Dial v. Lathrop R-II School Dist.

• Decision Date: 22 February 1994
• Docket Number: R-II,No. 76134,76134
• Citation: 871 S.W.2d 444
• Parties: 89 Ed. Law Rep. 1033 Sandra DIAL, Respondent-Appellant, v. LATHROPSCHOOL DISTRICT, Appellant-Respondent.
• Court: Missouri Supreme Court

Page 444

871 S.W.2d 444

89 Ed. Law Rep. 1033

Sandra DIAL, Respondent-Appellant, v. LATHROP R-II SCHOOL DISTRICT, Appellant-Respondent.

No. 76134.

Supreme Court of Missouri En Banc.

Feb. 22, 1994.

Charles A. Werner, St. Louis, for respondent-appellant.

Kevin L. Walden, John R. Shank, Jr., Kansas City, for appellant-respondent.

Steven L. Wright, Columbia, for amicus curiae (MSBA).

THOMAS, Judge.

This case involves the construction and interpretation of the 1990 amendments to Missouri's Teacher Tenure Act. Ms. Dial filed suit against the Lathrop R-II School District (District) contending that she was entitled to an indefinite contract containing certain terms. An indefinite contract is a contract between a school district and a permanent teacher. § 168.104(3), RSMo Supp.1993. Both parties filed motions for summary judgment. The District appealed from that part of the circuit court's judgment ordering it to issue Ms. Dial an indefinite contract. Ms. Dial appealed from that part of the judgment holding that the District could issue a contract at the lowest step on its salary schedule. The court of appeals affirmed. Both parties sought transfer. We affirm in part and reverse and remand in part.

I.

In 1969, the General Assembly adopted the Teacher Tenure Act, sections 168.102 to 168.130, to be effective July 1, 1970. § 168.102, RSMo 1986. Subsequently, in 1977, Ms. Dial was hired by the Lathrop R-II School District.

Ms. Dial had previously taught five years in Kansas, and the District placed her at Step 6 in the "YEARS EXPERIENCE" column on the salary schedule when she began teaching at Lathrop. Ms. Dial taught part-time at Lathrop in 1977 and for the next thirteen years. Until the 1989-90 school year, Ms. Dial, and all other teachers, advanced one step each year in the "YEARS EXPERIENCE" column. All salaries were frozen for 1989-90, but all teachers advanced two steps for 1990-91, with the result that in Ms. Dial's fourteenth year at Lathrop, she was on Step 19 of the salary schedule.

In 1990, the General Assembly amended portions of the Teacher Tenure Act including sections 168.104, 168.110, RSMo Supp.1993. Id. These amendments included changes in the definition of a "permanent teacher": references to full-time employment were deleted, and a provision was added specifying that part-time teachers would accrue credit toward tenure on a prorated basis. § 168.104(4), RSMo Supp.1993.

The District offered Ms. Dial a contract to teach full-time for the 1991-92 school year. The contract was dated June 13, 1991, and stated that it was void if not returned by June 28, 1991. The contract the District offered was a probationary contract rather than an indefinite contract and was at Step 1 on the "YEARS EXPERIENCE" column.

On June 24, 1991, Ms. Dial sent a letter to the school board and the superintendent stating that she was pleased to receive a full-time contract, but expressing her concern over the fact that the contract was probationary and at Step 1. Ms. Dial returned the signed contract on June 28, 1991, along with a letter protesting the probationary status and the salary step and asking to have the matter reviewed by the District's attorney. Subsequent to June 28, 1991, Ms. Dial initialed an amendment to her contract adding $270.00 for duties as cheerleader sponsor.

On August 1, 1991, the superintendent wrote Ms. Dial a letter stating that her contract had been reviewed and was consistent with present practices. Ms. Dial filed suit on September 23, 1991.

II.

When an appellate court reviews a summary judgment, the court looks to the entire record to determine if there is any issue of material fact and whether the moving party was entitled to judgment as a matter of law. See Magee v. Blue Ridge Professional Bldg., 821 S.W.2d 839, 842 (Mo. banc 1991). Questions of law are matters reserved for the independent judgment of the reviewing court. House of Lloyd, Inc. v Director of Revenue, 824 S.W.2d 914, 916 (Mo. banc 1992).

III.

A.

The District's first point is whether the trial court erred in holding that Ms. Dial became a permanent teacher when the 1990 amendments to the Teacher Tenure Act became effective. The District asserts that such a holding violates the state constitution by requiring a retrospective application of the 1990 amendments to section 168.104(4), RSMo Supp.1993. The District argues that Ms. Dial should not be given credit toward permanent status for the years she taught prior to the 1990 amendments.

Article I, section 13 of our state constitution prohibits any law "retrospective in its operation." Mo. Const. art. I, § 13 (emphasis added). This prohibition applies to laws that operate retrospectively; that is to say, laws that are retroactive. See Jerry-Russell Bliss v. Hazardous Waste, 702 S.W.2d 77, 81 (Mo. banc 1985). The prohibition does not apply to laws that are retrospective in the sense that they merely look back on or contemplate the past. See The American Heritage Dictionary 1056 (2nd college ed. 1991) (Defining "retrospective" as "1. Looking back on, contemplating, or directed to the past.... 3. Applying to or influencing the past; retroactive."). The constitutional prohibition against laws that operate retrospectively applies if the law in question impairs some vested right or affects past transactions to the substantial prejudice of the parties. Fisher v. Reorganized School Dist., etc., 567 S.W.2d 647, 649 (Mo. banc 1978). Thus, we need to consider whether section 168.104(4) is retrospective in operation, i.e. retroactive, or retrospective in the sense that it merely looks back on or contemplates the past.

B.

A "permanent teacher" includes "any teacher who has been employed or who is hereafter employed as a teacher in the same school district for five successive years ... except that any teacher employed under a part-time contract by a school district shall accrue credit toward permanent status on a prorated basis." § 168.104(4), RSMo Supp.1993. The original Teacher Tenure Act has been applied to give credit for years taught prior to 1970. See e.g., Hirbe v. Hazelwood School Dist., 532 S.W.2d 848, 850 (Mo.App.1975). The exception applying to part-time teachers was added in 1990.

Section 168.104(4) does not impair a vested right or affect a past transaction to the substantial prejudice of the parties. A vested right is more than merely an expectation grounded in anticipation that the existing law will continue. Fisher, 567 S.W.2d at 649. A vested right must have become a legal or equitable title to the present or future enjoyment of property or a demand, or a legal exemption from a demand, of another. Id.

The interest of the District in this case is more closely akin to an expectation based on an anticipation that the existing law would continue than to any type of legal or equitable title. Service of full-time teachers prior to 1970 was credited toward tenure. A change in the statute to specify the same treatment for part-time teachers could have been anticipated. The District had no vested right in withholding tenure from part-time teachers, thus there was no impairment of any vested right.

The statute also does not affect past transactions. A statute that does not impair a vested right is not retrospective in operation merely because it relates to or is directed to prior facts or transactions. See Bliss, 702 S.W.2d at 81; Martin v. Schmalz, 713 S.W.2d 22, 23 (Mo.App.1986). Section 168.104(4) states that teachers get credit toward tenure for years that were taught previously. The statute gives future effect to this teaching experience; it in no way changes the past teaching contracts.

Furthermore, there is no substantial prejudice to the District. The only possible negative consequence to the District is that it could have more permanent teachers than it anticipated. By definition, these part-time teachers would have taught over five years and been extended more than five contracts. The District would have had ample opportunity to evaluate these teachers and make a determination of their fitness. To the extent that the District wound up with excess teachers, the Teacher Tenure Act authorizes placing teachers on leaves of absence because of a decrease in enrollment, school district reorganization, or the financial condition of the district. § 168.124, RSMo Supp.1993. Also, the District was under no compulsion to offer Ms. Dial a full-time position. The District could have left Ms. Dial as a part-time teacher and hired an additional part-time teacher, without Ms. Dial's experience or salary level, to teach the additional hours. The District will suffer no substantial prejudice.

Section 168.104(4) is not retrospective in its operation and is, therefore, not in violation of article I, section 13 of our state constitution.

C.

The District argues that the 1990 exception removes part-time contracts from the general application of the statute. According to the District, the phrase "shall accrue" looks forward and shows that the legislature did not intend for the statute to be applied to part-time contracts so as to give credit for years taught prior to 1990.

We think a better interpretation is that the exception is simply specifying that part-time teachers receive credit toward tenure on a prorated basis as compared to full-time teachers. The phrase "shall accrue" may have been used because, at the time the amendment was drafted, it was looking to its future implementation. Furthermore, "shall" is not merely a word to describe future events but also a word of command, in this case mandating prorated credit for part-time teachers. Looking at the entire statute, we believe that the legislature intended that the statute should be applied to give part-time teachers credit toward tenure for years taught prior to 1990.

D.

Ms. Dial had taught in the district for thirteen years at one-half to four-sevenths time at the time of the 1990 amendments to the Teacher Tenure Act. Thu...