Sheldon v. Board of Trustees of the Police Retirement System

779 S.W.2d 553, 1989 Mo. LEXIS 102, 1989 WL 136404
CourtSupreme Court of Missouri
DecidedNovember 14, 1989
Docket71717
StatusPublished
Cited by18 cases

This text of 779 S.W.2d 553 (Sheldon v. Board of Trustees of the Police Retirement System) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sheldon v. Board of Trustees of the Police Retirement System, 779 S.W.2d 553, 1989 Mo. LEXIS 102, 1989 WL 136404 (Mo. 1989).

Opinions

BILLINGS, Judge.

Suit for declaratory judgment brought by Steven Lee and Lisa Sheldon to determine whether or not the Board of Trustees of the Police Retirement System had a right to setoff pension payments made by them to Steven Sheldon with workers' compensation payments for nursing care, paid by the Board of Police Commissioners pursuant to a negotiated settlement agreement. The trial court determined there was no right to a setoff for the pension payments. The court of appeals reversed. This Court granted transfer of the case and affirms the trial court’s judgment.

Documentary evidence and facts stipulated by both parties were presented to the trial court for adjudication. The facts as stipulated show Steven Sheldon was a police officer for the St. Louis Metropolitan Police Department. On February 7, 1985, [554]*554he was shot in the performance of his duties and was permanently paralyzed from the chest down.

The Board of Trustees of the Police Retirement System (hereinafter the “Pension System”) determined that Steven was totally disabled. On August 17, 1985,- he was retired pursuant to § 86.263, RSMo 1986, and began receiving $2,204.17 in monthly pension payments. He will require extensive medical and nursing care for the rest of his life. The cost of those expenses will greatly exceed the amount of his pension payments.

On April 29, 1985, Steven filed a claim against the St. Louis Metropolitan Police Department (hereinafter the “Police Department”) under Missouri’s Workers’ Compensation Law, § 287.140, RSMo 1986, solely for payment of his medical and nursing care, past and future. The Pension System disputed the fact that the claim was solely for payment of medical and nursing care. After protracted negotiations, the Sheldons and the Board of Police Commissioners for the St. Louis Police Department entered into a settlement agreement. The agreement provided for a lump sum payment of $125,000.00 as compensation for past nursing care. In addition, monthly annuity payments of $2,154.00 would be made jointly to the Sheldons and continue throughout the life of the surviv- or. The trial court determined that the annuity payment is solely to cover the cost of his future nursing care. The lump sum payment and the annuity were given in consideration of Steven Sheldon’s release of any further claim for medical and nursing benefits and his wife’s claim of any survivor death benefits.

The Police Department was Steven’s employer and liable for his workers’ compensation claims. See § 287.140, RSMo 1988. The Pension System is a separate legal entity liable to the Sheldons for retirement or pension payments. During settlement negotiations between the Sheldons and the Police Department, the question arose as to whether or not payments made by the Pension System would be required to be offset by any payments made by the Police Department because of § 86.297, RSMo 1986. The pertinent portion of that statute reads:

Any amounts which may be paid or payable by the said cities under the provisions of any workers’ compensation or similar law to a member or to the dependents of a member on account of any disability or death shall be offset against and payable in lieu of any benefits payable out of funds provided by the said cities under the provisions of 86.200 to 86.363 on account of the same disability or death.

The Sheldons would only consent to the settlement agreement if the pension Steven was currently receiving would not be offset by any payments made under the agreement. The trial court found § 86.297 inapplicable and no setoff was allowed. The court of appeals held to the contrary and reversed.

In court-tried cases the appellate court usually reviews the case to determine whether there is substantial evidence to support the trial court’s finding; whether the finding was against the weight of the evidence; whether the law was declared erroneously or whether the law was erroneously applied. Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976). However, when the case is tried on a stipulation of facts not involving the resolution by the trial court of conflicting testimony, the only question before the Court is whether the trial court drew the proper legal conclusions from the facts stipulated. Schroeder v. Horack, 592 S.W.2d 742, 744 (Mo. banc 1979); Johnson v. McDonnell Douglas Corp., 745 S.W.2d 661, 662 (Mo. banc 1988). The Court finds all legal conclusions were properly drawn by the trial court.

The interpretation of § 86.297 is one of first impression, thus the Court must look to the well-established canons of statutory construction for guidance. The primary rule of statutory construction is to ascertain the intent of the General Assembly from the language used, to give effect to that intent if possible, and to consider the words used in their plain and ordinary meaning. Wolff Shoe Co. v. Director of Revenue, 762 S.W.2d 29, 31 (Mo. banc [555]*5551988). The Court must also look to the object to be accomplished and the problems to be remedied by the statute. State ex rel. Kemp v. Hodge, 629 S.W.2d 353, 358 (Mo. banc 1982). The General Assembly is presumed to intend to enact a just law that serves the welfare of its constituents rather than an absurd law. State ex rel. Lack v. Melton, 692 S.W.2d 302, 304 (Mo. banc 1985). The Court favors construction that avoids unjust or unreasonable results. Rothschild v. State Tax Com’n of Missouri, 762 S.W.2d 35, 37 (Mo. banc 1988).

It is undisputed that for the remainder of his life, Steven Sheldon will require nursing care. The cost of this care was determined by the trial court to be in excess of two million dollars. The annuity agreement entered into between the Police Department and the Sheldons was to compensate for that expense only.

Steven Sheldon was awarded and received pension benefits of $2,204.17 per month in lieu of the salary he would have received had he not been injured. Section 86.297, RSMo 1986, requires that any payments made for death or disability under the workers’ compensation statute be offset against and payable in lieu of any benefits payable out of funds paid through the police relief and pension system. The appeals court interpreted this language to require pension payments be offset by any payment made through workers’ compensation, regardless of the reason for the workers’ compensation payment. The court of appeals found that the plain and ordinary meaning of “any” meant all payments, regardless of the reason the payment is made.

The court of appeals also based its opinion on the fact that the General Assembly would have used more specific language had its intent been to exclude medical payments from the setoff. The court relied on § 287.U0, RSMo 1986, of the Workers’ Compensation Law. That statute reads in part:

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Sheldon v. Board of Trustees of the Police Retirement System
779 S.W.2d 553 (Supreme Court of Missouri, 1989)

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Bluebook (online)
779 S.W.2d 553, 1989 Mo. LEXIS 102, 1989 WL 136404, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheldon-v-board-of-trustees-of-the-police-retirement-system-mo-1989.