Brock v. City of St. Louis

Decision Date17 February 1987
Docket NumberNo. 51179,51179
Citation724 S.W.2d 721
PartiesBROCK, et al., Plaintiffs-Appellants, v. CITY OF ST. LOUIS, a municipal corporation; Paul Berra, Comptroller; Thomas Zych, President of the Board of Aldermen; Hon. Vincent C. Schoemehl, Jr., Mayor; St. Louis Regional Health Care Inc., a corporation; National Medical Enterprises, Inc., a corporation; and Professional Care Centers Management Company, Inc., a corporation, Defendants-Respondents.
CourtMissouri Court of Appeals

Deborah Jean Ochs Kerns, Clayton, for Medical Enterprises.

KAROHL, Judge.

One hundred and three civil service (classified) employees of the City of St. Louis, [City] petitioned to enjoin defendant City and defendant corporations from performing under contracts to provide acute care and long term health services for residents of the city. This was the subject of Count I. Defendant St. Louis Regional Health Care Inc., is the owner of Charter Hospital. National Medical Enterprises Inc., serves as manager of Charter Hospital. The contracts were intended to replace hospital facilities owned and operated by City with health care at Charter. Professional Care Centers Management Company Inc., contracted with the City to manage Truman Restorative Center for long term medical care.

Count II of the petition requests the court to declare the rights and obligations of plaintiffs as employees and defendant City as employer under the Charter of the City of St. Louis. The request for injunction included an allegation of no available legal remedy and a prayer for attorney's fees and costs, but no request for damages to plaintiffs. The request for declaratory judgment in Count II included a prayer for a reasonable sum for damages because defendants have "threatened to deprive and will deprive plaintiffs of their property rights in the classified positions with the City of St. Louis, and their rights as taxpayers to efficient use of their tax monies and the services of a classified system." Plaintiffs claim standing on the basis of their status as employees and as residents and taxpayers of the City of St. Louis.

The trial court made extensive findings of fact, found numerous matters of law, and entered judgment denying all requested relief.

Plaintiffs appeal claiming:

POINTS RELIED ON

I. THE PROVISIONS OF ARTICLE XVIII OF THE CITY CHARTER PROHIBIT THE CITY FROM CONTRACTING OUT JOBS THAT HAVE TRADITIONALLY BEEN PERFORMED BY CIVIL SERVICE.

II. THE CONTRACTS BETWEEN REGIONAL AND/OR PCC INVOLVE PUBLIC WORK OR IMPROVEMENTS AND, THEREFORE, ARE REQUIRED BY ARTICLE XXII OF THE CITY CHARTER TO BE LET FOR BID.

III. THE LAYOFF OF CITY EMPLOYEES PRIOR TO THE ADOPTION OF THE 85/86 BUDGET VIOLATED THE CITY CHARTER.

IV. PAYMENTS MADE BY THE CITY PRIOR TO SEPTEMBER 30, 1985 TO REGIONAL, EITHER DIRECTLY OR THROUGH NME, WERE IN VIOLATION OF ARTICLE XXV, SECTION 9, OF THE CITY CHARTER.

V. THE EMASCULATION OF THE DEPARTMENT OF HEALTH AND HOSPITALS VIOLATED ARTICLE XXV OF THE CITY CHARTER.

It is painfully obvious that plaintiffs' brief does not comply with the requirements of Rule 84.04(d). At best, the points are restatements of what plaintiffs hoped would be the conclusions of law [I, III, IV & V] or a combination of a finding of fact and conclusion of law [II]. At trial, and on appeal, defendants have chosen not to insist the decision in this case be made on a jurisdictional claim of lack of standing. Their failure to file Motions to Dismiss the appeal for failure to comply with Rule 84.04(d) is consistent with this approach. Compliance with the Rule is not merely a matter of form. It frames the appellate issues in terms of the appellate function which is limited to a determination of the existence of trial court error, or lack thereof, and the prejudicial effect of error, if any. "The purpose of the Rule is to ensure that opposing counsel and the court receive notice of the issues raised. Thummel v. King, 570 S.W.2d 679, 690 (Mo. banc 1978)." Zafft v. Ely Lilly & Co., 676 S.W.2d 241, 243 (Mo. banc 1984). Counsel for defendants in their defense of the appeal and this court in reviewing the appeal have been severely handicapped in performing their duties by the absence of a proper appellants' brief. Dismissal of the appeal is an available result which we elect not to order on the authority of Rule 84.08(a). We note two reasons for this decision. First, no motion was filed and defendants' briefs on the issue of standing and on the merits are succinct and pertinent to the findings of fact and conclusions of law of the trial court which MAY relate to appellant's "points". Second, we find the preliminary issue of plaintiffs' lack of standing decisive.

On the matter of standing, we quote from the trial court conclusions of law:

1. The court has jurisdiction of the parties; venue is proper in the 22d Circuit. With respect to the subject matter of the plaintiffs' claims, the court lacks jurisdiction to consider matters properly subject to the jurisdiction of the Civil Service Commission of the City of St. Louis. State ex rel. Scott v. Scearce, 303 S.W.2d 175 (Mo.App.1957). The question of the procedural regularity of the layoffs of plaintiffs and any damages due them by reason of errors of procedure, based solely on their employment relationship with the City, cannot be considered to be properly before this court. State ex rel. Taylor v. Nangle, 227 S.W.2d 655, 657 (Mo. banc 1950) (discussing doctrine of primary jurisdiction).

2. Plaintiffs also seek relief as taxpayers, Petition pp 1, 23, 31. Assuming that plaintiffs have established standing as taxpayers, the broad provisions of the Declaratory Judgment Act, §§ 527.010 et seq., R.S.Mo.1978, authorizing such actions to declare rights under ordinances and contracts (both of which are involved here) would seem to authorize this action.

3. Ordinarily, when a plaintiff seeks standing as a taxpayer, he must allege and prove special injury in the form of an increased tax burden. Sommer v. City of St. Louis, 631 S.W.2d 676 (Mo.App.1982); Collins v. Vernon, 512 S.W.2d 470 (Mo.App.1974). Here, the evidence indicates that the contracts attacked by plaintiffs can and will result in lower expense to the City. This is particularly true with respect to the PCC [Professional Care Centers] contract, which has transformed Truman from an expense to a source of income to the City. See J.C. Nicholls [Nichols] Co. v. City of Kansas City, 639 S.W.2d 886 (Mo.App.1982). However, taxpayer standing also can be established when money expended on illegal contracts would constitute unlawful expenditures necessitating increased taxes to replenish the treasury. See Russell v. Callaway County, 575 S.W.2d 193 (Mo. banc 1978). Expenditures are being made by the City to Regional under the contract, which plaintiffs allege is illegal; the City, through its obligation to provide heat and air conditioning at Truman, is also incurring expense under its agreement with PCC. Accordingly, the court can and will decide the merits of the controversy here in the context of the claim for declaratory relief by plaintiffs as taxpayers.

Related findings of fact of the trial court, which we find supported by the evidence and which are not opposed by appellants "points" on appeal are:

1. Plaintiffs were classified employees of the City of St. Louis under the Merit System as provided in Article XVIII of the City Charter and worked under the Department of Health & Hospitals and generally were assigned to the former City Hospital at 1515 Lafayette, Truman Restorative Center on Arsenal and various Health Clinics. Plaintiffs brought this action in two counts, seeking injunctive (count I) and declaratory (count II) relief concerning certain contracts for the rendition of health care services to residents of the City.

2. Each plaintiff is a resident and taxpayer of the City of St. Louis. Plaintiffs are currently parties to appeals before the Civil Service Commission of the City of St. Louis, contesting their layoff from City employment. Subsequent to their layoffs, some of the plaintiffs were and are unemployed; others obtained employment at less salary and with less generous fringe benefits than they enjoyed while employed by the City; plaintiffs who left government service also lost such procedural protections or tenure as their public employment afforded them.

* * *

16. The evidence is that the contract entered into by the City with defendant Regional has resulted in improved health care...

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