Santos v. Ohio Bureau of Workers' Compensation

801 N.E.2d 441, 101 Ohio St. 3d 74
CourtOhio Supreme Court
DecidedJanuary 21, 2004
DocketNo. 2002-1314
StatusPublished
Cited by65 cases

This text of 801 N.E.2d 441 (Santos v. Ohio Bureau of Workers' Compensation) 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
Santos v. Ohio Bureau of Workers' Compensation, 801 N.E.2d 441, 101 Ohio St. 3d 74 (Ohio 2004).

Opinion

O’Connor, J.

{¶ 1} We are asked to decide whether a suit seeking the return of funds wrongfully collected or held by the state may be properly heard in courts of common pleas, or whether, because that remedy includes the payment of money, the Court of Claims has exclusive jurisdiction. For the reasons stated below, we hold that courts of common pleas do have jurisdiction, and accordingly, we reverse the judgment of the court of appeals.

I

2} Angel Santos was injured in the course of his employment. He received $121,941.03 in benefits and compensation from the Ohio Bureau of Workers’ Compensation (“BWC”), and later settled an intentional-tort claim against his [75]*75employer for $500,000. Former R.C. 4123.931 purported to give the BWC subrogation rights for the amount it had paid to Santos. 1995 Am.Sub.H.B. No. 278, 146 Ohio Laws, Part II, 3581, 3596.

{¶ 3} On October 15, 1999, Santos filed a class action lawsuit against the BWC in the Cuyahoga County Court of Common Pleas. The complaint sought injunctive and declaratory relief from the BWC’s attempts to assert subrogation rights against Santos and others pursuant to R.C. 4123.931.

{¶ 4} Santos sought to have two classes certified. The first was composed of those individuals against whom the BWC had asserted its subrogation rights but from whom it had not yet collected money. The second class included individuals from whom the BWC had already recovered subrogation moneys. Santos’s complaint argued that R.C. 4123.931 was unconstitutional, and he sought “appropriate injunctive relief, and * * * an award of attorney fees, litigation expenses and court costs.”

{¶ 5} While litigation was pending in this case, in June 2001 this court held that R.C. 4123.931 was indeed unconstitutional in Holeton v. Crouse Cartage Co. (2001), 92 Ohio St.3d 115, 748 N.E.2d 1111. The BWC then filed a motion to dismiss the Santos action, arguing that the common pleas court lacked subject matter jurisdiction. Shortly thereafter, class certification was granted, and the BWC filed an acknowledgment that it could no longer assert subrogation rights under the version of R.C. 4123.931 that had been enacted in 1995. The BWC appealed, challenging the class certification and the propriety of the common pleas court’s subject matter jurisdiction.

{¶ 6} The Eighth District Court of Appeals reversed, holding that the Court of Claims had exclusive jurisdiction over the case and that the common pleas court had therefore lacked subject matter jurisdiction. The appellate court examined the claims of each of the two certified classes. The first class, comprised of individuals against whom the BWC had asserted subrogation rights but from whom it had not yet collected, asked for injunctive relief from the BWC’s collection of funds under the unconstitutional statute. The court recognized that injunctive relief was equitable relief.

{¶ 7} The second class, however, sought return of funds already collected by the BWC under the subrogation statute. The court reasoned that because the second class was seeking the return of money from the state, “it would be disingenuous to find that the appellee has filed this action in equity when what the appellee clearly seeks is restitution as the measure of damages.” Santos v. Bur. Workers’ Comp., Cuyahoga App. No. 80353, 2002-Ohio-2731, 2002 WL 1265568, ¶ 19. Because the issues presented by the first class were intertwined with those of the second class, the court concluded that the Court of Claims had exclusive jurisdiction over both claims.

{¶ 8} It is from this judgment that Santos now appeals to this court.

[76]*76II

{¶ 9} Section 16, Article I of the Ohio Constitution provides, “Suits may be brought against the state, in such courts and in such manner, as may be provided by law.” R.C. 2743.03 established the Court of Claims, vesting it with “exclusive, original jurisdiction of all civil actions against the state permitted by the waiver of immunity contained in section 2743.02 of the Revised Code.” However, R.C. Chapter 2743 does not divest other courts of this state of jurisdiction “to hear and determine a civil action in which the sole relief that the claimant seeks against the state is a declaratory judgment, injunctive relief, or other equitable relief.” R.C. 2743.03(A)(2).

{¶ 10} It is the phrase “other equitable relief’ that brings this matter before this court now. Santos asserts that his claim for the return of funds wrongfully held by the state is an equitable action, namely restitution, by which he seeks to make the members of the aggrieved class whole. The BWC counters Santos’s argument by noting that simply calling the requested relief restitution does not make the claim equitable. The BWC argues that the money sought represents damages for injuries and is not simply reimbursement of funds. The BWC submits that further weight is added to its position because Santos also seeks attorney fees and litigation and court costs. We find the BWC’s arguments unpersuasive.

{¶ 11} Historically, restitution has been available both in equity and in law as the remedy for an unjust enrichment of one party at the expense of another. Restatement of the Law, Restitution (1937) 9. Several remedies are available to a litigant seeking restitution, including a judgment for money. “Although ordinarily such money judgment is obtained by an action at law, a decree for money will sometimes be rendered by a court of equity.” Id. at 21, Section 4.

{¶ 12} The United States Supreme Court recently examined the term “equitable relief’ as used in Section 502(a)(3) of the Employee Retirement Income Security Act (“ERISA”), Section 1132(a)(3), Title 29, U.S.Code. Great-West Life & Annuity Ins. Co. v. Knudson (2002), 534 U.S. 204, 122 S.Ct. 708, 151 L.Ed.2d 635. The court considered whether “judicially decreed reimbursement for payments made to a beneficiary of an insurance plan by a third party” was “equitable relief’ and therefore authorized by ERISA. The petitioners characterized their claim as one of restitution. The court stated, “ ‘Almost invariably * * * suits seeking (whether by judgment, injunction, or declaration) to compel the defen[77]*77dant to pay a sum of money to the plaintiff are suits for “money damages,” as that phrase has traditionally been applied, since they seek no more than compensation for loss resulting from the defendant’s breach of legal duty.’ ” Id. at 210, 122 S.Ct. 708, 151 L.Ed.2d 635, quoting Bowen v. Massachusetts (1988), 487 U.S. 879, 918-919, 108 S.Ct. 2722, 101 L.Ed.2d 749 (Scalia, J., dissenting). The court ultimately found that the relief requested in Greatt-West was indeed at law because the basis for petitioners’ claim was that they were contractually entitled to funds for benefits that they had conferred. Id. at 214, 122 S.Ct. 708, 151 L.Ed.2d 635.

{¶ 13} Justice Scalia, writing for the majority, noted that not all suits seeking restitution can be characterized as seeking equitable relief. Instead, whether restitution is “legal or equitable depends on the basis for the plaintiffs claim and the nature of the underlying remedies sought.” (Internal quotations and brackets omitted.) Great-West at 213, 122 S.Ct. 708, 151 L.Ed.2d 635.

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Bluebook (online)
801 N.E.2d 441, 101 Ohio St. 3d 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/santos-v-ohio-bureau-of-workers-compensation-ohio-2004.