Pennsylvania Ass'n of State Mental Hospital Physicians v. State Employees' Retirement Board

483 A.2d 1003, 87 Pa. Commw. 108, 1984 Pa. Commw. LEXIS 2141
CourtCommonwealth Court of Pennsylvania
DecidedAugust 10, 1984
DocketNo. 1741 C.D. 1975
StatusPublished
Cited by9 cases

This text of 483 A.2d 1003 (Pennsylvania Ass'n of State Mental Hospital Physicians v. State Employees' Retirement Board) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Ass'n of State Mental Hospital Physicians v. State Employees' Retirement Board, 483 A.2d 1003, 87 Pa. Commw. 108, 1984 Pa. Commw. LEXIS 2141 (Pa. Ct. App. 1984).

Opinion

Memorandum Opinion by

Judge Blatt,

The Pennsylvania Association of State Mental Hospital Physicians (petitioners) seek here an order granting a Petition for Attorney’s Pees in their suit against the State Employees’ Retirement Board (Board).1

The petition now before us arises out of a class action suit initiated by the petitioners in November, 1975 which challenged the Board’s method of calculating “credited service” under Section 204(1) of the State Employes’ Retirement Code of 19592 for all [110]*110part-time employees of the Commonwealth of Pennsylvania who earned annual salaries prior to March 1, 1974.3 The amount of “credited service” which such a.state employee is deemed to have completed determines his eligibility for vesting4 along with the amount of benefits5 he receives at retirement age.

Until mid-1969, the Board calculated the petitioners’ “credited service” at the rate of one full year for each twelve-month period in which the petitioners received an annual salary. Thus, the fact that petitioners may have worked part-time did not enter into the Board’s computation of “credited service”. The Board then requested and received an opinion from the attorney general, in which they were advised that “credited service” must reflect the actual amount of time worked by an employee as a percentage of full-time employment. Our Supreme Court, however, held that the General Assembly, in establishing the method of computing “credited service ’ ’, did not distinguish between part-time and full-time state employees who received an annual salary and that, therefore, the change instituted by the Board beginning in 1969 was improper. Pennsylvania Association of State Mental Hospital Physicians v. State Employees’ Retirement Board, 484 Pa. 313, 399 A.2d 93 (1979).

[111]*111Subsequent to this Supreme Court ruling, the Board issued a directive which instructed Commonwealth personnel supervisors to compute “credited service” in compliance with this Court’s order, and further ordered that the petitioners’ “final average salary” be calculated in a new manner as set forth in the directive. The “final average salary”6 is used, along with the amount of “credited service”, to determine the amount of benefits an employee receives at retirement age. Believing that the instructions contained in the directive regarding the computation of “final average salary” would work to negate the final order of the Supreme Court, the petitioners began discovery proceedings. In the course of those proceedings, the parties entered into negotiations which resulted in the entering of a consent decree by this Court on March 7, 1984. We note that, in regard to attorney’s fees, the consent decree provides that the Board has not waived any defenses to an award of attorney’s fees and that, if the Court were to grant petitioners’ motion here, the fees would be limited to $50,000.

The sole issue before this Court is whether or not the petitioners are entitled to an award of attorney’s fees against the Board.

The petitioners contend that they are entitled to attorney’s fees under three exceptions to the general American Buie which provides that, in the absence of a statute or contract, a litigant is ordinarily responsible for the payment of his own counsel fees. Nagle v. Pennsylvania Insurance Department, 46 Pa. Commonwealth Ct. 621, 406 A.2d 1229 (1979), rev’d [112]*112in part on other grounds, 499 Pa. 139, 452 A.2d 230 (1982). First, they argue that because the underlying litigation resulted in the restoration of property rights that had been denied to class members in violation of Article I of the Pennsylvania Constitution and the fifth and fourteenth amendments to the United States Constitution, they are entitled to an award of attorney’s fees pursuant to the Civil Rights Attorneys’ Fees Award Act of 1976, 42 U.S.C. §1988. Next, they contend that under the “common fund” exception to the American Rule and the related “substantial benefit” exception they are entitled to attorney’s fees. Finally, they assert that this Court may grant their motion for attorney’s fees under the “private Attorney General” exception.

The Board asserts that attorney’s fees may not be awarded against it as an agency of the state. Initially, it notes that attorney’s fees are awarded in Pennsylvania pursuant to Sections 1726 and 2503 of the Judicial Code, 42 Pa. C. S. §§1726 and 2503, and furthermore that “a statute is never presumed to deprive the state of any prerogative, right or property unless the intention to do so is clearly manifest, either by express terms or necessary implication”. Culver v. Commonwealth, 348 Pa. 472, 475, 35 A.2d 64, 65 (1944). The Board then argues that, inasmuch as neither Section 1726 nor Section 2503 of the Judicial Code specifically authorizes the award of costs and attorney’s fees against the Commonwealth or an agency of the Commonwealth, this Court may not grant the petitioners’ motion. Second, the Board raises the defense of sovereign immunity, arguing that, pursuant to Section 8521(a) of the Judicial Code, 42 Pa. C. S. §8521 (a), “no provision of this title [Title 42] shall constitute a waiver of sovereign immunity” except those contained in Section 8522 of [113]*113the Judicial Code, 42 Pa. O. S. §8522 and that, therefore, Sections 1726 and 2503 of the Judicial Code can not be construed as a waiver of sovereign immunity. Finally, the Board contends that, even if this Court were to determine that fees may be awarded against an agency of the Commonwealth, none of the exceptions to the American Pule apply here.

In disposing of its argument that sovereign immunity bars such an award, we have been persuaded by our Supreme Court’s opinion in Baehr Brothers v. Commonwealth, 493 Pa. 417, 420 n. 4, 426 A.2d 1086, 1087 n. 4 (1981) (plurality opinion) which reads that:

Appellant [the Commonwealth] argues that the doctrine of sovereign immunity precludes the taxation of costs against the Commonwealth. We disagree. The Legislature has vested this Court with general statutory power to tax costs against all litigants, 42 Pa. C.S.A. §1726. . . . The Commonwealth was a party litigant in the underlying action, which no one argues was barred by sovereign immunity, and the Commonwealth Court had jurisdiction of the cause and of the parties. Incident to that jurisdiction was the power to tax costs. (Emphasis in original.)

Costs, of course, include attorney’s fees “to the extent authorized by section 2503. ...” 42 Pa. C. S. §1726.

Furthermore, we do not find persuasive the Board’s argument that Pennsylvania courts are not authorized to impose counsel fees on the Commonwealth or its agencies under 42 Pa. C. S. §2503 which entitles “ [t]he following participants ... to a reasonable counsel fee as part of the taxable costs of the matter; . . .” against other “participants”.

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483 A.2d 1003, 87 Pa. Commw. 108, 1984 Pa. Commw. LEXIS 2141, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-assn-of-state-mental-hospital-physicians-v-state-employees-pacommwct-1984.