BEDFORD, State Auditor, v. WHITE ET AL.
No. 14,670.
Supreme Court of Colorado
October 7, 1940
106 P. [2d] 469
Mr. ERSKINE R. MYER, Mr. W. DAVID MCCLAIN, Mr. EDWIN A. WILLIAMS, Mr. PIERPONT FULLER, amici curiae.
En Banc.
MR. JUSTICE BAKKE delivered the opinion of the court.
DEFENDANTS in error, White and Adams, former members of this court, instituted an action under the provisions of article 10, chapter 93, ‘35 C.S.A., to obtain a declaratory judgment determining their right as retired justices to pensions allegedly payable to them. The action was against the state auditor who refused to issue vouchers for the pension. The auditor demurred to the complaint, which was overruled, and, after his election to stand thereon, judgment was entered in accordance with the prayer of the complaint.
Since the original Supreme Court pension act is indirectly involved, as well as the 1939 act which is directly challenged here as to White and Adams, it is well that we have them both before us, and we set them out respectively.
“An Act Relating To Pensioning Of Certain Classes Of Judges Of The Supreme Court After Retirement From Office.
“Section 1. When any person having heretofore served, is now serving, or shall hereafter serve as a judge of the Supreme Court of Colorado, has served not less than ten years in said court, and has attained the age of sixty-eight years before the end of such service, he shall from the time he ceased to hold said office by reason of expiration of his term or voluntary resignation during a term, be entitled to and receive an annual pension during the residue of his natural life. Such pension shall be in an amount of $3,000.00 annually and
payable monthly out of the general fund of the State of Colorado.” ‘35 C.S.A., vol. 2, p. 886, c. 46, §33, S.L. 1925, c. 168, p. 504.
“An Act Relating To Pensioning Of Certain Classes Of Judges Of The Supreme Court After Retirement From Office, And To Amend Section 1 Of Chapter 168 Of The Session Laws Of Colorado Of 1925. Section 1. That section 1 of chapter 168 of the Session Laws of Colorado of 1925, be, and the same is hereby amended to read as follows: Section 1. When any person having heretofore served, is now serving, or shall hereafter serve as a judge of the Supreme Court of Colorado for not less than ten years, and has ceased to hold said office by reason of expiration of his term or voluntary resignation and has reached the age of sixty-five years, he shall be entitled to and receive an annual pension during the residue of his natural life. Such pension shall be in an amount of $3,000.00 annually and payable monthly out of the general fund of the state of Colorado.” S.L. 1939, p. 317, c. 96.
While a number of constitutional objections were urged below, the attorney general confines his argument here to two provisions of our Constitution which he says are violated by the legislative acts here under consideration. These provisions are as follows:
It is defendant‘s contention that under the foregoing
“We think it is clear that the state cannot, in its sovereign capacity, extend aid for charitable, industrial, educational or benevolent purposes to any person, corporation or community, unless such person, corporation or community is under the absolute control of the state, and that the appropriation attempted to be authorized by the bill under consideration is forbidden by section 34 of article V of our state constitution.”
With reference to this statement he says: “If the foregoing holding is still the law in Colorado, the whole pension scheme of allowances to former judges of this Court is unconstitutional and void.” If the whole judicial pension scheme is unconstitutional and void it is of course void as to plaintiffs Adams and White. With this question, as to the constitutionality of the entire scheme as embodied in the 1925 act and the 1939 amendment raised and before us for consideration, any distinctions that may exist between the situations of plaintiffs White and Adams and any other persons who have served, are now serving, or may hereafter serve as judges of the Supreme Court are irrelevant and immaterial, unless it first be either assumed or determined that there is power in the General Assembly, under some conditions, to provide for pensions for judicial officers. We may not make the assumption, for the question of the existence of the power is now before us. We must therefore determine as matter of law whether under
“A pension is not a matter of contract, and is not founded upon any legal liability. No man has a legal vested right to a pension; it is a mere bounty or gratuity given by the government in consideration or recognition of meritorious past services, or of loss or damage sustained in the public service and ‘springing from the appreciation and graciousness of the sovereign.’ It may be bestowed upon such persons and upon such terms as the law making body of the government prescribes. And ‘its payment must be made and accepted in exact conformity with the terms of the grant, and must be subject to all the limitations, conditions and exceptions therein contained.’ It is, at most, an expectancy granted by the law. And although existing pension laws may entitle one to a pension, the government may, at its pleasure, at any time, change the amount thereof or revoke or destroy it altogether.” 48 C.J. 786, §2.
Again it is to be observed that members of the judiciary have been pensioned under Anglo Saxon jurisprudence since the close of the eighteenth century. Pensions have been paid to our federal judges since 1869, and legislation authorizing pensions to state judges has been passed in nearly half of the states of the Union.
Judge Cooley says that liberal provisions may be made for men “who have performed” meritorious public services in the army and navy and that “The same may be said of a like recognition of valuable public services rendered by other persons: The question in every case is not one of power, but of prudence and public policy.” 1 Cooley on Taxation (3 ed.) pp. 189-190.
“The power to give rewards after the event for conspicuous public service, if it exists at all, cannot be limited to military service. If a man has deserved greatly of the Commonwealth by civil services, the pub-
lic advantage of recognizing his merit may stand on ground as strong as that for rewarding a general. We cannot foresee the possibilities of genius or distinguished worth and settle in advance the tariff at which its action shall be paid. * * * To a great extent the distinction must be left to the conscience of the Legislature.” Opinion of the Justices, 175 Mass. 599, 57 N.E. 675, 49 L.R.A. 564. The opinion of which this statement is a part bears the signature, among others, of Oliver Wendell Holmes. It is true that the Constitution of the state of Massachusetts contains no provisions similar to sections 28 and34 , article V, supra, but the Supreme Court of Illinois, which does have constitutional provisions similar to ours, held it was, nevertheless, applicable. Hagler v. Small, 307 Ill. 460, 138 N.E. 849.
By the act of 1925, which is general, the legislature prescribed the conditions to be fulfilled in order that a judge might have a right to a pension. These conditions were two fold: (a) Not less than ten years as judge of the Supreme Court must have been served. (b) The age of sixty-eight must have been attained before the expiration of such service. The conditions to be fulfilled in order to acquire a pensionable status under the 1939 act also were two fold: (a) Not less than ten years as judge of the Supreme Court must have been served. (b) The age of sixty-five must have been attained before the expiration of such service, or (c) If the judge had not attained the age of sixty-five upon the expiration of ten years of service he must live thereafter until he attained the age of sixty-five. From an examination of the two acts it is obvious that one who is eligible under the 1925 act, also is eligible under the 1939 act. Since the new act covers every possible case covered by the original, it unquestionably was the intention of the General Assembly that it should supplant the old act as a new coverage of its entire subject matter.
That White and Adams, in their ten years of service
Under the 1939 act they, at the time of their retirement, had served the required number of years and each has now attained the required age. Under said act they had only to wait until the expiration of the period intervening between their retirement and the time they reached the age of sixty-five years to become entitled to pensions. Save that they were not in office when the 1939 act was passed, their status differs in no respect from that of any judge now serving or who may hereafter serve and retire from office before he reaches the age of sixty-five; nor does it differ in any respect from that of judges who retired from office before the 1925 act was passed, and who, upon retiring had no pensionable status. Such status has no independent existence in and of itself, but is created by the act providing for pensions. Other former judges were within the terms of the 1925 act and have received pensions.
Until this case arose, the executive officers charged with making pension payments—here, defendant auditor and his predecessors in office—had recognized such former judges as possessing a pensionable status; had raised no constitutional objection to their right to pensions and have paid them in due course. If the General Assembly by the act of 1925 could fix conditions that had been fulfilled in the past, namely, ten years judicial service and attainment of the age of sixty-eight, under which such former judges would be entitled to pensions after the passage of that act, then by the 1939 act, it with equal reason might fix conditions under which Adams and White would be eligible; namely, ten years judicial service and attainment of the age of sixty-five, after which they would be entitled to pensions pursuant to the act, to be paid to them when they arrived at the established age. Construction of the act by legislative and executive officials over a long period of years was to the effect that this might be done.
It will be noted that the 1939 Act reduced the age limit from sixty-eight years, required by the 1925 Act, to sixty-five years, and made it unnecessary for a judge otherwise qualifying for the pension to be an incumbent in office at the time he attained the age necessary to establish his pensionable status. White served the full ten-year term, from 1909 to 1919, and became sixty-five years of age December 24, 1929. Adams, likewise, served the term of ten years, from 1925 to 1935, reaching the age of sixty-five December 25, 1938.
In recent years legislation providing for pensions and retirement compensation to large numbers of persons after their retirement from service as public officers, servants, employees, and agents of the state has been enacted by the General Assembly. Instances of this are the laws providing pensions for policemen and firemen and their dependents, and retirement compensation for teachers and for those state employees within the terms of the state employees retirement act. ‘35 C.S.A., chapter 163, sections 497 to 535, and Article 24, chapter 163, 1939 Cumulative Supplement to ‘35 C.S.A. (The last cited article provides inter alia for a state levy of two tenths of a mill for the payment of policemen‘s pensions and the act was upheld in Police Protective Ass‘n v. Warren, 101 Colo. 586, 76 P. [2d] 94).
All of the beneficiaries of these laws are paid benefits from revenues arising in whole or in part from the exercise of the state‘s power to tax. Even in those cases where partial payment is made by withholding a part of the salary derived from tax produced revenue it has been held that such amounts merely to a reduction in salary and that the funds so withheld to be applied to pensions are public funds. Pennie v. Reis, 132 U.S. 464, 10 Sup. Ct. 149, 33 L. Ed. 426. This case was cited with approval in People ex rel. v. Trustees, 103 Colo. 1, 82 P. (2d) 765. It may be noted also that the
Therefore, the questions become: 1. Under
It is pertinent to consider the nature of pensions and the basis on which they rest. In United States v. Hall, 98 U.S. 343, 25 L. Ed. 180, it is said: “Regular allowances paid to an individual by government in consideration of service rendered, or in recognition of merit, civil or military, are called pensions.” In Eddy v. Morgan, 216 Ill. 437, 75 N.E. 174, the Supreme Court of Illinois used these words: “A pension is a bounty springing from the graciousness and appreciation of sovereignty. It may be given or withheld at the pleasure of a sovereign power.”
Pensions for military service have been granted almost from the very inception of our government. In United States v. Hall, supra, the Court said: “Power to grant pensions is not controverted, nor can it well be, as it was exercised by the States and by the Continental Congress during the war of the Revolution; and the exercise of the power is coeval with the organization of the government under the present Constitution, and has been continued without interruption or question to the present time.” The court speaking further said: “Power existed in the States before the Constitution was adopted, and it would serve to undermine the public regard for our great charter if it could be held that it did not continue the same power in the Congress.” Powers that the states might and did grant to the federal government they may exercise unless prohibited by the federal Constitution or Constitutions of the respec-
The definitions of pensions above quoted recognize no distinction between the merit that may attach to military service and that which attaches to civil service. If there is a difference it is not in kind but in degree or extent only. The right of government to recognize and reward merit in public service is the basis on which all pensions must rest if they are to be upheld at all. If valuable public service has been rendered to the government or state by a soldier, a sailor, a judge, a teacher, a fireman, a policeman, or a civil service employee and the General Assembly determines and prescribes what shall constitute service of sufficient merit to raise a moral obligation on the part of the state to recognize it by the grant of a pension to the one who has rendered it, unless such grant shall clearly contravene some constitutional provision or be so palpably contrary to what honest and reasonable men of ordinary intelligence would deem a fitting and proper recognition of such merit as to amount to a mere arbitrary and fraudulent expenditure of public revenues, the matter rests in the sound discretion of the legislative branch of the government and with its exercise it is not the province of the courts to interfere.
The state is not bound in any case to provide for recognition of the meritorious service of judges or of any other kind of meritorious service even though it may clearly exist. It may within constitutional limits do so or may not do so at its election. A pension, therefore, is not a matter of right but, as has been said, a bounty “springing from the graciousness of the sovereign.” It is a reward of merit that the General Assembly determines presently to exist and if it may reasonably be
The attorney general relies strongly on the case of Mahon v. Board of Education, 171 N.Y. 263, 63 N.E. 1107, as supporting his position, which case also is the basis for the statement by Judge Dillon to the effect that “To be valid under constitutional requirements, the pensions must be conferred upon persons who at the time of receiving the right to them are officers or employees * * * *. They cannot be conferred upon persons who had previously to the grant, retired from the service.” 1 Dillon Mun. Corp. (5th ed.) §430.
The Mahon case is grounded directly upon the proposition that “There was no moral obligation on the City of New York to establish a pension system in favor of teachers,” and that the attempted benefits were “extra compensation,” which is forbidden by our Constitutional
Another point which reinforces the logic of the foregoing is that
The foregoing, we believe, sufficiently show that the 1939 Act as it affects White and Adams is not in contravention of
In the case of DeWolf v. Bowley, 355 Ill. 530, 189 N.E. 893, an act granting pensions to judges at age sixty-five,
If within the meaning of constitutional provisions, such as
It is contended that the 1939 act, as it affects White and Adams, is in effect an appropriation for a charitable or benevolent purpose to persons not under the absolute control of the state, and is, therefore, in specific violation of said
That pensions are not granted primarily for the benefit of the recipients thereof, but for the benefit of the state, in other words for the public good, may be admitted. If a pension has no reasonable relation to the public good it is of course a mere private grant and void. But if it serves a present public purpose it is not a mere private grant even though as an incident to the
It is argued that, even if the General Assembly has power to provide that pensions be paid to men serving when the 1939 law was passed, and to men who had theretofore acquired a pensionable status under the 1925 act on the ground that such pensions will serve a public purpose, that in no event may they be said to serve any public purpose, and hence cannot be upheld as to White and Adams. Neither of them had a pensionable status when their terms expired, for such a status cannot exist without a law to create it and there was no law in effect that created such a status for either of them when they retired from office. It is argued in support of the validity of the act, on the ground that it serves a public purpose as to those judges in office when the acts were passed, that it will operate subjectively upon them to induce them to retire from office before the infirmities of age deprive them of the ability to render further efficient service when otherwise, confronted with economic insecurity and with the uncertainty of regaining late in life a law practice surrendered upon entry into office might cause such men though conscious of their infirmities to continue in office to the detriment of the state, when otherwise they would retire and permit others able to render efficient service to fill their places. It is argued further that able men, who because of present economic loss and prospective economic insecurity late in life or of the difficulty and hazard of reestablishing themselves after being withdrawn for a long period of years from private business might hesitate to accept a judicial office, will be free, with a pension in prospect, to enter upon such service and the state may be benefitted thereby. Such matters have been noted by courts as proper for consideration in determining whether a public purpose is served.
In DeWolf v. Bowley, supra, the court said: “Pen-
We are unable to perceive wherein the objective effect upon an able man with economic doubts as to the advisability of his entering the judicial service would be less upon his observing that the state had recognized as it did the merit incident to the service of ex-judges after their retirement from office under the 1925 act, and of White and Adams as it now seeks to do after their retirement from office, than to observe that it had excluded them and limited its recognition by pensions to others of perhaps no greater merit who happened not to
Defendant argues that the firemen‘s pension case, People ex rel. v. Trustees, 103 Colo. 1, 82 P. (2d) 765, determines that a pensionable status at the time of the amendment increasing the compensation to firemen‘s widows was passed, is an indispensable prerequisite to the receiving of the increase. Ordinary care in reading the case will disclose that there was no such issue involved. That they possessed a pensionable status under the original act when the amendment was passed was not questioned by either party. Furthermore, the controversy there differed from the present one in that it was between contending claimants to a fund. The right of the state to create the fund to pay pensions was not controverted. In the instant case the right of the state to pay at all is made an issue. The firemen‘s case was a mandamus action to compel payment of increased pensions granted to widows of firemen deceased at the time of the amendment providing for the increase, whose widows had a status entitling them to a pension under the act in force at the time of the death of their husbands. It was determined in favor of the relators against the principal objection that the increased payments would violate
If and in so far as the firemen‘s case may be considered as having a bearing on the instant case at all it is against the defendant‘s contentions. As pointed out we held that though the increase was granted when the conditions that created the pensionable status for relators all were fulfilled before the amendment, nevertheless the increase was not a gratuity. We cited what we then considered, and now consider, well reasoned authority approving the granting of increased pensions to
Judgment affirmed.
MR. CHIEF JUSTICE HILLIARD, MR. JUSTICE BOCK and MR. JUSTICE BURKE, dissent.
MR. JUSTICE BURKE dissenting.
I am unable to concur in the conclusion of the court. I think the issue has been lost in a wilderness of words. For example, I agree a man must be alive to get a pension, but doubt if that necessity is dependent upon adjudication. I agree that if no one can be pensioned defendants in error cannot be; at least no adequate answer to that assertion occurs to me. That question, however, is not here. We might with equal propriety declare that unless the constitutional sections involved were regularly adopted the act of 1939 did not violate them, and then address ourselves to the validity of their passage. The constitutionality of the act of 1925 is not before us. It is, as appears from the opinion, and more clearly from the record, simply dragged in by a casual comment of counsel. That this is an appellate tribunal seems to have been overlooked. An issue can only get before us by plea and adjudication in the trial court, inclusion in the writ, presentation by assignment and final
Decisions of the federal courts, and others not controlled by constitutional prohibition similar to ours, are wholly inapplicable. Neither are we concerned with the numerous attempts to define pensions. Most of these are applicable only to the particular facts of the particular case. Since such grants are of many kinds, each based upon its own peculiar considerations, such as to schoolteachers, firemen, soldiers, policemen, and persons disabled in the performance of a public, but not mandatory, service, the particular cases have small value save to the authors of text books. Converting an opinion into a treatise is a task for a Marshall.
The sole issue here is, Does the act of 1939 violate
My position is that there must be some reasonable theory of public benefits. If there be such the soundness of it rests with the legislature. If, as here, there is no such theory, the grant is purely private and the constitutional inhibition stands. The only logical suggestions of public benefits are those mentioned and repudiated in the court‘s opinion. Upon them Judge Dillon‘s conclusion rests but they have no application to defendants in error. They could neither have come into the service,
MR. CHIEF JUSTICE HILLIARD and MR. JUSTICE OTTO BOCK concur in the foregoing.
