Greene v. Jefferson County Commission

13 So. 3d 901, 2008 Ala. LEXIS 236, 2008 WL 4892051
CourtSupreme Court of Alabama
DecidedNovember 14, 2008
Docket1070300
StatusPublished
Cited by16 cases

This text of 13 So. 3d 901 (Greene v. Jefferson County Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Greene v. Jefferson County Commission, 13 So. 3d 901, 2008 Ala. LEXIS 236, 2008 WL 4892051 (Ala. 2008).

Opinion

SEE, Justice.

Steven Greene, Mark Persall, Larry Owen, Charles Horton, James Phillips, and Cassie Bell, on behalf of themselves and all others similarly situated, appeal from a summary judgment in favor of the Jefferson County Commission and the General Retirement System for Employees of Jefferson County. We affirm.

Facts and Procedural History

The General Retirement System for Employees of Jefferson County (“the retirement system”) was created in 1965 by the enactment of Act No. 497, Ala. Acts 1965. 1 The retirement system requires that each employee-member contribute six percent of his or her regular gross salary to the retirement system. Employee-members are credited with one year of paid service for each year they are employed by Jefferson County and contribute their six percent to the retirement system. In return for an employee-member’s six-percent contribution to the retirement system, Jefferson County contributes six percent in matching funds. However, in order to ensure that the retirement system remains actuarially sound, the retirement system invests the contributed funds to compensate for the difference between the total contributions and the actual pension payouts. 2

At some point during the 1970s, approximately 238 Jefferson County sheriffs deputies voluntarily ceased participating in the retirement system and withdrew their contributions, with interest. Those employees who opted out of the retirement system had their years of paid service reduced to zero, although they continued to receive one year of unpaid service for each year they continued to work for Jefferson County.

In June 2003, the legislature passed Act No. 2003-343, Ala. Acts 2003 (hereinafter “the Act”), allowing Jefferson County em *905 ployees who had opted out of the retirement system to opt back in and to receive credit for prior periods of unpaid service rendered to Jefferson County, the Jefferson County sheriffs department, or any municipality in Jefferson County “or other jurisdiction.” The Act also allowed Jefferson County employee-members who did not opt out and who were contributing to the retirement system to convert prior periods of unpaid service to paid service. 3 In order to convert unpaid prior service to paid service, an employee-member must contribute six percent of his or her current annual salary for each year the employee-member wishes to convert. The Act then requires Jefferson County to contribute six percent in matching funds and any further contributions that are necessary to ensure that the retirement system remains actu-arially sound.

Subsequent to the passage of the Act, two groups of Jefferson County employees filed separate class-action lawsuits to enforce the provisions of the Act. Sheriff Deputy Jimmy Black brought one of the class-action lawsuits against the pension board of the retirement system on behalf of other deputies who had opted out of the retirement system and who were seeking to enforce the provisions of the Act and to rejoin the retirement system. A second subclass in the first class-action lawsuit consisted of employees who had sought a hearing before a special master when Jefferson County did not allow the employees to convert unpaid service to paid service under the Act. Employee-members who had not opted out of the retirement system brought a separate lawsuit seeking to invalidate the Act. The lawsuits were eventually consolidated, and both Jefferson County and the retirement system were named as defendants (the consolidated actions are hereinafter referred to as “the Black litigation”).

Judge Jerry Fielding was specially assigned to preside over the Black litigation in the Jefferson Circuit Court. Judge Fielding found that the Act was not unconstitutional on the grounds asserted, and he ordered Jefferson County and the retirement system to implement the provisions of the Act allowing nonparticipating employees to opt back into the retirement system. None of the defendants appealed Judge Fielding’s decision.

In response to Judge Fielding’s order requiring Jefferson County to implement the provisions of the Act, the County passed Resolution JUN-7-2006-683 (“the resolution”). The resolution provides that eligible employees of Jefferson County who convert unpaid service to paid service under the Act forfeit any claim to retirement benefits under both the Jefferson County Retiree Health Insurance Plan and the Jefferson County Sick Leave Retirement Conversion Program. 4 Jefferson County defended the resolution as a necessary measure to preserve the economic stability of the County. The actuary for Jefferson County estimated that if all eligible employees availed themselves of the provisions of the Act, Jefferson County’s obligation to contribute matching funds and to compensate for investment earnings *906 that would have been realized if the employees had been making ongoing contributions to the retirement system would cost the County $64 million. The resolution also stated that one of its express purposes is to allow Jefferson County to “fulfill its statutory financial obligations.”

On June 19, 2006, the plaintiffs in the Black litigation moved for supplemental relief in the form of a preliminary injunction enjoining Jefferson County from enforcing the provisions of the resolution. The Jefferson County Commission, the pension board of the retirement system, and the retirement system challenged the motion, arguing, among other things, that the plaintiffs had failed to post an injunction bond. The plaintiffs responded by requesting that the trial court consolidate the hearing on the preliminary injunction with the trial on the permanent injunction.

Judge Fielding denied the plaintiffs’ motion for supplemental relief, finding that there was no justiciable issue in the motion because the court could not enjoin the enforcement of the resolution. He held that to do so would violate Article III, § 43, Alabama Constitution 1901. 5 Judge Fielding also found that “the issues presented in the plaintiffs’ challenge to the Resolution are completely separate and involve different facts, issues, and theories than the previous action challenging [the Act].” The plaintiffs in the Black litigation did not appeal Judge Fielding’s denial of the motion for supplemental relief.

On November 21, 2006, Judge Fielding certified his judgment in the Black litigation as final pursuant to Rule 54(b), Ala. R. Civ. P. The judgment specifically states that “[t]his Final Judgment entered under Ala. R. Civ. P. 54 together with the previous orders entered by this Court in these matters disposes of all claims for relief made by any party.” Neither side to the dispute in the Black litigation appealed Judge Fielding’s judgment.

On May 18, 2007, Steven Greene, Mark Persall, Larry Owen, Charles Horton, James Phillips, and Cassie Bell, 6 on behalf of themselves and all others similarly situated (hereinafter “the Greene parties”), sued the Jefferson County Commission and the retirement system (collectively “the County”) in the Jefferson Circuit Court.

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Bluebook (online)
13 So. 3d 901, 2008 Ala. LEXIS 236, 2008 WL 4892051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greene-v-jefferson-county-commission-ala-2008.