STATE EX REL. STATE BD., ETC. v. Dineen

409 A.2d 1256
CourtCourt of Chancery of Delaware
DecidedNovember 20, 1979
StatusPublished
Cited by1 cases

This text of 409 A.2d 1256 (STATE EX REL. STATE BD., ETC. v. Dineen) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
STATE EX REL. STATE BD., ETC. v. Dineen, 409 A.2d 1256 (Del. Ct. App. 1979).

Opinion

409 A.2d 1256 (1979)

STATE of Delaware EX REL. STATE BOARD OF PENSION TRUSTEES and Ernst Danneman, Ralph Deakyne, and Leonard Bardsley as members of said Board, Petitioners,
v.
Russell D. F. DINEEN, Respondent, and
State of Delaware, Third-Party Plaintiff,
New Castle County Board of Education, Third-Party Defendant.

Court of Chancery of Delaware, New Castle County.

Submitted October 22, 1979.
Decided November 20, 1979.

William M. Remington, Deputy Atty. Gen., Dept. of Justice, Wilmington, Del., for petitioners.

Peter M. Sieglaff of Potter, Anderson & Corroon, for respondent.

*1257 BROWN, Vice Chancellor.

In this action both the petitioner, the State Board of Pension Trustees (hereafter "the Trustees"), and the respondent, Russell D. F. Dineen, (hereafter "Dineen"), have moved for summary judgment on the issue of whether Dineen was entitled to receive a service pension from the State of Delaware commencing in January 1979. This issue is presented upon a stipulated set of facts. The jurisdiction of this Court to entertain this matter is based on the premise that the petitioner, as the trustee of the State Pension Fund, is seeking instructions as to the proper administration of the trust.[*]

*1258 Except for the point of contention set forth hereafter, it is not disputed that Dineen has met all of the statutory requirements that otherwise would entitle him to receive a State pension. He was first employed by the Wilmington School District in 1947 and eventually became its Assistant Superintendent for Business Services. In 1978, as a result of the abolition of separate school districts in favor of a solitary New Castle County School District as ordered by the United States District Court for the District of Delaware, Dineen became Associate Superintendent of Personal for the new school district. He held this position until he was suspended during July 1978 and eventually terminated on December 19, 1978, for the reason hereafter described. Thus, prior to his termination of employment he had acquired 35 years of credited service with the State. During that period he made all contributions to the State Pension fund required by 29 Del.C. § 5543, the total amount of such payments being $18,970.62. He has never applied for a refund of his accumulated contributions to the pension fund.

The facts which have cast the cloud upon Dineen's otherwise undisputed entitlement to a pension may be summarized briefly as follows. During September 1977, at the request of Dineen and during their regular working hours, two school district employees performed about $150 worth of work and labor on a residence owned by Dineen. The employees refused Dineen's offer of payment for the work. Dineen did not pay the school district for the work, nor did he report to school district officials that the work had been performed. When this was discovered, criminal charges were brought against Dineen and he was suspended from his employment pending the outcome.

On September 8, 1978, Dineen entered a plea of guilty to a charge of having committed official misconduct, a misdemeanor, in violation of 11 Del.C. § 1211(2). He was sentenced to pay a fine of $1,000 and to make restitution of $150 to the school district. Subsequently, his employment with the school district was terminated because of this admission of guilt. Some two weeks thereafter, on January 4, 1979, Dineen applied for his pension. The parties agree that if Dineen is entitled to receive the pension, the payment of such benefits should have commenced as of January 1, 1979. However, the petitioning Trustees took no action on the matter until March 29, 1979, and then the action taken was no more than the following resolution:

"Resolved, that while the Board of Pension Trustees believes that Mr. Dineen is entitled to his pension as a matter of equity, there is a question of law as to whether a public official who violates the trust of his Office thereby forfeits any pension entitlement. The Board hereby requests the Attorney General's Office to petition the appropriate court for guidance in this matter."

This action followed.

The narrow question of law as to which instruction is requested may be summarized as follows: Does a State employee who is otherwise eligible to receive a State service pension forfeit that right by conduct or by the commission of a wrongful act which justifies the termination of his public employment for cause?

I.

The statutes which create and govern the State Employees' Pension Plan are found at 29 Del.C. Ch. 55. By 29 Del.C. § 5522 it is provided that a State employee shall become eligible to receive a service pension "beginning with the month after he has terminated employment" where, among other things, he has 30 years of credited service. At 29 Del.C. § 5523 it is stated that an employee with 10 years of service "shall have a vested right to a pension." And 29 Del.C. § 5525 provides that service pension payments shall be made to either "a retired employee or former employee" commencing *1259 with the month in which he becomes eligible to receive it. By § 5502 it is provided that an individual shall not receive pension payments for any month during which he is a full time employee of the State, and at § 5523 it is stated that a "former employee's vested right [to receive a pension] shall be forfeited upon his application for a refund of his accumulated contributions." (Emphasis added.) Except for these last two provisions, there are no other statutory limitations on the right of a former employee with sufficient service credit to receive his pension.

These statutes make it clear that once an employee has 10 years of credited service he acquires certain contractual rights. As stated in In Re State Employees' Pension Plan, Del.Supr., 364 A.2d 1228, 1235 (1976):

"... we hold that vested contractual rights exist under the State Pension Law and in the State Pension Fund, at least as to those employees and former employees who have statutory vested rights in service pensions or who have otherwise fulfilled eligibility requirements for pension."

And in Dorsey v. State ex rel. Mulrine, Del.Supr., 283 A.2d 834, 837 (1971) our Supreme Court held as follows:

"It is clear, however, that forfeiture of a vested right to a pension ... may be made only if there is express statutory authority in the Pension Law itself, authorizing the abrogation of such a vested right."

Compare, also, Miller v. City of Wilmington, Del.Ch., 285 A.2d 443 (1971), aff'd sub nom., City of Wilmington v. Miller, Del.Supr., 293 A.2d 574 (1972), where it was held that the fact that a pension applicant's employment had been involuntarily terminated did not work a forfeiture of his pension rights.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Joseph E. Seagram & Sons, Inc. v. Conoco, Inc.
519 F. Supp. 506 (D. Delaware, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
409 A.2d 1256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-state-bd-etc-v-dineen-delch-1979.