Insurance Policy – Collective Bargaining Agreement – Vested Rights

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WI Court of Appeals – District III

Case Name: Little Chute Area School District v. Wisconsin Education Association Council, et al

Case No.: 2015AP2033

Officials: Stark, P.J., Hruz and Seidl, JJ.

Focus: Insurance Policy – Collective Bargaining Agreement – Vested Rights

The Wisconsin Education Association Council (“WEAC”) and thirty-seven retirees (collectively and with WEAC, the “Retirees”) from the Little Chute Area School District (the “District”) appeal a summary judgment in the District’s favor. In 2013, the District terminated its group longterm care (“LTC”) insurance policy for the District’s active employees and retirees. The District then filed the present declaratory judgment action, seeking a declaration that it was permitted, under the terms of the relevant collective bargaining agreements (“CBAs”), to terminate the group LTC policy. After analyzing the CBAs’ provisions, the circuit court agreed with the District and rejected the Retirees’ argument that they had a “vested right” to continuing insurance benefits under the specific group LTC policy that had been terminated. We affirm.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.