Weber v. Board of Retirement

62 Cal. App. 4th 1440, 73 Cal. Rptr. 2d 769, 98 Daily Journal DAR 3683, 98 Cal. Daily Op. Serv. 2690, 1998 Cal. App. LEXIS 311
CourtCalifornia Court of Appeal
DecidedApril 10, 1998
DocketB110776
StatusPublished
Cited by13 cases

This text of 62 Cal. App. 4th 1440 (Weber v. Board of Retirement) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weber v. Board of Retirement, 62 Cal. App. 4th 1440, 73 Cal. Rptr. 2d 769, 98 Daily Journal DAR 3683, 98 Cal. Daily Op. Serv. 2690, 1998 Cal. App. LEXIS 311 (Cal. Ct. App. 1998).

Opinion

*1442 Opinion

ALDRICH, J.

Introduction

In this appeal, we are asked to determine whether Los Angeles County employees are entitled to interest under Civil Code section 3287, subdivision (a) 1 on the lump-sum portion of their disability retirement benefits which portion was administratively awarded to them by the board of retirement. Petitioners are members of the Los Angeles County Employees Retirement Association (LACERA) who have been granted service-connected disability retirement pensions under the County Employees Retirement Law of 1937, Government Code section 31200 et seq. (CERL). When LACERA denied petitioners’ requests for interest on the retroactive portion of their benefits which is paid in a lump sum, petitioners filed this class-action petition for writ of mandate asking the court to order LACERA to pay the interest. LACERA moved for judgment on the pleadings based on the Supreme Court’s holding in American Federation of Labor v. Unemployment Ins. Appeals Bd. (1996) 13 Cal.4th 1017 [56 Cal.Rptr.2d 109, 920 P.2d 1314] CAFL-CIO) arguing that as an administrative body, it has no statutory authority to award interest when paying the retroactive portion of disability benefits and otherwise section 3287(a) provides for the award of prejudgment interest only in judicial as opposed to administrative proceedings. The trial court agreed with LACERA and granted their motion. On appeal, petitioners attempt to distinguish AFL-CIO. We hold CERL does not authorize the board, either implicitly or explicitly, to award interest under section 3287(a), and so based on AFL-CIO and CERL, judgment was properly entered on the pleadings. Accordingly, we affirm the judgment.

Factual and Procedural Background

A. LACERA.

LACERA is a public entity created under the authority of CERL to hold and invest the pensions and administer the benefits to the employees of the County of Los Angeles who are its members. LACERA’s board of retirement (Gov. Code, § 31520 (hereinafter the Board)) is charged with the responsibility of ascertaining the eligibility for and paying pension benefits to eligible employees under CERL.

*1443 B. Katherine Weber.

For seven years, Katherine Weber was a mental health hearing referee for the Los Angeles County Superior Court. Weber suffered injuries in an on-duty automobile accident on August 31, 1989, and applied for service-connected disability retirement. LACERA found Weber was not permanently incapacitated and so she filed an administrative appeal. After a hearing, the referee recommended Weber be granted service-connected disability retirement effective immediately, commencing retroactively to the day following the last day she received full compensation.

On March 3, 1993, LACERA’s Board voted to adopt the findings of the referee and granted Weber service-connected disability retirement under CERL effective April 10, 1991, and retroactive to August 1989. Weber was paid a lump sum of $48,455.51 to cover the benefits retroactively owed, thereby making the payments current. Weber is also receiving her current monthly allowance. The Board notified Weber of her right, should she disagree with the decision, to file a petition for writ of mandate. Instead, Weber asked the Board to pay her interest on the retroactive lump-sum payment. LACERA denied the request, explaining there was no legal authority for the payment of such interest.

C. Laura Gamica.

Laura Gamica was an intermediate typist clerk for the Los Angeles County Sheriff’s Department for 13 years. On January 22, 1988, Gamica applied for a service-connected disability and on April 5, 1989, the Board ruled she was permanently incapacitated as the result of a nonserviceconnected cause. At Gamica’s request, a de novo hearing was held. During the period of reevaluation, Gamica applied for and received nonservicerelated payments. After the hearing, the referee recommended a service-connected disability retirement allowance. The Board adopted the referee’s findings and granted Gamica disability retirement effective June 3, 1988. Gamica was paid $16,791.37 in retroactive benefits which amount constitutes the difference between the nonservice-connected benefit received during the pendency of the de novo proceeding and the service-connected disability to which she had been entitled as of the date she was initially eligible. Gamica’s request for interest on the retroactive benefits was denied by LACERA for lack of legal authority to make such payments.

D. The mandamus petition.

Weber and Garnica (petitioners) then filed their class action petition for writ of mandate under Code of Civil Procedure section 1094.6. In paragraph *1444 5 of the first cause of action, petitioners sought to direct the Board to pay them and others similarly situated interest under section 3287(a) on the lump-sum payment of the retroactive portion of the CERL benefits administratively awarded to them.

LACERA answered the petition, specifically denying the allegations of the fifth paragraph. LACERA then filed its motion for judgment on the pleadings, arguing the petition was insufficient as a matter of law based on the authority of AFL-CIO. In its motion, LACERA argued CERL does not authorize or compel administrative payment of interest on retroactive retirement allowances. LACERA noted petitioners sought the award of interest under section 3287(a) at the administrative level, whereas section 3287(a) applies to court-ordered awards in mandamus actions upon a determination that benefits were wrongfully withheld.

Petitioners opposed LACERA’s motion by distinguishing AFL-CIO and the Unemployment Insurance Code on the ground the interest they sought constituted “damages” as defined by section 3287(a).

The trial court granted LACERA’s motion for judgment on the pleadings, explaining simply, “AFL-CIO controls.” The court also denied leave to amend the petition, stating “[sjhould plaintiffs wish to file a petition in mandate re[:] ‘wrongful withholding’ of benefits, plaintiffs should file a new action.” Judgment was entered in favor of LACERA, and petitioners’ timely appeal followed.

Contention

Petitioners contend the trial court improperly granted the motion for judgment on the pleadings on the authority of AFL-CIO because that case does not bar prepayment interest on retirement benefits.

Discussion

The question of whether petitioners are entitled to interest on the lump-sum payment of the retroactive portion of their retirement benefits “is one of law, concerning which we exercise our independent judgment. . . .” (Austin v. Board of Retirement (1989) 209 Cal.App.3d 1528, 1531 [258 Cal.Rptr. 106], citation omitted.)

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62 Cal. App. 4th 1440, 73 Cal. Rptr. 2d 769, 98 Daily Journal DAR 3683, 98 Cal. Daily Op. Serv. 2690, 1998 Cal. App. LEXIS 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weber-v-board-of-retirement-calctapp-1998.