Cahoon v. Shelton

647 F.3d 18, 2011 U.S. App. LEXIS 15034, 2011 WL 2937424
CourtCourt of Appeals for the First Circuit
DecidedJuly 22, 2011
Docket10-2134
StatusPublished
Cited by44 cases

This text of 647 F.3d 18 (Cahoon v. Shelton) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cahoon v. Shelton, 647 F.3d 18, 2011 U.S. App. LEXIS 15034, 2011 WL 2937424 (1st Cir. 2011).

Opinion

SELYA, Circuit Judge.

We are entering an era in which retirement benefits paid to public employees are subject to heightened scrutiny. In this case, a municipality became convinced that former firefighters and police officers who had retired on disability pensions were collecting a particular benefit (full reimbursement of certain medical expenses) without legal warrant. The municipality acted on this conviction and stopped paying the tab. A group of affected retirees sued to enforce continued payment, alleging that the municipality’s about-face violated state statutes, constituted an ultra vires act, contradicted principles of equity, and offended the Due Process Clause of the United States Constitution.

The district court entered summary judgment against all but three of the plaintiffs. The court then held a bench trial and resolved the remaining claims. The plaintiffs appeal the summary judgment rulings. We affirm.

1. BACKGROUND

We briefly rehearse the relevant factual and procedural background, supplementing this bare-bones account in our subsequent discussion of particular issues.

The plaintiffs comprise thirty-three retired firefighters and police officers previously employed by Warwick, Rhode Island (the City). 1 At various points over the past three decades, each of them sustained a debilitating injury in the line of duty, resulting in a grant of disability leave by the City’s Board of Public Safety (the Board). When it became apparent that the plaintiffs’ injuries precluded a return to active duty, the Board exercised its discretion to place them in retirement. See Warwick, R.I., Code of Ordinances §§ 20-112(a)(l), 20-202(a)(l), 52-38(a), 52-76(a). Each plaintiff received a disability pension that included defined medical benefits.

The present dispute centers on the extent of this benefit. In the first instance, the City funds the payment of retirees’ medical expenses 2 through health insurance, which covers part, but not all, of those costs. For many years, the City also reimbursed excess medical expenses (i.e., expenses not covered by insurance). This meant that one hundred percent of each retiree’s medical expenses was reimbursed.

In 2003, the City took a fresh look at its past practice and concluded that, in accordance with a recent decision of the Rhode Island Supreme Court, it was not obliged to reimburse all of a disabled retiree’s medical expenses. Consequently, the *21 City’s personnel director, Oscar Shelton, informed the plaintiffs, by letter dated December 11, 2003, that as of January 1, 2004, the City would no longer reimburse medical expenses not covered by insurance. Because the letter directed disabled retirees instead to the health insurance provided as part of their pensions, it had the additional effect of requiring that, upon reaching the age of sixty-five, disabled retirees would have to apply for Medicare.

Dismayed by this about-face, the plaintiffs asked for a hearing before the Board. The Board responded that

[although [the] request can be placed on the agenda, the Board’s position is, pursuant to the [Rhode Island] Supreme Court decision, that any retiree who has written confirmation that the City and/or Board of Public Safety will pay 100% of [on-the-job injury] related medical bills after retirement will have those bills paid in full. Otherwise, the Board’s position is that the City’s health insurance, as part of the retirement plan, meets the City’s obligation.

After unsuccessfully presenting their claims to the City Council, see R.I. Gen. Laws § 45-15-5, the plaintiffs brought suit in state court against the Board, the City, and a myriad of municipal officials (including Shelton). Their complaint challenged termination of the practice of fully reimbursing medical expenses as violative of state statutory law, unauthorized, barred by principles of equitable estoppel, and offensive to due process. The defendants removed the action to the federal district court. See 28 U.S.C. §§ 1331,1441.

In due season, the defendants sought summary judgment. See Fed.R.Civ.P. 56. The district court initially granted the motion on all claims. Cahoon v. Shelton (Cahoon I), No. 07-008, 2008 WL 64518, at *12 (D.R.I. Jan. 4, 2008). On the plaintiffs’ motion for reconsideration, the court later vacated the judgment with respect to the equitable estoppel claims. See Cahoon v. Shelton (Cahoon II), No. 07-008, 2008 WL 6514326, at *1 (D.R.I. Mar. 10, 2008). After further discovery limited to the equitable estoppel issue, the court granted summary judgment in favor of the defendants on the estoppel claims of all but three of the plaintiffs. See Cahoon v. Shelton (Cahoon III), No. 07-008, 2009 WL 1758738, at *7 (D.R.I. June 18, 2009).

The three exempted plaintiffs (James Gordon, Michael Kraczkowski, and Thomas Thompson) tried their estoppel claims to the court, which found that the Board had explicitly promised to reimburse all of Gordon’s and Kraczkowski’s medical expenses but had made no comparable promise to Thompson. See Cahoon v. Shelton (Cahoon IV), No. 07-008, 2010 WL 3385040, at *3-4 (D.R.I. Aug. 26, 2010). The court entered judgment accordingly. Id. at *5. The plaintiffs’ timely appeal of the summary judgment rulings followed. The defendants have not appealed the judgments in favor of Gordon and Kraczkowski on the bench-tried estoppel claims. For his part, Thompson has not appealed from the adverse findings in the bench trial (although he, like the plaintiffs generally, continues to press a global claim of estoppel).

II. ANALYSIS

In this venue, the plaintiffs resurrect the same asseverational array that they presented in the court below. After delineating the legal standards that govern our inquiry, we address each of the plaintiffs’ four global asseverations. We then turn to the individualized and conceptually distinct claims mounted by Gordon and Kraczkowski. Because the latter two claims stand on a different conceptual footing, we hereafter use the term “the plaintiffs” to *22 designate all the plaintiffs other than Gordon and Kraczkowski.

A. Legal Standards.

Our review of a district court’s entry of summary judgment is de novo. Dávila v. Corporación de P.R. para la Difusión Pública, 498 F.3d 9, 12 (1st Cir.2007). We will affirm the decision only if the record reveals no genuine issue as to any material fact and discloses that the moving party is entitled to judgment as a matter of law. Vineberg v. Bissonnette, 548 F.3d 50, 55 (1st Cir.2008).

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Bluebook (online)
647 F.3d 18, 2011 U.S. App. LEXIS 15034, 2011 WL 2937424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cahoon-v-shelton-ca1-2011.