Hisle v. Missouri Local Government Employees' Retirement System

778 F. Supp. 470, 1991 U.S. Dist. LEXIS 18005, 1991 WL 261607
CourtDistrict Court, W.D. Missouri
DecidedAugust 7, 1991
DocketNo. 90-4081-CV-C-5
StatusPublished

This text of 778 F. Supp. 470 (Hisle v. Missouri Local Government Employees' Retirement System) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hisle v. Missouri Local Government Employees' Retirement System, 778 F. Supp. 470, 1991 U.S. Dist. LEXIS 18005, 1991 WL 261607 (W.D. Mo. 1991).

Opinion

ORDER

SCOTT 0. WRIGHT, District Judge.

Before the Court is defendant Missouri Local Government Employees’ Retirement System’s (LAGERS) motion for summary judgment and the plaintiffs’ cross-motion for summary judgment on Count One. Also before the Court is plaintiffs’ motion to dismiss Counts Two and Three without prejudice.

Plaintiffs claim that their rights under the Equal Protection Clause of the Fourteenth Amendment have been violated by the defendants’ discriminatory actions. The parties have stipulated to the facts in this case. Therefore, there are no genuine disputes as to a material fact, and summary judgment is appropriate. For the following reasons, defendant LAGERS’ motion for summary judgment is granted, and the plaintiffs’ motion for summary judgment is denied. Plaintiffs’ motion to dismiss Counts Two and Three is granted.

I. STATEMENT OF FACTS

The parties have stipulated to the facts. The plaintiffs, with the exception of Mary V. Noel, are retired employees of defendant City of Columbia. Mary V. Noel is a beneficiary of LAGERS by virtue of her deceased spouse, who was a member of LAGERS. Defendant City of Columbia is a constitutional charter city of the State of Missouri. Defendant LAGERS is a Missouri corporation established by the Missouri General Assembly in 1967.

LAGERS was created by Mo.Rev.Stat. § 70.605. The purpose of Section 70.605 was to provide pensioning for the officers and employees, and the widows and children of the officers and employees, of any political subdivision within the state. Section 70.605 allowed political subdivisions to join LAGERS at their option. In 1969, the City of Columbia, by Ordinance 3813, elected to join LAGERS.

Plaintiffs (except Mary V. Noel) and Mary V. Noel’s deceased husband were then required to make contributions to LAGERS out of the salary they received from the City of Columbia. In addition, the City of Columbia made a contribution to LAGERS on behalf of each plaintiff (except Mary V. Noel) and Mary V. Noel’s deceased husband.

In 1982, by Mo.Rev.Stat. § 70.705(6), the State of Missouri empowered the political subdivisions with the authority to elect to discontinue member contributions to LAGERS. On September 19, 1983, by Ordinance 9935, the City of Columbia elected to eliminate future member contributions. In 1987, by Mo.Rev.Stat. § 70.707, the State of Missouri authorized each political subdivision (that had eliminated member contributions for five or more continuous years) to elect to refund the member contributions. On October 16, 1989, by Ordinance 12384, the City of Columbia elected to refund accumulated member contributions. The City of Columbia then refunded the member contributions to those employees and officers in the employment of the City of Columbia on October 16, 1989. All of the plaintiffs (except Mary V. Noel) and Mary V. Noel’s deceased husband had retired from employment with the City of Columbia by October 16, 1989. Plaintiffs seek the contributions each made to LAGERS, and the interest due on the contributions. (Except Mary V. Noel, who seeks her deceased husband’s contributions and interest.)

II. SUMMARY JUDGMENT STANDARD OF REVIEW

Fed.R.Civ.P. 56(c) requires “the entry of summary judgment ... against a party [472]*472who fails to make a showing sufficient to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986). The burden on the party moving for summary judgment “is only to demonstrate ... that the record does not disclose a genuine dispute on a material fact.” City of Mt. Pleasant, Iowa v. Associated Elec. Co-op., 838 F.2d 268, 273 (8th Cir.1988).

Once the moving party has done so, the burden shifts to the non-moving party to go beyond the pleadings and by affidavit or by “depositions, answers to interrogatories, and admissions on file” show that there is a genuine issue of fact to be resolved at trial. Celotex, 477 U.S. at 323, 106 S.Ct. at 2553. Evidence of a disputed factual issue which is merely colorable or not significantly probative, however, will not prevent entry of summary judgment. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986).

III. ANALYSIS

Because the parties have stipulated to the material facts, both parties meet the original burden of their respective summary judgment motions. The record does not disclose a genuine dispute on a material fact. Therefore, all that remains for the Court is to decide this case as a matter of law. Master Insulators of St. Louis v. International Ass’n of Heat and Frost Insulators and Asbestos Workers, Local No. 1, 925 F.2d 1118, 1120 (8th Cir.1991).

Plaintiffs bring this action pursuant to 42 U.S.C. § 1983. Section 1983 makes liable anyone who, while acting under the color of the law, deprives others of their rights. Plaintiffs allege that defendants, while acting under Missouri statutes, violated their rights under the Equal Protection Clause of the Fourteenth Amendment. Plaintiffs contend that the violation of their rights occurred when those employed by the City of Columbia on October 16, 1989, received a refund of member contributions, yet plaintiffs, who had retired by that date, did not receive a refund of their member contributions.

All of the parties agree that the appropriate standard to measure the constitutionality of defendant’s conduct is the “rational basis” or “rational relation” test. “Unless a classification trammels fundamental personal rights or is drawn upon inherently suspect distinctions such as race, religion, or alienage, our decisions presume the constitutionality of the statutory discriminations, and require only that the classification challenged be rationally related to a legitimate state interest.” City of New Orleans v. Dukes, 427 U.S. 297, 303, 96 S.Ct. 2513, 2516-17, 49 L.Ed.2d 511 (1976).

Plaintiff contends that there is no “legitimate state interest” in differentiating between the two groups of employees. Both defendants assert that legitimate state interests exits.

Defendant LAGERS claims the state interest in creating the classification is in providing a better retirement system. LAGERS contends a better retirement system is created because it is able to provide pensions at lower costs to future employees. LAGERS also asserts the retirement system bolsters the morale of the present employees who received a refund of contributions.

Defendant City of Columbia justifies the distinction by claiming that there is a state interest in refunding contributions to present employees, whereas no state interest exists in refunding contributions to retired employees.

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778 F. Supp. 470, 1991 U.S. Dist. LEXIS 18005, 1991 WL 261607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hisle-v-missouri-local-government-employees-retirement-system-mowd-1991.