Dodd v. City of Gainesville, A01A0080.
| Citation | 551 S.E.2d 62,250 Ga. App. 722 |
| Decision Date | 22 June 2001 |
| Docket Number | No. A01A0080.,A01A0080. |
| Parties | DODD et al. v. CITY OF GAINESVILLE. |
| Court | United States Court of Appeals (Georgia) |
OPINION TEXT STARTS HERE
Jack E. Dodd, Richard C. Bellows, Gainesville, for appellants.
Freeman, Mathis & Gary, Benton J. Mathis, Jr., Mary A. Ackourey, Atlanta, for appellee.
For three years, the City of Gainesville paid retired police officer Jack Dodd $2,553 in monthly pension benefits, even though he was entitled to receive only $2,254 under the type of retirement plan he had selected. Upon discovering its error, the City notified Dodd that it would reduce his monthly benefit amount and that it expected him to repay the overpaid benefits.
Dodd and his wife sued the City for breach of contract and negligence. As to the breach of contract claim, Dodd alleged that the City informed him that he would receive $2,553 per month upon retirement, entered into a contract with him wherein the City agreed to pay him that amount and, when he retired, paid him the agreed-upon amount for three years. Dodd's negligence claim alleged that, because of the city clerk's misinformation, Dodd gave up his position as a police captain, a position from which he would not have otherwise retired for another five years, and that he suffered a loss of pay and benefits as a result.
Although the City moved for summary judgment on several bases, the trial court did not issue a ruling on most of them. Instead, it granted the City's motion on two grounds. First, it held that the City could not be liable in negligence for miscalculating Dodd's retirement benefit amount since Dodd could have calculated the correct monthly benefit amount on his own by using a retirement system handbook which contained a formula for calculating benefits but neglected to do so. Second, the trial court held that the City was not liable for breach of contract inasmuch as Dodd was an at-will employee; given Dodd's at-will status, the City owed him no fiduciary duty. At the same time, the trial court denied the City's counterclaim for reimbursement of overpayments, holding that genuine issues of material fact remain as to whether Dodd knew he was receiving more than the amount to which he was entitled. Dodd appeals from the grant of summary judgment to the City.
1. Dodd contends the evidence does not show as a matter of law that he had equal knowledge as to how to calculate the correct benefit amount. We agree.
As the trial court noted in its order, where parties have equal opportunities for knowing the truth, "a party grossly failing to inform himself must take the consequences of his neglect."1 In this case, however, a jury could find that Dodd did not have an equal opportunity to determine the exact amount to which he was entitled.
Before he retired, Dodd was provided with an Employee's Retirement System Handbook. The handbook includes several examples of how benefits are calculated under the various options available. Yet, the handbook states that it is intended only as "an informative guide to answer your basic questions" and a "general outline for major provisions." It states that "[w]hile this booklet is intended to be as accurate as possible, the explanations are subject, in all respects, to the detailed provisions of the legal plan documents," and that "[a]ll questions relating to the ... amount of benefits payable will be determined by the Retirement Board according to Plan provisions." The handbook does not include tables or other information needed for employees to calculate their own retirement benefits with any precision. Indeed, regarding the type of benefits Dodd selected, the handbook provides that "factors such as you [sic] and your spouse's life expectancy are taken into consideration for the purpose of determining your benefit" and "your age and the age of your spouse will determine the exact amount of your retirement benefit." The handbook advises employees requiring more information to consult the city clerk or a retirement board representative.
Shubert, the city clerk and pension board secretary, acknowledged that she "administers the plan as far as estimating benefits, calculating final benefits, notifying all the people in regards to paying of that benefit." Dodd and other officers were instructed by their supervisors to obtain benefits calculations from Shubert. In order to make the calculations, Shubert had to obtain information from the payroll department and make allowances for vacation, longevity, overtime, and other pay. She had to factor into the equation Dodd's starting date, his proposed retirement date, and his salary over the preceding five years. She also considered Dodd's wife's date of birth, consulted mortality tables, and reduced the benefits by a certain percentage based on mortality rates. Her calculations were then checked by another pension board member. Considering the numerous sources which had to be consulted, the various factors which had to be considered, and the level of...
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