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Nelson v. Peterson
313 N.W.2d 580
Minn.
1981
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*1 NELSON, al., Appellant, Jeffrey et B. Commissioner-desig PETERSON,

Harry Department of Labor

nate Minnesota Industry, al., Respondents. et

No. 81-737.

Supreme of Minnesota. Court

Dec. 1981. Corwin, Park,

Gregg Louis for M. St. appellant. ‍​​‌‌‌‌​‌​‌‌​‌​​‌​​​​​‌​​‌​​‌‌‌​​​​‌​‌‌‌‌‌​​​​​​​‍Gen., Atty. Erica Spannaus,

Warren Gen., Paul, Jacobson, Sp. Atty. Asst. St. respondents.

TODD, Justice. appeal by plaintiffs, who are

This is an petitioners’ attorneys Department for the Industry, de- of Labor and from an order claring that Act of June 103, 1981 Laws Minn.Sess. Serv. 1611, 16761 is constitutional. ‍​​‌‌‌‌​‌​‌‌​‌​​‌​​​​​‌​​‌​​‌‌‌​​​​‌​‌‌‌‌‌​​​​​​​‍We find sec- persons positions tion 103 denies protection guar- plaintiffs equal of the laws and Min- anteed both the United States constitutions, accordingly, nesota reverse.

Chapter passed by a the 1981 346 is bill Legislature comprehen- Minnesota Comрensation sively the Workers’ revises Among system in Minnesota. changes, specifically excludes cer- this bill Compensa- tain in the Workers’ Department of Labor tion division of eligible ap- Industry being from compensation judges. pointment as provides: Section attornеy acting pursuant No Section appointed shall be hired or 176.261 compensation judge for a of two following years termination of service with the division. (1980) provides: 176.261

Minn.Stat. § 176.262. § To be codified at Minn.Stat. *2 581 by or requested employer every When an an attorney, compensation state defensе dependent, employee or his the commis- counsel the attorney and in division department initially pass. Thus, sioner of the of and must every compensa- labor industry may designate of judge appointed one or more tion from the division par- must, employeеs necessity, the to advise that spent division of have some ty time, brief, rights chapter, petitioner’s of his and as of under however aas possible adjusting attorney. compensation far as to assist in dif- The new workers’ parties. bill person compensation ferences the The also states that judges between may appear must designated person so in in “be learned in the law have [and] knowledge demonstrated any proceedings chapter under this the of workers’ com- * * pensation representative 1,1981, laws *.” Junе party. adviser of Act of or the 346, 2 case, party repre- (amending section In such need Minn.Stat. the not be 15.052, (1980)). section 1 attorney § by sented an at law. parties agree The that the parties standard of By stipulation, agreed both applicable review in the instant case is the acting pursuant that to section familiar rational basis we recently test. As only petitioners represent 176.261 work- in stated in v. Guilliams Commissioner of Rev compensation proceedings. ers’ enue, 138, (Minn.1980), 299 N.W.2d 142 only section 103 excludes at- division torneys reprеsent who in work- This court has listed three factors in compensation proceedings. Attorneys ers’ measuring statutory classification regularly represent against equal protection requirement: division who the the state of Minnesota defendant in such “(1) separаte The distinctions which proceedings, special attorney the assistant those included within the classification general representing ‍​​‌‌‌‌​‌​‌‌​‌​​‌​​​​​‌​​‌​​‌‌‌​​​​‌​‌‌‌‌‌​​​​​​​‍Special the in Fund from those excluded must not be mani- cases, (who Compensation such the Counsel arbitrary festly or but fanciful must be supervises ap- the division genuine substantial, thereby pro- proves settlements), supervisor, his viding a natural and reasonable basis to eligible all judgeships. legislation justify adapted peculiar Furthermore, private attorneys rep- who needs; (2) conditions and the сlassifica- resent plaintiffs either or defendants genuine tion must be or relevant to the matters, workers’ even if law; is, purpose of the that there must they represent par- exclusively type one of be an evident between connection the ty, are eligible. also peculiar distinctive needs to the class prescribed (3) remedy; pur- the the undisputed The state an offered affidavit pose be of statute must one that every compensation to the judge effect that can legitimately attempt state currently sitting previous on bench had achieve.” experience. petitioner’s as a section 176.261 attorney. State, quoting Brewing The record and oral Miller 284 Co. practice further (Minn.1979).2 disclosed that in the N.W.2d We do not pass workers’ division judgment upon was and is sit to wisdom of a rеquire attorney every particular legislative hired that into scheme. We are however, begin bound, division to employment by his tenure of our constitutional man- petitioners’ attorney. is, as a position inquire That date to into the of arbitrariness effect, entry-level an through legislative one we classifications. now do. This legislature 2. We upon independent do not find that recent United States based its own Supreme legislative Court decision State of Minnesota evaluation Under facts. Guil Creamery Co., liams, proposi v. Clover Leaf 449 U.S. we continue to adhere to (1981), analyze S.ct. 66 L.Ed.2d 659 our alters tion. We therefore record in analysis Leaf, solely purpose under In Clover Guilliams. for the case more limited that, long-held proposition rationality, regard court determining reiterated the without doctrine, equal protection wisdom, as a challenged legislative matter of federal of the classi judgment a court is not free to substitute its fications. challenged the wisdom of the statute for that legis- Initially, argues, the state purposes of this accept, for Initially, believed” that the attor- lature “could have general’s3 assertions attorney opinion, the likely by 103 are more neys excluded section to be served attempted purposes as to attorneys. eligible than the justifi- to be biased offers two The state by 103. at- argument runs that section 176.261 provision: ineligibility cations for likely to be convinced torneys more per- appearance or any to eliminate *3 than of an the merits employee’s judges are biased compensation ception that attоrneys, section 176.261 because the other employees, and of in favor employ- solely in favor of attorneys argue backgrounds past to broaden than a paid by the state rather ees and are compensation judges. Cer- experiences of they less are particular client. purposes, legitimate satis- tainly are these guns,” as “hired likely to view themselves in the Guilliams test. factor fying the third employ- judges to favor likely more as purposes are Although a statute’s Appellants respond employers. ees over may be found to be un legitimate, it still equal force argument applies with that this the means cho constitutionally defective if attorneys, state-employed defense to the arbitrary purposes are or those sen to affect argue only side оf a case and who also one 93, Bradley, 440 U.S. Yet, Vance irrational. paid by state to do so. these are 942, (1979). 939, 171 59 L.Ed.2d 99 prohibited S.Ct. from be- attorneys are not state define this factors The first two Guilliams judges. coming compensation as to the constitution requirements court’s argu- state has not answered The legislative classifications. ality the chosen of ment, although might assert one incapable satisfy 103 is of Because section closely attorneys are more state’s defense factors, find that we ing these two 176.- analogous guns” to “hired than section unconsti and therefore is irrational defense attorneys in that the state’s tutional. being paid by “their client.” assertion, is, but it admittedly, a weak candidates for This 103 classifies Section highlight unpersuasiveness of catego serves to judgeships into two gun” аrgument. Private attor- currently “hired state-employed attorneys ries: consistently represent one side in neys who petitioner’s attor serving section 176.261 as us, just likely litigation, it seems to ineligible period a neys, who are made prejudiced in favor of the merits ser to bеcome “following termination of years of two state-employed attor- division,” that side as are the and all other candi of vice with the Yet, suffers neys. even this statement dates, eligible. category The latter who are as defendants’ as- repre the samе weakness state-employed attorneys from includes generali- defendant, they very are ‍​​‌‌‌‌​‌​‌‌​‌​​‌​​​​​‌​​‌​​‌‌‌​​​​‌​‌‌‌‌‌​​​​​​​‍both crude well as sertion: senting state as unpersuasive, and singularly It is exclusively representing zations. private integri- potentially quite destructive of employees. The state employers or either among which, claims, judiciary, distinguish ty of the justifications it offers three judicial appoint- candidates for potential classifications as a legitimate these serve to salary of of with- purposes ment on the basis source achieving the asserted of of means considering the individual candidate. out the section. attorney produce, in the division must be nor did our own that every state did not 3. The reveal, history judge- any legislative ineligible investigation for a declared ship two-year tending support assertions as to the state’s for a after he has left division, legislative purpose. attorney once because division every attorney. petitioner’s a result as a Such served would, least, very sect. 103. Al- of June 4. Act to conflict with at the seem upon though general requirement do not rest our decision we that com- new bill’s the pensation judges ambiguity ground, recognize patent a be learned impinges upon its constitutionali- law, largest pool statute which ty: because it would eliminate section, including reading literal оf the qualified candidates. text, quoted phrase to conclude leads one justification genuine The asserted is that or second relevant the asserted statuto- legitimately legislature “may be- Moreover, ry purposes. we find pub- section 103 would increase lieved” that separate distinctions which those included system by removing lic confidence in the within the strictures section 103 from having apparent impropriety com- manifestly excluded are arbitrary and pensation judges deciding presented cases reasоns, fanciful. For these we hold that colleagues. to them their recent former section 103 equal protection violates the “revolving cites state the federal door” guarantees of the United States and Minne- regulations prohibit some former fed- sota сonstitutions. appearing eral from before their Accordingly, we reverse the order agencies adjudicative proceed- former district court. Yet, ings. these conflict of interest stat- operate government utes to bar all former attorneys regаrdless of they whose interests SHERAN, Justice (dissenting). Chief

represented working agency. while at the I dissent for these reasons: Therefore, by logic, this the state’s defense attorneys should be excluded also under The principle that courts should be slow importantly, analogy sеction 103. More to declare special laws unconstitutional has is inapposite: those federal statutes are force where dealing legislative we are with preventing concerned with conflicts of in- to employers efforts balance interеsts of improper terests and use of influence and in the field of workers’ com- employer colleagues. before a former pensation by Legislature created in with, They not concerned and do not first uniquely instance and therefore sub- prohibit, agency attorneys becoming admin- ject Particularly its authority. to is judges, istrative is the relevant anal- here, where, adjustments case as to the law ogy. been, significant part, product in Third, the state asserts state’s agreement. compromise posi- improving diversity interest of expe- in compensation judge tion of workers’ not is rience of the bench is ration- public office, case, being ally legislature served 103: the section Legislature authority specify has to reason- rationally that, may “have believed” be- qualifications appointed able compensation judges pre- cause all current posts. these viously attorneys, acted as section 176.261 Legislature It is reasonable for the backgrounds,” and therefore “had similar prefer occupational Yet, experience compounded. problem bias was as revealed, persons compen- the record and oral named to serve as workers’ judges most served considera- judges has sation be more diversified than periods capacities ble of time than past. been the case in the Given the fact plaintiffs: many represent- compensation judges that all workers’ serv- prior companies ed the state or insurance ing passed the law as such when was had appointments judges. their previously been at Section 176.261 backgrounds already. their varied Fur- careers, stage professional I some in their thermore, by permitting private attorneys Legislature rationally believe the acted eligible regardless background to be of their placing employ- a limited restraint on the law, workers’ judges ment at this time of additional hav- operate rationally does not to further ing experience the same kind in their goal. asserted professional background. Wegan Village Lexington, As in v. (Minn.1981), N.W.2d we find that PETERSON, (dissenting). Justice * * * fatally statute is defective be- “[t]he join in I the dissent of Chief Justice satisfy Sher- cause it cannot Guiiliams’ first and classifications are not an. second factors.” The

SIMONETT, (dissenting). Justice ‍​​‌‌‌‌​‌​‌‌​‌​​‌​​​​​‌​​‌​​‌‌‌​​​​‌​‌‌‌‌‌​​​​​​​‍Justice of Chief Sher- join

I in the dissent

an. ALLIANCE,

MINNESOTA RECIPIENTS Plaintiffs, al.,

et

v. NOOT, al., et Defendants

Arthur E. Plaintiffs, Party

Third al., SCHWEIKER, et Third D.

Richard

Party Defendants.

No. 81-1031. *5 Minnesota.

Supreme Court of 17, 1981.

Dec.

Case Details

Case Name: Nelson v. Peterson
Court Name: Supreme Court of Minnesota
Date Published: Dec 17, 1981
Citation: 313 N.W.2d 580
Docket Number: 81-737
Court Abbreviation: Minn.
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