Measles v. Industrial Commission

2011 Ohio 1523, 128 Ohio St. 3d 458
CourtOhio Supreme Court
DecidedApril 6, 2011
Docket2010-0393
StatusPublished
Cited by15 cases

This text of 2011 Ohio 1523 (Measles v. Industrial Commission) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Measles v. Industrial Commission, 2011 Ohio 1523, 128 Ohio St. 3d 458 (Ohio 2011).

Opinion

*459 McGee Brown, J.

{¶ 1} The Ohio Industrial Commission and the Ohio Bureau of Workers’ Compensation (“BWC”) appeal from a decision of the Eighth District Court of Appeals finding that plaintiffs-appellees’ claim for restitution under a contract for lump-sum advancement was a claim in equity, not law, and therefore could properly proceed before the common pleas court.

{¶ 2} We are asked to determine whether appellees’ claim for restitution sounds in equity or in law. If the claim is equitable, it may be brought in a court of common pleas. However, if the claim is a claim at law for money damages, the Court of Claims has exclusive jurisdiction. Because appellees seek, among other things, restitution as a remedy at law, this case must proceed under the exclusive jurisdiction of the Court of Claims. Therefore, we reverse.

Facts and Procedural History

{¶ 3} Appellees, Powell Measles, Vada Measles, and Ann Pocaro, suffered permanent total disability from work-related injuries and became entitled to weekly payments of disability benefits for life, pursuant to R.C. 4123.58. Instead of receiving all the benefits according to the schedule, however, appellees opted to receive portions of their benefits through lump-sum advancements available pursuant to R.C. 4123.64(A).

{¶ 4} Each appellee signed and submitted to the commission an application for a lump-sum payment before receiving advancements. The applications contained the following provision: “In the event this Lump Sum Payment is granted it will result in a permanent reduction of weekly benefits which shall continue for the life of the claim.” 1 Powell Measles applied for advancements in 1986 and 1987. Vada Measles applied in 1984 and 1985. Ann Pocaro applied in 1995. The commission approved each of the applications, disbursed the lump-sum advancements, and reduced the workers’ ongoing benefit payments accordingly.

*460 {¶ 5} Appellees initiated this action through a filing styled as a “Complaint for Equitable Relief Only,” which asked for declaratory relief, injunctive relief, and disgorgement from the commission and BWC relating to benefits received after the lump-sum advancement. Specifically, appellees claim that the reduction of weekly benefits pursuant to the agreements should have stopped when the aggregate value of weekly reductions equaled the value of their lump-sum advancements. Appellees assert that they represent a class of more than 1,000 similarly situated injured workers.

{¶ 6} The trial court granted defendants-appellants’ motion to dismiss for lack of subject-matter jurisdiction. Citing Cristino v. Ohio Bur. of Workers’ Comp., 118 Ohio St.3d 151, 2008-Ohio-2013, 886 N.E.2d 857, the court explained that “[a] claim based on a[n] LSA made pursuant to R.C. 4123.64(A) is a claim against the state for money due under a contract [and] is not a claim for equitable restitution, and such claims therefore must be brought in the Ohio Court of Claims.” Measles v. Indus. Comm. (Mar. 13, 2009), Cuyahoga C.P. No. CV-07-623468. On appeal by appellees, the Eighth District Court of Appeals reversed. The appellate court noted that appellees had “not exclusively pled claims for money due and owing under a contract, and so have not made what is ‘ “quintessential^ an action at law.” ’ ” Measles v. Indus. Comm., Cuyahoga App. No. 93071, 2010-Ohio-161, 2010 WL 194508, ¶ 16, quoting Cristino at ¶ 9. Because the action sounded in equity, the appellate panel concluded, appellees could pursue their claims in the common pleas court. Id. at ¶ 18. The commission and BWC then appealed to this court.

Analysis

(¶ 7} Our narrow focus is on whether appellees can pursue their claims against the state in the court of common pleas or whether the Court of Claims has exclusive jurisdiction. Courts of common pleas generally enjoy jurisdiction over, among other things, civil disputes with more than $500 in controversy. R.C. 2305.01 and 1907.03. The Court of Claims, however, has exclusive jurisdiction over civil actions against the state for money damages that sound in law. R.C. 2743.02 and 2743.03. Included within the jurisdiction of the Court of Claims are civil actions presenting claims in both law and equity. R.C. 2743.03(A)(2). See also Ohio Hosp. Assn. v. Ohio Dept. of Human Servs. (1991), 62 Ohio St.3d 97, 103, 579 N.E.2d 695 (“The Court of Claims has exclusive, original jurisdiction in all civil suits for money damages even where ancillary relief such as an injunction or declaratory judgment is sought. However, a suit that seeks only injunctive or declaratory relief may be brought against the state in the court of common pleas” [citation omitted]).

{¶ 8} Because appellees’ prayers for declaratory and equitable relief sound classically in equity, jurisdiction of their action turns on whether the claim for *461 restitution sounds in equity or in law. The answer lies in this court’s recent decision in Cristino. That case involved an injured worker’s claim that the state miscalculated the value of his lump-sum advancement. Pietro Cristino had sought early payment of the entire value of his benefits, but argued that the state undervalued his entitlement. In addressing whether the restitution claim sounded in equity or in law, the court explained that the chief factors are “the basis for the plaintiffs claim and the nature of the underlying remedies sought.” Cristino, 118 Ohio St.3d 151, 2008-Ohio-2013, 886 N.E.2d 857, ¶ 7.

{¶ 9} On the one hand, the court explained, an action in law for restitution is “a claim in which the plaintiff ‘ “could not assert title or right to possession of particular property, but in which nevertheless he might be able to show just grounds for recovering money to pay for some benefit the defendant had received from him.” ’ ” Id. at ¶ 8, quoting Great-West Life & Annuity Ins. Co. v. Knudson (2002), 534 U.S. 204, 213, 122 S.Ct. 708, 151 L.Ed.2d 635, quoting 1 Dobbs, Law of Remedies (2d Ed.1993) 571, Section 4.2(1). A claim for restitution relating to a contract dispute, for example, constitutes an action in law. Ohio Hosp. Assn., 62 Ohio St.3d at 104, 579 N.E.2d 695 (“The claims for violation of the provider agreements and an earlier settlement agreement are within the exclusive jurisdiction of the Court of Claims to the extent that [plaintiffs] alleged that their contractual rights have been violated and seek monetary relief’). On the other hand, an action in equity for restitution is “one in which ‘money or property identified as belonging in good conscience to the plaintiff could clearly be traced to particular funds or property in the defendant’s possession.’ ” Cristino, 118 Ohio St.3d 151, 2008-Ohio-2013, 886 N.E.2d 857, ¶ 8, quoting Great-West Life & Annuity at 213. Such an action may arise, for example, when a claim relates to a statutory right.

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Bluebook (online)
2011 Ohio 1523, 128 Ohio St. 3d 458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/measles-v-industrial-commission-ohio-2011.