Plaintiffs are
retired employees of Macomb County who filed this class action suit, seeking an
injunction against the county prohibiting it from diminishing or otherwise
altering their right to lifetime health benefits as established in the various
collective bargaining agreements (CBAs) in effect from 2008-2010. Plaintiffs assert
a vested right to these benefits under the CBAs. The suit was filed after the county
adopted several changes to retiree health care, including increased
prescription co-pays, changes in deductibles, and reductions in plan options.
The trial court held that plaintiffs’ health care benefits were vested under
the CBAs, but that the content of those benefits was subject to reasonable
modification. Both sides appealed. The Court of Appeals held in a published opinion
that plaintiffs’ entitlement to health care benefits was vested for the
lifetime of all retirees and their spouses, and that those benefits could not
be modified without the consent of the affected retirees. In reaching this
conclusion, the Court of Appeals found that the subject CBA, which was silent
on vested health care benefits, was ambiguous, thereby allowing for the
consideration of extrinsic evidence. The Supreme Court has ordered oral
argument on the county’s application for leave to appeal.