Summary
In Lewis v. Benson (1979), 60 Ohio St.2d 66 [14 O.O.3d 269], the court cited Parrott and ruled that a state civil service employee was not entitled to interest on back pay awarded to him for his improper dismissal.
Summary of this case from Meyer v. Chagrin Falls Exempted Village School District Board of EducationOpinion
No. 79-182
Decided November 28, 1979.
Civil service — Wrongful discharge — Award of back pay — Interest not allowable.
In the absence of a statute requiring it, interest cannot be adjudged against the state on an award of back pay to a wrongfully discharged state civil service employee.
APPEAL from the Court of Appeals for Lucas County.
Lawrence P. Benson, Superintendent of the Toledo Mental Health Center, appellant herein, removed Thomas H. Lewis, appellee, from his state civil service position at such center on July 8, 1976, for alleged failure of good behavior and neglect of duty. Upon appeal, the State Personnel Board of Review affirmed such removal.
Lewis appealed the board's decision to the Court of Common Pleas of Lucas County, which reversed the board's decision and ordered Lewis reinstated with back pay upon which six percent interest was allowed. Benson appealed the portion of that decision which ordered interest at six percent to the Court of Appeals which affirmed, in a divided decision, the allowance of such interest.
The cause is now before this court upon the allowance of a motion to certify the record.
Mr. Ronald H. Janetzke, for appellee.
Mr. William J. Brown, attorney general, and Ms. Phyllis R. Streitel, for appellant.
The issue in this case is whether the trial court erred in allowing interest on an award of back pay to a wrongfully discharged state civil service employee.
Appellee, Lewis, cites numerous National Labor Relations Act cases in which wrongfully discharged employees of private employers were allowed interest on the back pay awarded to them. E.g., N.L.R.B. v. Gray-Grimes Tool Co. (C.A. 6, 1977), 557 F.2d 1233, 1234; Isis Plumbing Heating Co. (1962), 138 N.L.R.B. No. 97, 51 LRRM 1122. He urges this court to adopt the same principle of law for wrongfully discharged state civil service employees.
However, the law makes a distinction on the liability for payment of interest between a private corporation and a sovereign state. The fourth paragraph of the syllabus in State, ex rel. Parrott, v. Board of Public Works (1881), 36 Ohio St. 409, reads as follows:
"In the absence of a statute requiring it, or a promise to pay it, interest cannot be adjudged against the state for delay in the payment of money."
Indus. Comm. v. Phillips (1926), 114 Ohio St. 607, 623-624, is in accord with the Parrott case.
There is no statutory authority for an award of interest on back pay for a wrongfully discharged state civil service employee. A public employee holds his office as a matter of law and not of contract. Fuldauer v. Cleveland (1972), 32 Ohio St.2d 114.
Most states have held that in the absence of a statute authorizing it, or a lawful contract requiring it, a state is not liable to pay interest on its debts. Maurice L. Bein, Inc., v. Housing Authority (1958), 157 Cal.App.2d 670, 321 P.2d 753; Brown v. State Highway Comm. (1970), 206 Kan. 49, 476 P.2d 233; East Orange v. Palmer (1968), 52 N.J. 329, 245 A.2d 327; Purdy Estate (1972), 447 Pa. 439, 291 A.2d 93; Bond v. State (1967), 70 Wn.2d 746, 425 P.2d 10; Guaranty Trust Co. v. West Virginia Turnpike Comm. (1959), 144 W. Va. 266, 107 S.E.2d 792.
We conclude that the trial court erred in allowing interest on the award of back pay to appellee Lewis.
Accordingly, the judgment of the Court of Appeals is reversed.
Judgment reversed.
CELEBREZZE, C.J., HERBERT, P. BROWN, LOCHER and HOLMES, JJ., concur.
W. BROWN, J., dissents.
LYNCH, J., of the Seventh Appellate District, sitting for Sweeney, J.