NBC 4 Columbus: OEA scheduled to settle class action lawsuit

Ohio Education Association Scheduled To Settle Class Action Lawsuit

By Tanya Hutchins
Published: April 27, 2010

http://www2.nbc4i.com/news/2010/apr/27/ohio-education-association-scheduled-settle-class--ar-61700/

COLUMBUS, Ohio -- The Ohio Education Association (OEA) is scheduled to settle a $3.75 million class action suit, pending a Settlement Approval Hearing Thursday in U.S. District Court.

Four retired staff employees from OEA say they were notified in 2004 that they would not receive health benefits after they turned 65 years old.

In 2005, they filed the class action suit, which now includes 158 people.

If approved by the court, 335 people could ultimately benefit from the settlement because it affects people who are 65 now, people who are retired but not yet 65 and people who are not retired but will be entitled to the benefits when they reach that age, according to David Cook, a lawyer representing the plaintiffs.

Cook says the case was originally dismissed, then won when it reached the U.S. Court of Appeals. He says in cases like this, union members often fare better than non-union members and anyone with a contract needs to read it carefully.

"See if it contains provisions that give you benefits after you retire and in particular, if those benefits are directly linked to you receiving a pension," Cook said.

He says OEA originally said the organization had a legal right to terminate the benefits and that the contracts did not bind them.

When contacted for this story, OEA issued the following statement: "The class action lawsuit resulted from a lack of clear contractual language that the Ohio Education Association (OEA) could reasonably rely on to justify the purchase of health care benefits for OEA retirees over the age of 65 years old. The only court decision issued through the history of the case was issued by the federal district court in favor of OEA. Based upon the Plaintiff's appeal of the district court’s decision, the Sixth Circuit Court of Appeals reversed the lower court’s decision on the basis that the factual issues could not be decided by the lower court without a trial. Immediately prior to the start of what would be a long, costly and complex trial, the parties were able to reach settlement of all issues. The OEA is pleased that the parties could achieve a settlement of the lawsuit that allows OEA to provide appropriate benefits to its retirees while also allowing OEA to meet its financial obligations to its members."

Click here to visit the settlement website: http://www.praterclassactionsettlement.com/index.php3

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