V. PETITION FOR APPEAL ON BEHALF OF FORTY-NINE OF THE …

IN THE SUPREME COURT OF APPEALS OF WEST VIRGINIA

Supreme Court Docket No. _ _ _ _ __ Civil Action No. 10-C-327 (Circuit Court of Kanawha County)

BOARDS OF EDUCATION OF THE COUNTIES OF: :;:>; :p'?c

BARBOUR,BERKELEy,BOONE,BRAXTON,BROOKE,CABELL,~~ ~

CALHOUN, CLAY, DODDRIDGE, FAYETTE,

.

GILMER, GREENBRIER, HAMPSHIRE,

?;:-: 2";:

"'"' ~b

HANCOCK, HARDY, HARRISON, JACKSON, JEFFERSON,

... 0

KANAWI-lA, LEWIS, LINCOLN, LOGAN, MARION,

MARSHALL, MASON, MCDOWELL, MERCER, MINERAL,

MONROE, MORGAN, NICHOLAS, PENDLETON,

PLEASANTS, POCAHONTAS, PUTNAM,

RALEIGH, RANDOLPH, RITCHIE, ROANE, SUMMERS,

. TAYLOR, ruCKER, TYLER, UPSHUR, WEBSTER, WETZEL,

WIRT, WOOD, AND WYOMING,

Petitioners,

v.

PUBLIC EMPLOYEES INSURANCE AGENCY,

PUBLIC EMPLOYEES INSURANCE AGENCY

I

FINANCE BOARD, and WEST VIRGINIA STATE AUDITOR,

Respondents.

PETITION FOR APPEAL ON BEHALF OF FORTY-NINE OF THE COUNTY BOARDS OF EDUCATION OF WEST VIRGINIA

Submitted by:

Andrew G. Fusco, Esq. (WVSB 1317) Gregory W. Bailey, Esq. (WVSB 206) Bowles Rice McDavid Graff & Love LLP 7000 Hampton Center Morgantown, West Virginia 26505 (304) 285-2500

Howard E. Seufer, Esq. (WVSB 3342) Jill E. Hall, Esq. (WVSB 8812) Bowles Rice McDavid Graff & Love LLP Post Office Box 1386 Charleston, West Virginia 25325 (304) 347-1100

TABLE OF CONTENTS

1. KIND OF PROCEEDING AND NATURE OF RULING BELOW .................................. 1

II. STATEMENT OF FACTS .................................................................................................. 4

A. The PEIA Health Plan ............................................................................................. 4 B. The Public School Support Plan ....................................;......................................... 5 C. GASB Statement No. 45 .......................................................................................... 6 . D. Respondents ............................................................................................................. 9 E. Petitioners' .Claims ................................................................................................ 10

III. ASSIGNMENTS OF ERROR........................................................................................... 15

A. The Circuit Court erred in concluding that Petitioners' complaint raised a nonjusticiable political question............................................................... 15

1. The Circuit Court erred in concluding that the funding of the OPEB liability was an issue raised in the complaint........................... 15

2. The Circuit Court erred in refusing to hear Petitioners' constitutional challenge to the imposition of the total OPEB liability....................................................................................................... 15

B. The Circuit Court erred in concluding that the complaint did not satisfy the factors relevant to detennining whether a court should entertain a declaratory judgment action................................................................. 15

1. The Circuit Court erred in concluding that the controversy at issue involves uncertain and contingent events..................................... 15

2. The Circuit Court erred in concluding that there does not exist a substantial controversy among adverse parties.............................. 15

3. The Circuit Court erred in concluding that allowing the case to proceed would not serve a useful purpose and would not settle the underlying controversy.............................................. 15

IV. STANDARD OF REVIEW ............................................................................................... 16

V. DISCUSSION OF LAW ................................................................................................... 18

A. The Circuit Court erred in concluding that Petitioners' complaint raised a nonjusticiable political question............................................................... 18

1. The Circuit Court erred in concluding that the funding of the OPEB liability was an issue raised in the complaint. .......................... 18

2. The Circuit Court erred in refusing to hear Petitioners' constitutional challenge to the imposition of the total OPEB liability....................................................................................................... 22

B. The Circuit Court erred in concluding that the complaint did not satisfy the factors relevant to determining whether a court should entertain a declaratory judgment action................................................................. 26 1. The Circuit Court erred in concluding that the controversy at issue involves uncertain and contingent events..................................... 28 2. The Circuit Court erred in concluding that there does not exist a substantial controversy among adverse parties.............................. 33 3. The Circuit Court erred in concluding that allowing the case to proceed would not serve a useful purpose and would not settle the underlying controversy.............................................. 37

VI. RELIEF REQUESTED ..................................................................................................... 38

11

TABLE OF AUTHORITIES

Statues

W. VA. CODE ? 18-9A-l ............................................................................................................ 5, 20

W. VA. CODE ? 18-9A-24(a) ...........................................................................................................6

W. VA. CODE ? 18-9D-l ................................................................................................................36

W. VA. CODE ? 5-13-1 ...............................................................................................................3, 14

W. VA. CODE ? 5-13-12 ................................................................................................................. 27

W. VA. CODE ? 5-16-2 .....................................................................................................................4 W. VA. CODE ? 5-16-22 .............................................................................................................4, 37

W. VA. CODE ? 5-16-3(c) ................................................................................................................4

W. VA. CODE ? 5-16-5(a) ................................................................................................................ 9

W. VA. CODE ? 5-16D-l(q) ........................................................................................................... 10

W. VA. CODE ? 5-16D-2 .................................................................................................................. 9

I

W. VA. CODE ? 5-16D-3(c) .............................................................................................................9

W. VA. CODE ? 5-16D-3(g) ............................................................................................................. 9

W. VA. CODE ? 5-16D-3G) ..............................................................................................................9 W. VA. CODE ? 5-16D-5 ..................................................................................................................9 W. VA. CODE ? 5-16D-6(a) ..............................................................................................................9 .

W. VA. CODE ? 5-16D-6(b) ..............................................................................................................9

W. VA. CODE ? 5-16D-6(c) ........................................................................................................... 10 W. VA. CODE ? 5-16D-6(e) ....................................................................................................passim

W. VA. CODE ? 11-8-26................................................................................................................. 12

W. VA. CODE ? 55-13-1 .................................................................................................................27

W. VA. CODE ? 55-13-2 ................................................................................................................. 27

Cases

Board ofEducation of Wyoming Co. v. Board ofPublic Works, 144 W. Va. 593, 109 S.E.2d 552 (1959) ........................................................................................... 27, 31, 33

Carey v. Wolnitzek, 2006 WL 2916814 (E.D. Ky. 2006) ..............................................................35 City ofBridgeport v. Matheny, 223 W. Va. 445, 675 S.E.2d 921 (2009) .....................................27 Cox v. Amick, 195 W.Va. 608,466 S.E.2d459 (1995) ..........................................................passim Ex Parte Young, 209 U.S. 123,28 S.Ct. 441,52 L.Ed. 714 (1908) ..............................................35 Farley v. Graney, 146 W. Va. 22, 119 S.E.2d 833 (1960) ...................................................... 28, 33 Husteadv. Ashland Oil, Inc., 197 W. Va. 55,475 S.E.2d 55 (1996) ............................................28 Kanawha County Pub. Library v. County Court ofKanawha County, 143 W. Va.

385, 102 S.E.2d 712 (1958) ...............................................................................................25 Kuhn v. Board ofEducation ofWellsburg, 4 W. Va. 499 (1871)............................................ 22, 24 Marburyv. Madison, 5 U.S. 137,2 L.Ed. 60 (1803)..................................................................... 25

Maryland Cas. Co. v. Pacific Coal & Oil Co., 312 U.S. 270 (1941) ............................................33 Pauley v. Bailey, Civil Action No. 75-1268, Opinion, Findings ofFact and

Conclusions ofLaw and Order at 215 (Cir. Ct. Kanawha County, W. Va. May 11, 1982).................................................................................................................... 21 Pauley v. Kelly, 162 W. Va. 672, 255 S.E.2d 859 (1979) ................................................. 20, 24, 26 Putnam v. Davies, 169 F.R.D. 89 (S.D. Ohio 1996) ..................................................................... 35 Randolph County Board ofEducation v. Adams, 196 W. Va. 9,467 S.E,2d 150 (1995) ..................................................................................................................... 19, 21, 22 Reguli v. Guffee, 2009 WL 910885 (M.D. Tenn. 2009) ................................................................ 35 State ex reI. Armbrecht v. Thornburg, 13 7 W. Va. 60, 70 S.E.2d 73 (1952) ................................25 State ex rei. Bagley v. Blankenship, 161 W. Va. 630, 246 S.E.2d 99 (1978) ................................ 26 State ex rei. Bd. ofEduc. for County ofGrant v. Manchin, 179 W. Va. 235, 366 S.E.2d 743 (1988) ...............................................................................................................25 State ex rei. Brotherton v. Blankenship, 157 W. Va. 100,207 S.E.2d 421 (1973) ................. 23, 24 State ex rei. The Board ofEducation, County ofKanawha v. Hon. John D. Rockefeller, IV, Governor, et al., 167 W. Va. 72,281 S.E.2d 131 (1981) .................. 20, 24

ii

West Virginia-Pittsburgh Coal Co. v. Strong, 129 W. Va. 832, 42 S.E.2d 46 (1947).................................................................................................................................. 27

Winkler v. State School Building Authority. 189 W. Va. 748,434 S.E.2d 420 (1993)........................................................................................................................... 35, 36

Otber Autborities

Statement No. 45 of the Governmental Accounting Standards Board, Accounting and Financial Reporting by Employers for Postemployment Benefits Other than Pensions (June 2004)........................................................:........................................................passim

IN THE SUPREME COURt OF APPEALS OF WEST VIRGINIA

Supreme Court Docket No. _ _ _ _ __ Civil Action No. 1O~C~327 (Circuit Court of Kanawha County)

BOARDS OF EDUCATION OF THE COUNTIES OF:

=-'~

BARBOUR, BERKELEY, BOONE, BRAXTON, BROOKE, CABELL, ~~

CALHOUN, CLAY, DODDRIDGE, FAYETTE,

~;~ ................
................

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