Ledain v. Town of Ontario

192 Misc. 2d 247, 746 N.Y.S.2d 760, 2002 N.Y. Misc. LEXIS 975
CourtNew York Supreme Court
DecidedJuly 15, 2002
StatusPublished
Cited by19 cases

This text of 192 Misc. 2d 247 (Ledain v. Town of Ontario) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ledain v. Town of Ontario, 192 Misc. 2d 247, 746 N.Y.S.2d 760, 2002 N.Y. Misc. LEXIS 975 (N.Y. Super. Ct. 2002).

Opinion

OPINION OF THE COURT

John B. Nesbitt, J.

Must a retiree claiming that his former municipal employer [248]*248violated his right to postemployment health insurance benefits vested under an expired collective bargaining agreement seek relief through the grievance arbitration procedure contained in that agreement? The appellate courts of this state have not spoken on this issue. Under the facts of this case, given the broad arbitration clause contained in the governing agreement, this court holds that grievance arbitration is the exclusive means of redress, and that a retiree cannot bring suit against his former employer without alleging and ultimately proving that the union contractually responsible for grievance administration breached its duty of fair representation owed to the retiree.

The facts, for purposes of this motion, are uncomplicated and undisputed. Plaintiff was hired by the defendant Town in 1962 and retired in 1991. At the time of plaintiffs retirement, the terms of his employment were governed by a collective bargaining agreement between the Town and the Civil Service Employees Association, Local 859 (Union). That agreement expressly recognized the Union’s authority as “sole and exclusive” regarding contract negotiation and grievance administration for unit employees. The agreement also provided that those employees retiring with 25 years or more of service were entitled to continued health insurance coverage under the Blue Cross/Blue Shield Blue Million Plan wholly at employer’s expense. Plaintiff retired under the terms of this agreement and continued to receive the Blue Million health insurance coverage.

On February 28, 2000, the Town Board resolved to discontinue the Blue Million Plan and substitute therefor a menu of three Blue Choice plans from which certain individuals, including the plaintiff, could select. The Town wrote to the plaintiff informing him of this change and inquired as to his choice of the new plans offered. Plaintiff elected to take one of the offered Blue Choice plans, and accordingly submitted a new group enrollment form. Approximately one year later, plaintiff wrote the Town protesting that the health plans offered imposed upon the participant certain monthly prescription plan costs ($40 to $80 in plaintiff’s case) in order to access the coverage. Plaintiff argued that this participant cost was contrary to the “no cost to the employee” language in the collective bargaining .agreement under which he retired, which referred to a $2 drug rider as the only employee cost.

Contemporaneously with plaintiffs letter of protest, counsel for the Union wrote the Town Attorney, informing her that the [249]*249Union regarded the change in plaintiffs health insurance plan from Blue Million to Blue Choice a breach of the collective bargaining agreement under which plaintiff retired. The Town Attorney responded that the Town would not provide “any additional coverage for [plaintiff].” Plaintiff instituted this action, alleging breach of contract, and requesting judgment directing the Town to restore plaintiffs Blue Million Plan, together with an award of money damages equaling the plaintiffs out-of-pocket expenses attributable to his participation in the substituted Blue Choice plan.

The defendant Town moves pursuant to CPLR 3211 for dismissal of the complaint for failure to state a cause of action, based upon the plaintiffs failure to allege a breach of the duty of fair representation by the union responsible for pursuing plaintiffs claim through the contractually established grievance procedure, as well as his failure to allege the timely presentment of a written verified claim under section 65 (3) of the Town Law. The defendant also moves for similar dispositive relief upon the ground that the claim of the plaintiff is barred by the applicable limitations period pertaining to contract claims against a town prescribed in section 65 (3) of the Town Law. Plaintiff opposes dismissal of his complaint on any of these grounds, and cross-moves for leave to file an amended complaint to assert the filing of a verified claim with the Town as well as additional grounds for the relief sought.

Defendant Town argues that special considerations recognized by the courts regarding labor contracts resulting from the collective bargaining process sanctioned under article 14 of the Civil Service Law (commonly referred to as the Taylor Law) require that this action be dismissed. These considerations manifest in rules of law channeling disputes concerning the administration of rights and obligations contained in collective bargaining agreements through contractually established grievance arbitration procedures handled by labor and management representatives. Defendant argues that these rules and the policies that underlie them apply to the facts of this case, propositions disputed by the plaintiff.

These rules exist within the larger context of contract law. As defined in Restatement (Second) of Contracts § 1, “[a] contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.” Generally, it is the province of the courts to vindicate the law by affording proper relief for failure to abide those promises the law chooses to [250]*250enforce.1 The common-law elements of a cause of action for breach of contract are (1) formation of a contract between plaintiff and defendant, (2) performance by plaintiff, (3) defendant’s failure to perform, and (4) resulting damage. (See 2 NY PJI3d 437-438 [2002], citing Furia v Furia, 116 AD2d 694.) Presumptively, therefore, if plaintiff has pleaded a cause of action for breach of contract, such is cognizable by this court.

Under the common-law elements of a cause of action for breach of contract, the complaint would appear sufficient. True, the contract sought to be enforced is not between the plaintiff and the defendant, but between the defendant and the Union of which the plaintiff was a member. However, the Union was lawfully acting in a representative capacity on behalf of the plaintiff and others, and, in any event, the plaintiff would have clear standing under common law as a third-party beneficiary to seek enforcement.2

Defendant engages this traditional contract approach by invoking a decisional rule alleged to declaim plaintiffs cause of action at the pleading stage. This rule devolves from the Taylor Law and provides that “when an employer and a union enter into a collective bargaining agreement that creates a grievance procedure, an employee subject to that agreement may not sue the employer directly for breach of contract but must proceed, through the union, in accordance with the contract.” (Matter of Board of Educ., Commack Union Free School Dist. v Ambach, 70 NY2d 501, 508, cert denied sub nom. Margolin v Board of Educ., 485 US 1034; see also Ponticello v County of Suffolk, 225 AD2d 751; Arizaga v New York City Health & Hosps. Corp., 96 AD2d 457.) The rule promotes the statutory policy of the Taylor Law entrusting to a union the sole responsibility to represent employee rights under a collective bargaining agreement, a responsibility that would be undercut by individual employee suits against the employer, disrupting both the negotiation and administration of such agreements (see Matter of Board of Educ., Commack Union Free School Dist. v Ambach, 70 NY2d at 509). It may be said that it is not unfair for [251]

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Cite This Page — Counsel Stack

Bluebook (online)
192 Misc. 2d 247, 746 N.Y.S.2d 760, 2002 N.Y. Misc. LEXIS 975, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ledain-v-town-of-ontario-nysupct-2002.