Hogan v. Bd. of Police Commissioners of Kan. City

• Decision Date: 08 March 2011
• Docket Number: Nos. WD 71687,WD 71705.,s. WD 71687
• Citation: 337 S.W.3d 124
• Parties: Anthony HOGAN, Respondent,v.BOARD OF POLICE COMMISSIONERS OF KANSAS CITY, Missouri, et al., Appellant,Police Retirement System of Kansas City, Appellant.
• Court: Missouri Court of Appeals

337 S.W.3d 124

Anthony HOGAN, Respondent,

v.BOARD OF POLICE COMMISSIONERS OF KANSAS CITY, Missouri, et al., Appellant,Police Retirement System of Kansas City, Appellant.

Nos. WD 71687

WD 71705.

Missouri Court of Appeals, Western District.

March 8, 2011.

Rik N. Siro, Kansas City, MO, for Respondent.Lisa S. Morris, Kansas City, MO, for Appellant Board of Police Commissioners of Kansas City, MO.Richard F. Adams, Douglas Ghertner, Kansas City, MO, for Appellant Police Retirement System of Kansas City.Before Division One: JAMES M. SMART, JR., Presiding Judge, JOSEPH M. ELLIS, Judge and CYNTHIA L. MARTIN, Judge.JOSEPH M. ELLIS, Judge.

The Board of Police Commissioners (Police Board) and the Police Retirement System of Kansas City (Retirement Board) appeal from the trial court's judgment awarding Anthony Hogan $139,520 in lost past retirement benefits.

Hogan worked for the Kansas City Police Department for over 24 years when, on August 28, 2000, he had a confrontation with his supervisor, Sergeant Michael Corwin. Based on the confrontation, Hogan filed a claim of age discrimination against the Police Board and was ultimately successful, receiving a jury verdict of $700,000 in actual damages and $2,000,000 in punitive damages. The Police Board and Hogan later entered into a settlement agreement in which Hogan was paid $1,950,000 and was allowed to pursue this action for review of benefits in his retirement case.

Hogan sustained injuries resulting from the confrontation in the form of headaches, loss of sleep, and depression. To treat his injuries, Hogan received medical treatment from Dr. Bryon Milgram, a psychiatrist, and Dr. Bernard Abrams, a neurologist. Both Dr. Milgram and Dr. Abrams opined that the sole and exclusive cause of Hogan's injuries was his confrontation with Corwin. Both doctors also stated that Hogan was permanently unable to perform the full and unrestricted duties of a police officer as a result of his injuries. Hogan also sought treatment from a police department physician, Dr. Craig Lofgreen, who determined Hogan was permanently disabled as a police officer but did not determine whether Hogan's injury was duty related.

Upon filing his age discrimination case, Hogan was examined by the Police Board's physician, Dr. George Harris, who determined that Hogan was unable to perform the full and unrestricted duties of a police officer. Dr. Harris did not opine as to whether Hogan's injury was duty related. After Hogan's medical file was sent to the medical board of the Retirement Board, Dr. Harry Brown, a licensed psychologist with the medical board, examined Hogan and reviewed his medical file. Dr. Brown determined that Hogan was permanently disabled and recommended Hogan be retired. Dr. Brown also opined that Hogan's disability was not duty related, although he stated that Hogan's condition was “the result of his reactions to incidents with his supervisors at work” and that there were “no other causative factors and there is no documented history of mental illness or physical problems before the work incidents of August 2000.” Nonetheless, Dr. Brown stated that he did not consider Hogan's condition to be work related because:

[i]f the police department does not find that there was any wrongdoing on their part then this would meet the criteria of being exclusively caused by P.O. Hogan's reactions to what he perceived happened to him. Therefore, the retirement would be considered non-service connected, if the police department does not find any wrongdoing on their part.

Following the resolution of his age discrimination claim, Hogan filed a petition for review in Jackson County Circuit Court, requesting review of the Police Board and Retirement Board's decision that Hogan be retired on a non-duty related basis, rather than on a duty related basis, pursuant to § 536.150.¹ Following a bench trial, the trial court ruled that Hogan's disability injuries were the sole and exclusive result of the confrontation with Corwin and awarded Hogan lost past retirement benefits.

On appeal, neither the Police Board nor the Retirement Board disagrees with the trial court's conclusion that Hogan's retirement was duty related. The Police Board contends that the trial court erroneously held that the Police Board acted arbitrarily and capriciously in certifying Hogan for retirement because it was required to certify the decision made by the Retirement Board. Further, the Police Board contends that the trial court erred in ordering the Police Board to pay lost past retirement benefits when such benefits are the sole responsibility of the Retirement Board. The Retirement Board makes three contentions on appeal: (1) the trial court committed plain error in denying the Retirement Board's motion to amend or for a new trial when the trial court awarded Hogan damages that included taxes Hogan would have to pay on receipt of his damages; (2) the trial court committed plain error in denying the Retirement Board's motion to amend or for a new trial when the trial court awarded Hogan damages of $2,978 for taxed retirement benefits in 2009; and (3) the trial court erred in ordering the Retirement Board to pay compensatory damages to Hogan when the Retirement Board is not authorized under statute to make such a payment.

Section 536.150 provides for judicial review of administrative decisions in matters that are not deemed “contested” cases pursuant to §§ 536.100 to 536.140. All parties concede this a “non-contested” case brought pursuant to § 536.150. In a § 536.150 proceeding, the trial court is required to conduct a de novo review and determine whether the agency's decision was “unconstitutional, unlawful, unreasonable, arbitrary, capricious or otherwise involves an abuse of discretion.” City of Valley Park v. Armstrong, 273 S.W.3d 504, 508 (Mo. banc 2009) (internal citations omitted).

On appeal from the circuit court of a noncontested administrative decision, we review the judgment of the circuit court, rather than the decision of the administrative agency. As such, our review is essentially the same as for other judgments in a judge-tried case. In reviewing a judge-tried case, ... we will affirm the decision of the trial court unless it is not supported by substantial and competent evidence, is against the weight of the evidence, or erroneously declares or applies the law.State ex rel. Christian Health Care of Springfield, Inc. v. Missouri Dep't of Health, 229 S.W.3d 270, 275 (Mo.App. W.D.2007) (internal quotation and citations omitted).

The Certification Process (Police Board Point I)

The Police Board contends that it did not act arbitrarily and capriciously, as held by the trial court, because it was required by statute to retire Hogan in accordance with the decision rendered by the Retirement Board. In October 2006, and again in June 2009, the Police Board filed motions to dismiss Hogan's petition for review on the basis that the Police Board had no statutory authority to decide whether Hogan's retirement was duty or non-duty related, because that decision was reserved for the Retirement Board. The trial court denied both motions on September 1, 2009, and held that the Police Board was authorized by law to make the determination whether a disability was duty or non-duty related.

The duties and obligations of the Police Board and Retirement Board are generally codified in chapters 84 and 86 of the Missouri Revised Statutes. Chapter 84 addresses the authority and duties of the Police Board as to management of the police department, and Chapter 86 deals with the pension system. Pursuant to § 86.213, the Retirement Board is responsible for the administration and operation of the police retirement system. The Retirement Board also appoints three physicians to participate on the medical board and such physicians conduct medical examinations when directed by the Retirement Board. § 86.237.2.

The award of duty disability retirement benefits is governed by § 86.450.1, which states:

Any member who is permanently unable to perform the full and unrestricted duties of a police officer as the natural, proximate and exclusive result of an accident occurring within the actual performance of duty at some definite time and place or through an occupational disease ... shall be retired by the board of police commissioners upon certification by one or more physicians of the medical board of the retirement board that the member is mentally or physically unable to perform the full and unrestricted duties of a police officer, that the inability is permanent or likely to become permanent, and that the member should be retired.

The award of non-duty disability retirement benefits is governed by § 86.457.1, which states:

Any member who has completed ten or more years of creditable service and who has become permanently unable to perform the full and unrestricted duties of a police officer as the result of an injury or illness not exclusively caused or induced by the actual performance of his or her official duties or by his or her own negligence, shall be retired by the board of police commissioners upon certification by one or more physicians of the medical board of the retirement board that the member is mentally or physically unable to perform the full and unrestricted duties of a police officer, that the incapacity is permanent or likely to become permanent and that the member should be retired.

The Police Board contends that these statutory provisions mandated that the Police Board retire Hogan once the medical board certified he was unable to perform his duties as either duty or non-duty related and that it had no discretion as to that decision, and, therefore, it could not be liable. The trial court disagreed with the Police Board's interpretation of the statutes and held that the medical board's certification is not linked to the first portion of the statute, which defines the standard for a duty or non-duty related...