Kendzierski v. Macomb County.

This case was a class action brought on behalf of approximately 1600 unionized Macomb County, Michigan employee retirees who worked for defendant Macomb County under various CBAs dating back to 1989. Plaintiffs claimed that in 2009 and 2010, defendant breached these agreements by reducing and altering their healthcare benefits. Plaintiffs sought both monetary damages and injunctive relief. It was undisputed that each CBA contained an express three-year durational provision and that none of the CBAs contained a provision expressly granting a vested right to lifetime and unalterable retirement healthcare benefits. The trial court granted defendant’s motion for summary judgment, concluding that while plaintiffs were entitled to lifetime healthcare benefits under the agreements, defendant was permitted to make reasonable modifications to those benefits. The Court of Appeals affirmed in part and reversed in part, concluding that while plaintiffs were entitled to lifetime healthcare benefits, those benefits could not be modified absent plaintiffs’ consent. The Michigan Supreme Court determined after review of the CBAs at issue the agreements did not grant plaintiffs a vested right to lifetime and unalterable benefits. Therefore, the Court reversed the appellate court and remanded to the circuit court for entry of summary judgment in favor of defendant. View "Kendzierski v. Macomb County." on Justia Law