Teamsters Local 97, Affiliated With the Int'l Bhd. of Teamsters v. State
| Decision Date | 31 January 2014 |
| Court | New Jersey Superior Court |
| Parties | TEAMSTERS LOCAL 97, affiliated with the International Brotherhood of Teamsters, and Professional Firefighters Association of New Jersey, I.A.F.F., AFL–CIO, Plaintiffs–Appellants, v. STATE of New Jersey, Christopher J. Christie, as Governor of the State of New Jersey, the New Jersey Senate and its Members, Stephen M. Sweeney, as its President and as a Representative of the Individual Members of the New Jersey Senate, the New Jersey General Assembly and its Members, Sheila Y. Oliver, as its Speaker and as a Representative of the Individual Members of the New Jersey General Assembly, and Andrew P. Sidamon–Eristoff, Treasurer of the State of New Jersey, Defendants–Respondents. New Jersey State Firefighters' Mutual Benevolent Association, New Jersey State Policeman's Benevolent Association, Gloucester City FMBA Local No. 51, North Wildwood FMBA Local No. 56, Trenton FMBA Local No. 6, Kearny FMBA Local No. 18, New Brunswick FMBA Local No. 17, Belleville FMBA Local Nos. 29 and 229, Springfield FMBA Local 57, Springfield FMBA Local 57A, South Orange PBA Local No. 12, Neptune PBA Local No. 74, Essex County Sheriff's Officers PBA Local No. 183, Keyport PBA Local No. 223, Passaic County Sheriff's Officers PBA Local No. 286, Rutherford PBA Local No. 300, Paterson PBA Local No. 1 and Superior Officers Ass'n William Lavin, Robert Brower, and Anthony F. Weiners, Plaintiffs–Appellants, v. State of New Jersey, New Jersey Department of the Treasury, New Jersey State Health Benefits Commission, Andrew P. Sidamon–Eristoff, Treasurer, State of New Jersey, individually and officially, New Jersey State Senate, as a body politic of the State of New Jersey, and New Jersey State General Assembly, as a body politic of the State of New Jersey, Defendants–Respondents. New Jersey Education Association, Plaintiff–Appellant, v. State of New Jersey, Christopher J. Christie, as Governor of the State of New Jersey, New Jersey Department of the Treasury, Andrew P. Sidamon–Eristoff, Treasurer, State of New Jersey, individually and officially, New Jersey State Health Benefits Commission, New Jersey School Employees Health Benefits Commission, New Jersey State Senate, as a body politic of the State of New Jersey, Stephen M. Sweeney, as President and as a Representative of the Members of the New Jersey State Senate, New Jersey State General Assembly, as a body politic of the State of New Jersey, Sheila Y. Oliver, as its Speaker and Representative of the Members of the New Jersey General Assembly, Defendants–Respondents. New Jersey Fraternal Order of Police, Plaintiff, v. State of New Jersey, New Jersey Department of the Treasury, New Jersey State Health Benefits Commission, Andrew P. Sidamon–Eristoff, Treasurer, State of New Jersey, individually and officially, New Jersey State Senate, as a body politic of the State of New Jersey, New Jersey State General Assembly, as a body politic of the State of New Jersey, Defendants. Kearny Firemen's Mutual Benevolent Association, Local No. 18, Plaintiff, v. Town of Kearny, Defendant. Belleville Firemen's Mutual Benevolent Association, Local Nos. 29 & 229, Plaintiffs, v. Township of Belleville, Defendant. |
OPINION TEXT STARTS HERE
James M. Mets argued the cause for appellants Teamsters Local 97 and Professional Firefighters Association of New Jersey (Mets Schiro & McGovern, LLP, attorneys; Mr. Mets, of counsel and on the brief; Brian J. Manetta, Iselin, on the brief).
David I. Fox argued the cause for appellants New Jersey State Firefighters' Mutual Benevolent Association, its locals and members (Fox and Fox, LLP, attorneys; Mr. Fox, Craig S. Gumpel, Livingston, and Jessica S. Swenson, West Caldwell, of counsel and on the brief).
Paul L. Kleinbaum argued the cause for appellants New Jersey State Policemen's Benevolent Association (Zazzali Fagella Nowak Kleinbaum & Friedman, attorneys; Mr. Kleinbaum, of counsel and on the brief; Edward M. Suarez, Jr., Newark, on the brief).
Richard A. Friedman argued the cause for appellant New Jersey Education Association (Zazzali Fagella Nowak Kleinbaum & Friedman, attorneys; Mr. Friedman, of counsel and on the brief; Edward M. Suarez, Jr., Newark, on the brief).
Jean P. Reilly, Deputy Attorney General, argued the cause for respondents State of New Jersey, Governor Christopher J. Christie, and Treasurer Andrew P. Sidamon–Eristoff (Jeffrey S. Chiesa, Attorney General, attorney; Robert T. Lougy, Assistant Attorney General, of counsel; Natalia T. Chan, Deputy Attorney General, on the brief).
Leon J. Sokol argued the cause for respondents New Jersey Senate, General Assembly, Stephen M. Sweeney, and Sheila Y. Oliver (Sokol, Behot & Fiorenzo, attorneys; Mr. Sokol, of counsel; Steven Siegel, Hackensack, on the brief).
Before Judges SAPP–PETERSON, NUGENT and HAAS.
This opinion of the court was delivered by
The issues in these consolidated appeals involve public employees of the State, its political subdivisions, and their agencies. As compensation for their services, many public employees receive, among other benefits, health care insurance and pensions. To the extent the employees are required to contribute toward their benefits, their disposable income is reduced. Yet, the money that funds employee benefits is not unlimited. The State's officials are charged with the profound responsibility not only of ensuring that the health care and pension systems remain fiscally sound, but also that the State remains fiscally strong and that the burden on the State's taxpayers does not become intolerable. The interests of public employees and their representatives sometimes clash with the obligations of State government. Such is the case in this appeal.
Plaintiffs, who represent state and local public employees in collective negotiations with public employers, challenge the constitutionality of three laws: L. 2010, c. 1 (Chapter 1), which made changes to State-administered retirement systems; L. 2010, c. 2 (Chapter 2), which made changes to eligibility requirements for and benefits provided through the State Health Benefits Program (SHBP) and School Employees' Health Benefits Program (SEHBP); and L. 2010, c. 3 (Chapter 3), which made changes to other public employee benefits. The trial court dismissed plaintiffs' consolidated complaints for failure to state a claim.
In these consolidated appeals, plaintiffs argue that the trial court misapplied the standard for evaluating a motion to dismiss a complaint under Rule 4:6–2(e) for failure to state a claim upon which relief can be granted. Plaintiffs also argue that the trial court erred when it concluded that Chapters 1, 2, and 3 did not violate either the State or Federal Constitution. Having considered plaintiffs' arguments in light of the record and controlling law, we conclude that the trial court properly construed and applied Rule 4:6–2(e) when it dismissed plaintiffs' complaints. We further conclude that plaintiffs have not carried their heavy burden of demonstrating that the laws are unconstitutional. Accordingly, we affirm.
The plaintiffs in these consolidated appeals are Teamsters Local 97 (Teamsters); the Professional Firefighters Association of New Jersey (PFANJ); the New Jersey State Firefighters' Mutual Benevolent Association (FMBA) and affiliated locals; the New Jersey State Policeman's Benevolent Association (PBA) and affiliated locals; and the New Jersey Education Association (NJEA). New Jersey Fraternal Order of Police, Kearny Firemen's Mutual Benevolent Association, and Belleville Firemen's Mutual Benevolent Association Local Nos. 29 and 229, parties to the actions that were consolidated in the trial court, have not filed separate appeals. Defendants are the State of New Jersey, Governor Christopher J. Christie, the New Jersey Department of the Treasury and State Treasurer Andrew P. Sidamon–Eristoff, the State Health Benefits Commission (SHBC), and the School Employees Health Benefits Commission (SEHBC) (collectively, the Executive Defendants); the State Senate and its President, Stephen M. Sweeney, and the State General Assembly and its Speaker, Sheila Y. Oliver (collectively, the Legislative Defendants).
Plaintiffs seek to have Chapters 1, 2, and 3 declared void as unconstitutional. Because courts assessing constitutional challenges to state legislation must consider, among other factors, the governmental interests furthered by the legislation, we begin our analysis with the legislative history of Chapters 1, 2, and 3. We also review the legislative history of L. 2011, c. 78, which has superseded certain sections of Chapter 2.
On February 8, 2010, the Legislature introduced Senate Bill Numbers 2, 3, and 4. S. 2, 214th Leg. (N.J. 2010); S. 3, 214th Leg. (N.J. 2010); S. 4, 214th Leg. (N.J. 2010). The legislation was “designed to improve the fiscal strength of State and local governments, reduce taxpayer burdens, and ensure the health and pension systems remain viable for current and future employees.” Commc'ns Workers of Am. v. State of N.J., Dept. of Treasury, 421 N.J.Super. 75, 83, 22 A.3d 170 (Law Div.2011).
The three Senate bills implemented some of the recommendations of a Special Session Joint Legislative Committee on Public Employee Benefits Reform (Special Joint Committee), while leaving other recommendations to collective negotiations. See Special Session Joint Legislative Comm. on Pub. Emp. Benefits Reform, Final Report (2006), available at http:// www. njleg. state. nj. us/ property Tax Session/ JCPE_ final_ report. pdf. The Special Joint Committee was created pursuant to a Concurrent Resolution that declared “[t]his State's high property taxes are a matter of great concern to the people of New Jersey.” Assemb. Con. Res. 3, 212th Leg. (N.J. 2006). The resolution created four legislative committees, including one on public employee benefits, tasked with developing proposals to reduce property taxes. N.J....
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