Kyoto Bus Driver Loses $84,000 Retirement Pay Over $7 Theft, Supreme Court Upholds City’s Decision

Japan’s Supreme Court has ruled in favor of the Kyoto Municipal Transportation Bureau in a high-profile case involving a former city bus driver who lost his entire retirement payout of approximately 12 million yen (about $84,000) after pocketing a 1,000-yen bill (roughly $7) from a passenger fare.

The case, which has drawn national attention for the disparity between the amount stolen and the scale of the penalty, reached a conclusion on April 17 when the Supreme Court’s First Petty Bench overturned a lower court’s ruling that had deemed the punishment too harsh. The decision means that the retirement pay will remain forfeited, finalizing the legal battle.

Background and Incident

The driver, a 58-year-old man whose name has not been disclosed, had worked for the Kyoto City Bus system since 1993. In February 2022, he was caught on dashcam footage taking a 1,000-yen bill from a passenger and failing to deposit it into the designated fare machine — a clear breach of protocol and an act that the transportation bureau later classified as theft.

The discrepancy was uncovered during a routine inspection of onboard surveillance video by the Kyoto Municipal Transportation Bureau. The following month, in March 2022, the bureau terminated the man’s employment and opted to withhold his entire retirement allowance.

Legal Proceedings

In response to the penalty, the former driver filed a lawsuit challenging the bureau’s decision, arguing that the punishment was disproportionate, especially as the money had since been repaid.

However, in July 2023, the Kyoto District Court sided with the city, stating that the act constituted “embezzlement” under Japan’s Penal Code and upheld the decision to revoke retirement benefits. The court ruled that the trust inherent in the driver’s role had been violated, thereby justifying strict disciplinary action.

The driver then appealed the ruling to the Osaka High Court, which in February 2024 found the punishment to be excessive. The high court noted the small amount involved, the fact that restitution had been made, and argued that stripping the driver of his full retirement benefit was not proportionate to the offense.

Supreme Court Final Decision

That judgment was short-lived. On April 17, the Supreme Court reversed the Osaka High Court’s decision. The First Petty Bench concluded that the disciplinary action taken by the Kyoto Municipal Transportation Bureau, including termination and loss of pension, was lawful and not unduly severe. The ruling effectively closed the case, affirming the authority of public institutions to impose strict disciplinary measures for misconduct, regardless of the monetary scale of the offense.

Broader Implications

The ruling underscores the high standards of integrity expected in Japanese public service and signals that even minor infractions can result in severe consequences when public trust is breached. Legal experts note that the case may set a precedent for how public institutions handle similar infractions in the future, particularly in positions that involve handling public funds.

While the case may seem extreme to some observers, it aligns with Japan’s broader legal and administrative norms emphasizing accountability, especially within public employment.