Kerlin v. Board of Administration

90 Cal. App. 3d 317, 153 Cal. Rptr. 257, 1979 Cal. App. LEXIS 1479
CourtCalifornia Court of Appeal
DecidedFebruary 21, 1979
DocketCiv. 15837
StatusPublished
Cited by1 cases

This text of 90 Cal. App. 3d 317 (Kerlin v. Board of Administration) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kerlin v. Board of Administration, 90 Cal. App. 3d 317, 153 Cal. Rptr. 257, 1979 Cal. App. LEXIS 1479 (Cal. Ct. App. 1979).

Opinion

Opinion

REYNOSO, J.

By an action for declaratory relief plaintiff Kathie (Bonnet) Kerlin seeks a declaration that Government Code section 21205 is unconstitutional. She thereby seeks to collect death benefits from the Public Employees Retirement System (PERS) as the named beneficiaiy of her former husband, Charles K. Bonnet.

Plaintiff challenges a substantive and a procedural ruling of the trial court. 1 In its substantive ruling the trial court held that the provisions of Government Code section 21205, dealing with beneficiaries of a deceased state employee, are constitutional. Thus, plaintiff’s claims against the Public Employees’ Retirement System failed. By its procedural ruling that the parties had stipulated that only the constitutional challenge be decided, the trial court precluded hearing other matters.

We agree with the trial court’s substantive ruling that the challenged statute is constitutional. Nor did the court err in its procedural ruling. Upon submission, other issues are deemed waived or abandoned. While the stipulations were not clear, the court offered to continue the matter. Plaintiff declined. She cannot now be heard to complain. Accordingly, we affirm.

A pretrial stipulation, the transcript of the trial which lasted but a few minutes, and the clerk’s transcript, provide the record upon which the following recitation of facts is based:

Plaintiff (Kathie) and Charles K. Bonnet (Charles) were married in 1962. They were divorced in 1968, with the final decree being filed the year after. Two children were born of the marriage.

Charles, who was employed as a fireman by the City of Woodland, became a member of PERS in May 1966. At that time he designated plaintiff, his then wife, as beneficiary. Charles remained a member of *320 PERS until his death on January 17, 1973. He never changed his designated beneficiary.

At the time of the interlocutory decree Charles was credited with employee deposits with PERS totaling $794.81.

Thereafter, plaintiff remarried. Charles, too, remarried. The record is silent as to the dates of these marriages. On January 17, 1973, Charles was killed by his second wife, Marsha. She pled no contest to a charge of involuntary manslaughter and was granted probation. No additional details are found in the record regarding the killing, its causes, the plea, or the court’s disposition.

In 1970, well after the dissolution of plaintiff’s marriage to Charles, the Legislature added section 21205 to the Government Code. We deal with the statute below.

Six and one-half months after Charles’ death on August 15, 1973, Marsha was paid $10,000 as death benefits by PERS. PERS considered Marsha the statutory beneficiary pursuant to Government Code section 21205. Kathie, the named beneficiary, applied for death benefits. PERS refused to pay her.

I. Constitutionality of Government Code Section 21205

The legislative scheme promulgated by section 21205 is that the employee may designate a beneficiary, that the designation may be changed at any time, and that “a member’s marriage, dissolution of marriage, annulment of his marriage, the birth of his child, or his adoption of a child shall constitute an automatic revocation of his previous revocable designation of beneficiary.” (Italics added.) However, “[u]pon revocation of any beneficiary designation, a member may designate the same or another beneficiary by a writing filed with the board.”

If there is no new designation after the automatic revocation, Government Code section 21211 sets forth the survivors to whom the benefits will be paid “in the following order:

*321 “1. The member’s spouse
“2. His children
“3. His parents”

The principal challenge to Government Code section 21211 2 is based on the contract clause of the Fifth Amendment of the United States Constitution. Plaintiff, the argument goes, enjoyed a vested contractual right in her former husband’s PERS death benefits inasmuch as she was the named beneficiary. A secondary argument rests on the due process clause of the Fourteenth Amendment. During plaintiff’s marriage to Charles, payments to the PERS system were community property (a stipulated amount of $794.81 at the time of dissolution). Such property, plaintiff asserts, may not be taken from her.

We reject the constitutional arguments. Government Code section 21205 does not impermissibly infringe upon the constitutional right of contract. We find persuasive the court’s analysis in Ruster v. Ruster (1974) 40 Cal.App.3d 379 [114 Cal.Rptr. 812], Plaintiff at best alleges that she is the third party beneficiary to the contract between Charles and PERS. We do not resolve the issue of whether she has standing to question the impairment of contractual rights. We proceed on the shaky assumption, as did the Ruster court, that she has standing. Ruster concluded: “[T]he statutory change made by the enactment of new Government Code section 21205 is constitutionally permissible. ...” (P. *322 382.) The relationship of advantage to disadvantages is also developed in Raster at page 383: “[T]he Legislature reasonably could decide to make provision for payment to those whom in ordinary circumstances the law requires an employee to support, that is, a spouse or a child; and conversely, removes from the beneficiary status upon dissolution or annulment of a marriage, a spouse or putative spouse whose rights are to be determined in the dissolution or annulment proceedings. By and large, the statute effectuates in part the general obligation of support, giving protection against failure on the part of the employee by reason of inadvertence, neglect or delay in the giving of notice. Although the statute automatically makes the change without notice by the employee, it expressly permits the member to make a change against the one made by the statute.” We agree.

The concluding paragraph in this analysis by the Raster court comes under particularly bitter attack by appellant (at p. 383): “[W]e must assume that the Legislature found a benefit to the employee, not only by helping him to meet an obligation which he might otherwise have overlooked, but also by comporting with what he would most likely have desired had he been attentive.” Plaintiff cites the “paternalistic government’s increasing degree of involvement and interference in the life of its citizens,” which involves choices which a decedent might not and probably would not condone. Aside from her moral outrage, plaintiff cites Frazier v. Tulare County Bd. of Retirement (1974) 42 Cal.App.3d 1046 [117 Cal.Rptr. 386], in support of her constitutional contract infringement argument. Frazier indeed held that a county retirement plan interferred with the right of contract. However, Frazier differs drastically from Raster

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Related

Coughlin v. Board of Administration
152 Cal. App. 3d 70 (California Court of Appeal, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
90 Cal. App. 3d 317, 153 Cal. Rptr. 257, 1979 Cal. App. LEXIS 1479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerlin-v-board-of-administration-calctapp-1979.