Elaine Ann Gold and Amy Jacobson Shaye are teachers for the DeKalb County School District. In 2009, the School District suspended its contributions to a tax-sheltered annuity plan, which Gold and Shaye allege was an employee-benefit plan established by the School District as an alternative to the federal Social Security system. Gold and Shaye, on behalf of themselves individually and a class of similarly situated teachers (collectively, “Gold”), sued the School District, the DeKalb County Board of Education, and the members of the Board and the School District superintendent in their official capacities (collectively, the “District”), asserting claims for declaratory judgment, money had and received, unjust enrichment, promissory estoppel, conversion, breach of contract, and breach of the implied covenant of good faith and fair dealing. The District moved to dismiss Gold’s complaint for failure to state a claim, arguing that the doctrine of sovereign immunity barred each of Gold’s claims. The trial court denied the motion, and the District appeals. We agree with the
Accepting Gold’s well-pleaded material allegations as true,
In 1983, the Board established a “Tax Sheltered Annuity Plan (Alternative to Social Security)” (the “TSAPlan”), which according to the complaint, demonstrated the Board’s intent to provide contributions approximating “that which the Board would be paying pursuant to the Social Security Act of 1934.”
At an emergency meeting on July 27, 2009, the Board suspended the School District’s payment of contrihutions to the accounts of employee-participants in the TSA Plan,
The District filed a motion to dismiss Gold’s amended complaint on the primary ground that Gold’s claims were barred by sovereign immunity. The trial court denied that motion, and the District appeals.
In reviewing these arguments, we recognize that a motion to dismiss for failure to state a claim pursuant to OCGA § 9-11-12 (b) (6), as invoked by the District, should not be sustained unless “the allegations of the complaint reveal, with certainty, that the plaintiff would not be entitled to relief under any state of provable facts asserted in support of the complaint.”
The Board, the School District, the Board’s members, and the superintendent
(a) We first consider whether sovereign immunity bars Gold’s declaratory-judgment claim. Gold seeks a determination of the District’s obligation to fund “the Alternative Plan to Social Security, known as the TSAPlan, for the years 2009, 2010, 2011, and 2012.”
Our Constitution and statutes do not provide for a blanket waiver of sovereign immunity in declaratory-judgment actions; and this Court has found that “sovereign immunity is applicable to protect state agencies in declaratory judgment actions ... .”
The State’s sovereign immunity has been specifically waived by the General Assembly pursuant to OCGA § 50-13-10, which is part of the Administrative Procedure Act.
Gold contends, rather, that her declaratory-judgment claim is sustainable because she sought declaratory relief “correlative to an action arising from a breach of a written contract.” In support of her position, Gold relies upon this Court’s decision in Upper Oconee Basin Water Authority v. Jackson County.
Indeed, we noted in Upper Oconee that “[i]t is clear that, nomenclature aside, the essence of the County’s claim is for breach of
In this case, the differences between Gold’s claim for breach of contract and her claim for declaratory judgment are more than a matter of mere nomenclature. Unlike in Upper Oconee, Gold seeks to recover damages for the breach of contract.
In an alternative argument, Gold maintains that sovereign immunity does not bar declaratory relief in suits challenging the constitutionality of legislative acts. Gold refers to numerous cases in which declaratory judgment was sought in conjunction with a request for injunctive relief.
(b) The District further argues that because Gold does not identify a specific waiver of sovereign immunity for her claims of money had and received, unjust enrichment, promissory estoppel, and conversion, these claims must also be dismissed. We agree.
The State, as this Court has previously ruled, has not waived its sovereign immunity in actions for money had and received
Gold contends that she has nevertheless set forth a viable claim of equitable relief because our Supreme Court held in Quillian v. Employees’ Retirement System of Georgia
As to Gold’s conversion claim, she alleges in her complaint that this is an action in tort.
In light of the foregoing, we find that the trial court erred in failing to grant the District’s motion to dismiss Gold’s claims for money had and received, unjust enrichment, promissory estoppel, and conversion.
2. Gold’s complaint also includes an action for breach of contract and for the associated implied covenant of good faith and fair dealing. As we have previously noted, our Constitution waives the State’s sovereign immunity for “any action ex contractu for the breach of any written contract.”
The District contends that the trial court erred in failing to dismiss Gold’s contract claim because Gold fails to point to any written contract on which the claim rests; the Board’s policies and resolutions do not have the full force and effect of law; and the retirement plan in this case was established by the TSAPlan which, under the terms alleged by the complaint, may be amended or terminated by the Board at any time. Gold responds that the 1979 Resolution and the Board’s published policies became part of the class member’s contract of employment when class members performed services while the 1979 Resolution and policies were in effect.
It is well established that
a statute or ordinance establishing a retirement plan for government employees becomes a part of an employee’s contract of employment if the employee contributes at any time any amount toward the benefits he is to receive, and if the employee performs serviceswhile the law is in effect — 54
Thus, “[t]he payment of retirement benefits in compliance with our statutes is not a gratuity, but is an incidence of employment.”
the ordinance or statute becomes part of the contract of employment and is a part of the compensation for the services rendered so that an attempt to amend the statute or ordinance and reduce, or eliminate, the retirement benefits the employee is to receive violates the impairment clause of the state constitution.56
Nevertheless, when the statute establishing the benefits plan provides that it is subject to change, “there [is] no contract that the plan of... benefits should never be changed.”
We applied these principles to a retirement plan established by a school board in Murray County School District v. Adams.
In characterizing the Murray County School Board’s action in approving the employee-benefit package, we assumed, but did not decide, that it was a legislative action.
The District also argues that if the Board’s retirement-benefits plan could be part of the Class members’ contract of employment, the complaint shows that the TSAPlan provides that it may be amended or terminated at any time, and it follows that, as in Adams, the challenged change to the benefit plan was not a breach of the employment contract.
But here, the complaint shows that the Board resolved in 1979 to give its employees two-years’ notice before reducing or terminating the funding provision to the alternate plan for Social Security, and the TSA Plan is alleged to be designated the alternative to Social Security. If there are apparent inconsistencies between the specific-notice requirement of the 1979 Resolution, stated Board policies,
In sum, we find that the trial court erred in denying the District’s motion to dismiss Gold’s claims for declaratory judgment, money had and received, unjust enrichment, promissory estoppel, and conversion. However, we conclude that the trial court did not err in denying the District’s motion to dismiss Gold’s claims for breach of contract and the implied covenant of good faith and fair dealing.
Judgment affirmed in part and reversed in part.
Notes
See Love v. Morehouse College, Inc.,
After voting to leave Social Security, the Board initially contracted with Variable Annuity Life Insurance Company to make payments to be applied such that the School District’s employees would “at all times have a 100% vested and non forfeitable interest in accumulated amounts attributable to Employer contributions.”
The District has stated that, in light of federal regulations governing alternate retirement systems for state and local employees, contrihutions to the TSAPlan were not suspended for certain School District employees. That not all contributions were suspended is consistent with Gold’s amended Class designation, which includes only those employees for whom the School District suspended TSAPlan contributions. We note, however, that for purposes of this appeal neither party relies on federal law or regulations. In particular, Gold has not suggested that federal law or regulations precluded the Board from suspending School District contributions to the TSAPlan for the account of the class members.
Although not final, the trial court’s order denying the District’s motion to dismiss is directly appealable under the collateral-order doctrine. See Bd. of Regents of the University Sys. of Ga. v. Canas,
LaSonde v. Chase Mortgage Co.,
Bonner v. Peterson,
See Bonner,
See Bd. of Pub. Safety v. Jordan,
The Board’s members and the superintendent were sued in their official capacities.
See Cameron v. Lang,
See DeFloria,
State Bd. of Educ. v. Drury,
Id. (punctuation omitted).
Ga. Const., Art. I, Sec. II, Par. IX (e).
The amended complaint was filed on June 16, 2011.
Live Oak Consulting, Inc. v. Dep’t of Cmty. Health,
See id. at 205, n. 1. See also OCGA § 50-13-10; IBM Corp. v. Evans,
OCGA § 50-13-1 et seq.
Live Oak Consulting,
OCGA § 9-4-1 et seq.; see Lansford v. Cook,
Id.
Id.
Id. at 410-411.
Ga. Const., Art. I, Seo. II, Par. IX (c). We consider the trial court’s ruling on the District’s motion to dismiss Gold’s claim for breach of contract in Division 2, infra.
Upper Oconee,
Id. at 413 (1).
Id.
Compare id. at 413 (1).
Ga. Const., Art. I, Sec. II, Par. IX (c).
See Cobb County v. Ga. Transmission Corp.,
Id. at 216 (1). Mandamus actions also do not fall within the rule that the State may not be sued without its consent. See Southern LNG, Inc.,
See Higdon v. City of Senoia,
See Miller v. Dep’t of Public Safety,
IBM Corp.,
See Drury,
Watts v. City of Dillard,
Ga. Dep’t of Community Health v. Data Inquiry, LLC,
Dollar,
See Tackett v. Ga. Dep’t of Corr.,
Compare Dukes v. Bd. of Trustees for the Police Officers Pension Fund,
Id. at 255 (5).
Id.
Palmer v. State,
According to our Supreme Court, the widow of Judge Quillian “protests the recalculation of Judge Quillian’s pension hy the Employees’ Retirement System after his retirement.” Quillian,
See OCGA§ 51-10-1.
See Romano v. Ga. Dep’t of Corr.,
For purposes of the GTCA, “State” is defined as “the State of Georgia and any of its offices, agencies, authorities, departments, commissions, hoards, divisions, instrumentalities, and institutions, but does not include counties, municipalities, school districts, other units of local government, hospital authorities, or housing and other local authorities.” OCGA § 50-21-22 (5) (emphasis supplied). See also Chisolm v. Tippens,
See Dollar,
Ga. Const., Art. I, Sec. II, Par. IX (c).
Withers v. Register,
Arneson v. Bd. of Trustees of Employees’Retirement Sys. of Ga.,
Murray County Sch. Dist. v. Adams,
Pritchard v. Bd. of Comm’r of Peace Officers Annuity & Benefit Fund of Ga.,
Id. at 221.
Id.
Id. at 220.
Id. at 223 (1).
Id. at 222 (1).
Glynn County Bd. of Educ. v. Lane,
OCGA § 20-2-59.
See generally Davis v. Griffin-Spalding Cty., Ga.,Bd. of Educ., 445 FSupp. 1048, 1053-54 (N.D. Ga. 1976) (local school board must yield to state supervision).
See, e.g., OCGA § 20-2-242 (“The members and executive officers of local governing boards shall comply with, execute, and enforce all laws and all policies, rules, standards, and regulations adopted by the State Board of Education pursuant to this article in order to be eligible to receive state funds under this article.”).
See, e.g., Tackett,
OCGA § 13-2-2 (4); see Horwitz v. Weil,
The complaint does not contain the entire employment contract. The movant in a motion to dismiss for failure to state a claim upon which relief can be granted must show “that the claimant could not possibly introduce evidence within the framework of the complaint sufficient to warrant a grant of the relief sought.” Scouten v. Amerisave Mortgage Corp.,
See generally Rohm & Haas Co. v. Gainesville Paint & Supply Co.,
See Dept. of Transp. v. APAC-Georgia,
