Members of the Birmingham Board of Education and the superintendent of the Birmingham City School System (hereinafter collectively referred to as "the defendants") appeal the Jefferson Circuit Court's judgment in favor of 24 "classified
Facts and Procedural History
On December 30, 2011, numerous classified employees of the Birmingham Board of Education ("the Board") sued the Board, the Board's members in their official capacities, and the superintendent of the Birmingham City School System, in his official capacity. The plaintiffs claimed that when the Board adopted a new salary schedule in August 2004, existing employees, including the plaintiffs, were not reassigned to the proper "steps" on the new salary schedule and, thus, that their wages were miscalculated. Specifically, in their amended complaint, the plaintiffs alleged:
"... Defendants adopted a new pay schedule about August of 2004.
"... The [Board] instituted a policy of assigning employees to pay steps correspondent to the total number of years of service. Through the implementation of the new schedule and pay policy, defendants determine salary rates on the basis of total years of experience.
"... Defendants did not implement the new pay schedule with existing employees who occupied positions encompassed by the new pay schedule and policy in August 2004. Rather, the defendants continued to pay plaintiffs at their present rates of pay that did not recognize their years of experience.
"... With the implementation of the new 16-step pay schedule, defendants failed to make corresponding adjustments to plaintiffs' step assignments to reflect prior experience in the like manner to the pay rates set for the new supervisory hires or their newly promoted peers. As a result, defendants place the newly hired or newly promoted personnel at pay steps above the veteran employees. Hence, the new hires and newly promoted employees now make substantially more money than their more experienced peers.
"... Despite numerous meetings and discussions with the defendants pointing out the mistake and the obvious pay inequity, the defendants have stubbornly, willfully, arbitrarily and maliciously refused to adjust plaintiffs' salary to reflect total years of experience. Defendants have made no effort to correct the ministerial error of assigning plaintiffs to the proper pay step to reflect years of experience."
It is undisputed that in August 2004 the Board implemented a new salary schedule that included multiple pay "steps." The then current employees were placed on the step of the new salary schedule that most closely approximated their then current pay, and none of those employees received a reduction in pay. The plaintiffs
The plaintiffs' claims are based on the following language found in the "introduction" to the salary schedule that was first adopted by the Board in August 2004:
"Certified salaries (teacher) in the salary schedule are based on years of experience, degree/certification and/or assignment. Effective February 1, 1996, certified employees (teachers) were approved to be paid on their highest degree, regardless of the teaching assignment. Years of experience are categorized as 'STEPS' on the schedule. Experience for teachers will be granted based on public education in this system, other public education experience in the State of Alabama, or other public education experience outside the state. It is the responsibility of the employee to submit the appropriate information pertaining to experience, degree/certification and to verify the receipt of the accurate salary."
(Emphasis added.)
In their complaint, the plaintiffs requested declaratory, mandamus, and injunctive relief. Specifically, the plaintiffs requested that the defendants be directed to pay the plaintiffs at the proper rate of pay reflecting their years of experience, that the trial court "issue a declaratory judgment finding that the defendants' purported actions of inequitably paying [the plaintiffs] shall be corrected such that all employees' salaries shall be based upon their years of experience," and that the trial court "declare[ ] that the plaintiffs are entitled to back pay and adjustment of their current salary to reflect years of service." Further, the plaintiffs alleged that the "defendants' actions constitute unlawful, unreasonable, capricious, and arbitrary conduct and represent an abuse of the defendants' official power and discretion" and that "the Board's failure and refusal to establish proper salary schedules which include length of service steps for all classes of employees does not entail a discretionary act but rather is the ignoring of a duty exacted by law."
The trial court dismissed the Board from the case on the basis of State immunity but allowed the action to proceed against the defendants in their official capacities. After conducting a bench trial, the trial court found that the plaintiffs' salaries had been miscalculated and awarded them the monetary relief they requested. The defendants appealed.
Discussion
On appeal, the defendants argue, among other things, that they are entitled to immunity from the plaintiffs' claims. The plaintiffs respond that "the Birmingham
"[T]he State of Alabama shall never be made a defendant in any court of law or equity." Article I, § 14, Ala. Const. 1901. "Section 14 immunity is more than a defense; when applicable, it divests the trial courts of this State of subject-matter jurisdiction." Alabama State Univ. v. Danley,
Concerning § 14 immunity, this Court has stated:
" 'The wall of immunity erected by § 14 is nearly impregnable. Sanders Lead Co. v. Levine,, 1117 (M.D. Ala. 1973) ; Taylor v. Troy State Univ., 370 F.Supp. 1115 , 474 (Ala. 1983) ; Hutchinson v. Board of Trustees of Univ. of Alabama, 437 So.2d 472 , 24, 288 Ala. 20 , 284 (1971). This immunity may not be waived. Larkins v. Department of Mental Health & Mental Retardation, 256 So.2d 281 , 363 (Ala. 2001) ("The State is immune from suit, and its immunity cannot be waived by the Legislature or by any other State authority."); Druid City Hosp. Bd. v. Epperson, 806 So.2d 358 (Ala. 1979) (same); Opinion of the Justices No. 69, 378 So.2d 696 , 247 Ala. 195 (1945) (same); see also Dunn Constr. Co. v. State Bd. of Adjustment, 23 So.2d 505 , 234 Ala. 372 (1937). "This means not only that the state itself may not be sued, but that this cannot be indirectly accomplished by suing its officers or agents in their official capacity, when a result favorable to plaintiff would be directly to affect the financial status of the state treasury." State Docks Comm'n v. Barnes, 175 So. 383 , 405, 225 Ala. 403 , 582 (1932) (emphasis added); see also Southall v. Stricos Corp., 143 So. 581 , 275 Ala. 156 (1963).' 153 So.2d 234
" Patterson v. Gladwin Corp.,, 142 (Ala. 2002)." 835 So.2d 137
Alabama Agric. & Mech. Univ. v. Jones,
"Section 14 immunity is not absolute; there are actions that are not barred by the general rule of immunity.
" '[C]ertain actions are not barred by § 14. There are six general categories of actions that do not come within the prohibition of § 14 : (1) actions brought to compel State officials to perform their legal duties; (2) actions brought to enjoin State officials from enforcing an unconstitutional law; (3) actions to compel State officials to perform ministerial acts; (4) actions brought against State officials under the Declaratory Judgments Act, Ala. Code 1975, § 6-6-220 et seq., seeking construction of a statute and its application in a given situation; (5) valid inverse condemnation actions brought against State officials in their representative capacity; and (6) actions for injunction or damages brought against State officials in their representative capacity and individually where it was alleged that they had acted fraudulently, in bad faith, beyond their authority, or in a mistaken interpretation of law. See Drummond Co. v. Alabama Dep't of Transp.,, 58 (Ala. 2006) (quoting Ex parte Carter, 937 So.2d 56 , 68 (Ala. 1980) ); Alabama Dep't of Transp. v. Harbert Int'l, Inc., 395 So.2d 65 (Ala. 2008) 990 So.2d 831
(holding that the exception for declaratory-judgment actions applies only to actions against State officials). As we confirmed in Harbert, these "exceptions" to sovereign immunity apply only to actions brought against State officials; they do not apply to actions against the State or against State agencies. See Alabama Dep't of Transp., .' 990 So.2d at 840-41
" Ex parte Alabama Dep't of Fin.,, 1256-57 (Ala. 2008). The sixth 'exception' to § 14 immunity was restated in Ex parte Moulton, 991 So.2d 1254 , 1141 (Ala. 2013), as follows: 116 So.3d 1119
" '(6)(a) actions for injunction brought against State officials in their representative capacity where it is alleged that they had acted fraudulently, in bad faith, beyond their authority, or in a mistaken interpretation of law, Wallace v. Board of Education of Montgomery County,, 280 Ala. 635 (1967), and (b) actions for damages brought against State officials in their individual capacity where it is alleged that they had acted fraudulently, in bad faith, beyond their authority, or in a mistaken interpretation of law, subject to the limitation that the action not be, in effect, one against the State. Phillips v. Thomas, 197 So.2d 428 , 83 (Ala. 1989).' " 555 So.2d 81
Ex parte Hampton,
" 'These actions are sometimes referred to as "exceptions" to § 14 ; however, in actuality these actions are simply not considered to be actions " 'against the State' for § 14 purposes." Patterson v. Gladwin Corp.,, 142 (Ala. 2002). This Court has qualified those "exceptions," noting that " '[a]n action is one against the [S]tate when a favorable result for the plaintiff would directly affect a contract or property right of the State, or would result in the plaintiff's recovery of money from the [S]tate.' " Alabama Agric. & Mech. Univ. v. Jones, 835 So.2d 137 , 873 (Ala. 2004) (quoting Shoals Cmty. Coll. v. Colagross, 895 So.2d 867 , 1314 (Ala. Civ. App. 1995) ) (emphasis added in Jones ).' 674 So.2d 1311
" Alabama Dep't of Transp. v. Harbert Int'l, Inc.,, 840 (Ala. 2008)." 990 So.2d 831
Vandenberg v. Aramark Educ. Servs., Inc.,
" 'To determine whether an action against a State officer is, in fact, one against the State, this Court considers
" ' "whether 'a result favorable to the plaintiff would directly affect a contract or property right of the State,' Mitchell [v. Davis,, 806 (Ala. 1992) ], whether the defendant is simply a 'conduit' through which the plaintiff seeks recovery of damages from the State, Barnes v. Dale, 598 So.2d 801 , 784 (Ala. 1988), and whether 'a judgment against the officer would directly affect the financial status of the State treasury,' Lyons [v. River Road Constr., Inc. ], 858 So.2d [257] at 261 [ (Ala. 2003) ]." 530 So.2d 770
" ' Haley [v. Barbour County ], 885 So.2d [783] at 788 [ (Ala. 2004) ]. Additionally, "[i]n determining whether an action against a state officer is barred by § 14, the Court considers the nature of the suit or the relief demanded, not the character of the office of the person against whom the suit is brought." Ex parte Carter,, 67-68 (Ala. 1980).' " 395 So.2d 65
Ex parte Moulton,
"Generally, mandamus relief is available in certain situations to compel a State officer to perform the ministerial act of tendering payment of liquidated or certain sums the State is legally obligated to pay under a contract. State Highway Dep't v. Milton Constr. Co.,, 875 (Ala. 1991) ; see also [Alabama Agric. and Mech. Univ. v.] Jones, 895 So.2d [867] at 877-79 [ (Ala. 2004) ] (describing as 'well-established [the] rule that a writ of mandamus will issue to compel payment of only such claims as are liquidated' and noting that prior caselaw had held 'that payment for goods or services, for which the State had contracted and accepted, could be compelled by mandamus'); and State Bd. of Admin. v. Roquemore, 586 So.2d 872 , 124, 218 Ala. 120 , 760 (1928) ('the claim asserted [against the State was] for an amount fixed or determinable by the terms of the contract of sale,' and was 'definite and certain, ... and not an unliquidated claim, in the sense that would render mandamus unavailable'). 117 So. 757
"We find our opinions in Milton Construction Co. v. State Highway Department,(Ala. 1990) (' Milton I'), and State Highway Department v. Milton Construction Co., 568 So.2d 784 (Ala. 1991) (' Milton II'), dispositive on this issue. In Milton I, the plaintiff, Milton Construction Company, asked the trial court to declare the disincentive clause of an 'incentive/disincentive-payments provision' in two highway-construction contracts it had entered into with ALDOT (then called 'the Highway Department') void and unenforceable as a penalty. Milton Construction further asked the trial court to order the defendants-the State, ALDOT, and ALDOT's director-to pay it the amounts of 'disincentive payments' ALDOT had allegedly wrongfully withheld. On appeal, this Court held that the 'disincentive clause' in the contracts was 'void as a penalty and therefore unenforceable,' 586 So.2d 872 , and remanded the case. 568 So.2d at 791
"On return to remand, the defendants claimed that § 14 barred the trial court from ordering them to pay the money they had withheld from Milton Construction under the void disincentive clause. In Milton II, this Court disagreed, stating:
" 'It is true that § 14 of the Constitution prevents a suit against the state as well as suits against its agencies. See Phillips v. Thomas,(Ala. 1989) ; Rutledge v. Baldwin County Comm'n, 555 So.2d 81 (Ala. 1986). However, this Court has also recognized that there are certain established exceptions to the protection afforded the state or its agencies by sovereign immunity. See Ex parte Carter, 495 So.2d 49 , 68 (Ala. 1981). 395 So.2d 65
Among those recognized exceptions are actions brought to force state employees or agencies to perform their legal duties. Id. See also Nix and Vercelli, Immunities Available In Alabama For Cities, Counties And Other Governmental Entities, And Their Officials,13 Am. J. Trial Advoc. 615 (1989).
" '... Once the Highway Department has legally contracted under state law for goods or services and accepts such goods or services, the Highway Department also becomes legally obligated to pay for the goods or services accepted in accordance with the terms of the contract. It follows that this obligation is not subject to the doctrine of sovereign immunity and is enforceable in the courts. See, e.g., Gunter v. Beasley,(Ala. 1982) ; State Board of Administration v. Roquemore, 414 So.2d 41 , 218 Ala. 120 (1928). 117 So. 757
" 'It is undisputed that Milton Construction has already rendered the services called for under the contract. Consequently, we hold that this lawsuit is not barred by the doctrine of sovereign immunity, because it is in the nature of an action to compel state officers to perform their legal duties and pay Milton Construction for services contracted for and rendered. Gunter, supra ; Roquemore,supra.
" 'For example, in Roquemore the Highway Department contracted with Roquemore to purchase hay. After Roquemore had delivered a substantial amount of hay to the Highway Department, it refused to accept any further deliveries of hay and refused to pay for the hay that it had already received. Roquemore petitioned this Court for a writ of mandamus ordering the State Board of Administration and the Highway Department to pay him for the hay that he had delivered. This Court held that the writ was proper and was not barred by the doctrine of sovereign immunity because, under the applicable statutes, the Highway Department could not refuse to pay for goods that it had already accepted. This Court held that the suit in Roquemore was one to force a state agency to perform its legal duty, i.e., to force the Highway Department to pay for the hay that it had already accepted. Likewise, in this case, Milton Construction's action against the Highway Department is not barred by the doctrine of sovereign immunity.'
" Milton II,. This Court thus upheld the trial court's judgment holding that the moneys withheld under the disincentive clause were due to be paid to Milton Construction. 586 So.2d at 875
"Like the plaintiff in Milton I and Milton II, Harbert contended that a provision in a contract with ALDOT was void as a penalty. Harbert thus sought mandamus relief directing that State officers pay the funds withheld by ALDOT. The trial court agreed and, like the trial court in Milton II, ordered that the withheld funds be paid. In their initial brief on appeal, the Governor and the director do not appear to contest the trial court's holding that the liquidated-damages provision was unlawfully applied in this case. Thus, under the authority of Milton II, the trial court's mandamus relief directing that the funds withheld as liquidated damages are due to be returned to Harbert is affirmed. See Hardin v. Fullilove Excavating Co.,, 783 (Ala. 1977) (agreeing with the trial court's factual findings and 353 So.2d 779 legal conclusions interpreting a contract between a State agency and a contractor 'as calling for payment of the disputed sum' and affirming the issuance of the writ of mandamus to compel State officers to tender payment)."
Further,
"the trial court can generally, by writ of mandamus, order State officers in certain situations to pay liquidated damages or contractually specified debts. The payment of these certain, liquidated amounts would be only a ministerial act that State officers do not have the discretion to avoid. [Alabama Agric. and Mech. Univ. v.] Jones, 895 So.2d [867] at 878-79 [ (Ala. 2004) ] ; [State Bd. of Admin. v.] Roquemore, 218 Ala. [120] at 124, 117 So. [757] at 760 [ (1928) ]. Furthermore, although the payment of the funds 'may ultimately touch the State treasury,' Horn v. Dunn Bros.,, 410, 262 Ala. 404 , 17 (1955), the payment does not 'affect the financial status of the State treasury,' Lyons [v. River Road Constr., Inc. ], 858 So.2d [257] at 261 [ (Ala. 2003) ], because the funds 'do not belong to the State,' Alabama Dep't of Envtl. Mgmt. v. Lowndesboro, 79 So.2d 11 , 1190 n.6 (Ala. Civ. App. 2005) (two-judge opinion), and the State treasury 'suffers no more than it would' had the State officers originally performed their duties and paid the debts. Horn, 950 So.2d 1180 , 262 Ala. at 410. The trial court may not, however, award retroactive relief in the nature of unliquidated damages or compensatory damages, because such relief affects a property or contract right of the State. Stark [v. Troy State Univ., 79 So.2d at 17(Ala. 1987) ]; Williams [v. Hank's Ambulance Serv., Inc., 514 So.2d 46 (Ala. 1997) ] ; Roquemore; J.B. McCrary Co. v. Brunson, 699 So.2d 1230 , 86, 204 Ala. 85 , 396 (1920) ('mandamus will not lie to compel the payment of unliquidated claims'); and Vaughan [v. Sibley, 85 So. 396 (Ala. Civ. App. 1997) ].... 709 So.2d 482
"Although the trial court cannot award compensatory damages or unliquidated damages in this case, the trial court does have the ability to compel State officers who are acting arbitrarily and capriciously to properly perform their duties. Stark,(holding that an action seeking to compel State officers who are acting arbitrarily to perform their legal duties 'will not be barred by the sovereign immunity clause of the Alabama Constitution of 1901'); McDowell-Purcell, [Inc. v. Bass,] 370 So.2d [942] at 944 [ (Ala. 1979) ] ('If judgment or discretion is abused, and exercised in an arbitrary or capricious manner, mandamus will lie to compel a proper exercise thereof.'); St. Clair County v. Town of Riverside, 514 So.2d at 50, 296, 272 Ala. 294 , 334 (1961) ('Injunctive action may be maintained against a state official, if the official is acting beyond the scope of his authority or acting illegally, in bad faith, or fraudulently.') ...." 128 So.2d 333
Harbert,
As Justice Murdock correctly noted in his special concurrence in Harbert:
"[I]t becomes critical ... to recognize that the reference in the cases cited in the above-quoted passage from the main opinion to claims that are 'liquidated,' when considered in context, are references not merely to claims for amounts that have been reduced to sums certain, but claims as to which there is no room for dispute as to liability, i.e., whether the amounts at issue are owed."
Harbert and the cases cited therein dealt with contracts. In Ex parte Bessemer Board of Education,
Therefore, in the present case, assuming that a school-board policy should be treated like a contract or a statute,
The above-cited decisions contemplate a lack of discretion by State officials when there is no dispute that a particular payment is required. However, in the present case, there is a legitimate dispute as to whether the Board's policy required the defendants to assign existing classified employees to steps on the new salary schedule that directly corresponded to their years of service rather than to their then current rate of pay when they were converted to the new salary schedule. The defendants' interpretation and implementation of the policy was not arbitrary. The sentence upon which the plaintiffs rely simply states: "Years of experience are categorized as 'STEPS' on the schedule." Neither that sentence nor the sentences that surround it say anything specifically
Conclusion
Because the trial court lacked subject-matter jurisdiction, its judgment is void, and the appeal is dismissed.
APPEAL DISMISSED.
Stuart and Wise, JJ., concur.
Bolin,
MURDOCK, Justice (concurring in the result).
I concur in the result. The main opinion quotes from cases such as Alabama Department of Transportation v. Harbert International, Inc.,
"[T]he issue is whether the defendants acted arbitrarily in interpreting and implementing the Board's policy. If they did not act arbitrarily, they are entitled to § 14 immunity."
The latter standards-arbitrariness and excess of discretion-are not the equivalent of the principles governing such cases as Harbert and Bessemer. Nor have those latter standards ever been articulated previously in our precedents. Instead, the principle suggested by cases such as Harbert and Bessemer is simply whether the amount owed is undisputed in the sense and for the reasons referenced above. If it is not, then there is immunity, regardless whether the State official's decision regarding it might, in retrospect, be deemed by a court of law to have been "arbitrary" or "in excess of the official's discretion."
For that matter, to accept the latter standards seems to me to be a major step toward outright abolishment of § 14 immunity in relation to suits against State officials. When a decision is challenged by an alleged creditor on the ground that the State official's decision is contrary to law (or the facts), such error is too easily framed by a litigant and a court alike as one that was "arbitrary" or in "excess" of the official's discretion. Indeed, our cases
SHAW, Justice (concurring in the result).
I concur in the result. "In limited circumstances the writ of mandamus will lie to require action of state officials. This is true where discretion is exhausted and that which remains to be done is a ministerial act." McDowell-Purcell, Inc. v. Bass,
In the instant case, the parties dispute the proper interpretation of the new salary schedule at issue. In McDowell-Purcell, we held that a writ of mandamus will not lie to compel a State official "to exercise his discretion and apply the ascertained facts or existing conditions under [a] contract so as to approve payment to [a plaintiff] according to [the plaintiff's] interpretation of the contract rather than his."
Bryan, J., concurs.
Notes
"Classified employees" are support personnel who are not required to have a professional-educator certificate, i.e., non-teachers.
Those 24 employees are: Scott Armstrong, Larry Batain, General Bender, Odessa Beville, Abram Bolden, Harold Childress, Freddie Clark, Walter Cook, Gwendolyn Cotton, Beverly Crosby, Vince Eaton, Lillie Edmond, Lucius Gregg, Edward Ingram, Eloise Gray Ingram, Paul Marzette, Sharon Miles, Kelvin Newsome, Frances Rowser, Anthony Taylor, Vickie Townes, Nathaniel Walton, Jacqueline Welch, and Phyllis Williams.
The Court of Civil Appeals has stated:
" 'A board of education must comply with the policies it adopts.' Ex parte Board of Sch. Comm'rs of Mobile County,, 761 (Ala. 2001). 'Salaries are a matter of school board policy. Once the Board adopts a policy, it is bound to follow that policy until the policy is modified or amended by the Board in accordance with the procedures set forth in [§ 16-1-30, Ala. Code 1975].' Beverly v. Board of Sch. Comm'rs of Mobile County, 824 So.2d 759 , 115 (Ala. Civ. App. 1995) (citations omitted)." Limestone Cty. Educ. Ass'n v. Limestone Cty. Bd. of Educ., 678 So.2d 113 , 450 (Ala. Civ. App. 2003) (footnote omitted). See also Ex parte Etowah Cty. Bd. of Educ., 880 So.2d 446 , 530 (Ala. 1991) ("It is well recognized that the School Board is bound to follow its adopted policies."). 584 So.2d 528
Although Justice Bolin was not present at oral argument in this case, he has listened to the audiotape of the oral argument.
