DEPARTMENT OF HEALTH AND REHABILITATIVE SERVICES, APPELLANT,
v.
ELDORA BOYD, CAROL L. SHEPPARD, AND PUBLIC EMPLOYEES RELATIONS COMMISSION, APPELLEES

Fla. 1st DCA | 1988-03-25
Nos. BS-315/87-522
BOOTH and ZEHMER, JJ., concur.
525 So. 2d 432 Florida District Court of Appeal, First District (1988) Negative Treatment
Cited by 11 cases

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Synopsis

HRS appealed PERC's awards of 12% interest on back wages to employees wrongfully dismissed. The court affirmed, holding that when the State waives sovereign immunity to employment contract actions, it impliedly waives immunity regarding interest, which is a necessary incident of complete compensation.


Holding

PERC may award interest on back wages in career service appeals. When the State waives sovereign immunity to employment contract actions, it impliedly waives immunity regarding interest, which is a legal incident necessarily flowing from a finding of liability and essential for complete compensation.


Headnotes

[1] A government is generally not liable for interest unless there is an express statutory provision or stipulation for payment of interest.

[2] When a statute waives sovereign immunity to allow suits against the state, it may also implicitly waive immunity from paying interest on obligations pertinent to such sui…

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Key Quotes

“when the State has waived immunity to employment contract actions, as here, it has also impliedly waived immunity in regard to interest, which is a relief flowing naturally from a finding of liability and is necessary for complete compensation in such actions”

Establishes the core holding that sovereign immunity waiver for contract actions carries an implied waiver regarding interest awards

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Facts & Procedural History

Eldora Boyd and Carol L. Sheppard were dismissed from employment by HRS. After career service appeals hearings, PERC determined that HRS lacked just c…

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Opinion of the Court
WIGGINTON, Judge.

WIGGINTON, Judge.

Appellant, the Department of Health and Rehabilitative Services (HRS), appeals those portions of two Public Employees Relations Commission’s (PERC) final orders directing HRS to pay interest at 12 percent per annum on back wages awarded to appellees. We affirm.

Appellees appealed their dismissals from employment by HRS. After hearings on the merits of appellees’ career service appeals, the hearing officers recommended, and PERC agreed, that HRS lacked just cause to dismiss appellees. Accordingly, PERC reinstated them and awarded them back pay, including interest at 12 percent per annum.

HRS asserts that in the absence of a specific waiver of sovereign immunity in this regard, the State cannot be required to pay interest on money owed by it to another. See Flack v. Graham, 461 So. 2d 82 (Fla.1984), in which the court stated:

As a general rule, a government is not liable for interest in the absence of an express statutory provision or stipulation by the government that interest will be paid.

In Bank of Central Florida v. Department of Banking and Finance, 470 So. 2d 742 (Fla. 1st DCA 1985), this Court determined that in the absence of specific statutory authority, interest is awarded only in those cases where some legal wrong (such as breach of contract or conversion) has been committed.

In the instant case, HRS asserts that since no specific statutory authority exists in chapter 447, which empowers PERC to hear career service appeals, granting to PERC the authority to award interest on back pay, that relief is not available in career service appeals. However, as recognized even in the Flack opinion, when statutory authority to sue a state is given, the implied immunity of the state from payment of interest upon its obligations pertinent to such a suit may be deemed waived or the payment of such interest may be deemed impliedly authorized or assented to by the statute. Interest may be awarded on such implied statutory authority “when the nature of claims on which suits may be maintained and the object designed in permitting suits against the State or its agencies warrant it.” Flack, quoting from Treadway v. Terrell, 117 Fla. 838, 158 So. 512 (1935). Thus, when the State has waived immunity to employment contract actions, as here, it has also impliedly waived immunity in regard to interest, which is a relief flowing naturally from a finding of liability and is necessary for complete compensation in such actions. See Florida Livestock Board v. Gladden, 86 So. 2d 812 (Fla.1956) and Treadway, in which the supreme court declared that where the state can sue or be sued, the state is impliedly liable for any interest that is a legal incident to a judgment entered against it on such a claim. See also Brooks v. School Board of Brevard County, 419 So. 2d 659 (Fla. 5th DCA 1982), in which, as here, an employee was allowed a recovery of interest from the School Board in an award of back pay on an employment contract action.

Relying on Gladden and Terrell, other courts have allowed a recovery of interest against the State in other types of contract actions which have been specifically authorized by statute. See Dade County v. American Re-insurance Company, 467 So. 2d 414 (Fla. 3d DCA 1985), and Champagne-Webber, Inc. v. City of Fort Lauderdale, 519 So. 2d 696 (Fla. 4th DCA 1988). Flack is distinguishable in its determination that no interest could be recovered in that case. There, the court emphasized the fact that the State played no part in Flack’s failure to receive her pay and was not directly responsible for the wrong to Flack. Thus, unlike here, payment of interest in that case was not directly related to any claim aimed directly at action by the state.

AFFIRMED.

BOOTH and ZEHMER, JJ., concur.


Cases With Similar Vibessemantic neighbors from the corpus


Citator

Cited By (11 total)

  • State v. Fam. Bank OF Hallandale, 623 So. 2d 474 (Fla. 1993)
    …2 (1935). The state’s immunity from interest can be waived. Flack; Florida Livestock Bd. v. Gladden, 86 So. 2d 812 (Fla.1956); Treadway; Brooks v. School Bd., 419 So. 2d 659 (Fla. 5th DCA1982); Department of Health & Rehabilitative Services v. Boyd, 525 So. 2d 432 (Fla. 1st DCÁ1988). Waiver of such immunity occurs when the Legislature specifically authorizes suit against a governmental agency by statute without limitation as to interest or when the state enters into a contract fairly authorized by the powers…
  • Broward Cnty. v. Finlayson, 555 So. 2d 1211 (Fla. 1990)
    …or to the demand for overtime compensation. . Under the facts here, § 295.14, Fla.Stat., has no application. . I recognize that Brooks v. School Board, 419 So. 2d 659 (Fla. 5th DCA 1982), and Department of Health & Rehabilitative Services v. Boyd, 525 So. 2d 432 (Fla. 1st DCA 1988), authorize interest on back pay. I believe these cases were wrongly decided and would disapprove them.…
  • …PER CURIAM. AFFIRMED. State v. Family Bank of Hallandale, 623 So. 2d 474 (Fla.1993); Department of Health and Rehabilitative Services v. Boyd, 525 So. 2d 432 (Fla. 1st DCA), rev. dismissed, 525 So. 2d 877 (Fla.1988); Burnett v. Brito, 478 So. 2d 845 (Fla. 3d DCA 1985). JOANOS, WOLF and VAN NORTWICK, JJ., concur.…

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