State ex rel. Hanrahan v. Zupnik

161 Ohio St. (N.S.) 43
CourtOhio Supreme Court
DecidedFebruary 17, 1954
DocketNos. 33553, 33554, 33555 and 33556
StatusPublished

This text of 161 Ohio St. (N.S.) 43 (State ex rel. Hanrahan v. Zupnik) 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
State ex rel. Hanrahan v. Zupnik, 161 Ohio St. (N.S.) 43 (Ohio 1954).

Opinion

Middleton, J.

The only error assigned in this court is that the Court of Appeals erred in affirming the judgments of the Court of Common Pleas allowing the writs of mandamus.

Three principal questions are debated. They are the significance of the statutes which became effective May 26,1937, commonly referred to as the vested right statutes; the effect of the comprehensive revision of the pennon laws effected by the statutes enacted in 1947, and the right of the relators in any event to relief in mandamus.

In February 1937 the General Assembly enacted Section 4612-1, General Code (117 Ohio Laws, 29), relating to the firemen’s fund, and Section 4628-1 (117 Ohio Laws, 31), relating to the police fund, in identical language, both enactments becoming effective May 26, 1937. Those sections read:

“The granting of a pension to any person hereafter pursuant to the rules adopted by the trustees shall operate to vest a right in such person, so long as he shall remain the beneficiary of such pension fund, to receive such pension at the rate so fixed at the time of granting such pension.”

It can not be doubted that these enactments created vested rights in both firemen and policemen, who were placed on the pension rolls subsequent to May 26,1937, to receive the amounts fixed by their respective boards as of the dates they became pensioners, in the absence of change of the rules and regulations adopted by such boards pursuant to powers in them vested. It is not claimed that while the rule-making power was still vested in the boards any change in the rules or regulations was made which would affect the rights of either firemen or policemen then on the pension rolls. As will be hereinafter noted, the power to determine the amount of pensions and the qualifications to receive [48]*48pensions existed in the trustees until the Act of 1947 (122 Ohio Laws, 613) but not thereafter. As to pensioners or beneficiaries who became such subsequent to May 26,1937, it is clear that their rights were vested.

What then were the rights of those who were placed on the pension rolls prior to May 26, 1937? Their rights can not be considered as having been vested by reason of the 1937 legislation, in view of the language therein specifically limiting those enactments to “the granting of a pension to any person hereafter. ’ ’ However, we are constrained to hold that the vesting of the rights of that group of pensioners or beneficiaries is not contingent upon the provisions of the Acts of 1937 (117 Ohio Laws, 29 and 31) and the vesting of such rights was not affected by failure to include that group within the terms of those acts.

Those placed on the pension rolls prior to May 26, 1937, were so placed pursuant to rules and regulations legally adopted by the respective trustees. The power of the trustees to change those rules and regulations as they would affect such pensioners or beneficiaries was never exercised prior to the termination of such authority in 1947. Even though, in the absence of statutory provisions to the contrary, pensions may be considered a gratuity and subject to revision or revocation by the trustees under their rule-making power, as to the future, such action by the trustees was not taken.

It is a general fundamental rule that pension statutes are to be liberally construed. 40 American Jurisprudence, 963, Section 4; 62 Corpus Juris Secundum, 1269, Section 614; 70 Corpus Juris Secundum, 425, Section 2. This court approves that rule of construction. See State, ex rel. Schoedinger, v. Lentz, 132 Ohio St., 50, 57, 5 N. E. (2d), 167.

The problem of vested interests in pensions has received the attention of many courts over a long period [49]*49of years. There are several exhaustive annotations upon this subject in A. L. R. The one appearing in 54 A. L. R., 943, states the general rule that there is no vested right to a gratuitous pension, but at page 945 it is stated:

“It is, however, conceded that where any particular payment .under a pension has become due, the pensioner has a vested right therein.”

The above-quoted statement is repeated in 98 A. L. R., 505, 507, and in 112 A. L. R., 1009, 1010.

In 137 A. L. R., 249, 255, the vesting of rights as to accrued installments is recognized in the following language:

“It is probably true that no court would question that where a particular instalment of a pension has accrued there is a vested right in the pensioner to that instalment. ’ ’

In 40 American Jurisprudence, 981, Pensions, Section 24, the following statement appears:

“And it is a strongly supported rule that where any particular payment under a pension has become due the pensioner has a vested right thereto.”

These vested rights of pensioners are recognized in 3 McQuillin, Municipal Corporations (3 Ed.), 516, Section 12.144, as follows:

“If a pension law is unrepealed, the right of one who has satisfied all of the requirements for a pension is vested in the sense that he has established a right which the law will protect, and of which he may not be deprived by the arbitrary action of an administrative body or officer.”

Decisions of this court are consistent with the statements hereinabove set forth. See State, ex rel. Little, v. Carter, 111 Ohio St., 526, 146 N. E., 56; State, ex rel. Dieckroegger, v. Conners, 122 Ohio St., 359, 171 N. E., 586; State, ex rel. Eden, v. Kundts et al., Boards of Trustees, 127 Ohio St., 276, 188 N. E., 9; State, ex rel. [50]*50White, Gdn., v. City of Cleveland, 135 Ohio St., 13, 18 N. E. (2d), 807.

The respondents herein can not rely on the case of State, ex rel. Lemperle, v. McIntosh et al., Trustees, 145 Ohio St., 107, 60 N. E. (2d), 786. In that case the board while still vested with rule-making power adopted a regulation affecting future payment of pensions or benefit's to one who had been placed on the pension rolls prior to May 26, 1937. Such are not the facts of the instant cases.

Without further analysis of the many authorities available, we hold that the relators who were placed on the pension rolls prior to May 26, 1937, have vested rights to the monthly payments of pensions here in controversy.

The foregoing should be sufficient to dispose of the issues here involved. However, counsel for the respondents urge with great earnestness that the comprehensive amendment to the pension laws which became effective in 1947 (122 Ohio Laws, 614) changed the theory of pensions and created a new and separate fund which could not be used or drawn upon to satisfy delinquencies which occurred prior to its enactment. At the risk of undue length some comment must be made with respect to that contention.

Our conclusion is that the contention is without merit and this conclusion is reached after a thorough study and review of firemen and police pension fund laws covering more than a half a century. Police and firemen pension laws were on the statute books long before 1902, but in April 1902 the General Assembly repealed all former laws on the subject and passed a comprehensive act covering the entire subject with respect to both firemen and policemen (95 Ohio Laws, 223). • That act authorized the creation of a board of trustees to be known as the Trustees of the Firemen’s Pension Fund and another board of trustees to be [51]

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Related

State Ex Rel. Dieckroegger v. Conners
171 N.E. 586 (Ohio Supreme Court, 1930)
State Ex Rel. Lemperle v. McIntosh
60 N.E.2d 786 (Ohio Supreme Court, 1945)
State Ex Rel. Eden v. Kundts
188 N.E. 9 (Ohio Supreme Court, 1933)
State Ex Rel. Schoedinger v. Lentz
5 N.E.2d 167 (Ohio Supreme Court, 1936)
State Ex Rel. White v. City of Cleveland
18 N.E.2d 807 (Ohio Supreme Court, 1939)
State Ex Rel. Little v. Carter
146 N.E. 56 (Ohio Supreme Court, 1924)

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Bluebook (online)
161 Ohio St. (N.S.) 43, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-hanrahan-v-zupnik-ohio-1954.