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State ex rel. Altman-Bates v. Pub. Emps. Retirement Bd. (Slip Opinion)
68 N.E.3d 747
Ohio
2016
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Background

  • In 1977 James Kura was appointed Franklin County Public Defender; the office operated independently and its employees paid Social Security rather than PERS contributions.
  • In 1984 the General Assembly amended R.C. 120.14 to permit county public-defender commissions to contract with nonprofit organizations; in January 1985 the Franklin County Public Defender nonprofit corporation was formed with the commission as incorporator and Kura named director.
  • Some employees hired before incorporation (pre-1985) were previously held to be public employees entitled to PERS credit in State ex rel. Mallory v. Pub. Emps. Retirement Bd.
  • Employees hired between January 1, 1985 and December 31, 1998 were treated as nonprofit employees (no PERS contributions); claimants sought PERS service credit for their pre-1999 service.
  • The PERS board denied claims after administrative proceedings; the Tenth District refused mandamus for three claimants, leading to this appeal. The Supreme Court grants mandamus as to Altman-Bates, Neyerlin, and Steele, and remands as to Anderson.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether employees hired 1/1/1985–12/31/1998 are "public employees" for PERS for service before 1/1/1999 Employees (Altman‑Bates, Neyerlin, Steele) argue they were employed by a county official (Kura) who retained his statutory office while directing the nonprofit, so their employers were public employers and they are entitled to PERS credit PERS/board argues the nonprofit corporation employed claimants and formal contracts and organizational acts show a private employer relationship; prior decisions (Van Dyke) preclude relitigation Held for plaintiffs: Because Kura simultaneously held the statutory office while serving as director and was not shown to have resigned or been removed, employees hired during his tenure are public employees and are entitled to service credit (writ granted as to three relators)
Relief for intervenor (Anderson) Anderson seeks same PERS credit Board argues insufficient record to show hire date/status Court vacated part of judgment and remanded for further proceedings as to Anderson because record lacks evidence about her hire date and successors' status

Key Cases Cited

  • State ex rel. Mallory v. Pub. Emps. Retirement Bd., 82 Ohio St.3d 235 (1998) (employees working for statutory public‑defender office before incorporation were public employees entitled to PERS)
  • State ex rel. Van Dyke v. Pub. Emps. Retirement Bd., 99 Ohio St.3d 430 (2003) (addressed carryover‑employee issue; did not resolve post‑incorporation status broadly)
  • State ex rel. Davis v. Pub. Emps. Retirement Bd., 120 Ohio St.3d 386 (2008) (held collateral estoppel from Van Dyke did not bar relitigation of post‑incorporation status)
  • State ex rel. Nese v. State Teachers Retirement Bd. of Ohio, 136 Ohio St.3d 103 (2013) (‘‘some evidence’’ standard supports administrative board if not an abuse of discretion)
  • State ex rel. Schaengold v. Ohio Pub. Emps. Retirement Sys., 114 Ohio St.3d 147 (2007) (mandamus requires showing board abused discretion; standard articulated)
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Case Details

Case Name: State ex rel. Altman-Bates v. Pub. Emps. Retirement Bd. (Slip Opinion)
Court Name: Ohio Supreme Court
Date Published: May 24, 2016
Citation: 68 N.E.3d 747
Docket Number: 2014-0650
Court Abbreviation: Ohio