188 as actual damages “representing the total of the historic underpayment of Blind Pension benefits due Plaintiff Class for the years 1992 through the present.” 5 The trial court further found that Pensioners’ class was entitled to prejudgment interest in the amount of $11,297,500, pursuant to section 408.020. It ruled that individual pensioners were “entitled to their portion of the unpaid benefits and interest depending on the number of months, and which months, they were underpaid benefits” and ordered the Division to immediately calculate and pay the damages due to each class member. It further awarded twenty-five percent of the common fund, $7,532,422, as attorneys’ fees, and ordered the parties to submit either a stipulated claims process or separate proposed claims processes if no stipulation could be reached. It then denominated its findings and orders as a judgment “final for the purposes of appeal under Missouri Rule 74.01(b).” The Division moved to stay judgment pending appeal, which the trial court granted. The Division appeals, raising five points.

Standard of Review

We review a court-tried case under the standard articulated in Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). Midwest Div.-OPRMC, LLC v. Dep’t of Soc. Servs., Div. of Med. Servs., 241 S.W.3d 371, 376-77 (Mo.App. W.D.2007). We affirm the trial court’s decision unless it lacks substantial evidence to support it, it is against the weight of the evidence, or it erroneously declares or applies the law. Murphy, 536 S.W.2d at 32. Where the facts before the court are stipulated, our concern is whether the trial court drew the correct legal conclusions from the facts. Midwest Div.-OPRMC, 241 S.W.3d at 377. Despite the stipulation, we view all evidence and inferences in favor of the pre *6 vailing party and disregard contrary evidence. Id. Questions of law we review de novo. Id.

Legal Analysis

Scope of Authority to Consider Five-Year Statute of Limitations

In its first point, the Division argues the trial court erred in concluding it was without authority to apply the five-year statute of limitations period in section 516.120(2) because of our mandate in Gerken I. The Division asserted the five-year limitation within section 516.120 in its answer. However, because the trial court determined the three-year limitations period of section 516.130 applied in Gerken I, it did not address the Division’s affirmative defense of section 516.Í20.

In Gerken I, we held that the three-year statute of limitations in section 516.130 6 was not applicable to plaintiffs claim because the “gravamen” of the complaint showed that their suit concerned actions taken by the Division, not the Director in his official capacity. 276 S.W.3d at 854-55. We did not address the applicability of section 516.120, as it was not at issue.

In its judgment in the present case, the trial court determined that it could not consider the Division’s continued statute of limitations argument under 516.120(2) because it had jurisdiction only to address the issues in our mandate. The Division argues that because

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

Related

City of North Kansas City v. Archer Daniels Midland Company
575 S.W.3d 270 (Missouri Court of Appeals, 2019)
Eckel v. Eckel
540 S.W.3d 476 (Missouri Court of Appeals, 2018)
Roy Lee Wells, Jr. v. State
Court of Appeals of Texas, 2017
State of Missouri v. Eria Doss
503 S.W.3d 290 (Missouri Court of Appeals, 2016)
Theodore M. Barden v. Jill L. Barden
492 S.W.3d 641 (Missouri Court of Appeals, 2016)
Misael D. Portillocoreas v. State
Court of Appeals of Texas, 2016
Linda Gerken v. Gary Sherman
484 S.W.3d 95 (Missouri Court of Appeals, 2015)
Developers Surety and Indemnity Company v. Woods of Somerset, LLC.
455 S.W.3d 487 (Missouri Court of Appeals, 2015)
Nance v. Maxon Electric, Inc.
425 S.W.3d 926 (Missouri Court of Appeals, 2014)
Welman v. Parker
391 S.W.3d 477 (Missouri Court of Appeals, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
351 S.W.3d 1, 2011 Mo. App. LEXIS 880, 2011 WL 2534145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gerken-v-sherman-moctapp-2011.