FERGUSON, APPELLEE, v. THE STATE OF OHIO, APPELLANT.
No. 2015-1975
Supreme Court of Ohio
September 28, 2017
Slip Opinion No. 2017-Ohio-7844
DEWINE, J.
Submittеd February 28, 2017. APPEAL from the Court of Appeals for Cuyahoga County, No. 102553, 2015-Ohio-4499.
[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Ferguson v. State, Slip Opinion No. 2017-Ohio-7844.]
NOTICE
This slip opinion is subject to formal revision before it is published in an advance sheet of the Ohio Official Reports. Readers are requested to promptly notify the Reporter of Decisions, Supreme Court of Ohio, 65 South Front Street, Columbus, Ohio 43215, of any typographical or other formal errors in the opinion, in order that corrections may be made before the opinion is published.
SLIP OPINION NO. 2017-OHIO-7844
FERGUSON, APPELLEE, v. THE STATE OF OHIO, APPELLANT.
[Until this opinion appears in the Ohio Official Reports advance sheets, it may be cited as Ferguson v. State, Slip Opinion No. 2017-Ohio-7844.]
Workers’ compensation—Appeals—
(No. 2015-1975—Submitted February 28, 2017—Decided September 28, 2017.)
APPEAL from the Court of Appeals for Cuyahoga County, No. 102553, 2015-Ohio-4499.
DEWINE, J.
{¶ 1} Under Ohio law, an employer may appeal a determination by the Industrial Commission that an employee has the right to participate in the workers’ compensation fund. Although it is the employer who files the appeal in the common pleas court, the employee is the plaintiff. In 2006, the legislature enacted a provision allowing an employee to dismiss an employer-initiаted appeal only with the consent of the employer. 2006 Am.Sub. S.B. No. 7 (amending
{¶ 2} The court of appeals determined that the consent provision violates the separation-of-powers doctrine embodied in the Ohio Constitution, the Equal Protection Clauses of the Ohio and federal Constitutions, and the Due Course of Law and Due Process Clauses of the Ohio and federal Constitutions. We disagree and reverse the judgment of the court of appeals.
BACKGROUND
{¶ 3} In the proceeding below, the Eighth District Court of Appeals affirmed the trial court‘s judgment declaring the consent provision of
{¶ 4} Ferguson brought two separate workers’ compensation claims alleging thаt he had suffered injuries while working at Ford Motor Company. The Industrial Commission awarded benefits for both claims, and Ford appealed the determinations to the common pleas court.
{¶ 6} Prior to the scheduled trial date, Ferguson sought to dismiss the claims. Ford refused to consent to the dismissal as required by {¶ 7} After his appeal was dismissed, Ferguson again sought leave to amend his complaint to add a declaratory-judgment claim challenging the consent provision. When the trial court denied this motion, Ferguson filed a declaratory-judgment action against the state in a separate proceeding. It is that declaratory-judgment action that we consider today. The trial court has stayed the original consolidated case pending a resolution of this case. {¶ 8} In his declaratory-judgment action, Ferguson argued that the consent provision in {¶ 9} The trial court held that the consent provision is unconstitutional “on the grounds of due process and equal protection, and violates the doctrine of separation of powers.” As for the due-process and equal-protection arguments, the trial court gave Ferguson more than he sought, concluding that the consent provision violates both the Ohio Constitution—which Ferguson had alleged—and the United States Constitution—which he had not. On appeal by the state, the court of appeals affirmed the trial court‘s judgment in all respects. {¶ 10} The cause is now before this court upon our acceptance of the state‘s discretionary appeal. 145 Ohio St.3d 1421, 2016-Ohio-1173, 47 N.E.3d 165. {¶ 11} {¶ 12} The appeal begins with the filing of a notice of appeal. {¶ 13} But it is not all-burden-no-benefit for claimants. As the appeal progresses, the commission‘s award to the claimant and related payments continue. {¶ 14} There is also some protection for the employer. If the court ultimately finds that compensation or benefits should not have been paid, then the amounts already paid are charged to the state‘s surplus account. {¶ 15} This case concerns the interplay between the workers’ compensation appellate process and {¶ 16} We expanded this holding in Kaiser v. Ameritemps, Inc., 84 Ohio St.3d 411, 415, 704 N.E.2d 1212 (1999), concluding that a claimant‘s ability to voluntarily dismiss was not limited to instances in which the trial court approved the dismissal pursuant to {¶ 17} In Fowee v. Wesley Hall, Inc., 108 Ohio St.3d 533, 2006-Ohio-1712, 844 N.E.2d 1193, ¶ 19, we made clear that the saving statute, {¶ 18} Shortly after the Fowee decision, the legislature amended {¶ 19} Can the General Assembly, which established the process in {¶ 20} {¶ 21} These rules, to the extent that they would by their nature be clearly inapplicable, shall not apply to procedure * * * in all other special statutory proceedings; provided, that where any statute provides for procedure by a general or specific reference to all the statutes governing procedure in civil actions such procedure shall be in accordance with these rules. {¶ 22} The court of appeals concluded that a workers’ compensation cаse was not a special statutory proceeding within the meaning of {¶ 23} Plainly, what we said in Robinson was correct: the workers’ compensation appeal provided for in {¶ 25} In Robinson, we addressed whether {¶ 26} {¶ 27} There is no conflict between a statute and the Civil Rules—and thus no separation-of-powers concern—in an instance when the Civil Rules by their own terms defer to statutоry law. The Civil Rules allow the General Assembly to implement procedural rules in special statutory proceedings and recognize that such statutes take precedence when they render the Civil Rules inapplicable. An {¶ 28} The court of appeals also concluded that the consent provision is unconstitutional under the Equal Protection Clauses of both the Ohio and federal Constitutions because it creates a distinction between claimants in employer-initiated appeals in workers’ compensation cases and plaintiffs in other types of {¶ 29} {¶ 30} Although citizens are entitled to equal protection under the law, governments are “free to draw distinctions in how they treat certain citizens. ‘The Equal Protection Clause does not forbid classifications. It simply keeps governmental decisionmakers from treating differently persons who are in all relevant respects alike.’ ” Park Corp. v. Brook Park, 102 Ohio St.3d 166, 2004-Ohio-2237, 807 N.E.2d 913, ¶ 19, quoting Nordlinger v. Hahn, 505 U.S. 1, 10, 112 S.Ct. 2326, 120 L.Ed.2d 1 (1992). {¶ 31} The first step in analyzing a statute on equal-protection grounds is determining the appropriate standard of review. Arbino v. Johnson & Johnson, 116 Ohio St.3d 468, 2007-Ohio-6948, 880 N.E.2d 420, ¶ 64. Where, as here, the classifiсation does not involve a fundamental right or a suspect class, we will uphold the classification if it is rationally related to a legitimate government interest. Conley v. Shearer, 64 Ohio St.3d 284, 289, 595 N.E.2d 862 (1992). Under rational-basis review, we grant “substantial deference” to the General Assembly‘s predictive judgment. State v. Williams, 88 Ohio St.3d 513, 531, 728 N.E.2d 342 (2000). {¶ 32} Rational-basis review is easily satisfied in this case. In enacting the consent provision, the legislature addressed the anomalous circumstance created by the workers’ compensation system: that the appellee (the employeе) was able to dismiss the appellant‘s (the employer‘s) appeal. Thus, while on the one hand, the consent provision causes workers’ compensation claimants to be treated differently from plaintiffs in other types of cases, on the other hand, it corrected the situation so that workers’ compensation appellants are now treated the same as other appellants. {¶ 33} In enacting the consent provision, the legislature advanced legitimate state interests in limiting improрer payments made during the pendency of appeals and in avoiding unnecessary delay in the appeal process. Indeed, in Thorton, 121 Ohio St.3d 124, 2009-Ohio-360, 902 N.E.2d 482, at ¶ 13, this court {¶ 34} Because the payment of awarded compensation or medical benefits continues during an appeal, {¶ 35} The ability of claimants to use {¶ 36} Another consideration is the finanсial effect on employers. Self-insuring employers make outlays that may take years to be refunded. State-risk employers suffer the detriment of having awards charged to their experience until their accounts are adjusted for overturned awards. See {¶ 37} Finally, the state has a legitimate interest in avoiding unnecessary delays in the appeal process. The General Assembly in {¶ 39} The classification vis-à-vis other civil plaintiffs is especially reasonable given the differences between the workers’ compensation system and the civil-justice system. “[W]orkers’ compensation laws are the result of a unique compromise between employees and employers.” Stetter v. R.J. Corman Derailment Servs., L.L.C., 125 Ohio St.3d 280, 2010-Ohio-1029, 927 N.E.2d 1092, ¶ 54. “[T]he Ohio Constitution itself draws the classification between persons who, as employees, are injured on the job and those persons who are injured other than in the workplace.” Id. at ¶ 83. {¶ 40} “We will set aside legislative classifications only if they are ‘based solely on reasons totally unrelated to the pursuit of the State‘s goals and only if no grounds can be conceived to justify them.’ ” Simpkins v. Grace Brethren Church of Delaware, Ohio, 149 Ohio St.3d 307, 2016-Ohio-8118, 75 N.E.3d 122, ¶ 48 (lead opinion), quoting Clements v. Fashing, 457 U.S. 957, 963, 102 S.Ct. 2836, 73 L.Ed.2d 508 (1982). Because the classification made by the consent provision serves a legitimate state interest, it does not violate the equal-protection guarantees of the Ohio and federal Constitutions. {¶ 41} We turn to the question whether the consent provision violates the federal Constitution‘s Due Process Clause and the Ohio Constitution‘s Duе Course of Law Clause. The {¶ 42} The court of appeals was not clear whether it was providing a procedural-due-process analysis or a substantive-due-process analysis. A procedural-due-process challenge concerns the adequacy of the procedures employed in a government action that deprives a person of life, liberty, or property. The court of appeals determined that Ferguson had a property interest in his “cause of action.” 2015-Ohio-4499, 42 N.E.3d 804, at ¶ 34-35. But the court took it no further. “The fundamental requirement of due process is the opportunity to be heard ‘at a meaningful time and in a meaningful manner.’ ” Mathews v. Eldridge, 424 U.S. 319, 333, 96 S.Ct. 893, 47 L.Ed.2d 18 (1976), quoting Armstrong v. Manzo, 380 U.S. 545, 552, 85 S.Ct. 1187, 14 L.Ed.2d 62 (1965). Accord United Tel. Credit Union v. Roberts, 115 Ohio St.3d 464, 2007-Ohio-5247, 875 N.E.2d 927, ¶ 13. The court below did not conclude, and Ferguson does not argue here, that Ferguson lacked the opportunity to hаve his case heard in a meaningful time or manner. {¶ 43} Rather than concluding that Ferguson was denied a property right due to a failure of procedure, the court held that the legislative enactment itself restricts the right of an injured employee to dismiss his complaint without the consent of the employer. 2015-Ohio-4499, 42 N.E.3d 804, at ¶ 34. Because this is a challenge to a generalized legislative determination, it is best characterized as a substantive-due-process claim. Our analysis of the equal-protection claim gives awаy the ending. Under both state and federal due-process analysis, laws like this one that do not infringe upon fundamental rights will be upheld if they are rationally related to a legitimate state interest. See Arbino, 116 Ohio St.3d 468, 2007-Ohio-6948, 880 N.E.2d 420, at ¶ 48-49. This is the same analysis we applied in our equal-protection review. {¶ 44} The General Assembly saw what it viewed as an area of concern—that a claimant in an employer-initiated workers’ compensation appeal could unilaterally prolong the appeal process for the sole purpose of guaranteeing the continued receipt of benefits for at least an additional year. This resulted in a needless extension of a process designed to run quickly, financial effects on the system as a whole, and a waste of judicial resources. And so, the General Assembly changed the law. Because the amendment to {¶ 45} The consent provision of Judgment reversed. KENNEDY, FRENCH, O‘NEILL, and FISCHER, JJ., concur. O‘CONNOR, C.J., and O‘DONNELL, J., concur in judgment only. Seaman & Associates, David L. Meyerson, and Shaun H. Kedir, for appellee. Michael DeWine, Attorney General, Eric E. Murphy, State Solicitor, and Michael J. Hendershot, Chief Deputy Solicitor, for appellant. Philip J. Fulton Law Office, Philip J. Fulton, and Chelsea Fulton Rubin, urging affirmаnce for amici curiae Ohio Association for Justice and Ohio Association of Claimants’ Counsel. LoPresti, Marcovy & Marotta, L.L.P., Thomas P. Marotta, and Michael S. Lewis, urging reversal for amicus curiae Automation Tool & Die, Inc. Garvin & Hickey, L.L.C., Preston J. Garvin, and Michael J. Hickey, urging reversal for amicus curiae Ohio Chamber of Commerce. Bricker & Eckler, L.L.P., and Sue A. Wetzel, urging reversal for amicus curiae National Federation of Independent Business/Ohio. Vorys, Sater, Seymour & Pease, L.L.P., and Robert A. Minor, urging reversal for amici curiae Ohio Self-Insurers Association and Ohio Council of Retail Merchants. Chad A. Endsley, Leah Curtis, and Amy Milam, urging reversal for amicus curiae Ohio Farm Bureau Federation.
Separation of Powers
Equal Protection
Due Process and Due Course of Law
CONCLUSION
