ILNews

Court cuts $42.4 million state back pay award

Back to TopE-mailPrintBookmark and Share

The Indiana Court of Appeals today significantly slashed a $42.4 million damages award against the state, cutting the period from which employees can recover back pay from 20 years to about two months.

In its ruling in Richmond State Hospital, et al. v. Paula Brattain, et. al., No. 49A02-0908-CV-718, a three-judge appellate panel found that thousands of past and present state workers can still recover money they should have earned on the job. But the judges reversed one part of a Marion Superior judge’s decision from last year that some of those employees could recover back pay for a period from 1973 to 1993.

Instead, the appellate court held that certain employees shouldn’t be able to recover for that two-decade period but instead only for a time limited to 10 days before the class-action suit was filed July 29, 1993, to when the state courts abolished the split class system in September 1993.

While attorneys are studying the 54-page decision, initial estimates gleaned from the ruling are that it reduces the damages for merit-based employees from $23.5 million to an estimated couple million dollars. The remaining $18.6 million awarded to non-merit employees would not be affected by this change and the appellate court affirmed that aspect.

This appeal by the Indiana Attorney General’s Office follows a July 2009 decision by Marion Superior Judge John Hanley, which awarded a total of $42.4 million to as many as 15,000 or more past and present state workers who’d fought to recover back pay for unequal wages earned during those two decades. The trial judge found that by requiring plaintiffs and others to work 40 hours a week in “split classes” during those years, the state violated the “equal pay for comparable work” regulation and breached its employment contracts.

In total, the judge’s analysis of the four classes translated to: $20.9 million for overtime-eligible merit employees, $2.7 million for overtime-exempt merit employees, $16.7 million for overtime-eligible non-merit employees, and $1.9 million for overtime-exempt non-merit workers.

On the merit employee aspect, the state AG’s Office had argued for the limited liability period rather than 20 years based on an Indiana Supreme Court decision made almost a decade ago: State Employees’ Appeals Commission .v Bishop, 741 N.E. 2d 1229 (Ind. 2001), (Bishop II), which was a consolidation of Indiana State Employees’ Appeals Commission v. Greene, 716 N.E. 2d 54, 57-58 (Ind. Ct. App. 1999), and Indiana State Employees’ Appeals Commission v. Bishop (Bishop I), 721 N.E. 2d 881, 884-85 (Ind. Ct. App. 1999). In those cases, the Court of Appeals found employees were entitled to back pay for only a limited period starting 10 days before the respective complaints were filed. The Supreme Court upheld that finding.

Reaching its conclusion, the panel noted that Indiana Code Section 4-15-2-35 and former 31 Indiana Administrative Code 2-13-1 apply only to merit employees and that Greene, Bishop I, and Bishop II are dispositive.

“However, we recognize that the effect creates an apparent anomaly. Indiana Code Section 4-15-2-35 and former Indiana Administrative Code 2-13-1 do not apply to non-merit employees and cannot be considered part of their contractual relationship with the State, so their back pay is not limited by the ten-day rule,” the court wrote. “Nevertheless, we are constrained to follow our supreme court’s pronouncement in Bishop II. The enterprise of creating law is outside our sphere of authority. Although our supreme court has the ability to revisit the issue and redefine the law, until that time, we are obliged to apply it as it currently exists.”

This panel – made up of authoring Judge Terry Crone with Chief Judge John Baker and Judge Michael Barnes concurring – instructs the Marion Superior Court to recalculate the merit-employees’ award based on the limited time period in 1993. Exactly when that ending period date should be is something the trial court will also have to examine because the Greene, Bishop I, and Bishop II rulings aren’t clear on whether the split class system was abolished on Sept. 19, 1993, or Sept. 12, 1993.

In addition to the liability period and damages aspects, the Court of Appeals found that statutory requirements for class certification were met; the trial judge didn’t err in finding that merit employees were excused from exhausting administrative remedies because to do so would have been futile; the trial court correctly determined which class the employees belonged in; there weren't any errors in admitting certain evidence; and that the state failed to establish all the elements of laches to bar the employees’ claims.

The state AG’s office was reviewing the ruling and not able to comment by early afternoon, while Indianapolis attorney John Kautzman for the plaintiffs said this is a mixed ruling that can be seen both as a victory and a defeat for the state employees.

“We’re seeing it as a resounding success that the court affirmed the state’s liability and that we got a victory on the non-merit employees, but that’s tempered by the merit employees’ (damages) being substantially reduced.”

Kautzman and his legal team are reviewing what comes next, but he said one step may be to ask the Court of Appeals for a rehearing to offer a clarification on its methodology in order to determine when the state actually received notice of the issue – 1988 or the time the suit was filed in 1993.

“We believe that there’s evidence showing the state was put on notice prior to that date, and so that’s when it should start,” he said. “Even if we’re using this Greene and Bishop methodology and the 10 days applies, we would extend the period from 1988 to 1993 and put a good amount of the money back on the table.”
 

ADVERTISEMENT

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. Have been seeing this wonderful physician for a few years and was one of his patients who told him about what we were being told at CVS. Multiple ones. This was a witch hunt and they shold be ashamed of how patients were treated. Most of all, CVS should be ashamed for what they put this physician through. So thankful he fought back. His office is no "pill mill'. He does drug testing multiple times a year and sees patients a minimum of four times a year.

  2. Brian W, I fear I have not been sufficiently entertaining to bring you back. Here is a real laugh track that just might do it. When one is grabbed by the scruff of his worldview and made to choose between his Confession and his profession ... it is a not a hard choice, given the Confession affects eternity. But then comes the hardship in this world. Imagine how often I hear taunts like yours ... "what, you could not even pass character and fitness after they let you sit and pass their bar exam ... dude, there must really be something wrong with you!" Even one of the Bishop's foremost courtiers said that, when explaining why the RCC refused to stand with me. You want entertaining? How about watching your personal economy crash while you have a wife and five kids to clothe and feed. And you can't because you cannot work, because those demanding you cast off your Confession to be allowed into "their" profession have all the control. And you know that they are wrong, dead wrong, and that even the professional code itself allows your Faithful stand, to wit: "A lawyer may refuse to comply with an obligation imposed by law upon a good faith belief that no valid obligation exists. The provisions of Rule 1.2(d) concerning a good faith challenge to the validity, scope, meaning or application of the law apply to challenges of legal regulation of the practice of law." YET YOU ARE A NONPERSON before the BLE, and will not be heard on your rights or their duties to the law -- you are under tyranny, not law. And so they win in this world, you lose, and you lose even your belief in the rule of law, and demoralization joins poverty, and very troubling thoughts impeaching self worth rush in to fill the void where your career once lived. Thoughts you did not think possible. You find yourself a failure ... in your profession, in your support of your family, in the mirror. And there is little to keep hope alive, because tyranny rules so firmly and none, not the church, not the NGO's, none truly give a damn. Not even a new court, who pay such lip service to justice and ancient role models. You want entertainment? Well if you are on the side of the courtiers running the system that has crushed me, as I suspect you are, then Orwell must be a real riot: "There will be no curiosity, no enjoyment of the process of life. All competing pleasures will be destroyed. But always — do not forget this, Winston — always there will be the intoxication of power, constantly increasing and constantly growing subtler. Always, at every moment, there will be the thrill of victory, the sensation of trampling on an enemy who is helpless. If you want a picture of the future, imagine a boot stamping on a human face — forever." I never thought they would win, I always thought that at the end of the day the rule of law would prevail. Yes, the rule of man's law. Instead power prevailed, so many rules broken by the system to break me. It took years, but, finally, the end that Dr Bowman predicted is upon me, the end that she advised the BLE to take to break me. Ironically, that is the one thing in her far left of center report that the BLE (after stamping, in red ink, on Jan 22) is uninterested in, as that the BLE and ADA office that used the federal statute as a sword now refuses to even dialogue on her dire prediction as to my fate. "C'est la vie" Entertaining enough for you, status quo defender?

  3. Low energy. Next!

  4. Had William Pryor made such provocative statements as a candidate for the Indiana bar he could have been blackballed as I have documented elsewhere on this ezine. That would have solved this huuuge problem for the Left and abortion industry the good old boy (and even girl) Indiana way. Note that Diane Sykes could have made a huuge difference, but she chose to look away like most all jurists who should certainly recognize a blatantly unconstitutional system when filed on their docket. See footnotes 1 & 2 here: http://caselaw.findlaw.com/us-7th-circuit/1592921.html Sykes and Kanne could have applied a well established exception to Rooker Feldman, but instead seemingly decided that was not available to conservative whistleblowers, it would seem. Just a loss and two nice footnotes to numb the pain. A few short years later Sykes ruled the very opposite on the RF question, just as she had ruled the very opposite on RF a few short years before. Indy and the abortion industry wanted me on the ground ... they got it. Thank God Alabama is not so corrupted! MAGA!!!

  5. OK, take notice. Those wondering just how corrupt the Indiana system is can see the picture in this post. Attorney Donald James did not criticize any judges, he merely, it would seem, caused some clients to file against him and then ignored his own defense. James thus disrespected the system via ignoring all and was also ordered to reimburse the commission $525.88 for the costs of prosecuting the first case against him. Yes, nearly $526 for all the costs, the state having proved it all. Ouch, right? Now consider whistleblower and constitutionalist and citizen journalist Paul Ogden who criticized a judge, defended himself in such a professional fashion as to have half the case against him thrown out by the ISC and was then handed a career ending $10,000 bill as "half the costs" of the state crucifying him. http://www.theindianalawyer.com/ogden-quitting-law-citing-high-disciplinary-fine/PARAMS/article/35323 THE TAKEAWAY MESSAGE for any who have ears to hear ... resist Star Chamber and pay with your career ... welcome to the Indiana system of (cough) justice.

ADVERTISEMENT