Jensen v. State, Department of Labor & Industry

689 P.2d 1231, 213 Mont. 84, 1984 Mont. LEXIS 1080
CourtMontana Supreme Court
DecidedOctober 25, 1984
Docket83-496
StatusPublished
Cited by24 cases

This text of 689 P.2d 1231 (Jensen v. State, Department of Labor & Industry) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jensen v. State, Department of Labor & Industry, 689 P.2d 1231, 213 Mont. 84, 1984 Mont. LEXIS 1080 (Mo. 1984).

Opinions

MR. CHIEF JUSTICE HASWELL

delivered the Opinion of the Court.

The Department of Labor and Industry, State of Montana, appeals the judgment of the Cascade County District Court finding the Department must grant the petitioner a veteran’s employment preference and appoint him to a manager’s job.

The petitioner, Clare Jensen, was hired by the Job Service Division of the Department of Labor and Industry in 1961. When hired, Jensen claimed and received a veteran’s preference. On March 12, 1982, the Department issued a vacancy announcement for the position of manager of the Great Falls Job Service Office. Nine persons, including Jensen, applied for the position. Seven were veterans. The Department viewed the filling of the position as an internal promotion. Only internal applications were accepted and veteran’s preference, traditionally granted only in initial hire situations, was not considered. On June 16, 1982, a nonveteran, Herbert Waltermire, was chosen to fill the manager position.

On June 16, 1983, this Court issued its decision in Crab-tree v. Montana State Library (Mont. 1983), [204 Mont. 398,] 665 P.2d 231, 40 St.Rep. 963. In Crabtree this Court affirmed the lower court decision of Judge Bennett of the Lewis and Clark County District Court. Judge Bennett ruled on February 14, 1982, that the State’s failure to grant a job applicant an absolute preference was in violation of the Veterans and Handicapped Civilians Employment Preference Act (hereinafter “the Act”), Section 10-2-201 et seq., [87]*87MCA. This ruling and our subsequent affirmance held that qualified veterans and disabled civilians are entitled to state employment over nonveteran and disabled applicants, thus granting veterans and disabled persons an absolute preference. See Crabtree, supra.

On June 21, 1983, Jensen filed a “petition to enforce employment preference.” Relying on Crabtree, Jensen claimed that he should have been hired for the position due to his veteran’s status.

On September 19, 1983, the District Court issued an order finding that the interpretation of the veteran’s preference as announced in Crabtree would be applied to this case. The court determined that the hiring was not an internal department promotion but an appointment within the scope of the preference law.

The District Court concluded that the Department of Labor must appoint Jensen to the manager’s job and that the Department must pay the retroactive salary that Jensen would have received from July 1, 1982, plus interest. Judgment was entered on Jensen’s claim October 11, 1983.

The legislature repealed the absolute veterans’ preference in a special session called for this purpose. The repealing legislation, Senate Bill 2 of the First Special Session of the 1983 Legislature, provided that preference claims that were reduced to judgment prior to December 23, 1983, the effective date of the legislation, were enforceable. The case at bar, therefore, presents a preference claim that was litigated subsequent to our decision in Crabtree and prior to repeal of the old Act.

The appellant Department has raised the following issues:

1. Whether the District Court correctly determined that the Crabtree interpretation of the veteran’s preference should be applied to the facts of this case.

2. Whether the District Court was correct in concluding the hiring was an appointment to a job rather than a promotion.

[88]*883. Whether the remedy of awarding Jensen the job and backpay was a proper form of relief.

I

The first issue raises the question of retroactive application of our Crabtree decision. Whether or not a judicial interpretation should be applied retroactively is a question guided by the principles enunciated in LaRoque v. State (1978), 178 Mont. 315, 583 P.2d 1059. In LaRoque we followed the factors set forth by the United States Supreme Court in Chevron Oil Company v. Huson (1971), 404 U.S. 97, 92 S.Ct. 349, 30 L.Ed.2d 296. These considerations are as follows:

(1) The decision to be applied nonretroactively must establish a new principle of law either by overruling precedent or deciding an issue of first impression whose resolution was not clearly foreshadowed;

(2) The rule in question must be examined to determine whether its retroactive application will further or retard its operation; and

(3) The equity of the retroactive application must be considered.

As to the first consideration, the State argues that Crabtree established a new rule of law in Montana and the decision was not foreshadowed by prior law. Prior to Crab-tree, the Act had been interpreted by the Attorney General and administrative agencies as granting a relative, not absolute, preference. Several Attorney General opinions and administrative rules of the Merit System Council are cited in support of appellant’s contention. The State argues that since Crabtree overruled the established executive interpretation of the Act, the decision should be applied nonretroactively under the first factor of LaRoque and Chevron Oil.

We do not find this argument persuasive. As Jensen noted in the court below and on appeal, Crabtree held that an absolute preference was intended by the enactment of the Act in 1921. The plain and unambiguous language of the [89]*89Act created an absolute preference that existed from day one of its enactment through its repeal in 1983. Our judicial decision of Crabtree did not create a new principle of law as much as it announced the continuing impact of the statute. The plain language of the Act foreshadowed Crabtree.

The second LaRoque consideration can be restated as a question of whether or not the absolute preference rule of Crabtree would be furthered by its retroactive application. Job opportunities for veterans and handicapped, the obvious purpose of the Act, could not be achieved without adherence to the mandates of the preference statute. In the present case the Labor Department did not consider veteran’s preference whatsoever in its employment decision. Were Crabtree not applied here, the Department’s total disregard for the Act would be condoned. Such an outcome could not further the purpose or operation of the Act.

Finally, the equity of retroactive application of Crabtree should be considered. The State maintains retroactive application would disrupt employment relationships established as long as five years ago; it would harm those who justifiably relied upon established employment procedures. The State argues retroactive application would be particularly inequitable to Herbert Waltermire who will lose his employment if the veteran Jensen is placed in the Great Falls manager position.

In LaRoque we stated that where substantial inequity will result by retroactive application, a ruling of nonretroactivity is proper. A case frequently cited for this proposition is Cipriano v. City of Houma (1969), 395 U.S. 701, 89 S.Ct. 1897, 23 L.Ed.2d 647.

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Bluebook (online)
689 P.2d 1231, 213 Mont. 84, 1984 Mont. LEXIS 1080, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jensen-v-state-department-of-labor-industry-mont-1984.