Johnson v. State Ex Rel. Department of Public Safety

2000 OK 7, 2 P.3d 334, 2000 Okla. LEXIS 9, 2000 WL 124416
CourtSupreme Court of Oklahoma
DecidedFebruary 1, 2000
Docket92,359
StatusPublished
Cited by17 cases

This text of 2000 OK 7 (Johnson v. State Ex Rel. Department of Public Safety) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. State Ex Rel. Department of Public Safety, 2000 OK 7, 2 P.3d 334, 2000 Okla. LEXIS 9, 2000 WL 124416 (Okla. 2000).

Opinion

HODGES, J.

T1 This action follows the Court of Civil Appeals' decision in Fink v. State ex rel. Dept. of Public Safety, 1992 OK CIV APP 169, 852 P.2d 774, and this Court's decision in Sholer v. State ex rel. Dept. of Public Safety, 1995 OK 150, 945 P.2d 469 (Sholer I). The issue in this appeal is whether the trial court erred in denying appellant's application for a writ of mandamus which sought an order for the Oklahoma Department of Safety to pay her money judgment. After a review of the record and law, we find that the writ should issue.

*336 I. BACKGROUND

2 For years the Oklahoma Department of Public Safety (Department) misapplied see-tions 6-212 and 6-212.1 of title 47 and assessed multiple reinstatement fees for restoring a driver's license. In Fink, the driver initially had his license suspended for six months. The driver received several more suspensions before attempting to have his license reinstated. The Department stacked the suspensions and attempted to charge a reinstatement fee for each offense. The Court of Civil Appeals held that the Department had misapplied the statutes and could assess only one reinstatement fee. On April 13, 1998, this Court denied certiorari review. The Department changed its policy to conform to Fink on July 6, 1998. During 1993 and 1994, the Department paid approximately 1800 unsolicited refunds from a "clearing account".

T3 One day after the change in policy, a class action was brought pursuant to Fink to recover reinstatement fees in excess of that authorized by statute. Sholer I, 1995 OK 150, 113-4, 945 P.2d at 471. The primary issues in Sholer I were whether the decision in Fink was correct and whether the decision should be applied retroactively. Id. at 118, 945 P.2d at 478. This Court held that the Fink decision was correct and should be applied retrospectively subject to the three-year statute of limitations and remanded the matter on the issue of class certification. 1

T4 On remand, Wanda Johnson, a named plaintiff in Sholer I, opted out of the class and proceeded individually. The trial court, determining that Ms. Johnson was entitled to a refund from the Department, awarded her a judgment of $107.25 plus interest. The judgment was not appealed and is final. The Department has refused to pay the judgment.

15 Ms. Johnson filed this action seeking a writ of mandamus to compel the Department to pay her refund, although now in the form of a judgment. The Department has taken the position that Ms. Johnson's claim for a refund merged into the judgment extinguishing her refund claim, that the clearing account cannot be used to pay a money judgment, that there are no appropriated funds to pay the judgment, and, thus, the Department had no funds with which it is authorized to pay the judgment.

16 The trial court and the Court of Civil Appeals both denied Ms. Johnson's petition and refused to issue a writ. Both lower courts agreed with the Department that Ms. Johnson's claim for a refund was extinguished under the doctrine of merger and her judgment could not be paid from the clearing account. This Court granted certio-rari.

IIL - PAYMENT OF JUDGMENT FROM CLEARING ACCOUNT

T7 The question of whether Ms. Johnson's judgment can be paid from the Department's clearing account, the account from which the Department has paid the other refunds, is determinative of whether a writ of mandamus should issue. Payments from the clearing account are governed by section 7.1 of title 62 of the Oklahoma Statutes which provides:

At least onee each month each state agency shall transfer monies deposited in agency clearing accounts to the various funds or accounts, subdivisions of the state, or functions as may be provided by statute and no money shall ever be disbursed from the agency clearing account for any other purpose, except in refund of erroneous or excessive collections and credits.

If the judgment is in the nature of a refund for purposes of this statutory provision, the *337 Department has authority to pay it from the clearing account.

1 8 The Department argues that, under the doctrine of merger, Johnson's claim for a refund was merged into the judgment, and the refund claim ceased to exist. The Department posits that section 7.1 allows it to disburse funds from its clearing account for refunds of erroneous or excessive collections but not for money judgments. The Department continues that, because Ms. Johnson has a judgment and no longer has a refund claim, it is not authorized to pay the judgment out of the clearing account. Relying on article 5, section 55 of the Oklahoma Constitution 2 , the Department advocates that the only remedy available to Ms. Johnson is through a legislative appropriation.

19 The doctrine of merger is a common law principle in which a cause of action is merged into a judgment, extinguishing the underlying cause of action. Cooper v. Federal Res. Bank of Richmond, 467 U.S. 867, 874, 104 S.Ct. 2794, 81 LEd.2d 718 (1984). Under the general rule, the judgment replaces the old debt which ceases to exist, Randerson v. McKay, 1920 OK 84, 77 Okla. 238, 188 P. 323, 324, and extinguishes all the remedial rights which accompany the underlying claim. Restatement (Second) of Judgments § 24(1). Under the rule of merger, the judgment does not annihilate the debt and the essential nature of the debt remains intact. Milbourn v. State, 1934 OK 268, 168 Okla. 168, 32 P.2d 291, 292. In the present case, the essential nature of the debt is a refund. The judgment in favor of Ms. Johnson did not change the nature of the debt. The judgment for Ms. Johnson, although a money judgement remains in the nature of a refund and falls within the purview of section 7.1 of title 62.

110 The doctrine of merger is part of the law of res judicata. Swan v. Sargent Industries, 1980 OK CIV APP 49 n. 1, 620 P.2d 478, 475 n. 1 (approved for publication by the Supreme Court). The doctrine of merger is generally utilized to prevent a second suit from being brought on 'a claim after judgment has been entered on the claim. See Restatement (Second) of Judgments § 18. The purpose of the rule of merger is to promote justice. See Milbourn v. State, 1934 OK 268, 32 P.2d at 292.

111 The rule of merger is not without exception and will be extended only so far as necessary to further its purpose. Id. The rule of merger will not be applied when to do so will create unjust or inequitable results. Id. When a cause of action is extinguished because it is merged into a judgment, the advantages which attached to the original claim may be preserved. Restatement (Second) of Judgments § 18 emt. g. For example, a lien is not extinguished merely because a creditor obtains a judgment against a debtor. Id. Likewise, a.creditor does not forfeit its priority in bankruptcy by obtaining a judgment. Id.

112 To apply the rule of merger in the present case would create inequitable and unjust results and would undermine the rule's purpose. Under the Department's assertion, it could forever avoid the payment of the refund by refusing to pay a claim and forcing the claimant to obtain a judgment. Then a claimant would never be able to recover a refund.

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Cite This Page — Counsel Stack

Bluebook (online)
2000 OK 7, 2 P.3d 334, 2000 Okla. LEXIS 9, 2000 WL 124416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-state-ex-rel-department-of-public-safety-okla-2000.