MARK D. PFEIFFER, Presiding Judge.
This lawsuit was filed in the Circuit Court of Cole County ("trial court") by Henry T. Herschel, Matthew W. Murphy, and John A. Tackes, each of whom is an Administrative Law Judge ("ALJ") in the Division of Workers' Compensation of the Department of Labor and Industrial Relations ("the Division") (the three plaintiffs are collectively referred to as "the ALJs"). The ALJs sought an injunction preventing their impending removal from employment with the Division. They named as defendants the Division, the Office of Administration, and various State officials, including the Governor and the Acting Director of the Division (whom we collectively refer to as "the State").
Following a bench trial, the trial court entered a permanent injunction enjoining the State from terminating the ALJs. The State appeals. We reverse.
The ALJs are the three most junior ALJs in the Division, measuring their seniority based on their ALJ service. On June 15, 2009, the four most junior ALJs received a letter from Peter Lyskowski, Acting Director of the Division ("the Director"), informing them that "in light of the reductions in the Division's fiscal year 2010 budget," effective June 30, 2009, the last day of the State's 2009 fiscal year,
On June 24, 2009, the ALJs filed this lawsuit to prevent their removal. The trial court issued a temporary restraining order barring their removal on June 29, 2009, and, after hearing evidence, a preliminary injunction to the same effect on July 9, 2009. A bench trial on the merits was conducted on August 26, 2009. On September 9, 2009, the trial court entered its Judgment and Permanent Injunction, which prohibited the State from terminating the employment of the ALJs, with certain exceptions not relevant to our disposition of the case.
The trial court's Judgment makes numerous findings of fact, which are not challenged on appeal. The trial court found that none of the ALJs "had any issues with their conduct, performance, or productivity while serving as ALJs in the Division" but that they had, instead, been selected for termination because they "were in the bottom four positions when the current roster of the Division's ALJs was sorted by time served as an ALJ within the Division." The trial court found that "[t]here is no evidence that the General Assembly, Governor or any other of the individual defendants targeted any of the [ALJs] for political reasons nor that they acted in a malicious or corrupt manner."
In its conclusions of law, the trial court held that section 287.610
The State defends the ALJs' removal by relying on section 287.610 and the Fiscal Year 2010 appropriation for administration of the Division, which is contained in section 7.840 of House Bill No. 7, 95th General Assembly. See 2009 Mo. Laws 61, 76-77 ("the FY 2010 Budget Appropriations Bill"). The trial court rejected the State's arguments, evidenced by its judgment referenced supra.
The State timely appealed.
"The court's judgment in a suit in equity will be affirmed unless there is no substantial evidence to support it, unless it was against the weight of the evidence, unless it erroneously declares the law, or unless it erroneously applies the law." Conseco Fin. Servicing Corp. v. Mo. Dep't of Revenue, 98 S.W.3d 540, 542 (Mo. banc 2003) (citing, inter alia, Murphy v. Carron, 536 S.W.2d 30, 32 (Mo. banc 1976)). Because they are questions of law, issues of statutory interpretation are reviewed de novo. Id.
Missouri's Workers' Compensation Law (Chapter 287, RSMo) was adopted by the legislature in 1925, approved by the voters of Missouri in 1926, and became effective in 1927. See Wengler v. Druggists Mut. Ins. Co., 583 S.W.2d 162, 164 (Mo. banc 1979), rev'd on other grounds, 446 U.S. 142, 100 S.Ct. 1540, 64 L.Ed.2d 107 (1980); Bethel v. Sunlight Janitor Serv., 551 S.W.2d 616, 618 (Mo. banc 1977). "The purpose [of Missouri's Workers' Compensation Law] is to provide a simple and nontechnical method of compensation for injuries sustained by employees through accident arising out of and in the course of employment and to place the burden of such losses on industry." Bethel, 551 S.W.2d at 618.
Chapter 287 provides that employers and employees or their dependents may make an application to the Division for a hearing regarding compensation for injuries alleged to have been sustained in the workplace. § 287.450. For approximately the first six decades, Missouri's Workers' Compensation Law referred to those employed by the Division to hear and determine employee workplace injury claims as "referees." Later, the title of this statutory employee position changed to administrative law judge. The position of administrative law judge is created by statute. § 287.610. While ALJs are not constitutionally created under article V of the Missouri Constitution (i.e. judicial branch of government), their role in the administration of justice in the State of Missouri is equally valuable to the citizenry of our state. Nonetheless, we also recognize that we are not permitted to make them something that they are not. Created by statute and not the Constitution, ALJs are state employees with certain due process rights, but they do not possess the same protections as article V members of the judiciary, and they are, indeed, subject to removal via methods that are excluded from article V of the Missouri Constitution— which brings us to the crux of this case.
This is a case involving construction of section 287.610. Two issues are presented: (1) does section 287.610 provide that ALJs may
Section 287.610.2 through .5 describes a process by which an individual ALJ can be removed following a performance audit process resulting in two votes of no confidence. There is no dispute that the ALJs in this case were not discharged pursuant to the procedures described in section 287.610.2 through .5. The ALJs claim that the "performance audit" process described in section 287.610.2 through .5 provides the sole and only basis for removal of an ALJ, once appointed. The State argues that section 287.610.1 affords the Division the alternative authority to discharge ALJs based on the requirements and needs of the Division as evidenced by appropriations from Missouri's General Assembly. We must determine, therefore, the legislature's intent by employing recognized principles of statutory construction.
We are required to give effect to all provisions of a statute, and to ascertain the intent of the legislature from the language used, considering the words in their plain and ordinary meaning. Cmty. Fed. Sav. & Loan Ass'n v. Dir. of Revenue, 752 S.W.2d 794, 798 (Mo. banc 1988). Section 287.610.1 provides, in pertinent part:
(Emphasis added.) The plain language of section 287.610.1 clearly envisions that the tenure of ALJs within the Division is subject to the legislature's appropriation of funds to the Division.
This conclusion is reinforced by review of the legislative evolution of section 287.610.1. Before 1998, section 287.610.1 provided, in pertinent part:
(Emphasis added.) The pre-1998 version of the statute thus expressly stated that the removal or discharge of an ALJ could
In 1998, section 287.610.1 was revised. It provided:
(Emphasis added.) The 1998 version of section 287.610 retained the language expressly providing that the
In 2005, section 287.610.1 was amended to the version of the statute in force today.
We afford significance to legislative modifications of a statute, particularly where a concept once clearly articulated, such as the directive that the only way to remove an ALJ is for cause, is eliminated from the statute. State v. Bouse, 150 S.W.3d 326, 334 (Mo.App. W.D.2004) (citing State v. Sweeney, 701 S.W.2d 420, 423 (Mo. banc 1985)). We are left with a version of section 287.610 which in no way states or suggests that the
Having determined that section 287.610.1 generally permits the removal or discharge of ALJs based upon the legislature's appropriation of funds to the Division, we must determine whether, under the facts and circumstances of this case, the Division acted in accordance with section 287.610.1 when it discharged the ALJs.
The first sentence of section 287.610.1 provides that, "[a]fter August 28, 2005, the division may appoint additional administrative law judges for a maximum of forty authorized administrative law judges." Though the first sentence of section
The second sentence of section 287.610.1 previously provided that "[a]ppropriations
The Missouri Constitution only permits the General Assembly to "make appropriations for one or two fiscal years." Mo. Const. art. IV, § 23. See also State ex rel. Fath v. Henderson, 160 Mo. 190, 60 S.W. 1093, 1097 (1901) ("[O]ne general assembly cannot tie the hands of its successor. . . ."); State ex rel. Kansas City Symphony v. State, 311 S.W.3d 272, 278 (Mo.App. W.D. 2010).
The removal of the phrase "for any additional appointment" from the discussion of appropriations, coupled with the legislature's removal of the language stating that ALJs can only be removed for cause, requires us to conclude that the legislature intended the second sentence of section 287.610.1 to afford another mechanism to reduce the number of ALJs actually serving. Just as the first sentence of section 287.610.1 necessarily incorporates the Division's
Our recognition that the second sentence of section 287.610.1 permits the legislature to authorize a reduction in the number of serving ALJs through the exercise of its appropriations power is consistent with long-standing and fundamental principles of Missouri law. Although the legislature's participation typically ends once legislation is enacted, Bowsher v. Synar, 478 U.S. 714, 733-34, 106 S.Ct. 3181, 92 L.Ed.2d 583 (1986), the Missouri Supreme Court has recognized that the legislature "may, of course, attempt to control the executive branch . . . by the power of appropriation." Mo. Coal. for Env't v. Joint Comm. on Admin. Rules, 948 S.W.2d 125, 134 (Mo. banc 1997) (emphasis added). Of particular significance here, the Supreme Court has explained that, absent constitutional inhibition,
We conclude, therefore, that the first and second sentences of section 287.610.1 afford the Division the authority to remove or discharge ALJs under at least two circumstances: (1) where the legislature amends the statute to reduce the maximum number of ALJs permitted to serve below the number of ALJs then serving; and (2) where the legislature reduces appropriations for ALJs.
Having established that the Division had the general authority to discharge ALJs in response to a reduction in appropriations, we must finally determine whether the FY 2010 Budget Appropriations Bill reduced appropriations for ALJs in the sense contemplated by section 287.610.1. The second sentence of section 287.610.1 does not address, and thus does not dictate, the specific manner in which the legislature must advise the Division that appropriations for ALJs have been modified.
Here, there is no dispute that the executive branch's Fiscal Year 2010 budget recommendation listed a reduction of five ALJs as a "core adjustment" to the Division's budget.
We need not, and do not, decide whether the legislative action on the FY 2010 appropriation for the Division mandated that the Director in fact eliminate the ALJs' positions, or whether the Director could instead have chosen in his discretion to retain the ALJs by eliminating other personnel expenditures to keep the Division within the lump-sum dollar amounts and F.T.E. count specified in the FY 2010 Budget Appropriations Bill. The course of legislative proceedings establishes beyond dispute that the General Assembly was made aware of the executive branch's recommendation to eliminate five ALJ positions and based its own FY 2010 appropriation for the Division (including its explicit directive as to the Division's maximum total F.T.E.s) on that recommendation. At a minimum, the legislature's action was sufficient to authorize, even if it did not require, the termination of the ALJs under the second sentence of section 287.610.1.
We conclude that the Director had the authority to discharge the ALJs from the Division. The trial court erred in entering judgment in favor of the ALJs in all respects recorded by the trial court's judgment. Accordingly, the judgment of the trial court is reversed. Because no material facts are in dispute and the State is entitled to judgment as a matter of law, judgment shall be and is entered in favor of the State and against the ALJs.
VICTOR C. HOWARD, Judge, and ALOK AHUJA, Judge, concur.