Weber v. Hvass

• Decision Date: 24 April 2001
• Docket Number: No. C6-00-1707.,C6-00-1707.
• Citation: 626 N.W.2d 426
• Parties: Russell Howard WEBER, et al., for themselves, and on behalf of all similarly situated persons, Appellants, v. Sheryl Ramstad HVASS, individually and in her official capacity as Commissioner of the Minnesota Department of Corrections, et al., Respondent.
• Court: Minnesota Court of Appeals

626 N.W.2d 426

Russell Howard WEBER, et al., for themselves, and on behalf of all similarly situated persons, Appellants, v. Sheryl Ramstad HVASS, individually and in her official capacity as Commissioner of the Minnesota Department of Corrections, et al., Respondent.

No. C6-00-1707.

Court of Appeals of Minnesota.

April 24, 2001.

Review Denied June 27, 2001.

Robert J. Hennessey, Sandra S. Smalley, Lindquist & Vennum, P.L.L.P., Minneapolis, MN, for appellants.

Teresa Nelson, Minnesota Civil Liberties Union, St. Paul, MN, of counsel for appellants.

Michael A. Hatch, Minnesota Attorney General, Kurt J. Erickson, Assistant Attorney General, Jennifer K. Park, Assistant Attorney General, St. Paul, MN, for respondent.

Considered and decided by STONEBURNER, Presiding Judge, KALITOWSKI and HALBROOKS, Judges.

OPINION

STONEBURNER, Judge

Appellants, a putative class of adult inmates in correctional facilities administered by the Minnesota Department of Corrections (DOC) and a putative class of non-inmates who send money gifts to inmates, filed this class-action lawsuit against respondent Sheryl Ramstad Hvass, Commissioner of Corrections for the State of Minnesota, individually and in her capacity as commissioner of the DOC, and Dennis L. Benson, individually and in his capacity as Deputy Commissioner of Corrections, challenging the imposition of a 10% cost-of-confinement surcharge on money sent as gifts to adult inmates incarcerated in DOC correctional facilities. The district court granted summary judgment in favor of respondents on all claims. We affirm.

FACTS

The material facts are undisputed. On July 5, 1999, Commissioner Ramstad Hvass issued a memorandum that, effective September 1, 1999, DOC would collect costs of confinement from funds sent to adult inmates incarcerated in DOC correctional facilities. The policy was posted at all DOC facilities. Before the policy was implemented, on August 31, 1999, DOC revised the policy by exempting some funds from the surcharge.¹ Pursuant to the policy, before non-exempt, non-wage funds are deposited to an inmate's account, DOC deducts 10% for partial reimbursement of confinement costs.

In January 2000, appellants, adult inmates in DOC correctional facilities and non-inmates who send gifts of money to inmates, filed this class-action lawsuit challenging the cost-of-confinement policy. The classes were never certified. The named inmate appellants are: Russell Howard Weber, surcharged approximately $12.50; Harold John Wilwert, Jr., surcharged approximately $157.50; and Gustavo Dion Saucedo, surcharged approximately $79. The named non-inmate appellants are Betty Rairdon, whose inmate-husband was surcharged approximately ten cents; Rebecka Hall, whose inmate-husband was surcharged approximately $12.80; and Jacky Baily, whose inmate-son was surcharged approximately $24.

On July 31, 2000, the district court, in a thorough and well-reasoned opinion, granted summary judgment for respondents on all claims. This appeal follows.

ISSUES

I. Do the non-inmate appellants have standing to challenge the cost-of-confinement policy?

II. In enacting the cost-of-confinement policy, did DOC act beyond its statutory authority under Minn.Stat. § 243.23 (2000)?

III. In enacting the cost-of-confinement policy, did DOC violate the rulemaking requirements of the Minnesota Administrative Procedures Act?

IV. Does the cost-of-confinement policy violate appellants' procedural due-process rights?

V. Does the cost-of-confinement policy constitute an unconstitutional governmental taking?

VI. Does the cost-of-confinement policy impose a differential tax on the non-inmate appellants in violation of Minn. Const. Art. X, § 1?

ANALYSIS

On appeal from summary judgment, this court considers (1) whether there are any genuine issues of material fact, and (2) whether the district court erred in its application of the law. State by Cooper v. French, 460 N.W.2d 2, 4 (Minn.1990) (citation omitted). When the district court grants summary judgment based on the application of a statute to undisputed facts, the result is a legal conclusion reviewed de novo by the appellate court. Lefto v. Hoggsbreath Enters., Inc., 581 N.W.2d 855, 856 (Minn.1998) (citing Wallin v. Letourneau, 534 N.W.2d 712, 715 (Minn.1995)).

I.

The non-inmate appellants argue that the district court erred in finding that they have no standing. They contend that because the inmates did not have possession and control of the money at the time the surcharge was imposed, title to those funds never vested with the inmate and only the non-inmate appellants have suffered the actual injury.

"A litigant has standing when he or she has suffered an actual injury or otherwise has a sufficient stake in a justiciable controversy to seek relief from a court." Leffler v. Leffler, 602 N.W.2d 420, 422 (Minn.App.1999) (citing Cochrane v. Tudor Oaks Condo. Project, 529 N.W.2d 429, 433 (Minn.App.1995), review denied (Minn. May 31, 1995)). "Economic injury or the prospect of economic injury may be sufficient to establish standing." In re Application of Crown CoCo, Inc., 458 N.W.2d 132, 135 (Minn.App.1990). The district court concluded that once a non-inmate appellant sends money to DOC for an inmate, the gift is delivered and the donor has relinquished all control over the money. We agree.

The elements of a gift are (1) delivery; (2) intention to make a gift; and (3) absolute disposition by the donor of the thing which the donor intends as a gift. In re Estate of Lobe, 348 N.W.2d 413, 414 (Minn.App.1984). A gift requires that the donor "deliver the property to the donee, or to someone for him, with intent to vest title in the donee, and without reserving any right to reclaim the property." Oehler v. Falstrom, 273 Minn. 453, 142 N.W.2d 581, 585 (1966) (emphasis added). The only method by which the non-inmate appellants can make a monetary gift to an inmate is by sending money to DOC for deposit in an inmate's account. See Bell v. Wolfish, 441 U.S. 520, 545-46, 99 S.Ct. 1861, 1877-78, 60 L.Ed.2d 447 (1979) (finding inmates' rights and privileges limited by considerations of penal system); Mahers v. Halford, 76 F.3d 951, 954 (8th Cir. 1996) (recognizing inmates not entitled to complete control over their money).

DOC controls the receipt of money and property from outside sources for the inmates in order to safely and efficiently manage its facilities. DOC constructively receives funds on behalf of an inmate and then imposes a surcharge on the funds before depositing the gift into the inmate's account. The district court correctly concluded that the non-inmate appellants make an absolute disposition of their gifts once they send the money to DOC. The non-inmate appellants have not suffered an actual injury and do not have standing to challenge DOC's cost-of-confinement policy.

II.

Appellants argue that DOC exceeded its statutory authority under Minn.Stat. § 243.23 (2000) by creating a debt for costs of confinement and surcharging all incoming non-wage funds.

If an administrative agency's authority is questioned, this court independently reviews the enabling statute. Frost-Benco Elec. Ass'n v. Minnesota Pub. Utils. Comm'n, 358 N.W.2d 639, 642 (Minn.1984). "[A] determination of an administrative agency is void and subject to collateral attack where it is made either without statutory power or in excess thereof." Crown CoCo,458 N.W.2d at 136 (quotation omitted).

The purpose of statutory interpretation is to effectuate legislative intent. Minn.Stat. § 645.16 (2000). "Every law shall be construed, if possible, to give effect to all its provisions." Id. A statute should be construed so no phrase is "superfluous, void, or insignificant." Boutin v. LaFleur, 591 N.W.2d 711, 716 (Minn. 1999) (citation omitted).

This court will examine legislative history as a tool for construing statutory language only when the language is ambiguous. State v. Sebasky, 547 N.W.2d 93, 99 (Minn.App.1996), review denied (Minn. June 19, 1996). When the words of a statute are unambiguous, "the letter of the law shall not be disregarded under the pretext of pursuing the spirit." Minn.Stat. § 645.16 (2000).

Minn.Stat. § 243.23, subd. 1² provides that the commissioner may pay inmates for work performed and control that compensation:

Notwithstanding any law to the contrary, the commissioner of corrections may provide for the payment to inmates of correctional facilities under the commissioner's management and control any pecuniary compensation the commissioner deems proper, the amount of compensation to depend upon the quality and character of the work performed as determined by the commissioner of corrections and the chief executive officer.

Subdivision 2 gives the commissioner specific authority to require inmates to pay part of the costs of confinement out of their earnings:

The commissioner may promulgate rules requiring the inmates of adult correctional facilities under the commissioner's control to pay all or a part of the cost of their board, room, clothing, medical, dental and other correctional services. These costs are payable from any earnings of the inmate, including earnings from private industry established at state correctional facilities pursuant to section 243.88.

Id., subd. 2. Subdivision 3 provides:

Notwithstanding sections 241.26, subdivision 5, and 243.24, subdivision 1, the commissioner may make deductions from funds earned under subdivision 1, or other funds in an inmate account, and section 243.88, subdivision 2. The commissioner shall make deductions for the following expenses in the following order of priority:

(1) federal and state taxes;

(2) repayment of advances;

(3) gate money as provided in section 243.24;

(4) support of families and dependent relatives of the respective inmates;

(5) payment of court-ordered restitution;

(6) room and board or other costs of confinement;

(7) medical expenses incurred under section 243.212;

(8) payment of fees and costs

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